Document:

VACCINOGEN, INC.

 

AMENDMENT NO. 2 TO

NOTE AND WARRANT PURCHASE AGREEMENT

 

THIS AMENDMENT NO. 2 TO NOTE AND WARRANT
PURCHASE AGREEMENT is dated as of the ___ day of ______________, 2012, by and between Vaccinogen, Inc., a Maryland corporation
(the “Company”), and The Abell Foundation, Inc., a Maryland corporation (the “Purchaser”).

 

RECITALS

 

Reference is made to that certain Note and
Warrant Purchase Agreement dated October 26, 2011, by and between the Company and the Purchaser, as amended by that certain Amendment
No. 1 to Note and Warrant Purchase Agreement dated February 16, 2012, by and between the Company and the Purchaser (as amended,
the “Existing Agreement,” and the Existing Agreement, as amended by this Amendment No. 2, the “Agreement”),
pursuant to which the Purchaser agreed to purchase from the Company a promissory note (the “Existing Note”)
in the maximum principal amount of One Million Eight Hundred Thousand Dollars ($1,800,000.00) and to purchase the “Warrant”
as therein defined (the “Existing Warrant”). In order to amend the Existing Agreement, inter alia,
to extend the maturity of the Existing Note, and to modify the terms of the Existing Warrant as hereinafter provided, the parties
hereto have entered into this Amendment No. 2.

 

NOW, THEREFORE, in consideration of
the premises and the mutual covenants set forth herein, and such other consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

 

1.          All
capitalized terms not otherwise defined herein which are defined in the Agreement shall have the same meanings assigned to them
in the Agreement.

 

2.          All
references to (a) “this Agreement” in the Agreement shall mean the Existing Agreement as amended by this Amendment
No. 2, (b) the “Note” in the Agreement and in the other Transaction Documents shall mean a promissory note in substantially
the form attached hereto as Exhibit A (the “Replacement Note”), which Exhibit shall replace in
its entirety Exhibit A to the Agreement, and (c) the “Warrant” in the Agreement shall mean a warrant to purchase
capital stock of the Company in substantially the form attached hereto as Exhibit B, which Exhibit shall replace in its
entirety Exhibit B to the Agreement.

 

3.          Section
1.2 of the Agreement is hereby amended to read in its entirety as follows:

 

    	 

    	 

    

 

1.2           Sale.
Subject to the terms and conditions hereof, the Purchaser agrees to purchase from the Company, and the Company agrees to sell and
issue to the Purchaser, (i) the Note, and (ii) a warrant which evidences the right of the Purchaser to purchase up to that number
of shares of Common Stock of the Company equal to (x) $1,100,000, divided by (y) eighty-five percent (85%) of the lowest purchase
price per share (after taking into account all discounts and other reductions in the purchase price offered to any purchaser) of
the Common Stock sold in the Company’s Venture Capital Financing (as defined below). “Venture Capital Financing”
shall mean the first transaction or series of transactions to occur after the date hereof involving the issuance or sale of additional
shares of capital stock, or securities directly or indirectly convertible or exchangeable for capital stock, of the Company that
would result in at least $35,000,000 in aggregate gross proceeds to the Company, including by way of the conversion of any outstanding
debt.

 

4.          To
induce the Purchaser to enter into this Amendment No. 2, the Company hereby:

 

(a)         represents
and warrants to the Purchaser that (i) the representations and warranties of the Company set forth in Section 3 of the Agreement,
and the representations and warranties of the Company set forth in each of the other Transaction Documents, are true and correct
in all material respects with the same effect as if made on the date hereof (except
that (x) such materiality qualifier shall not be applicable to any representation or warranty that already are qualified or modified
by materiality in the text thereof, and (y) any representation and warranty stated to relate solely to an earlier date shall be
true and correct as of such earlier date), it being understood that all references to “this Agreement” and the “Transaction
Documents” in Section 3 of the Agreement shall include (without limitation) this Amendment No. 2 and the Warrant, respectively,
and (ii) after giving effect to the terms of this Amendment No. 2, the Company is in compliance with all the terms and conditions
of the Agreement and the other Transaction Documents, and no Default or Event of Default has occurred and is continuing; and 

 

(b)        releases
and forever discharges the Purchaser and the officers, employees and trustees thereof, of and from all manner of actions, causes
and causes of action, suits, debts, sums of money, account reckonings, bonds, bills, specialties, coverages, judgments, executions,
claims, and demands whatsoever, at law or in equity, and particularly, without limiting the generality of the foregoing, all claims
relating to the transactions which are the subject of the Transaction Documents, which the Company and its successors and assigns
ever had, now has, or may have in the future, for, upon or by reason of any matter, cause, or thing, whatsoever occurring prior
to the date hereof and/or arising from facts of which the Company was aware, or reasonably should have been aware, as of the date
hereof. Without limitation of the foregoing, the Company waives any and all defenses, offsets, and counterclaims to the Purchaser’s
enforcement of the Transaction Documents or any action by the Purchaser to foreclose any security interest.

 

    	- 2 -

    	 

    

 

5.          This
Amendment No. 2 shall become effective on the date upon which the following shall all have occurred:

 

(a)          the
Purchaser shall have received each of the following, in form and substance satisfactory to the Purchaser:

 

(i)          a
copy of this Amendment No. 2, duly executed and delivered by the Company;

 

(ii)         the
Replacement Note, duly executed and delivered by the Company;

 

(iii)        intellectual
property security agreements covering all intellectual property of the Company, each duly executed and delivered by the Company;

 

(iv)         the
Investment Agreement attached hereto as Exhibit C (the “Investment Agreement”) , duly executed
and delivered by the Company, it being understood and agreed that the Purchaser shall execute and deliver the Investment Agreement
to the Company promptly following the approval by the Board of Trustees of the Purchaser of the Investment Agreement; and

 

(v)          certificate(s)
of the Secretary of the Company (A) to the effect that resolutions in form and content satisfactory to the Purchaser authorizing
the transactions contemplated hereby and by the Replacement Note and the Warrant have been duly adopted and remain in full force
and effect, and (B) certifying the incumbency and signatures of the officers of the Company authorized to execute this Amendment,
the Replacement Note and the Warrant; and

 

(b)          the
Purchaser shall have executed and delivered to the Company this Amendment No. 2.

 

    	- 3 -

    	 

    

 

6.          The
Company and the Purchaser intend that neither this Amendment No. 2, nor the execution and delivery of this Amendment No. 2, the
Replacement Note or any other document executed and delivered pursuant to or in connection with this Amendment No. 2, shall constitute
or be construed to operate as a novation of the Agreement, the Existing Note, any of the indebtedness of the Company pursuant to
the Existing Note, or any lien or security interest heretofore created pursuant to any of the Transaction Documents. The Company
and the Purchaser intend that by the execution and delivery of this Amendment No. 2 and the Replacement Note certain of the terms
of the note and warrant purchases by the Purchaser shall be modified, restated and replaced in their entireties, but the indebtedness
evidenced by the Existing Note and such liens and security interests heretofore created shall not be extinguished or satisfied.
Without limitation of the foregoing, the Company specifically acknowledges and agrees that (a) the “Note” as defined
in the Security Agreement dated as of October 26, 2011, by and between the Company and the Purchaser (the “Security
Agreement”) means the Replacement Note, (b) the “Obligations” as defined in the Security Agreement (the
“Obligations”) include all indebtedness and liabilities of the Company under the Agreement, under the
Replacement Note and under the other Transaction Documents, (c) the “Collateral” as defined in the Security Agreement
(the “Collateral”) secures, without limitation, the payment and performance all of the Obligations, (d)
the Obligations represent debt issued in connection with an investment in the Company, (e) the Collateral includes the “Collateral”
(the “Organon Collateral”) as defined in that certain New Security Agreement (the “Organon
Security Agreement”) made as of October 31, 2007 by and between (i) Intracell Holdings Corporation (predecessor to
the Company) and (ii) Organon BioSciences International B.V. and Organon Teknika Corporation (collectively, “Organon”);
provided that the inclusion of such “Collateral” as defined in the Organon Security Agreement is included specifically
subject to any liens or rights arising from the terms of the Organon Security Agreement, and (f) to the Company’s knowledge
there are no liens or security interests in the Collateral except for the security interest of the Purchaser therein and except
for the security interest granted to Organon in the Organon Collateral pursuant to the Organon Security Agreement.

 

7.          The
Company agrees to pay all out-of-pocket expenses incurred by the Purchaser in connection with the preparation, negotiation, execution
and delivery of this Amendment No. 2, the Replacement Note and all other documents executed or to be executed in connection herewith,
including, without limitation, the expenses and reasonable fees of its counsel in an amount not to exceed $5,000.

 

8.          The
Purchaser shall be permitted to set-off all amounts owed by it to the Company under the Investment Agreement against all amounts
owed to it by the Company with respect to the Note.

 

9.          Except
as amended hereby, the Agreement shall remain unchanged, and the Agreement, as so amended, shall continue in full force and effect
in accordance with its terms. The breach by the Company of any representation, warranty, covenant or agreement contained in this
Amendment No. 2 shall represent an Event of Default.

 

10.         This
Amendment No. 2 may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each
of which, when so executed and delivered, shall be an original, but all such counterparts shall together constitute one and the
same instrument.

 

11.         The
Recitals hereto and all of the terms of the Agreement are hereby incorporated into and made a part hereof as though fully set forth
herein.

 

12.         This
Amendment No. 2 shall be governed by and construed under the laws of the State of Maryland, without regard to the conflicts of
laws provisions of the State of Maryland or any other state. Any suit, action or proceeding instituted by either party hereto with
respect to any of the obligations of other party hereto may be brought in any State or federal court located in the State of Maryland
(in addition to such other courts in which jurisdiction and venue may be appropriate), and each party consents to the in personam
jurisdiction of such courts.

 

    	- 4 -

    	 

    

 

[SIGNATURES CONTAINED ON THE FOLLOWING PAGE]

 

    	- 5 -

    	 

    

 

IN WITNESS WHEREOF, the parties have
caused this Amendment No. 2 to Note and Warrant Purchase Agreement to be duly executed under seal by their duly authorized
respective officers as of the day and year first above written.

 

	ATTEST/WITNESS:	 	VACCINOGEN, INC.	 
	 	 	 	 
	/s/	 	By:	/s/ Michael G. Hanna, Jr.	 	(SEAL)
	 	 	 	Michael G. Hanna, Jr., Ph.D.	 
	 	 	 	Chairman & Interim Chief Executive Officer	 
	 	 	 	 
	 	 	THE ABELL FOUNDATION, INC.	 
	 	 	 	 
	/s/	 	By:	/s/ Robert C. Embry,
    Jr.	 	(SEAL)
	 	 	 	Robert C. Embry, Jr.	 
	 	 	 	President	 

 

    	- 6 -PATENT SECURITY AGREEMENT

 

This PATENT SECURITY
AGREEMENT (this “Patent Security Agreement”) is made this ___ day of ______________, 2013, by and between VACCINOGEN,
INC., a Maryland corporation (“Grantor”), and THE ABELL FOUNDATION, INC., a Maryland corporation
(the “Foundation”).

 

WITNESSETH:

 

WHEREAS,
pursuant to that certain Note and Warrant Purchase Agreement dated as of October 26, 2011 (as amended, restated, supplemented,
or otherwise modified from time to time, the “Note Purchase Agreement”) by and between Grantor and the Foundation,
the Foundation has made certain financial accommodations to the Grantor; and

 

WHEREAS, pursuant to
a certain Security Agreement dated as of October 26, 2011, by and between Grantor and the Foundation (the “Security Agreement”),
to secure (among other things) all present and future obligations of Grantor to the Foundation under the promissory note issued
by Grantor to the Foundation pursuant to the Note Purchase Agreement, Grantor has granted to the Foundation a security interest
in the assets and property of Grantor, including, without limitation, all of its general intangibles; and

 

WHEREAS, the Foundation
is willing to further amend the terms of the Note Purchase Agreement as provided for in that certain Amendment No. 3 to Note and
Warrant Purchase Agreement of even date herewith by and between Grantor and the Foundation, but only upon the condition, among
others, that Grantor shall have executed and delivered to the Foundation this Patent Security Agreement;

 

NOW, THEREFORE, in
consideration of the premises and mutual covenants herein contained and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Grantor hereby agrees as follows:

 

1.           DEFINED TERMS.
All initially capitalized terms used but not otherwise defined herein have the meanings given to them in the Security Agreement
or, if not defined therein, in the Note Purchase Agreement.

 

2.           GRANT OF SECURITY
INTEREST IN PATENT COLLATERAL. Grantor hereby unconditionally grants, assigns, and pledges to the Foundation, to secure the
Obligations, a continuing security interest (referred to in this Patent Security Agreement as the “Security Interest”)
in all of Grantor’s right, title and interest in and to the following, whether now owned or hereafter acquired or arising
(collectively, the “Patent Collateral”):

 

(a)          all of its patents
(“Patents”) and all patent intellectual property licenses to which it is a party (“Intellectual Property
Licenses”) including those referred to on Schedule I;

 

(b)          all divisionals,
continuations, continuations-in-part, reissues, reexaminations, or extensions of the foregoing; and

 

    	1

    	 

    

 

(c)          all proceeds of
the foregoing, including any claim by Grantor against third parties for past, present or future infringement of any Patent or any
Patent exclusively licensed under any Intellectual Property License, including the right to receive damages, or right to receive
license fees, royalties, and other compensation under any Patent Intellectual Property License.

 

3.           SECURITY FOR
OBLIGATIONS. This Patent Security Agreement and the Security Interest created hereby secures the payment and performance of
the Obligations, whether now existing or arising hereafter. Without limiting the generality of the foregoing, this Patent Security
Agreement secures the payment of all amounts which constitute part of the Obligations and would be owed by Grantor to the Foundation,
whether or not they are unenforceable or not allowable due to the existence of any bankruptcy or insolvency proceeding involving
Grantor.

 

4.           SECURITY AGREEMENT.
The Security Interest granted pursuant to this Patent Security Agreement is granted in conjunction with the security interests
granted to the Foundation pursuant to the Security Agreement. Grantor hereby acknowledges and affirms that the rights and remedies
of the Foundation with respect to the Security Interest in the Patent Collateral made and granted hereby are more fully set forth
in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if fully set forth herein.
To the extent there is any inconsistency between this Patent Security Agreement and the Security Agreement, the Security Agreement
shall control.

 

5.           AUTHORIZATION
TO SUPPLEMENT. If Grantor shall obtain rights to any new patent application or issued patent or become entitled to the benefit
of any patent application or patent for any divisional, continuation, continuation-in-part, reissue, or reexamination of any existing
patent or patent application, the provisions of this Patent Security Agreement shall automatically apply thereto. Grantor hereby
authorizes the Foundation unilaterally to modify this Patent Security Agreement by amending Schedule I to include any such
new patent rights of Grantor, provided that such amendment shall be provided to Grantor prior to unilaterally amending Schedule
I. Notwithstanding the foregoing, no failure to so modify this Patent Security Agreement or amend Schedule I shall in
any way affect, invalidate or detract from the Foundation’s continuing security interest in all Collateral, whether or not
listed on Schedule I.

 

6.           COUNTERPARTS.
This Patent Security Agreement may be executed in any number of counterparts and by different parties on separate counterparts,
each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute
but one and the same Patent Security Agreement. Delivery of an executed counterpart of this Patent Security Agreement by telefacsimile
or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart of this
Patent Security Agreement. Any party delivering an executed counterpart of this Patent Security Agreement by telefacsimile or other
electronic method of transmission also shall deliver an original executed counterpart of this Patent Security Agreement but the
failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Patent
Security Agreement.

 

    	2

    	 

    

 

7.          CONSTRUCTION.
This Patent Security Agreement is a Document and a Transaction Document. Unless the context of this Patent Security Agreement clearly
requires otherwise, references to the plural include the singular, references to the singular include the plural, the terms “includes”
and “including” are not limiting, and the term “or” has, except where otherwise indicated, the inclusive
meaning represented by the phrase “and/or”. The words “hereof”, “herein”, “hereby”,
“hereunder”, and similar terms in this Patent Security Agreement refer to this Patent Security Agreement as a whole
and not to any particular provision of this Patent Security Agreement. Section, subsection, clause, schedule, and exhibit references
herein are to this Patent Security Agreement unless otherwise specified. Any reference in this Patent Security Agreement to any
agreement, instrument, or document shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements,
substitutions, joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations,
amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements set forth herein).
The words “asset” and “property” shall be construed to have the same meaning and effect and to refer to
any and all tangible and intangible assets and properties, including cash, securities, accounts, and contract rights. Any reference
herein to the satisfaction, repayment or payment in full of the Obligations shall mean irrevocable satisfaction, repayment or payment
in accordance with the terms of the Note Purchase Agreement and the other Transaction Documents. Any reference herein to any person
shall be construed to include such person’s successors and permitted assigns.

 

8.          THE VALIDITY
OF THIS PATENT SECURITY AGREEMENT, THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF, AND THE RIGHTS OF THE PARTIES HERETO
WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR RELATED HERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF MARYLAND.

 

9.          THE PARTIES
AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS PATENT SECURITY AGREEMENT SHALL BE TRIED AND LITIGATED ONLY
IN THE STATE AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN BALTIMORE CITY, STATE OF MARYLAND; PROVIDED,
HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE FOUNDATION’S
OPTION, IN THE COURTS OF ANY JURISDICTION WHERE THE FOUNDATION ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY
MAY BE FOUND. THE FOUNDATION AND GRANTOR WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT
THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE
WITH THIS SECTION 9.

 

    	3

    	 

    

 

10.          TO THE MAXIMUM
EXTENT PERMITTED BY APPLICABLE LAW, THE FOUNDATION AND GRANTOR HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM
OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS PATENT SECURITY AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN,
INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. THE FOUNDATION AND
GRANTOR REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING
CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS PATENT SECURITY AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT.

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT
BLANK]

 

    	4

    	 

    

 

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

 

	GRANTOR:	VACCINOGEN, INC.,
	 	a Maryland corporation
	 	 
	 	By:	/s/ Michael G. Hanna, Jr.
	 	Michael G. Hanna, Jr., Ph.D.
	 	Chairman and Chief Executive Officer
	 	 
	 	By:	/s/ Andrew L. Tussing
	 	Andrew L. Tussing
	 	President and Chief Operating Officer

 

[SIGNATURE PAGE TO PATENT SECURITY AGREEMENT]

 

    	 

    	 

    

 

	 	ACCEPTED AND ACKNOWLEDGED BY:
	 	 
	THE FOUNDATION:	THE ABELL FOUNDATION, INC.
	 	 
	 	By:	/s/ Robert C. Embry, Jr.
	 	Robert C. Embry, Jr.
	 	President

 

[SIGNATURE PAGE TO PATENT SECURITY AGREEMENT]

 

    	 

    	 

    

 

SCHEDULE I

to

PATENT SECURITY AGREEMENT

 

Patents

 

	 	 	 	Application/	 
	Grantor	Country	Patent	Patent No.	Filing Date
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

Patent Licenses

 

[SCHEDULE
I TO PATENT SECURITY AGREEMENT]

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