----

----

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| Article 1 Definitions                           | 1  |
|-------------------------------------------------|----|
| Article 2 Grant of Rights                       | 11 |
| Article 3 Governance                            | 13 |
| Article 4 Joint Obligations and Diligence       | 18 |
| Article 5 Development and Regulatory Activities | 21 |
| Article 6 Manufacturing and Supply              | 25 |
| Article 7 Commercialization                     | 30 |
| Article 8 Payment                               | 33 |
| Article 9 Inventions and Patents                | 36 |
| Article 10 Representations and Warranties       | 40 |
| Article 11 Confidentiality                      | 44 |
| Article 12 Indemnification                      | 47 |
| Article 13 Term and Termination                 | 49 |
| Article 14 Dispute Resolution                   | 52 |
| Article 15 Condition to Closing: R&D Act    | 55 |
| Article 16 Miscellaneous                        | 56 |

----

| Article 1 Definitions                           | 1    |
|-------------------------------------------------|------|
|                                            | 1.1  | Definitions | 1 |
|                                            | 1.2  | Interpretation | 10 |
| Article 2 Grant of Rights                       | 11   |
|                                            | 2.1  | License Grant to UTC | 11 |
|                                            | 2.2  | Restrictions on Sublicensing | 11 |
|                                            | 2.3  | No Implied License | 12 |
|                                            | 2.4  | Non Compete | 12 |
|                                            | 2.5  | Right of First Negotiation for Tissue Engineering | 12 |
| Article 3 Governance                            | 13   |
|                                            | 3.1  | General | 13 |
|                                            | 3.2  | Joint Steering Committee | 13 |
|                                            | 3.3  | Areas Outside the JSC’s Authority | 15 |
|                                            | 3.4  | Operating Principles | 15 |
|                                            | 3.5  | Alliance Managers | 17 |
|                                            | 3.6  | Independence | 18 |
| Article 4 Joint Obligations and Diligence       | 18   |
|                                            | 4.1  | Conduct of the Parties | 18 |
|                                            | 4.2  | Commercially Reasonable Efforts to Develop | 18 |
|                                            | 4.3  | Determination of Diligence | 18 |
|                                            | 4.4  | Initial Transfer of Know-How | 19 |
|                                            | 4.5  | Sharing of Development and Commercialization Information | 20 |
|                                            | 4.6  | Duty to Confer and Consult | 20 |
|                                            | 4.7  | Quality Agreement | 20 |
|                                            | 4.8  | Product Handling | 20 |
| Article 5 Development and Regulatory Activities | 21   |
|                                            | 5.1  | Development Activities | 21 |
|                                            | 5.2  | Regulatory Matters in Pluristem’s Domain | 21 |
|                                            | 5.3  | Notice of Regulatory Filings | 21 |
|                                            | 5.4  | Regulatory Matters in the Field | 21 |
|                                            | 5.5  | Ownership of Regulatory Filings; Right of Cross-Reference | 22 |
|                                            | 5.6  | Interactions with Authorities; Regulatory Inquiries | 22 |
|                                            | 5.7  | Drug Safety | 23 |
|                                            | 5.8  | Product Withdrawals and Recalls | 24 |
|                                            | 5.9  | PLX Development Generally | 24 |
|                                            | 5.10 | PLX Development for Tissue Engineering | 25 |
| Article 6 Manufacturing and Supply              | 25   |
|                                            | 6.1  | Development Supply By Pluristem | 25 |
|                                            | 6.2  | Commercial Manufacturing and Supply Agreement | 26 |
|                                            | 6.3  | Commercial Supply Price | 27 |
|                                            | 6.4  | Supply of Product Samples | 27 |
|                                            | 6.5  | Non-Discrimination | 27 |
|                                            | 6.6  | Commercial Supply Capacity | 28 |
|                                            | 6.7  | Failure to Supply | 28 |
|                                            | 6.8  | R&D Law and the OCS | 28 |
|                                            | 6.9  | Access to Manufacturers | 29 |

----

| Article 7 Commercialization               | 30   |
|-------------------------------------------|------|
|                                      | 7.1  | Commercialization Activities | 30 |
|                                      | 7.2  | Compensation for Sales Outside the Selling Party’s Domain | 31 |
|                                      | 7.3  | Commercialization Costs | 31 |
|                                      | 7.4  | Complaints and Inquiries | 31 |
|                                      | 7.5  | Product Integrity | 31 |
| Article 8 Payment                         | 33   |
|                                      | 8.1  | Upfront Payment | 33 |
|                                      | 8.2  | Milestones | 33 |
|                                      | 8.3  | Royalty Payments | 34 |
|                                      | 8.4  | Payments and Reports | 35 |
|                                      | 8.5  | Taxes | 35 |
|                                      | 8.6  | Wire Transfers | 35 |
|                                      | 8.7  | Audit Rights | 35 |
|                                      | 8.8  | Exchange Rate | 36 |
|                                      | 8.9  | Blocked Currency | 36 |
|                                      | 8.10 | Late Payments | 36 |
| Article 9 Inventions and Patents          | 36   |
|                                      | 9.1  | Inventions Respecting Development | 36 |
|                                      | 9.2  | Inventions Respecting PLX Development | 37 |
|                                      | 9.3  | Other Inventions | 37 |
|                                      | 9.4  | Patent Prosecution | 37 |
|                                      | 9.5  | Enforcement of Patent Rights | 38 |
|                                      | 9.6  | Further Assurances | 39 |
|                                      | 9.7  | Enforcement of Other Government-Conferred Rights | 39 |
|                                      | 9.8  | Infringement Defense | 39 |
|                                      | 9.9  | Information and Updates | 40 |
|                                      | 9.10 | Patent Challenges | 40 |
|                                      | 9.11 | Invention Assignment | 40 |
| Article 10 Representations and Warranties | 40   |
|                                      | 10.1 | Representations, Warranties and Covenants | 40 |
|                                      | 10.2 | Representations and Warranties of Pluristem | 41 |
|                                      | 10.3 | Disclaimer | 44 |
| Article 11 Confidentiality                | 44   |
|                                      | 11.1 | Treatment of Confidential Information | 44 |
|                                      | 11.2 | Exceptions | 44 |
|                                      | 11.3 | Authorized Disclosures | 45 |
|                                      | 11.4 | Securities Filings | 45 |
|                                      | 11.5 | Publicity | 46 |
|                                      | 11.6 | Publication | 46 |
|                                      | 11.7 | Patient Information | 46 |
|                                      | 11.8 | Confidentiality Agreement | 47 |
| Article 12 Indemnification                | 47   |
|                                      | 12.1 | Indemnification by UTC | 47 |
|                                      | 12.2 | Indemnification by Pluristem | 47 |
|                                      | 12.3 | Allocation of Responsibility | 48 |
|                                      | 12.4 | Procedure | 48 |
|                                      | 12.5 | Insurance | 49 |
|                                      | 12.6 | No Consequential or Punitive Damages | 49 |

----

| Article 13 Term and Termination              | 49    |
|----------------------------------------------|-------|
|                                         | 13.1  | Term | 49 |
|                                         | 13.2  | Unilateral Termination by UTC | 49 |
|                                         | 13.3  | Material Breach | 50 |
|                                         | 13.4  | Consequences of Expiration or Termination | 50 |
|                                         | 13.5  | Survival | 52 |
|                                         | 13.6  | No Waiver of Remedies | 52 |
| Article 14 Dispute Resolution                | 52    |
|                                         | 14.1  | Disputes | 52 |
|                                         | 14.2  | Governing Law; Dispute Resolution | 53 |
| Article 15 Condition to Closing: R&D Act | 55    |
|                                         | 15.1  | Consent of OCS | 55 |
|                                         | 15.2  | Satisfaction of Conditions; Effective Date | 55 |
|                                         | 15.3  | Portions of Agreement Effective as of Execution Date | 55 |
|                                         | 15.4  | Conduct of Pluristem’s Business | 55 |
|                                         | 15.5  | Non-Performance of Condition | 55 |
|                                         | 15.6  | Nature of Conditions | 56 |
| Article 16 Miscellaneous                     | 56    |
|                                         | 16.1  | Entire Agreement | 56 |
|                                         | 16.2  | Assignment; Change of Control | 56 |
|                                         | 16.3  | Amendments | 57 |
|                                         | 16.4  | Bankruptcy | 57 |
|                                         | 16.5  | Non-Waiver | 57 |
|                                         | 16.6  | Severability | 57 |
|                                         | 16.7  | Notice | 57 |
|                                         | 16.8  | Further Assurances | 58 |
|                                         | 16.9  | Force Majeure | 59 |
|                                         | 16.10 | Independent Contractors | 59 |
|                                         | 16.11 | Performance by Affiliates | 59 |
|                                         | 16.12 | Guarantee of Certain Obligations | 59 |
|                                         | 16.13 | No Third Party Beneficiaries | 60 |
|                                         | 16.14 | Counterparts | 60 |

----

----

  

| 1.1 | Definitions |
|-----|-------------|

|   | (a) | “AAA” shall have the meaning set out in Section ‎14.2(f). |
|--------|-----|-----------------------------------------------------------------------------|

|   | (b) | “Adverse Event” shall mean any undesirable medical occurrence in a patient or clinical investigation subject administered a pharmaceutical product and which does not necessarily have to have a causal relationship with the treatment, including any variant of an “adverse drug experience” as those terms are defined at either 21 C.F.R. Section 312.32 or 21 C.F.R. Section 314.80 and the relevant non-FDA equivalents, whether arising in or outside of a clinical study. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | “Affiliate” shall mean (a) an entity that owns directly or indirectly a controlling interest in a Party, by stock ownership or otherwise, (b) any entity in which a Party owns a controlling interest, by stock ownership or otherwise, or (c) any entity under common control with a Party, directly or indirectly. Solely for purposes of the foregoing sentence, “controlling interest” and “control” shall mean the power, whether or not exercised, to direct the management and affairs of a Party, directly or indirectly, whether through the ownership of voting securities, by contract, or otherwise. The direct or indirect ownership of fifty percent (50%) or more of a Party’s outstanding voting securities shallin any case be deemed to confer “control.” |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | “Alliance Manager” shall have the meaning set out in Section ‎3.5(a). |
|--------|-----|-----------------------------------------------------------------------------------------|

|   | (e) | “Applicable Law” shall mean all laws, statutes, ordinances, codes, rules, and regulations that have been enacted by a Regulatory Authority in any jurisdiction in the Territory and which are in force as of the Effective Date or come into force during the Term, in each case to the extent that the same are applicable to the performance by the Parties of their respective obligations under this Agreement, including, with respect to the United States, the Prescription Drug Marketing Act, the Federal Food, Drug and Cosmetics Act of 1938, as amended, the Health Insurance Portability and Accountability Act, the Federal Anti-Kickback Statute, and any applicable regulations relating to sampling practices. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | “Arbitration Request” shall have the meaning set out in Section ‎14.2(d). |
|--------|-----|---------------------------------------------------------------------------------------------|

|   | (g) | “Business Day” shall mean any day that is not a Saturday or a Sunday in the United States or a day on which the New York Stock Exchange is closed. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | “Calendar Quarter” shall mean each of the three (3) month periods ending on March 31, June 30, September 30, and December 31. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | “Calendar Year” shall mean each twelve (12) month period beginning on January 1 and ending on December 31. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (j) | “Change of Control” shall mean (a) the acquisition of control of Pluristem Ltd. or Pluristem Therapeutics Inc. by a Third Party or (b) the sale or other disposition of all or substantially all of the assets of Pluristem Ltd. or Pluristem Therapeutics Inc. to a Third Party. The direct or indirect ownership of fifty percent (50%) or more of Pluristem’s outstanding voting securities shall in any case be deemed to confer “control.” |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | “Claims” shall have the meaning set out in Section ‎12.1. |
|--------|-----|-----------------------------------------------------------------------------|

|   | (l) | “CMC”shall mean chemistry, manufacturing and controls. |
|--------|-----|--------------------------------------------------------------------|

|   | (m) | “Commercialize” (and, with correlative meanings, the terms “Commercializing” and “Commercialization”) shall mean any and all activities relating to the commercialization of the Product, including the Promotion, Detailing, distribution, sale, offer for sale, and importation of the Product after Regulatory Approval of the Product, excluding any and all Manufacturing of the Product. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | “Commercially Reasonable Efforts” shall mean with respect to each Party, commercially reasonable efforts in accordance with the business, legal, medical and scientific judgment of a similarly situated company, and in accordance with the efforts and resources a similarly situated company would use for a product owned by it or to which it has rights, which is of similar market potential, at a similar stage in its product life, taking into account the competitiveness of the marketplace, the proprietary position of the product, the regulatory structure involved, the profitability of the product and other relevant factors. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (o) | “Competing Product” shall mean any product, other than the Product, comprising of PLX and/or any mesenchymal or mesenchymal-like cells. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (p) | “Confidential Information” of a Party shall mean all Information disclosed by such Party to the other Party during and/or prior to the Term, including any and all Information exchanged between the Parties under the Manufacturing and Supply Agreement or the Confidentiality Agreement. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (q) | “Confidentiality Agreement” shall mean the Confidentiality Agreement between the Parties effective April 8, 2011. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------|

|   | (r) | “Control” shall mean, with respect to any information or intellectual property right, possession by a Party of the ability (whether by ownership, license, or otherwise) to grant access, a license, or a sublicense to such information or intellectual property right without violating the terms of any agreement or other arrangement with any Third Party as of the time such Party would first be required hereunder to grant the other Party such access, license or sublicense. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (s) | “Corporate Marks” shall mean, with respect to each of the Parties, the corporate name of such Party or those of Affiliates of such Party, and its and their trade names, trademarks, service marks, domain names, and associated logos and designs. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (t) | “Cost of Goods Sold” shall mean, unless otherwise agreed between the Parties: |
|--------|-----|-------------------------------------------------------------------------------------------|

|   | (i) | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (u) | “Cover” shall mean, in respect of any Product, that a Valid Claim encompasses a particular process, machine, article of manufacture or composition of matter respecting the Product such that any making, using, offering to sell, selling, supplying, importing or exporting of the Product would constitute an infringement of the patent claim. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | “Detail” or “Detailing” shall mean, with respect to Promotion of the Product in the Field, the activity undertaken by a UTC Sales Representative with respect to a target physician or other individuals or entities with prescribing authority involved or potentially involved in prescribing the Product in the Field, to provide information about the benefits and features of the Product in the Field in an effort to increase the number of physicians or other individuals or entities with prescribing authority prescribing the Product in the Field, and/or the number of prescriptions for the Product in the Field. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (w) | “Development” (and, with correlative meanings, the terms “Develop” and “Developing”) shall mean the non-clinical development, clinical development, and regulatory activities with respect to seeking Regulatory Approval of the Product for any indication, and post-approval studies, including label extensions in support of the Product in the Field and any studies required by a Regulatory Authority, and excluding any and all Manufacturing of the Product. For the avoidance of doubt, Development shall not include PLX Development. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (x) | “Disclosing Party” shall have the meaning set out in Section ‎11.1. |
|--------|-----|---------------------------------------------------------------------------------------|

|   | (y) | “Dollar” or “$” shall mean the legal tender of the United States of America. |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (z) | “Domain” shall mean, with respect to UTC, Products for any indication or use in the Field and, with respect to Pluristem, Products for any indication or use outside the Field. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (aa) | “Effective Date” shall have the meaning set out in Section ‎15.2. |
|--------|------|-------------------------------------------------------------------------------------|

|   | (bb) | “Failure to Supply” shall mean the occurrence of one of the following events and the giving of notice by UTC to Pluristem of the occurrence thereof: |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Pluristem has elected by a written notice to discontinue supplying Product to UTC without the prior written approval of UTC; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | with respect to Development activities, the failure by or on behalf of Pluristem to supply on a timely basis of at least **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** of the quantity of Product ordered by or on behalf of UTC or its Representatives (acting reasonably or in accordance with the Manufacturing and Supply Agreement, if such agreement is in effect) in accordance with Section ‎6.1 provided that such failure was not remedied within **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** days of the dateon which such supply was due thereunder and provided further that such failure occurred more than **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** during the Term; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | with respect to Commercialization activities, the failure by or on behalf of Pluristem to supply on a timely basis of at least **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** of the quantity of Product ordered by or on behalf of UTC or its Representatives in accordance with the Manufacturing and Supply Agreement, provided that such failure was not remedied within **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** days of the date on which such supply was due thereunder (without such period being extended by any cure period in the Manufacturing and Supply Agreement) and provided further that suchfailure occurred more than **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** during the Term; |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iv) | Pluristem has terminated the Manufacturing and Supply Agreement other than as a result of a breach by UTC of the Manufacturing and Supply Agreement or the insolvency of UTC; or |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | termination of the Manufacturing and Supply Agreement by UTC due to material breach by Pluristem that is jeopardizing the supply of Product or insolvency of Pluristem; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (cc) | “FDA” shall mean the United States Food and Drug Administration, or any successor organization. |
|--------|------|-------------------------------------------------------------------------------------------------------------|

|   | (dd) | “Field” shall mean the treatment, amelioration, and prevention of any kind or nature and by any route of administration of pulmonary hypertension including all WHO classifications of pulmonary hypertension in the Venice 2003 Revised Classification system. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ee) | “GAAP” shall mean generally accepted accounting principles in the United States, consistently applied. |
|--------|------|--------------------------------------------------------------------------------------------------------------------|

|   | (ff) | “GMP” shall mean the current Good Manufacturing Practices of the FDA and other Regulatory Authorities, as applicable, as then in effect. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (gg) | “Gross Profits” shall mean the amount billed for sales of the Product by UTC, its Affiliates and any sublicensees to Third Parties (excluding such sublicensees), less: |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iv) | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | taxes or other governmental charges levied on or measured by the billing amount whether absorbed by the billing or billed party. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------|

|   | (hh) | “Gross Profits Report” shall have the meaning set out in Section ‎8.4(a). |
|--------|------|---------------------------------------------------------------------------------------------|

|   | (ii) | “Indemnitee” shall mean, with respect to a Party, such Party and its Affiliates, and their respective directors, officers, employees, agents, contractors, licensees and sublicensees. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (jj) | “Indemnified Party” shall have the meaning set out in Section ‎12.4(a). |
|--------|------|-------------------------------------------------------------------------------------------|

|   | (kk) | “Indemnifying Party” shall have the meaning set out in Section ‎12.4(a). |
|--------|------|--------------------------------------------------------------------------------------------|

|   | (ll) | “Information” shall mean (a) technical or economic information, techniques and data relating to the Product, including inventions, practices, methods, knowledge, know-how, skills, SOPs, methods, experience, test data, including pharmacological, toxicological, safety, non-clinical and clinical test data, results, protocols, data, formulations, specifications, analytical and quality control data, regulatory strategies, regulatory submissions, correspondence and communications, marketing, pricing, distribution, cost, sales, patent and legal data or descriptions, and strategies relating to the Product and (b) compositions of matter, devices, assays and biological, chemical or physical materials relating to the Product. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (mm) | “Invention” shall mean any invention or discovery, whether or not patentable, made or acquired or Controlled: |
|--------|------|---------------------------------------------------------------------------------------------------------------------------|

|   | (i) | by UTC pursuant to its activities under to this Agreement performed on or after the Effective Date; |
|--------|-----|-----------------------------------------------------------------------------------------------------|

|   | (ii) | by Pluristem on or after the Effective Date; |
|--------|------|----------------------------------------------|

|   | (nn) | “Joint Inventions” shall have the meaning set out in Section ‎9.1(e). |
|--------|------|-----------------------------------------------------------------------------------------|

|   | (oo) | “Joint Patents” shall have the meaning set out in Section ‎9.1(e). |
|--------|------|--------------------------------------------------------------------------------------|

----

|   | (pp) | “JSC” or “Joint Steering Committee” shall have the meaning set forth in Section ‎3.1. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------|

|   | (qq) | “Losses” shall have the meaning set out in Section ‎12.1. |
|--------|------|-----------------------------------------------------------------------------|

|   | (rr) | “Manufacture” shall mean the storage, handling, assembly, fill, production, processing, Labeling, testing, disposition, packaging and quality control of raw materials and components and the Product, and supply of the resulting Product. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ss) | “Manufacturing and Supply Agreement” shall mean that certain Manufacturing and Supply Agreement entered into by Pluristem and UTC, pursuant to which Pluristem shall supply to UTC, and UTC shall purchase from Pluristem, all of UTC’s requirements for the commercial supply of Product, subject to, and in accordance with, the terms and conditions set forth in this Agreement and such Manufacturing and Supply Agreement. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (tt) | “Negotiation Period” shall have the meaning set out in Section ‎7.5(h) and Section ‎6.2(c). |
|--------|------|---------------------------------------------------------------------------------------------------------------------|

|   | (uu) | “Non-Publishing Party” shall have the meaning set out in Section ‎11.6(a). |
|--------|------|----------------------------------------------------------------------------------------------|

|   | (vv) | “Notification Period” shall have the meaning set out in Section ‎2.5(c). |
|--------|------|--------------------------------------------------------------------------------------------|

|   | (ww) | “OCS” shall mean the Office of the Chief Scientist of the Ministry of Industry and Trade, or any replacement therefore. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (xx) | “OCS Consent” shall have the meaning set out in Section ‎6.8(a)(i). |
|--------|------|---------------------------------------------------------------------------------------|

|   | (yy) | “Offered Indication” has the meaning set out in Section ‎2.5(a). |
|--------|------|------------------------------------------------------------------------------------|

|   | (zz) | “Patents” shall mean (a) unexpired letters patent (including inventor’s certificates) in the Territory that have not been held invalid or unenforceable by a court of competent jurisdiction from which no appeal can be taken or has been taken within the required time period, including any substitution, extension, term restoration, registration, confirmation, reissue, re-examination, renewal or any like filing thereof and (b) pending applications for letters patent in the Territory, including any continuation, division or continuation-in-part thereof and any provisional applications. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (aaa) | “Phase II” trial means a clinical trial on sufficient numbers of patients that is designed to establish the safety and biological activity of the Product for its intended use before the FDA or a Regulatory Authority in a jurisdiction for which the EMA is responsible, which does not include a trial powered to support (without additional trials) an application for Regulatory Approval for the Commercialization of the Product in the United States or in a jurisdiction for which the EMA is responsible, respectively. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (bbb) | “Pluristem Commercialization Activities” shall have the meaning set forth in Section ‎7.1(b). |
|--------|-------|----------------------------------------------------------------------------------------------------------------------|

|   | (ccc) | “Pluristem Development Activities” shall have the meaning set out in Section ‎5.1(b). |
|--------|-------|---------------------------------------------------------------------------------------------------------|

|   | (ddd) | “Pluristem Know-How” shall mean all Information that (a) is Controlled by Pluristem at any time during the Term and (b) is Useful in the Development, use or Commercialization of the Product in the Field, all as modified pursuant to ‎Article 9. In the event of a Failure to Supply, “Pluristem Know-How” shall include all of the foregoing that is Useful in the Manufacture of the Product for use in the Field. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (eee) | “Pluristem Patents” shall mean all Patents that claim the Development, use or Commercialization of the Product that are Controlled by Pluristem at any time during the Term, including any Patents claiming Inventions Controlled by Pluristem in accordance with ‎Article 9, including composition and method of use of the PLX, all as modified pursuant to ‎Article 9. In the event of a Failure to Supply, “Pluristem Patents” shall include all Patents that claim the Manufacture of the Product for use in the Field that are Controlled by Pluristem atany time during the Term. As of the Effective Date, the Pluristem Patents (including those claiming the Manufacture of the Product for use in the Field) are as set forth on Exhibit ‎1.1(eee). |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (fff) | “Pluristem Product Marks” shall mean the certain, separate Pluristem brand name to be used in connection with marketing and sale of the Product in Pluristem’s Domain, distinct from the UTC Product Marks, and all other trademarks used or intended for use by Pluristem during the Term in connection with the marketing or sale of the Product in Pluristem’s Domain. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ggg) | “Pluristem Technology” shall mean the Pluristem Patents and Pluristem Know-How. |
|--------|-------|---------------------------------------------------------------------------------------------|

|   | (hhh) | “PLX” or “PLacental eXpanded cells” shall mean mesenchymal-like adherent stromal cells (ASCs) **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | "PLX Development" shall mean **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (jjj) | “PLX Development IP” shall have the meaning set out in Section ‎9.2(b). |
|--------|-------|-------------------------------------------------------------------------------------------|

|   | (kkk) | “Product” shall mean that pharmaceutical product of which the active ingredient of which includes PLX, in any finished form and formulation. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (lll) | “Promotion” or “Promote” shall mean the marketing and advertising of the Product in the Field, including medical education, information and communication, market development and medical liaison activities. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (mmm) | “Publishing Party” shall have the meaning set out in Section ‎11.6(a). |
|--------|-------|------------------------------------------------------------------------------------------|

|   | (nnn) | “Quality Agreement” has the meaning set forth in Section ‎4.7. |
|--------|-------|----------------------------------------------------------------------------------|

|   | (ooo) | “R&D Law” means the Law for the Encouragement of Industrial Research and Development, 5744-1984 (as amended). |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------|

|   | (ppp) | “Reasonable Cost” shall mean, with respect to a Party, the reasonable costs and expenses (including full time equivalent costs and Third Party costs) as then calculated, from time to time, by such Party for its internal accounting purposes in accordance with GAAP, such calculation performed consistently with the practice across such Party’s organization. In any circumstance where Reasonable Costs are expected to exceed **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**, the Parties will develop a budget for such circumstance and agree upon a full time equivalent rate that is appropriate for such circumstance. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (qqq) | “Receiving Party” shall have the meaning set out in Section ‎11.1. |
|--------|-------|--------------------------------------------------------------------------------------|

|   | (rrr) | “Regulatory Approval” shall mean any approvals, licenses, registrations or authorizations of any Regulatory Authority, whether or not conditional, that are necessary for the Development, Manufacture, use or Commercialization of the Product any regulatory jurisdiction in the Territory in accordance with Applicable Law and obtained as a result of activities under this Agreement, including receipt of pricing and reimbursement approvals, where applicable. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (sss) | “Regulatory Authority” shall mean any and all supranational, national, or regional, state, provincial or other local government, court, governmental agency, authority, board, bureau, instrumentality, regulatory agency, department, bureau, commission, council or other government entity, whose approval or authorization is necessary for, or to whom notice must be given prior to, the Development, Manufacture, use or Commercialization of the Product in the Territory or the designation of the Product as an orphan drug (or equivalent designation) in the Territory, including, with respect to the United States, the FDA. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ttt) | “Regulatory Exclusivity Rights” shall have the meaning set out in Section ‎9.7. |
|--------|-------|---------------------------------------------------------------------------------------------------|

|   | (uuu) | “Regulatory Filings” shall mean all applications, filings, dossiers and the like (excluding routine Adverse Event expedited or periodic reporting), submitted to a Regulatory Authority in the Territory for the purpose of obtaining Regulatory Approval from that Regulatory Authority in the Territory with respect to the Product, but do not include submission of promotional materials to Division of Drug Marketing, Advertising, and Communications of the FDA (DDMAC) and international equivalents. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vvv) | “Representatives” shall mean, with respect to a Party, its Affiliates, contractors, licensees and sublicensees. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------|

|   | (www) | “Safety Agreement” shall have the meaning set forth in Section ‎5.7(a). An example of the table of contents of a Safety Agreement is attached hereto as Exhibit ‎1.1(www). |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xxx) | “Specifications” shall have the meaning set out in Section ‎6.1(a). |
|--------|-------|---------------------------------------------------------------------------------------|

|   | (yyy) | “Supply Terms Schedule” shall have the meaning set out in Section ‎6.2. |
|--------|-------|-------------------------------------------------------------------------------------------|

|   | (zzz) | “Term” shall have the meaning set forth in Section ‎13.1. |
|--------|-------|----------------------------------------------------------------------------------|

|   | (aaaa) | “Territory” shall mean the entire universe. |
|--------|--------|---------------------------------------------------------|

|   | (bbbb) | “Third Party” shall mean any entity other than a Party or its Affiliates. |
|--------|--------|---------------------------------------------------------------------------------------|

----

|   | (cccc) | "Tissue Engineering" shall mean the ex-vivo regeneration or replacement of portions or functions of the lung or the whole lung. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   | (dddd) | “Useful” shall mean, with respect to UTC, necessary or useful in the Development or Commercialization of the Product in the Field, and, with respect to Pluristem, necessary or useful in the Manufacture, Development or Commercialization of Products in Pluristem’s Domain. In the event that UTC exercises its rights under Section ‎2.1(b), in respect of UTC, “Useful” shall include necessary or useful in the Manufacture of the Product for use in the Field. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (eeee) | “UTC Commercialization Activities” shall have the meaning set forth in Section ‎7.1(a). |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | (ffff) | “UTC Development Activities” shall have the meaning set out in Section ‎5.1(a). |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | (gggg) | “UTC Know-How” shall mean all Information that (a) is Controlled by UTC at any time during the Term and (b) arises from the Development, Manufacturing or Commercialization of Product at any time during the Term and (C) is Useful in the Development, Manufacture, use, or Commercialization of the Product in the Field, all as modified pursuant to ‎Article 9. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (hhhh) | “UTC Patents” shall mean all Patents that claim the Development, Manufacture, use or Commercialization of the Product in the Field that are Controlled by UTC at any time during the Term, and arise from the Development, Manufacturing or Commercialization of Product at any time during the Term, including any Patents claiming Inventions Controlled by UTC in accordance with ‎Article 9, including composition and method of use Patents, all as modified pursuant to‎Article 9. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iiii) | “UTC Product Marks” shall mean the certain, separate UTC brand name to be used in connection with marketing and sale of the Product in the Field, distinct from the Pluristem Product Marks, and all other trademarks used or intended for use by UTC during the Term in connection with the marketing or sale of the Product inside the Field. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (jjjj) | “UTC Sales Representative” shall mean an employee of UTC or its permitted contractors and a member of UTC’s sales force engaged in the conduct of Details of the Product and trained as provided under this Agreement. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (kkkk) | “Valid Claim” shall mean a claim within an issued Pluristem Patent that has not expired, lapsed, or been cancelled or abandoned, and that has not been dedicated to the public, disclaimed, or held unenforceable, invalid, or been cancelled by a court or administrative agency of competent jurisdiction in an order or decision from which no appeal has been or can be taken, including through opposition, re-examination, reissue, or disclaimer. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2 | Interpretation |
|-----|----------------|

|   | (a) | Captions & Headings. The captions and headings of clauses contained in this Agreement preceding the text of the articles, sections, subsections and paragraphs hereof are inserted solely for convenience and ease of reference only and shall not constitute any part of this Agreement, or have any effect on its interpretation or construction. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | Singular & Plural. All references in this Agreement to the singular shall include the plural where applicable, and all references to gender shall include both genders and the neuter. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Articles, Sections & Subsections. Unless otherwise specified, references in this Agreement to any article shall include all sections, subsections, and paragraphs in such article; references in this Agreement to any section shall include all subsections and paragraphs in such sections; and references in this Agreement to any subsection shall include all paragraphs in such subsection. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Days. All references to days in this Agreement shall mean calendar days, unless otherwise specified. |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (e) | Clarification. The word “including” shall be deemed to mean “including without limitation” and “including, but not limited to”. A consent that is identified in this Agreement as not “to be unreasonably withheld” shall not be unreasonably withheld, delayed or conditioned. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Ambiguities. Ambiguities and uncertainties in this Agreement, if any, shall not be interpreted against either Party, irrespective of which Party may be deemed to have caused the ambiguity or uncertainty to exist. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Priority. In the event of any inconsistency between the provisions of this Agreement and the Manufacturing and Supply Agreement, the provisions of this Agreement shall control. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

  

| 2.1 | License Grant to UTC |
|-----|----------------------|

|   | (a) | Develop, use and Commercialize the Product in the Field; and |
|--------|-----|--------------------------------------------------------------|

|   | (b) | in the event of the occurrence of a Failure to Supply, Manufacture and have Manufactured the Product solely for Development, use and Commercialization in the Field. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | Restrictions on Sublicensing |
|-----|------------------------------|

----

| 2.3 | No Implied License |
|-----|--------------------|

| 2.4 | Non Compete |
|-----|-------------|

|   | (a) | during the Term, neither UTC nor any of its Affiliates shall, directly or indirectly, alone or in collaboration, partnership or any other form of engagement with any Third Party (including joint ownership or otherwise), Develop or Commercialize in any country in the Territory any Competing Product in the Field. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | During the Term, neither Pluristem nor any of its Affiliates shall, directly or indirectly, alone or in collaboration, partnership or any other form of engagement with any Third Party (including joint ownership or otherwise), Develop or Commercialize in any country in the Territory any product in the Field, unless such Development or Commercialization is the result of a Change of Control of Pluristem where Pluristem’s aquiror was, at the time of such Change of Control or at any time thereafter, directly or indirectly, alone or in collaboration, partnership or any other form of engagement with any Third Party (including joint ownership or otherwise), Developing or Commercializing in any country in the Territory any product in the Field. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.5 | Right of First Negotiation for Tissue Engineering |
|-----|---------------------------------------------------|

|   | (a) | During the Term, if Pluristem is approached by a Third Party regarding, or enters into bona fide discussions with a Third Party for, the opportunity to collaborate on, or decides to exploit itself, the Development or Commercialization of products Covered by the PLX Development solely for Tissue Engineering (the “Offered Indication”), Pluristem will provide written notice of same to UTC. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Such notice will include: |
|--------|-----|---------------------------|

|   | (i) | information possessed by Pluristem that supports the Development or Commercialization of Product for the Offered Indication and is reasonably necessary for UTC to assess the commercial potential of same; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ii) | if Pluristem was approached by a Third Party or entered into bona fide discussions with a Third Party, the same information presented by Pluristem to the Third Party, subject to any bona fide obligations of confidentiality and limited use owed to such Third Party; and |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | a proposal respecting same that Pluristem would be prepared to accept. |
|--------|-------|------------------------------------------------------------------------|

|   | (c) | Within 30 days of receipt of such notice (the “Notification Period”), UTC will provide written notice to Pluristem indicating whether it is interested in negotiating with Pluristem to obtain the rights in question from Pluristem. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | If UTC fails to respond to Pluristem’s notification within the Notification Period or indicates that it is not interested in the Offered Indication, Pluristem will thereafter be free to enter into discussions and a binding transaction with one or more Third Parties regarding the rights offered to UTC in the Offered Indication. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | If UTC indicates its interest in obtaining such rights to the Offered Indication on or before the expiry of the Notification Period, the Parties will negotiate in good faith the terms of a separate development and commercialization agreement, which terms will be commercially reasonable, including without limitation license fees, milestone payments, and royalties, during the period up to ninety (90) days following receipt of UTC’s notice (the “Negotiation Period”). If the Parties are unable to execute such an agreement within such time period, despite good faith negotiations by each Party, Pluristem will thereafter be free to enter into a definitive agreement to develop and commercialize such rights in the Offered Indication with one or more Third Parties in the two (2) yearsfollowing the expiry of the Negotiation Period, provided that the terms agreed to with such Third Party include financial terms are no more favorable to such Third Party than the last terms offered by Pluristem to UTC. In the event that Pluristem and a Third Party are unable to execute such a definitive agreement within such time period, the Offered Indication shall again be subject to the terms of this Section ‎2.5. If such a definitive agreement for the Offered Indication terminates for any reason, such Offered Indication shall again be subject to the terms of this Section ‎2.5. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Pluristem will not exploit Product for Tissue Engineering unless it has first offered the opportunity to UTC in accordance with this Section ‎2.5. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

  

| 3.1 | General |
|-----|---------|

| 3.2 | Joint Steering Committee |
|-----|--------------------------|

|   | (a) | Formation and Purpose. Within forty-five (45) days after the Effective Date, each Party shall appoint up to three (3) members of its management to be its JSC representatives. Each Party may replace its JSC representatives by written notice to the other Party. The purpose of the JSC shall be to provide a forum for joint discussion between the Parties in order to (i) coordinate the Manufacture of the Product for the Development, use or Commercialization of the Product in the Field, (ii) keep each Party generally advised of the other Party’s activities that would be Useful to the other Party, and (iii) identify activities that would be of mutual benefit with respect to the Product that would be Useful to the other Party. The JSC shallhave the membership and shall operate by the procedures set forth in Section ‎3.4. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | Specific Responsibilities of the JSC. In addition to its overall responsibility for coordinating the Parties’ activities under this Agreement, the JSC shall, in particular and in a timely manner: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | monitor progress of the Development of the Product in the Field as same may be made in accordance with this Agreement; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | review and comment upon plans for and results of any and all clinical trials conducted by UTC with respect to the Field and conducted in Pluristem’s Domain to the extent such information is Useful to UTC, including clinical trial protocols, monitoring plans, and data disclosure plans included with each such protocol, and updates or amendments thereto; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | facilitate the flow of information with respect to the Commercialization of the Product in the Field by UTC; |
|--------|-------|--------------------------------------------------------------------------------------------------------------|

|   | (iv) | facilitate mechanisms for discussion between the Parties with respect to Development of the Product in the Field and in Pluristem’s Domain, including the contents and submission of Regulatory Filings, to the extent such Development and such Regulatory Filings are Useful to the other Party; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | facilitate communication between the Parties with respect to all serious adverse events or significant safety issues for Products in all fields throughout the world to the extent such information is Useful to UTC or to Pluristem, consistent with the terms of the Safety Agreement and coordinate efforts of the Parties to ensure proper reporting of all Adverse Events for the Product in the Field in accordance with Applicable Law and consistent with the terms of the Safety Agreement; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | subject to any obligations of confidence owed to a Third Party, facilitate the flow of information with respect to any material new studies of which either Party becomes aware which relate to the Product to the extent such information is Useful to the other Party; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | implement policies and procedures for providing each Party with copies of all correspondence and communications with Regulatory Authorities relating to Products, to the extent such correspondence and communications are Useful to the other Party; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | coordinate the availability, timing, and amount of Product and placebo to be supplied by Pluristem to UTC for the sale of the Product in the Field, and procedures for forecasting and ordering such placebo and Product pursuant to the Manufacturing and Supply Agreement; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ix) | monitor Pluristem’s Manufacturing capacity for the Product including the requirement for safety stock as and to the extent agreed by the Parties from time to time; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (x) | consultation between the Parties regarding the Detailing of the Product in UTC’s Domain and the detailing of Pluristem’s Product(s) in Pluristem’s Domain to the extent Useful in respect of the Domain of either Party; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xi) | perform such other functions as the Parties may agree in writing. |
|--------|------|-------------------------------------------------------------------|

| 3.3 | Areas Outside the JSC’s Authority |
|-----|-----------------------------------------|

| 3.4 | Operating Principles |
|-----|----------------------|

|   | (a) | Chairpersons. The JSC shall have co-chairpersons. Each of UTC and Pluristem shall select from their representatives a co-chairperson for the JSC. The co-chairpersons of the JSC shall be responsible for calling meetings, preparing and circulating an agenda in advance of each meeting of the JSC, and preparing and issuing minutes of each meeting within thirty (30) days thereafter. The JSC co-chairperson of a Party shall call a meeting of the JSC promptly upon the written request of the other co-chairperson to convene such a meeting. Such minutes will not be finalized until both chairpersons review and confirm the accuracy of such minutes in writing. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Meetings. The JSC shall hold meetings at such times as it elects to do so, but in no event shall such meetings be held less frequently than once every Calendar Quarter during the first 12 months following the date hereof and thereafter at least twice per Calendar Year unless otherwise agreed by the JSC. The JSC shall meet alternately at Pluristem’s facilities in Haifa, Israel, and UTC’s facilities in the United States, or at such locations as the Parties may otherwise mutually agree. Other employees of each Party (including the Alliance Managers, as defined in Section ‎3.5(a)) involved in the Development, Manufacture, or Commercializationof the Product in the Field may attend meetings of the JSC as nonvoting participants, and, with the consent of each Party, consultants, representatives, or advisors involved in the Development, Manufacture, or Commercialization of the Product may attend meetings of the JSC as nonvoting observers; provided that such Third Party representatives are under obligations of confidentiality and non-use applicable to the Confidential Information of each Party and that are at least as stringent as those set forth in ‎Article 11; and provided that the term of such obligations may be reduced by mutual agreement of the Parties so as to be commercially reasonable based on the circumstances. Each Party shall be responsible for all of its own expenses associated with participating in the JSC. Meetings of the JSCmay be held by audio or video teleconference with the mutual consent of the Parties; provided that one (1) JSC meeting per Calendar Year shall be held in person. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | Decision Making. |
|--------|-----|------------------|

|   | (i) | The JSC is an advisory body only, and the rights and authorities of the Parties are set forth in this Agreement, including Section ‎3.4(c)(ii) and ‎3.4(c)(iii). The Parties shall use Commercially Reasonable Efforts to cause their respective members of the JSC to act in good faith and cooperate with one another. Any disagreement between the Parties shall be first submitted to the Alliance Managers in order to facilitate a resolution and then, if not resolved, at the election of either Party, be referred for resolution pursuant to‎Article 14. Notwithstanding the foregoing, each Party has final decision-making authority with respect to certain matters pursuant to ‎3.4(c)(ii) and ‎3.4(c)(iii), and no decision made in accordance with such final decision-making authority shall be subject to any dispute resolution mechanism or procedure under ‎Article 14. Notwithstanding anything else in this Agreement or the Manufacturing and Supply Agreement, in no event shall either Party exercise its final decision-making authority in a manner that would have the effect ofmodifying, or would otherwise be in conflict with, the terms of this Agreement or the Manufacturing and Supply Agreement. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Except as otherwise set out in this Agreement, Pluristem shall have final decision-making authority regarding any and all matters relating to: |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | the Development and Commercialization of Products in Pluristem’s Domain; and |
|--------|----|------------------------------------------------------------------------------------|

|   | 2. | Manufacture of Products, subject to the terms of the Manufacturing and Supply Agreement; |
|--------|----|------------------------------------------------------------------------------------------|

|   | (iii) | Except as otherwise set out in this Agreement, UTC shall have final decision-making authority regarding any and all matters relating to the Development and Commercialization of Products in the Field, provided that, if UTC exercises its decision-making authority under this Agreement, including under this Section ‎3.4(c)(iii), UTC will make a good faith effort to consult with Pluristem prior to making any decision that is reasonably likely to be material to Pluristem, and, if Pluristem requests, provide to Pluristem areasonably detailed written explanation of the basis for such decision. If the Parties disagree on such decision, UTC agrees, at Pluristem’s request, to make available an executive officer of UTC within ten (10) business days to discuss such matter; provided, however, that such a discussion will not affect UTC’s right to exercise its final decision-making authority with respect to such decision. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iv) | When exercising its decision-making authority under this Agreement, each Party shall: |
|--------|------|---------------------------------------------------------------------------------------|

|   | 1. | keep the other Party closely informed about its activities related to the decision; |
|--------|----|-------------------------------------------------------------------------------------|

|   | 2. | closely consult with the other Party on such activities and the possible decision(s) to be made and confer in good faith with the other Party respecting same; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | exercise its decision-making authority in accordance with the principles set forth in Section ‎4.1. |
|--------|----|-----------------------------------------------------------------------------------------------------------|

|   | (d) | Meeting Agendas. Each Party shall disclose to the other Party proposed agenda items along with appropriate information at least ten (10) Business Days in advance of each meeting of the JSC; provided that, under exigent circumstances requiring JSC input, a Party may provide its agenda items to the other Party within a lesser period of time in advance of the meeting, or may propose that there not be a specific agenda for a particular meeting, so long as such other Party consents to such later addition of such agenda items or the absence of a specific agenda for such JSC meeting. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.5 | Alliance Managers |
|-----|-------------------|

|   | (a) | Each of the Parties shall appoint a single individual to act as that Party’s point of contact for communications between the Parties relating to the activities conducted under this Agreement (each, an “Alliance Manager”). Each Party may change its designated Alliance Manager from time to time upon written notice to the other Party. Any Alliance Manager may designate a substitute to temporarily perform the functions of that Alliance Manager by written notice to the other Party. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Each Alliance Manager shall be charged with creating and maintaining a collaborative work environment between the Parties and within the JSC. Each Alliance Manager will also: (i) be the point of first referral in all matters of conflict resolution; (ii) coordinate the relevant functional representatives of the Parties in developing and executing strategies and plans for the Product; (iii) provide a single point of communication for seeking consensus both internally within the respective Parties’ organizations and between the Parties regarding key strategy and plan issues; (iv) identify and bring disputes to the attention of the JSC in a timely manner; (v) plan and coordinate cooperative efforts and internal and external communications; and (vi) take responsibility for ensuring thatgovernance activities, such as the conduct of required JSC meetings and production of meeting minutes occur as set forth in this Agreement, and that relevant action items resulting from such meetings are appropriately carried out or otherwise addressed. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The Alliance Managers shall use good faith efforts to attend all JSC meetings and support the co-chairpersons of the JSC in the discharge of their responsibilities. Alliance Managers shall be nonvoting participants in JSC meetings, unless they are also appointed members of the JSC pursuant to Section ‎3.2(a); provided, however, that an Alliance Manager may bring any matter to the attention of the JSC in order to facilitate a resolution of such matter. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3.6 | Independence |
|-----|--------------|

  

| 4.1 | Conduct of the Parties |
|-----|------------------------|

| 4.2 | Commercially Reasonable Efforts to Develop |
|-----|--------------------------------------------|

| 4.3 | Determination of Diligence |
|-----|----------------------------|

|   | (a) | Each Party shall promptly provide to the Evaluator and the other Party copies of all documents, statements and records on which the Party intends to rely in presenting its position to the Evaluator, and in any event, shall provide same no later than thirty (30) days of the appointment of the Evaluator. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Both Parties shall promptly provide to the Evaluator a written summary of their respective positions, and in any event, shall provide same no later than 45 days of the appointment of the Evaluator. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | On receipt of the documents, statements, records and summaries submitted by the Parties the Evaluator shall have thirty (30) days within which to conduct such further inquiries as he or she may deem necessary for the purpose of reviewing the efforts made by UTC with respect to the Development of the Product in compliance with the requirements of Section ‎4.2.  For the purpose of conducting such an inquiry, the Evaluator shall have the right to: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | require either Party to disclose any further documents or records which the Evaluator considers to be relevant; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

----

|   | (ii) | interview or question either orally (or by way of written questions) one or more representatives of either Party on issues deemed to be relevant by the Evaluator; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | make an "on site" inspection of UTC's facilities; and |
|--------|-------|-------------------------------------------------------|

|   | (iv) | obtain if necessary, the assistance of an independent expert to provide technical information with respect to any area in which the Evaluator does not have a specific expertise. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | The Evaluator shall within thirty (30) days of starting the inquiry, prepare a report setting their findings and conclusions as to whether or not UTC has used Commercially Reasonable Efforts as specified in Section ‎4.2. If the Evaluator determines that UTC has failed to use Commercially Reasonable Efforts as specified in Section ‎4.2, then the Evaluator shall specify in their report their conclusions as to what would constitute such Commercially Reasonable Efforts, and UTC shall thereafter either: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | perform in a timely manner the actions specified by the Evaluator in the Evaluator’s report as to what would constitute such Commercially Reasonable Efforts; or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | give notice to Pluristem of termination of this Agreement under Section ‎13.2. |
|--------|------|--------------------------------------------------------------------------------------|

|   | (e) | If UTC elects to perform the actions specified by the Evaluator in the Evaluator’s report and thereafter fails to execute such actions in a timely manner, after notice of breach provided in accordance with the terms of Section ‎13.3, then Pluristem may terminate this Agreement in accordance with Section ‎13.3 with the consequences set out in Section ‎13.4(b). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | The report and conclusions of the Evaluator shall be delivered to UTC and Pluristem, and shall be accepted by both Parties as final and binding. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Pluristem may not call for more than one evaluation pursuant to this Section ‎4.3 in any two Calendar Year period.  The Evaluator shall require the non-prevailing Party to pay the Evaluator’s full fees and expenses or, if in the Evaluator’s opinion there is no prevailing Party, the Evaluator’s fees and expenses will be borne equally by the Parties. At the request of UTC, Pluristem will consent to the participation in any evaluation made pursuant hereto of UTC’s sublicensee(s). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | Initial Transfer of Know-How |
|-----|------------------------------|

|   | (a) | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | Sharing of Development and Commercialization Information |
|-----|----------------------------------------------------------|

|   | (a) | From time to time during the Term, UTC, acting reasonably, may request access to any Pluristem Know-How that is Useful to UTC, and Pluristem shall provide such access. From time to time during the Term, Pluristem, acting reasonably, may request access to any UTC Know-How that is Useful to Pluristem or is necessary or useful to Pluristem in respect of Pluristem’s rights and obligations under this Agreement, and UTC shall provide such access. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | During the Term, each Party shall use Commercially Reasonable Efforts to make available to the other Party Information that is Useful to the other Party relating to the Development or Commercialization of the Product at no cost to such other Party. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | As requested or required by a Regulatory Authority, Pluristem will make available to UTC the Pluristem Know-How Useful in the Manufacture of the Product for use in the Field solely for the purpose of submitting such Information (to the extent required) to Regulatory Authorities. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6 | Duty to Confer and Consult |
|-----|----------------------------|

| 4.7 | Quality Agreement |
|-----|-------------------|

| 4.8 | Product Handling |
|-----|------------------|

----

  

| 5.1 | Development Activities |
|-----|------------------------|

|   | (a) | As between UTC and Pluristem, UTC shall be responsible for carrying out all activities relating to Development other than those limited activities set forth in Section ‎5.1(b) as “Pluristem Development Activities” (the “UTC Development Activities”). Without limiting the foregoing, UTC Development Activities shall include preparation of Regulatory Filings in UTC’s name in the Field and conducting (or having conducted) all clinical trials (including Phase IV studies) for the Field. UTC will consult with Pluristem in respect of such UTC Development Activities in accordance with ‎2.5(b). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | As between UTC and Pluristem, Pluristem shall be responsible for (i) supplying information to UTC as described in this Agreement; (ii) processing safety reports and notifying UTC of any Product withdrawals or recalls, and providing safety data to UTC, in each case as further described in this Agreement; (iii) supplying Product to UTC for Development at Pluristem’s expense, as further described in Section ‎6.1; (iv) performing the intravenous toxicology study in accordance with Section Error! Reference source notfound.; (v) such other activities proposed by UTC and agreed to by Pluristem, acting reasonably (collectively, the “Pluristem Development Activities”). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | If the Parties agree in advance in writing that Pluristem shall conduct any Development activities on behalf of UTC in the Field, then the Parties, acting reasonably, shall agree upon a protocol and the remuneration for each such activity. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | Regulatory Matters in Pluristem’s Domain |
|-----|------------------------------------------------|

| 5.3 | Notice of Regulatory Filings |
|-----|------------------------------|

| 5.4 | Regulatory Matters in the Field |
|-----|---------------------------------|

|   | (a) | As between Pluristem and UTC, UTC shall be responsible for regulatory activities with respect to Products in the Field, including filing of all Regulatory Filings for the Product in the Field, maintenance of all Regulatory Approvals in the Field, any reports or submissions required to be made to any non-governmental Third Party payors, and any and all regulatory matters arising after obtaining Regulatory Approval, including post-marketing inquiries and safety surveillance activities in the Field. Pluristem will be responsible for the CMC regulatory submission. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | UTC will be responsible for all obligations with respect to providing pricing reports to government authorities having responsibility for pricing matters. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | UTC anticipates seeking Regulatory Approval for registration of a separate UTC Product Mark for the Product in the Field. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

| 5.5 | Ownership of Regulatory Filings; Right of Cross-Reference |
|-----|-----------------------------------------------------------|

| 5.6 | Interactions with Authorities; Regulatory Inquiries |
|-----|-----------------------------------------------------|

|   | (a) | To the extent possible, UTC shall provide to Pluristem reasonable written notice of all meetings and conference telephone calls with any Regulatory Authority related to the Product in the Field. Pluristem shall have the right to have one or more representatives attend each such meeting and each such call, in each case to the extent permitted by the relevant Regulatory Authority. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The JSC shall implement policies and procedures for providing to each Party a copy of all correspondence or communications with Regulatory Authorities relating to the Product that are Useful to the other Party. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | If requested by Pluristem, UTC shall allow Pluristem to have one or more representatives acceptable to UTC, acting reasonably, attend any meeting or call with a Regulatory Authority respecting the Field, in each case to the extent permitted by the relevant Regulatory Authority, at UTC’s expense. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Pluristem shall: |
|--------|-----|------------------|

|   | (i) | notify UTC on a timely basis of any meetings and conference telephone calls with any Regulatory Authority related to the Product; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | make available to UTC on a timely basis any minutes of any such meetings or calls with a Regulatory Authority; |
|--------|------|----------------------------------------------------------------------------------------------------------------|

|   | (e) | UTC shall promptly provide Pluristem with copies of all written or electronic correspondence or communications received by UTC from Regulatory Authorities to the extent such correspondence or communications are Useful to Pluristem or are necessary or useful to Pluristem in the Field. Pluristem shall promptly provide UTC with copies of all written or electronic correspondence or communications received by Pluristem from Regulatory Authorities to the extent such correspondence or communications are Useful to UTC. If such correspondence or communication requires a response, the Parties shall consult with each other as appropriate to prepare a draft response, and the response shall be filed by the Party from whom the Regulatory Authority requested a response. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (f) | Each Party shall notify the other Party within one (1) Business Day after it receives information about the initiation of any investigation or inquiry by any Regulatory Authority concerning the Development, Manufacture, use or Commercialization of the Product in the notifying Party’s Domain to the extent such investigation or inquiry would be reasonably likely to adversely affect the other Party’s Domain. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | If a Regulatory Authority desires to conduct an inspection or audit with regard to the Product of a Party’s facility or a facility under contract with a Party with respect to the activities of either Party relevant to this Agreement, such Party shall permit and cooperate with such inspection or audit, and shall cause the contract facility to permit and cooperate with such Regulatory Authority during such inspection or audit. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.7 | Drug Safety |
|-----|-------------|

|   | (a) | Adverse Event Reporting. Except as set forth below, Pluristem shall be responsible for all activities related to the timely processing, evaluation, and reporting of Adverse Events to appropriate authorities, in accordance with local requirements, for the Product for all indications (including the Field) in the world. UTC shall be responsible for the surveillance, receipt, evaluation, and reporting of Adverse Events for the Product in UTC’s Domain. UTC and Pluristem shall enter into a safety agreement setting forth a process regarding compliance with all Applicable Laws and both Parties’ obligations related to such Adverse Event responsibilities for the Product (the “Safety Agreement”). In addition, the SafetyAgreement will set forth procedures for sharing information between the Parties regarding Adverse Events. The Parties shall commence negotiation of such safety agreement within thirty (30) days after written request from either Party to the other Party. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Safety Database. Unless otherwise required by Applicable Law or a Regulatory Authority, Pluristem shall create and maintain and exclusively own a single global safety database relating to the Product and **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**. UTC will cover the reasonable incremental costs of such database related to the performance of UTC’s activities under this Agreement. If Applicable Law or a Regulatory Authority requires otherwise, the Parties shall cooperate to collect and share such safety data as so required. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Right to Audit. Each Party shall have the right to perform audits of the other Party’s pharmacovigilance activities relating to the Parties’ activities under the terms of this Agreement including compliance by the other Party with Applicable Law. The notification of one Party’s intent to conduct such an audit will be provided in writing to the other Party within a reasonable time period in advance, based upon the particular circumstances of the situation. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.8 | Product Withdrawals and Recalls |
|-----|---------------------------------|

|   | (a) | In the event that (a) an event, incident, or circumstance has occurred which may result in the need for a recall or other removal of the Product or any lot or lots thereof from the market in the Field; (b) any Regulatory Authority in the Territory threatens or initiates any action to remove the Product from the market in the Field; or (c) any Regulatory Authority in the Territory requires distribution of a “Dear Doctor” letter or its equivalent, regarding use of the Product in the Field, the Party having knowledge of such event shall promptly advise the other Party in writing with respect thereto, and shall provide the other Party copies of all relevant correspondence, notices, and any other related documents. Unless otherwise agreed by the Parties, UTC shall be responsible forconducting the recall. Pluristem shall, upon reasonable request by UTC assist UTC in the conduct of any such recall or withdrawal in the Territory. Each Party will cooperate with the other Party in the performance of any recall or withdrawal. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | To the extent any recall of the Product is implemented as a result of the occurrence of an activity identified in Sections ‎12.2(a) through ‎12.2(e) inclusive by the Pluristem Indemnitees, Pluristem shall (i) bear all of Pluristem’s costs and all Reasonable Costs incurred by UTC in connection with such recall and (ii) either, at UTC’s option, replace or credit UTC for the cost of the relevant lots of the Product subject to the recall. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | To the extent any recall of the Product is implemented as a result of the occurrence of an activity identified in Sections ‎12.1(a) through ‎12.1(f) inclusive by the UTC Indemnitees, UTC shall (i) bear all of UTC’s costs and all Reasonable Costs incurred by Pluristem in connection with such recall and (ii) if not already paid for by UTC, pay Pluristem for the cost of the relevant lots of the Product subject to the recall. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Section ‎12.3 shall apply to the allocation of responsibility set out in this Section, mutatis mutandis. |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

| 5.9 | PLX Development Generally |
|-----|---------------------------|

|   | (a) | UTC may Develop, Manufacture (in the event of a failure to supply such product by Pluristem, and the definition of “Failure to Supply” in this Agreement shall apply in respect of such product, as if such product were Product hereunder) use and Commercialize such product in the Field; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | Pluristem may UTC may Develop, Manufacture, use and Commercialize such product in Pluristem’s Domain; |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

| 5.10 | PLX Development for Tissue Engineering |
|------|----------------------------------------|

|   | (a) | UTC may conduct PLX Development for the purposes of Tissue Engineering. UTC shall provide prior written notice and consult with Pluristem regarding such PLX Development which notice shall include the scope of such PLX Development and keep Pluristem reasonably informed of the status and results of such development. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | In the event that a Regulatory Authority requires any PLX Development as part of the UTC Development Activities, and provided that Pluristem has the capabilities to perform such PLX Development on behalf of UTC, UTC will give Pluristem a first opportunity in writing to conduct such development and the Parties will use good faith efforts to collaborate and agree on the terms of such development as soon as reasonably possible. If the Parties fail to agree on the terms of such development within a reasonable time, such period to be determined based on all the surrounding circumstances, including the requirements and timing of the relevant Regulatory Authority, UTC may conduct such development itself or with a Third Party. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

  

| 6.1 | Development Supply By Pluristem |
|-----|---------------------------------|

|   | (a) | Pluristem Obligations. Subject to the terms set forth below, Pluristem shall supply to UTC all Product and placebo reasonably requested by UTC for Development, pursuant to the terms of this Section ‎6.1. Pluristem warrants that all Product supplied by Pluristem hereunder: (i) shall meet all then-applicable specifications for the Product at the time of delivery (the “Specifications”); and (ii) shall be Manufactured in accordance with GMP and all other Applicable Laws. From time to time at JSC meetings, the Parties shall discuss availability and timing of delivery of clinicalsupplies of the Product and placebo hereunder. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Development Supply at No Cost. Pluristem shall supply the Development supplies of the Product and placebo supplied under this Section ‎6.1 at no cost to UTC; provided that, in respect of any supply of Products and placebo required due to loss of prior supply by UTC resulted from non-compliance by UTC with its obligations under the Quality Agreement or Section ‎4.8, UTC shall reimburse Pluristem for the Cost of Goods Sold for same. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Purchase Orders. From time to time at JSC meetings, the Parties shall discuss (i) the amount of Product and placebo to be supplied by Pluristem to UTC during each Calendar Year, and (ii) the procedures for UTC to submit its requirements and Pluristem to supply such requirements. Such procedures shall include (i) annual forecasts of UTC’s requirements, (ii) firm purchase commitments no less than ninety (90) days prior to the time the order must be delivered to UTC by Pluristem, and (iii) procedures for return and replacement of Product that does not substantially meet the Specifications or is in breach of the warranty set forth inSection ‎6.1(a). Any purchase orders, purchase order releases, confirmations, acceptances, invoices, and similar documents submitted by either Party shall be for administrative purposes only and shall not add to or modify the terms of this Agreement, except for the specification of quantities or delivery dates to the extent that with respect to such terms and agreement was reached between the Parties. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | Development Costs. Except for ex-factory delivery of Product by Pluristem, all other direct and indirect costs and expenses related to the Development shall be borne by UTC. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.2 | Commercial Manufacturing and Supply Agreement |
|-----|-----------------------------------------------|

|   | (a) | The Parties shall, commencing at least two (2) years prior to the anticipated date of Commercialization of the Product, as determined by the JSC, in good faith negotiate the terms of a Manufacturing and Supply Agreement such that it reflects the terms set out in the schedule attached hereto as Schedule ‎6.2 (the “Supply Terms Schedule”). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Except for UTC’s rights in the event a Failure to Supply pursuant to Section ‎6.7, UTC will procure all of its requirements for commercial sales of Product for use in UTC’s Domain from Pluristem pursuant to the Manufacturing and Supply Agreement. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The Parties shall negotiate the Manufacturing and Supply Agreement in good faith and with sufficient diligence as is required to execute and deliver the Manufacturing and Supply Agreement within one hundred and eighty (180) days after the commencement of the negotiation of such agreement (the “Negotiation Period”). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | In the event the Parties fail to execute and deliver the Manufacturing and Supply Agreement within the Negotiation Period, then each of the Parties shall produce a list of issues on which the Parties have failed to reach agreement and submit any then-existing draft(s) of the Manufacturing and Supply Agreement and the list(s) of issues to be resolved by a mutually acceptable person determined by the Parties to be competent in the drafting, structuring and negotiating of Manufacturing and Supply Agreements in the life sciences context as an independent evaluator to resolve the remaining issues in the Manufacturing and Supply Agreement. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | In the event that the Parties cannot agree on such evaluator, the appointing authority shall be the arbitral body referred to in Section ‎14.2(f) of this Agreement. The evaluator shall review the Manufacturing and Supply Agreement drafts and issues lists proposed by each Party. Each Party shall have the right to make written submissions regarding its position on each issue and to respond in writing to the submissions of the other Party. The evaluator shall prepare a commercially reasonable Manufacturing and Supply Agreement incorporating the terms set out in this Article and the Supply Terms Schedule and other customary and appropriate terms and conditions, taking into full consideration the positionof the Parties on the unresolved issues. The evaluator shall complete his/her preparation of the draft Manufacturing and Supply Agreement pursuant to this Section ‎6.2 within ninety (90) days of his/her appointment, or within such further period as is mutually agreed upon by the Parties. It is hereby clarified that other than as set forth herein, the Evaluator shall not be authorized to grant Manufacturing rights to UTC, its Affiliates or any other Third Parties. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (f) | The completed Manufacturing and Supply Agreement shall be executed by the Parties as the Manufacturing and Supply Agreement and the Parties shall perform their respective obligations in accordance with such agreement. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | One half of the cost of any appointment or determination pursuant to this Section ‎6.2 shall be borne by UTC and one half shall be borne by Pluristem. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3 | Commercial Supply Price |
|-----|-------------------------|

| 6.4 | Supply of Product Samples |
|-----|---------------------------|

| 6.5 | Non-Discrimination |
|-----|--------------------|

|   | (a) | in the event of a shortage of PLX or other inputs to the Product, favor the supply of the Product for use in those indications where the greatest harm will occur in the absence of such supply. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6.6 | Commercial Supply Capacity |
|-----|----------------------------|

|   | (a) | On a quarterly basis, Pluristem shall provide to the JSC (or to a duly formed subcommittee) forecast data showing expected worldwide Manufacturing capacity and demand for the Product for the subsequent twelve (12) months, and the JSC shall consider whether or not Pluristem will have adequate Manufacturing capacity to fulfill such demand for Product for such twelve (12) month period. In the event that the JSC concludes that a Manufacturing shortfall is reasonably possible, it shall inform the Parties and the Parties shall discuss in good faith ways of avoiding this shortfall. The determination of whether Pluristem shall increase its Manufacturing capacity shall be made by Pluristem in its absolute discretion. To the extent that a Failure of Supply is due in part to a failure by Pluristem toincrease its Manufacturing capacity, the foregoing sentence will not relieve Pluristem of the consequences provided for in this Agreement in the event of a Failure to Supply. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | At the end of a successful Phase II clinical trial in the Field, UTC and Pluristem may discuss the construction of a GMP manufacturing facility in North America, the cost of which will be shared by UTC and Pluristem with UTC’s commitment not to exceed $10 million. To the extent applicable the manufacturing facility may be used by Pluristem for Manufacturing of any products in Pluristem Domain. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.7 | Failure to Supply |
|-----|-------------------|

|   | (a) | UTC shall be relieved of its obligation to procure all of its requirements for Product for use in the Field from Pluristem pursuant to the Manufacturing and Supply Agreement; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the licenses set out in Section ‎2.1(b) shall be effective; |
|--------|-----|-------------------------------------------------------------------|

|   | (c) | Pluristem shall immediately provide, or cause to be provided, reasonable technical assistance at its own expense to UTC or its designee to the Pluristem Know-How necessary to permit UTC or its designee to Manufacture the Product, solely for use in the Field; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | nothing in this Agreement shall prevent UTC from making itself, having made and procuring, Product for use in the Field from any source, including any contract manufacturing organization or other manufacturer used by Pluristem for same; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Pluristem shall use Commercially Reasonable Efforts to facilitate procurement of Product for UTC for use in the Field; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------|

|   | (f) | If Pluristem gives notice to UTC that Pluristem has restored Pluristem’s supply and manufacturing capabilities, the Parties may negotiate in good faith regarding purchase of supplies of Product from Pluristem. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.8 | R&D Law and the OCS |
|-----|-------------------------|

|   | (a) | Pluristem warrants to UTC that: |
|--------|-----|---------------------------------|

|   | (i) | certain Pluristem Technology was developed with funding provided by the OCS and is identified in Exhibit ‎6.8‎0 (the “Funded Technology”), and the provision of same to UTC for the purpose of Manufacturing as set forth herein is subject to the provisions of and restrictions imposed by the R&D Law and the approval letters issued to Pluristem under such R&D Law before the Execution Date, and the consent of the OCS to the waiving of same to the extent required to permit the exercise by UTC ofits rights under Section ‎2.1(b) in respect of this Agreement and the Manufacturing and Supply Agreement (the “OCS Consent”); and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ii) | Pluristem has delivered to UTC a true copy of all such approval letters. |
|--------|------|--------------------------------------------------------------------------|

|   | (b) | Pluristem shall not agree with the OCS to any terms for the obtaining of the consent of the OCS to the grant of Manufacturing rights set out in this Agreement that are more onerous than those set out in such approval letters. Pluristem shall not enter into an agreement with any other Regulatory Authority or any other person that would make the warranties of Pluristem set out in this Agreement untrue. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | UTC undertakes and confirms that: |
|--------|-----|-----------------------------------|

|   | (i) | the receipt of Manufacturing rights and Pluristem Know-How in connection therewith pursuant to this Agreement shall be in accordance with the applicable Israeli laws and regulations; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | receipt and/or transfer of the Funded Know-How shall be subject to the OCS Consent and Pluristem’s undertakings towards the OCS contained in the approval letters issued to Pluristem under such R&D Law before the Execution Date. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Pluristem shall not take any action that will render the OCS Consent invalid. |
|--------|-----|-------------------------------------------------------------------------------|

| 6.9 | Access to Manufacturers |
|-----|-------------------------|

|   | (a) | Pluristem shall use Commercially Reasonable Efforts to, either directly or through one or more Third Party(ies), timely: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Manufacture, or have Manufactured, sufficient supplies of the Product as required for Development of the Product in the Field; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Manufacture, or have Manufactured, sufficient commercial supplies of the Product as required use in the Field; and |
|--------|------|--------------------------------------------------------------------------------------------------------------------|

|   | (iii) | conduct process development and scale-up work to develop a commercial process for the Manufacture and supply of Product for use in the Field, including related analytical and stability work. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Pluristem shall use its Commercially Reasonable Efforts to resolve any shelf-life, regulatory and other Manufacturing issues respecting the Product in the Field. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | In the event that UTC exercises its rights under Section ‎6.7, Pluristem agrees that: (i) UTC and its Representatives shall be entitled to contract directly with any Third Party with whom Pluristem has entered into such definitive agreement(s) under Section ‎6.9(a) and (ii) such definitive agreement(s) shall not contain any contractual provision that would prohibit UTC and its Representatives from contracting directly or otherwise having access to any such Third Party(ies) for the Manufacture of Product for use in the Field. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | Pluristem will use Commercially Reasonable Efforts not to limit or restrict Pluristem’s ability to grant UTC license as provided for herein without violating the terms of any agreement or other arrangement with any such Third Party. The Parties acknowledge that if Pluristem is required to pay license fees or royalties to any such Third Party(ies) in order to grant UTC such license to use any Pluristem Technology for the Manufacture of Product for use in the Field, then Pluristem shall in a timely fashion offer to UTC in writing a license or sublicense to such Pluristem Technology. Within a reasonable period of time (but not to exceed sixty (60) days after receipt of Pluristem’s offer, UTC shall either accept the license or sublicense of same and pay to Pluristem the amount of suchmaterial licensing fees or royalties, or advise Pluristem that UTC does not wish to obtain such rights. Nothing in this Section ‎6.9(d) applies to the OCS Consent, which is dealt with in Section ‎6.8. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | If Pluristem Manufactures the Product itself, rather than through Third Part(ies), Pluristem will timely provide reasonable technical assistance to UTC and its Representatives with respect to the technology and Know How necessary to permit UTC or its Representatives to Manufacture or have Manufactured the Product for use in the Field as permitted by this Agreement. Each Party shall bear its own cost and expense of such assistance. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | It is hereby clarified that, whether or not UTC exercises any of its rights pursuant to the provisions of Sections ‎6.7 or ‎6.9, Pluristem and/or any of its successors and assignees will be entitled to the consideration set forth in ‎Article 8. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

  

| 7.1 | Commercialization Activities |
|-----|------------------------------|

|   | (a) | Except as otherwise provided herein, UTC shall use Commercially Reasonable Efforts to Commercialize the Product in the Field (the “UTC Commercialization Activities”). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Except as provided otherwise in the Manufacturing and Supply Agreement or this Agreement, Pluristem shall: (i) Manufacture and supply to UTC reasonable quantities of Product and Product Samples for use in the Field as reasonably requested by UTC; and (ii) grant and hereby grants to UTC a nonexclusive license to reproduce and publish, distribute or display Pluristem’s promotional materials used in Pluristem’s Domain (as same may be modified by UTC, subject to Pluristem prior written approval, acting reasonably) solely in UTC’s Domain for the enjoyment of UTC’s rights under this Agreement. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.2 | Compensation for Sales Outside the Selling Party’s Domain |
|-----|-----------------------------------------------------------------|

|   | (a) | If Pluristem believes that there are any sales of the Product in Pluristem’s Domain originating directly or indirectly from UTC, Pluristem shall be permitted to implement and conduct procedures under which material sales and purchases of the Product in the Territory and other related market research data shall be audited and monitored, using for example IMS Health and PDDA data and information, and UTC agrees to cooperate with Pluristem in the implementation and conduct of such procedures. In the event that such an audit and monitoring procedure determines that sales of the Product in Pluristem’s Domain have been or are being made originating directly or indirectly from UTC, then **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HASBEEN FILED SEPARATELY WITH THE COMMISSION.** consideration received by UTC from such sales shall be immediately paid to Pluristem. Notwithstanding anything to the contrary, the remedy to Pluristem set forth in the previous sentence will not be the exclusive remedy available to Pluristem under this Section ‎7.2(a). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If UTC believes that there are sales of Product in the Field originating directly or indirectly from Pluristem, UTC shall be permitted to implement and conduct procedures under which material sales and purchases of the Product in the Territory and other related market research data shall be audited and monitored, using for example IMS Health and PDDA data and information, and Pluristem agrees to cooperate with UTC in the implementation and conduct of such procedures. In the event that such an audit and monitoring procedure determines that material sales of Product in the Field have been or are being made originating directly or indirectly from Pluristem, then **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THECOMMISSION.** consideration received by Pluristem from such sales shall be immediately paid to UTC. Notwithstanding anything to the contrary, the remedy to UTC set forth in the previous sentence will not be the exclusive remedy available to UTC under this Section ‎7.2(b). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | Commercialization Costs |
|-----|-------------------------|

| 7.4 | Complaints and Inquiries |
|-----|--------------------------|

| 7.5 | Product Integrity |
|-----|-------------------|

|   | (a) | The Parties acknowledge and agree that all Product supplied to UTC under the Manufacturing and Supply Agreement is intended to be sold to end-users under a separate UTC Product Mark for use in the Field, and that Pluristem intends to sell the Product under a separate Pluristem Product Mark for use in Pluristem’s Domain. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | UTC agrees that it will Promote the Product to healthcare professionals for use only in the Field, and will not, directly or indirectly, promote, disseminate information about or seek reimbursement for the Product in Pluristem’s Domain. In the event that UTC discovers that the Product is being distributed in Pluristem’s Domain, UTC shall notify Pluristem, and the provisions set forth in Section ‎7.2(a) shall apply. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Pluristem agrees that it will not promote the Product to healthcare professionals for use in the Field and will not, directly or indirectly, promote, disseminate information about or seek reimbursement for the Product in the Field. In the event that Pluristem discovers that a Product is being distributed in Field, Pluristem shall notify UTC, and the provisions set forth in Section ‎7.2(b) shall apply. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | The Parties shall implement reasonable anti-counterfeiting and field restriction practices, and cooperate fully with each other by taking any and all reasonable steps to protect the safety of patients, maintain the loyalty of physician customers, preserve value, and ensure that safe Product is available to patients seeking treatment and appropriately handled for safe and effective treatment. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | The Parties have entered into this Agreement with the expectation that each Party undertake the effort, expense and risks associated with the Development and Commercialization of Product in the Parties’ respective Domains and that the opportunity in each Domain give rise to a return commensurate with the effort, expense and risks associated with same. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | To the extent permissible under Applicable Law, each Party will make commercially reasonable efforts to ensure that nothing done a Party’s Domain adversely affects the other Party’s Domain, including taking reasonable steps to discourage or prevent “off-label” or out-of-Domain use. In this regard, and without limiting the generality of the foregoing: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | each Party will ensure that differentiated Products will be developed respectively for the Field and for Pluristem’s Domain; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | where reasonably feasible to do so, each Party will formulate, package and fix the dosage of each Product in such a way so that it will not be useful for the other Party’s Domain; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | each Party shall share with the other Party any creditable information as to off-label or out-of-Domain use of the former Party’s Product; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | each Party shall discontinue sales to any Third Parties selling the Product for off-label or out-of- Domain use; and |
|--------|------|----------------------------------------------------------------------------------------------------------------------|

|   | (v) | the Parties shall implement a policy addressing the appropriate handling of unsolicited requests and dissemination of information about “off-label” or out-of- Domain use. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Upon the written request of either Party, the Parties shall meet and in good faith endeavor to reach further agreement on means of avoiding, correcting or abating off-label or out-of- Domain uses and addressing the consequences of such uses in a fair and reasonable manner, including incorporating in detail the issues contemplated in this Section ‎7.5 and any other matters necessary or useful to discourage or prevent “off-label” or out-of- Domain use. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (h) | In the absence of the agreement contemplated by Section ‎7.5(g), either Party may give notice to the other Party triggering the process for reaching an agreement set out in Section ‎6.2(c), ‎6.2(d), ‎6.2(e), ‎6.2(f) and ‎6.2(g), except that, for the purposes ofthis Section‎7.5(h), the “Negotiation Period” shall be ninety (90) days and the references to the “Manufacturing and Supply Agreement” shall mean the “Product Integrity Agreement” contemplated by this Section. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Each Party shall ensure that any agreement it enters into with a licensee or sublicensee of its rights to the Product in its own Domain shall include provisions substantially similar to those set out in this Section ‎7.5. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

   

| 8.1 | Upfront Payment |
|-----|-----------------|

|   | (a) | a one-time-only, nonrefundable, non-creditable payment of Five Million Dollars ($5,000,000); and |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (b) | a refundable, creditable payment of Two Million Dollars ($2,000,000) as an advance against the reasonable and direct cost to Pluristem of the completion of the intravenous toxicology studies required for IND filing as approved in advance by UTC. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | Milestones |
|-----|------------|

|   | (a) | UTC shall pay to Pluristem the nonrefundable, non-creditable milestone payments set forth in the table below within thirty days of the first achievement of each of the following events with respect to a Product in the Field: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Milestone Event                                                                                                                                                                                                       | Amount                                                                                                                                               |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| (i)**        THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**                         | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
| (ii)           **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
| (iii)          **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**      | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |

----

|   | (b) | Each of the foregoing milestones shall be payable only once. It is further agreed between the Parties that any of the milestone payments set forth above are attributed to Pluristem's development services provided to UTC in connection with the achievement of such milestone. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Occurrence of the foregoing milestones and payments made on account of the occurrence of the foregoing milestones will not be publicly announced by a Party without the express written consent of the other Party, unless that announcement or disclosure of such payment is required by Applicable Law. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.** |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.3 | Royalty Payments |
|-----|------------------|

----

| 8.4 | Payments and Reports |
|-----|----------------------|

|   | (a) | UTC shall keep (and shall cause its Affiliates and shall require its sublicensees to keep) complete and accurate books and records that are necessary for Pluristem to ascertain and verify the payments owed hereunder. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | UTC shall provide a report to Pluristem within sixty (60) days after the end of each Calendar Quarter that summarizes all Gross Profits, including, if applicable, the fair market value of all non-monetary consideration received by UTC in exchange for the Product, during such Calendar Quarter and contains detailed information regarding the calculation of amounts due to Pluristem pursuant to Section ‎8.3, including allowable deductions in the calculation of Gross Profits, in a manner sufficient to enable Pluristem to determine amounts due to Pluristem under Section ‎8.3 (“Gross Profits Report”). UTC willmail the Gross Profits Report to the attention of: Chief Financial Officer. Contemporaneously with the delivery of each Gross Profits Report, UTC shall make all payments due to Pluristem pursuant to Section ‎8.3 with respect to the Calendar Quarter corresponding to such Gross Profits Report by wire transfer in immediately available funds in accordance with the terms of Section ‎8.6. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Any payment required under this Agreement to be made to Pluristem by UTC shall be made to an Affiliate of Pluristem if designated in writing by Pluristem as the appropriate recipient. Any report required under this Agreement to be made to Pluristem by UTC shall be made by an Affiliate of UTC if designated in writing by UTC as the appropriate reporting entity. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.5 | Taxes |
|-----|-------|

| 8.6 | Wire Transfers |
|-----|----------------|

| 8.7 | Audit Rights |
|-----|--------------|

----

| 8.8 | Exchange Rate |
|-----|---------------|

| 8.9 | Blocked Currency |
|-----|------------------|

| 8.10 | Late Payments |
|------|---------------|

  

| 9.1 | Inventions Respecting Development |
|-----|-----------------------------------|

|   | (a) | Pluristem shall retain exclusive ownership of all intellectual property rights in Pluristem Technology existing as of the Effective Date; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | Inventions Respecting PLX Development |
|-----|---------------------------------------|

|   | (a) | any and all intellectual property rights in Inventions invented and Information created, either solely or jointly with Third Parties, by the employees or agents of UTC arising from the activities of UTC carried out under this Agreement and Controlled by UTC or Pluristem which cannot be used or practised without a licence of the Pluristem Patents or the Pluristem Know-How, without regard to how such Inventions were invented and such Information was created; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | any and all intellectual property rights in Inventions invented and Information created, either solely or jointly with Third Parties, by the employees or agents of UTC arising from the PLX Development and Controlled by UTC or Pluristem arising from the PLX Development, including PLX Development as a component of Tissue Engineering (the “PLX Development IP”); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.3 | Other Inventions |
|-----|------------------|

| 9.4 | Patent Prosecution |
|-----|--------------------|

|   | (a) | UTC Patents. UTC shall retain control and ownership over, and bear all expenses associated with, the filing, prosecution, and maintenance of any UTC Patents. UTC shall confer in good faith with Pluristem regarding UTC’s patent strategy for the Field. Pluristem shall have the right to comment upon UTC’s strategy and to propose additional countries in the Territory where it believes UTC should seek Patent protection. In the event UTC decides not to file an application for a UTC Patent Covering the Product in the Field in a country, UTC shall promptly notify Pluristem of such decision and Pluristem shall have the right to file, prosecute, and maintain such UTC Patent in UTC’s name at Pluristem’s sole expense andabsolute discretion. UTC shall not abandon any patents or patent claims in the UTC Patents Covering the Product in the Field without prior written notice to Pluristem and Pluristem shall have the right to maintain such patent claim or patent in UTC’s name at Pluristem’s sole expense and absolute discretion. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | Pluristem Patents. Pluristem shall retain control and ownership over, and bear all expenses associated with, the filing, prosecution, and maintenance of any Pluristem Patents. Pluristem shall confer in good faith with UTC regarding Pluristem’s patent strategy, including those countries in the Territory in which Pluristem intends to file applications for Pluristem Patents that claim the Development, Manufacturing or Commercialization of a Product in the Field. UTC shall have the right to comment upon Pluristem’s strategy and to propose additional countries in the Territory where it believes Pluristem should seek Patent protection. In the event Pluristem decides not to file an application for a Pluristem Patent Covering theProduct in the Field in a country, Pluristem shall promptly notify UTC of such decision and UTC shall have the right to file, prosecute, and maintain such Pluristem Patent in Pluristem’s name at UTC’s sole expense and absolute discretion and such patent application or Patent issuing therefrom shall be deemed included in the scope of the Pluristem Patents licensed hereunder. Pluristem shall not abandon any patents or patent claims in the Pluristem Patents Covering the Product in the Field without prior written notice to UTC and UTC shall have the right to maintain such patent claim or patent in Pluristem’s name at UTC’s sole expense and absolute discretion. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Joint Patents. The JSC shall determine the Parties’ rights and obligations with respect to the filing, prosecution, maintenance and enforcement of Joint Patents and the costs associated therewith, on a case-by-case basis. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.5 | Enforcement of Patent Rights |
|-----|------------------------------|

|   | (a) | Notice.  If either Party becomes aware of any Third Party activity that infringes a Pluristem Patent or a UTC Patent or a Joint Patent, then that Party shall give prompt written notice to the other Party within thirty days after gaining knowledge of such infringement or violation. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Primary Right to Bring Action. Each Party shall have the primary right, but not the obligation, to institute, prosecute or control any action or proceeding, with respect to such Third Party activity, by counsel of its own choice, in its own Domain. If a Party brings an action or proceeding under this Section ‎9.5(b), the other Party shall have the right (at its own expense, which shall not be reimbursed out of any damages or monetary award recovered) to participate in such action and to be represented by counsel of its own choice; furthermore, the other Party hereby agrees to be joined as a party to the action or proceeding, at the request andexpense of the Party bringing such action or proceeding, and to provide reasonable assistance in any such action or proceeding, at the requesting Party’s expense. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | Allocation of Recovery. In the event that UTC initiates an action solely in respect of the Field, any damages or monetary awards recovered by UTC shall first be applied to reimburse UTC an amount equal to the reasonable costs and expenses of UTC in connection with such litigation, and the balance shall be allocated **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.6 | Further Assurances |
|-----|--------------------|

| 9.7 | Enforcement of Other Government-Conferred Rights |
|-----|--------------------------------------------------|

| 9.8 | Infringement Defense |
|-----|----------------------|

|   | (a) | If a Third Party asserts that a Patent owned or otherwise controlled by it is infringed by the Development, Manufacture, use or Commercialization of the Product in the Field, the Party first obtaining knowledge of such a claim shall immediately provide the other Party notice of such claim, along with the related facts in reasonable detail. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Neither Party shall agree to any settlement of such an action or proceeding that would have an adverse effect on the other Party’s Domain without the prior written consent of the other Party, which consent shall not be unreasonably withheld. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Subject to Section ‎9.8(d), if a Third Party asserts that any intellectual property, including any Patent, owned or otherwise controlled by it is infringed by the Manufacture of the Product, or by the Development or Commercialization of the Product in the Field, then |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Subject to Section ‎9.8(c)(ii), Pluristem will assume the defense and the expense of defending and/or settling such suit; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | if such infringement arises solely due to: |
|--------|------|--------------------------------------------|

|   | 1. | any change to the Product arising from UTC’s activities under this Agreement; or |
|--------|----|----------------------------------------------------------------------------------------|

----

|   | 2. | the fact that such Patent Covers the use of the Product in the Field, and does not otherwise Cover the Development, Manufacture, use or Commercialization of the Product; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | If the basis of such assertion is also a breach of a warranty made by Pluristem under this Agreement, then such defense and the expense of defending and/or settling such suit shall be borne solely by Pluristem pursuant to Section ‎12.2. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.9 | Information and Updates |
|-----|-------------------------|

| 9.10 | Patent Challenges |
|------|-------------------|

|   | (a) | During the Term of this Agreement, UTC and its Affiliates hereby covenant and agree not to, directly or indirectly, commence any legal proceeding that challenges the validity, enforceability or ownership of any Pluristem Patents (a “Patent Challenge”). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If UTC or its Affiliate directly or indirectly commences any Patent Challenge, Pluristem shall have the right to immediately terminate this Agreement by written notice effective upon receipt by UTC. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.11 | Invention Assignment |
|------|----------------------|

  

| 10.1 | Representations, Warranties and Covenants |
|------|-------------------------------------------|

|   | (a) | it is duly organized and validly existing under the laws of its jurisdiction of incorporation or formation, and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | it is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the person or persons executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate action; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | this Agreement is legally binding upon it and enforceable in accordance with its terms. The execution, delivery, and performance of this Agreement by it does not conflict with any agreement, instrument, or understanding, oral or written, to which it is a Party or by which it is bound, nor violate any material law or regulation of any court, governmental body, or administrative or other agency having jurisdiction over it; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | it has not granted and will not during the Term grant any right to any Third Party that would conflict with the rights granted to the other Party hereunder. It has (or will have at the time performance is due) maintained and will maintain and keep in full force and effect all agreements (including license agreements) and filings (including patent filings) necessary to perform its obligations hereunder; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | it shall comply and cause its employees and consultants who will be undertaking any activities related to this Agreement or the Product to comply, with all Applicable Laws respecting such activities; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | neither its name nor the name of any of its employees or consultants who will be undertaking any activities related to this Agreement or the Product are listed on the debarment list maintained by the FDA pursuant to 21 U.S.C. Sections 335(a) and Section 335(b) and published on the internet at the following address (or any successor address): http://www.fda.gov/ora/compliance_ref/debar/default.htm. In the course of the Development of the Product prior to or pursuant to this Agreement, it has not used, and during the Term will not use, any employee or consultant that is debarred by any Regulatory Authority or, to the best of its knowledge, is the subject of debarment proceedings by any Regulatory Authority. If it learns that its employee or consultant performing on its behalf underthis Agreement has been debarred by any Regulatory Authority, or has become the subject of debarment proceedings by any Regulatory Authority, it shall so promptly notify the other Party and shall prohibit such employee or consultant from performing on its behalf under this Agreement. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | Representations and Warranties of Pluristem |
|------|---------------------------------------------|

|   | (a) | Pluristem has received no communication from a Regulatory Authority to cause Pluristem, acting reasonably, to expect the denial of a Regulatory Approval for the Product in any indication; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | to Pluristem’s knowledge, there are no FDA “field alerts” (or the equivalent in countries outside the United States) pending with respect to the Product; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | Pluristem is and was, at all times prior to the Effective Date, the lawful holder of all rights under the Regulatory Approvals and the Regulatory Filings for the Product in the Territory in existence as of the Effective Date; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Pluristem has complied in all material respects with all Applicable Laws in connection with the preparation and submission to the relevant Regulatory Authorities of the Regulatory Approvals and the Regulatory Filings for the Product in existence as of the Effective Date; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | nothing has come to the attention of Pluristem which has, or reasonably should have, led Pluristem to believe that either of the Regulatory Approvals or the Regulatory Filings for the Product in the Territory in existence as of the Effective Date are not in good standing with relevant Regulatory Authorities; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Pluristem has filed with the relevant Regulatory Authorities all required notices, amendments and annual or other reports, including Adverse Event reports, with respect to the Regulatory Approvals and the Regulatory Filings for the Product in existence as of the Effective Date; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | to Pluristem’s knowledge, there is no pending action by relevant Regulatory Authorities in respect of the Regulatory Approvals or the Regulatory Filings for the Product in existence as of the Effective Date; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | neither Pluristem nor any of its Affiliates has granted any licenses to, agreed not to sue, or otherwise authorized, any person or entity, under the Pluristem Technology to Develop or Commercialize the Product in the Field, or Manufacture the Product for use in the Field; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Pluristem has granted UTC a license as of the Effective Date to all intellectual property rights that Pluristem Controls that are necessary or useful to Develop, use or Commercialize the Product in the Field, and, subject to the conditions set out herein for the grant of the license set out in Section 2.1(b), to Manufacture the Product for use in the Field, in each case subject to and in accordance with the terms and conditions of this Agreement; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | Pluristem owns all right, title and interest in and to the Pluristem Technology free and clear of all encumbrances, security interests, options and licenses, other certain rights of the OCS and under the R&D Law as set forth in this Agreement; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | Pluristem is not aware of any claims, actions, suits or proceedings that are pending or threatened, challenging Pluristem’s rights to the Product in the Territory, in the Pluristem Technology that is necessary or useful to Develop, Manufacture, use or Commercialize the Product in the Field; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | Pluristem has not given any notice in writing to any Third Party asserting infringement by such Third Party with respect to the Product in the Territory of any of the Pluristem Patents or the Pluristem Know-How, and Pluristem is not aware of any such infringements; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (m) | other than as disclosed in writing to UTC’s counsel prior to the Execution Date, to Pluristem’s knowledge, there is no claim, action, suit, or proceeding, pending or threatened by a Third Party alleging that the Development, Manufacture or Commercialization of the Product in the Field infringes or misappropriates any patents or other intellectual property rights of any Third Party; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | to Pluristem’s knowledge, the Development, Manufacture and Commercialization and use of the Product does not infringe or misappropriate any patents or other intellectual property rights of any Third Party; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (o) | Pluristem is not aware of any inventors of Pluristem Patents other than those listed as inventors on applications filed for such Pluristem Patents, and, to Pluristem’s knowledge, all inventors listed on Pluristem Patents have assigned all their rights and interest therein to Pluristem or, with respect to any Pluristem Patents licensed by Pluristem from any Third Party, to such Third Party; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (p) | Pluristem is not aware of: |
|--------|-----|----------------------------|

|   | (i) | any facts that Pluristem believes would result in invalidity or unenforceability of the Pluristem Patents; |
|--------|-----|------------------------------------------------------------------------------------------------------------|

|   | (ii) | any person (other than persons identified as inventors of inventions disclosed in the Pluristem Patents) who claims to be an inventor of an invention disclosed in the Pluristem Patents; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | any claim, action, suit, or proceeding, pending or, to Pluristem’s knowledge, threatened, that any of the Pluristem Patents is invalid or unenforceable; and |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | the abandonment, disclaimer (other than with respect to terminal disclaimers) or expiration of any of the Pluristem Patents due to failure to timely pay applicable maintenance and renewal fees; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (q) | no patent application within the Pluristem Patents is the subject of any pending interference, opposition, cancellation, protest, or other challenge or adversarial proceeding in the Territory; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (r) | Pluristem has responded in good faith to all inquiries of UTC for information relating to all toxicology studies, clinical data, manufacturing process data and other information in its possession or control with respect to the Product that is material and would be reportable to the FDA under 21 C.F.R. 200 et. seq., and has not withheld any such information that would have a materially adverse effect on the Development or Commercialization of the Product in the Field; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (s) | Pluristem Therapeutics Inc. is the sole owner of all legal and beneficial interests in Pluristem Ltd. free and clear of all encumbrances, security interests, options and the like. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.3 | Disclaimer |
|------|------------|

  

| 11.1 | Treatment of Confidential Information |
|------|---------------------------------------|

| 11.2 | Exceptions |
|------|------------|

|   | (a) | at the time of disclosure by the Disclosing Party to the Receiving Party, was generally available to the public, or after such disclosure, becomes generally available to the public through no fault attributable to the Receiving Party; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | was known to the Receiving Party as evidenced by written documents, without obligation to keep it confidential, prior to when it was received from the Disclosing Party; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | is subsequently disclosed to the Receiving Party, without obligation to keep it confidential, by a Third Party lawfully in possession thereof and having the right to so disclose; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | has been independently developed by employees of the Receiving Party, as demonstrated by the Receiving Party by competent written proof, who do not have access to or knowledge of such Confidential Information. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 11.3 | Authorized Disclosures |
|------|------------------------|

|   | (a) | to the Receiving Party’s Affiliates, employees, agents, consultants, contractors, and distributors, and to the employees, agents, consultants, contractors, and distributors of the receiving Party’s Affiliates, who have a need to know such Confidential Information to assist the receiving Party with the activities contemplated or required of it by this Agreement and who are subject to obligations of confidentiality and non-use with respect to such Confidential Information substantially similar to the obligations of confidentiality and non-use of the receiving Party pursuant to Section ‎11.1; provided that the termof such obligations may be reduced so as to be commercially reasonable based on the circumstances; and provided further that each Party shall each remain responsible for any failure by its Affiliates, and its and its Affiliates’ employees, agents, consultants, contractors, and distributors, to treat such Confidential Information as required under this Section ‎11.3; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | to professional advisors bound by a duty of confidentiality; |
|--------|-----|--------------------------------------------------------------|

|   | (c) | to Receiving Party’s investors and potential investors, acquirers, or merger candidates bound by a duty of confidentiality; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | to Receiving Party’s clinical investigators and sublicensees and potential clinical investigators and potential sublicensees bound by a duty of confidentiality; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | to the extent required by court order or Applicable Law, provided that the Receiving Party provides the other Party prior written notice of the required disclosure and takes reasonable steps to limit such disclosure to the minimum required amount and to obtain, or cooperate with the other Party in obtaining, a protective order or other similar order requiring that such Confidential Information be used only for the purposes required by such court order, law, or regulation. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.4 | Securities Filings |
|------|--------------------|

----

| 11.5 | Publicity |
|------|-----------|

| 11.6 | Publication |
|------|-------------|

|   | (a) | Each Party agrees that it shall not publish or present to the public the results of any non-clinical scientific studies or clinical trials related to the Field without the opportunity for prior review by the other Party. If a Party (the “Publishing Party”) wishes to publish or to present to the public such results, then it shall provide the other Party (the “Non-Publishing Party”) the opportunity to review any of the Publishing Party’s proposed abstracts, manuscripts or presentations (including verbal presentations) regarding the Product at least thirty (30) days prior to the intended date of submission for publication. Neither Party shall have the right to publish or present to the public Confidential Information of the other Party, except as permitted underSections ‎11.2 and ‎11.3. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | It is understood that a Detail of the Product in the Field shall not be considered to be publication or presentation to the public and shall therefore not be subject to the requirements of Section ‎11.6(a). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.7 | Patient Information |
|------|---------------------|

----

| 11.8 | Confidentiality Agreement |
|------|---------------------------|

  

| 12.1 | Indemnification by UTC |
|------|------------------------|

|   | (a) | the Development, Manufacture, use, or Commercialization of the Product for use in the Field by the UTC Indemnitees; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

|   | (b) | any infringement of any Third Party intellectual property rights as contemplated in Section ‎9.8(c)(ii); |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | (c) | the negligence or willful misconduct of the UTC Indemnitees; |
|--------|-----|--------------------------------------------------------------|

|   | (d) | any material breach by UTC of any of its representations, warranties, covenants or obligations pursuant to this Agreement or the Manufacturing and Supply Agreement; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | any violation of Applicable Law by the UTC Indemnitees; or |
|--------|-----|------------------------------------------------------------|

|   | (f) | the breach of this Agreement, including the breach of the terms of any licenses granted by Pluristem and contained herein, by any sublicensee of UTC; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.2 | Indemnification by Pluristem |
|------|------------------------------|

|   | (a) | the Development, Manufacture, use, or Commercialization of the Product by the Pluristem Indemnitees for use in Pluristem’s Domain and the Manufacture of the Product by the Pluristem Indemnitees for use in the Field; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | any infringement of any Third Party intellectual property rights as contemplated in Section ‎9.8(c)(i); |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

|   | (c) | the negligence or willful misconduct of the Pluristem Indemnitees; |
|--------|-----|--------------------------------------------------------------------|

|   | (d) | any material breach by Pluristem of any of its representations, warranties, covenants or obligations pursuant to this Agreement or the Manufacturing and Supply Agreement; or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | any violation of Applicable Law by the Pluristem Indemnitees; |
|--------|-----|---------------------------------------------------------------|

| 12.3 | Allocation of Responsibility |
|------|------------------------------|

| 12.4 | Procedure |
|------|-----------|

|   | (a) | A Party believing that it is entitled to indemnification under Section ‎12.1 or Section ‎12.2 (an “Indemnified Party”) shall give prompt written notification to the other Party (the “Indemnifying Party”) of the commencement of any Claim for which indemnification may be sought or, if earlier, upon the assertion of any such Claim by a Third Party (it being understood and agreed, however, that the failure by an Indemnified Party to give notice of a Third-Party Claim as provided in this Section‎12.4 shall not relieve the Indemnifying Party of its indemnification obligation under this Agreement except and only to the extent that such Indemnifying Party is actually prejudiced as a result of such failure to give notice). Within thirty (30) days after delivery of such notification, the Indemnifying Party shall, upon written notice thereof to the Indemnified Party, assume control of the defense of such Claim with counsel reasonably satisfactory to the Indemnified Party. If a Party believes that a Claim presented to it for indemnification is one as to which the Party seeking indemnification is not entitled to indemnification under Section ‎12.1 orSection ‎12.2, it shall so notify the Party seeking indemnification. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The Indemnified Party may participate in such defense at its own expense. |
|--------|-----|---------------------------------------------------------------------------|

|   | (c) | The Indemnified Party shall cooperate fully with the Indemnifying Party and its counsel in the defense against any such Claim, including making available to the Indemnifying Party any books, records or other documents within its control that are necessary for such defense. All Reasonable Costs incurred in connection with the Indemnified Party’s cooperation will be borne by the Indemnifying Party. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | The Indemnifying Party shall keep the other Party advised of the status of such Claim and the defense thereof and shall consider recommendations made by the Indemnified Party with respect thereto. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | The Indemnified Party shall not agree to any settlement of such Claim without the prior written consent of the Indemnifying Party, which consent shall not be unreasonably withheld. The Indemnifying Party shall not agree to any settlement of such Claim or consent to any judgment in respect thereof that does not include a complete and unconditional release of the Indemnified Party from all liability with respect thereto or that imposes any liability or obligation on the Indemnified Party or adversely affects the Indemnified Party without the prior written consent of the Indemnified Party, which consent shall not be unreasonably withheld. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.5 | Insurance |
|------|-----------|

| 12.6 | No Consequential or Punitive Damages |
|------|--------------------------------------|

  

| 13.1 | Term |
|------|------|

|   | (a) | the expiration, lapse, cancellation, abandonment or invalidation of the last Valid Claim covering the Commercialization of the Product in UTC’s Domain; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | expiration of any government-conferred exclusivity respecting the use of the Product in UTC’s Domain; |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (c) | the date on which the Parties do not have any Product under Development pursuant to this Agreement; and |
|--------|-----|---------------------------------------------------------------------------------------------------------|

|   | (d) | **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2 | Unilateral Termination by UTC |
|------|-------------------------------|

----

| 13.3 | Material Breach |
|------|-----------------|

|   | (a) | If a Party believes that the other Party is in material breach of this Agreement or the Manufacturing and Supply Agreement, then such Party may deliver notice of such breach to the allegedly breaching Party. In such notice, the non-breaching Party shall identify the actions or conduct that it wishes the allegedly breaching Party to take for an acceptable and prompt cure of such breach; provided that such identified actions shall not be binding upon the allegedly breaching Party with respect to the actions that it may need to take to cure such breach. The allegedly breaching Party shall have thirty (30) days either to cure such breach or, if the cure cannot be reasonably effected within such thirty (30) day period, to deliver to the non-breaching Party a plan for curing such breach which isreasonably sufficient to effect a cure. Following delivery of such plan, the breaching Party shall use Commercially Reasonable Efforts to carry out the plan and cure the breach in a timely manner. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If the Party receiving notice of breach fails to cure such breach within the thirty (30) day period, or if the proposed corrective plan or the actions being taken to carry it out are not commercially practicable, the non-breaching Party may give notice of termination of this Agreement upon fifteen (15) days advance written notice. Such notice shall effectively terminate this Agreement upon expiration of such fifteen (15) day period, subject to Section ‎13.3(c). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | If a Party gives notice of termination under this Section ‎13.3, and the other Party disputes whether such notice was proper, or the Parties disagree as to whether the breaching Party has cured such breach within the applicable time period under Section ‎13.3(a), or if the proposed corrective plan or the actions being taken to carry it out are not commercially practicable, then the issue of whether this Agreement has been terminated shall be resolved in accordance with ‎Article 14. If, as a result of such disputeresolution process, it is determined that the notice of termination was proper and that the breaching Party failed to cure such breach within the applicable time period under Section ‎13.3(a), then such termination shall be deemed to have been effective upon expiration of the time period provided in Section ‎13.3(b). If, as a result of such dispute resolution process, it is determined that the notice of termination was improper, or the proposed corrective plan or the actions being taken to carry it out are commercially practicable, then no termination shall have occurred and this Agreement shall be deemed to have remained in effect. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.4 | Consequences of Expiration or Termination |
|------|-------------------------------------------|

|   | (a) | Upon Expiry of the Term Pursuant to Section ‎13.1. Upon expiry of this Agreement pursuant to Section ‎13.1: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the licenses granted to UTC in ‎Article 2 shall remain in effect, but shall convert to fully paid, non-exclusive, sublicenseable and assignable licenses; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ii) | if Pluristem is continuing to Manufacture the Product for exploitation in Pluristem’s Domain, the Parties will discuss the possibility of Pluristem continuing to supply UTC with the Product in the Field under the Manufacturing and Supply Agreement or a replacement therefor; and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | all UTC Confidential Information shall be subject to Section ‎13.4(d). |
|--------|-------|------------------------------------------------------------------------------|

|   | (b) | Upon Termination of this Agreement by UTC Pursuant to Section ‎13.2, or by Pluristem Pursuant to Section ‎13.3. Upon termination of this Agreement by UTC pursuant to Section ‎13.2 or by Pluristem for material breach by UTC pursuant to Section ‎13.3: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the licenses granted to UTC under this Agreement shall terminate, and, after a wind-down period to be mutually agreed by the Parties, acting reasonably, UTC shall cease all Development and Commercialization activities; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | UTC shall deliver to Pluristem or destroy any and all promotional materials for the Product then in possession of UTC and/or its Affiliates. Pluristem shall have the right to use all aspects of UTC’s promotional materials in connection with the Commercialization of the Product in UTC’s Domain, other than the Corporate Marks of UTC; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | UTC hereby grants to Pluristem, under any and all UTC Patents and UTC Know-How, a fully paid, non-exclusive, sublicenseable and assignable license to Develop, Manufacture, use and Commercialize the Product in the Field in the Territory; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | UTC hereby grants to Pluristem full and exclusive ownership any Regulatory Filings and Regulatory Approvals obtained for the Product in the Field in the Territory, and, notwithstanding anything else in this Agreement, the full ownership of all Information Controlled by UTC arising from any clinical trials conducted as part of the UTC Development Activities, provided that Pluristem hereby grants UTC a fully paid, non-exclusive, sublicenseable and assignable license to use and exploit same for all purposes. Nothing in the foregoing assignment shall assign any rights to any Inventions arising from such activities or data, or the analysis of same by or on behalf of UTC; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | if UTC is then a party to any agreements with Third Party independent contractors for the Product in the Field, it shall cooperate with Pluristem to enable Pluristem to obtain if it wishes to in its sole discretion, the benefit of such agreements as necessary to enable Pluristem to exercise its rights under this ‎Article 13, including by assigning such agreements to Pluristem where reasonably practicable. Pluristem shall use Commercially Reasonable Efforts to accept the benefit of such agreements, including by way of assignment; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | all Pluristem Confidential Information shall be subject to Section ‎13.4(d). |
|--------|------|------------------------------------------------------------------------------------|

----

|   | (c) | Upon Termination of this Agreement by UTC Pursuant to Section ‎13.3 or ‎16.2(b). Upon Termination of this Agreement by UTC pursuant to Section ‎16.2(b), or by UTC for material breach of Pluristem pursuant to Section ‎13.3: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the consequences set out in Sections ‎13.4(b)(i), ‎13.4(b)(ii) and ‎13.4(b)(v) shall apply; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------|

|   | (ii) | all Confidential Information of both Parties shall be subject to Section ‎13.4(d). |
|--------|------|------------------------------------------------------------------------------------------|

|   | (d) | Return of Confidential Information. Upon the early termination of this Agreement, upon the request of the non-defaulting Party, the other Party will promptly return to the non-defaulting Party or destroy all material embodying Confidential Information in its possession or under its control, including all copies thereof, except for a single copy retained solely for the purpose of ensuring compliance with the terms of this Agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.5 | Survival |
|------|----------|

| 13.6 | No Waiver of Remedies |
|------|-----------------------|

  

| 14.1 | Disputes |
|------|----------|

|   | For Pluristem:   | Zami Aberman, Chief Executive Officer, or his direct report |
|--------|----------------------------|-------------------------------------------------------------|

|   | For UTC:   | Roger A. Jeffs, Ph.D., or his direct report |
|--------|----------------------|---------------------------------------------|

----

| 14.2 | Governing Law; Dispute Resolution |
|------|-----------------------------------|

|   | (a) | This Agreement shall be construed and interpreted in accordance with the laws of the State of New York, without regard to any conflicts of law principles that would provide for the application of the laws of another jurisdiction. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Unless otherwise agreed by the Parties, all actions and proceedings relating to Patents and non-disclosure, non-use and maintenance of Confidential Information shall be heard and determined in any New York State or federal court sitting in the City of New York, County of Manhattan, and the Parties hereby irrevocably submit to the exclusive jurisdiction of such courts in any such action or proceeding and irrevocably waive any defense of an inconvenient forum to the maintenance of any such action or proceeding. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Subject to Section ‎14.2(b), if the Parties are unable resolve a given dispute pursuant to Section ‎14.1, either Party may have the given dispute settled by binding arbitration in the manner described below. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | If a Party intends to begin an arbitration to resolve a dispute arising under this Agreement, such Party shall provide written notice (the “Arbitration Request”) to the other Party of such intention and the issues for resolution. From the date of the Arbitration Request and until such time as the dispute has become finally settled, the running of the time periods as to which Party must cure a breach of this Agreement becomes suspended as to the subject matter of the dispute. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Within ten (10) business days after the receipt of the Arbitration Request, the other Party may, by written notice, add additional issues for resolution. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Discovery shall be under the U.S. Federal Rules of Civil Procedure then in effect in the District Court for the Southern District of New York. The Arbitration shall be held in the City of New York, under the rules of the American Arbitration Association (“AAA”). The arbitration shall be conducted by three (3) arbitrators who are knowledgeable in the subject matter at issue in the dispute. One (1) arbitrator will be selected by UTC, one (1) arbitrator will be selected by Pluristem, and the third arbitrator will be selected by mutual agreement of the two (2) arbitrators selected by the Parties. The arbitrators may proceed to an award, notwithstanding the failure of either Party to participate in the proceedings. The arbitrators shall, within fifteen (15) calendar days after theconclusion of the arbitration hearing, issue a written award and statement of decision describing the essential findings and conclusions on which the award is based, including the calculation of any damages awarded. The arbitrators shall be authorized to grant any temporary, preliminary or permanent equitable remedy or relief the arbitrators deem just and equitable and within the scope of this Agreement, including an injunction or order for specific performance, or relief from the payment or other obligations hereunder or the escrow of any payments otherwise payable hereunder. The award of the arbitrators shall be the sole and exclusive remedy of the Parties. Judgment on the award rendered by the arbitrators may be enforced in any court having competent jurisdiction thereof, subject only to revocation on grounds of fraud or clear bias on the part of the arbitrators. Notwithstandinganything contained in this Section ‎14.2 to the contrary, each Party shall have the right to institute judicial proceedings against the other Party or anyone acting by, through or under such other Party, in order to enforce the instituting Party’s rights hereunder through specific performance, injunction or similar equitable relief. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (g) | Each Party shall bear its own attorneys’ fees, costs, and disbursements arising out of the arbitration, and shall pay an equal share of the fees and costs of the arbitrators; provided, however, that the arbitrators shall be authorized to determine whether a Party is the prevailing Party, and if so, to award to that prevailing Party reimbursement for its reasonable attorneys’ fees, costs and disbursements (including, for example, expert witness fees and expenses, photocopy charges and travel expenses), and/or the fees and costs of the arbitrators. Absent the filing of an application to correct or vacate the arbitration award as permitted by applicable law, each Party shall fully perform and satisfy the arbitration award within fifteen (15) days of the service of theaward. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | By agreeing to this binding arbitration provision, the Parties understand that they are waiving certain rights and protections which may otherwise be available if a dispute between the Parties were determined by litigation in court, including the right to seek or obtain certain types of damages precluded by this provision, the right to a jury trial, certain rights of appeal, and a right to invoke formal rules of procedure and evidence. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Subject to the rights of set-off between the Parties set out in this Section, or as may be otherwise ordered by the arbitrators, during the period while any dispute is unresolved and subject to arbitration as set forth above, Pluristem shall continue to be entitled to receive payment in a timely manner and in accordance with the terms of this Agreement. In the event that Pluristem is in default of any obligation to pay a Sum Certain to UTC under this Agreement or any other agreement, absent a Legitimate Dispute, UTC shall be entitled, in addition to any other remedies available to it, to set-off and deduct an amount equal to the Sum Certain owing by Pluristem to UTC at such time. For the purposes of this Section, a “Sum Certain” means an amount of money Pluristem is obligated topay UTC under this Agreement or any other agreement, and a “Legitimate Dispute” means a dispute regarding an obligation of Pluristem to pay UTC a sum of money under this Agreement or another agreement which Pluristem is legitimately disputing in good faith, and is pursuing a resolution to such dispute in good faith pursuant to arbitration as set forth above. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

  

| 15.1 | Consent of OCS |
|------|----------------|

| 15.2 | Satisfaction of Conditions; Effective Date |
|------|--------------------------------------------|

| 15.3 | Portions of Agreement Effective as of Execution Date |
|------|------------------------------------------------------|

| 15.4 | Conduct of Pluristem’s Business |
|------|---------------------------------------|

| 15.5 | Non-Performance of Condition |
|------|------------------------------|

----

| 15.6 | Nature of Conditions |
|------|----------------------|

  

| 16.1 | Entire Agreement |
|------|------------------|

| 16.2 | Assignment; Change of Control |
|------|-------------------------------|

|   | (a) | A Party may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the non-assigning Party, and any attempted assignment without such consent shall be null and void. Notwithstanding the foregoing, and subject to Section ‎16.2(b), either Party may assign this Agreement to (i) its successor-in-interest in connection with the transfer or sale of all or substantially all of the business of such Party, whether by acquisition, merger, sale of stock, sale of assets or similar transaction; or (ii) to an Affiliate, provided that the assigning Party shall remain liable and responsibleto the non-assigning Party hereto for the performance and observation by such Affiliate of all such duties and obligations. This Agreement shall be binding upon and, subject to the terms of this Section ‎16.2, inure to the benefit of a Party’s successors and permitted assigns. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Notwithstanding Section ‎16.2(a), in the event of a Change of Control, Pluristem shall provide a notice with respect to the consummation of such Change of Control forthwith following consummation of such event. If UTC gives Pluristem written notice of termination of this Agreement pursuant to this Section ‎16.2 within six months of the date of such notice, such notice shall terminate this Agreement effective on such notice with the consequences set out in Section ‎13.4(c). Any public announcement filed by Pluristem with the USSecurities and Exchange Commission shall constitute a notice for the purpose of this Section. If, at anytime following a Change of Control, Pluristem or any of its Affiliates shall, directly or indirectly, alone or in collaboration, partnership or any other form of engagement with any Third Party (including joint ownership or otherwise), Develop or Commercialize in any country in the Territory any product in the Field, then UTC shall have the right to terminate this Agreement by providing written notice to Pluristem, which termination shall thereupon take immediate effect with the consequences set out in Section ‎13.4(c). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | In the event Change of Control, Pluristem shall not be required to share or disclose any Information that becomes in the Control of Pluristem due to the event of Change of Control. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.3 | Amendments |
|------|------------|

| 16.4 | Bankruptcy |
|------|------------|

| 16.5 | Non-Waiver |
|------|------------|

| 16.6 | Severability |
|------|--------------|

| 16.7 | Notice |
|------|--------|

----

| 16.8 | Further Assurances |
|------|--------------------|

----

| 16.9 | Force Majeure |
|------|---------------|

| 16.10 | Independent Contractors |
|-------|-------------------------|

| 16.11 | Performance by Affiliates |
|-------|---------------------------|

| 16.12 | Guarantee of Certain Obligations |
|-------|----------------------------------|

|   | (a) | Pluristem Therapeutics Inc. (“Guarantor”) hereby unconditionally, absolutely and irrevocably guarantees, and covenants to UTC the full performance, observance and satisfaction of any and all obligations, duties and covenants of Pluristem under this Agreement and any agreements executed in connection herewith (the “Guaranteed Obligations). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | If any default shall be made in the performance, observance, satisfaction and payment of any of the Guaranteed Obligations, Guarantor covenants and agrees with UTC to perform, observe, satisfy and pay to UTC forthwith any and all of the Guaranteed Obligations in respect of which such default will have occurred and any interest that may be payable thereon pursuant hereto. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The obligations and liabilities of Guarantor hereunder shall not be subject to any counterclaim, set-off, deduction or defense based upon any claim Guarantor may have against Pluristem. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | Until there has been full performance, observance, satisfaction and payment of all of the Guaranteed Obligations, the rights of UTC and the obligations of Guarantor under this Section shall remain in full force and effect without regard to, and shall not be released, discharged or in any way affected or impaired, terminated or prejudiced by, the dissolution, winding-up or other cessation of existence of Pluristem, the amalgamation of Pluristem with another corporation, the appointment of a custodian, liquidator, receiver or trustee in respect of the assets or undertaking, in whole or in part, of Pluristem, any arrangement, bankruptcy, composition, insolvency, liquidation, readjustment, receivership, reorganization or other similar proceeding or occurrence relating to Pluristem, or anyassignment by Pluristem for the benefit of creditors. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Guarantor shall not take any action that may adversely affect UTC's license granted by Pluristem under this Agreement. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

| 16.13 | No Third Party Beneficiaries |
|-------|------------------------------|

| 16.14 | Counterparts |
|-------|--------------|

----

| Pluristem Ltd.    | United Therapeutics Corporation           |
|------------------------|------------------------------------------------|
|                   |                                           |
| By: /s/ Zami Aberman   | By: /s/ Roger A. Jeffs                         |
|                   |                                           |
| Name: Zami Aberman     | Name: Roger A. Jeffs, Ph.D.                    |
| Title: CEO   | Title: President & Chief Operating Officer |

----

| Country   | Earliest Priority     | Entry Date  | Filing DateApplication No.  | Issue DatePatent No. | Publication DatePublication No. |
|-----------|-----------------------|-------------|-----------------------------|----------------------|---------------------------------|
| USAPRO    |                  |        | 04-Feb-199960/118,789       |                 |                            |
| PCT  | 04-Feb-199960/118,789 |        | 04-Feb-2000PCT/US2000/02688 |                 | 10-Aug-2000WO00/46349           |
| USANP     | 04-Feb-199960/118,789 |        | 04-Feb-200009/890,401       | 28-Jun-20056,911,201 |                            |
| USANP     | 04-Feb-199960/118,789 | 02-Sep-2008 | 11-Apr-200512/230,566       |                 |                            |
| JapanNP   | 04-Feb-199960/118,789 | 06-Aug-2001 | 04-Feb-20002000-597409      | 04-Jun-20104523169   |                            |
| CanadaNP  | 04-Feb-199960/118,789 |        | 04-Feb-20002,360,664        |                 |                            |
| MexicoNP  | 04-Mar-199960/118,789 | 02-Aug-2001 | 04-Feb-2000PA/a/2001/007820 | 03-Dec-2008262724    |                            |

----

| MexicoDIV      | 04-Feb-199960/118,789 | 02-Dec-2008 | 04-Feb-2000MX/a/2008/015398 |                 |   |
|----------------|-----------------------|-------------|-----------------------------|----------------------|--------|
| AustraliaNP    | 04-Feb-199960/118,789 |        | 04-Feb-200022314            | 31-Jul-2003759719    |   |
| South AfricaNP | 04-Feb-199960/118,789 |        | 04-Feb-20002001/6483        |  2001/6483      |   |
| EuropeNP       | 04-Feb-199960/118,789 |        | 04-Feb-200000913340.6       | 16-Dec-20091147176   |   |
| EuropeDIV      | 04-Feb-199960/118,789 |        | 04-Feb-200010184233.4       |                 |   |
| EuropeDIV      | 04-Feb-199960/118,789 |        | 04-Feb-200009174118.1       |                 |   |
| USANP          | 04-Feb-199960/118,789 |        | 11-Apr-200511/102,623       | 16-Mar-20107,678,573 |   |
| USANP          | 04-Feb-199960/118,789 |        | 11-Apr-200511/102,625       | 19-May-20097,534,609 |   |

----

| IsraelNP             | 04-Feb-199960/118,789 |        | 04-Feb-2000144629     | 05-Aug-2009144629       |               |
|----------------------|-----------------------|-------------|-----------------------|-------------------------|--------------------|
| Russian FederationNP | 04-Feb-199960/118,789 |        | 04-Feb-20002001124399 | 27-Mar-20052249039      |               |
| New ZealandNP        | 04-Feb-199960/118,789 |        | 04-Feb-2000513303     | 07-Jul-2003513303       |               |
| IndiaNP              | 04-Feb-199960/118,789 |        | 04-Feb-20002001/01131 | 07-Oct-2007211173       |               |
| ChinaNP              | 04-Feb-199960/118,789 |        | 04-Feb-200000806007.X | 16-Jul-2008ZL00806007.X | 134640324-Feb-2002 |
| Hong KongNP          | 04-Mar-199960/118,789 | 24-Oct-2002 | 04-Feb-200002107728.2 |  HK1046154         |               |

----

| Country        | Earliest Priority     | Entry Date  | Filing DateApplication No.   | Issue DatePatent No. | Publication DatePublication No. |
|----------------|-----------------------|-------------|------------------------------|----------------------|---------------------------------|
| USAPRO         |                  |        | 23-Mar-200660/784,769        |                 |                            |
| USAPRO         |                  |        | 26-Sep-200660/847,088        |                 |                            |
| PCT       | 23-Mar-200660/784,769 |        | 22-Mar-2007PCT/IL2007/000380 |                 | 27-Sep-2007 WO/2007/108003      |
| USANP          | 22-Mar-200660/784,769 | 14-Oct-2009 | 22-Mar-200712/225,478        |                 |                            |
| MexicoNP       | 23-Mar-200660/784,769 | 22-Sep-2008 | 22-Mar-2007MX/a/2008/012085  |                 |                            |
| AustraliaNP    | 23-Mar-200660/784,769 |        | 22-Mar-20072007228341        |                 |                            |
| South AfricaNP | 23-Mar-200660/784,769 |        | 22-Mar-20072008/09038        |  2008/09038     |                            |
| EuropeNP       | 23-Mar-200660/784,769 |        | 22-Mar-200707713395.7        |                 | 10186115613-Oct-2010            |
| IsraelNP       | 23-Mar-200660/784,769 | 21-Sep-2008 | 22-Mar-2007194232            |                 |                            |
| ChinaNP        | 23-Mar-200660/784,769 |        | 22-Mar-2007200780018851.7    |                 | 10155815114-Oct-2009            |
| Hong KongNP    | 23-Mar-200660/784,769 | 08-Apr-2010 | 2-Mar-200710103472.9         |                 |                            |

----

| Russian FederationNP | 23-Mar-200660/784,769 |        | 22-Mar-20072008141894       |               |   |
|----------------------|-----------------------|-------------|-----------------------------|--------------------|--------|
| BrazilNP             | 23-Mar-200660/784,769 | 23-Sep-2008 | 22-Mar-2007PI0709349-7      |               |   |
| IndiaNP              | 23-Mar-200660/784,769 |        | 22-Mar-200702256/MUMNP/2008 |               |   |
| SingaporeNP          | 23-Mar-200660/784,769 |        | 22-Mar-2007200807095-5      |               |   |
| Korea, Republic ofNP | 23-Mar-200660/784,769 | 17-Oct-2008 | 22-Mar-20072008-7025460     |               |   |
| USACIP               | 22-Mar-200660/784,769 |        | 22-Mar-200713/069,130       |               |   |
| JapanNP              | 23-Mar-200660/784,769 | 24-Sep-2008 | 22-Mar-20072009-502327      | 04-Jun-20104523169 |   |
| CanadaNP             | 23-Mar-200660/784,769 | 18-Sep-2008 | 22-Mar-20072,646,384        |               |   |

----

| Country     | Earliest Priority     | Entry Date  | Filing DateApplication No.   | Issue DatePatent No. | Publication DatePublication No. |
|-------------|-----------------------|-------------|------------------------------|----------------------|---------------------------------|
| USAPRO      |                  |        | 19-Sep-200760/960,184        |                 |                            |
| PCT    |                  |        | 02-Sep-2008PCT/IL2008/001185 |                 | 26-Jun-2009WO/2009/037690       |
| IsraelNP    | 19-Sep-200760/960,184 | 17-Mar-2010 | 02-Sep-2008204566            |                 |                            |
| USANP       | 19-Sep-200760/960,184 | 18-Mar-2010 | 02-Sep-200812/678,756        |                 |                            |
| JapanNP     | 19-Sep-200760/960,184 | 19-Mar-2010 | 02-Sep-20082010-525491       |                 |                            |
| CanadaNP    | 19-Sep-200760/960,184 | 15-Mar-2010 | 02-Sep-20082,699,664         |                 |                            |
| MexicoNP    | 19-Sep-200760/960,184 | 18-Mar-2010 | 02-Sep-2008MX/a/2010/003019  |                 |                            |
| AustraliaNP | 19-Sep-200760/960,184 |        | 02-Sep-20082008300185        |                 |                            |

----

| South AfricaNP       | 19-Sep-200760/960,184 |        | 02-Sep-20082010/01929     | 23-Feb-20112010/01929 |   |
|----------------------|-----------------------|-------------|---------------------------|-----------------------|--------|
| EuropeNP             | 19-Sep-200760/960,184 |        | 02-Sep-200808789856.5     |                  |   |
| Hong KongNP          |                  |        | 29-Dec-201010112211.6     |                  |   |
| ChinaNP              | 19-Sep-200760/960,184 |        | 02-Sep-2008200880116645.4 |                  |   |
| Russian FederationNP | 19-Sep-200760/960,184 | 16-Mar-2010 | 02-Sep-20082010109698     |                  |   |
| BrazilNP             | 19-Sep-200760/960,184 | 19-Mar-2010 | 02-Sep-2008PI08159467     |                  |   |
| IndiaNP              | 19-Sep-200760/960,184 | 16-Mar-2010 | 02-Sep-2008519/MUMNP/2010 |                  |   |
| SingaporeNP          | 19-Sep-200760/960,184 |        | 02-Sep-2008201001822-4    |                  |   |
| Korea, Republic ofNP | 19-Sep-200760/960,184 | 15-Apr-2010 | 02-Sep-20082010-7008253   |                  |   |
| USANP                | 19-Sep-200760/960,184 |        |                      |                  |   |

----

| Country              | Earliest Priority     | Entry Date  | Filing DateApplication No.   | Issue DatePatent No. | Publication DatePublication No. |
|----------------------|-----------------------|-------------|------------------------------|----------------------|---------------------------------|
| USAPRO               |                  |        | 27-May-200861/071,944        |                 |                            |
| PCT             | 27-May-200861/071,944 |        | 26-May-2009PCT/IL2009/000527 |                 | 03-Dec-2009WO2009/144720        |
| ChinaNP              | 27-May-200861/071,944 |        | 26-May-2009200980129576.5    |                 |                            |
| Russian FederationNP | 27-May-200861/071,944 |        | 26-May-20092010153362        |                 |                            |
| AustraliaNP          | 27-May-200861/071,944 | 09-Dec-2010 | 26-May-20092009252722        |                 |                            |

----

| South AfricaNP | 27-May-200861/071,944 |        | 26-May-20092010/09030 |   |   |
|----------------|-----------------------|-------------|-----------------------|--------|--------|
| EuropeNP       | 27-May-200861/071,944 |        | 26-May-200909754339.1 |   |   |
| CanadaNP       | 27-May-200861/071,944 |        | 26-May-20092,725,637  |   |   |
| BrazilNP       | 27-May-200861/071,944 | 29-Nov-2010 | 26-May-2009PI09095411 |   |   |
| USANP          | 27-May-200861/071,944 | 01-Feb-2011 | 26-May-200912/994,603 |   |   |
| IsraelNP       | 27-May-200861/071,944 | 28-Nov-2010 | 26-May-2009209603     |   |   |

----

| Country   | Earliest Priority     | Entry Date  | Filing DateApplication No.   | Issue DatePatent No. | Publication DatePublication No. |
|-----------|-----------------------|-------------|------------------------------|----------------------|---------------------------------|
| USAPRO    |                  |        | 02-Sep-200861/136,374        |                 |                            |
| PCT  | 02-Sep-200861/136,374 |        | 01-Sep-2009PCT/IL2009/000844 |                 | 11-Mar-2010WO/2010/026573       |
| IsraelNP  | 02-Sep-200861/136,374 | 01-Mar-2011 | 01-Sep-2009211500            |                 |                            |
| EuropeNP  | 02-Sep-200861/136,374 |        | 01-Sep-200909737160.3        |                 |                            |
| USANP     | 02-Sep-200861/136,374 | 01-Mar-2011 | 01-Sep-200913/061,605        |                 |                            |

| Country   | Earliest Priority     | Entry Date | Filing DateApplication No.   | Issue DatePatent No. | Publication DatePublication No. |
|-----------|-----------------------|------------|------------------------------|----------------------|---------------------------------|
| USAPRO    |                  |       | 02-Sep-200861/136,375        |                 |                            |
| USAPRO    |                  |       | 23-Jan-200961/202,050        |                 |                            |
| PCT  | 02-Sep-200861/136,375 |       | 01-Sep-2009PCT/IL2009/000846 |                 | 11-Mar-2010WO2010/026575        |
| EuropeNP  | 02-Sep-200861/136,375 |       | 01-Sep-200909737162.9        |                 |                            |

----

| IndiaNP              | 02-Sep-200861/136,375 | 24-Mar-2011 | 01-Sep-20092200/DELNP/2011  |   |   |
|----------------------|-----------------------|-------------|-----------------------------|--------|--------|
| MexicoNP             | 02-Sep-200861/136,375 | 01-Mar-2011 | 01-Sep-2009MX/a/2011/002328 |   |   |
| SingaporeNP          | 02-Sep-200861/136,375 |        | 01-Sep-2009NYD              |   |   |
| ChinaNP              | 02-Sep-200861/136,375 | 29-Apr-2011 | 01-Sep-2009NYD              |   |   |
| AustraliaNP          | 02-Sep-200861/136,375 | 31-Mar-2011 | 01-Sep-20092009288781       |   |   |
| IsraelNP             | 02-Sep-200861/136,375 | 02-Mar-2011 | 01-Sep-2009211525           |   |   |
| BrazilNP             | 02-Sep-200861/136,375 | 03-Mar-2011 | 01-Sep-2009NYD              |   |   |
| Russian FederationNP | 02-Sep-200861/136,375 |        | 01-Sep-2009NYD              |   |   |
| South AfricaNP       | 02-Sep-200861/136,375 | 03-Mar-2011 | 01-Sep-20092011/01750       |   |   |
| CanadaNP             | 02-Sep-200861/136,375 | 01-Mar-2011 | 01-Sep-2009NYD              |   |   |
| USANP                | 02-Sep-200861/136,375 | 01-Mar-2011 | 01-Sep-200913/061,538       |   |   |

----

| USAPRO    |                  |        | 02-Sep-200861/136,377        |   |                      |
|-----------|-----------------------|-------------|------------------------------|--------|---------------------------|
| USAPRO    |                  |        | 23-Jan-200961/202,049        |   |                      |
| PCT  | 02-Sep-200861/136,377 |        | 01-Sep-2009PCT/IL2009/000845 |   | 11-Mar-2010WO/2010/026574 |
| EuropeNP  | 02-Sep-200861/136,377 |        | 01-Sep-200909737161.1        |   |                      |
| IsraelNP  | 02-Sep-200861/136,377 | 01-Mar-2011 | 01-Sep-2009211501            |   |                      |
| USANP     | 02-Sep-200861/136,377 | 01-Mar-2011 | 01-Sep-200913/061,656        |   |                      |

----

| Country   | Earliest Priority     | Entry Date | Filing Date Application No. | Issue DatePatent No. | Publication DatePublication No. |
|-----------|-----------------------|------------|----------------------------------|----------------------|---------------------------------|
| USA PRO   |                  |       | 06-Aug-201061/371,459            |                 |                            |
| PCT  | 30-Nov-200961/272,985 |       | 29-Nov-2010TBA                   |                 |                            |
| USA PRO   |                  |       | 30-Nov-200961/272,985            |                 |                            |

| Country   | Earliest Priority     | Entry Date | Filing DateApplication No. | Issue DatePatent No. | Publication DatePublication No. |
|-----------|-----------------------|------------|----------------------------|----------------------|---------------------------------|
| USAPRO    |                  |       | 23-Apr-201061/327,330      |                 |                            |
| Country   | Earliest Priority     | Entry Date | Filing DateApplication No. | Issue DatePatent No. | Publication DatePublication No. |
| PCT  | 23-Apr-201061/327,330 |       | 21-Apr-2011NYD             |                 |                            |

----

| Country | Earliest Priority | Entry Date | Filing Date Application No. | Issue DatePatent No. | Publication DatePublication No. |
|---------|-------------------|------------|----------------------------------|----------------------|---------------------------------|
| USAPRO  |              |       | 15-Apr-201161/475,761            |                 |                            |

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| A.  | Background |
|----------|------------|

| B.  | General Considerations |
|----------|------------------------|

| C.  | Adverse Event Reporting and Exchange |
|----------|--------------------------------------|

| D.  | Risk Management |
|----------|-----------------|

| E.  | Periodic Reports |
|----------|------------------|

| F.  | Regulatory Inquiry from Health Authorities |
|----------|--------------------------------------------|

| G.  | Regulatory Inspections |
|----------|------------------------|

| H.  | Dispute Resolution |
|----------|--------------------|

| I.  | Safety Agreement Termination |
|----------|------------------------------|

----

| 1. | Unless otherwise specified in the Agreement, this Exhibit sets forth material terms and conditions which shall be incorporated into a Manufacturing and Supply Agreement to be negotiated and entered into by the Parties for the Product in accordance with Section ‎6.2 of the Agreement. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Capitalized terms used but not defined in this term sheet shall have the meanings assigned to them in the Agreement. |
|----|----------------------------------------------------------------------------------------------------------------------|

| 3. | Pluristem will sell, and UTC will buy, UTC’s requirements of Product for commercial supply. |
|----|---------------------------------------------------------------------------------------------------|

| 4. | Supply of Product would be provided in the form of the supply of PLX in accordance with the Specifications, which UTC may finish or have finished by a Representative. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | The Manufacturing and Supply Agreement will set forth a forecast procedure for Product to be provided thereunder. The forecast procedure will contemplate UTC’s needs for reasonable flexibility in forecasting and Pluristem’s needs for sufficient information and certainty to reasonably enable it to timely supply UTC. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Orders will be placed at a reasonable in advance, given the needs for the Product, the shelf-life of the Product, and the time necessary to obtain raw materials and manufacture Product. UTC will only order Product as it reasonably anticipates it will need for its purposes. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | The Parties shall adopt a reasonable procedure for arriving at binding commitments for the supply and purchase of the Product. |
|----|--------------------------------------------------------------------------------------------------------------------------------|

| 8. | Pluristem will ensure all such Product complies with the Specifications. The Manufacturing and Supply Agreement shall specify the remaining shelf-life upon delivery of Product. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | The Price of all Product shall be Cost of Goods Sold plus **THE CONFIDENTIAL PORTION HAS BEEN SO OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND HAS BEEN FILED SEPARATELY WITH THE COMMISSION.**. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | In the event of any shortage of Product, Pluristem will allocate product such in accordance with the Agreement. |
|-----|-----------------------------------------------------------------------------------------------------------------|

| 11. | Any changes to the Product in the Field or its Manufacture, including those specific to a particular indication or Applicable Laws or the requirements of any Regulatory Authority shall be agreed to in writing between the Parties, acting reasonably. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12. | Pluristem will be responsible for obtaining and maintaining all necessary approvals, licenses and documentation related to the export of Product, including all necessary approvals and documentation related to the master file and the accreditation of manufacturers. Each Party shall provide copies thereof to the other as requested at least 60 days prior to the first scheduled delivery of Product, such provision to be commensurate with the Agreement. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13. | UTC will have a reasonable period to test Product for conformance with the Specifications. In the event of any disagreement as to compliance with the Specifications upon delivery, such matter will be determined by an independent third party. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 14. | Pluristem will have sole regulatory responsibility for all manufacturing matters and will cooperate with UTC with respect thereto. |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

| 15. | Confidentiality provisions will be included commensurate with those contained in the Agreement. |
|-----|-------------------------------------------------------------------------------------------------|

| 16. | Concurrently with the negotiation of the Manufacturing and Supply Agreement, the parties will develop and agree upon a quality agreement governing the quality and specifications of Product, which agreement shall form a part of the Manufacturing and Supply Agreement and be subject to settlement of its terms in the same manner as the Manufacturing and Supply Agreement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17. | The insurance and indemnity provisions shall be commensurate with the Agreement. |
|-----|----------------------------------------------------------------------------------|

| 18. | The term and termination provisions shall be commensurate with Agreement. |
|-----|---------------------------------------------------------------------------|

| 19. | The Manufacturing and Supply Agreement shall contain other customary and appropriate provisions including provisions for representations and warranties, and the like, and, subject to the specifics set out in this Exhibit, all such terms to be commercially reasonable and customary for supply agreements in the life sciences context. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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