Document:

Letter Agreement, dated July 14, 2006

 Exhibit 10.2 
  

			
	

	  	
		  	Human Resources Department
		  	375 West Street • Tel. (508) 580-1900
		  	West Bridgewater, MA 02375 • Fax. (508) 584-2384
		  	www.seracare.com

 July 14, 2006 
 Thomas Lawlor 
 66 Old North Trail 
 Mansfield, MA 02048

  

	 	Re:	Resignation; Amendment of Option Agreement; 

	 	    	Amendment to Employment Agreement 

 Dear Tom: 
 The purpose of this letter agreement is to set forth our agreement with respect to certain matters related to your resignation from employment with
SeraCare Life Sciences, Inc. (the “Company”), effective December 13, 2006. Reference is made to that certain Nonqualified Stock Option Agreement between you and the Company, dated as of December 13, 2004, and as
subsequently amended effective as of May 26, 2006 (the “Option Agreement”). Reference is also made to that certain Key Executive Employment Agreement between you and the Company, effective as of December 13, 2004 (the
“Employment Agreement”) 
 By executing this letter agreement, you and the Company agree as follows: 
 The Resignation 
 1. You hereby irrevocably
resign as an officer, director, member, manager and in any other capacity (other than as an employee) with the Company and each of its affiliates, effective as of the close of business on July 15, 2006. You hereby irrevocably resign as an
employee of the Company and each of its affiliates, effective as of the close of business on December 13, 2006. The Company and its affiliates hereby accept such resignation. 
 The Option Agreement 
 2. Concurrent with the execution of this letter agreement, you and the
Company agree to execute and deliver to each other the General Release Agreement attached hereto as Appendix 1. Notwithstanding anything else contained herein to the contrary, the amendment of the Option Agreement set forth below shall be
null and void if you revoke such General Release Agreement (or the release contained therein) within any revocation period afforded by applicable law. 

 3. Subject to paragraph 2 above, Section 4.3 of the Option Agreement is hereby amended and restated,
effective immediately, to read in its entirety as follows: 
 “4.3 Possible Acceleration of Vesting; Termination of
Employment or Service. 
 (a) Notwithstanding any other provision herein, if the Participant’s employment with the
Corporation terminates upon the expiration of the Employment Agreement on December 13, 2006, or if, at any time prior to that date, the Participant’s employment is terminated by the Corporation for any reason other than “Cause”
(as such term is defined in the Employment Agreement) or the Participant’s employment is terminated by the Participant for “Good Reason” (as such term is defined in the Employment Agreement), the Option, to the extent not then vested,
shall become fully vested as of the date of such termination of employment; provided, however, that such accelerated vesting shall be contingent upon the Participant’s providing to the Corporation, upon or promptly following his last day of
employment with the Corporation, a valid, executed supplemental release agreement in substantially the form attached hereto as Exhibit B, and such release agreement not having been revoked by the Participant pursuant to any revocation rights
afforded by applicable law. 
 (b) Subject to earlier termination on the Expiration Date of the Option or pursuant to
Section 4.2 above, if the Participant ceases to be employed by or ceases to provide services to the Corporation or a Subsidiary (the date of such cessation of employment or services for any reason is referred to herein as the “Severance
Date”), (i) the Participant will have until (A) if the Severance Date occurs during 2006, the later of December 31, 2006, or the 15th day of the third month following the date which is three (3) months after the Severance Date, or (B) if the Severance Date occurs at any time after 2006, the date that is three
(3) months after the Severance Date, to exercise the Option to the extent that it was vested on the Severance Date (after giving effect to any accelerated vesting pursuant to Section 4.3(a) above) (the date determined under this clause
(i) is referred to herein as the “Final Exercise Date”), (ii) the Option, to the extent not vested on the Severance Date, shall terminate on the Severance Date, and (iii) the Option, to the extent exercisable on or
before the Final Exercise Date and not exercised during such period, shall terminate at the close of business on the Final Exercise Date. Notwithstanding the foregoing provisions, if the Participant’s employment or services are terminated by
the Corporation for Cause, the Option (whether vested or not) shall terminate on the Severance Date.” 
 4. A new Exhibit B is hereby
added to the Option Agreement, effective immediately, to read in its entirety as set forth in Appendix 2 attached to this letter agreement. 
 5. This letter agreement will confirm that the Option Agreement was amended, effective as of May 26, 2006, which is the date that the order approving the repricing of your option was entered by the United States Bankruptcy Court for
the Southern District of California (the “Bankruptcy Court”), so that the per-share exercise price under the Option Agreement was 

  

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reset at $5.45 (which amount represents 110% of the closing price of the Company’s Common Stock on May 26, 2006). 
 The Employment Agreement 
 6. The Employment
Agreement shall terminate effective as of the close of business on December 13, 2006; provided, however, that notwithstanding anything to the contrary in this letter agreement, Section 5 (Customer Lists, Trade Secrets and Unfair
Competition) of the Employment Agreement shall continue to apply in accordance with its terms and all insurance coverage, including D & O coverage shall remain in effect with respect to all occurrences through Employee’s final day of
employment, December 13, 2006. 
 7. Section 4(b) (Bonuses), Section 6 (Termination) and Section 7 (Severance) of the
Employment Agreement are hereby deleted in their entirety, effective immediately. 
 8. Section 3 (Duties of Employee) of the Employment
Agreement is hereby amended and restated, effective immediately, to read as follows: 
 “3. Duties of
Employee. From and after July 14, 2006 through the close of business on December 13, 2006 (the “Transition Period”), Employee shall transition out of his position as Global Chief Operating Officer of the Company.
During the Transition Period, Employee shall provide such advice and transition services to the Company as its Board of Directors and its executive officers may request from time to time (the “Transition Services”); provided,
however, that the Company will use its reasonable efforts to allow Employee to provide such services from a location convenient to Employee (including telephonically) and provided, further, that, after July 2006, Employee shall
not be obligated to provide more than twenty hours of Transition Services in any calendar month and it is understood that Employee may engage in consulting or employment with other companies and that the Company shall make reasonable efforts to
accommodate any such obligations Employee may undertake. Notwithstanding the foregoing, during the Transition Period, Employee shall not directly or indirectly, either as an employee, employer, consultant, agent, principal, partner, stockholder,
corporate officer, board member, director or in any other individual or representative capacity, engage in any activity that is directly competitive with the Company’s business of manufacturing, marketing, distributing and selling to
diagnostic, therapeutic, drug discovery, and research organizations biological products and services currently offered by the Company, provided that Executive shall not be prohibited from continuing as a shareholder in any entity in which he was a
shareholder as of the commencement of the Transition Period. 
 Miscellaneous 
 9. Except as specifically amended by this letter agreement, the Employment Agreement and the Option Agreement shall remain in full force and
effect, and Mr. Lawlor hereby reaffirms all of the provisions of the Employment Agreement and the Option Agreement as amended by this letter agreement. 
  

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 10. On March 22, 2006, the Company filed a voluntary petition for reorganization under chapter 11 of
the United States Bankruptcy Code in the Bankruptcy Court. The Company’s case is No. 06-00510-11. Notwithstanding anything to the contrary stated herein, Mr. Lawlor acknowledges and agrees that the obligations of the Company under
this letter agreement are subject to the prior approval of the Bankruptcy Court which shall be sought by written filing by no later than two (2) weeks after the date on which Employee signs and submits this Agreement to the Company. 

11. The validity, meaning and effect of this letter agreement shall be determined in accordance with the internal laws of the State of California
without reference to the choice of law provisions of such state’s law. 
 12. This letter agreement may be executed in counterparts,
each of which when so executed and delivered shall be deemed to be an original for all purposes, but all such counterparts shall constitute but one in the same instrument. 
 13. The parties hereby agree that in the event that any dispute arises with respect to any provision of this letter agreement, such dispute shall be
submitted to arbitration in accordance with the provisions of Section 8(i) (Arbitration) of the Employment Agreement. 
 [Remainder of
page intentionally left blank] 
  

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 If this letter accurately sets forth our agreement with respect to the foregoing matters, please sign the
enclosed copy of this letter and return it to me. 
  

	
	 Sincerely,
 SeraCare Life Sciences,
Inc.

	
	 /s/ Robert Cresci

	 Robert Cresci,
 Chairman of the Board of Directors

 Acknowledged and Agreed: 
  

					
			
	By:	 	 /s/ Thomas Lawlor
	 	7/14/06
		 	 Thomas Lawlor
	 	

  

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 APPENDIX 1 
 GENERAL RELEASE AGREEMENT 
 1. Release. Thomas Lawlor (“Executive”), on his
own behalf and behalf of his descendants, dependents, heirs, executors, administrators, assigns and successors, and each of them, hereby acknowledges full and complete satisfaction of and releases and discharges and covenants not to sue SeraCare
Life Sciences, Inc. (the “Company”), its divisions, subsidiaries, parents, or affiliated corporations, past and present, and each of them, as well as its and their assignees, successors, directors, officers, shareholders, partners,
representatives, attorneys, agents or employees, past or present, or any of them (individually and collectively, “Releasees”), from and with respect to any and all claims, agreements, obligations, demands and causes of action, known
or unknown, suspected or unsuspected, arising out of or in any way connected with Executive’s employment or any other relationship with or interest in the Company or the termination thereof, including without limiting the generality of the
foregoing, any claim for severance pay, profit sharing, bonus or similar benefit, equity-based awards and/or dividend equivalents thereon, pension, retirement, life insurance, health or medical insurance or any other fringe benefit, or disability,
or any other claims, agreements, obligations, demands and causes of action, known or unknown, suspected or unsuspected resulting from any act or omission by or on the part of Releasees committed or omitted prior to the date of this General Release
Agreement (this “Agreement”), including, without limiting the generality of the foregoing, any claim under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the California Fair Employment and Housing
Act, or the California Family Rights Act, or any other federal, state or local law, regulation or ordinance (collectively, the “Claims”); provided, however, that the foregoing release does not apply to any obligation of the Company
to Executive pursuant to (1) that certain Key Executive Employment Agreement between Executive and the Company, dated as of December 13, 2004 (the “Employment Agreement”), or (2) any equity-based awards previously
granted by the Company to Executive. In addition, this release does not cover any Claim that cannot be so released as a matter of applicable law. Executive acknowledges and agrees that he has received any and all leave and other benefits that he has
been and is entitled to pursuant to the Family and Medical Leave Act of 1993. 
 The Company, its divisions, subsidiaries, parents, or
affiliated corporations, past and present, and each of them, as well as its and their assignees, successors, directors and officers, hereby agree and acknowledge that by signing this Agreement and accepting the good and valuable consideration set
forth in this Agreement, they are waiving their right to assert any and all forms of legal Claims against Executive with respect to Executive’s service with the Company committed or omitted prior to the date of this Agreement; provided,
however, that such release of Executive shall not extend to any claims, known or unknown, suspected or unsuspected, against Executive that Executive engaged in reckless, fraudulent or intentional acts or omissions that (i) constitute a breach
of fiduciary duty, or (ii) constitute a crime under any federal, state, or local statute, law, ordinance or regulation, and provided further, that the foregoing release shall not be construed to release Executive from any of his ongoing
obligations under his Confidentiality and Inventions Assignment Agreement and Section 5 of his Employment Agreement. 
  

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 2. Acknowledgement of Payment of Wages. Except for accrued vacation (which the parties agree
totals approximately 22 days of pay) and salary for the current pay period, Executive acknowledges that he has received all amounts owed for his regular and usual salary (including, but not limited to, any bonus, severance, or other wages), and
usual benefits through the date of this Agreement. 
 3. Waiver of Civil Code Section 1542. This Agreement is intended to be
effective as a general release of and bar to each and every Claim hereinabove specified. Accordingly, the parties hereto hereby expressly waive any rights and benefits conferred by Section 1542 of the California Civil Code as to the Claims.
Section 1542 of the California Civil Code provides: 
 “A GENERAL RELEASE DOES NOT EXTEND TO A CLAIM WHICH THE CREDITOR DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 
 The parties hereto acknowledge that they later may discover claims, demands, causes of action or facts in addition to or different from those which they now know or believe to exist with respect to the subject matter
of this Agreement and which, if known or suspected at the time of executing this Agreement, may have materially affected its terms. Nevertheless, the parties hereby waive, as to the Claims, any claims, demands, and causes of action that might arise
as a result of such different or additional claims, demands, causes of action or facts. 
 4. ADEA Waiver. Executive expressly
acknowledges and agrees that by entering into this Agreement, he is waiving any and all rights or claims that he may have arising under the Age Discrimination in Employment Act of 1967, as amended (“ADEA”), which have arisen on or
before the date of execution of this Agreement. Executive further expressly acknowledges and agrees that: 
 (a) In return for this
Agreement, he will receive consideration beyond that which he was already entitled to receive before entering into this Agreement; 
 (b) He
is hereby advised in writing by this Agreement to consult with an attorney before signing this Agreement; 
 (c) He was given a copy of this
Agreement on July 14, 2006 and informed that he had twenty-one (21) days within which to consider the Agreement and that if he wished to executive this Agreement prior to expiration of such 21-day period, he should execute the
Acknowledgement and Waiver attached hereto as Exhibit A; 
 (d) Nothing in this Agreement prevents or precludes Executive from challenging or
seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs from doing so, unless specifically authorized by federal law; and 
  

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 (e) He was informed that he has seven (7) days following the date of execution of this Agreement in
which to revoke this Agreement, and this Agreement will become null and void if Executive elects revocation during that time. Any revocation must be in writing and must be received by the Company during the seven-day revocation period. In the event
that Executive exercises his right of revocation, neither the Company nor Executive will have any obligations under this Agreement. 
 5.
No Transferred Claims. Executive represents and warrants to the Company that he has not heretofore assigned or transferred to any person not a party to this Agreement any released matter or any part or portion thereof. 
 6. Miscellaneous. The following provisions shall apply for purposes of this Agreement: 
 (a) Number and Gender. Where the context requires, the singular shall include the plural, the plural shall include the singular, and any gender
shall include all other genders. 
 (b) Section Headings. The section headings of, and titles of paragraphs and subparagraphs
contained in, this Agreement are for the purpose of convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation thereof. 
 (c) Governing Law. This Agreement, and all questions relating to its validity, interpretation, performance and enforcement, as well as the legal
relations hereby created between the parties hereto, shall be governed by and construed under, and interpreted and enforced in accordance with, the laws of the state of California, notwithstanding any California or other conflict of law provision to
the contrary. 
 (d) Severability. If any provision of this Agreement or the application thereof is held invalid, the invalidity shall
not affect other provisions or applications of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Agreement are declared to be severable. 
 (e) Modifications. This Agreement may not be amended, modified or changed (in whole or in part), except by a formal, definitive written agreement
expressly referring to this Agreement, which agreement is executed by both of the parties hereto. 
 (f) Waiver. Neither the failure
nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or
further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to
any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
  

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 (g) Arbitration. Any controversy arising out of or relating to this Agreement shall be submitted
to arbitration in accordance with the arbitration provisions of the Employment Agreement. 
 (h) Counterparts. This Agreement may be
executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become binding when
one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories. Photographic copies of such signed counterparts may be used in lieu of the originals for any
purpose. 
  

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 The undersigned have read and understand the consequences of this Agreement and voluntarily sign it. The
undersigned declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. 
 EXECUTED
this 14th day of July 2006, at Plymouth County, MA. 
  

	
	“Executive”
	
	 /s/ Thomas Lawlor

	 Thomas Lawlor

  

			
	SERACARE LIFE SCIENCES, INC.
		
	By:	 	 /s/ Robert Cresci

		 	 Robert Cresci
 Chairman of the Board of Directors

  

 10 

 EXHIBIT A 
 ACKNOWLEDGMENT AND WAIVER 
 I, Thomas Lawlor, hereby acknowledge that I was given 21 days to consider
the foregoing Agreement and voluntarily chose to sign the Agreement prior to the expiration of the 21-day period. 
 I declare under penalty
of perjury under the laws of the State of California that the foregoing is true and correct. 
 EXECUTED this 14th day of July 2006, at
Plymouth County, MA. 
  

	
	
	 /s/ Thomas Lawlor

	 Thomas Lawlor

  

 11 

 APPENDIX 2 
 “EXHIBIT B 
 SUPPLEMENTAL RELEASE AGREEMENT 
 1. Release. Thomas Lawlor (“Executive”), on his own behalf and behalf of his descendants, dependents, heirs, executors,
administrators, assigns and successors, and each of them, hereby acknowledges full and complete satisfaction of and releases and discharges and covenants not to sue SeraCare Life Sciences, Inc. (the “Company”), its divisions,
subsidiaries, parents, or affiliated corporations, past and present, and each of them, as well as its and their assignees, successors, directors, officers, shareholders, partners, representatives, attorneys, agents or employees, past or present, or
any of them (individually and collectively, “Releasees”), from and with respect to any and all claims, agreements, obligations, demands and causes of action, known or unknown, suspected or unsuspected, arising out of or in any way
connected with Executive’s employment or any other relationship with or interest in the Company or the termination thereof, including without limiting the generality of the foregoing, any claim for severance pay, profit sharing, bonus or
similar benefit, equity-based awards and/or dividend equivalents thereon, pension, retirement, life insurance, health or medical insurance or any other fringe benefit, or disability, or any other claims, agreements, obligations, demands and causes
of action, known or unknown, suspected or unsuspected resulting from any act or omission by or on the part of Releasees committed or omitted prior to the date of this Supplemental Release Agreement (this “Agreement”), including,
without limiting the generality of the foregoing, any claim under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the California Fair Employment and Housing Act, or the California Family Rights Act, or any other
federal, state or local law, regulation or ordinance (collectively, the “Claims”); provided, however, that the foregoing release does not apply to any obligation of the Company to Executive pursuant to any equity-based awards
previously granted by the Company to Executive. In addition, this release does not cover any Claim that cannot be so released as a matter of applicable law. Executive acknowledges and agrees that he has received any and all leave and other benefits
that he has been and is entitled to pursuant to the Family and Medical Leave Act of 1993. 
 The Company, its divisions, subsidiaries,
parents, or affiliated corporations, past and present, and each of them, as well as its and their assignees, successors, directors and officers, hereby agree and acknowledge that by signing this Agreement and accepting the good and valuable
consideration set forth in this Agreement, they are waiving their right to assert any and all forms of legal Claims against Executive with respect to Executive’s service with the Company committed or omitted prior to the date of this Agreement;
provided, however, that such release of Executive shall not extend to any claims, known or unknown, suspected or unsuspected, against Executive that Executive engaged in reckless, fraudulent or intentional acts or omissions that (i) constitute
a breach of fiduciary duty, or (ii) constitute a crime under any federal, state, or local statute, law, ordinance or regulation, and provided further, that the foregoing release shall not be construed to release Executive from any of his
ongoing obligations under his Confidentiality and Inventions Assignment Agreement and Section 5 of his Employment Agreement. 

 2. Waiver of Civil Code Section 1542. This Agreement is intended to be effective as a general
release of and bar to each and every Claim hereinabove specified. Accordingly, the parties hereto hereby expressly waive any rights and benefits conferred by Section 1542 of the California Civil Code as to the Claims. Section 1542 of the
California Civil Code provides: 
 “A GENERAL RELEASE DOES NOT EXTEND TO A CLAIM WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN
HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 
 The parties hereto acknowledge that they later may discover claims, demands, causes of action or facts in addition to or different from those which they now know or believe to exist with respect to the subject matter of this Agreement and
which, if known or suspected at the time of executing this Agreement, may have materially affected its terms. Nevertheless, the parties hereby waive, as to the Claims, any claims, demands, and causes of action that might arise as a result of such
different or additional claims, demands, causes of action or facts. 
 3. ADEA Waiver. Executive expressly acknowledges and agrees
that by entering into this Agreement, he is waiving any and all rights or claims that he may have arising under the Age Discrimination in Employment Act of 1967, as amended (“ADEA”), which have arisen on or before the date of
execution of this Agreement. Executive further expressly acknowledges and agrees that: 
 (a) In return for this Agreement, he will receive
consideration beyond that which he was already entitled to receive before entering into this Agreement; 
 (b) He is hereby advised in
writing by this Agreement to consult with an attorney before signing this Agreement; 
 (c) He was given a copy of this Agreement on
[            , 2006] and informed that he had twenty-one (21) days within which to consider the Agreement and that if he wished to executive this Agreement prior to expiration
of such 21-day period, he should execute the Acknowledgement and Waiver attached hereto as Exhibit B-1; 
 (d) Nothing in this Agreement
prevents or precludes Executive from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs from doing so, unless specifically authorized by
federal law; and 

 (e) He was informed that he has seven (7) days following the date of execution of this Agreement in
which to revoke this Agreement, and this Agreement will become null and void if Executive elects revocation during that time. Any revocation must be in writing and must be received by the Company during the seven-day revocation period. In the event
that Executive exercises his right of revocation, neither the Company nor Executive will have any obligations under this Agreement. 
 4.
No Transferred Claims. Executive represents and warrants to the Company that he has not heretofore assigned or transferred to any person not a party to this Agreement any released matter or any part or portion thereof. 
 5. Miscellaneous. The following provisions shall apply for purposes of this Agreement: 
 (a) Number and Gender. Where the context requires, the singular shall include the plural, the plural shall include the singular, and any gender
shall include all other genders. 
 (b) Section Headings. The section headings of, and titles of paragraphs and subparagraphs
contained in, this Agreement are for the purpose of convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation thereof. 
 (c) Governing Law. This Agreement, and all questions relating to its validity, interpretation, performance and enforcement, as well as the legal
relations hereby created between the parties hereto, shall be governed by and construed under, and interpreted and enforced in accordance with, the laws of the state of California, notwithstanding any California or other conflict of law provision to
the contrary. 
 (d) Severability. If any provision of this Agreement or the application thereof is held invalid, the invalidity shall
not affect other provisions or applications of this Agreement which can be given effect without the invalid provisions or applications and to this end the provisions of this Agreement are declared to be severable. 
 (e) Modifications. This Agreement may not be amended, modified or changed (in whole or in part), except by a formal, definitive written agreement
expressly referring to this Agreement, which agreement is executed by both of the parties hereto. 
 (f) Waiver. Neither the failure
nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or
further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to
any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 

 (g) Arbitration. Any controversy arising out of or relating to this Agreement shall be submitted
to arbitration in accordance with the arbitration provisions of that certain Key Executive Employment Agreement between Executive and the Company, dated as of December 13, 2004. 
 (h) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party
whose signature appears thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of
the parties reflected hereon as the signatories. Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose. 

 The undersigned have read and understand the consequences of this Agreement and voluntarily sign it. The
undersigned declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. 
 EXECUTED
this              day of              2006, at
                             County,
            . 
  

	
	“Executive”
	
	   
	 Thomas Lawlor

  

			
	SERACARE LIFE SCIENCES, INC.
		
	By:	 	  
		 	 [NAME]

 EXHIBIT B-1 
 ACKNOWLEDGMENT AND WAIVER 
 I,
                        , hereby acknowledge that I was given 21 days to consider the foregoing Agreement and voluntarily
chose to sign the Agreement prior to the expiration of the 21-day period. 
 I declare under penalty of perjury under the laws of the State
of California that the foregoing is true and correct. 
 EXECUTED this
             day of                      2006, at
             County,             . 
  

	
	
	   
	 Thomas LawlorExhibit 10.1

 Exhibit 10.1 
  

 SECURITIES PURCHASE AND REGISTRATION RIGHTS AGREEMENT 
 Between 
 STAR SCIENTIFIC, INC.,

 as Issuer, 
 And

 Iroquois Capital, 
 as Investor 
 July 14, 2006 
  

 This SECURITIES PURCHASE AND REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is entered
into effective as of July 14, 2006 between Star Scientific, Inc., a Delaware corporation (the “Company”), and Iroquois Capital (“Investor”). 
 WHEREAS, the Company and Investor have entered into a Securities Purchase and Registration Rights Agreement, dated as of September 15, 2005
(“September Purchase Agreement”), whereby the Company sold to Investor and Investor purchased from the Company a warrant (the “September Warrant”) to purchase 1,000,000 shares (the “September Warrant
Shares”) of the Company’s common stock, par value $0.0001 per share (“Common Stock”), at a per share price equal to $4.00, which was subsequently amended to $4.15 per share (the “September Exercise
Price”); 
 WHEREAS, the Company and Investor desire that, upon the terms and conditions set forth in this Agreement (a) the
Company will reduce the September Exercise Price from $4.15 to $2.00 and Investor will exercise the September Warrant and purchase from the Company and the Company will sell and issue to the Investor the September Warrant Shares and
(b) Investor will purchase from the Company and the Company will sell and issue to Investor a warrant (the “Warrant”) to purchase an additional 1,000,000 shares (the “Warrant Shares”) of Common Stock at a per
share price equal to $3.00 (the “Exercise Price”); and 
 WHEREAS, Investor will have registration rights with respect to
the Warrant Shares and other Registrable Securities (as defined herein) pursuant to the terms of this Agreement. 
 NOW, THEREFORE, in
consideration of the foregoing premises and the covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1. Agreement to Sell and Purchase the September Warrant Shares and Warrant. At the Closing (as defined in Section 2), the Company will sell to
Investor, and Investor will purchase from the Company, upon the terms and subject to the conditions hereinafter set forth the September Warrant Shares and the Warrant for the aggregate purchase price set forth for Investor on the signature page
hereto. 
 2. Delivery of the September Warrant Shares and Warrant at Closing. The completion of the purchase, sale and issuance of
the September Warrant Shares and the Warrant (the “Closing”) shall occur on the date of this Agreement (the “Closing Date”) (or upon such other date as the Company and Investor shall agree), at the offices of the
Company’s counsel. At the Closing, the Company shall deliver to Investor (a) one or more stock certificates, registered in Investor’s name and address as set forth on the signature page hereto, representing the September Warrant
Shares and (b) the Warrant issued in the name of Investor. The Company’s obligation to issue the September Warrant Shares and the Warrant to Investor shall be subject to the following conditions, any one or more of which may be waived by
the Company: (a) receipt by the Company of a wire transfer of immediately available funds to an account designated in writing by the Company, in the full amount of the purchase price for the September Warrant Shares and Warrant as set forth on
the signature page hereto; (b) receipt by the Company of the original September Warrant along with an executed Notice of Exercise Form annexed thereto; and (c) the accuracy, in all material respects, of the representations and warranties
made by Investor and the fulfillment, in all material respects, of those undertakings of Investor to be fulfilled prior to the Closing. Investor’s obligation to purchase 
  

 1 

 the September Warrant Shares and Warrant shall be subject to the following conditions, any one or more of which may be
waived by Investor (provided that no such waiver shall be deemed given unless in writing and executed by Investor): (a) receipt by Investor of a counter-signed copy of this Agreement executed by the Company; (b) receipt by Investor of one
or more stock certificates representing the September Warrant Shares; (c) receipt by Investor of a copy of the Warrant and (d) the accuracy, in all material respects, of the representations and warranties made by the Company and the
fulfillment, in all material respects, of those undertakings of the Company to be fulfilled prior to the Closing. 
 3. Representations,
Warranties and Covenants of the Company. The Company hereby represents and warrants to, and covenants with, Investor, as follows: 
 3.1
Organization. Each of the Company and its Subsidiaries (as defined in Rule 405 under the Securities Act of 1933, as amended (the “Securities Act”)) is duly organized and validly existing in good standing under the laws
of the jurisdiction of its organization. Each of the Company and its Subsidiaries has full power and authority to own, operate and occupy its properties and to conduct its business as presently conducted and is registered or qualified to do business
and in good standing in each jurisdiction in which it owns or leases property or transacts business and where the failure to be so qualified would have a material adverse effect upon the financial condition or business, operations, assets or
prospects of the Company and its Subsidiaries, taken as a whole (a “Material Adverse Effect”). 
 3.2 Due
Authorization. The Company has all requisite power and authority to execute, deliver and perform its obligations under this Agreement and the Warrant, and has taken all necessary corporate action to enter into and perform this Agreement, to
issue the September Warrant Shares in accordance with the terms of this Agreement, to enter into and perform the Warrant, and to issue the Warrant Shares in accordance with the terms of the Warrant. This Agreement has been, and upon the Closing in
accordance with the terms of the Agreement, the Warrant will be, duly authorized, validly executed and delivered by the Company and constitutes, or will constitute, a legal, valid and binding agreement of the Company enforceable against the Company
in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and except
as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). Upon their issuance in accordance with the terms of this Agreement, the September Warrant
Shares will be duly authorized, validly issued, fully paid and non-assessable, the Warrant will be duly authorized and validly issued and the Warrant Shares, upon exercise of the Warrant in accordance with its terms, will be duly authorized, validly
issued, fully paid and non-assessable. 
 3.3 Non-Contravention. Except as would not reasonably be expected to have a Material Adverse
Effect, the execution and delivery of this Agreement, the issuance and sale of the September Warrant Shares and the Warrant under this Agreement, the fulfillment of the terms of this Agreement and the consummation of the transactions contemplated
hereby will not (A) conflict with or constitute a violation of, or default (with or without the giving of notice or the passage of time or both) under, (i) any material bond, debenture, note or other evidence of indebtedness, or under any
material lease, indenture, mortgage, deed of trust, loan agreement, joint venture or other agreement or instrument to which the Company or any Subsidiary is a party or by which it or any of 
  

 2 

 its Subsidiaries or their respective properties are bound, (ii) the charter, by-laws or other organizational
documents of the Company or any Subsidiary, or (iii) any law, administrative regulation, ordinance or order of any court or governmental agency, arbitration panel or authority applicable to the Company or any Subsidiary or their respective
properties, or (B) result in the creation or imposition of any lien, encumbrance, claim, security interest or restriction whatsoever upon any of the material properties or assets of the Company or any Subsidiary or an acceleration of
indebtedness pursuant to any obligation, agreement or condition contained in any material bond, debenture, note or any other evidence of indebtedness or any material indenture, mortgage, deed of trust or any other agreement or instrument to which
the Company or any Subsidiary is a party or by which any of them is bound or to which any of the property or assets of the Company or any Subsidiary is subject. No consent, approval, authorization or other order of, or registration, qualification or
filing with, any regulatory body, administrative agency, self-regulatory organization, stock exchange or market, or other governmental body in the United States is required for the execution and delivery of this Agreement, the valid issuance and
sale of the September Warrant Shares and Warrant pursuant to this Agreement, other than such as have been made or obtained, and except for any securities filings required to be made under federal or state securities laws. 
 3.4 SEC Filings. Since January 1, 2006, the Company and its Subsidiaries have filed all reports, schedules, forms, statements and other
documents required to be filed by it with the Securities and Exchange Commission (the “SEC” or “Commission”) pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the
“1934 Act”) (collectively, the “SEC Documents”). As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC
promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or
necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 
 3.5
Absence of Certain Change. Except as disclosed in the SEC Documents filed at least thirty (30) days prior to the date hereof, since March 31, 2006 there has been no adverse change or adverse development in the business, properties,
assets, operations, financial condition, prospects, liabilities or results of operations of the Company or its Subsidiaries which to the knowledge of the Company would reasonably be expected to have a Material Adverse Effect. 
 3.6 Capitalization. As of the date hereof, the authorized capital stock of the Company consists of (i) 100,000,000 shares of Common Stock, of
which as of the date hereof, 77,151,415 shares are issued and outstanding, 10,982,707 shares are issuable and reserved for issuance pursuant to the Company’s stock option plans or securities exercisable or exchangeable for, or convertible into,
shares of Common Stock, and (ii) 100,000 shares of preferred stock, of which as of the date hereof no shares are issued. All of such outstanding shares have been, or upon issuance will be, validly issued, fully paid and nonassessable. Except as
disclosed in the SEC Documents, as of the date hereof, (i) no shares of the Company’s capital stock are subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company,
(ii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its
Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become 
  

 3 

 bound to issue additional shares of capital stock of the Company or any of its Subsidiaries or options, warrants, scrip,
rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries, (iii) there are no outstanding securities of
the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a
security of the Company or any of its Subsidiaries, and (iv) the Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement. The Company disclosed in its SEC Documents
or has furnished to Investor true and correct copies of the Company’s Certificate of Incorporation, as amended and as in effect on the date hereof (the “Certificate of Incorporation”), and the Company’s By-laws, as in
effect on the date hereof (the “By-laws”). 
 3.7 Registration of September Warrant Shares. 
 (a) The September Warrant Shares have been duly registered for resale pursuant to a registration statement (the “September Warrant Share
Registration Statement”) filed pursuant to the September Purchase Agreement. 
 (b) The September Warrant Share Registration
Statement has been declared effective by the SEC, and no stop order relating thereto has been issued and, to the Company’s knowledge no such stop order has been threatened or proceeding to issue such a stop order commenced. 
 (c) The Prospectus contained in the September Warrant Share Registration Statement is current and may be used by the Investor for resale of the September
Warrant Shares. 
 (d) The September Warrant Shares are duly listed for trading on the Nasdaq Global Market (the “Principal
Market”). 
 3.8. Listing and Maintenance Requirements. 
 (a) Since January 1, 2006, Company has been in compliance with all listing and maintenance requirements for the Principal Market except, in each
case, as could not reasonably be expected to result in a Material Adverse Effect. Since January 1, 2006, the Company has not received any communication, written or oral, from the SEC or the Principal Market regarding the suspension or delisting
of the Common Stock from the Principal Market. 
 (b) The issuance of the September Warrant Shares, the Warrant and the Warrant Shares to the
Investor do not and will not violate (when considered in conjunction with any other transactions that would be integrated for purposes thereof), any rules of the Principal Market, including, without limitation, Rule 4350(i). 
 3.9 Litigation. 
 (a) The Company
represents that it has no new information regarding the timing or content of a decision by the court in its patent infringement case against RJR filed in the United States District Court for Maryland (the “RJR Litigation”) other
than disclosed in its public filings with the SEC. 
  

 4 

 (b) The Company covenants that it will not agree to any settlement of the RJR Litigation within 10
business days of the date hereof. 
 3.10 Broker. The Company has taken no action which would give rise to any claim by any person for
brokerage commissions, finder’s fees or similar payments by the Company or the Investor relating to this Agreement or the transactions contemplated hereby. 
 4. Representations, Warranties and Covenants of Investor. 
 4.1 Organization. Investor is duly
organized and validly existing in good standing under the laws of the jurisdiction of its organization. Investor has full power and authority to own, operate and occupy its properties and to conduct its business as presently conducted and is
registered or qualified to do business and in good standing in each jurisdiction in which it owns or leases property or transacts business and where the failure to be so qualified would have a material adverse effect on the financial condition of
Investor. 
 4.2 Due Authorization. Investor has all requisite power and authority to execute, deliver and perform its obligations
under this Agreement, and has taken all necessary corporate, company, partnership or individual action as the case may be to enter and perform this Agreement. This Agreement has been duly authorized and validly executed and delivered by Investor and
constitutes a legal, valid and binding agreement of Investor enforceable against Investor in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 4.3 Non-Contravention. The execution and delivery of this Agreement, the purchase of the September Warrant Shares and the Warrant
under this Agreement, the fulfillment of the terms of this Agreement and the consummation of the transactions contemplated hereby will not (A) conflict with or constitute a violation of, or default (with or without the giving of notice or the
passage of time or both) under, (i) any material bond, debenture, note or other evidence of indebtedness, or under any material lease, indenture, mortgage, deed of trust, loan agreement, joint venture or other agreement or instrument to which
Investor is a party, (ii) the charter, by-laws or other organizational documents of Investor, as applicable, or (iii) any law, administrative regulation, ordinance or order of any court or governmental agency, arbitration panel or
authority applicable to Investor or its property, or (B) result in the creation or imposition of any lien, encumbrance, claim, security interest or restriction whatsoever upon any of the material properties or assets of Investor or an
acceleration of indebtedness pursuant to any obligation, agreement or condition contained in any material bond, debenture, note or any other evidence of indebtedness or any material indenture, mortgage, deed of trust or any other agreement or
instrument to which Investor is a party or by which any of them is bound or to which any of the property or assets of Investor is subject. No consent, approval, authorization or other order of, or registration, qualification or filing with, any
regulatory body, administrative agency, self-regulatory organization, stock exchange or market, or other governmental body in the United States is required for the execution and delivery of this Agreement and the purchase of the September Warrant
Shares and the Warrant by Investor, other than such as have been made or obtained. 
  

 5 

 4.4 Private Placement. Investor represents and warrants to, and covenants with, the Company that
Investor is acquiring the September Warrant Shares and the Warrant for its own account for investment only and with no present intention of distributing any of the September Warrant Shares, the Warrant or the Warrant Shares, in violation of
applicable securities laws. Investor has been advised and understands that neither the Warrant nor the Warrant Shares have been registered under the Securities Act or under the “blue sky” or similar laws of any jurisdiction and the
Warrant, Warrant Shares and September Warrant Shares may be resold only if registered pursuant to the provisions of the Securities Act and such other laws, if applicable, or, subject to the terms and conditions of this Agreement, if an exemption
from registration is available. Investor has been advised and understands that the Company, in issuing the September Warrant Shares and the Warrant, is relying upon, among other things, the representations and warranties of Investor herein in
concluding that such issuance is a “private offering” and is exempt from the registration provisions of the Securities Act. 
 4.5
No Short Sales. Investor represents, warrants and covenants that neither Investor nor any of its affiliates has sold at any time, prior to the Closing, any shares of the Common Stock unless such Investor owned such shares of the Common Stock
at the time of such sale and promptly delivered such shares of Common Stock against such sale. 
 4.6 No Advice. Investor understands
that nothing in this Agreement or any other materials presented to Investor in connection with the purchase and sale of the September Warrant Shares and the Warrant constitutes legal, tax or investment advice. Investor has consulted such legal, tax
and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the September Warrant Shares and the Warrant. 
 4.7 Accredited Investor. Investor is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D under the
Securities Act and is able to bear the risk of its investment in the September Warrant Shares, Warrant, and Warrant Shares. Investor has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and
risks of the purchase of the September Warrant Shares, Warrant and Warrant Shares. 
 4.8 Limited Representations. Investor and its
advisors, if any, have been furnished with all materials relating to the business, finances and operations of the Company and its Subsidiaries which have been requested and materials relating to the offer and sale of the September Warrant Shares,
Warrant and Warrant Shares which have been requested by Investor. Investor and its advisors, if any, have been afforded the opportunity to ask such questions of the Company as it deems appropriate for purposes of the investment contemplated hereby.
Investor acknowledges that the most recent disclosure of the Company’s results is for the three month period ending on, and the most recent disclosure of the Company’s financial condition is at, March 31, 2006, as reported on the
Company’s quarterly report on Form 10-Q, and that no information more recent than such date has been provided to Investor as to the Company’s results, operations, financial condition, business or prospects. Investor understands that its
purchase of the September Warrant Shares, Warrant and, if applicable, Warrant Shares involves a high degree of risk and that Investor may lose its entire investment in the September Warrant Shares, the Warrant and if applicable the Warrant Shares,
and that Investor can afford to do so without material adverse consequences to its financial condition. Investor is not relying on any information provided by the Company and its Subsidiaries, except to the extent provided in Section 3 herein.

  

 6 

 4.9 No Recommendation. Investor understands that no United States federal or state agency or any
other government or governmental agency has passed on or made any recommendation or endorsement of the September Warrant Shares, Warrant or Warrant Shares or the fairness or suitability of an investment in the September Warrant Shares, Warrant or
Warrant Shares nor have such authorities passed upon or endorsed the merits thereof. 
 4.10 Restrictive Legend. The Company shall
issue the Warrant and certificates for the September Warrant Shares and, if applicable, Warrant Shares to Investor with a legend as described in Section 6 below. Investor covenants that, in connection with any transfer of the September Warrant
Shares or Warrant Shares pursuant to the registration statement contemplated by Section 5 hereto, it will comply with the applicable prospectus delivery requirements of the Securities Act, provided that copies of a current prospectus relating
to such effective registration statement are or have been supplied to Investor. 
 4.11 Residence. Investor is a resident of the State
of New York. 
 4.12 No Market. Investor understands that there is no public trading market for the Warrant, that none is expected to
develop, and that the Warrant and Warrant Shares must be held indefinitely unless and until the sale of such Warrant or Warrant Shares are registered under the Securities Act or subject to the terms and conditions of this Agreement, an exemption
from registration is available. Investor has been advised or is aware of the provisions of Rule 144 promulgated under the Securities Act. 
 4.13 No Commissions. Investor has taken no action which would give rise to any claim by any person for brokerage commissions, finder’s fees or similar payments by the Company or Investor relating to this Agreement or the
transactions contemplated hereby. 
 4.14 Transactional Exemption. Investor understands that the September Warrant Shares, Warrant and
Warrant Shares are being offered and sold in reliance on a transactional exemption from the registration requirements of Federal and state securities laws and that the Company is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of Investor set forth herein in order to determine the applicability of such exemptions and the suitability of Investor to acquire the September Warrant Shares, Warrant and Warrant Shares.

 4.15 Investor Undertaking. Investor covenants that it shall not sell, transfer, assign, hypothecate or pledge in any way any of the
September Warrant Shares or the Warrant Shares issued without a Securities Legend in accordance with Section 6 below except for sales (A) in accordance with the terms of the Plan of Distribution section of the prospectus contained in the
Registration Statement and in compliance with prospectus delivery requirements or (B) in accordance with the requirements of Rule 144 under the 1933 Act. Investor further agrees to indemnify the Company against any loss, cost or expense,
including reasonable expenses, incurred as a result of such legend removal on Investor’s behalf. 
  

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 5. Registration Rights. 
 5.1 Certain Definitions 
 “Holder” and “Holders” shall include Investor and any transferee or transferees of Registrable Securities to whom the registration rights conferred by this Agreement have been transferred in compliance with this
Agreement. 
 The terms “register,” “registered” and “registration” shall refer to a
registration effected by preparing and filing a registration statement in compliance with the Securities Act and applicable rules and regulations thereunder, and the declaration or ordering of the effectiveness of such registration statement.

 “Registrable Securities” shall mean: (i) the Warrant Shares issued or issuable to each Holder (a) with respect
to the Warrant Shares, upon exercise of the Warrant, (b) upon any distribution with respect to, any exchange for or any replacement of the Warrant, or (c) upon any conversion, exercise or exchange of any securities issued in connection
with any such distribution, exchange or replacement; (ii) securities issued or issuable upon any stock split, stock dividend, recapitalization or similar event with respect to the foregoing; and (iii) any other security issued as a
dividend or other distribution with respect to, in exchange for or in replacement of the securities referred to in the preceding clauses, except that any such Warrant Shares or other securities shall cease to be Registrable Securities when
(x) they have been sold to the public or (y) they may be sold by the Holder thereof under Rule 144(k). 
 “Registration
Expenses” shall mean all expenses to be incurred by the Company in connection with each Holder’s registration rights under this Agreement (such amount not to exceed $5,000 in the aggregate), including, without limitation, all
registration and filing fees, printing expenses, fees and disbursements of counsel for the Company, and blue sky fees and expenses, reasonable fees and disbursements of counsel to Holders (using a single counsel selected by a majority in interest of
the Holders) for a review of the Registration Statement and related documents, and the expense of any special audits incident to or required by any such registration (but excluding the compensation of regular employees of the Company, which shall be
paid in any event by the Company). 
 “Selling Expenses” shall mean all underwriting discounts, selling commissions and
transfer taxes applicable to the sale of Registrable Securities and all fees and disbursements of counsel for Holders not included within “Registration Expenses”. 
 5.2 Registration Requirements. The Company shall use its reasonable best efforts to effect the registration of the resale of the Registrable
Securities (including, without limitation, the execution of an undertaking to file post-effective amendments, appropriate qualification under applicable blue sky or other state securities laws and appropriate compliance with applicable regulations
issued under the Securities Act) as would permit or facilitate the resale of all the Registrable Securities in the manner (including manner of sale) and in all states reasonably requested by the Holder. Such reasonable best efforts by the Company
shall include, without limitation, the following: 
 (a) The Company shall, as expeditiously as possible: 
 (i) But in any event within 60 days of the Closing, prepare and file a registration statement with the Commission pursuant to Rule 415
under the 
  

 8 

 Securities Act on Form S-3 under the Securities Act (or in the event that the Company is ineligible to
use such form, such other form as the Company is eligible to use under the Securities Act provided that such other form shall be converted into an S-3 promptly after Form S-3 becomes available to the Company) covering resales by the Holders as
selling stockholders (not underwriters) of the Registrable Securities (the “Registration Statement”). The number of shares of Common Stock initially included in such Registration Statement shall be no less than the Warrant Shares
issuable upon full exercise of the Warrant. Thereafter the Company shall use its reasonable best efforts to cause such Registration Statement and other filings to be declared effective as soon as possible, and in any event prior to 120 days (or, if
the SEC elects to review the Registration Statement, 180 days) following the Closing (the “Effectiveness Deadline”). Without limiting the foregoing, the Company will promptly respond to all SEC comments, inquiries and requests, and
shall request acceleration of effectiveness at the earliest possible date. The Company shall provide the Holders reasonable opportunity to review the portions of any such Registration Statement or amendment or supplement thereto containing
disclosure regarding the Holders prior to filing. 
 (ii) Prepare and file with the SEC such amendments and supplements to
such Registration Statement and the prospectus used in connection with such Registration Statement as may be necessary to comply with the provisions of the Act with respect to the disposition of all securities covered by such Registration Statement
and notify the Holders of the filing and effectiveness of such Registration Statement and any amendments or supplements. 
 (iii) Furnish to each Holder such numbers of copies of a current prospectus conforming with the requirements of the Act, copies of the Registration Statement, any amendment or supplement thereto and any documents incorporated by reference
therein and such other documents as such Holder may reasonably require in order to facilitate the disposition of Registrable Securities owned by such Holder. 
 (iv) Register and qualify the securities covered by such Registration Statement under the securities or “blue sky” laws of all
domestic jurisdictions, to the extent required; provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or
jurisdictions. 
 (v) Notify each Holder immediately of the happening of any event (but not the substance or details of any
such events unless specifically requested by a Holder) as a result of which the prospectus (including any supplements thereto or thereof) included in such Registration Statement, as then in effect, includes an untrue statement of material fact or
omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, and use its reasonable best efforts to promptly update and/or correct such
prospectus. 
  

 9 

 (vi) Notify each Holder immediately of the issuance by the Commission or any state
securities commission or agency of any stop order suspending the effectiveness of the Registration Statement or the threat or initiation of any proceedings for that purpose. The Company shall use its reasonable best efforts to prevent the issuance
of any stop order and, if any stop order is issued, to obtain the lifting thereof at the earliest possible time. 
 (vii)
Permit counsel to the Holders to review the Registration Statement and all amendments and supplements thereto within a reasonable period of time (but not less than two (2) full days on which there is trading on the Principal Market or such
other market or exchange on which the Common Stock is then principally traded) prior to each filing and will not request acceleration of the Registration Statement without prior notice to such counsel. 
 (viii) List the Registrable Securities covered by such Registration Statement on the principal securities exchange and/or market on which
the Common Stock is then listed and prepare and file any required filings with such principal market or exchange. 
 (b) In the event the
Registration Statement has become effective and, afterwards, any Holder’s ability to sell Registrable Securities under the Registration Statement is suspended for more than (i) 45 days in any 90-day period or (ii) 90 days in any
calendar year, including without limitation by reason of any suspension or stop order with respect to the Registration Statement or the fact that an event has occurred as a result of which the prospectus (including any supplements thereto) included
in such Registration Statement then in effect includes an untrue statement of material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then
existing, then the Company shall take such action as may be necessary to amend or supplement such Registration Statement or prospectus such that such Registration Statement or prospectus, as so amended, shall not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the statements not misleading. 
 (c) If
the Holder(s) intend to distribute the Registrable Securities by means of an underwriting, the Holder(s) shall so advise the Company. Any such underwriting may only be administered by nationally or regionally recognized investment bankers reasonably
satisfactory to the Company. 
 (d) The Company shall enter into such customary agreements (including an underwriting agreement containing
such representations and warranties by the Company and such other terms and provisions, as are customarily contained in underwriting agreements for comparable offerings and are reasonably satisfactory to the Company) and take all such other actions
as the Holder or the underwriters participating in such offering and sale may reasonably request in order to expedite or facilitate such offering and sale other than such actions which are disruptive to the Company or require significant management
availability. 
 (e) The Company shall make available for inspection by the Holders, representative(s) of all the Holders together, any
underwriter participating in any disposition pursuant to a Registration Statement, and any attorney or accountant retained by any Holder or 
  

 10 

 underwriter, all financial and other records customary for purposes of the Holders’ due diligence examination of the
Company and review of any Registration Statement, all documents filed with the SEC subsequent to the Closing, pertinent corporate documents and properties of the Company, and cause the Company’s officers, directors and employees to supply all
information reasonably requested by any such representative, underwriter, attorney or accountant in connection with such Registration Statement, provided that such parties agree to keep such information confidential. Notwithstanding the foregoing,
the foregoing right shall not extend to any Holder (i) who is not a financial investor or entity or (ii) who, itself or through any affiliate, has any strategic business interest that would reasonably be expected to be in conflict with any
business of the Company or its Subsidiaries. 
 (f) The Company may suspend the use of any prospectus used in connection with the
Registration Statement only in the event, and for such period of time as, (i) such a suspension is required by the rules and regulations of the Commission or (ii) it is determined in good faith by the Board of Directors of the Company that
because of valid business reasons (not including the avoidance of the Company’s obligations hereunder), it is in the best interests of the Company to suspend such use, and prior to suspending such use in accordance with this clause
(ii) the Company provides the Holders with written notice of such suspension, which notice need not specify the nature of the event giving rise to such suspension. The Company will use reasonable best efforts to cause such suspension to
terminate at the earliest possible date. 
 (g) The Company shall prepare and file with the SEC such amendments (including post-effective
amendments) and supplements to a Registration Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep
such Registration Statement effective at all times during the Registration Period (as defined below), and, during such period, comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities of the
Company covered by such Registration Statement. In the case of amendments and supplements to a Registration Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section 3(g)) by reason of the Company
filing a report on Form 10-K, Form 10-Q or Form 8-K or any analogous report under the 1934 Act, the Company shall have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or
supplements with the SEC on the same day on which the 1934 Act report is filed which created the requirement for the Company to amend or supplement such Registration Statement. 
 (h) Each Holder agrees by its acquisition of the Registrable Securities that, upon receipt of a notice from the Company of the occurrence of any event of
the kind described in Sections 5.2(a)(v) or 5.2(a)(vi), and upon notice of any suspension under Section 5.2(f), such Holder will forthwith discontinue disposition of such Registrable Securities under the Registration Statement until such
Holder’s receipt of the copies of the supplemented Prospectus and/or amended Registration Statement contemplated by Section 5.2, or until it is advised in writing by the Company that the use of the applicable Prospectus may be resumed,
and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement. The Company may provide appropriate stop orders to
enforce the provisions of this paragraph. 
  

 11 

 (i) If requested by a Holder, the Company shall (i) as soon as practicable incorporate in a
prospectus supplement or post-effective amendment such information as a Holder reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the
number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii) as soon as practicable make all required filings
of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) as soon as practicable, supplement or make amendments to any
Registration Statement if reasonably requested by a Holder holding any Registrable Securities. 
 5.3 Expenses of Registration. All
Registration Expenses in connection with any registration, qualification or compliance with registration pursuant to this Agreement shall be borne by the Company, and all Selling Expenses of a Holder shall be borne by such Holder. 
 5.4 Registration on Form S-3. The Company shall use its reasonable best efforts to remain qualified for registration on Form S-3 or any comparable
or successor form or forms, or in the event that the Company is ineligible to use such form, such form as the Company is eligible to use under the Securities Act, provided that if such other form is used, the Company shall convert such other form to
a Form S-3 promptly after the Company becomes so eligible, provided that the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration Statement or Form S-3 covering the Registrable
Securities has been declared effective by the SEC. 
 5.5 Registration Period. In the case of the registration effected by the Company
pursuant to this Agreement, the Company shall keep such registration effective from the date on which the Registration Statement initially became effective until the earlier of (a) the date on which all the Holders have completed the sales or
distribution described in the Registration Statement relating thereto or, (b) until such Registrable Securities may be sold by the Holders under Rule 144(k) (provided that the Company’s transfer agent has accepted an instruction from the
Company to such effect) (the “Registration Period”). 
 5.6 Indemnification. 
 (a) Company Indemnity. The Company will indemnify and hold harmless each Holder, each of its officers, directors, agents and partners, and each
person controlling each of the foregoing, within the meaning of Section 15 of the Securities Act and the rules and regulations thereunder with respect to which registration, qualification or compliance has been effected pursuant to this
Agreement, and each underwriter, if any, and each person who controls, within the meaning of Section 15 of the Securities Act and the rules and regulations thereunder, any underwriter, against all claims, losses, damages and liabilities (or
actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any prospectus, offering circular or other document (including any related registration statement, notification
or the like) incident to any such registration, qualification or compliance, or based on any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading in
light of the circumstances under which they were made, or any violation by the Company of the Securities Act or any state securities law or in either case, any rule or regulation thereunder applicable to the Company and relating to action or

  

 12 

 inaction required of the Company in connection with any such registration, qualification or compliance, and will
reimburse each Holder, each of its officers, directors, agents and partners, and each person controlling each of the foregoing, each such underwriter and each person who controls any such underwriter, for any legal and any other expenses reasonably
incurred in connection with investigating and defending any such claim, loss, damage, liability or action, provided that the Company will not be liable in any such case to a Holder to the extent that any such claim, loss, damage, liability or
expense arises out of or is based (i) on any untrue statement or omission based upon written information furnished to the Company by a Holder or the underwriter (if any) therefore, (ii) the failure of a Holder to deliver at or prior to the
written confirmation of sale, the most recent prospectus, as amended or supplemented or (iii) the failure of a Holder otherwise to comply with this Agreement. The indemnity agreement contained in this Section 5.6(a) shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent will not be unreasonably withheld). 
 (b) Holder Indemnity. Each Holder will, severally and not jointly, if Registrable Securities held by it are included in the securities as to which
such registration, qualification or compliance is being effected, indemnify and hold harmless the Company, each of its directors, officers, agents and partners, and each underwriter, if any, of the Company’s securities covered by such a
registration statement, each person who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act and the rules and regulations thereunder, each other Holder (if any), and each of their officers, directors
and partners, and each person controlling such other Holder(s) against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact
contained in any such registration statement, prospectus, offering circular or other document, or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make a statement therein not
misleading in light of the circumstances under which they were made, and will reimburse the Company and such other Holder(s) and their directors, officers and partners, underwriters or control persons for any legal or any other expenses reasonably
incurred in connection with investigating and defending any such claim, loss, damage, liability or action, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission)
is made in such registration statement, prospectus, offering circular or other document in reliance upon and in conformity with written information furnished to the Company by such Holder and stated to be specifically for use therein, and provided
that the maximum amount for which such Holder shall be liable under this indemnity shall not exceed the net proceeds received by such Holder from the sale of the Registrable Securities pursuant to the registration statement in question. The
indemnity agreement contained in this Section 5.6(b) shall not apply to amounts paid in settlement of any such claims, losses, damages or liabilities if such settlement is effected without the consent of such Holder (which consent shall not be
unreasonably withheld). 
 (c) Procedure. Each party entitled to indemnification under this Section 5.6 (the “Indemnified
Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim in any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall
be approved by the Indemnified Party (whose approval shall not be unreasonably withheld), and the 
  

 13 

 Indemnified Party may participate in such defense at its own expense, and provided further that the failure of any
Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 5.6 except to the extent that the Indemnifying Party is materially and adversely affected by such failure to
provide notice. Notwithstanding the foregoing, Indemnified Party may retain its own counsel at the Indemnifying Party’s expense if the Indemnified Party reasonably determines that there would be inconsistent defenses or conflicts of interest if
the defense were assumed by the Indemnifying Party, provided that such counsel is not otherwise then currently adverse to the Company in any matter. No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the
consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all
liability in respect to such claim or litigation. Each Indemnified Party shall furnish such non-privileged information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably
required in connection with the defense of such claim and litigation resulting therefrom. 
 5.7 Contribution. If the indemnification
provided for in Section 5.6 herein is unavailable to the Indemnified Parties in respect of any losses, claims, damages or liabilities referred to herein (other than by reason of the exceptions provided therein), then each such Indemnifying
Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such losses, claims, damages or liabilities as between the Company on the one hand and any Holder on the
other, in such proportion as is appropriate to reflect the relative fault of the Company and of such Holder in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities, as well as any other relevant
equitable considerations. The relative fault of the Company on the one hand and of any Holder on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by the Company or by such Holder. 
 In no event shall the
obligation of any Indemnifying Party to contribute under this Section 5.7 exceed the amount that such Indemnifying Party would have been obligated to pay by way of indemnification if the indemnification provided for under Section 5.6(a) or
5.6(b) hereof had been available under the circumstances. 
 The Company and the Holders agree that it would not be just and equitable if
contribution pursuant to this Section 5.7 were determined by pro rata allocation (even if the Holders or the underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in the immediately preceding paragraphs. The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages and liabilities referred to in the immediately preceding paragraphs shall be
deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this
section, no Holder or underwriter shall be required to contribute any amount in excess of the amount by which (i) in the case of any Holder, the net proceeds received by such Holder from the sale of Registrable Securities pursuant to the
registration statement in question or (ii) in the case of an underwriter, the total price at which the Registrable Securities purchased by it and distributed to the public were offered to the public exceeds, in any such case, the amount of any
damages that such Holder or underwriter has otherwise been required 
  

 14 

 to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 
 5.8 Survival. The indemnity and contribution agreements contained in Sections 5.6 and 5.7 and the representations and warranties of the Company
referred to in Section 5.2(d) shall remain operative and in full force and effect regardless of (i) any termination of this Agreement or any underwriting agreement, (ii) any investigation made by or on behalf of any Indemnified Party
or by or on behalf of the Company, and (iii) the consummation of the sale or successive resales of the Registrable Securities. 
 5.9
Information by Holders. Each Holder shall promptly furnish to the Company such information regarding such Holder and the distribution and/or sale proposed by such Holder as the Company may from time to time reasonably request in writing in
connection with any registration, qualification or compliance referred to in this Agreement, and the Company may exclude from such registration the Registrable Securities of any Holder who unreasonably fails to furnish such information within a
reasonable time after receiving such request. The intended method or methods of disposition and/or sale of such securities as so provided by such purchaser shall be included without alteration in the Registration Statement covering the Registrable
Securities and shall not be changed without written consent of such Holder. Each Holder agrees that, other than ordinary course brokerage arrangements, in the event it enters into any arrangement with a broker dealer for the sale of any Registrable
Securities through a block trade, special offering, exchange distribution or secondary distribution or a purchase by a broker or dealer, such Holder shall promptly deliver to the Company in writing all applicable information required in order for
the Company to be able to timely file a supplement to the Prospectus pursuant to Rule 424(b), or take any other action, under the Securities Act, to the extent that such supplement or other action is legally required. Such information shall include
a description of (i) the name of such Holder and of the participating broker dealer(s), (ii) the number of Registrable Securities involved, (iii) the price at which such Registrable Securities were or are to be sold, and (iv) the
commissions paid or to be paid or discounts or concessions allowed or to be allowed to such broker dealer(s), where applicable. 
 6.
Stock Legend. 
 6.1 Investor shall not sell, transfer, assign, hypothecate or pledge in any way any September Warrant Shares or
Warrant Shares except for sales (A) in accordance with the terms of the Plan of Distribution section of the prospectus contained in the Registration Statement and in compliance with prospectus delivery requirements or (B) in compliance
with the requirements of Rule 144 under the Securities Act. 
 6.2 Upon payment therefore as provided in this Agreement, the Company will
issue the September Warrant Shares and the Warrant in the name of Investor. Any certificate representing the September Warrant Shares or Warrant Shares shall be stamped or otherwise imprinted with a legend in substantially the following form:

 NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES

  

 15 

 AND EXCHANGE COMMISSION IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR AFTER RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT. 
 Additionally, any certificate representing the Warrant Shares shall also be stamped
or otherwise imprinted with a legend in substantially the following form: 
 THESE SECURITIES REPRESENTED HEREBY ARE ALSO SUBJECT TO RIGHTS
AND OBLIGATIONS AS SET FORTH IN A SECURITIES PURCHASE AGREEMENT DATED AS OF JULY 14, 2006 BY AND AMONG STAR SCIENTIFIC, INC. AND CERTAIN OTHER PARTIES THERETO AS SUCH MAY BE AMENDED FROM TIME TO TIME. 
 The Company agrees to issue the September Warrant Shares or Warrant Shares, issued upon exercise of the Warrant, without the legend set forth above at
such time as the holder thereof is (i) permitted to dispose of such September Warrant Shares or Warrant Shares pursuant to Rule 144(k) under the Securities Act or (ii) such securities have been registered under the 1933 Act, subject to the
undertaking in Section 4.15 above by the Investor; provided that in the case of clause (i) or (ii) the Company also agrees, upon request of Investor to reissue certificates for Warrant Shares evidenced by certificates issued
previously with a legend, if at all, without the legend set forth above. 
 The Warrant shall be imprinted with the legends set forth on
Exhibit A. 
 7. Survival of Representations, Warranties and Agreements. Notwithstanding any investigation made by any party to this
Agreement, all covenants, agreements, representations and warranties made by the Company and Investor herein shall survive the execution of this Agreement, the delivery to Investor of the September Warrant Shares and the Warrant being purchased and
the payment therefor. 
 8. Notices. All notices, requests, consents and other communications hereunder shall be in writing, shall be
mailed (A) if within domestic United States by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or by facsimile, or (B) if delivered from outside the United States, by
International Federal Express or facsimile, and shall be deemed given (i) if delivered by first-class registered or certified mail domestic, three business days after so mailed, (ii) if delivered by nationally recognized overnight carrier,
one business day after so mailed, (iii) if delivered by International Federal Express, two business days after so mailed, and (iv) if delivered by facsimile, upon electric confirmation of receipt and shall be delivered as addressed as
follows: 
  

	 	(a)	if to the Company, to: 

 Star Scientific,
Inc. 
 Suite 850 
 7475 Wisconsin Ave. 
  

 16 

 Bethesda, MD 20814 
 Attn: Paul L. Perito 
 President and Chief Operating Officer 
 Phone: (301) 654-8300 
 Telecopy: (301) 654-9308 
 with copies to: 
 Star Scientific, Inc. 
 Suite 850 
 7475 Wisconsin Ave. 
 Bethesda, MD 20814 
 Attn: Robert E. Pokusa 
 General Counsel 
 Phone: (301) 654-8300 
 Telecopy: (301) 654-9308 
 and 
 Latham & Watkins LLP 
 Suite 1000. 
 555 Eleventh Street, N.W. 
 Washington, DC 20004 
 Attn: William P. O’Neill 
 Phone: (202) 637-2200 
 Telecopy: (202) 637-2201 
 (b) if to Investor, at its address on the signature page hereto, or at such other address or addresses as may have been furnished to the Company in
writing. 
 9. Changes. This Agreement may not be modified or amended except pursuant to an instrument in writing signed by the
Company and Investor. 
 10. Headings. The headings of the various sections of this Agreement have been inserted for convenience of
reference only and shall not be deemed to be part of this Agreement. 
 11. Severability. In case any provision contained in this
Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. 
 12. Governing Law. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of New York, without
giving effect to the principles of conflicts of law. 
 13. Entire Agreement. This Agreement constitutes the entire agreement between
the parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements relating to such subject matter are expressly cancelled. 
  

 17 

 14. Finders Fees. Neither the Company nor Investor nor any affiliate thereof has incurred any
obligation which will result in the obligation of the other party to pay any finder’s fee or commission in connection with this transaction. 
 15. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one instrument, and shall become effective when one
or more counterparts have been signed by each party hereto and delivered to the other parties. 
 16. Successors and Assigns. This
Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and Investor. Investor shall not assign any rights or obligations under this Agreement other than, solely with respect to any September
Warrant Shares or Warrant Shares transferred in accordance with this Agreement, including the legends described herein, to any permitted transferee of such September Warrant Shares or Warrant, provided, however, that no such assignment
shall relieve Investor of its obligations under this Agreement. 
 17. Expenses. Each of the Company and Investor shall bear its own
expenses in connection with the preparation and negotiation of the Agreement. 
 [Signature pages follow.] 
  

 18 

 IN WITNESS WHEREOF, the parties hereto have cause this Agreement to be duly executed as of the date
first above written. 
  

			
	STAR SCIENTIFIC, INC.
		
	By:	 	 /s/ Paul L. Perito

		 	Paul L. Perito
		 	Chairman, President & C.O.O.

  

			
	IROQUOIS CAPITAL

		
	By:	 	 /s/ Joshua Silverman

			
	Print Name:	 	  

			
	Title:	 	  

			
	Address:	 	641 Lexington Avenue, 26th Floor
		 	New York, NY 10022

			
	Contact name:	 	Joshua Silverman

			
	Telephone:	 	  

			
	Aggregate Purchase Price:	 	$2,000,000

 Exhibit A 
 [Attach Warrant]

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