Document:

Mabcure Inc.: Exhibit 10.2 - Filed by newsfilecorp.com

Exhibit 10.2 

LICENSE AGREEMENT 

  (the “Agreement”) 

          THIS
AGREEMENT, is entered into this 10th day of November, 2011, by and between
MabCure Inc., a Nevada corporation with a principal place of business at
760 Parkside Avenue, Brooklyn, NY (“MabCure”), and Biotech Investment
Corp., a Nevada corporation with a principal place of business at Sharabi Street
No. 6, Tel Aviv, 65147 Israel (“NewCo”).

          WHEREAS,
MabCure is the owner of certain assets and all intellectual rights in and to (a)
certain hybridoma clones producing antibodies against prostate cancer (the
“MabCure Hybridomas”), and (b) certain developed anti-PROSCA monoclonal
antibodies against prostate cancer (the “Licensed Products”, and together with
the “MabCure Hybridomas”, the “Technology”); and 

          WHEREAS,
NewCo is interested in obtaining from MabCure an exclusive, worldwide license to
the MabCure Hybridomas and to the Licensed Products for use in the field of
diagnosis, imaging, and therapy of prostate cancer (the “Licensed Field”);

          NOW,
THEREFORE, in consideration of the premises and the mutual covenants
contained herein, and other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties hereto agree as follows: 

1.      The License 

          1.1      Grant
of License. Subject to the terms and conditions of this Agreement, MabCure
hereby grants NewCo within the Licensed Field an exclusive, worldwide,
transferable, royalty-bearing license to conduct (whether directly or
indirectly) research, development, and commercialization efforts relating to (a)
the use of MabCure Hybridomas solely in relation to the production of Licensed
Products; and (b) the Licensed Products (the “License”).

          1.2     
Right to Sub-License. Subject to Section 2.2 below, the License includes
the right to grant sublicenses to distributors and resellers to market and sell
the Licensed Products solely for use in the Licensed Field, subject to all such
sub-licensees complying with the terms and conditions of the License, including
all restrictions thereto. No other sub-licenses are allowed. The sub-licensees
shall not have a right to sub-license the Licensed Products. Licensee shall,
within ten (10) days of granting any sublicense, notify MabCure of the grant of
such sublicense and the material terms of such sublicense agreements. Each such
sublicense agreement shall be consistent with the terms and conditions of this
Agreement. 

          1.3     
Reservation of Rights. The License granted herein is subject to an
express reservation of rights by MabCure to make, have made, use, sell and
distribute products outside the Licensed Field. In addition, for the avoidance
of any doubt, MabCure shall retain the right to use the Technology in
non-commercial research and development projects within the Licensed Field. If,
during the term of this Agreement, MabCure obtains (whether via its own research
and development efforts, via acquisition, via license or otherwise) improvements
to the Technology or other technologies that could be useful to NewCo in its
exercise of the License (collectively, “MabCure Improvements”),
MabCure shall promptly provide notice to NewCo that it has obtained MabCure
Improvements, and thereafter the MabCure Improvements shall form part of the
Technology licensed hereunder.

2.      Intellectual
Property 

          2.1      Ownership
by MabCure. The MabCure Hybridomas and the Licensed Products are proprietary
and confidential to MabCure, and MabCure shall retain all right, title, and
interest in and to all intellectual property rights in the MabCure Hybridomas
and the Licensed Products, subject only to the rights and licenses expressly
granted by MabCure hereunder. 

          2.2     
Restrictions. NewCo shall not use in any manner whatsoever the MabCure
Hyrbridomas or the Licensed Products other than in accordance with the License.
NewCo shall not transfer, sell, convey, or make any disposition (including by
lease, license, exchange, or pledge) of the MabCure Hybridomas without the
express prior written consent of MabCure, which consent shall not be
unreasonably withheld if NewCo proposes to transfer the MabCure Hybridomas as
part of its sub-licensing agreement with a strategic distributor or reseller.

          2.3      Improvements
to the Licensed Products. Without derogating from the ownership rights which
MabCure holds in the Licensed Products, all right, title, and interest to all
modifications, enhancements, and improvements to the Licensed Products created
or developed by NewCo, or on behalf of NewCo by MabCure or any third party under
contract with NewCo, (the “NewCo Improvements”), shall be owned by NewCo.

          Upon
NewCo’s acquisition of NewCo Improvements (howsoever acquired) NewCo shall
promptly provide notice to MabCure of the nature of the improvement. In the
event that MabCure provides a notice to NewCo that it is interested in the NewCo
Improvements within one (1) month of the aforementioned notice, the parties
shall use reasonable commercial efforts to negotiate a license agreement between
them that would: (a) permit MabCure the right to use NewCo Improvements outside
of the Licensed Field; and (b) require NewCo to restrict its use of NewCo
Improvements to the Licensed Field. To the extent that such a license is not
concluded and executed by the parties within five (5) months of MabCure’s
provision of notice to NewCo under this paragraph, NewCo shall not be restricted
in any way from using, commercializing or otherwise divesting itself of the
NewCo Improvements.

3.      Obligations of the
parties 

          3.1      Provision
of Clones. Upon request by NewCo, MabCure shall provide NewCo with the ten
proprietary MabCure Hybridomas producing anti-PROSCA-Mabs listed in Annex A
attached hereto, solely to enable NewCo to produce the Licensed Products (the
“Clones”). In the event that one or more Clones, listed in Annex A attached
hereto, does not produce the anti-PROSCA-Mabs, then upon notice by NewCo,
MabCure shall replace such non-producing Clones at no cost to NewCo. In
addition, upon request, MabCure shall provide NewCo with any existing
pre-clinical data and all know-how relating to the use and application of the
Technology in conjunction with prostate cancer. MabCure does not provide any
assurance, however, that these MabCure Hybridomas will produce a
commercializable product. In addition, MabCure will assist NewCo, upon request,
in the future provision or production of new or additional MabCure
Hybridomas, if necessary. All such support shall be paid for at rates and
pursuant to terms to be agreed upon by the parties in accordance with the terms
of Section 4.4 below. The delivery of new Clones or related services will be the
subject of a separate agreement between the parties. 

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          3.2     
Commercial Diligence. NewCo will use commercially reasonable best efforts
to diligently develop, validate, and market and/or sublicense the Licensed
Products to a third party which has the capability to market and sell the
Licensed Products to end-users.

          3.3     
Development by MabCure. NewCo, at its discretion, will decide whether to
contract with MabCure for the development of a PROSCA Diagnostic Assay based on
or embodying the Licensed Products. To facilitate that decision, MabCure will
provide NewCo with an estimated 12-month budget for such development work,
within thirty (30) days of the Effective Date.

          3.4      Meetings.
MabCure and NewCo shall meet on a quarterly basis to discuss NewCo’s progress,
the strategic relationship, and other matters relating to this Agreement. These
meetings can be held in person, by conference call or videoconference.

          3.5     
Use of Proceeds. With respect to the License Fee (described in Section
4.1, below) MabCure agrees that it will only use and apply the funds as
follows:

                    (a)
$350,000 thereof shall be used to pay for operating costs and expenses to enable
MabCure to conduct clinical trials and research and development relating to
ovarian cancer; and 

                    (b)
$150,000 thereof shall be used for the payment of MabCure’s existing
indebtedness to the exclusion of payment or settlement of pre-existing claims by
former employees, former consultants or former professional service
providers.

                    MabCure
agrees to make available to NewCo such supporting documentation as NewCo may
reasonably request from time-to-time to confirm MabCure’s compliance with its
obligations under this Section 3.5. 

4.      License Fee and
Royalties 

          4.1      License
Fee. Concurrently with the signing of this Agreement, NewCo shall pay
MabCure a one-time license fee in the amount of five hundred thousand U.S.
dollars (US$500,000) (the “License Fee”).

          4.2     
Royalties. NewCo shall pay MabCure a royalty on the sale or sub-licensing
of any Licensed Products and/or products based on or embodying the Licensed
Products, in an amount equal to 12.5% of any and all amounts received, including
without limitation (i) upfront and milestone payments, (ii) running royalties,
and (iii) fees for critical raw materials (including hybridoma cells for
antibody production (subject to MabCure’s consent pursuant to Section 2.2
above), anti-PROSCA-Mabs, and PROSCA antigens).

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          4.3     
Royalty Reports and Payment. On or before the 20th day of each
January, May and September during the term, NewCo shall deliver to MabCure the
following: 

                    (a)      A
royalty report setting forth for the preceding four months (a) the identity and
quantity of any Licensed Products manufactured, distributed, sub-licensed, sold,
or provided during such four month period, (b) NewCo’s gross revenues realized
from sale and sub-licensing activities during such four month period, and (c)
the royalties due to MabCure, (the “Royalty Report”). The Royalty Report shall
include an itemization (i) of all units of Licensed Products, critical raw
materials, and products based on or embodying the Licensed Products
manufactured, distributed, sub-licensed, sold, and/or provided, whether by NewCo
or by its sub-licensees, and whether or not NewCo has in fact received any
payment for such provision/use and whether or not royalties are due for such
provision/use, and (ii) of all sub-licensing fees and payments received; and

                    (b)     
Payment in full of all amounts due to MabCure under this Agreement for the
preceding four month period. Each royalty payment shall be payable in United
States currency and shall be remitted by wire transfer to MabCure.

          4.4      Development
Services. If NewCo requests that MabCure provide development and/or support
services in connection with the further development of Licensed Products for use
in the Licensed Field, then all such support shall be paid for at rates and
pursuant to terms to be agreed upon by the parties.

          4.5     
Taxes. Each party shall be responsible for paying any applicable sales
tax, value added tax, gross receipts tax, excise tax, or any similar tax which
it is required by law to pay, including taxes imposed on any payments to MabCure
under this Agreement. Subject to the foregoing, NewCo shall be entitled to
withhold from any amounts payable to MabCure hereunder any amount required by
the tax legislation of any governmental authority, and to remit said amounts to
the relevant governmental authority (if any). NewCo will provide MabCure with
such information and documentation concerning taxes withheld and the payments
made by NewCo under this Agreement as is reasonably requested by MabCure for the
purpose of completing any filings required to be made by MabCure with the
relevant governmental authority.

          4.6     
Late Payment. Any amounts payable by NewCo hereunder which remain unpaid
after the due date shall be subject to a late charge equal to one and one-half
percent (1.5%) per month from the due date until such amount is paid. 

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5.      Affirmative Covenants
of NewCo 

          5.1     
Share Issuance. Concurrently with the establishment of NewCo, NewCo shall
issue MabCure such number of shares in NewCo that constitute 15% of the share
capital of NewCo on a fully-diluted basis, which percentage shall not be diluted
by the Initial Financing (as defined in Section 5.2 below). 

          5.2      Initial
Financing. NewCo shall make commercially reasonable best efforts to raise
initial financing of US$1,000,000 for the development of the Licensed Products
(the “Initial Financing”) within twelve (12) months of the signing of this
Agreement. 

          5.3     
Anti-Dilution. MabCure’s shareholding in Newco shall not be diluted by
the Initial Financing. Until NewCo has raised the full amount of the Initial
Financing, upon each issuance by NewCo of any additional securities of any kind,
whether or not for consideration, NewCo shall issue to MabCure, concurrently
with such issuance, additional shares of NewCo at their nominal value such that
MabCure’s shareholding in NewCo shall remain at 15% of the issued and
outstanding shares of NewCo on a fully diluted basis. This provision shall not
apply once the Initial Financing has been raised. 

          5.4     
Significant Transactions. As long as this Agreement is in effect, the
following actions with respect to NewCo ("Significant Transactions") will
require the written consent of MabCure: any amendment to the certificate of
incorporation (“COI”) or by-laws of NewCo that would adversely affect the rights
of MabCure as set forth in this Article 5. 

          5.5     
Pre-emptive Right. During the term of this Agreement, so long as MabCure
holds at least 5% of the outstanding share capital of NewCo, MabCure shall be
entitled to a pre-emptive right to purchase its pro rata share in NewCo with
respect to future issuances by NewCo of any new securities, on the terms and
conditions of Annex B attached hereto. However, this section shall not pertain
to the Initial Financing. 

          5.6     
Restrictions on Securities. MabCure acknowledges and agrees: 

                    
(a)      none of shares of common stock of NewCo
to be issued to MabCure pursuant to this Agreement (“NewCo Shares”) have
been registered under the Securities Act of 1933 or the securities laws of any
state of the United States, that such NewCo Shares may not be offered or sold,
directly or indirectly, in the United States unless registered in accordance
with federal securities laws and all applicable state securities laws or
exemptions from such registration requirements are available; and NewCo has no
obligation or present intention of filing a registration statement or prospectus
under the Securities Act of 1933, any state securities laws or any other
applicable securities laws in respect of any of the NewCo Shares; 

                    (b)      the
NewCo Shares will be subject to certain resale restrictions imposed under
applicable securities laws and the rules of regulatory bodies having
jurisdiction, and MabCure agrees to comply with such restrictions;

                    (c)      it
has been advised to consult its own legal advisors with respect to applicable
resale and transfer restrictions, that it is solely responsible for complying
with such restrictions; 

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                    (d)      the
certificates representing the NewCo Shares issued to MabCure hereunder will be
endorsed with the legends contemplated by the MabCure Representation Letter in
the form attached as Annex C, or such other terms as may be necessary dependent
upon applicable securities laws, as NewCo shall advise MabCure from
time-to-time; and 

                    (e)     
NewCo will make a notation on its records or give instructions to the transfer
agent of the NewCo Shares, if any, in order to implement the restrictions on
transfer set out in applicable securities laws. 

Additionally, MabCure shall complete and execute the MabCure
Representation Letter in the form attached as Annex C (or such other letter as
may be reasonably necessary, dependent upon applicable securities laws, as NewCo
shall advise MabCure from time-to-time) and, upon execution and delivery by
MabCure, the MabCure Representation Letter (or other letter, as the case may be)
shall be incorporated into and form part of this Agreement. 

          5.7      Restriction
on Sale and Right of First Refusal. MabCure and its representatives,
successors and assigns, shall not sell or transfer all or any portion of the
shares of Newco held by them for a period of two (2) years from the date hereof
unless such sale is to Newco. Thereafter, MabCure and its representatives,
successors and assigns shall not sell or transfer all or any portion of the
shares of Newco held by them unless: 

                    (a)      MabCure
delivers a written notice to Newco, stating the price, terms, and conditions of
the proposed sale or transfer of the shares to be sold (“Shares for Sale”) or
transferred, and the identity of the proposed transferee ("Seller's Notice").
Within 30 days after receipt of the Seller's Notice, Newco shall have the right
to purchase all or any portion of the Shares so offered at the price and on the
terms and conditions stated in the Seller's Notice. 

                    (b)     
If none or only a part of the Shares for Sale are purchased by Newco upon the
expiry of the 30 days after receipt of the Seller’s Notice, then MabCure may
dispose of the remaining Shares for Sale to any person or persons but only
within a period of 90 days from the date of the Seller's Notice. However,
MabCure shall not sell or transfer any of the Shares for Sale at a lower price
or on terms more favorable to the purchaser or transferee than those specified
in the Seller's Notice. After the 90 day period, the procedure for first
offering to Newco shall again apply. 

6.       Right of First
Refusal (License). 

          MabCure
hereby grants NewCo a right of first refusal to obtain a license to MabCure’s
(a) certain hybridoma clones producing antibodies against Melanoma; and (b)
certain developed antibodies against Melanoma (the “Mela Products”) Before
licensing the Mela Products to any third party (whether at the behest of the
third party or on the initiative of MabCure), MabCure shall first offer NewCo
the option to obtain such a license based on the same commercial terms being
offered to such third party. In the event that NewCo does not consent to the
terms and conditions presented by MabCure within a period of fourteen (14) days
of presentation by MabCure, then within sixty (60) days thereof MabCure may
freely provide such third party with a license to the Mela Products on
commercial terms no less favourable to MabCure. This right of first refusal
shall not apply if the third party is a pharmaceutical or diagnostic company
whose minimum annual revenue for the last fiscal year preceding that in which the license is proposed is in excess
of USD one million dollars ($1,000,000). 

- 6 -

7.      Regulatory Matters

          7.1      Regulatory
Approvals. NewCo, at its sole cost and expense, shall obtain and maintain
all necessary regulatory approvals to operate its business, to perform clinical
trials, and to develop, market, and sell the Licensed Products in the Licensed
Field. NewCo shall be responsible for preparing and filing any and all
regulatory filings and compliance documents for the registration and regulatory
approval of any Licensed Products, including all supplemental submissions and
all filings necessary for the marketing and sale of any Licensed Products in the
applicable markets. To the extent that MabCure performs research and/or
development with respect to Licensed Products, MabCure will provide all
necessary documentation required for the regulatory approval thereof, at no cost
to NewCo. 

          7.2     
Ownership of Approvals. All documentation filed with regulatory
authorities shall be submitted in the name of NewCo and/or its sub-licensees. At
MabCure’s request and subject to applicable laws, upon termination of this
Agreement all such documentation shall be provided to MabCure and shall become
MabCure’s property.

          7.3      Product
Packaging and Labeling. All packaging containing any Licensed Products sold
or provided by NewCo and/or its sub-licensees shall be prepared in accordance
with each country’s applicable laws and regulations.

8.      Audit Rights 

          Subject
to NewCo’s confidentiality obligations and policies, MabCure and/or its agents
may, with thirty (30) days prior written notice, audit NewCo’s records,
including relevant agreements, to verify NewCo’s compliance with the provisions
of this Agreement. If an audit indicates an underpayment of five percent (5%) or
more of any amounts due hereunder or other non-monetary noncompliance, NewCo
will promptly reimburse MabCure for the reasonable cost of the audit. Such
rights will remain in effect through a period ending one year from the
termination of this Agreement. 

9.      Insurance 

          9.1      Each
party shall carry appropriate and commercially reasonable amounts of insurance
adequate for the activities detailed in this Agreement, as well as sufficient
levels of all legally mandated insurance, if any. 

          9.2      Without
derogating from the foregoing, prior to initial human testing or first
commercial sale of any Licensed Products, as the case may be, in any particular
country, NewCo shall establish and maintain, in each country in which NewCo, an
affiliate or sub-licensees shall test or sell or provide a Licensed Products,
product liability or other appropriate insurance coverage in the minimum amount
of five million dollars ($5,000,000) per claim and will annually present
evidence to MabCure that such coverage is being maintained. Upon MabCure’s
written request, NewCo will furnish MabCure with a Certificate of Insurance of
each product liability insurance policy obtained. If such product liability
insurance is underwritten on a ‘claims made’ basis, NewCo agrees that any change
in underwriters during the term will require the purchase of
‘prior acts’ coverage to ensure that coverage will be continuous throughout the
term of this Agreement. 

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10.      Confidential
Information 

          10.1      Each
party hereby acknowledges that it may be exposed to confidential and proprietary
information of the other party including, without limitation, technical and
scientific information (including functional and technical specifications,
designs, drawings, analysis, research, processes, algorithms, methods, ideas,
"know how" and the like); business information (business collaborators and
clientele, sales and marketing research, materials, plans, accounting and
financial information, personnel records and the like); trade secrets; and other
information designated as confidential expressly or by the circumstances in
which it is provided, (the “Confidential Information”). Confidential Information
does not include (i) information already known or independently developed by the
recipient without reference to the Confidential Information; (ii) information in
the public domain through no wrongful act of the recipient, or (iii) information
received by the recipient from a third party who was free to disclose it.

          10.2     
With respect to the other party's Confidential Information, except as expressly
contemplated herein, the recipient hereby agrees that it shall not use,
commercialize or disclose such Confidential Information to any person or entity,
except to its own employees having a "need to know" (and who are themselves
bound by similar nondisclosure restrictions), and to such other recipients as
the disclosing party may approve in writing; provided, that all such recipients
shall have first executed a confidentiality agreement in a form acceptable to
the owner of such information. No party may disassemble, de-compile, or reverse
engineer any other party’s Confidential Information and any information obtained
in violation of this provision shall be deemed Confidential Information assigned
to and owned exclusively by the owner of the original material. Each party shall
use at least the same degree of care in safeguarding the other party's
Confidential Information as it uses in safeguarding its own confidential
information. No party, nor any recipient, may alter or remove from any item or
associated documentation owned or provided by any party hereunder, any
proprietary, copyright, trademark, or trade secret legend.

          10.3     
Each party acknowledges that the unauthorized use, commercialization or
disclosure of the other party's Confidential Information would cause irreparable
harm to such other party. The parties acknowledge that remedies at law may be
inadequate to redress the actual or threatened unauthorized use,
commercialization, or disclosure of such Confidential Information and that the
foregoing restrictions may be enforced by temporary and permanent injunctive
relief without necessity of posting bond. In addition, any award of injunctive
relief shall include recovery of associated costs and expenses (including
reasonable attorneys' fees). 

          10.4      Clinical
Data. MabCure shall proceed with the planned clinical study in Belgium of
the Licensed Products (the “Study”), but NewCo shall own all data generated from
the Study. Provided that NewCo has received and provided express written
approval of the Study protocol and has received all other information about the
Study which it may reasonably request, NewCo shall reimburse MabCure for the
costs incurred by MabCure in connection with such study pursuant to Section 10.5
below (but shall not be subject to a separate agreement between the
parties).

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          10.5     
New Studies. In the event MabCure conducts a clinical study at the
request of NewCo, NewCo shall reimburse MabCure for the cost of such clinical
study. Such arrangement shall be the subject of a separate agreement between the
parties.

          10.6      Publicity.
Except as required by law, neither party will issue any public announcement, or
use the other party’s name, or reveal the terms of this Agreement, without the
prior written consent of the other party.

          10.7     
Survival. The provisions of this Section 10 ("Confidential Information")
shall survive termination of this Agreement. 

11.      Indemnification.

          11.1      MabCure’s
Duty to Indemnify. MabCure shall defend any claim or lawsuit by a third
party (a “Claim”) against NewCo to the extent such Claim alleges that the
MabCure Hybridomas or the Licensed Products infringe any patent, copyright, or
trademark or misappropriates a trade secret of a third party, and will indemnify
NewCo against all costs, damages, losses, liabilities and expenses (including
attorneys' fees and costs) (“Damages”) awarded against NewCo by a court of
competent jurisdiction, or agreed to in a written settlement agreement signed by
MabCure, arising out of such Claim. MabCure shall have no indemnification
obligation or other liability for any Claim of infringement arising from (a) use
of the MabCure Hybridomas or the Licensed Products other than in accordance with
this Agreement; (b) alteration or modification of the Licensed Products, or
combination of the Licensed Products with any other products, services, or
materials, if the Licensed Products would not have been infringing without such
alteration, modification, or combination, or (c) any third party products,
services, or materials.

          11.2     
Enjoinment of Use. Provided Section 1.1 of this Agreement has not been
terminated, if a final judgment or administrative ruling is obtained enjoining
or charging for the use of the MabCure Hybridomas and/or the Licensed Products
as a result of a violation or infringement of a patent, copyright, or other
proprietary right, MabCure shall, at its option and at its expense, either: (a)
procure the right to continue using the MabCure Hybridomas and/or the Licensed
Products (as applicable); or (b) replace or modify them so they becomes
non-infringing. If none of the aforementioned options has been effected by
MabCure to the reasonable satisfaction of NewCo within six (6) months of such
judgment or ruling, this Agreement will be deemed to be terminated and MabCure
shall refund to NewCo the License Fee paid by NewCo, within three (3) months of
the deemed termination date. If MabCure fails to refund the License Fee as
provided above, such failure shall provide NewCo with the option (the “Option”)
to purchase all the Technology (including all Confidential Information and
intellectual property rights thereto) together with all license agreements and
other contractual obligations of MabCure relating in any way to the Technology
(the “Related Contracts” and together with the Technology, the “Purchased
Assets”), free and clear of all encumbrances from MabCure (the “Option”) which
may be exercised by NewCo within ten (10) days of the three (3) month
anniversary of the termination date by giving written notice (“Notice of
Exercise”) to MabCure. The Purchase Price for the Purchased Assets shall be USD
one hundred thousand dollars ($100,000). 

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Upon the exercise of the Option in accordance with the previous
paragraph, a binding contract of purchase and sale between the parties will be
deemed to come into existence on the terms set out below: 

          (a)      the
closing of the purchase and sale transaction (the “Closing”) will occur on the
tenth (10th) business day after the issuance of the Notice of
Exercise, or such other date that the parties may agree to in writing; 

          (b)     
the Purchase Price will be paid by NewCo to MabCure at the Closing by cash, bank
draft or cheque; 

          (c)     
each party will at the Closing and from time to time thereafter execute and
deliver such documents, instruments, and further assurances (including without
limitation an assignment by MabCure to NewCo of all right, title and interest
in, to and associated with the Purchased Assets) and take such action as the
other party may reasonably require in order to give effect to such transaction;

          (d)      any
applicable sales and transfer taxes and registration and transfer fees will be
borne by MabCure;

          (e)     
time will be of the essence; and 

          (f)     
from and after the Closing, the parties will continue to be bound by the
provisions hereof relating to such purchase and sale transaction, but subject
thereto and to Section 13.4, will cease to have any rights, benefits,
liabilities or obligations under this Agreement and this Agreement shall
terminate and be of no further force or effect. 

          11.3     
NewCo’s Duty to Indemnify. Subject to Section 11.1, NewCo shall defend
any Claim against MabCure: (i) arising from or incidental to any product
liability claim relating to the Licensed Products or products based on or
embodying the Licensed Products; and/or (ii) alleging that the Licensed Products
or products based on or embodying the Licensed Products infringe any patent,
copyright, or trademark or misappropriate a trade secret of a third party; but
only to the extent that such infringement Claim arises either from the
infringement by NewCo’s contribution to the Licensed Products, or from NewCo’s
alteration or modification of the Licensed Products, or from NewCo’s combination
of the Licensed Products with any other products, services, or materials, if the
Licensed Products would not be infringing without such contribution, alteration,
modification, or combination. NewCo will indemnify MabCure (and its directors,
employees and agents) against all Damages awarded against MabCure or agreed to
in a written settlement agreement signed by NewCo arising out of such Claim.

          11.4     
General Indemnity. Each party shall defend and indemnify the other party
and its employees, officers, directors and agents against all Damages for Claims
(a) for bodily injury, death, or damage to real property or tangible physical
equipment, proximately caused by the indemnifying party in the course of
performing this Agreement, or (b) arising out of the indemnifying party’s gross
negligence or willful misconduct. 

          11.5      Conditions
to Indemnification. The obligations set forth in this Section shall apply
only if (i) the indemnified party promptly notifies the indemnifying party in
writing of a Claim; (ii) the indemnified party provides the indemnifying
party with reasonable assistance requested by the indemnifying party, at the
indemnifying party’s expense, for the defense and settlement, if applicable, of
any Claim; and (iii) the indemnified party provides the indemnifying party with
the exclusive right to control and the authority to settle any Claim.

- 10 -

          11.6     
Sole and Exclusive Remedies. THE RIGHTS AND OBLIGATIONS IN THIS SECTION
11 ARE THE INDEMNIFYING PARTY’S SOLE AND EXCLUSIVE OBLIGATIONS, AND THE
INDEMNIFIED PARTY’S SOLE AND EXCLUSIVE REMEDIES, WITH RESPECT TO A VIOLATION OR
INFRINGEMENT OF PATENTS, COPYRIGHTS, OR THE PROPRIETARY RIGHTS OF THIRD
PARTIES.

12.      Limitation of
Liability 

          12.1     
IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INCIDENTAL,
CONSEQUENTIAL, INDIRECT, SPECIAL, OR PUNITIVE DAMAGES (INCLUDING, BUT NOT
LIMITED TO, LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF BUSINESS INFORMATION OR
OTHER PECUNIARY LOSS) REGARDLESS OF WHETHER SUCH LIABILITY IS BASED ON BREACH OF
CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, BREACH OF WARRANTIES,
FAILURE OF ESSENTIAL PURPOSE OR OTHERWISE AND EVEN IF ADVISED OF THE POSSIBILITY
OF SUCH DAMAGES. 

          12.2     
Except with regard to a breach of confidentiality, infringement of intellectual
property rights, violation of the License, or a party’s indemnification
obligations pursuant to Section 11 above, either party’s total liability to the
other party under this Agreement shall be limited to the payments paid or
payable by NewCo to MabCure during the twelve-month period preceding the
interposition of the claim.

13.      Term and
Termination 

          13.1      Term.
This Agreement shall be effective as of the Effective Date, and shall continue
in effect until terminated as provided herein, or as otherwise mutually agreed
by the parties, in writing.

          13.2      Termination.
Notwithstanding anything to the contrary, a party may terminate this Agreement
upon the occurrence of any of the following events, and such party shall not be
liable to the other party for the proper exercise of such right: 

                    (a)     
The other party materially breaches this Agreement and continues in such breach
for thirty (30) days after the non-breaching party has given written notice
thereof to the breaching party; or 

                    
(b)      For a period of ninety (90) consecutive days,
the other party is declared to be insolvent or is the subject of bankruptcy or
liquidation proceedings, whether compulsory or voluntary, or has a receiver,
judicial administrator or similar officer appointed over all or any material
part of its assets, or any security holder or encumbrance lawfully takes
possession of any property of or in possession of the other party, or if the
other party ceases to carry on its business.

- 11 - 

          13.3     
Termination by MabCure. Notwithstanding anything to the contrary, MabCure
may terminate this Agreement in the event NewCo does not raise the Initial
Financing (i.e. US$1,000,000) within twelve (12) months from the Effective Date.
For the avoidance of any doubt, the Initial Financing does not include any
financing raised to pay the License Fee. 

          13.4      Effect
of Termination. Upon termination or expiration of this Agreement, all rights
and licenses, (including the License granted to NewCo hereunder) shall
terminate; provided, however, that NewCo may continue to sell, for use in the
Licensed Field, any Licensed Products in its possession at the time of such
termination (but may not commence the development or production of any Licensed
Products), provided that NewCo makes payment to MabCure with respect to such
Licensed Products and submits the royalty reports on such Licensed Products, as
otherwise required by this Agreement. Termination of this Agreement shall not
exempt NewCo from its obligation to pay any and all accrued royalties and fees
(if any) due to MabCure hereunder. Notwithstanding anything else contained
herein, the provisions of Sections 4.5, 8, 10, 11, 12, 15, and 16 shall continue
in force after termination of the Agreement. 

          13.5      Termination
upon Becoming a Public Reporting Company. Notwithstanding anything else to
the contrary (though subject to the following sentence) the rights, duties and
obligations under Article 5 of this Agreement will terminate immediately prior
to the earlier of (a) the completion of NewCo’s initial public offering of
common stock or other securities pursuant to a registration statement or
prospectus filed under the Securities Act of 1933 or other applicable securities
laws and (b) the completion of a reverse takeover or merger transaction by which
NewCo becomes a public reporting company in the United States or elsewhere
(collectively, a “Public Event”). Notwithstanding the foregoing, the rights,
duties and obligations of the parties under Sections 5.2 and 5.3 of this
Agreement will continue until the Initial Financing has been raised.

          13.6      Termination
upon Acquisition or Asset Transfer. Notwithstanding anything else to the
contrary (though subject to the following paragraph), the rights, duties and
obligations under Article 5 of this Agreement will terminate immediately prior
to the earlier of the completion of an Acquisition or Asset Transfer, each as
defined in this section. “Acquisition” for the purpose of this section means (i)
any consolidation or merger of Newco with or into any other corporation or other
entity or person, or any other corporate reorganization, other than any such
consolidation, merger or reorganization in which the stockholders of NewCo
immediately prior to such consolidation, merger or reorganization, continue to
hold at least a majority of the voting power of the surviving entity in
substantially the same proportions (or, if the surviving entity is a wholly
owned subsidiary, its parent) immediately after such consolidation, merger or
reorganization; or (ii) any transaction or series of related transactions to
which NewCo is a party in which in excess of 50% of NewCo’s voting power is
transferred; provided that, an Acquisition will not include any transaction or
series of transactions principally for bona fide equity financing purposes in
which cash is received by NewCo or any successor or indebtedness of NewCo is
cancelled or converted or a combination thereof; and “Asset Transfer” for the
purpose of this section means a sale, lease, exclusive license or other
disposition of all or substantially all of the assets of NewCo. Notwithstanding
the foregoing, the rights, duties and obligations of the parties under Sections 5.2 and 5.3 of this Agreement will
continue until the Initial Financing has been raised.

- 12 -

14.      Relationship of the
parties 

          Each
party is an independent contractor of the other under this Agreement, and
nothing in this Agreement shall be construed to create a joint venture or
general partnership between the parties, or to authorize either party to act as
the general agent for the other party, or to permit either party to bid for or
to undertake any contract for the other party.

15.      Governing Law and
Dispute Resolution

          This
Agreement shall be governed by the laws of the State of New York, without
reference to its choice of law rules, and the courts of New York, NY shall have
exclusive jurisdiction over any claim arising hereunder. This Agreement shall
not be governed by the United Nations Convention on Contracts for the
International Sale of Goods.

16.      Miscellaneous
Provisions. 

          16.1      Entire
Agreement. The terms and conditions of this Agreement comprise the entire
understanding between the parties in connection with the subject matter hereof,
and shall prevail over any oral or written understanding, commitment,
representation, or undertaking entered into prior to the signing of this
Agreement.

          16.2      Alteration.
No alteration, amendment, or modification to any of the provisions of this
Agreement shall be valid unless made in writing and signed by all the parties.

          16.3      No
Waiver. The failure of any party hereto to enforce at any time or for any
period any provision of this Agreement shall not be construed as a waiver of
such right or provision and such party shall be entitled to enforce such right
or provision at any time as it shall see fit. 

          16.4     
Severability. If any provision of this Agreement is determined to be
illegal, invalid, or otherwise unenforceable by a court of competent
jurisdiction then, within the jurisdiction in which such provision is held to be
unenforceable, such provision shall be excluded from this Agreement and the
remainder of this Agreement shall be interpreted as if such provision were so
excluded and shall be enforceable in accordance with its terms; provided,
however, that in such event this Agreement shall be interpreted so as to give
effect, to the greatest extent consistent with and permitted by applicable law,
to the meaning and intention of the excluded provision. 

         16.5     
Assignment. This Agreement shall be binding on and inure to the benefit
of the parties hereto and their respective successors and assigns. Neither party
may assign, transfer, or delegate its rights or obligations under this
Agreement, or any part thereof, without the prior written approval of the other
party, which approval shall not be unreasonably withheld. Notwithstanding the
foregoing, each party shall have the right to assign or transfer this Agreement
without consent (but with prior written notice) to an entity into which such party is merged, or otherwise pursuant to any
other corporate restructuring or reorganization exercise. 

- 13 -

          16.6      Force
Majeure. Except for the obligation to make payments, nonperformance of
either party shall be excused to the extent the performance is rendered
impossible by strike, fire, flood, war, act of terror, governmental acts or
orders or restrictions, or any other reason where failure to perform is beyond
the reasonable control of, and is not caused by, the negligence of the
non-performing party.

- 14 - 

          16.7      Counterparts.
This Agreement may be executed any number of counterparts, each of which shall
be an original, but such counterparts shall together constitute but one and the
same instrument. 

          IN
WITNESS WHEREOF, the parties hereto have executed this Agreement: 

	MabCure Inc. 	Biotech Investment Corp. 
	 	 
	_______________________________________	_______________________________________ 
	Name: __________________________________	Name: __________________________________
	Title:   __________________________________	Title:  
      __________________________________
	Date:   __________________________________	Date:  
      __________________________________

 

 

List of Exhibits: 

	Annex A: 	MabCure Hybridomas producing
      anti-PROSCA Mabs 
	Annex B: 	Pre-Emptive Right Provisions  
	Annex C: 	MabCure Representation Letter  

- 15 - 

Annex A:      MabCure Hybridomas
producing anti-PROSCA Mabs 

The following ten (10) anti-PROSCA clones have been selected by
MabCure: 

3D1, 4C1, 7C5, 7D4, 7D7, 8D2, 8E5, 10B1, 13A4, 16A2

 

 

- 16 - 

Annex B– Pre-Emptive Right Provisions 

1.      
 General.      During
the term of this Agreement, so long as MabCure holds at least 5% of the
outstanding share capital of NewCo, MabCure shall be entitled to a pre-emptive
right to purchase its Pro Rata Share in NewCo with respect to future issuances
by NewCo of any new New Securities (as defined below) provided,
however, MabCure shall have no right to purchase any such New Securities
if MabCure cannot demonstrate to NewCo’s reasonable satisfaction that, prior to
the proposed issuance of such New Securities, (i) it is an “accredited investor”
as such term is defined in Regulation D under the Securities Act of 1933, (ii)
there is an exemption from the registration and prospectus requirements of
applicable securities laws for the issuance of such New Securities, and (ii)
MabCure agreed to comply with certain re-sale restrictions under applicable
securities laws. MabCure’s “Pro Rata Share” for purposes of this
pre-emptive right is the ratio of (a) the number of shares of NewCo’s common
stock owned by MabCure, to (b) a number of shares of common stock of NewCo equal
to the sum of the total number of shares of common stock of NewCo then
outstanding. 

2.        New
Securities.      “New Securities”
means any common stock or preferred stock of NewCo, whether now authorized or
not, and rights, options or warrants to purchase such common stock or preferred
stock, and securities of any type whatsoever that are, or may become,
convertible or exchangeable into such common stock or preferred stock;
provided, however, that the term “New Securities” does
not include: (a) shares of common stock or preferred stock of
NewCo issuable upon exercise of any options, warrants or rights to purchase any
securities of NewCo outstanding as of the date of this Agreement and any
securities issuable upon the conversion thereof; (b) shares of common stock or
preferred stock of NewCo issued in connection with any stock split or stock
dividend or recapitalization; (c) shares of common stock of NewCo (or options,
warrants or rights therefor) granted or issued hereafter to employees, officers,
directors, contractors, consultants or advisers to, NewCo or any subsidiary of
NewCo pursuant to incentive agreements, stock purchase or stock option plans,
stock bonuses or awards, warrants, contracts or other arrangements that are
approved by NewCo’s board of directors (the “Board”); (d) shares
of common stock of NewCo issued pursuant to this Agreement or the Initial
Financing; and (e) shares of common stock of NewCo issued or issuable by NewCo
to the public pursuant to a registration statement or prospectus filed under
applicable securities laws. 

3.        Procedures.     
In the event that NewCo proposes to undertake an issuance of New Securities, so
long as MabCure holds at least 5% of the outstanding share capital of NewCo,
NewCo shall give to MabCure a written notice of its intention to issue New
Securities (the “Notice”), describing the type of New Securities
and the price and the general terms upon which NewCo proposes to issue such New
Securities. MabCure shall have thirty (30) days from the date of such Notice, to
agree in writing to purchase its Pro Rata Share of such New Securities for the
price and upon the general terms specified in the Notice by giving written
notice to NewCo and stating therein the quantity of New Securities to be
purchased (not to exceed such its Pro Rata Share).

- 17 -

4.        Failure to
Exercise.      In the event that MabCure fails
to exercise in full the preemptive right described herein within such thirty
(30) day period, then NewCo shall have one hundred twenty (120) days thereafter
to sell the New Securities with respect to which MabCure’s pre-emptive rights
hereunder were not exercised, at a price and upon general terms not materially
more favorable to the purchasers thereof than specified in NewCo’s Notice. In
the event that NewCo has not issued and sold the New Securities within such one hundred twenty (120) day period, then NewCo shall not
thereafter issue or sell any New Securities without again first offering such
New Securities to MabCure pursuant to this Annex. 

- 18 -

ANNEX C - MABCURE REPRESENTATION LETTER 

	
      All capitalized terms under in this Annex C but not
      otherwise defined have the meanings ascribed thereto in the Agreement.
    

Representation Letter of MabCure Inc. 

In connection with the issuance of shares of common stock (the
“NewCo Shares”) of Biotech Investment Corp. (“NewCo”) to MabCure
Inc. (“MabCure”) pursuant to that certain license agreement dated as of
_______________________(the “Agreement”) between NewCo and MabCure as set
out in the Agreement, MabCure hereby agrees, acknowledges, represents and
warrants that: 

1.        MabCure
satisfies and will satisfy at the time of the issuance of the NewCo Shares one
or more of the categories of “Accredited Investor”, as defined by Regulation D
promulgated under the Securities Act of 1933 (the “Securities Act”), as
indicated below: 

	[  ]	(1) 	
      a natural person whose individual net worth, or joint net
      worth with that person’s spouse, at the time of acquisition of the NewCo
      Shares exceeds $1,000,000, excluding the value of the primary residence of
      such natural person, calculated by subtracting from the estimated fair
      market value of the property the amount of debt secured by the property,
      up to the estimated fair market value of the property;

	 	 	 
	[  ]	(2) 	
      a natural person who had an individual income in excess
      of $200,000 in each of the two most recent years or joint income with that
      person’s spouse in excess of $300,000 in each of those years and has a
      reasonable expectation of reaching the same income level in the current
      year;

	 	 	 
	[  ]	(3) 	
      an organization described in Section 501(c)(3) of the
      United States Internal Revenue Code, a corporation, a Massachusetts or
      similar business trust or partnership, not formed for the specific purpose
      of acquiring the NewCo Shares, with total assets in excess of
      $5,000,000;

	 	 	 
	
      [  ] 
	
      (4) 
	
      a “bank” as defined under Section 3(a)(2) of the
      Securities Act or savings and loan association or other institution as
      defined in Section 3(a)(5)(A) of the Securities Act acting in its
      individual or fiduciary capacity; a broker dealer registered pursuant to
      Section 15 of the Securities Exchange Act of 1934; an insurance company as
      defined in Section 2(13) of the Securities Act; an investment company
      registered under the Investment Company Act of 1940 (United States)
      or a business development company as defined in Section 2(a)(48) of such
      Act; a Small Business Investment Company licensed by the U.S. Small
      Business Administration under Section 301(c) or (d) of the Small
      Business Investment Act of 1958 (United States); a plan with total
      assets in excess of $5,000,000 established and maintained by a state, a
      political subdivision thereof, or an agency or instrumentality of a state
      or a political subdivision thereof, for the benefit of its employees; an
      employee benefit plan within the meaning of the Employee Retirement
      Income Security Act of 1974 (United States) whose investment decisions
      are made by a plan fiduciary, as defined in Section 3(21) of such act,
      which is either a bank, savings and loan association, insurance company or
      registered investment adviser, or if the employee benefit
  plan has total assets in excess of $5,000,000, or, if a
      self-directed plan, whose investment decisions are made solely by persons
  that are accredited investors;

- 19 - 

	[  ]	
      (5) 
	
      a private business development company as defined in
      Section 202(a)(22) of the Investment Advisers Act of 1940 (United
      States);

	 	 	 
	[  ]	(6) 	
      a director or executive officer of NewCo;

	 	 	 
	[  ]	(7) 	
      a trust with total assets in excess of $5,000,000, not
      formed for the specific purpose of acquiring the NewCo Shares, whose
      purchase is directed by a sophisticated person as described in Rule
      506(b)(2)(ii) under the Securities Act; or

	 	 	 
	[  ]	(8) 	
      an entity in which all of the equity owners satisfy the
      requirements of one or more of the foregoing
categories;

Note that if MabCure is claiming to satisfy one of the above
categories of Accredited Investor, MabCure may be required to supply NewCo with
a balance sheet, prior years’ federal income tax returns or other appropriate
documentation to verify and substantiate MabCure’s status as an Accredited
Investor. 

2.        none of the NewCo
Shares have been or will be registered under the Securities Act, or under any
state securities or “blue sky” laws of any state of the United States, and may
not be offered or sold in the United States or, directly or indirectly, to U.S.
Persons (“U.S. Persons”), as that term is defined in Regulation S under
the Securities Act (“Regulation S”), except in accordance with the
provisions of Regulation S or pursuant to an exemption from, or in a transaction
not subject to, the registration requirements of the Securities Act and in
compliance with any applicable state and foreign securities laws; 

3.        MabCure
understands and agrees that offers and sales of any of the NewCo Shares will be
made only in compliance with the registration provisions of the Securities Act
or an exemption therefrom and in each case only in accordance with applicable
state and foreign securities laws; 

4.        MabCure
understands and agrees not to engage in any hedging transactions involving any
of the NewCo Shares unless such transactions are in compliance with the
provisions of the Securities Act and in each case only in accordance with
applicable state and foreign securities laws; 

5.        MabCure is
acquiring the NewCo Shares as principal for its own account, for investment
purposes only, and not with a view to, or for, resale, distribution or
fractionalization thereof, in whole or in part, and, in particular, it has no
intention to distribute either directly or indirectly any of the NewCo Shares in
the United States or to U.S. Persons, and no other person or entity has a direct
or indirect beneficial interest in the NewCo Shares;

6.        NewCo has not
undertaken, and will have no obligation, to register any of the NewCo Shares
under the Securities Act; 

7.        NewCo is entitled
to rely on the acknowledgements, agreements, representations and warranties and
the statements and answers of MabCure contained in the Agreement and this
Representation Letter, and MabCure will hold harmless NewCo from any loss or
damage either one may suffer as a result of any such acknowledgements,
agreements, representations, warranties, statements and/or answers made by
MabCure not being true and correct; 

- 20 -

8.        MabCure has been
advised to consult its own respective legal, tax and other advisors with respect
to the merits and risks of an investment in the NewCo Shares and, with respect
to applicable resale restrictions, is solely responsible (and NewCo is not in
any way responsible) for compliance with applicable resale restrictions; 

9.        MabCure and
MabCure’s advisor(s) have had a reasonable opportunity to ask questions and
receive answers concerning the terms and conditions of the Agreement, and they
have had access to such information concerning NewCo as it has considered
necessary or appropriate in connection with MabCure’s investment decision to
acquire the NewCo Shares; 

10.      the books and records of
NewCo were available upon reasonable notice for inspection, subject to certain
confidentiality restrictions, by MabCure during reasonable business hours at its
principal place of business and that all documents, records and books in
connection with the acquisition of the NewCo Shares under the Agreement have
been made available for inspection by MabCure, MabCure’s attorney and/or
advisor(s); 

11.      MabCure (i) is able to fend
for itself in connection with the acquisition of the NewCo Shares; (ii) has such
knowledge and experience in business matters as to be capable of evaluating the
merits and risks of its prospective investment in the NewCo Shares; and (iii)
has the ability to bear the economic risks of its prospective investment and can
afford the complete loss of such investment; 

12.      no person has made to MabCure
any written or oral representations: 

	 	(a) 	
      that any person will resell or repurchase any of the
      NewCo Shares;

	 	 	 
	 	(b) 	
      that any person will refund the purchase price of any of
      the NewCo Shares;

	 	 	 
	 	(c) 	
      as to the future price or value of any of the NewCo
      Shares; or

	 	 	 
	 	(d) 	
      that any of the NewCo Shares are or will be listed and
      posted for trading on any stock exchange or automated dealer quotation
      system or that application has been made to list and post any of the NewCo
      Shares on any stock exchange or automated dealer quotation
  system;

13.      MabCure is not aware of any
advertisement of any of the NewCo Shares and is not acquiring the NewCo Shares
as a result of any form of general solicitation or general advertising,
including, without limitation, advertisements, articles, notices or other
communications published in any newspaper, magazine or similar media, or
broadcast over radio or television, or made available on the internet, or any
seminar or meeting whose attendees have been invited by general solicitation or
general advertising; 

14.      neither the Securities and
Exchange Commission nor any other securities commission or similar regulatory
authority has reviewed or passed on the merits of the NewCo Shares; 

15.      MabCure acknowledges and
agrees that NewCo will refuse to register any transfer of NewCo Shares not made
in accordance with the provisions of Regulation S, pursuant to registration under the Securities Act, or pursuant to an
available exemption from registration under the Securities Act; 

- 21 -

16.      MabCure is incorporated in
the State of Nevada and its principal executive offices and principal place of
business are in the State of New York; 

17.      no person or entity has or
will have any agreement or option or any right capable at any time of becoming
an agreement to purchase or otherwise acquire the NewCo Shares or require
MabCure to sell, transfer, assign, pledge, charge, mortgage or in any other way
dispose of or encumber any of the NewCo Shares other than under the Agreement;

18.      upon the issuance thereof,
and until such time as the same is no longer required under applicable
requirements of the Securities Act or applicable U.S. state laws and
regulations, the certificates representing the NewCo Shares, and all securities
issued in exchange therefor or in substitution thereof, or pursuant to the
exercise of rights thereunder, will bear a legend in substantially the following
form: 

“NONE OF THE SECURITIES REPRESENTED
HEREBY HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS
SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED
STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE
PROVISIONS OF REGULATION S UNDER THE SECURITIES ACT, PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS. “UNITED STATES” AND “U.S. PERSON” ARE AS
DEFINED BY REGULATION S UNDER THE SECURITIES ACT.”; 

19.      there may be material tax
consequences to MabCure of an acquisition or disposition of any of the NewCo
Shares; NewCo gives no opinion and makes no representation with respect to the
tax status of NewCo or the consequences to MabCure under United States, state,
local or foreign tax law of MabCure’s acquisition or disposition of the NewCo
Shares; 

20.      the acknowledgement,
agreements, representations, warranties, statements, answers, and covenants
contained in this Representation Letter are made by MabCure with the intent that
they may be relied upon by NewCo in determining the eligibility of MabCure to
acquire NewCo Shares. MabCure agrees that by accepting any NewCo Shares it will
be representing and warranting that the representations and warranties above are
true as at the time of the issuance of the NewCo Shares to MabCure contemplated
by the Agreement with the same force and effect as if they had been made by it
at the time of such issuance, and that they will survive the acquisition by it
of the NewCo Shares and will continue in full force and effect notwithstanding
any subsequent disposition by it of such securities. 

MabCure undertakes to notify NewCo immediately of any change in
any representation, warranty or other information relating to MabCure which
takes place prior to the issuance of the NewCo Shares to MabCure. 

- 22 -

IN WITNESS WHEREOF, MabCure Inc. have executed this
Representation Letter as of _____________________, 2011 

	If a Corporation, Partnership or Other Entity: 	 	If an Individual: 
	MabCure Inc. 	 	 
    
	Print or Type Name of Entity 	 	Signature 
	  	 	  
	Signature of Authorized Signatory 	 	Print or Type Name 
	Corporation 	 	 
    
	Type of Entity 	 	Social Security/Tax I.D. Number

- 23 -EX 10.1 Security Agreement

Exhibit 10.1

SECURITY AGREEMENT

THIS SECURITY AGREEMENT (this “Agreement”) is made and entered into effective as of September 8, 2011, by and among HEP INVESTMENTS LLC, a Michigan limited liability company (“Secured Party”) and HEALTH ENHANCEMENT PRODUCTS, INC., a Nevada corporation (“Borrower”).       

RECITALS:

A.

Borrower is indebted to Secured Party pursuant to that certain Senior Secured Convertible Demand Promissory Note, dated as of the date of this Agreement, in the original principal amount of One Hundred Thousand Dollars ($100,000.00) (as amended, restated or otherwise modified from time to time, the “Note”).  

B.

As security for the payment and performance of the indebtedness, and all other obligations of Borrower, under the Note (collectively, the “Obligations”), the Secured Party has required that Borrower execute and deliver this Agreement.

C.

Borrower has agreed to secure the Obligations by granting Secured Party a security interest in the Collateral (as defined below).

AGREEMENTS:

NOW, THEREFORE, the parties agree as follows:

1.

Security Interest.  To secure payment of the Obligations, Borrower hereby grants to Secured Party a continuing security interest in and to all of Borrower’s rights, title and interest in and to all of its property of any kind or description, tangible and intangible personal property, assets and rights, wherever located, whether now existing or owned or hereafter arising or acquired and the proceeds and products therefrom, including, without limitation, the following (collectively, the “Collateral”):

(a)

All Accounts, including, without limitation, accounts receivable, insurance receivables and prepaid premiums, if any, and all Goods whose sale, lease or other disposition has given rise to Accounts and have been returned to, or repossessed or stopped in transit by, Borrower, or rejected or refused by an Account Debtor; 

(b)

All Chattel Paper, including, without limitation, Electronic Chattel Paper and liens and lien rights on customer property; Documents; Instruments, including, without limitation, Promissory Notes; Letter of Credit Rights and proceeds of letters of credit; Supporting Obligations; Liabilities secured by real estate; Commercial Tort Claims and General Intangibles, including, without limitation, Payment Intangibles and Software; 

(c)

All Inventory, including, without limitation, raw materials, work in process, materials and finished goods leased by Borrower as lessor or held for sale or lease or furnished or to be furnished under contracts of service or used or consumed in a business; 

(d)

All Goods and all Equipment; 

(e)

All Securities, Investment Property and Deposit Accounts;

(f)

all patents, patent applications and inventions and all issued patents in the United States of America or elsewhere and any future patents, including any reissue, continuation, division or other extension in whole or part of any such patent;

(g)

All products of, additions and accessions to, and substitutions, betterments and replacements for the foregoing property; 

(h)

All sums at any time credited by or due from Secured Party to Borrower; 

(i)

All property in which Borrower has an interest now or at any time hereafter coming into the possession or under the control of Secured Party or in transit by mail or carrier to or from Secured Party or in possession of or under the control of any third party acting on Secured Party’s behalf without regard to whether Secured Party received the same in pledge, for safekeeping, as agent for collection or transmission or otherwise or whether Secured Party has conditionally released the same (excluding, nevertheless, any of the foregoing property of Borrower which now or any time hereafter is in possession or control of Secured Party under any written trust agreement wherein Secured Party is trustee and Borrower is trustor); and 

(j)

All Proceeds (whether Cash Proceeds or Noncash Proceeds) of the foregoing property, including, without limitation, proceeds of insurance payable by reason of loss or damage to the foregoing property and of eminent domain or condemnation awards.

Terms used and not otherwise defined in this Agreement shall have the meaning given such terms in the Michigan Uniform Commercial Code (the “UCC”).  In the event the meaning of any term defined in the UCC is amended after the date of this Agreement, the meaning of such term as used in this Agreement shall be that of the more encompassing of: (i) the definition contained in the UCC prior to the amendment, and (ii) the definition contained in the UCC after the amendment.

2.

Perfection of Security Interest.  Borrower hereby irrevocably authorizes Secured Party to file financing statement(s) and notices describing the Collateral in all public offices deemed necessary by Secured Party (including the United States Patent and Trademark Office), and to take any and all actions, including, without limitation, filing all financing statements, continuation financing statements and all other documents that Secured Party may reasonably determine to be necessary to perfect and maintain the security interests in the Collateral. Borrower shall have possession of the Collateral. Where Collateral is in the possession of a third party, Borrower will join with Secured Party in notifying the third party of the security interest and obtaining an acknowledgement from the third party that it is holding the Collateral for the benefit of Secured Party. Borrower agrees to promptly execute and deliver to Secured Party all financing statements, continuation financing statements, assignments and all other documents that Secured Party may reasonably request in form satisfactory to Secured Party to perfect and maintain Secured Party’s security interests in the Collateral. In order to fully consummate all of the transactions contemplated under this Agreement, Borrower shall make appropriate entries on its books and records disclosing Secured Party’s security interests in the Collateral.

3.

Warranties and Representations.  Borrower represents and warrants that: (a) Borrower has rights in or the power to transfer the Collateral; (b)  the Collateral, wherever located, is covered by this Agreement; (c) there are no actions or proceedings which are threatened or pending against Borrower which could reasonably be expected to result in any material adverse change in Borrower’s financial condition or which could reasonably be expected to materially affect any of the Collateral; (d) Borrower has duly filed all federal, state, and other governmental tax returns which Borrower is required by law to file, and will continue to file same during such time as any of the Obligations remain owing to Secured Party, and all such taxes required to be paid have been paid, in full; and (e) Borrower is or will become the owner of the Collateral free from any liens, encumbrances or security interests, except for this security interest and existing liens disclosed to and accepted by the Secured Party in writing, and will defend the Collateral against all claims and demands of all persons at any time claiming any interest in it.

4.

Covenants.  Borrower covenants and agrees that while any of the Obligations remain unperformed and unpaid it will: (a) preserve its legal existence and not, in one transaction or a series of related transactions, merge into or consolidate with any other entity, or sell all or substantially all of its assets; (b) not change the state in which it is organized; (c) neither change its name, form of business entity nor address of its chief executive office without giving written notice to Secured Party at least thirty (30) days prior to the effective date of such change, and Borrower agrees that all documents, instruments, and agreements demanded by Secured Party in response to such change shall be prepared, filed, and recorded at Borrower’s expense prior to the effective date of such change; (d) not use the Collateral, nor permit the Collateral to be used, for any unlawful purpose; (e) maintain the Collateral in working condition and repair; and (f) indemnify and hold Secured Party harmless against claims of any persons or entities not a party to this Agreement concerning disputes arising over the Collateral.

5.

Insurance, Taxes, Etc.  Borrower has the risk of loss of the Collateral. Borrower shall: (a) pay promptly all taxes, levies, assessments, judgments, and charges of any kind upon or relating to the Collateral, to Borrower’s business, and to Borrower’s ownership or use of any of its assets, income, or gross receipts, except to the extent contested in good faith; and (b) at its own expense, keep and maintain all of the Collateral fully insured against loss or damage by fire, theft, explosion and other risks, and shall furnish Secured Party with such policies and evidence of payment of premiums upon request. If Borrower fails to obtain or maintain any of the policies required above or pay any premium in whole or in part, or shall fail to pay any such tax, assessment, levy, or charge or to discharge any such lien, claim, or encumbrance, then Secured Party, without waiving or releasing any obligation or default of Borrower hereunder, may at any time thereafter (but shall be under no obligation to do so) make such payment or obtain such discharge or obtain and maintain such policies of insurance and pay such premiums, and take such action as Secured Party deems reasonably advisable. All sums so disbursed by Secured Party, including reasonable attorney fees, court costs, expenses, and other charges, shall be part of the Obligations, covered by this Agreement, and payable upon demand together with interest at the highest rate payable in connection with any of the Obligations from the date when advanced until paid.

6.

Information.  Borrower shall permit Secured Party or its agents, upon reasonable request, to have access to, and to inspect, all the Collateral.

7.

Events of Default.  The Borrower, without notice or demand of any kind, shall be in default under this Agreement upon the occurrence and during the continuance of any “Event of Default” as defined in the Note (an “Event of Default”).

8.

Remedies Upon Default.  

(a)

Upon the occurrence of any Event of Default, Secured Party may exercise from time to time any rights and remedies including the right to immediate possession of the Collateral available to it under applicable law. Secured Party may directly contact third parties and enforce against them all rights which arise with respect to the Collateral and to which Borrower or Secured Party would be entitled. 

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(b)

Borrower waives any right it may have to require Secured Party to pursue any third person for any of the Obligations. Borrower agrees, upon the occurrence of an Event of Default, to assemble at its expense all the Collateral and make it available to Secured Party at a convenient place acceptable to Secured Party. Borrower agrees to pay all costs of Secured Party of collection of the Obligations, and enforcement of rights under this Agreement, including reasonable attorney fees and legal expenses, including participation in Secured bankruptcy proceedings, and expense of locating the Collateral and expenses of any repairs to any realty or other property to which any of the Collateral may be affixed or be a part. If any notification of intended disposition of any of the Collateral is required by law, such notification, if mailed, shall be deemed reasonably and properly given if sent at least ten (10) days before such disposition, postage pre-paid, addressed to the Borrower at the address of the Borrower appearing on the Notes or records of Secured Party. 

(c)

Any sale shall conform to commercially reasonable standards as provided in the UCC.  Borrower acknowledges that Secured Party may be unable to effect a public sale of all or any portion of the Collateral because of certain legal and/or practical restrictions and provisions which may be applicable to the Collateral and, therefore, may be compelled to resort to one or more private sales to a restricted group of offerees and purchasers.  Secured Party shall have no obligation to clean up or otherwise prepare the Collateral for sale. Secured Party may comply with any applicable state or federal law requirements in connection with a disposition of the Collateral and compliance will not be considered to adversely affect the commercial reasonableness of any sale of the Collateral. Secured Party may specifically disclaim any warranties as to the Collateral. If the Secured Party resorts to one or more private sales, Secured Party shall give Borrower notice and the right to match bids.  If Secured Party sells any of the Collateral upon credit, Borrower will be credited only with payments actually made by the purchaser, received by Secured Party and applied to the indebtedness of the purchaser. In the event the purchaser fails to pay for the Collateral, Secured Party may resell the Collateral and the Borrower shall be credited with the proceeds of sale. Secured Party shall have no obligation to marshal any assets in favor of the Borrower. Borrower waives the right to jury trial in any proceeding instituted with respect to the Collateral. Out of the net proceeds from sale or disposition of the Collateral, Secured Party shall retain all the Obligations then owing to it and the actual cost of collection (including reasonable attorney fees) and shall tender any excess to Borrower or its successors or assigns. If the Collateral shall be insufficient to pay the entire Obligations, Borrower shall pay to Secured Party the resulting deficiency upon demand.

(d)

Except as otherwise provided in this Agreement, Borrower expressly waives any and all claims of any nature, kind or description which it has or may have against Secured Party or its representatives, by reason of taking, selling or collecting any portion of the Collateral. Borrower consents to releases of the Collateral at any time (including prior to default) and to sales of the Collateral in groups, parcels or portions, or as an entirety, as Secured Party shall deem appropriate. Borrower expressly absolves Secured Party from any loss or decline in market value of any Collateral by reason of delay in the enforcement or assertion or nonenforcement of any rights or remedies under this Agreement. Borrower agrees that Secured Party shall, upon the occurrence of an Event of Default, have the right to peacefully retake any of the Collateral. Borrower waives any right it may have in such instance to a judicial hearing prior to such retaking.

(e)

Secured Party may exercise all rights and remedies provided by the UCC as it exists on the date of this Agreement or as it may be amended. 

(f)

Notwithstanding anything in this Agreement to the contrary, Secured Party hereby agrees that upon the occurrence of an Event of Default, it will not exercise any of its rights and remedies under this Agreement unless or until: (i) Borrower files a voluntary petition in bankruptcy; (ii) Borrower makes a general assignment for the benefit of its creditors or Borrower’s creditors file against Borrower any involuntary petition under any bankruptcy or insolvency law; (iii) any court appoints a receiver to take possession of substantially all of Borrower’s assets; (iv) Borrower consummates a debt or equity financing; or (v) six months after the date of the Note.

9.

General.  

(a)

Time shall be deemed of the very essence of this Agreement. 

(b)

Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in its possession if it takes such action for that purpose as Borrower requests in writing, but failure of Secured Party to comply with any such request shall not of itself be deemed a failure to exercise reasonable care, and failure of Secured Party to preserve or protect any rights with respect to such Collateral against any prior parties or to do any act with respect to the preservation of such Collateral not so requested by Borrower shall not be deemed a failure to exercise reasonable care in the custody and preservation of such Collateral. 

(c)

This Agreement has been delivered in Michigan and shall be construed in accordance with the laws of the State of Michigan. 

(d)

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

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(e)

The rights and privileges of Secured Party under this Agreement shall inure to the benefit of its successors and assigns, and this Agreement shall be binding on all assigns and successors of Borrower and all persons who become bound as a debtor to this Agreement. 

(f)

Borrower hereby expressly authorizes and appoints Secured Party to act as its attorney-in-fact for the sole purpose of executing any and all financing statements or other documents deemed necessary to perfect the security interest herein contemplated.

(g)

Any delay on the part of Secured Party in exercising any power, privilege or right under this Agreement shall not operate as a waiver, and no single or partial exercise, or the exercise of any other power, privilege or right shall preclude other or further exercise, or the exercise of any other power, privilege or right. The waiver of Secured Party of any default by Borrower shall not constitute a waiver of any subsequent defaults, but shall be restricted to the specific default waived. All rights, remedies and powers of Secured Party under this Agreement are irrevocable and cumulative, and not alternative or exclusive, and shall be in addition to all rights, remedies, and powers given under this Agreement or in or by any other instruments, or by the UCC or any laws.

(h)

This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.  Facsimile or photostatic copies of signatures to this Agreement shall be deemed to be originals and may be relied on to the same extent as the originals.

[Signatures on the following page]

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IN WITNESS WHEREOF, the parties have caused this Security Agreement to be fully executed as of the day and year first written above.

BORROWER:

HEALTH ENHANCEMENT PRODUCTS, INC.

S/John Gorman                                                                        

By: John Gorman, EVP, Operations

SECURED PARTY:

HEP INVESTMENTS LLC

By: ______________________________________________

Print Name: _______________________________________

Its: ______________________________________________

[Signature Page to Security Agreement]

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