Document:

MabCure Inc. - Exhibit 10.2 - Filed by newsfilecorp.com

EXHIBIT 10.2 

THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT RELATES TO AN
OFFERING OF SECURITIES IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S.
PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"). 

NONE OF THE SECURITIES TO WHICH THIS PRIVATE PLACEMENT
SUBSCRIPTION AGREEMENT (THE "SUBSCRIPTION AGREEMENT") RELATES HAVE BEEN
REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO
REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED
STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE
PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE
CONDUCTED UNLESS IN ACCORDANCE WITH THE 1933 ACT. 

CONFIDENTIAL 
PRIVATE PLACEMENT SUBSCRIPTION
AGREEMENT 

  (Subscribers Resident Overseas) 

THIS SUBSCRIPTION AGREEMENT is dated for reference February
12th, 2010. 

	TO: 	MabCure Inc., a Nevada
      corporation (the "Company") 
	  	De Schiervellaan 3/B1 
	  	3500 Hasselt 
	  	Belgium 

Purchase of Units 

1.      Subscription

          1.1      On
the basis of the representations and warranties and subject to the terms and
conditions set forth herein, Bluewater Financial, Ltd. (the "Subscriber")
hereby irrevocably subscribes for and agrees to purchase 1,000,000 units (the
"Units") at a price per Unit of US$0.50 (such subscription and agreement
to purchase being the "Subscription"), for an aggregate purchase price of
US$500,000 (the "Subscription Proceeds"). 

          1.2     
Each Unit will consist of: (i) one share in the common stock of the Company
(each, a "Share"); (ii) one non-transferable common stock purchase
warrant (each, an "A Warrant") entitling the holder thereof to purchase
one Share (each, a "Warrant A Share"), as presently constituted, for a
period of two years commencing at the Closing (as defined below), at a price per
Warrant A Share of US$0.60; and (iii) one non-transferable common stock purchase
warrant (each, a "B Warrant" and, together with the A Warrants, the
"Warrants") entitling the holder thereof to purchase one Share (each, a
"Warrant B Share" and, together with the Warrant A Shares, the
"Warrant Shares"), as presently constituted, for a period of two years
commencing at the Closing (as defined below), at a price per Warrant B Share of
US$0.70. Certificate(s) representing the A Warrants will be in the form attached
as Exhibit "A" hereto and certificate(s) representing the B Warrants will be in
the form attached as Exhibit "B" hereto. The Shares, Warrants and the Warrant
Shares are collectively referred to as the "Securities". 

          1.3     
On the basis of the representations and warranties and subject to the terms and
conditions set forth herein, the Company hereby irrevocably agrees to sell the
Units to the Subscriber. 

          1.4      Subject
to the terms hereof, the Subscription will be effective upon its acceptance by
the Company. The Subscriber acknowledges that the offering of Units contemplated
hereby (the "Offering") is not subject to any minimum aggregate
subscription level. 

2.      Payment

          2.1      The
Subscription Proceeds will accompany this Subscription and will be paid by wire
transfer and wired to the Company’s lawyers, who shall hold the funds in escrow
until the Company accepts and counter-signs the Subscription Agreement, at which
time those lawyers are authorized to immediately deliver the funds to the
Company. 

          2.2     
In the event that this Subscription Agreement is not accepted by the Company for
whatever reason, which the Company expressly reserves the right to do, within 30
days of the delivery of an executed Subscription Agreement by the Subscriber,
this Subscription Agreement, the Subscription Proceeds (without interest
thereon), and any other documents delivered in connection herewith will be
returned to the Subscriber at the address of the Subscriber as set forth in this
Subscription Agreement. 

3.      Documents
Required from Subscriber 

          3.1      The
Subscriber will complete, sign and return to the Company an executed copy of
this Subscription Agreement. 

          3.2      The
Subscriber will complete, sign and return to the Company as soon as possible, on
request by the Company, any documents, questionnaires, notices and undertakings
as may be required by regulatory authorities and applicable law. 

4.     
Closing 

          4.1      Closing
of this subscription transaction (the "Closing") will occur on or before
February 12th, 2010, or on such other date as may be determined by
the Company (the "Closing Date"). 

5.      Acknowledgements
of Subscriber 

          5.1      The
Subscriber acknowledges and agrees that: 

	 	(a) 	
      none of the Securities have been registered under the
      1933 Act, or under any state securities or "blue sky" laws of any state of
      the United States, and, unless so registered, may not be offered or sold
      in the United States or, directly or indirectly, to U.S. Persons, as that
      term is defined in Regulation S under the 1933 Act ("Regulation
      S"), except in accordance with the provisions of Regulation S,
      pursuant to an effective registration statement under the 1933 Act, or
      pursuant to an exemption from, or in a transaction not subject to, the
      registration requirements of the 1933 Act;

	 	 	 
	 	(b) 	
      the Subscriber acknowledges that the Company has not
      undertaken, and will have no obligation, to register any of the Securities
      under the 1933 Act;

	 	 	 
	 	(c) 	
      the decision to execute this Agreement and acquire the
      Securities hereunder has not been based upon any oral or written
      representation as to fact or otherwise made by or on behalf of the
      Company, and such decision is based entirely upon a review of information
      (the receipt of which is hereby acknowledged) which has been filed by the
      Company with the United States Securities and Exchange Commission (the
      "SEC") and in compliance, or intended compliance, with applicable
      securities legislation (collectively, the "Public
  Record");

	 	 	 
	 	(d) 	
      if the Company has presented a business plan to the
      Subscriber, the Subscriber acknowledges that the business plan may not be
      achieved or be achievable;

	 	 	 
	 	(e) 	
      no securities commission or similar regulatory authority
      has reviewed or passed on the merits of the Securities;

	 	 	 
	 	(f) 	
      there is no government or other insurance covering the
      Securities;

	 	 	 
	 	(g) 	
      there are risks associated with an investment in the
      Securities, as more fully described in certain information forming part of
      the Public Record;

	 	 	 
	 	(h) 	
      the Subscriber has not acquired the Securities as a
      result of, and will not itself engage in, any "directed selling efforts"
      (as defined in Regulation S under the 1933 Act) in the United States in
      respect of any of the Securities which would include any activities
      undertaken for the purpose of, or that could reasonably be expected to
      have the effect of, conditioning the market in the United States for the
      resale of any of the Shares or Warrant Shares; provided, however, that the
      Subscriber may sell or otherwise dispose of any of the Shares or Warrant
      Shares pursuant to registration thereof under the 1933 Act and any
      applicable state securities laws or under an exemption from such
      registration requirements;

	 	 	 
	 	(i) 	
      the Subscriber and the Subscriber’s advisor(s) have had a
      reasonable opportunity to ask

2

	 		
      questions of and receive answers from the Company in
      connection with the distribution of the Securities hereunder, and to
      obtain additional information, to the extent possessed or obtainable
      without unreasonable effort or expense, necessary to verify the accuracy
      of the information about the Company;

	 	 	 	 
	 	(j) 	
      the books and records of the Company were available upon
      reasonable notice for inspection, subject to certain confidentiality
      restrictions, by the Subscriber during reasonable business hours at its
      principal place of business, and all documents, records and books in
      connection with the distribution of the Securities hereunder have been
      made available for inspection by the Subscriber, the Subscriber’s lawyer
      and/or advisor(s);

	 	 	 	 
	 	(k) 	
      the Subscriber will indemnify and hold harmless the
      Company and, where applicable, its directors, officers, employees, agents,
      advisors and shareholders, from and against any and all loss, liability,
      claim, damage and expense whatsoever (including, but not limited to, any
      and all fees, costs and expenses whatsoever reasonably incurred in
      investigating, preparing or defending against any claim, lawsuit,
      administrative proceeding or investigation whether commenced or
      threatened) arising out of or based upon any representation or warranty of
      the Subscriber contained herein or in any document furnished by the
      Subscriber to the Company in connection herewith being untrue in any
      material respect or any breach or failure by the Subscriber to comply with
      any covenant or agreement made by the Subscriber to the Company in
      connection therewith;

	 	 	 	 
	 	(l) 	
      none of the Securities are listed on any stock exchange
      or automated dealer quotation system and no representation has been made
      to the Subscriber that any of the Securities will become listed on any
      stock exchange or automated dealer quotation system;

	 	 	 	 
	 	(m) 	
      the Company will refuse to register any transfer of the
      Shares or the Warrant Shares not made in accordance with the provisions of
      Regulation S, pursuant to an effective registration statement under the
      1933 Act or pursuant to an available exemption from the registration
      requirements of the 1933 Act;

	 	 	 	 
	 	(n) 	
      the statutory and regulatory basis for the exemption
      claimed for the Securities, although in technical compliance with
      Regulation S, would not be available if the offering is part of a plan or
      scheme to evade the registration provisions of the 1933 Act;

	 	 	 	 
	 	(o) 	
      the Subscriber has been advised to consult the
      Subscriber’s own legal, tax and other advisors with respect to the merits
      and risks of an investment in the Securities and with respect to
      applicable resale restrictions, and it is solely responsible (and the
      Company is not in any way responsible) for compliance with:

	 	 	 	 
	 		(i) 	
      any applicable laws of the jurisdiction in which the
      Subscriber is resident in connection with the distribution of the
      Securities hereunder, and

	 	 	 	 
	 		(ii) 	
      applicable resale restrictions; and

	 	 	 	 
	 	(p) 	
      this Subscription Agreement is not enforceable by the
      Subscriber unless it has been accepted by the
Company.

6.      Representations,
Warranties and Covenants of the Subscriber 

          6.1      The
Subscriber hereby represents and warrants to and covenants with the Company
(which representations, warranties and covenants will survive the Closing) that:

	 	(a) 	
      the Subscriber has the legal capacity and competence to
      enter into and execute this Subscription Agreement and to take all actions
      required pursuant hereto and, if the Subscriber is a corporation, it is
      duly incorporated and validly subsisting under the laws of its
      jurisdiction of incorporation and all necessary approvals by its
      directors, shareholders and others have been obtained to authorize
      execution and performance of this Subscription Agreement on behalf of the
      Subscriber;

	 	 	 
	 	(b) 	
      the entering into of this Subscription Agreement and the
      transactions contemplated hereby do not result in the violation of any of
      the terms and provisions of any law applicable to, or the constituting
      documents of, the Subscriber or of any agreement, written or oral, to
      which

3

	 		
      the Subscriber may be a party or by which the Subscriber
      is or may be bound;

	 	 	 	 
	 	(c) 	
      the Subscriber has duly executed and delivered this
      Subscription Agreement and it constitutes a valid and binding agreement of
      the Subscriber enforceable against the Subscriber;

	 	 	 	 
	 	(d) 	
      the Subscriber is not a U.S. Person;

	 	 	 	 
	 	(e) 	
      the Subscriber is not acquiring the Securities for the
      account or benefit of, directly or indirectly, any U.S. Person;

	 	 	 	 
	 	(f) 	
      the Subscriber is resident in the jurisdiction set out
      under the heading "Name and Address of Subscriber" on the signature page
      of this Subscription Agreement;

	 	 	 	 
	 	(g) 	
      the sale of the Securities to the Subscriber as
      contemplated in this Subscription Agreement complies with or is exempt
      from the applicable securities legislation of the jurisdiction of
      residence of the Subscriber;

	 	 	 	 
	 	(h) 	
      the Subscriber is acquiring the Securities for investment
      only and not with a view to resale or distribution and, in particular, it
      has no intention to distribute either directly or indirectly any of the
      Securities in the United States or to U.S. Persons;

	 	 	 	 
	 	(i) 	
      the Subscriber is outside the United States when
      receiving and executing this Subscription Agreement and is acquiring the
      Securities as principal for the Subscriber’s own account (except for the
      circumstances outlined in paragraph 6.1(l)), for investment purposes only,
      and not with a view to, or for, resale, distribution or fractionalisation
      thereof, in whole or in part, and no other person has a direct or indirect
      beneficial interest in such Securities;

	 	 	 	 
	 	(j) 	
      the Subscriber is not an underwriter of, or dealer in,
      the common shares of the Company, nor is the Subscriber participating,
      pursuant to a contractual agreement or otherwise, in the distribution of
      the Securities;

	 	 	 	 
	 	(k) 	
      the Subscriber: (i) is able to fend for itself in the
      Subscription; (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 Securities; and (iii) has the ability to bear the
      economic risks of its prospective investment and can afford the complete
      loss of such investment;

	 	 	 	 
	 	(l) 	
      if the Subscriber is acquiring the Securities as a
      fiduciary or agent for one or more investor accounts:

	 	 	 	 
	 		(i) 	
      the Subscriber has sole investment discretion with
      respect to each such account and it has full power to make the foregoing
      acknowledgements, representations and agreements on behalf of such
      account, and

	 	 	 	 
	 		(ii) 	
      the investor accounts for which the Subscriber acts as a
      fiduciary or agent satisfy the definition of an "Accredited Investor", as
      the term is defined in Regulation D under the 1933 Act;

	 	 	 	 
	 	(m) 	
      the Subscriber acknowledges that the Subscriber has not
      acquired the Securities as a result of, and will not itself engage in, any
      "directed selling efforts" (as defined in Regulation S under the 1933 Act)
      in the United States in respect of any of the Securities which would
      include any activities undertaken for the purpose of, or that could
      reasonably be expected to have the effect of, conditioning the market in
      the United States for the resale of any of the Securities; provided,
      however, that the Subscriber may sell or otherwise dispose of any of the
      Securities pursuant to registration of any of the Securities pursuant to
      the 1933 Act and any applicable state securities laws or under an
      exemption from such registration requirements and as otherwise provided
      herein;

	 	 	 	 
	 	(n) 	
      the Subscriber is not aware of any advertisement of any
      of the Securities;

	 	 	 	 
	 	(o) 	
      no person has made to the Subscriber any written or oral
      representations:

4

	 	(i) 	
      that any person will resell or repurchase any of the
      Securities,

	 	 	 
	 	(ii) 	
      that any person will refund the purchase price of any of
      the Securities,

	 	 	 
	 	(iii) 	
      as to the future price or value of any of the Securities,
      or

	 	 	 
	 	(iv) 	
      that any of the Securities 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 Securities of the
      Company on any stock exchange or automated dealer quotation
  system;

	 	(p) 	
      the Subscriber:

	 	 	 	 	 
	 		(i) 	
      is knowledgeable of, or has been independently advised as
      to, the applicable securities laws of the securities regulators having
      application in the jurisdiction in which the Subscriber is resident (the
      "International Jurisdiction") which would apply to the acquisition
      of the Units,

	 	 	 	 	 
	 		(ii) 	
      is purchasing the Units pursuant to exemptions from
      prospectus or equivalent requirements under applicable securities laws or,
      if such is not applicable, the Subscriber is permitted to purchase the
      Units under the applicable securities laws of the securities regulators in
      the International Jurisdiction without the need to rely on any
      exemptions,

	 	 	 	 	 
	 		(iii) 	
      acknowledges that the applicable securities laws of the
      authorities in the International Jurisdiction do not require the Company
      to make any filings or seek any approvals of any kind whatsoever from any
      securities regulator of any kind whatsoever in the International
      Jurisdiction in connection with the issue and sale or resale of any of the
      Securities, and

	 	 	 	 	 
	 		(iv) 	
      represents and warrants that the acquisition of the Units
      by the Subscriber does not trigger:

	 	 	 	 	 
	 			A. 	
      any obligation to prepare and file a prospectus or
      similar document, or any other report with respect to such purchase in the
      International Jurisdiction, or

	 	 	 	 	 
	 			B. 	
      any continuous disclosure reporting obligation of the
      Company in the International Jurisdiction, and

	 	 	 	 	 
	 			
      the Subscriber will, if requested by the Company, deliver
      to the Company a certificate or opinion of local counsel from the
      International Jurisdiction which will confirm the matters referred to in
      subparagraphs (ii), (iii) and (iv) above to the satisfaction of the
      Company, acting reasonably; and

7.      Acknowledgement
and Waiver 

          7.1      The
Subscriber has acknowledged that the decision to purchase the Securities was
solely made on the basis of publicly available information contained in the
Public Record. The Subscriber hereby waives, to the fullest extent permitted by
law, any rights of withdrawal, rescission or compensation for damages to which
the Subscriber might be entitled in connection with the distribution of any of
the Securities. 

8.      Legending of
Subject Securities 

          8.1      The
Subscriber hereby acknowledges that that upon the issuance thereof, and until
such time as the same is no longer required under the applicable securities laws
and regulations, the certificates representing any of the Securities will bear a
legend in substantially the following form: 

THE SECURITIES REPRESENTED HEREBY
HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S.
PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"). 

5

NONE OF THE SECURITIES REPRESENTED
HEREBY HAVE BEEN REGISTERED UNDER THE 1933 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 1933 ACT, PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE
SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. "UNITED
STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.

          8.2      The
Subscriber hereby acknowledges and agrees to the Company making a notation on
its records or giving instructions to the registrar and transfer agent of the
Company in order to implement the restrictions on transfer set forth and
described in this Subscription Agreement. 

9.      Piggyback
Registration Rights 

          9.1     
If the Company determines to proceed with the preparation and filing with the
SEC of a registration statement (the "Registration Statement") relating
to an offering for its own account or the account of others under the 1933 Act
of any of its common shares, other than on Form S-4 or Form S-8 (each as
promulgated under the 1933 Act) or its then equivalents relating to equity
securities issuable in connection with stock option or other employee benefit
plans, then the Company will send to the Subscriber written notice of such
determination and, if within thirty (30) days after receipt of such notice, the
Subscriber will so request in writing, then the Company will cause the
registration under the 1933 Act of the Shares (the "Registrable
Securities"); provided, however that, if at any time after giving written
notice of its intention to register any of its common shares in an underwritten
offering and prior to the effective date of the registration statement filed in
connection with such underwritten offering, the managing underwriter advises the
Company in writing that in its opinion the number of securities requested to be
included in such registration exceeds the number that can be sold in such
underwritten offering without adversely affecting such underwriter’s ability to
effect an orderly distribution of such securities, then the Company may give
written notice of such determination to the Subscriber and, thereupon will be
relieved of its obligation to register the Registrable Securities in connection
with such underwritten offering to the extent necessary to reduce the total
number of securities included in such offering to the amount recommended by the
managing underwriter. The Company will include the Subscriber’s Registrable
Securities in any future registration prior to any other shares of stock of the
Company held by any other stockholder of the Company. The Company will include
in such registration statement all or any part of the Registrable Securities;
provided, however, that the Company will not be required to register any shares
that are eligible for sale pursuant to Rule 144(k) of the 1933 Act. 

          9.2      In
connection with each Registration Statement described in this section, the
Subscriber will furnish to the Company in writing such information and
representation letters with respect to itself and the proposed distribution by
it as reasonably will be necessary in order to assure compliance with federal
and applicable state securities laws. The Company may require the Subscriber to
furnish to the Company a certified statement as to the number of shares of
common stock beneficially owned by the Subscriber and the name of the natural
person thereof that has voting and dispositive control over the Registrable
Securities. 

          9.3      All
fees and expenses incidental to the performance of or compliance with the filing
of the Registration Statement will be borne by the Company whether or not any
Registrable Securities are sold pursuant to the Registration Statement. The fees
and expenses referred to in the foregoing sentence will include, without
limitation: (i) all registration and filing fees, including, without limitation,
fees and expenses: (A) with respect to filings required to be made with the OTC
Bulletin Board or other exchange or quotation service on which the common stock
of the Company is then listed for trading, and (B) in compliance with applicable
state securities or Blue Sky laws; (ii) printing expenses, including, without
limitation, expenses of printing certificates for Registrable Securities and of
printing prospectuses, if the printing of prospectuses is reasonably requested
by the holders of a majority of the Registrable Securities included in the
Registration Statement; (iii) messenger, telephone and delivery expenses; (iv)
fees and disbursements of counsel for the Company; (v) 1933 Act liability
insurance, if the Company so desires such insurance; and (vi) fees and expenses
of all other persons retained by the Company in connection with the filing of
the Registration Statement. In addition, the Company will be responsible for all
of its internal expenses incurred in connection with the filing of the
Registration Statement, including, without limitation, all salaries and expenses
of its officers and employees performing legal or accounting duties, the expense
of any annual audit and the fees and expenses incurred in connection with the
listing of the Registrable Securities on any securities exchange, if applicable.
In no event will the Company be responsible for any broker or similar
commissions or, except to the extent provided for hereunder, any legal fees or
other costs of the Subscriber. 

  6

          9.4      The
Company will, notwithstanding any termination of this Subscription Agreement,
indemnify and hold harmless the Subscriber, its officers, directors, agents and
employees, and each person who controls the Subscriber (within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act) and the officers,
directors, agents and employees of each such controlling person, to the fullest
extent permitted by applicable law, from and against any and all losses, claims,
damages, liabilities, costs (including, without limitation, reasonable
attorneys' fees) and expenses (collectively, "Losses"), as incurred,
arising out of or relating to any untrue or alleged untrue statement of a
material fact contained in the Registration Statement, or in any amendment or
supplement thereto or in any preliminary prospectus, or arising out of or
relating to any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein not misleading,
except to the extent, but only to the extent, that: (i) such untrue statements
or omissions are based upon information regarding the Subscriber furnished in
writing to the Company by the Subscriber expressly for use therein, or to the
extent that such information relates to the Subscriber or the Subscriber's
proposed method of distribution of Registrable Securities and was reviewed and
expressly approved in writing by the Subscriber expressly for use in the
Registration Statement, or in any amendment or supplement thereto; or (ii) the
use by the Subscriber of an outdated or defective Registration Statement. 

          9.5      The
Subscriber will indemnify and hold harmless the Company, its directors,
officers, agents and employees, each person who controls the Company (within the
meaning of Section 15 of the 1933 Act and Section 20 of the 1934 Act), and the
directors, officers, agents or employees of such controlling persons, to the
fullest extent permitted by applicable law, from and against all Losses, as
incurred, to the extent arising out of or based upon: (i) the Subscriber's
failure to comply with the prospectus delivery requirements of the 1933 Act; or
(ii) any untrue or alleged untrue statement of a material fact contained in any
Registration Statement, or in any amendment or supplement thereto or in any
preliminary prospectus, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make
the statements therein not misleading: (A) to the extent, but only to the
extent, that such untrue statement or omission is contained in any information
so furnished by the Subscriber to the Company specifically for inclusion in the
Registration Statement, or (B) to the extent that such untrue statements or
omissions are based upon information regarding the Subscriber furnished in
writing to the Company by the Subscriber expressly for use therein, or (C) to
the extent that such information relates to the Subscriber or the Subscriber's
proposed method of distribution of Registrable Securities and was reviewed and
expressly approved in writing by the Subscriber expressly for use in the
Registration Statement or in any amendment or supplement thereto; or (iii) the
use by the Subscriber of an outdated or defective Registration Statement. 

          9.6     
If a claim for indemnification hereunder is unavailable to either the Company or
the Subscriber (in each case, an "Indemnified Party or Indemnified
Parties", as applicable) (by reason of public policy or otherwise), then
each Indemnifying Party, in lieu of indemnifying such Indemnified Party, will
contribute to the amount paid or payable by such Indemnified Party as a result
of such Losses, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the
actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such Indemnifying
Party and Indemnified Party will be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission of a material fact,
has been taken or made by, or relates to information supplied by, such
Indemnifying Party or Indemnified Party, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
action, statement or omission. The amount paid or payable by a party as a result
of any Losses will be deemed to include, subject to the limitations set forth in
this Subscription, any reasonable attorneys' or other reasonable fees or
expenses incurred by such party in connection with any proceeding to the extent
such party would have been indemnified for such fees or expenses if the
indemnification provided for in this section was available to such party in
accordance with its terms. The parties hereto agree that it would not be just
and equitable if contribution pursuant to this section were determined by pro
rata allocation or by any other method of allocation that does not take into
account the equitable considerations referred to in the immediately preceding
paragraph. 

10.    Costs 

          The
Subscriber acknowledges and agrees that all costs and expenses incurred by the
Subscriber (including any fees and disbursements of any special counsel retained
by the Subscriber) relating to the purchase of the Shares will be borne by the
Subscriber. 

11.    Governing Law

          This
Subscription Agreement is governed by the laws of the State of Nevada. The
Subscriber, in its personal or corporate capacity and, if applicable, on behalf
of each beneficial purchaser for whom it is acting, irrevocably attorns to the
jurisdiction of the courts of the State of Nevada. 

  7

12.    Survival 

          This
Subscription Agreement, including without limitation the representations,
warranties and covenants contained herein, will survive and continue in full
force and effect and be binding upon the parties hereto notwithstanding the
completion of the purchase of the Units by the Subscriber pursuant hereto. 

13.    Assignment 

          This
Subscription Agreement is not transferable or assignable. 

14.    Severability 

          The
invalidity or unenforceability of any particular provision of this Subscription
Agreement will not affect or limit the validity or enforceability of the
remaining provisions of this Subscription Agreement. 

15.    Entire Agreement

          Except
as expressly provided in this Subscription Agreement and in the agreements,
instruments and other documents contemplated or provided for herein, this
Subscription Agreement contains the entire agreement between the parties with
respect to the sale of the Units and there are no other terms, conditions,
representations or warranties, whether expressed, implied, oral or written, by
statute or common law, by the Company or by anyone else. 

16.    Notices 

          All
notices and other communications hereunder will be in writing and will be deemed
to have been duly given if mailed or transmitted by any standard form of
telecommunication. Notices to the Subscriber will be directed to the address on
page 11 and notices to the Company will be directed to it at MabCure Inc., at
the address provided above unless another address will be provided by the
Company. 

17.    Counterparts and Electronic
Means 

          This
Subscription Agreement may be executed in any number of counterparts, each of
which, when so executed and delivered, will constitute an original and all of
which together will constitute one instrument. Delivery of an executed copy of
this Agreement by electronic facsimile transmission or other means of electronic
communication capable of producing a printed copy will be deemed to be execution
and delivery of this Agreement as of the date hereinafter set forth. 

18.    Delivery
Instructions 

          18.1      The
Subscriber hereby directs the Company to deliver the Share and Warrant
Certificates to: 

	 	 
	 	(name) 
	 	 
	 	(address) 

          18.2     
The Subscriber hereby directs the Company to cause the Shares to be registered
on the books of the Company as follows: 

	 	 
	 	(name) 
	 	 
	 	(address) 

8

          IN
WITNESS WHEREOF the Subscriber has duly executed this Subscription Agreement
as of the date of acceptance by the Company. 

	 	 	(Name of Subscriber – Please type or print)
  
	 	 	 
	 	 	(Signature and, if applicable, Office) 
	 	 	 
	 	 	(Address of Subscriber) 
	 	 	 
	 	 	(City, State or Province, Postal Code of
      Subscriber) 
	 	 	 
	 	 	(Country of Subscriber) 

A C C E P T A N C E 

The above-mentioned Subscription Agreement in respect of the
Shares is hereby accepted by MabCure Inc. 

DATED at _____________________________________, the _____day of
March, 2010. 

MABCURE INC. 

Per:  
__________________________________________
        
Authorized Signatory 

9

EXHIBIT "A" 

THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN
OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN)
PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE "1933 ACT"). 

NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN
REGISTERED UNDER THE 1933 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 1933 ACT, PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE
CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. "UNITED STATES" AND "U.S.
PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT. 

THESE WARRANTS WILL EXPIRE AND BECOME NULL AND VOID 

  AT 4:30 P.M. (EASTERN STANDARD TIME) ON MARCH 5, 2012. 

SHARE PURCHASE WARRANTS 
TO PURCHASE SHARES IN THE COMMON
STOCK OF 

  MABCURE INC. 

incorporated in the State of Nevada 

CERTIFICATE NO.:______________                                                                                                   March
  5, 2010 

          THIS
IS TO CERTIFY THAT _____________________, (the "Holder") of
_____________________, has the right to purchase, upon and subject to the terms
and conditions hereinafter referred to, up to 1,000,000 fully paid and
non-assessable shares (the "Shares") in the common stock of MABCURE INC.
(hereinafter called the "Company") on or before 4:30 p.m. (Eastern
Standard time) on March 5, 2012 (the "Expiry Date") at a price per Share
(the "Exercise Price") of US$0.60 on the terms and conditions attached
hereto as Appendix "A" (the "Terms and Conditions"). 

	 	1. 	
      ONE (1) WARRANT AND THE EXERCISE PRICE ARE REQUIRED TO
      PURCHASE ONE (1) SHARE. THIS CERTIFICATE REPRESENTS 1,000,000
    WARRANTS.

	 	 	 
	 	2. 	
      These Warrants are issued subject to the Terms and
      Conditions, and the Warrant Holder may exercise the right to purchase
      Shares only in accordance with those Terms and Conditions.

	 	 	 
	 	3. 	
      Nothing contained herein or in the Terms and Conditions
      will confer any right upon the Holder hereof or any other person to
      subscribe for or purchase any Shares at any time subsequent to the Expiry
      Date, and from and after such time, this Warrant and all rights hereunder
      will be void and of no value.

[Remainder of page intentionally left blank; signature page
to follow.] 

10

IN WITNESS WHEREOF the Company has executed this Warrant
Certificate this ___ day of March, 2010. 

MABCURE INC. 

Per: ______________________________________________
       
Authorized Signatory 

PLEASE NOTE THAT ALL SHARE CERTIFICATES WILL BE LEGENDED AS
FOLLOWS DURING THE CURRENCY OF APPLICABLE HOLD PERIODS: 

THE SECURITIES REPRESENTED HEREBY
HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S.
PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"). 

NONE OF THE SECURITIES REPRESENTED
HEREBY HAVE BEEN REGISTERED UNDER THE 1933 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 1933 ACT, PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE
SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. "UNITED
STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.

  11

Appendix "A" 

TERMS AND CONDITIONS dated March 5, 2010, attached to the
Warrants issued by MabCure Inc. 

1.         
INTERPRETATION 

1.1        Definitions 

In these Terms and Conditions, unless there is something in the
subject matter or context inconsistent therewith: 

	 	(a) 	
      "Company" means MABCURE INC. until a successor
      corporation will have become such as a result of consolidation,
      amalgamation or merger with or into any other corporation or corporations,
      or as a result of the conveyance or transfer of all or substantially all
      of the properties and estates of the Company as an entirety to any other
      corporation and thereafter "Company" will mean such successor
      corporation;

	 	 	 
	 	(b) 	
      "Company’s Auditors" means an independent firm of
      accountants duly appointed as auditors of the Company;

	 	 	 
	 	(c) 	
      "Director" means a director of the Company for the time
      being, and reference, without more, to action by the directors means
      action by the directors of the Company as a board, or whenever duly
      empowered, action by an executive committee of the board;

	 	 	 
	 	(d) 	
      "herein", "hereby" and similar expressions refer to these
      Terms and Conditions as the same may be amended or modified from time to
      time; and the expression "Article" and "Section," followed by a number
      refer to the specified Article or Section of these Terms and
      Conditions;

	 	 	 
	 	(e) 	
      "person" means an individual, corporation, partnership,
      trustee or any unincorporated organization and words importing persons
      have a similar meaning;

	 	 	 
	 	(f) 	
      "shares" means the shares in the common stock of the
      Company as constituted at the date hereof and any shares resulting from
      any subdivision or consolidation of the shares;

	 	 	 
	 	(g) 	
      "Warrant Holders" or "Holders" means the holders of the
      Warrants; and

	 	 	 
	 	(h) 	
      "Warrants" means the warrants of the Company issued and
      presently authorized and for the time being
outstanding.

1.2        Gender

Words importing the singular number include the plural and vice
versa and words importing the masculine gender include the feminine and neuter
genders. 

1.3        Interpretation
not affected by Headings 

The division of these Terms and Conditions into Articles and
Sections, and the insertion of headings are for convenience of reference only
and will not affect the construction or interpretation thereof. 

1.4        Applicable
Law 

The Warrants will be construed in accordance with the laws of
the State of Nevada. 

2.        
 ISSUE OF WARRANTS

2.1        Additional
Warrants 

The Company may at any time and from time to time issue
additional warrants or grant options or similar rights to purchase shares of its
capital stock. 

2.2        Warrant to
Rank Pari Passu 

  12

All Warrants and additional warrants, options or similar rights
to purchase shares from time to time issued or granted by the Company, will rank
pari passu whatever may be the actual dates of issue or grant thereof, or
of the dates of the certificates by which they are evidenced. 

2.3        Issue in
substitution for Lost Warrants 

	 	(a) 	
      If a Warrant certificate becomes mutilated, lost,
      destroyed or stolen, the Company, at its discretion, may issue and deliver
      a new certificate of like date and tenor as the one mutilated, lost,
      destroyed or stolen, in exchange for and in place of and upon cancellation
      of such mutilated certificate, or in lieu of, and in substitution for such
      lost, destroyed or stolen certificate and the Warrants represented by such
      substituted certificate will be entitled to the benefit hereof and rank
      equally in accordance with its terms with all other Warrants issued or to
      be issued by the Company.

	 	 	 
	 	(b) 	
      The applicant for the issue of a new Warrant certificate
      pursuant hereto will bear the cost of the issue thereof and in case of
      loss, destruction or theft furnish to the Company such evidence of
      ownership and of loss, destruction, or theft of the certificate so lost,
      destroyed or stolen as will be satisfactory to the Company in its
      discretion and such applicant may also be required to furnish indemnity in
      amount and form satisfactory to the Company in its discretion, and will
      pay the reasonable charges of the Company in connection
  therewith.

2.4        Warrant Holder
Not a Shareholder 

The holding of a Warrant will not constitute the Holder thereof
a shareholder of the Company, nor entitle it to any right or interest in respect
thereof except as in the Warrant expressly provided. 

3.        
 NOTICE 

3.1        Notice to
Warrant Holders 

Any notice required or permitted to be given to the Holders
will be in writing and may be given by prepaid registered post, electronic
facsimile transmission or other means of electronic communication capable of
producing a printed copy to the address of the Holder appearing on the Holder’s
Warrant certificate or to such other address as any Holder may specify by notice
in writing to the Company, and any such notice will be deemed to have been given
and received by the Holder to whom it was addressed if mailed, on the third day
following the mailing thereof, if by facsimile or other electronic
communication, on successful transmission, or, if delivered, on delivery; but,
if at the time or mailing or between the time of mailing and the third business
day thereafter there is a strike, lockout, or other labor disturbance affecting
postal service, then the notice will not be effectively given until actually
delivered. 

3.2        Notice to the
Company 

Any notice required or permitted to be given to the Company
will be in writing and may be given by prepaid registered post, electronic
facsimile transmission or other means of electronic communication capable of
producing a printed copy to the address of the Company set forth below or such
other address as the Company may specify by notice in writing to the Holder, and
any such notice will be deemed to have been given and received by the Company to
whom it was addressed if mailed, on the third day following the mailing thereof,
if by facsimile or other electronic communication, on successful transmission,
or, if delivered, on delivery; but, if at the time or mailing or between the
time of mailing and the third business day thereafter there is a strike,
lockout, or other labor disturbance affecting postal service, then the notice
will not be effectively given until actually delivered: 

MABCURE INC. 
De Schiervellaan 3/B1

3500 Hasselt 

  Belgium 

Attention: President 

Fax No. [Insert number] 

with a copy to: 
SRK Law Offices

Rabin Science Park 
12 HaMada Street 

  Rehovot, Israel 76773 

13

Attention: Steve Kronengold 

Fax: + (972) 8-936-6000 

4.         
EXERCISE OF WARRANTS 

4.1        Method of
Exercise of Warrants 

The right to purchase shares conferred by the Warrants may be
exercised by the Holder surrendering the Warrant certificate representing same,
with a duly completed and executed subscription in the form attached hereto and
a wire transfer to the Company, for the purchase price applicable at the time of
surrender in respect of the shares subscribed for in lawful money of the United
States of America, to the Company at the address set forth in, or from time to
time specified by the Company pursuant to, Section 3.2 hereof. 

4.2        Effect of
Exercise of Warrants 

	 	(a) 	
      Upon surrender and payment as aforesaid the shares so
      subscribed for will be deemed to have been issued and such person or
      persons will be deemed to have become the Holder or Holders of record of
      such shares on the date of such surrender and payment, and such shares
      will be issued at the subscription price in effect on the date of such
      surrender and payment.

	 	 	 
	 	(b) 	
      Within ten business days after surrender and payment as
      aforesaid, the Company will forthwith cause to be delivered to the person
      or persons in whose name or names the shares so subscribed for are to be
      issued as specified in such subscription or mailed to him or them at his
      or their respective addresses specified in such subscription, a
      certificate or certificates for the appropriate number of shares not
      exceeding those which the Warrant Holder is entitled to purchase pursuant
      to the Warrant surrendered.

4.3        Subscription
for Less Than Entitlement 

The Holder of any Warrant may subscribe for and purchase a
number of shares less than the number which he is entitled to purchase pursuant
to the surrendered Warrant. In the event of any purchase of a number of shares
less than the number which can be purchased pursuant to a Warrant, the Holder
thereof upon exercise thereof will in addition be entitled to receive a new
Warrant in respect of the balance of the shares which he was entitled to
purchase pursuant to the surrendered Warrant and which were not then purchased.

4.4        Warrants for
Fractions of Shares 

To the extent that the Holder of any Warrant is entitled to
receive on the exercise or partial exercise thereof a fraction of a share, such
right may be exercised in respect of such fraction only in combination with
another Warrant or other Warrants which in the aggregate entitle the Holder to
receive a whole number of such shares. 

4.5        Expiration of
Warrants 

After the expiration of the period within which a Warrant is
exercisable, all rights thereunder will wholly cease and terminate and such
Warrant will be void and of no effect. 

4.6        Time of
Essence

Time will be of the essence hereof. 

4.7        Subscription
Price 

Each Warrant is exercisable at a price per share (the
"Exercise Price") of US$0.60. One (1) Warrant and the Exercise Price are
required to subscribe for each share during the term of the Warrants. 

4.8        Adjustment of
Exercise Price 

	 	(a) 	
      The Exercise Price and the number of shares deliverable
      upon the exercise of the Warrants will be subject to adjustment in the
      event and in the manner following:

	 	 	 	 
	 		(i) 	
      If and whenever the shares at any time outstanding are
      subdivided into a greater or consolidated into a lesser number of shares
      the Exercise Price will be decreased or increased

14

	 		
      proportionately as the case may be; upon any such
      subdivision or consolidation the number of shares deliverable upon the
      exercise of the Warrants will be increased or decreased proportionately as
      the case may be; or

	 	 	 
	 	(ii) 	
      In case of any capital reorganization or of any
      reclassification of the capital of the Company or in the case of the
      consolidation, merger or amalgamation of the Company with or into any
      other Company (hereinafter collectively referred to as a
      "Reorganization"), each Warrant will after such Reorganization
      confer the right to purchase the number of shares or other securities of
      the Company (or of the Company’s resulting from such Reorganization) which
      the Warrant Holder would have been entitled to upon Reorganization if the
      Warrant Holder had been a shareholder at the time of such
      Reorganization.

	 	 	 
	 		
      In any such case, if necessary, appropriate adjustments
      will be made in the application of the provisions of this Article Four
      relating to the rights and interest thereafter of the Holders of the
      Warrants so that the provisions of this Article Four will be made
      applicable as nearly as reasonably possible to any shares or other
      securities deliverable after the Reorganization on the exercise of the
      Warrants.

	 	 	 
	 		
      The subdivision or consolidation of shares at any time
      outstanding into a greater or lesser number of shares (whether with or
      without par value) will not be deemed to be a Reorganization for the
      purposes of this clause 4.8(a)(ii).

	 	(b) 	
      The adjustments provided for in this Section 4.8 are
      cumulative and will become effective immediately after the record date or,
      if no record date is fixed, the effective date of the event which results
      in such adjustments.

4.9        Determination
of Adjustments 

If any questions will at any time arise with respect to the
Exercise Price or any adjustment provided for in Section 4.8 hereof, such
questions will be conclusively determined by the Company’s Auditors, or, if they
decline to so act any other firm of certified public accountants in the United
States of America that the Company may designate and who will have access to all
appropriate records and such determination will be binding upon the Company and
the Holders of the Warrants. 

5.         
COVENANTS BY THE COMPANY 

5.1        Reservation of
Shares 

The Company will reserve and there will remain unissued out of
its authorized capital a sufficient number of shares to satisfy the rights of
purchase provided for herein and in the Warrants should the Holders of all the
Warrants from time to time outstanding determine to exercise such rights in
respect of all shares which they are or may be entitled to purchase pursuant
thereto and hereto. 

6.         
WAIVER OF CERTAIN RIGHTS 

6.1        Immunity of
Shareholders, etc. 

The Warrant Holder, as part of the consideration for the issue
of the Warrants, waives and will not have any right, cause of action or remedy
now or hereafter existing in any jurisdiction against any past, present or
future incorporator, shareholder, Director or Officer (as such) of the Company
for the issue of shares pursuant to any Warrant or on any covenant, agreement,
representation or warranty by the Company herein contained or in the Warrant.

7.        
 MODIFICATION OF TERMS, MERGER, SUCCESSORS 

7.1        Modification
of Terms and Conditions for Certain Purposes 

From time to time the Company may, subject to the provisions of
these presents, modify the Terms and Conditions hereof, for the purpose of
correction or rectification of any ambiguities, defective provisions, errors or
omissions herein. 

  15

7.2        Warrants Not
Transferable 

The Warrants and all rights attached to it are not
transferable. 

DATED as of the date first above written in these Terms and
Conditions. 

MABCURE INC. 

By:
________________________________________
Authorized Signatory 

16

EXHIBIT "B" 

THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN
OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN)
PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE "1933 ACT"). 

NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN
REGISTERED UNDER THE 1933 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 1933 ACT, PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE
CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. "UNITED STATES" AND "U.S.
PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT. 

THESE WARRANTS WILL EXPIRE AND BECOME NULL AND VOID 

  AT 4:30 P.M. (EASTER STANDARD TIME) ON MARCH 5, 2012. 

SHARE PURCHASE WARRANTS 
TO PURCHASE COMMON SHARES OF

  MABCURE INC. 

incorporated in the State of Nevada 

CERTIFICATE NO.:______________                                                                                                   March
  5, 2010 

            THIS
IS TO CERTIFY THAT _____________________, (the "Holder") of
_____________________, has the right to purchase, upon and subject to the terms
and conditions hereinafter referred to, up to 1,000,000 fully paid and
non-assessable shares (the "Shares") in the common stock of MABCURE INC.
(hereinafter called the "Company") on or before 4:30 p.m. (Eastern
Standard time) on March 5, 2012 (the "Expiry Date") at a price per Share
(the "Exercise Price") of US$0.70 on the terms and conditions attached
hereto as Appendix "A" (the "Terms and Conditions"). 

	 	1. 	
      ONE (1) WARRANT AND THE EXERCISE PRICE ARE REQUIRED TO
      PURCHASE ONE SHARE. THIS CERTIFICATE REPRESENTS 1,000,000
  WARRANTS.

	 	 	 
	 	2. 	
      These Warrants are issued subject to the Terms and
      Conditions, and the Warrant Holder may exercise the right to purchase
      Shares only in accordance with those Terms and Conditions.

	 	 	 
	 	3. 	
      Nothing contained herein or in the Terms and Conditions
      will confer any right upon the Holder hereof or any other person to
      subscribe for or purchase any Shares at any time subsequent to the Expiry
      Date, and from and after such time, this Warrant and all rights hereunder
      will be void and of no value.

[Remainder of page intentionally left blank; signature page
to follow.] 

17

IN WITNESS WHEREOF the Company has executed this Warrant
Certificate this __ day of March, 2010. 

MABCURE INC. 

Per:
__________________________________________
       
Authorized Signatory 

PLEASE NOTE THAT ALL SHARE CERTIFICATES WILL BE LEGENDED AS
FOLLOWS DURING THE CURRENCY OF APPLICABLE HOLD PERIODS: 

THE SECURITIES REPRESENTED HEREBY
HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S.
PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"). 

NONE OF THE SECURITIES REPRESENTED
HEREBY HAVE BEEN REGISTERED UNDER THE 1933 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 1933 ACT, PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE
SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. "UNITED
STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.

  18

Appendix "A" 

TERMS AND CONDITIONS dated March 5, 2010 attached to the
Warrants issued by MABCURE INC. 

1.         
INTERPRETATION 

1.1       
Definitions 

In these Terms and Conditions, unless there is something in the
subject matter or context inconsistent therewith: 

	 	(a) 	
      "Company" means MABCURE INC. until a successor
      corporation will have become such as a result of consolidation,
      amalgamation or merger with or into any other corporation or corporations,
      or as a result of the conveyance or transfer of all or substantially all
      of the properties and estates of the Company as an entirety to any other
      corporation and thereafter "Company" will mean such successor
      corporation;

	 	 	 
	 	(b) 	
      "Company’s Auditors" means an independent firm of
      accountants duly appointed as auditors of the Company;

	 	 	 
	 	(c) 	
      "Director" means a director of the Company for the time
      being, and reference, without more, to action by the directors means
      action by the directors of the Company as a board, or whenever duly
      empowered, action by an executive committee of the board;

	 	 	 
	 	(d) 	
      "herein", "hereby" and similar expressions refer to these
      Terms and Conditions as the same may be amended or modified from time to
      time; and the expression "Article" and "Section," followed by a number
      refer to the specified Article or Section of these Terms and
      Conditions;

	 	 	 
	 	(e) 	
      "person" means an individual, corporation, partnership,
      trustee or any unincorporated organization and words importing persons
      have a similar meaning;

	 	 	 
	 	(f) 	
      "shares" means the shares in the common stock of the
      Company as constituted at the date hereof and any shares resulting from
      any subdivision or consolidation of the shares;

	 	 	 
	 	(g) 	
      "Warrant Holders" or "Holders" means the holders of the
      Warrants; and

	 	 	 
	 	(h) 	
      "Warrants" means the warrants of the Company issued and
      presently authorized and for the time being
outstanding.

1.2        Gender

Words importing the singular number include the plural and vice
versa and words importing the masculine gender include the feminine and neuter
genders. 

1.3        Interpretation
not affected by Headings 

The division of these Terms and Conditions into Articles and
Sections, and the insertion of headings are for convenience of reference only
and will not affect the construction or interpretation thereof. 

1.4        Applicable
Law 

The Warrants will be construed in accordance with the laws of
the State of Nevada. 

2.        
 ISSUE OF WARRANTS 

2.1        Additional
Warrants 

The Company may at any time and from time to time issue
additional warrants or grant options or similar rights to purchase shares of its
capital stock. 

2.2        Warrant to
Rank Pari Passu 

19

All Warrants and additional warrants, options or similar rights
to purchase shares from time to time issued or granted by the Company, will rank
pari passu whatever may be the actual dates of issue or grant thereof, or
of the dates of the certificates by which they are evidenced. 

2.3        Issue in
substitution for Lost Warrants 

	 	(a) 	
      If a Warrant certificate becomes mutilated, lost,
      destroyed or stolen, the Company, at its discretion, may issue and deliver
      a new certificate of like date and tenor as the one mutilated, lost,
      destroyed or stolen, in exchange for and in place of and upon cancellation
      of such mutilated certificate, or in lieu of, and in substitution for such
      lost, destroyed or stolen certificate and the Warrants represented by such
      substituted certificate will be entitled to the benefit hereof and rank
      equally in accordance with its terms with all other Warrants issued or to
      be issued by the Company.

	 	 	 
	 	(b) 	
      The applicant for the issue of a new Warrant certificate
      pursuant hereto will bear the cost of the issue thereof and in case of
      loss, destruction or theft furnish to the Company such evidence of
      ownership and of loss, destruction, or theft of the certificate so lost,
      destroyed or stolen as will be satisfactory to the Company in its
      discretion and such applicant may also be required to furnish indemnity in
      amount and form satisfactory to the Company in its discretion, and will
      pay the reasonable charges of the Company in connection
  therewith.

2.4        Warrant Holder
Not a Shareholder 

The holding of a Warrant will not constitute the Holder thereof
a shareholder of the Company, nor entitle it to any right or interest in respect
thereof except as in the Warrant expressly provided. 

3.        
 NOTICE 

3.1        Notice to
Warrant Holders 

Any notice required or permitted to be given to the Holders
will be in writing and may be given by prepaid registered post, electronic
facsimile transmission or other means of electronic communication capable of
producing a printed copy to the address of the Holder appearing on the Holder’s
Warrant certificate or to such other address as any Holder may specify by notice
in writing to the Company, and any such notice will be deemed to have been given
and received by the Holder to whom it was addressed if mailed, on the third day
following the mailing thereof, if by facsimile or other electronic
communication, on successful transmission, or, if delivered, on delivery; but,
if at the time or mailing or between the time of mailing and the third business
day thereafter there is a strike, lockout, or other labor disturbance affecting
postal service, then the notice will not be effectively given until actually
delivered. 

3.2        Notice to the
Company 

Any notice required or permitted to be given to the Company
will be in writing and may be given by prepaid registered post, electronic
facsimile transmission or other means of electronic communication capable of
producing a printed copy to the address of the Company set forth below or such
other address as the Company may specify by notice in writing to the Holder, and
any such notice will be deemed to have been given and received by the Company to
whom it was addressed if mailed, on the third day following the mailing thereof,
if by facsimile or other electronic communication, on successful transmission,
or, if delivered, on delivery; but, if at the time or mailing or between the
time of mailing and the third business day thereafter there is a strike,
lockout, or other labor disturbance affecting postal service, then the notice
will not be effectively given until actually delivered: 

MABCURE INC. 
De Schiervellaan 3/B1

3500 Hasselt 

  Belgium 

Attention: President 

Fax No. [insert number] 

with a copy to: 
SRK Law Offices

Rabin Science Park 
12 HaMada Street 

  Rehovot, Israel 76773 

20

Attention: Steve Kronengold 

Fax: + (972) 8-936-6000 

4.         
EXERCISE OF WARRANTS 

4.1        Method of
Exercise of Warrants 

The right to purchase shares conferred by the Warrants may be
exercised by the Holder surrendering the Warrant certificate representing same,
with a duly completed and executed subscription in the form attached hereto and
a wire transfer to the Company, for the purchase price applicable at the time of
surrender in respect of the shares subscribed for in lawful money of the United
States of America, to the Company at the address set forth in, or from time to
time specified by the Company pursuant to, Section 3.2 hereof. 

4.2        Effect of
Exercise of Warrants 

	 	(a) 	
      Upon surrender and payment as aforesaid the shares so
      subscribed for will be deemed to have been issued and such person or
      persons will be deemed to have become the Holder or Holders of record of
      such shares on the date of such surrender and payment, and such shares
      will be issued at the subscription price in effect on the date of such
      surrender and payment.

	 	 	 
	 	(b) 	
      Within ten business days after surrender and payment as
      aforesaid, the Company will forthwith cause to be delivered to the person
      or persons in whose name or names the shares so subscribed for are to be
      issued as specified in such subscription or mailed to him or them at his
      or their respective addresses specified in such subscription, a
      certificate or certificates for the appropriate number of shares not
      exceeding those which the Warrant Holder is entitled to purchase pursuant
      to the Warrant surrendered.

4.3        Subscription
for Less Than Entitlement 

The Holder of any Warrant may subscribe for and purchase a
number of shares less than the number which he is entitled to purchase pursuant
to the surrendered Warrant. In the event of any purchase of a number of shares
less than the number which can be purchased pursuant to a Warrant, the Holder
thereof upon exercise thereof will in addition be entitled to receive a new
Warrant in respect of the balance of the shares which he was entitled to
purchase pursuant to the surrendered Warrant and which were not then purchased.

4.4        Warrants for
Fractions of Shares 

To the extent that the Holder of any Warrant is entitled to
receive on the exercise or partial exercise thereof a fraction of a share, such
right may be exercised in respect of such fraction only in combination with
another Warrant or other Warrants which in the aggregate entitle the Holder to
receive a whole number of such shares. 

4.5        Expiration of
Warrants 

After the expiration of the period within which a Warrant is
exercisable, all rights thereunder will wholly cease and terminate and such
Warrant will be void and of no effect. 

4.6        Time of
Essence 

Time will be of the essence hereof. 

4.7        Subscription
Price 

Each Warrant is exercisable at a price per share (the
"Exercise Price") of US$0.70. One (1) Warrant and the Exercise Price are
required to subscribe for each share during the term of the Warrants. 

4.8        Adjustment of
Exercise Price 

	 	(a) 	
      The Exercise Price and the number of shares deliverable
      upon the exercise of the Warrants will be subject to adjustment in the
      event and in the manner following:

	 	(i) 	
      If and whenever the shares at any time outstanding are
      subdivided into a greater or

21

	 		
      consolidated into a lesser number of shares the Exercise
      Price will be decreased or increased proportionately as the case may be;
      upon any such subdivision or consolidation the number of shares
      deliverable upon the exercise of the Warrants will be increased or
      decreased proportionately as the case may be, or

	 	 	 
	 	(ii) 	
      In case of any capital reorganization or of any
      reclassification of the capital of the Company or in the case of the
      consolidation, merger or amalgamation of the Company with or into any
      other Company (hereinafter collectively referred to as a
      "Reorganization"), each Warrant will after such Reorganization
      confer the right to purchase the number of shares or other securities of
      the Company (or of the Company’s resulting from such Reorganization) which
      the Warrant Holder would have been entitled to upon Reorganization if the
      Warrant Holder had been a shareholder at the time of such
      Reorganization.

	 	 	 
	 		
      In any such case, if necessary, appropriate adjustments
      will be made in the application of the provisions of this Article 4
      relating to the rights and interest thereafter of the Holders of the
      Warrants so that the provisions of this Article Four will be made
      applicable as nearly as reasonably possible to any shares or other
      securities deliverable after the Reorganization on the exercise of the
      Warrants.

	 	 	 
	 		
      The subdivision or consolidation of shares at any time
      outstanding into a greater or lesser number of shares (whether with or
      without par value) will not be deemed to be a Reorganization for the
      purposes of this clause 11.8.

	 	(b) 	
      The adjustments provided for in this Section 4.8 are
      cumulative and will become effective immediately after the record date or,
      if no record date is fixed, the effective date of the event which results
      in such adjustments.

4.9        Determination
of Adjustments 

If any questions will at any time arise with respect to the
Exercise Price or any adjustment provided for in Section 4.8, such questions
will be conclusively determined by the Company’s Auditors, or, if they decline
to so act any other firm of certified public accountants in the United States of
America that the Company may designate and who will have access to all
appropriate records and such determination will be binding upon the Company and
the Holders of the Warrants. 

5.         
COVENANTS BY THE COMPANY 

5.1        Reservation of
Shares 

The Company will reserve and there will remain unissued out of
its authorized capital a sufficient number of shares to satisfy the rights of
purchase provided for herein and in the Warrants should the Holders of all the
Warrants from time to time outstanding determine to exercise such rights in
respect of all shares which they are or may be entitled to purchase pursuant
thereto and hereto. 

6.         
WAIVER OF CERTAIN RIGHTS 

6.1        Immunity of
Shareholders, etc. 

The Warrant Holder, as part of the consideration for the issue
of the Warrants, waives and will not have any right, cause of action or remedy
now or hereafter existing in any jurisdiction against any past, present or
future incorporator, shareholder, Director or Officer (as such) of the Company
for the issue of shares pursuant to any Warrant or on any covenant, agreement,
representation or warranty by the Company herein contained or in the Warrant.

7.         
MODIFICATION OF TERMS, MERGER, SUCCESSORS 

7.1        Modification
of Terms and Conditions for Certain Purposes 

From time to time the Company may, subject to the provisions of
these presents, modify the Terms and Conditions hereof, for the purpose of
correction or rectification of any ambiguities, defective provisions, errors or
omissions herein. 

7.2        Warrants Not
Transferable

22

The Warrants and all rights attached to it are not
transferable. 

DATED as of the date first above written in these Terms and
Conditions. 

MABCURE INC. 

By:  
_________________________________________
Authorized Signatory 

23omni10k123109x105_332010.htm

     Exhibit 10.5

    
      
 

      
        EXECUTIVE
EMPLOYMENT AGREEMENT

         

        

         

        This
Executive Employment Agreement (the “Employment
Agreement”) is made as of February 15th, 2010 (the “Effective
Date”) by and between Dave
Litzen (“Executive”)
and KL ENERGY
CORPORATION,
a Nevada corporation (hereinafter, along with its parent, subsidiaries and
affiliates, referred to as the “Company”),
and amends and restates all previous Employment Agreements by and between
Executive and the Company (the “Original
Agreement”).

         

        Recitals

         

        Whereas,
Executive is a key executive employee of the Company and has become and will
continue to be intimately familiar with the Company’s plans, trade secrets,
proprietary information, business activities and operations;

         

        Whereas,
Executive’s past experience and skills make him singularly qualified to render
special, unique, unusual and extraordinary services to the Company;

         

        Whereas,
the Company desires to employ Executive to provide executive-level employment
services and to provide Executive with certain compensation and benefits in
return for such services;

         

        Whereas,
Executive wishes to be employed by the Company and provide employment services
in return for certain compensation and benefits;

         

        Now,
Therefore, in consideration of the mutual promises and covenants
contained herein, the Company and Executive agree to the below
terms.

         

        Agreement

         

        1.         Term; Employment; Position and
Responsibilities.

         

        1.1           Term.  The
term of this Employment Agreement shall be three (3) years from the Effective
Date (the “Initial Term”). The Term may be extended only upon written agreement
of the Company and Executive prior to the end of the Initial Term (such extended
period, together with the Interim Term, to be referred to as the
“Term”).

         

        1.2           Role. Executive agrees to
serve as the Company’s Vice President of Engineering and Chief
Technical Officer and to perform all duties and responsibilities
associated with that position consistent with the Company’s Bylaws, as may be
amended from time to time (the “Bylaws”)
and as directed by Executive’s supervisor. Executive shall report to President and Chief Executive
Officer in this role.  Executive agrees to devote all of his
professional time, attention, skill and best efforts to the performance of his
duties hereunder, except for permitted vacation periods and reasonable periods
of illness or other incapacity.  Executive shall perform his duties,
responsibilities and functions to the Company hereunder to the best of his
abilities in a diligent, trustworthy, professional and efficient manner and
shall comply with the Company’s policies and procedures in all material
respects.  While an employee of the Company, Executive shall not serve
as an officer or director of, or otherwise perform

         

        
          
             

          

          
            Exhibit
10.5 Page 1

            
              

            

          

          
             

          

        

        services
for compensation for, any other entity without the prior written consent of
Executive’s supervisor (which may be given or withheld in his/her sole
discretion); provided, that Executive may, with the prior written approval of
Executive’s supervisor, serve as an officer or director of, or otherwise
participate in, purely educational, welfare, social, religious and civic
organizations, in each case so long as such activities do not interfere with
Executive's employment.  Executive acknowledges and agrees that he may
become an employee of a direct or indirect parent, subsidiary or other affiliate
of KL Energy Corp., and that the terms and conditions of this Agreement shall
apply to Executive as an employee of any such other entity, and that all such
entities are included in the term “Company,” as used herein..

         

        1.3           Employment Policies.
Executive’s employment shall also be governed by the general employment
policies and practices of the Company in effect from time to time, except that
when the terms of this Employment Agreement differ from or are in conflict with
such general employment policies or practices, this Employment Agreement shall
control.

         

        1.4           Other Agreements. Executive represents and
warrants that he has disclosed to the Company the existence of any and all
non-solicitation, confidentiality, and/or non-competition agreements to which
Executive is a party and that Executive is not under an obligation to any other
person or entity that would interfere or conflict with his employment with the
Company or the performance of his duties hereunder.

         

        

        2.           Compensation.

         

        2.1           Base Salary.  As
compensation for his services hereunder, the Company shall pay Executive a base
salary of $139,725 per year (“Base Salary”). The Executive’s salary will be
reinstated to $155,250 per year (“110% Base Salary”) which was the salary level
prior to the Company-wide 10% pay adjustment in November 2008 on the event of
the company signing a service contract with for the pending bagasse testing with
a Brazilian company. Executive’s performance may be reviewed by Executive’s
supervisor each calendar year.  The supervisor may adjust the
Executive’s Base Salary concurrent with the administration of the performance
review, or at any other time (to reflect cost of living changes or otherwise),
in its sole discretion, subject to the severance provisions set forth in Section
4 below.

         

        2.2           Bonus.

         

        (a)           Annual
Bonus.      During each calendar year during the
Term, Executive shall be eligible to earn a cash performance bonus of up to 100%
of Base Salary (the “Bonus”),
which Bonus shall be earned and paid in the sole discretion of the Company’s
Board of Directors.

         

        (b)           Equity Incentive
Scheme.  Executive may also be eligible to participate in any
equity incentive plan or arrangement that may be adopted from time to time by
the Board of Directors of the Company’s.  To the extent Executive is
eligible and the Board if Directors determines that Executive is to be granted
any type of equity incentive, the Company and Executive will enter into a
separate agreement setting forth the terms and conditions of such
participation.

        
          
             

          

          
            Exhibit
10.5 Page 2

            
              

            

          

          
             

          

        

        
 

        2.3           Tax
Treatment.  Executive’s Base Salary and Bonus (if earned) and
any other compensation (including severance benefits) payable to Executive in
consideration for his employment services shall be paid by the Company subject
to applicable payroll withholdings and deductions, reportable on a Form W-2
annually.  Executive’s Base Salary shall be paid on the Company’s
customary payroll payment schedule, as may be modified from time to
time.

         

        3.           Benefits.

         

        3.1           Business
Expenses.  The Company shall reimburse Executive for all
reasonable, documented business expenses incurred in connection with his
services hereunder, in accordance with the Company’s business expense
reimbursement policies and procedures in effect from time to time.

         

        3.2           Paid Leave
Benefits.  Beginning on January 1, 2010, Executive shall accrue
twenty (20) days of paid vacation each calendar year, to be taken at such times
as mutually agreed with Executive’s supervisor.  Executive shall also
be entitled to paid holiday leave in accordance with the Company’s governing
holiday schedule.  All vacation (i) shall be accrued on a monthly
basis, in accordance with the Company’s vacation policies and procedures, as may
be amended from time to time, and (ii) must be taken during the calendar year
accrued, or it will be forfeited.

         

        3.3           Standard
Benefits.  Executive shall be entitled to participate in all
benefits plans and programs the Company makes available to its salaried
employees generally, on the same terms and conditions governing those plans as
in effect from time to time.

         

        3.4           Other
Benefits. To the extent not paid by the Company under Section 3.3, Executive
also shall be entitled to receive full reimbursement for the premium costs of
coverage for Executive (but not Executive’s family and dependents), under the
Company’s medical and dental plans.

         

        3.5           D&O
Insurance.      To the extent that the Company
has any Director and Officer Liability Insurance coverage, Executive will be
covered under such policy as it exists from time to time.  If
Executive serves as a director of the Company, or as a director or officer of
any subsidiary, parent or other affiliate of the Company, he will serve in such
capacity without additional compensation from the Company.

         

        3.6           Changes to
Benefits.    The Company reserves the right to supplement,
discontinue or change its benefit and bonus plans and programs from time to
time, in its sole discretion.

         

        4.           At Will Employment; Severance
Benefits.

         

        4.1           At Will Status. Executive’s
employment with the Company shall be on an “at will”
basis.  Accordingly, both Executive and the Company retain the right
to terminate the employment relationship at any time, with or without Good
Reason or Cause, and with or without advance notice, subject to the terms set
forth herein.  The Company, however, requests that Executive provide
ninety (90) days advance notice of his intention to resign to allow for an
orderly transition.

         

        
          
             

          

          
            Exhibit
10.5 Page 3

            
              

            

          

          
             

          

        

         

        4.2           Final Pay. Upon termination of
Executive’s employment for any reason, the Company shall pay Executive all
earned but unpaid salary, and all accrued but unused vacation earned by
Executive through and including the date his employment terminates (the “Termination
Date”), subject to applicable payroll deductions, in accordance with
governing law.  Executive shall not be entitled to any severance
benefits or other compensation from the Company after the Termination Date,
except as expressly provided herein or as may be required by law.

         

        4.3           Severance Benefits.

         

        (a)           Termination Not for Cause or for Good
Reason.  If, during the Term, Executive resigns for Good Reason
or is terminated by the Company without Cause (each a “Covered
Termination”), Executive will be eligible to receive, as
severance:

         

        (i)           
four (4) months of Executive’s Base Salary, less applicable withholdings and
deductions; and

         

        (ii)           at
the sole discretion of the Board of Directors (as to both amount of and payment
date for), a Bonus for the calendar year in which the Termination Date occurs,
pro-rated to reflect the portion of the calendar year for which the Executive
was employed by the Company;

         

        “Good Reason” for Executive to
resign his employment shall exist if any of the following occurs without
Executive’s consent: (1) Executive’s Base Salary is reduced below the Base
Salary rate in effect as of the Effective Date but excluding any reduction made
by the Company in good faith as a result of a material decline in the Company’s
financial performance as compared to its financial performance for the prior
fiscal year; (2) Executive’s position, authority and responsibilities, taken as
a whole, are materially diminished; (3) Executive is required to relocate
Executive’s principal office to a location 50 miles or more from his current
location; or (4) any material breach by the Company of the terms of this
Employment Agreement.  To resign for Good Reason, Executive must
notify the Company in writing of the specific act(s) or event(s) which give rise
to Good Reason within thirty (30) days of Executive’s knowledge of the
occurrence of such act(s) or event(s) and give the Company thirty (30) days to
cure.

        

        (b)           Termination upon Death or
Disability.  If, during the term, Executive dies or Executive’s
employment is terminated because Executive has become Disabled, Executive will
be eligible to receive (1) six (6) months of severance and (2), at the sole
discretion of the Board of Directors (as to both amount of and payment date
for), a Bonus for the calendar year in which the Termination Date occurs,
pro-rated to reflect the portion of the calendar year for which the Executive
was employed by the Company.

         

        
          
             

          

          
            Exhibit
10.5 Page 4

            
              

            

          

          
             

          

        

        (c)           Amounts
payable to Executive under Section 4.3(a) or (b) (the “Severance
Pay”) shall be paid in equal installments on the Company’s customary
payroll pay dates or at the Company’s discretion, in one or more lump sum
payments. As a precondition to receiving any Severance Pay, Executive agrees
that Executive must provide the Company with a signed, effective Release of
Claims in substantially the form attached hereto as Exhibit A (the “Release”).
Severance Pay shall commence on the first payroll pay date after the Company
receives the fully executed release from the Executive and the Release becomes
effective by its terms.

         

        (d)           Termination for Cause. If,
during the Term, Executive is terminated for Cause, he shall have no right to
any severance benefits of any kind or nature.  Additionally,
notwithstanding the terms and conditions of any equity incentive plan or
arrangement under which Executive may receive an equity incentive award, right
or option, effective immediately upon the Terminate Date, such award, right or
option shall immediately, with no further action by the Company, terminate and
no longer be exercisable by Executive. “Cause” to
terminate Executive’s employment shall exist if, in the reasonable determination
of the Company, any one of the following has occurred: (1) Executive’s
misappropriation of a material business opportunity of the Company, including
securing any personal profit in connection with any transaction entered into on
behalf of the Company; (2) Executive’s participation in any act of fraud or
dishonesty against the Company or any of its affiliated entities; (3)
Executive’s willful neglect and/or unreasonable refusal to perform his duties as
set forth in this Employment Agreement; (4) Executive’s material breach of the
terms of this Employment Agreement or any other agreement between Executive and
the Company; (5) Executive’s conviction of, or an entry of a pleading of guilty
or no contest to a felony or any crime involving moral turpitude, fraud, theft,
embezzlement or dishonesty; (6) misconduct by Executive that demonstrates gross
unfitness to serve; and/or (7) Executive’s breach of the duties of care or
loyalty to the Company; provided that the Company shall give Executive thirty
(30) days’ written notice and opportunity to cure prior to any termination for
Cause based on the grounds specified in subsections (3) and (7),
above..

         

        5.           Proprietary
Information.  As a condition of employment, Executive must sign
and abide by the terms of the Employee Proprietary Information and Inventions
Assignment Agreement attached hereto as Exhibit B (“Proprietary
Information Agreement”).  To the extent any of the obligations
set forth in the Proprietary Information Agreement conflict with those set forth
in this Employment Agreement, the terms and conditions of the Proprietary
Information Agreement shall control.

         

        6.           NonCompetition
Obligations.  Executive’s obligations under this Employment
Agreement are in addition to Executive’s obligations pursuant to that certain
Noncompetition and Non-Solicitation Agreement attached hereto as Exhibit C (the Noncompetition
Agreement”).  Nothing in this Employment Agreement shall be
construed as limiting or superseding Executive’s obligations under the
Noncompetition Agreement.  Executive’s obligations under the
Noncompetition Agreement shall survive termination of Executive’s employment
with the Company, and shall not be modified, altered, or otherwise effected by
such termination or the reasons for such termination.  To the extent
that any of the obligations set forth in the Noncompetition Agreement conflict
with those set forth in this Employment Agreement, the terms and conditions of
the Noncompetition Agreement shall control.

        
          
             

          

          
            Exhibit
10.5 Page 5

            
              

            

          

          
             

          

        

         

        7.           Notice.  Any notices provided
hereunder must be in writing and shall be deemed effective upon the earlier of
personal delivery (including, personal delivery by facsimile transmission),
delivery by express delivery service (e.g. Federal Express or UPS), or the third
day after mailing by first class mail, to the Company at its primary office
location and to Executive at his address as listed on the Company payroll (which
address may be changed by written notice).

         

        8.           Arbitration.  Except as
provided in Section 9 of this Employment Agreement, Executive and the Company
agree that any and all disputes, claims, or causes of action, in law or equity,
arising from or relating to the enforcement, breach, performance, execution or
interpretation of (i) this Employment Agreement, Release attached here to as
Exhibit A, the
Employee Proprietary Information and Inventions Agreement attached hereto as
Exhibit B, and
the Noncompetition Agreement attached hereto as Exhibit C (the “Operative
Documents”), (ii) Executive’s employment with the Company, and/or (iii)
the termination of that employment (collectively, “Claims”),
shall be resolved, to the fullest extent permitted by law, by final, binding and
(to the extent permitted by law) confidential arbitration in Rapid City, South
Dakota before a single arbitrator with American Arbitration Association (“AAA”) or
its successor, conducted pursuant to the AAA Employment Arbitration Rules and
Mediation Procedures then in effect.  Claims subject to this
arbitration provision shall (a) include, but not be limited to, Claims pursuant
to any federal, state or local law or statute, including (without limitation)
the Age Discrimination in Employment Act, as amended; Title VII of the Civil
Rights Act of 1964, as amended; the Americans With Disabilities Act of 1990; the
federal Fair Labor Standards Act; the applicable state anti-discrimination
statutes and Claims pursuant to any common law, tort law or contract law,
including (without limitation) breach of contract or other promise,
discrimination, harassment, retaliation, wrongful discharge, fraud,
misrepresentation, defamation, and emotional distress, and (b) exclude Claims
that by law are not subject to arbitration.  The arbitrator
shall:  (1) have the authority to compel adequate discovery for the
resolution of all Claims and to award such relief as would otherwise be
permitted by law; and (2) issue a written arbitration decision including the
arbitrator’s essential findings and conclusions and a statement of the
award.  The arbitral panel shall have the power to assign the
responsibility for legal fees of any party to any other party as provided by
law; provided, however, the administrative costs associated with any arbitration
under this Section 8 shall be shared equally by the Executive and by the
Company.  The award of the arbitral panel maybe entered and enforced
as a judgment in any court of competent jurisdiction. Executive and the Company acknowledge
that, by agreeing to this arbitration procedure, both Executive and the Company
waive the right to resolve any Claims through a trial by jury or judge or by
administrative proceeding.

         

        9.           Injunctive
Relief.     In the event of a breach or threatened
breach by the Executive of the provisions of the Employee Proprietary
Information and Inventions Agreement attached hereto as Exhibit B, and the
Noncompetition Agreement attached hereto as Exhibit C, the
Executive and/or the Company irrevocably and unconditionally consent to submit
to the jurisdiction of the state or federal courts located in Rapid City, South
Dakota, for any action to obtain a temporary restraining order or preliminary
injunction, and waive any objection to venue or jurisdiction of those courts;
provided, however, that the merits of such action, and a final

         

        
          
             

          

          
            Exhibit
10.5 Page 6

            
              

            

          

          
             

          

        

        judgment
on the action, shall be submitted to arbitration as provided in Section 8 above.
Executive further acknowledges and agrees that any breach or threatened breach
of the Employee Proprietary Information and Inventions Agreement attached hereto
as Exhibit B,
and/or the Noncompetition Agreement attached hereto as Exhibit C may cause
irreparable injury to the Company for which an adequate remedy may not available
at law and that Company may elect to pursue injunctive relief to prohibit such
breach.  Nothing herein shall be construed as prohibiting the Company
from pursuing any other remedies available to the Company for such breach or
threatened breach at law or in equity, including the recovery of monetary
damages from the Executive.  The Executive acknowledges that the
possible restrictions on his activities which occur as a result of the
performance of his obligations under the Employee Proprietary Information and
Inventions Agreement attached hereto as Exhibit B, and/or the
Noncompetition Agreement attached hereto as Exhibit C are
reasonably required for the protection of the Company’s interests.  In
the event the Company obtains a temporary restraining order in accordance with
this Section 9 for the Executive’s alleged violations of the Employee
Proprietary Information and Inventions Agreement attached hereto as Exhibit B, and/or the
Noncompetition Agreement attached hereto as Exhibit C, the
Company’s obligations to pay any Severance Pay to Executive pursuant to Section
4 of this Agreement shall be suspended until a final determination on the merits
of the Company’s claim is made in arbitration under the procedures set forth in
Section 8.  If the Company obtains in arbitration a judgment, order,
or other similar determination against the Executive, the Company’s obligations
with respect to the Severance Pay shall terminate effective as of the date of
the temporary restraining order.  If the Company does not obtain such
a judgment, order or other similar determination against the Executive for
violating the Employee Proprietary Information and Inventions Agreement attached
hereto as Exhibit
B, and/or the Noncompetition Agreement attached hereto as Exhibit C, then the
Company’s obligations with respect to the Severance Pay which were suspended
shall become immediately due and payable to the Executive in lump sum, along
with an award of interest at eight percent (8%) per annum for all sums
wrongfully withheld, and all remaining Severance Pay shall continue thereafter
in accordance with this Agreement.  In such circumstances, the
arbitral panel shall also award the Executive his attorneys’ fees and costs
incurred in defending the temporary restraining order and the
arbitration.

         

        10.           Miscellaneous.

         

        10.1           Entire
Agreement.  This Employment Agreement, together with the
exhibits hereto, constitutes the entire agreement and understanding between the
parties with regard to the subject matter hereof.  This Employment
Agreement supersedes and replaces all prior agreements and understandings,
whether written or oral, with respect to the subject matter hereof, including
but not limited to the Original Agreement.  The parties are entering
into this Employment Agreement only on the representations contained herein, and
not on any representations, agreements or understandings not expressly included
herein.  This Employment Agreement shall be construed under and
governed by the substantive laws of the State of South Dakota, without regard to
conflict of interest principles.  This Employment Agreement shall
inure to the benefit of and shall be binding upon the parties and their
respective heirs, legal representatives, successors, and assigns; provided,
however, that Executive’s obligations hereunder are personal and
non-assignable.

         

        
          
             

          

          
            Exhibit
10.5 Page 7

            
              

            

          

          
             

          

        

        10.2           Severability.  The
provisions of this Employment Agreement are severable, and the invalidity of any
provision does not affect the validity of any other provision.  In the
event that any arbitrator or court of competent jurisdiction determines that any
provision of this Employment Agreement is invalid or unenforceable in whole or
in part, such invalidity or unenforceability shall attach only to such provision
and all other provisions hereof shall continue in full force and effect. The
court or arbitrator will, to the fullest extent possible, reform any provision
deemed unenforceable in whole or in part, so that it is enforceable to the
fullest extent possible.

         

        10.3           Waiver/Modification.  No
waiver of any provision of this Employment Agreement shall be effective unless
such waiver is confirmed in a writing signed by the waiving
party.  Except for modifications expressly reserved to the Company’s
discretion hereunder, no modification of this Employment Agreement shall be
effective unless memorialized in a writing signed by both parties.

         

        10.4           Counterparts.  This
Employment Agreement may be executed in counterparts, each of which need not
contain signatures of more than one party, but all of which taken together will
constitute one and the same agreement.  Facsimile signatures and/or
PDF signatures shall be deemed as effective as original
signatures.  Each party has carefully read this Employment Agreement,
has been afforded the opportunity to be advised of its meaning and consequences
by his or its respective attorneys, and signed the same of his or its own free
will.

         

        10.5           Personal
Guarantees.  To the extent that the Executive has personally
guaranteed any credit card or other debt of the Company (including obligations
relating to Midwest Renewable Energy LLC), the Company will use its commercially
reasonable efforts to extinguish these guarantees either through the full
payment of the obligation and/or the negotiation of payment terms that will
eliminate the Executive’s guarantee of such indebtedness.

         

        10.6           Exhibits.

         

        Exhibit A – Form of
Release

        Exhibit B – Employee
Proprietary Information And Inventions Agreement

        Exhibit C –
Noncompetition Agreement

        

        

        [Signature
Page to Follow]

        
          
             

          

          
            Exhibit
10.5 Page 8

            
              

            

          

          
             

          

        

        IN
WITNESS WHEREOF the parties have executed the Executive Employment Agreement as
of the date and year noted above.

         

        KL
ENERGY CORPORATION

        

         

        /s/ Steve M.
Corcoran

        Name:
Steve Corcoran

        Title:
President

        

         

        Dave
Litzen

         

        /s/
Dave Litzen

        

        
          
             

          

          
            Exhibit
10.5 Page 9

            
              

            

          

          
             

          

        

        EXHIBIT
A

        

        RELEASE
OF CLAIMS

        

        1.           Employment Agreement. On 15
February, 2010, I entered into that certain Executive Employment Agreement (the
“Employment
Agreement”) with KL Energy Corporation, which along with its parent,
subsidiaries and affiliates, is referred to as the “Company”.  My
employment with the Company ended on ____________ (the “Termination
Date”).  I confirm that I have been paid all compensation owed
for all hours worked by me for the Company, I have received all the leave and
leave benefits and protections for which I was eligible in connection with my
employment with the Company, pursuant to the Family and Medical Leave Act or
otherwise, and I have not suffered any on-the-job injury for which I have not
already filed a claim.

         

        2.           General Release.  In
exchange for certain severance and other post-employment benefits to be provided
to me under the Agreement, I hereby waive and release the Company, its parents,
subsidiaries, predecessors, successors and affiliates, and each of such
entities’ officers, directors, employees, shareholders, managers, members,
employees, agents, representatives and assigns (collectively, the “Released
Parties”) from any and all claims, liabilities, demands, causes of
action, attorneys’ fees, damages, or obligations of every kind and nature,
whether known or unknown, arising at any time prior to and including the date I
sign this Release of Claims (the “Release”).  This
general release includes, but is not limited to: (a) all claims directly or
indirectly arising out of or in any way connected with my employment with the
Company or the termination of that employment relationship; (b) all claims or
demands related to salary, bonuses, fees, retirement contributions,
profit-sharing rights, profit distributions, commissions, stock, stock options,
or any other ownership or equity interests in the Company or any of its
affiliated entities, vacation pay, fringe benefits, expense reimbursements or
any other form of compensation or benefit; (c) all claims pursuant to any
federal, state or local law, statute or cause of action in any jurisdiction,
including, but not limited to, the federal Civil Rights Act of 1964, the federal
Americans with Disabilities Act of 1990, the Family and Medical Leave Act, the
Employee Retirement Income Security Act, the federal Age Discrimination in
Employment Act of 1967, the Equal Pay Act of 1963, the Fair Labor Standard Act,
South Dakota Codified Laws § 20-13-10 (1984), each as amended to date, tort law,
contract law, wrongful discharge, discrimination, harassment, fraud, defamation,
emotional distress, or claims for breach of fiduciary
duty.  Notwithstanding the foregoing, nothing in paragraph shall
release: (i) any rights I have under the Agreement; (ii) any rights to
indemnification I have pursuant to any written indemnification agreement to
which I am a party or third party beneficiary, the certificate of incorporation
or Bylaws of the Company, or under applicable law; or (iii) any rights which
cannot be waived as a matter of law.  In addition, I understand that
nothing in this release prevents me from filing, cooperating with, or
participating in any proceeding before the Equal Employment Opportunity
Commission, the Department of Labor, or any analogous state or federal agency,
except that I acknowledge and agree that I shall not recover any monetary
benefits in connection with any such claim, charge or proceeding with regard to
any claim released herein.

         

        
          
             

          

          
            Exhibit
10.5 Page 10

            
              

            

          

          
             

          

        

        3.           ADEA Waiver and
Release.  If I am 40 years of age or older as of the
Termination Date, I acknowledge that I am knowingly and voluntarily waiving and
releasing any rights I may have under the federal Age Discrimination in
Employment Act of 1967 (as amended) (the “ADEA”).  I
acknowledge that the consideration given for this waiver and release is in
addition to anything of value to which I was already entitled.  I
further acknowledge that I have been advised by this writing, as required by the
ADEA, that:  (a) this Release does not apply to any rights or claims
that arise after the date I sign it; (b) I should consult with an attorney
before signing this Release; (c) I have twenty-one (21) days to consider this
Release (although I may choose to voluntarily sign it sooner); (d) I have seven
(7) days after the date I sign this Release to revoke my acceptance of it (by
sending written notice of such revocation to the Company); and (e) this Release
will not be effective until the date upon which this revocation period has
expired unexercised, which will be the eighth (8th) day
after I sign this Release (assuming I do not earlier revoke my acceptance of
it).

         

        4.           Entire Agreement. This
Release, together with the Employment Agreement (including any exhibits
thereto), constitutes the complete, final and exclusive embodiment of the entire
agreement between me and the Company with regard to their subject matter, and I
am not relying on any promise, warranty or representation that is not expressly
stated therein.

         

        Understood,
Accepted and Agreed:

         

        
          	
                  DAVE
      LITZEN

                   

                  /s/
      Dave
      Litzen

                   

                   

                  Date:  2/24/10                                                             

                   

                

        

        

        
          
             

          

          
            Exhibit
10.5 Page 11

            
              

            

          

          
             

          

        

        
          

          EXHIBIT
B

           

          EMPLOYEE
PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

           

          
          

           

          
            	In
      consideration of my employment with KL Energy Corporation (hereinafter,
      along with its parent, subsidiaries and affiliates, referred to as the
      “Company”), and
      the compensation paid to me now and during my employment with the Company
      I,  DAVE LITZEN,
      , agree to the terms of this Agreement as follows: 

                     

                    1.           Confidential
      Information Protections.

                     

                    1.1           Nondisclosure; Recognition of
      Company’s Rights.  At all times during and after my
      employment, I will hold in confidence and will not disclose, use or
      publish any of the Company’s Confidential Information (defined below),
      except as may be required in connection with my work for the Company, or
      as expressly authorized by the Board of Directors of the Company (the
      “Board”). I
      hereby assign to the Company any rights I may have or acquire in any and
      all Company Confidential Information and recognize that all Company
      Confidential Information shall be the sole and exclusive property of
      Company and its assigns.

                     

                    1.2           Confidential
      Information.  The term “Confidential
      Information” shall mean any and all confidential knowledge, data or
      information related to the Company’s business or its actual or
      demonstrably anticipated business or development, including without
      limitation (a) information regarding products, services, marketing and
      business plans, market studies and forecasts, competitive analyses,
      budgets, financial statements, contracts, prices, and profit margins; (b)
      the names, addresses, phone numbers, preferences, buying and/or selling
      histories and other information concerning suppliers, vendors, customers
      and prospective customers of the Company; (c) proprietary technology,
      trade secrets, patented processes, research and development data,
      know-how, databases and data collections, diagrams or designs, models,
      formulae, inventions (whether or not patentable), patent applications,
      registered and unregistered marks and all goodwill associated with such
      marks, methods, processes, procedures, software and software code (in any
      form, including source code and executable code), techniques, user
      interfaces, domain names, URLs, web sites, registered and unregistered
      copyrights, works of authorship and other forms of technology or
      technical  

                  	 	information
      regarding the skills and compensation of Company’s employees, contractors,
      and any other service providers of Company; (e) the existence of any
      business discussions, negotiations, or agreements between Company and
      other information (whether or not embodied in any tangible form and
      including all tangible embodiments of the foregoing, such as instruction
      manuals, prototypes, samples, studies and summaries) and any reissues,
      extensions or renewals thereof; (d) employee lists, employment agreements,
      personnel policies, and  and any third party; and (f) any of the
      above materials, data or information as it relates; to the Company’s
      parent, subsidiaries, and affiliated entities provided, however,
      Confidential Information shall not include any information that is
      generally known in the industry or otherwise becomes available in the
      public domain, in each case other than pursuant to a breach of this
      Agreement. 

                     

                    1.3           Third Party
      Information.  I understand that the Company has received
      and in the future will receive from third parties confidential or
      proprietary information (“Third Party
      Information”) subject to a duty on the Company’s part to maintain
      the confidentiality of such Third Party Information and to use it only for
      certain limited purposes.  During and after the term of my
      employment, I will hold Third Party Information in strict confidence and
      will not disclose to anyone (other than Company personnel who need to know
      such information in connection with their work for Company), nor will I
      use Third Party Information except in connection with my work for the
      Company or unless expressly authorized by an officer of the Company in
      writing.

                     

                    1.4           No Improper Use of Information
      of Prior Employers and Others.  I represent that my
      employment by the Company does not and will not breach any agreement with
      any former employer, including any non-compete agreement or any agreement
      to keep in confidence or refrain from using information acquired by me
      prior to my employment by the Company.  I further represent that
      I have not entered into, and will not enter into, any agreement, either
      written or oral, in conflict with my obligations under this
      Agreement.  During my employment by the Company, I will not
      improperly make use of, or disclose, any confidential information or trade
      secrets

                  

          

           

           

          
            
              
                 

              

              
                Exhibit
10.5 Page 12

                
                  

                

              

              
                 

              

            

          

          
             

            
              	
                       

                      of
      any former employer or other third party, nor will I bring onto the
      premises
      of the Company or use any unpublished documents or any property belonging
      to any former employer or other third party, in violation of any lawful
      agreements with that former employer or third party.  I will use
      in the performance of my duties only information that is generally known
      and used by persons with training and experience comparable to my own, is
      common knowledge in the industry or otherwise legally in the public
      domain, or is otherwise provided or developed by the Company.

                       

                      
                        2.           Inventions.

                         

                        2.1           Inventions and Intellectual
      Property Rights.  As used in this Agreement, the term
      “Invention” means
      any proprietary or trade-secret ideas, concepts, Confidential Information,
      materials, processes, data, programs, know-how, improvements, discoveries,
      developments, designs, artwork, formulae, other copyrightable works, and
      techniques and all Intellectual Property Rights in any of the items listed
      above as such relate to the business of the Company.  The term
      “Intellectual Property
      Rights”  means all past, present, and future rights of
      the following types, which may exist or be created under the laws of any
      jurisdiction in the world: (A) rights associated with works of authorship,
      including exclusive exploitation rights, copyrights, moral rights and mask
      works; (B) trademark and trade name rights and similar rights; (C) trade
      secret rights; (D) patent and industrial property rights; (E) other
      proprietary rights in Intellectual Property; and (F) rights in or relating
      to registrations, renewals, extensions, combinations, divisions, and
      reissues of, and applications for, any of the rights referred to in
      clauses (A) through (E) above.

                         

                        2.2           Ownership of Company
      Inventions. I irrevocably assign to the Company all right, title
      and interest in any work product that I create or to which I contribute
      pursuant to this Agreement related to the business of the Company (the
      “Work Product”),
      including all Intellectual Property Rights contained therein.

                         

                        2.3           Enforcement of Intellectual
      Property Rights and Assistance. During and after the period of my
      employment, I will, at the Company’s sole expense, reasonably assist the
      Company in every proper way, to obtain and enforce United States and
      foreign Intellectual Property Rights relating to Company Inventions in all
      countries, including securing my signature on any document needed in
      connection with such purposes.

                      

                    	 	
                      3.           Records.  I
      agree to keep and maintain adequate and current records (in the form of
      notes, sketches, drawings and in any other form that is required by the
      Company) of all Inventions made by me during the period of my employment
      by the Company, which records shall be available to, and remain the sole
      property of, the Company at all times.

                       

                      4.           Return
      Of Company Property. Upon termination of my employment or upon the
      Company’s request at any other time, I will deliver to the Company all of
      the Company’s property, equipment, and documents, together with all copies
      thereof, and any other material containing or disclosing any Inventions,
      Third Party Information or Confidential Information and certify in writing
      that I have fully complied with the foregoing obligation.  Upon
      termination of my employment, I agree that I will not copy, delete, or
      alter any information contained upon my Company computer or Company
      equipment before I return it to Company.  In addition, if I have
      used any personal computer, server, or e-mail system to receive, store,
      review, prepare or transmit any Company information, including but not
      limited to, Confidential Information, I agree to provide the Company with
      a computer-useable copy of all such Confidential Information and then
      permanently delete and expunge such Confidential Information from those
      systems; and I agree to allow an independent computer forensics consultant
      access to my system as reasonably requested by the Company to verify that
      the necessary copying and/or deletion is completed.  I further
      agree that any property situated on Company premises and owned by the
      Company is subject to inspection by Company personnel at any time with or
      without notice.  Prior to the termination of my employment or
      promptly after termination of my employment, I will cooperate with the
      Company in attending an exit interview and certify in writing that I have
      complied with the requirements of this section.

                       

                      5.           Notification
      Of New Employer.  If I leave
      the employ of the Company, I consent to the notification of my new
      employer of my rights and obligations under this Agreement, by the Company
      providing a copy of this Agreement or otherwise.

                       

                      6.           General
      Provisions.

                       

                      6.1           Governing Law and
      Venue.  This

                    

            

             

          

           

          

          
            
              
                 

              

              
                Exhibit
10.5 Page 13

                
                  

                

              

              
                 

              

            

          

          

          
             

            
              	
                      
                         

                        Agreement
      and any action related thereto will be governed and interpreted by and
      under the laws of the State of South Dakota, without giving effect to any
      conflicts of laws principles that require the application of the law of a
      different state.  I expressly consent to personal jurisdiction
      and venue in the state of South Dakota for any lawsuit or arbitration
      filed against me by the Company arising from or related to this Agreement
      and I consent to the application of the provisions of Sections 8 and 9 of
      the Employment Agreement with respect to the resolution of any dispute
      raised by the parties hereto.

                         

                        6.2           Severability.  If
      any provision of this Agreement is, for any reason, held to be invalid or
      unenforceable, the other provisions of this Agreement will remain
      enforceable.  If the final judgment of a court of competent
      jurisdiction or arbitral panel declares that any term or provision hereof
      is invalid or unenforceable, the parties hereto agree that the court or
      arbitral making such determination shall have the power
      to  limit the term or provision, to delete specific words or
      phrases, or to replace any invalid or unenforceable term or provision with
      a term or provision that is valid and enforceable and that comes closest
      to expressing the intention of the invalid or unenforceable term or
      provision, and this Agreement shall be enforceable as so
      modified.  In the event such court or arbitral panel does not
      exercise the power granted to it in the prior sentence, the parties hereto
      agree to replace such invalid or unenforceable term or provision that will
      achieve, to the extent possible, the economic, business and other purposes
      of such invalid or unenforceable term.

                         

                        6.3           Survival.  This
      Agreement shall survive the termination of my employment and the
      assignment of this Agreement by Company to any successor or other assignee
      and be binding upon my heirs and legal representatives.

                         

                        6.4           Employment.  I
      agree and understand that nothing in this Agreement shall give me any
      right to continued employment by Company, and it will not interfere in any
      way with my right or the Company’s right to terminate my employment at any
      time, with or without cause.

                         

                        6.5           Notices.  Each
      party must deliver all notices or other communications required or
      permitted under this Agreement in writing to the other party at the
      address listed on the signature page, by courier, by certified or
      registered mail (postage 

                      

                    	 	
                      
                        prepaid
      and return receipt requested), or by a nationally-recognized express mail
      service.  Notice will be effective upon receipt, or refusal by
      party of delivery.  If delivered by certified or registered
      mail, notice will be considered to have been given five (5) business days
      after it was mailed, as evidenced by the postmark.  If delivered
      by courier or express mail service, notice will be considered to have been
      given on the delivery date reflected by the courier or express mail
      service receipt. Each party may change its address for receipt of notice
      by giving notice of the change to the other party.

                         

                        6.6           Injunctive Relief. I
      acknowledge that, because my services are personal and unique and because
      I will have access to the Confidential Information of the Company, any
      breach of this Agreement by me would cause irreparable injury to Company
      for which monetary damages would not be an adequate remedy and, therefore,
      will entitle Company to injunctive relief (including specific performance)
      in accordance with the provisions of Sections 8 and 9 of my Employment
      Agreement with the Company.

                         

                         6.7           Waiver. Any waiver or
      failure to enforce any provision of this Agreement on one occasion will
      not be deemed a waiver of that provision or any other provision on any
      other occasion.

                         

                        6.8           Entire
      Agreement.  If no other agreement governs nondisclosure
      and assignment of inventions during any period in which I was previously
      employed or am in the future employed by the Company or retained as an
      independent contractor, the obligations pursuant to sections of this
      Agreement titled “Confidential Information Protections” and “Inventions”
      shall apply.  This Agreement is the final, complete and
      exclusive agreement of the parties with respect to the subject matter
      hereof and supersedes and merges all prior communications between us with
      respect to such matters; provided, however, to
      the extent that any of the obligations set forth in this Proprietary
      Information Agreement conflict with those set forth in the Employment
      Agreement, the terms and conditions of this Proprietary Information
      Agreement shall control.. If no other agreement governs nondisclosure and
      assignment of inventions during any period in which I was previously
      employed or am in the future employed by the Company as an independent
      contractor, the obligations pursuant to sections of this Agreement titled
      “Confidential Information Protections” and “Inventions” shall
      apply.  No

                      

                    

            

             

          

           

           

          

          
            
              
                 

              

              
                Exhibit
10.5 Page 14

                
                  

                

              

              
                 

              

            

          

           

          
            
              	
                      modification
      of or amendment to this Agreement, or any waiver of any rights under this
      Agreement, will be effective unless in writing and 

                    	 	signed by me and the Board.  Any subsequent change
      or changes in my duties, salary or compensation will not affect the
      validity or scope of this Agreement.

            

             

          

          

          This
Agreement shall be effective as of the first day of my employment with the
Company.

           

           

           

           

          
            	
                    DAVID
      LITZEN:

                    I have read, understand,
      and accept this agreement and have been given the opportunity to Review it
      with independent legal counsel.

                     

                     

                     

                     

                     

                     

                    
                       

                      

                       

                       

                       

                    

                  	 	
                    KL
      ENERGY CORPORATION:

                    Accepted
      and agreed:

                     

                     

                     

                     

                    
                      Name:
      Steve  Corcoran

                      Title:
      President

                    

                     

                  
	
                    /s/ Dave
      Litzen

                  	 	 /s/ Steve M.
      Corcoran
	  (Signature)	 	                            (Signature)
	 	 	 
	 	 	 
	 	 	 By:  Steve
      Corcoran
	 Print Name:DAVID LITZEN	 	 Title:
      President
	 	 	 
	 Date:
      2/24/10	 	 Date:
      02FEB10
	 	 	 
	
                     Address:     6632
      Madstone Ct

                                 Rapid City, SD 57702

                  	 	 Address:    306
      East St. Joseph St 

                                 Suite 200

                                 Rapid City, SD
  57701

                  

          

          

          

        

        
          
             

          

          
            Exhibit
10.5 Page 15

            
              

            

          

          
             

          

        

        

        EXHIBIT
C

        

        NONCOMPETITION
AGREEMENT

         

        This
Noncompetition Agreement (the “Agreement”) is being executed and
delivered as of February 15, 2010 (the “Effective
Date”) by DAVE
LITZEN (“Executive”)
in favor of, and for the benefit of KL ENERGY
CORPORATION,
a Nevada corporation (hereinafter, along with its parent, subsidiaries
and Affiliates, referred to as the “Company”) and
the other “Indemnitees”
(as hereinafter defined).  Certain capitalized terms used in this
Noncompetition Agreement are defined in Section 21.

         

        Recitals

         

        Whereas,
the Company and Executive are executing an Employment Agreement (the “Employment
Agreement”) contemporaneously with the execution and delivery of this
Agreement, pursuant to which Executive will provide key executive-level
employment services to the Company; and

         

        Whereas,
as a result of Executive’s employment by the Company, he will be intimately
familiar with the Company’s plans, trade secrets, proprietary information,
business activities and operations;

         

        Now,
Therefore, in order to induce the Company to enter into the Employment
Agreement and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Executive agrees to the terms set
forth.

         

        Agreement

         

        
          1.   
Restriction
on Competition.

        

         

        1.1           Executive
agrees that, during the Noncompetition Period, he shall not, and shall not
permit any of his Affiliates to:  (a) engage directly or
indirectly in Competition in any Restricted Territory; (b) directly or indirectly be
or become an officer, director, shareholder, owner, co-owner, Affiliate,
partner, promoter, employee, agent, representative, designer, consultant,
advisor, manager, investor, licensor, sublicensor, licensee or sublicensee of,
for or to, or otherwise be or become associated with or acquire or hold (of
record, beneficially or otherwise) any direct or indirect interest in, any
Person or entity that engages directly or indirectly in Competition in any
Restricted Territory; provided, however, that
Executive may, without violating this Section 1, own, as a passive investment,
shares of capital stock of a publicly-held corporation that engages in
Competition if the following three conditions are satisfied: (i) the securities
held are actively traded on an established national securities market in the
United States, (ii) the number of shares of such entity’s equity securities
collectively owned beneficially (directly or indirectly) by Executive and his
Affiliates collectively represent less than one-half of one percent (.5%) of the
total number of equity securities of such entity outstanding, and (iii) neither
Executive nor his Affiliates are otherwise associated directly or indirectly
with such entity or with any Affiliate of such entity.

         

        
          
             

          

          
            Exhibit
10.5 Page 16

            
              

            

          

          
             

          

        

        2.           No Hiring or
Solicitation.  Executive agrees that, during the Noncompetition
Period, he shall not, and shall not permit any of his Affiliates to: (a) hire a
Specified Worker; or (b) directly or indirectly, personally or through others,
encourage, induce, attempt to induce, solicit or attempt to solicit (on their
own behalf or on behalf of any other Person) any Specified Worker to terminate
his/her/its employment or consulting relationship with the
Company.  For purposes of this Section 2, a “Specified
Worker” shall mean any individual who is an employee or contractor of the
Company or has been an employee or contractor of the Company within the
preceding six (6) month period.

         

        3.           Restriction
on Interference with Business.  Executive
agrees that, during Executive’s employment with the Company and after the
termination of that employment for any reason, he will not: (a) discourage,
dissuade, induce or attempt to induce any supplier or customer of the Company
not to enter into a business relationship with the Company or any supplier or
customer of the Company to terminate any of its material relationships with the
Company; or (b) make any public statements or public comments of a defamatory or
disparaging nature regarding the Company or any of its officers, directors,
personnel, products, services, or Affiliates, in any manner likely to be harmful
to it or their business, business reputation or personal
reputation.  Nothing in this Section shall prevent Executive from
responding accurately and fully to any request for information when a response
is required by legal process.

         

        4.           Confidentiality.  Executive
agrees that he shall hold all Confidential Information in strict confidence and
shall fully comply with all terms and conditions of that certain Employee Proprietary Information And
Inventions Agreement between the Company and Executive of even date
herewith..

         

        5.           Representations and
Warranties.  Executive represents and warrants, to and for the
benefit of the Indemnitees, that: (a) he has full power and capacity to execute
and deliver, and to perform all of his obligations under this Noncompetition
Agreement; and (b) neither the execution and delivery of this Noncompetition
Agreement nor the performance of this Noncompetition Agreement will result
directly or indirectly in a violation or breach of: (i) any agreement or
obligation by which Executive or any of his Affiliates is or may be bound; or
(ii) any law, rule or regulation.  The representations and
warranties provided by Executive shall survive the expiration of the
Noncompetition Period for an unlimited period of time.

         

        6.           Specific
Performance.  Executive agrees that, in the event of any breach
or threatened breach by him of any covenant or obligation contained in this
Noncompetition Agreement, the Company and each of the other Indemnitees shall be
entitled (in addition to any other remedy that may be available to it, including
monetary damages) to seek and obtain relief pursuant to the provisions of
Sections 8 and 9 of the Employment Agreement.  Executive further
agrees that no Indemnitee shall be required to obtain, furnish or post any bond
or similar instrument in connection with or as a condition to obtaining any
remedy referred to in this Section 6, and Executive hereby irrevocably waives
any right he may have to require any Indemnitee to obtain, furnish or post any
such bond or similarly instrument.

         

        7.           Indemnification.  Without
in any way limiting any of the rights or remedies otherwise available to any of
the Indemnitees, Executive agrees to indemnify and hold harmless

         

        
          
             

          

          
            Exhibit
10.5 Page 17

            
              

            

          

          
             

          

        

        each
Indemnitee against and from any loss, damage, injury, harm, detriment, lost
opportunity, liability, exposure, claim, demand, settlement, judgment, award,
fine, penalty, tax, fee (including attorneys’ fees), charge or expense (whether
or not relating to any third-party claim) that is directly or indirectly
suffered or incurred at any time (whether during or after the Noncompetition
Period) by such Indemnitee, or to which such Indemnitee otherwise becomes
subject at any time (whether during or after the Noncompetition Period), and
that arises directly or indirectly out of or by virtue of, or relates directly
or indirectly to, any inaccuracy in or breach of any representation or warranty
made by them in this Noncompetition Agreement, or any failure on his part to
observe, perform or abide by, or any other breach of, any restriction, covenant,
obligation or other provision contained in this Noncompetition
Agreement.

         

        8.           Non-Exclusivity.  The
rights and remedies of the Company and the other Indemnitees under this
Noncompetition Agreement are not exclusive of or limited by any other rights or
remedies which they may have, whether at law, in equity, by contract or
otherwise, all of which shall be cumulative (and not
alternative).  Without limiting the generality of the foregoing, the
rights and remedies of the Company and the other Indemnitees under this
Noncompetition Agreement, and the obligations and liabilities of Executive under
this Noncompetition Agreement, are in addition to his rights, remedies,
obligations and liabilities under the law of unfair competition, under laws
relating to misappropriation of trade secrets, under other laws and common law
requirements and under all applicable rules and regulations.  Nothing
in this Noncompetition Agreement shall limit any of Executive’s obligations, or
the rights or remedies of the Company or any of the other Indemnitees, under the
Employment Agreement; and nothing in the Employment Agreement shall limit any of
Executive’s obligations, or any of the rights or remedies of the Company or any
of the other Indemnitees, under this Noncompetition Agreement.  No
breach on the part of the Company or any other party of any covenant or
obligation contained in the Employment Agreement or any other agreement shall
limit or otherwise affect any right or remedy of the Company or any of the other
Indemnitees under this Noncompetition Agreement.

         

        9.           Severability.  Any
term or provision of this Noncompetition Agreement that is invalid or
unenforceable in any situation in any jurisdiction shall not affect the validity
or enforceability of the remaining terms and provisions hereof or the validity
or enforceability of the offending term or provision in any other situation or
in any other jurisdiction.  If the final judgment of a court of
competent jurisdiction or any arbitral panel declares that any term or provision
hereof is invalid or unenforceable, the parties hereto agree that the court or
arbitral panel making such determination shall have the power
to  limit the term or provision, to delete specific words or phrases,
or to replace any invalid or unenforceable term or provision with a term or
provision that is valid and enforceable and that comes closest to expressing the
intention of the invalid or unenforceable term or provision, and this
Noncompetition Agreement shall be enforceable as so modified.  In the
event such court or arbitral panel does not exercise the power granted to it in
the prior sentence, the parties hereto agree to replace such invalid or
unenforceable term or provision with a valid and enforceable term or provision
that will achieve, to the extent possible, the economic, business and other
purposes of such invalid or unenforceable term.

         

        
          
             

          

          
            Exhibit
10.5 Page 18

            
              

            

          

          
             

          

        

        10.           Specific
Acknowledgements.  Executive specifically acknowledges and
agrees that: (a) the promises and restrictive covenants Executive is providing
in this Agreement are reasonable and necessary to the protection of the
Company’s business and to the Company’s legitimate interests in the protection
and preservation of the goodwill and other assets of the Company; and that, if
Executive were to violate the terms of this Agreement, such conduct would
materially and adversely affect the value of the Company and cause the Company
to suffer substantial irreparable harm.

         

        11.           Governing
Law; Venue.

         

        11.1           This
Noncompetition Agreement shall be construed in accordance with, and governed in
all respects by, the laws of the State of South Dakota (without
giving effect to principles of conflicts of laws).

         

        11.2           The
provisions of Sections 8 and 9 of the Employment Agreement shall apply to this
Noncompetition Agreement.

         

        11.3           EXECUTIVE
IRREVOCABLY WAIVES THE RIGHT TO A JURY TRIAL IN CONNECTION WITH ANY LEGAL
PROCEEDING RELATING TO THIS NONCOMPETITION AGREEMENT OR THE ENFORCEMENT OF ANY
PROVISION OF THIS NONCOMPETITION AGREEMENT.

         

        12.           Waiver.  No failure
on the part of the Company or any other Indemnitee to exercise any power, right,
privilege or remedy under this Noncompetition Agreement, and no delay on the
part of the Company, or any other Indemnitee in exercising any power, right,
privilege or remedy under this Noncompetition Agreement, shall operate as a
waiver of such power, right, privilege or remedy; and no single or partial
exercise of any such power, right, privilege or remedy shall preclude any other
or further exercise thereof or of any other power, right, privilege or
remedy.  No Indemnitee shall be deemed to have waived any claim of
such Indemnitee arising out of this Noncompetition Agreement, or any power,
right, privilege or remedy of such Indemnitee under this Noncompetition
Agreement, unless the waiver of such claim, power, right, privilege or remedy is
expressly set forth in a written instrument duly executed and delivered on
behalf of such Indemnitee; and any such waiver shall not be applicable or have
any effect except in the specific instance in which it is given.

         

        13.           Successors and
Assigns.  The Company and/or the other Indemnitees may freely
assign any or all of its rights under this Noncompetition Agreement, at any
time, in whole or in part, to any Person without obtaining the consent or
approval of Executive or of any other Person.  This Noncompetition
Agreement shall be binding upon Executive and each of his heirs, executors,
estate, personal representatives, successors and assigns, and shall inure to the
benefit of the Company and the other Indemnitees.

         

        14.           Further
Assurances.  Executive shall (at his sole expense) execute
and/or cause to be delivered to each Indemnitee such instruments and other
documents, and shall (at the their sole expense) take such other actions, as
such Indemnitee may reasonably request at any time (whether
during or after the Noncompetition Period) for the purpose of carrying out or
evidencing any of the provisions of this Noncompetition
Agreement.

         

        
          
             

          

          
            Exhibit
10.5 Page 19

            
              

            

          

          
             

          

        

         

        15.           Attorneys’ Fees.  If
any legal action or other legal proceeding relating to this Noncompetition
Agreement or the enforcement of any provision of this Noncompetition Agreement
is brought against Executive, the prevailing party shall be entitled to recover
reasonable attorneys’ fees, costs and disbursements (in addition to any other
relief to which the prevailing party may be entitled).

         

        16.           Captions.  The
captions contained in this Noncompetition Agreement are for convenience of
reference only, shall not be deemed to be a part of this Noncompetition
Agreement and shall not be referred to in connection with the construction or
interpretation of this Noncompetition Agreement.

         

        17.           Construction.  Whenever
required by the context, the singular number shall include the plural, and vice
versa; the masculine gender shall include the feminine and neuter genders; and
the neuter gender shall include the masculine and feminine
genders.  Any rule of construction to the effect that ambiguities are
to be resolved against the drafting party shall not be applied in the
construction or interpretation of this Noncompetition
Agreement.  Neither the drafting history nor the negotiating history
of this Noncompetition Agreement shall be used or referred to in connection with
the construction or interpretation of this Noncompetition
Agreement.  As used in this Noncompetition Agreement, the words
“include” and “including,” and variations thereof, shall not be deemed to be
terms of limitation, and shall be deemed to be followed by the words “without
limitation.” Except as otherwise indicated in this Noncompetition Agreement, all
references in this Noncompetition Agreement to “Sections” are intended to refer
to Sections of this Noncompetition Agreement.

         

        18.           Survival of
Obligations.  Except as specifically provided herein, the
obligations of Executive under this Noncompetition Agreement (including his
obligations under Sections 7 and 14) shall survive the expiration of the
Noncompetition Period.  The expiration of the Noncompetition Period
shall not operate to relieve Executive of any obligation or liability arising
from any prior
breach of any provision of this Noncompetition Agreement.

         

        19.           Obligations
Absolute.  Executive’s obligations under this Noncompetition
Agreement are absolute and shall not be terminated or otherwise limited by
virtue of any breach (on the part of the Company any other Indemnitee or any
other Person) of any provision of the Employment Agreement or any other
agreement, or by virtue of any failure to perform or other breach of any
obligation of the Company, Executive, any other Indemnitee or any other
Person.

         

        20.           Amendment.  This
Noncompetition Agreement may not be amended, modified, altered or supplemented
other than by means of a written instrument duly executed and delivered on
behalf of Executive and the Company (or any successor to the
Company).

         

        21.           Defined Terms.  For
purposes of this Noncompetition Agreement:

         

        
          
             

          

          
            Exhibit
10.5 Page 20

            
              

            

          

          
             

          

        

        21.1           “Affiliate” means, with
respect to any specified Person, any other Person that, directly or indirectly,
through one or more intermediaries, controls, is controlled by or is under
common control with such specified Person.

         

        21.2           “Competing Business” means (a)
the design, development, sale, distribution, marketing or promotion of process
technologies designed to facilitate the conversion of cellulose derived from
biomass into Cellulosic Based Ethanol (CBE) and those CBE derived products or
services offered by the Company as of the date of this Agreement, and any other
CBE derived product or service designed, developed, distributed, promoted,
marketed, or sold or any CBE derived product or service under development by the
Company, at any time during Executive’s employment with the Company, and (b) if
employed by or acting as an officer, director or manager of an Affiliate of the
Company, the CBE derived products or services designed, developed, distributed,
promoted, marketed, or sold or any CBE derived product or service under
development by such Affiliate(s), at any time during Executive’s employment with
such Affiliate.

         

        21.3           A
Person shall be deemed to be engaged in “Competition” if such Person,
or any of such Person’s subsidiaries or Affiliates is engaged in a Competing
Business.

         

        21.4           “Confidential Information”
means any and all Confidential Information as defined in that Employee
Proprietary Information And Inventions Agreement executed by Executive in
connection with his employment with the Company.

         

        21.5           “Indemnitees” shall include:
(i) the Company; (ii) each Person who is or becomes an Affiliate of the Company;
and (iii) the successors and assigns of each of the Persons referred to in
clauses “(i)” and “(ii)” of this sentence.

         

        21.6           “Noncompetition Period” shall
mean the period commencing on the Effective Date and ending on the date which is
twelve (12) months from the date Executive’s employment with the Company, or any
subsidiary or Affiliate thereof or their respective successors or assigns is
terminated for any reason; provided however, that in the
event of any breach on the part of the Executive of any provision of this
Noncompetition Agreement, in addition to all other rights and remedies available
to the Indemnitees in law, equity or by agreement, the Noncompetition Period
shall be automatically extended by a number of days equal to the total number of
days in the period from the date on which such breach shall have first occurred
through the date as of which such breach shall have been fully
cured.

         

        21.7           “Person” means any: (i)
individual; (ii) corporation, general partnership, limited partnership, limited
liability partnership, trust, company (including any limited liability company
or joint stock company) or other organization or entity; or (iii) governmental
body or authority.

         

        21.8           “Restricted Territory” means
each country within North America, as well as any other country in which the
Company conducts, has conducted, or demonstrably intends to conduct Business,
during the period of Executive’s Employment Agreement and as of the Termination
Date

         

         

        
          
            
            

          

          
            Exhibit
10.5 Page 21

            
              

            

          

          
            
            

          

        

         

         

         

        22.           Counterparts/Facsimiles.  This
Agreement may be executed in counterparts, each of which shall be deemed to be
an original, but all of which together shall constitute one and the same
instrument.  Facsimile or PDF signatures shall be deemed as
enforceable as originals.

         

        [signature
page follows]

         

        
          
             

          

          
            Exhibit
10.5 Page 22

            
              

            

          

          
             

          

        

        In Witness
Whereof, Executive duly executes and delivers this Noncompetition
Agreement as of the
date first
above written.

         

         

        
          
 

          
            	 
      	Dave
      Litzen
	 
      	 	 
      
	 
      	 	/s/
      Dave Litzen 
	 	 	 
	 
      	Address:  	
                    6632 Madstone
      Ct

                    Rapid
      City, SD
      57702                    

                  
	 
      	 	 
      
	 
      	Telephone
      No.: 	
                     ( 605 )  390-3479

                  
	 
      	Facsimile: 	
                     ( 605) 
      718-1372

                  
	 
      	 	 
      
	 
      	 	 
      
	 
      	kl
      energy corporation
	 
      	 	 
      
	 
      	 	 
      
	 
      	 	 
      
	 
      	By:	
                    /s/
      Steve M Corcoran

                  
	 
      	 	 
      
	 
      	Its:	
                    President

                  

          

           

        

         

        Exhibit 10.5 Page 23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}]]