Document:

Exhibit 10.1

 

	 	EMPLOYEE AGREEMENT	13 May 2016

 

 

THIS AGREEMENT ("Agreement") is made and entered into
effective the 13th day of May, 2016, (the “Start Date”), by and between BIOANALYTICAL SYSTEMS, INC. a corporation organized
under the laws of the State of Indiana (“BASi” or the “Company”), and Jill C. Blumhoff, an individual residing
in the State of Indiana ("Employee").

 

 

Preliminary Statements:

 

A. BASi is engaged in the business of providing
contract research services and manufacturing and distributing scientific instruments (the “Business”).

 

B. Employee is experienced in the Business,
and is familiar with the management and operations of the Company.

 

C. The Company wishes to employ Employee
on the terms and conditions contained herein and Employee views entry into this employment as a mutually beneficial long-term investment
by both the Company and by the Employee as a major career commitment.

 

In consideration of
the premises and mutual covenants and agreements contained herein, the parties hereby agree as follows:

 

ARTICLE 1

 

Term, Compensation, and Benefits

 

Section 1.1. Term The
Company hereby agrees to employ the Employee, and the Employee hereby accepts employment with the Company, on the terms and conditions
set forth in this Agreement until April 30, 2018 (the “Initial Term”). The Initial Term shall be extended for
successive one year periods (the "Additional Terms," and together with the Initial Term, the "Employment Period"),
except that if either Employee or the Company gives the other party written notice at least ninety days (90) before the end of
the Initial Term or any Additional Term, as the case may be, then this Agreement shall expire at the end of its then current term.

 

Section 1.2 Compensation
and Benefits

 

Section 1.2.1 Salary:
BASi will pay the Employee a base salary at a rate of not less than $12,500 per month from the Start Date until adjusted by the
Compensation Committee of the Board of Directors of the Company (the “Board”). Salary shall be paid in equal bi-weekly
installments in arrears. All amounts to be paid hereunder shall be paid in accordance with normal payroll procedures of the Company
and shall be subject to all required withholdings and deductions.

 

Section 1.2.2. Stock
Options: On the Start Date, the Employee shall receive a grant of options to purchase 10,000 BASi shares under the Company's
2008 Director and Employee Stock Option Plan (the “Option Plan”), on the terms and conditions of an option agreement
to be entered into by the Employee and the Company. The Employee will be eligible to receive additional option grants and other
equity awards from time to time during the Employment Period as determined by the Board or any committee thereof. The exact number,
strike price, vesting schedule and other terms of any such options or equity awards will be set forth in appropriate agreements
between the Company and Employee as required by the Option Plan or any additional or successor plan hereafter adopted by the Company.

 

Section 1.2.3. 
As Chief Financial Officer and Vice President of Finance, the Employee will be eligible to participate in the Annual Incentive
Bonus Compensation Program. The Employee will also be eligible for bonus grants under any other bonus plans adopted by the Company
at the discretion of the Compensation Committee of the Board.

 

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	 	EMPLOYEE AGREEMENT	13 May 2016

 

 

Section 1.2.4 Vacation
Policy: Employee will be subject to the Company's vacation policy as outlined in the Company's Employee Handbook,
provided however, the Employee shall take absences at such time as shall be approved by the Company's Chief Executive Officer.

 

Section 1.2.6 Other
Benefits: During the Employment Period, the Employee shall be entitled to participate in all employee benefit plans which are
generally made available to employees of the Company, subject to the eligibility, qualification, waiting period and other terms
and conditions of such plans as they shall be in effect from time to time unless listed herein as exceptions from those terms and
conditions.

 

ARTICLE 2

 

Duties

 

Section 2.1. Duties. During
the Employment Period the Employee will serve as Chief Financial Officer and Vice President of Finance of the Company. In her role
as Chief Financial Officer and Vice President of Finance the Employee will be the ranking financial officer of the Company. The
Employee will lead the financial services and Information Technology staff and, subject to supervision by the Chief Executive Officer
and the Board, be the ultimate financial contact with clients, auditors and banks and own responsibility for assisting the Senior
Management Team on all strategic and tactical matters as related to budget management, cost benefit analysis, forecasting needs,
securing appropriate funding, and positioning the Company for growth. In addition, the Employee is responsible for strengthening
existing collaborations, building new partnerships, and executing programs and initiatives to support BASi's mission statement.

 

Section 2.2.
Other Duties. The Employee shall serve the Company by performing such other services as the Company may reasonably require
to conduct the Company’s business. The Company shall also have the absolute right and power to direct and control the Employee
in carrying out duties assigned by the Company, including, but not limited to, the right (1) to review, modify and cancel all work
performed, and (2) to assign specific duties to be performed, including the general means and manner by which such duties shall
be performed. Notwithstanding any other provisions of this Agreement, the Company shall not impose employment duties or constraints
of any kind upon the Employee which would require the Employee to violate any ordinance, regulation, statute or other law. The
Employee shall devote her full working time, attention and energy to the performance of the duties imposed hereunder. The Employee
shall conform to such hours of work as may from time to time reasonably be required of her and shall not be entitled to receive
any additional remuneration for work outside her normal hours. The Employee will not be held financially, legally, or
otherwise liable for any practice or action or decision made by BASi, or its predecessors or successors prior to the Start Date.

 

Section 2.3 Officer
Indemnification. Employee shall be entitled to indemnification as provided for the Company's directors and officers in its
articles of incorporation and bylaws, as amended from time to time.

  

Confidentiality and Other Matters

 

Section 3.1. Confidentiality
Agreement. The Employee, prior to and during the term of employment under this Agreement, has had and will have access to and
has become or will become familiar with information, whether or not originated by the Employee, which is used in or related to
the Business or the business of BASi or certain subsidiaries or affiliates of BASi and is (a) proprietary to, about, or created
by the Company its subsidiaries or its affiliates; (b) designated as confidential by the Company, its subsidiaries or its affiliates;
or (c) not generally known to or ascertainable by proper means by the public ("Confidential Information").

 

Further, the Employee
has had and will have access to items proprietary to the Company, its subsidiaries or its affiliates ("Proprietary Items").
"Proprietary Items" shall mean all legally-recognized rights which result from or are derived from the Employee's work
product or the work product of others made for the Company, its subsidiaries or its affiliates, including all past, present and
future work product made for the Company, its subsidiaries or its affiliates, or with knowledge, use or incorporation of Confidential
Information, including, but not limited to works of authorship, developments, inventions, innovations, designs, discoveries, improvements,
trade secrets, trademarks, applications, techniques, know-how and ideas, whether or not patentable or copyrightable, conceived
or made or developed by the Employee (solely or in cooperation with others) or others during the term of this Agreement or prior
to or during her tenure with the Company, or which are reasonably related to the Business or the business of BASi or certain subsidiaries
or affiliates of BASi or the actual or demonstrably anticipated research and development of the Company.

 

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	 	EMPLOYEE AGREEMENT	13 May 2016

 

 

The Employee agrees
that any Confidential Information and Proprietary Items will be treated in full confidence and shall not be used, directly or indirectly,
by her nor shall the same be disclosed to any other firms, organizations, or persons outside of the Company's employees bound by
similar agreement, during the term of this Agreement or at any time thereafter, except as required in the course of her employment
with the Company. All Confidential Information and Proprietary Items, whether prepared by the Employee or otherwise, coming into
her possession, shall remain the exclusive property of the Company and shall not be permanently removed from the premises of the
Company under any circumstances whatsoever, without the prior written consent of the Company.

 

The Employee will not be obliged to keep
information confidential to the extent that the information has ceased to be confidential and has entered the public domain otherwise
than due to the Employee's acts. In addition, as provided by federal law (18 U.S.C. §1833), Employee shall not be held criminally
or civilly liable under any Federal or State trade secret law for her disclosure of a trade secret that is made by her: (a) in
confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney, and solely for
the purpose of reporting or investigating a suspected violation of law or (b) in a complaint or other document filed by her in
a lawsuit or other proceeding, on the condition that such filing is made under seal. The provisions of this Section 3.1 shall be
in addition to, and shall not affect, the Employee's common law duty of fidelity to the Company.

 

Section 3.2.
Disclosure and Assignment of Inventions. The parties foresee that the Employee may make inventions or create other intellectual
property in the course of her duties hereunder and agree that in this respect the Employee has a special responsibility to further
the interests of the Company and its affiliates. The Employee acknowledges and agrees that all such inventions and other intellectual
property is and shall remain the exclusive property of the Company, whether or not prepared in whole or in part by the Employee
and the Employee agrees to disclose to the Company all such items. Upon the termination of the Employee's employment with Company
(regardless of the reason), or at any other time at the request of the Company, the Employee shall immediately deliver to the Company
all such inventions and intellectual property, in the possession of the Employee. 

 

Section 3.3.
Non-Solicitation. The Employee agrees that during the Employee’s employment with the Company and for an additional
period of the two (2) years immediately following termination of the Employee’s employment with the Company, the Employee
shall not directly or indirectly, as an individual or as a director, officer, contractor, employee, consultant, partner, investor
or in any other capacity with any corporation, partnership or other person or entity, other than the Company (an “Other Entity”),
(i) contact or communicate with any then current material customer or client of the Company in the Business, or any person or entity
with which the Company is then engaged in material discussions regarding that person or entity becoming a client or customer of
the Company in the Business, for the purpose of inducing any such customer or client to move its account from the Company to another
company in the Business; provided, however, that nothing in this sentence shall prevent the Employee from becoming employed by
or providing consulting services to any such customer or client of the Company in the Business, or (ii) solicit any other employee
of the Company for employment or a consulting or other services arrangement with an Other Entity.

 

The restrictions of
this Section 3.3 shall not be deemed to prevent the Employee from owning not more than 5% of the issued and outstanding
shares of any class of securities of an issuer whose securities are listed on a national securities exchange or registered pursuant
to Section 12(g) of the Securities Exchange Act of 1934, as amended. In the event a court of competent jurisdiction determines
that the foregoing restriction is unreasonable in terms of geographic scope or otherwise then the court is hereby authorized to
reduce the scope of said restriction and enforce this Section 3.3 as so reduced. If any sentence, word or provision
of this Section 3.3 shall be determined to be unenforceable, the same shall be severed herefrom and the remainder
shall be enforced as if the unenforceable sentence, word or provision did not exist. Notwithstanding any provision of this Agreement
to the contrary, the terms and conditions of this Section 3.3 shall survive for a period of two (2) years following
termination of the Employee’s employment with the Company, at which time the terms and conditions of this Section
3.3 shall terminate.

 

Section 3.4.
Code of Conduct. The Employee agrees to abide by all the conditions of the Company Code of Conduct and Ethics.

 

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	 	EMPLOYEE AGREEMENT	13 May 2016

 

 

ARTICLE 4

 

Termination of Employment

 

Section 4.1. Resignation
by the Employee. The Employee may resign from her employment with the Company at any time providing written notice to the Company
of resignation at least ninety days (90) prior to the effective date of the resignation (the “Resignation Date”). Employee
may resign at any time for “ good reason” due to (a) a material breach of this Agreement by the Company and the Company
has not rectified such breach within thirty (30 days after the Employee has given the Company written notice of such breach, or
(b) the assignment to the Employee of duties materially inconsistent with this Agreement other than in accordance with the terms
of this Agreement, and the Company has not rectified such assignment within thirty days (30) after the Employee has given the Company
written notice of such assignment.

 

A termination by the
Employee for “good reason” shall entitle the Employee to the same compensation and benefits as if the Employee had
been terminated by the Company without cause. Upon any resignation by the Employee, the Employee shall use reasonable best efforts
to assist the Company in good faith to effect a smooth transition. If the Employee voluntarily resigns her position without “good
reason” prior to the termination of this contract, the compensation terms of this agreement are null and void. Notwithstanding
the foregoing, following a termination for “Good Reason” after a “Change in Control”, each as defined in
that certain Key Employee Agreement, dated November 9, 2015, by and between the Employee and the Company (the “Key Employee
Agreement”), the terms and conditions of the Key Employee Agreement shall apply and no compensation shall be due hereunder.

 

Section 4.2. Termination
by the Company without Cause. At any time, the Company may, in its sole and absolute discretion, terminate the Employee's employment
with the Company (the actual date of termination being referred to as the "Termination Date") without cause, by providing
written notice thereof to the Employee ("Termination Notice") at least ten days (10) prior to the Termination Date. In
the event of termination of the Employee's employment pursuant to this Section, the Company shall continue to pay to the Employee
the Employee’s then current annual salary, in no cases less than $12,500 per month, throughout such ten-day (10) notice period
and shall pay the Employee as compensation for loss of office (a) six (6) months base salary at the Employee’s then current
salary in equal bi-weekly installments over the six (6) month period following the Termination Date (provided however, that if
payments under the Employee's Key Employee Agreement are triggered based on such termination, no such payments will be due hereunder)
, (b) a pro-rated portion of the annual bonus the Employee was eligible for, if any, for the completed portion of any fiscal year
in which the Termination Date occurs (payable whether or not compensation is due under the Key Employee Agreement for such termination,
and based on the relevant portion of the bonus that would have been earned, if any, had the Employee remained employed through
the fiscal year and payable at the time payable were the Employee to have remained employed) and (c) all vacation accrued as of
the Termination Date calculated in accordance with Section 1.2.4. Upon receipt by the Employee of a Termination
Notice pursuant to this Section 4.2, (a) the Employee shall assist the Company in good faith to effect a smooth transition,
and (b) the Company may request the Employee to vacate the premises owned by the Company and used in connection with the Business
within a reasonable time, provided that the obligation of the Company to make payments to the Employee pursuant to this Section
4.2 and the other provisions of this Agreement shall not be affected. Amounts payable pursuant to clauses (a) and (b)
of this Section 4.2 shall be payable only following the delivery to the Company by the Employee of a duly executed release,
in form and substance acceptable to the Company, of all claims the Employee may have against the Company, which release is no longer
subject to revocation.

 

Section 4.3. Termination
by the Company With Cause. This Agreement shall be deemed to be terminated with cause and the employment relationship between
the Employee and the Company shall be deemed severed upon written notice to the Employee by the Company after the occurrence of
any of the following:

 

		a)	a conviction (or entry of a plea of nolo contendre thereof) for a felony or conviction (or entry
of a plea of nolo contendre thereof) for any crime or offense lesser than a felony involving misappropriation of the property of
the Company, an Affiliated Employer (as defined in the Key Employee Agreement) or a related entity, whether such conviction or
plea occurs before or after termination of employment with the Employer (as defined in the Key Employee Agreement).

 

 

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	 	EMPLOYEE AGREEMENT	13 May 2016

 

 

		b)	engaging in conduct that has caused demonstrable and material injury to the Company or an Affiliated
Employer (as defined in the Key Employee Agreement) or a related entity, monetary or otherwise.

		c)	failure to follow the reasonable instructions of the Board, the Chief Executive Officer, or the
Employee's immediate supervisor relating to the Employee's employment or the performance of the Employee's duties and responsibilities.

		d)	dereliction or other misconduct in the performance of the Employee's duties for the Company or
an Affiliated Employer (as defined in the Key Employee Agreement) and the failure to cure such situation within thirty (30) days
after receiving written notice thereof from the Board or the Chief Executive Officer.

		e)	the intentional disclosure or use of Confidential Information (as defined in the Key Employee Agreement)
to a party unrelated to the Company or an Affiliated Employer (as defined in the Key Employee Agreement) other than as determined
in good faith by the Employee to be not contrary to the interests of the Company or believed by the Employee to be required by
law.

 

This Agreement and the Employee's employment with the Company
shall terminate upon the death or Disability of the Employee. For purposes of this Agreement, "Disability" means a disability
as determined for purposes of the current group disability insurance policy of the Company or an Affiliated Employer in effect
for the Employee which qualifies the Employee for long-term disability insurance payments in accordance with such policy, or if
there is no such policy, then means that a current sickness or injury causes physical or mental impairment to such
a degree that you are: (1) not able to perform, on a full-time basis, the major duties of your own occupation and (2) not
able to perform, on a full-time basis, the major duties of any gainful work. .

 

If the Employee's employment is terminated
by the Company for cause pursuant to this Section 4.3 or is terminated due to death or Disability, the Company shall pay
to the Employee any unpaid base salary for the period ending on the termination date, plus the amount of any accrued vacation as
of the Termination Date.

 

Section 4.4. Continuation
of Health Insurance Benefits. If the Employee is terminated by the Company without cause, or terminated her employment with
the Company for “good reason”, and provided that the Employee elects continuation of health coverage pursuant to Section
601 through 608 of the Employee Retirement Income Security Act of 1974, as amended (“COBRA”), the Company shall reimburse
the Employee an amount equal to her monthly COBRA premiums for a period of six (6) months after termination; provided further,
such payments will cease upon the Employee’s becoming entitled to other health insurance.

 

ARTICLE 5

 

Miscellaneous

 

Section 5.1. Relationship
between the Parties. The relationship between the Company and the Employee shall be that of an employer and an employee, and
nothing contained herein shall be construed or deemed to give the Employee any interest in any of the assets of the Company.

 

Section 5.2. Notices.
Any notice required or permitted to be given under this Agreement shall be in writing and delivered personally or sent by certified
mail, addressed to the party entitled to receive said notice, at the following addresses:

 

	If to Company:	Bioanalytical Systems Inc.
	 	2701 Kent Avenue
	 	West Lafayette, IN 47906

 

 

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	 	EMPLOYEE AGREEMENT	13 May 2016

 

 

	If to Employee:	Jill C. Blumhoff
	 	2701 Kent Avenue
	 	West Lafayette, IN 47906

  

or at such other address as may be specified
from time to time in notices given in accordance with the provisions of this Section 5.2.

 

Section
5.3 Enforceability. Both the Company and the Employee stipulate and agree that if any portion, paragraph sentence, term
or provision of this Agreement shall to any extent be declared illegal, invalid or unenforceable by a duly authorized court of
competent jurisdiction, then, (a) the remainder of this Agreement or the application of such portion, paragraph, sentence, term
or provision in circumstances other than those as to which it is so declared illegal, invalid or unenforceable, shall not be affected
thereby, (b) this Agreement shall be construed in all respects as if the illegal, invalid or unenforceable matter had been omitted
and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law and (c)
the illegal, invalid or unenforceable portion, paragraph, sentence, term or provision shall be replaced by a legal, valid and enforceable
provision which most closely reflects the intention of the parties hereto as reflected herein.

 

Section 5.4. Nonwaiver.
The failure of either party hereto to insist in any one or more instances upon performance of any of the provisions of this Agreement
or to pursue its or his rights hereunder shall not be construed as a waiver of any such provisions or as the relinquishment of
any such rights.

 

Section 5.5. Succession.
This Agreement shall inure to the benefit of and be binding upon the parties hereto and upon their heirs, personal representatives,
and successor entities. This Agreement may not be assigned by either party without prior written agreement of both parties.

 

Section 5.6. Governing Law.
The laws of the United States and the State of Indiana shall govern the construction and enforceability of this Agreement.

 

Section 5.7. Entire
Agreement. This Agreement and the Key Employee Agreement constitute the entire agreement between the parties as to the subject
matter contained herein and all other agreements or understandings are hereby superseded and terminated.

 

Section 5.8. Collective
Agreements. There are no collective agreements which directly affect the terms and conditions of the Employee's employment.

 

Section 5.9. Grievance
and Disciplinary Procedures. If the Employee wishes to obtain redress of any grievance relating to her employment or if she
is dissatisfied with any reprimand, suspension or other disciplinary steps taken by the Company, she shall apply in writing to
the Chief Executive Officer of the Company, setting out the nature and details of any such grievance or dissatisfaction.

 

Section 5.10. Heading.
The headings of the sections are inserted for convenience only and do not affect the interpretation or construction of the sections.

 

Section 5.11. Remedies.
Employee acknowledges that a remedy at law for any breach or threatened breach of the provisions of Sections 3.1 through
3.3 of this Agreement would be inadequate and therefore agrees that the Company shall be entitled to injunctive relief,
both preliminary and permanent, in addition to any other available rights and remedies in case of any such breach or threatened
breach; provided, however, that nothing contained herein shall be construed as prohibiting the Company from pursuing any other
remedies available for any such breach or threatened breach. Employee further acknowledges and agrees that in the event of a breach
by Employee of any provision of Sections 3.1 through 3.3 of this Agreement, the Company shall be entitled, in addition
to all other remedies to which the Company may be entitled under this Agreement to recover from Employee its reasonable costs including
attorney's fees if the Company is the prevailing party in an action by the Company. This Agreement is entered into by the Company
for itself and in trust for each of its affiliates with the intention that each company will be entitled to enforce the terms of
this Agreement directly against Employee.

 

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	 	EMPLOYEE AGREEMENT	13 May 2016

 

 

IN WITNESS WHEREOF, the Company and the Employee have executed,
or caused to be executed, this Agreement as of the day and year first written above.

 

 

	“COMPANY”	 	EMPLOYEE
	 	 	 
	 	 	 
	/s/ Jacqueline M. Lemke	 	/s/ Jill C. Blumhoff
	Jacqueline M. Lemke	 	Jill C. Blumhoff
	President and CEO, Bioanalytical Systems, Inc.	 	

 

 

    	Confidential
	Page 7Exhibit 10.1

 

UNSECURED PROMISSORY NOTE

 

	$1,600,000	Dated as of May 10, 2016

 

This Unsecured Promissory Note (this “Note”)
is dated as of May 10, 2016, by and between Vaccinogen, Inc., a Maryland corporation (“Vaccinogen”) and
KLP Enterprises, LLC, a limited liability company formed under the laws of Delaware (the “Lender”).

 

Agreement

 

FOR VALUE RECEIVED,
the undersigned, (“Vaccinogen”), hereby promises to pay to the order of the Lender, the principal sum
of One Million, Six Hundred Thousand Dollars ($1,600,000) (the “Principal Amount”) in lawful money of the United
States of America, and together with interest thereon at the rate hereinafter specified and any and all other sums which may be
due and owing hereunder to the Lender, which shall be paid at the address of the Lender below, in accordance with the terms contained
herein.

 

1.          Interest.
Vaccinogen shall pay interest from the date of this Unsecured Promissory Note (this “Note”) on the Principal
Amount outstanding from time to time at a rate per annum equal to nine percent (9%). The interest shall be due and payable on the
Maturity Date (hereinafter defined).

 

2.          Calculation
of Interest. Interest on the Principal Amount of this Note shall be calculated on the basis of a 360 day per year factor applied
to the actual days on which there exists an unpaid principal balance due under this Note.

 

3.          Maturity.
The entire Principal Amount and all accrued interest shall become fully due and payable on June 30, 2016 (the “Maturity
Date”); provided that, at any time before the Maturity Date, the Lender may elect to convert part or all of the
outstanding principal and any interest due and payable under the Promissory Note at such time into shares of Vaccinogen’s
common stock, par value $0.0001 per share (the “Common Stock”), at a rate of $2.00 per share by providing written
notice to Vaccinogen of such election (the “Conversion Right”). Upon receipt of such written notice, Vaccinogen
shall issue the corresponding whole number of shares to the Lender within a commercially reasonable period of time. For the avoidance
of doubt, an issuance of the Common Stock pursuant to this paragraph shall not constitute a default under this Note.

 

4.          Prepayment.
Vaccinogen may prepay this Note, together with all then accrued interest, in whole or in part at any time, or from time to time,
without penalty or additional interest; provided that Vaccinogen must provide five days’ notice (the “Five
Day Notice”) of such prepayment to the Lender and Lender shall have the right (but not the obligation) to exercise the
Lender’s Conversion Right prior to the expiration of such five day period. If Lender does not exercise such Conversion Right
prior to the expiration of such five day period, Vaccinogen shall prepay this Note in the manner and to the extent provided in
such Five Day Notice within three business days following the expiration of the period provided for in the Five Day Notice. Any
amounts prepaid hereunder shall be applied as provided in Section 5 below.

 

     

     

    

 

5.          Payments.
Except as otherwise stated in Paragraph 3 hereof, all payments made hereunder shall be in lawful money of the United States of
America. All payments and prepayments shall be applied first to costs of collection, next, to accrued interest, and thereafter
to principal.

 

6.          Default
and Remedies. The following shall be a default under this Note and shall entitle the Lender to all of the rights and remedies
specified herein or otherwise available under applicable law or in equity: (i) any failure to make any payment due under this Note
when due or upon the failure to comply with any other terms and provisions of this Note, if such failures remain uncured for a
period of ten (10) business days; (ii) a petition for relief in a bankruptcy court is filed by Vaccinogen or Vaccinogen applies
for, consents to or acquiesces in the appointment of a trustee, custodian or receiver for Vaccinogen or any of its assets or property
or make a general assignment for the benefit of its creditors or, in the absence of such application, consent or acquiescence,
a trustee, custodian or receiver is appointed for Vaccinogen or for a substantial part of its assets or property and is not discharged
within thirty (30) days thereafter; (iii) any bankruptcy, reorganization, debt arrangement or other proceeding or case under any
bankruptcy or insolvency law or any dissolution or liquidation proceeding is instituted against Vaccinogen and if instituted against
Vaccinogen is consented to or acquiesced in by Vaccinogen or remains undismissed for sixty (60) days thereafter; or (iv) Vaccinogen
takes any action to authorize any of the actions described in subsection (ii) or (iii). Vaccinogen hereby waives presentment, demand
for payment, notice of dishonor, notice of protest, and protest, and all other notices or demands in connection with the delivery,
acceptance and performance of this Note.

 

7.          Governing
Law. This Note and all actions arising out of or in connection with this Note shall be governed by and construed in accordance
with the laws of the State of Maryland.

 

8.          No
Waiver. The delay or failure of the Lender to exercise its rights hereunder shall not be deemed a waiver thereof. No waiver
of any rights of the Lender shall be effective unless in writing and signed by the Lender and any waiver of any right shall not
apply to any other right or to such right in any subsequent event or circumstance not specifically included in such waiver.

 

9.          Successors
and Assigns. This Note shall not be assignable by the Lender without the prior written consent of Vaccinogen. This Note shall
be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. For the avoidance
of doubt, the right to receive the Common Stock described in Paragraph 3 above shall not be assignable by the Lender without the
prior written consent of Vaccinogen.

 

    	 	2	 

     

    

 

10.         No
Senior Debt. Vaccinogen does not currently have any indebtedness for borrowed money or any obligations evidenced by notes or
debentures or similar instruments (collectively, “Debt”), except (i) indebtedness
owed to Organon Teknika Corporation (now Merck) in the amount of $3,000,000 (plus accrued interest calculated from October
31, 2007 based on a simple annual interest rate based on the prime lending rate in effect on the anniversary of October 31, 2007)
pursuant to that certain Letter Agreement, dated October 31, 2007, among Intracel Holdings Corporation, Intracel Acquisition Holdings
Company LLC, Organon Biosciences International B.V., and Organon Teknika Corp (the “Merck Debt”) and (ii) indebtedness
owed to Dolphin Offshore Partners, LP (“Dolphin”) in the amount of $1,600,000 (plus accrued thereon from March
31, 2016) pursuant to that certain Unsecured Promissory Note, effective as of March 31, 2016, issued by Vaccinogen in Favor of
Dolphin (the “Dolphin Debt”). The Merck Debt is due one (1) year after the first marketing approval of OncoVax
by the United States Food and Drug Administration or the European Medicines Agency, whichever is first, in annual payments of $1,000,000
(plus accrued interest) until collection of the entire outstanding amount (subject to certain acceleration provisions). The Dolphin
Debt matures on June 30, 2016. From the date hereof and until the date that this Note is paid in full, Vaccinogen shall not incur,
create or assume any additional Debt, except: (a) Debt existing or arising under this Note and any refinancing thereof; and (b)
Debt that is subordinate to the prior payment in full of the obligations evidenced by this
Note.

 

11.         Separate
Counsel. Each of the parties hereto acknowledges that (i) he/she/it has read this Note in its entirety and understands all
of its terms and conditions, (ii) he/she/it has had the opportunity to consult with any individuals of their choice regarding their
agreement to the provisions contained herein, including legal counsel of their choice, and any decision not to was theirs alone,
and (iii) he/she/it is entering into this Note of their own free will, without coercion from any source. Each of Lender and Vaccinogen
acknowledges and agrees that Venable LLP is representing Vaccinogen in connection with this Note, and does not represent Lender.

 

12.         Subscription
Agreement. The Lender acknowledges and agrees that Vaccinogen’s obligation to issue the Common Stock pursuant to Paragraph
3 above is conditioned upon Vaccinogen and the Lender entering into a mutually agreed subscription agreement prior to such issuance,
which agreement will be substantially in the form set forth in Annex A hereto.

 

13.         Notices.
Any notices or other communication required hereunder shall be deemed properly given if delivered in person or if mailed by registered
or certified mail, postage prepaid, return receipt requested to the parties at the following addresses:

 

if to Vaccinogen,
to:

 

Vaccinogen, Inc.

949 Fell Street

2nd Floor

Baltimore, MD 21231

Attn: President

 

with a copy to:

 

Venable LLP

750 E. Pratt Street

Baltimore, Maryland 21202

Attn: Eric R. Smith, Esq.

 

    	 	3	 

     

    

 

if to the Lender:

 

KLP Enterprises, LLC

35 Windsor Road

North Haven, CT 06473

Attn: Andrew Wingate

 

[Signatures
on following page]

 

    	 	4	 

     

    

 

IN WITNESS WHEREOF, Vaccinogen has
caused this Note to be executed on its behalf by its duly authorized officer as of May 10, 2016.

 

	VACCINOGEN, INC.	 
	 	 
	By:	 	 
	Name: Andrew L. Tussing	 
	Title: Chairman and Chief Executive Officer	 
	 	 
	AGREED TO AND ACKNOWLEDGED	 
	 	 
	KLP Enterprises, LLC	 
	 	 
	By:	 	 
	Name:  Andrew Wingate	 
	Title:  Manager	 

 

    	 	5	 

     

    

 

ANNEX A

 

Subscription Agreement

 

THE SECURITIES HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OR ANY OTHER JURISDICTION. THERE ARE FURTHER
RESTRICTIONS ON THE TRANSFERABILITY OF THE SECURITIES DESCRIBED HEREIN.

 

THE PURCHASE OF THE
SECURITIES INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN BEAR THE RISK OF THE LOSS OF THEIR ENTIRE
INVESTMENT.

 

Ladies and Gentlemen:

 

The undersigned understands
that VACCINOGEN, INC., a corporation organized under the laws of Maryland (the “Company”), is offering shares
of its common stock, par value $0.0001 per share in a private placement. The undersigned further understands that the offering
is being made without registration of the Securities under the Securities Act of 1933, as amended (the “Securities Act”),
or any securities law of any state of the United States or of any other jurisdiction, and is being made only to “Accredited
Investors” (as defined in Rule 501 of Regulation D under the Securities Act).

 

1.          Subscription.
Subject to the terms and conditions of this Subscription Agreement (this “Subscription Agreement”), on the date of
the Closing referred to in Section 3 hereof, the undersigned shall purchase from the Company and the Company shall sell
to the undersigned [ ] shares of common stock, par value $0.0001 per share (the “Securities”), for the aggregate purchase
price of [$ ], at [$ ] per share.

 

2.          Acceptance
of Subscription and Issuance of Securities. Notwithstanding anything in this Subscription Agreement to the contrary, the Company
shall have no obligation to issue any of the Securities to any person who is a resident of a jurisdiction in which the issuance
of the Securities to such person would constitute a violation of the securities, “blue sky” or other similar laws
of such jurisdiction (collectively referred to as the “State Securities Laws”).

 

3.          The
Closing. The closing of the purchase and sale of the Securities (the “Closing”) shall take place at the
offices of the Company on the date the Company countersigns this Subscription Agreement, or at such other time and place as the
Company may designate.

 

    	 	6	 

     

    

 

4.          Payment
for Securities. Consideration for the issuance of the Securities having already been received by the Company, the Company
shall deliver certificates or other appropriate evidence of the Securities to the undersigned at the Closing bearing an appropriate
legend referring to the fact that the Securities were sold in reliance upon an exemption from registration under the Securities
Act.

 

5.          Representations
and Warranties of the Company. As of the Closing, the Company represents and warrants that the Company is duly formed and
validly existing under the laws of Maryland, with full power and authority to conduct its business as it is currently being conducted
and to own its assets; and has secured any other authorizations, approvals, permits and orders required by law for the conduct
by the Company of its business as it is currently being conducted.

 

6.          Representations
and Warranties of the Undersigned. The undersigned hereby represents and warrants to and covenants with the Company that:

 

(a)          General.

 

(i)          The
undersigned has all requisite authority to receive the Securities, enter into this Subscription Agreement and to perform all the
obligations required to be performed by the undersigned hereunder, and such purchase will not contravene any law, rule or regulation
binding on the undersigned or any investment guideline or restriction applicable to the undersigned.

 

(ii)         The
undersigned is a resident of the state set forth on the signature page hereto and is not acquiring the Securities as a nominee
or agent or otherwise for any other person.

 

(iii)        The
undersigned will comply with all applicable laws and regulations in effect in any jurisdiction in which the undersigned purchases
or sells the Securities and obtain any consent, approval or permission required for such purchases or sales under the laws and
regulations of any jurisdiction to which the undersigned is subject or in which the undersigned makes such purchases or sales,
and the Company shall have no responsibility therefor.

 

(b)          Information
Concerning the Company.

 

(i)          The
undersigned has been given the opportunity to ask questions and receive answers concerning the terms and conditions of the issuance
of the Securities. The undersigned has been given the opportunity to obtain material and relevant information from the Company
enabling it to make an informed investment decision. All data that the undersigned has requested has been furnished to it. The
undersigned is aware of and has access to the Company’s public filings with the Securities and Exchange Commission (the
“Public Filings”).

 

(ii)         The
undersigned understands and accepts that the purchase of the Securities involves various risks, including the risks outlined in
this Subscription Agreement and the Public Filings. The undersigned represents that it is able to bear any loss associated with
an investment in the Securities.

 

    	 	7	 

     

    

 

(iii)        The
undersigned confirms that it is not relying on any communication (written or oral) of the Company or any of its affiliates, as
investment advice or as a recommendation to purchase the Securities. It is understood that information and explanations related
to the terms and conditions of the Securities provided by the Company or any of its affiliates shall not be considered investment
advice or a recommendation to purchase the Securities, and that neither the Company nor any of its affiliates is acting or has
acted as an advisor to the undersigned in deciding to invest in the Securities. The undersigned acknowledges that neither the
Company nor any of its affiliates has made any representation regarding the proper characterization of the Securities for purposes
of determining the undersigned’s authority to invest in the Securities.

 

(iv)        The
undersigned is familiar with the business and financial condition and operations of the Company. The undersigned has had access
to such information concerning the Company and the Securities as it deems necessary to enable it to make an informed investment
decision concerning the purchase of the Securities.

 

(v)         The
undersigned understands that, unless the undersigned notifies the Company in writing to the contrary at or before the Closing,
each of the undersigned’s representations and warranties contained in this Subscription Agreement will be deemed to have
been reaffirmed and confirmed as of the Closing, taking into account all information received by the undersigned.

 

(vi)        The
undersigned understands that no federal or state agency has passed upon the merits or risks of an investment in the Securities
or made any finding or determination concerning the fairness or advisability of this investment.

 

(c)          Non-reliance.

 

(i)          The
undersigned represents that it is not relying on (and will not at any time rely on) any communication (written or oral) of the
Company, as investment advice or as a recommendation to purchase the Securities, it being understood that information and explanations
related to the terms and conditions of the Securities shall not be considered investment advice or a recommendation to purchase
the Securities.

 

(ii)         The
undersigned confirms that the Company has not (A) given any guarantee or representation as to the potential success, return, effect
or benefit (either legal, regulatory, tax, financial, accounting or otherwise) of an investment in the Securities or (B) made any
representation to the undersigned regarding the legality of an investment in the Securities under applicable legal investment or
similar laws or regulations. In deciding to purchase the Securities, the undersigned is not relying on the advice or recommendations
of the Company and the undersigned has made its own independent decision that the investment in the Securities is suitable and
appropriate for the undersigned.

 

    	 	8	 

     

    

 

(d)          Status
of Undersigned.

 

(i)          The
undersigned has such knowledge, skill and experience in business, financial and investment matters that the undersigned is capable
of evaluating the merits and risks of an investment in the Securities. With the assistance of the undersigned’s own professional
advisors, to the extent that the undersigned has deemed appropriate, the undersigned has made its own legal, tax, accounting and
financial evaluation of the merits and risks of an investment in the Securities and the consequences of this Subscription Agreement.
The undersigned has considered the suitability of the Securities as an investment in light of its own circumstances and financial
condition and the undersigned is able to bear the risks associated with an investment in the Securities and its authority to invest
in the Securities.

 

(ii)         The
undersigned is an “accredited investor” as defined in Rule 501(a) under the Securities Act. The undersigned agrees
to furnish any additional information requested by the Company or any of its affiliates to assure compliance with applicable U.S.
federal and state securities laws in connection with the purchase and sale of the Securities. The undersigned acknowledges that
the undersigned has completed the Investor Questionnaire contained in Appendix A (the “Questionnaire”)
and that the information and representations contained therein is complete and accurate as of the date thereof and is hereby affirmed
as of the date hereof and as of the Closing. Any information that has been furnished or that will be furnished by the undersigned
to evidence its status as an accredited investor is accurate and complete, and does not contain any misrepresentation or material
omission.

 

(e)          Restrictions
on Transfer or Sale of Securities.

 

(i)          The
undersigned is acquiring the Securities solely for the undersigned’s own beneficial account, for investment purposes, and
not with a view to, or for resale in connection with, any distribution of the Securities. The undersigned understands that the
Securities have not been registered under the Securities Act or any State Securities Laws by reason of specific exemptions under
the provisions thereof which depend in part upon the investment intent of the undersigned and of the other representations made
by the undersigned in this Subscription Agreement and the Questionnaire. The undersigned understands that the Company is relying
upon the representations and agreements contained in this Subscription Agreement and the Questionnaire (and any supplemental information)
for the purpose of determining whether this transaction meets the requirements for such exemptions.

 

(ii)         The
undersigned understands that the Securities are “restricted securities” under applicable federal securities laws and
that the Securities Act and the rules of the U.S. Securities and Exchange Commission (the “Commission”) provide
in substance that the undersigned may dispose of the Securities only pursuant to an effective registration statement under the
Securities Act or an exemption therefrom, and the undersigned understands that the Company has no obligation or intention to register
any of the Securities, or to take action so as to permit sales pursuant to the Securities Act (including Rule 144 thereunder).
Consequently, the undersigned understands that the undersigned must bear the economic risks of the investment in the Securities
for an indefinite period of time.

 

    	 	9	 

     

    

 

(iii)        The
undersigned agrees: (A) that the undersigned will not sell, assign, pledge, give, transfer or otherwise dispose of the Securities
or any interest therein, or make any offer or attempt to do any of the foregoing, except pursuant to a registration of the Securities
under the Securities Act and all applicable State Securities Laws, or in a transaction which is exempt from the registration provisions
of the Securities Act and all applicable State Securities Laws; (B) that the certificates or book entries representing the Securities
will bear a legend making reference to the foregoing restrictions; and (C) that the Company and its affiliates shall not be required
to give effect to any purported transfer of such Securities except upon compliance with the foregoing restrictions.

 

(iv)        The
undersigned acknowledges that neither the Company nor any other person offered to sell the Securities to it by means of any form
of general solicitation or advertising, including but not limited to: (A) any advertisement, article, notice or other communication
published in any newspaper, magazine or similar media or broadcast over television or radio or (B) any seminar or meeting whose
attendees were invited by any general solicitation or general advertising.

 

7.          Conditions
to Obligations of the Undersigned and the Company. The obligations of the undersigned to purchase and pay for the Securities
specified in Section 1 and of the Company to sell the Securities are subject to the satisfaction at or prior to the Closing
of the following conditions precedent: the representations and warranties of the Company contained in Section 5 hereof
and of the undersigned contained in Section 6 hereof shall be true and correct as of the Closing in all respects with the
same effect as though such representations and warranties had been made as of the Closing.

 

8.          Obligations
Irrevocable. The obligations of the undersigned shall be irrevocable.

 

9.          Legend.
Any certificates representing the Securities sold pursuant to this Subscription Agreement will be imprinted with a legend in substantially
the following form:

 

“THE SECURITIES
EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER
JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE
LAWS.”

 

    	 	10	 

     

    

 

10.         Waiver,
Amendment. Neither this Subscription Agreement nor any provisions hereof shall be modified, changed, discharged or terminated
except by an instrument in writing, signed by the party against whom any waiver, change, discharge or termination is sought.

 

11.         Assignability.
Neither this Subscription Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall
be assignable by either the Company or the undersigned without the prior written consent of the other party.

 

12.         Waiver
of Jury Trial. THE UNDERSIGNED IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING
ARISING OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS SUBSCRIPTION AGREEMENT. Each party
to this Subscription Agreement certifies and acknowledges that (a) no representatives of any other party has represented, expressly
or otherwise, that such other party would not seek to enforce the foregoing waiver in the event of a legal action; (b) such party
has considered the implications of this waiver; (c) such party makes this waiver voluntarily; and (d) such party has been induced
to enter into this Subscription Agreement by, among other things, the mutual waivers and certifications in this section.

 

13.         Submission
to Jurisdiction. With respect to any suit, action or proceeding relating to any offers, purchases or sales of the Securities
by the undersigned (“Proceedings”), the undersigned irrevocably submits to the jurisdiction of the federal
or state courts located in the State of Maryland, which submission shall be exclusive unless none of such courts has lawful jurisdiction
over such Proceedings.

 

14.         Governing
Law. This Subscription Agreement shall be governed by and construed in accordance with the laws of the State of Maryland.

 

15.         Section
and Other Headings. The section and other headings contained in this Subscription Agreement are for reference purposes only
and shall not affect the meaning or interpretation of this Subscription Agreement.

 

16.         Counterparts.
This Subscription Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall
be deemed to be an original and all of which together shall be deemed to be one and the same agreement.

 

17.         Notices.
All notices and other communications provided for herein shall be in writing and shall be deemed to have been duly given if delivered
personally or sent by registered or certified mail, return receipt requested, postage prepaid to the following addresses (or such
other address as either party shall have specified by notice in writing to the other):

 

    	 	11	 

     

    

 

	If to the Company:	
        Vaccinogen, Inc.

         

        949 Fell Street

         

        Baltimore, MD 21231

         

        Attention: Chief Executive
        Officer

         

	with a copy to:	
        Venable LLP

         

        750 E. Pratt Street,
        Suite 900

         

        Baltimore, MD 21202

         

        Attention:   Eric
        R. Smith, Esq.

         

	If to the Purchaser:	
        KLP Enterprises, LLC

         

        35 Windsor Road

         

        North Haven, CT 06473

         

        Attention:  Andrew
        Wingate

 

18.         Binding
Effect. The provisions of this Subscription Agreement shall be binding upon and accrue to the benefit of the parties hereto
and their respective heirs, legal representatives, successors and assigns.

 

19.         Survival.
All representations, warranties and covenants contained in this Subscription Agreement shall survive (i) the acceptance of the
subscription by the Company and the Closing, and (ii) the death, disability, or dissolution of the undersigned.

 

20.         Notification
of Changes. The undersigned hereby covenants and agrees to notify the Company upon the occurrence of any event prior to the
closing of the purchase of the Securities pursuant to this Subscription Agreement, which would cause any representation, warranty,
or covenant of the undersigned contained in this Subscription Agreement to be false or incorrect.

 

21.         Severability.
If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term
or provision in any other jurisdiction.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	12	 

     

    

 

 

IN WITNESS WHEREOF,
the undersigned has executed this Subscription Agreement this ____ of ______________________, 2016

 

	 	KLP Enterprises, LLC:
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

The offer to purchase
Securities as set forth above is confirmed and accepted by the Company as to [   ]
shares of common stock.

 

	 	Vaccinogen, Inc.
	 	 
	 	By:	 
	 	Name:	Andrew L. Tussing
	 	Title:	Chief Executive Officer

 

    	 	13	 

     

    

 

APPENDIX A

 

INVESTOR QUESTIONNAIRE

 

This Questionnaire
is being distributed to the undersigned investor (the “Investor”) by Vaccinogen, Inc., a Maryland corporation (the
“Issuer”) in connection with the Subscription Agreement of the Investor to which this Questionnaire is a part (the
“Subscription Agreement”), to enable the Issuer to determine whether the Investor is qualified to invest in the Securities
(as defined in the Subscription Agreement). To be qualified to invest in the Securities, the Investor must be an “Accredited
Investor” (as that term is defined in Rule 501(a) of Regulation D promulgated under Section 4(a)(2) of the Securities Act
of 1933, as amended (the “Securities Act”)).

 

The Issuer will rely
upon the accuracy and completeness of the information provided in this Questionnaire in establishing that the issuance of the Securities
is exempt from the registration requirements of the Securities Act.

 

ACCORDINGLY, THE
INVESTOR IS OBLIGATED TO READ THIS QUESTIONNAIRE CAREFULLY AND TO ANSWER THE ITEMS CONTAINED HEREIN COMPLETELY AND ACCURATELY.

 

ALL INFORMATION CONTAINED
IN THIS QUESTIONNAIRE WILL BE TREATED CONFIDENTIALLY. However, the Investor understands and agrees that the Issuer may present,
upon giving prior notice to the Investor, this Questionnaire to such parties as the Issuer deems appropriate if called upon to
establish that the issuance of the Securities (i) is exempt from the registration requirements of the Securities Act or (ii) meets
the requirements of applicable state securities laws; provided, however, that the Issuer need not give prior notice to the
Investor of its presentation of this Questionnaire to the Issuer’s regularly employed legal, accounting and financial advisors.

 

The Investor understands
that this Questionnaire is merely a request for information and is not an offer to sell, a solicitation of an offer to buy, or
a sale of the Securities. The Investor also understands that the Investor may be required to furnish additional information.

 

PLEASE NOTE THE FOLLOWING
INSTRUCTIONS BEFORE COMPLETING THIS INVESTOR QUESTIONNAIRE.

 

Unless instructed otherwise,
the Investor should answer each question on the Questionnaire. If the answer to a particular question is “None” or
“Not Applicable,” please so state. If the Questionnaire does not provide sufficient space to answer a question, please
attach a separate schedule to your executed Questionnaire that indicates which question is being answered thereon. Persons having
questions concerning any of the information requested in this Questionnaire should consult with their purchaser representative
or representatives, lawyer, accountant or broker or may call Amanda C. E. Knab, Esq., Venable LLP, at 410.244.6514.

 

    	 	14	 

     

    

 

1. General Information

 

Name of Entity: KLP
Enterprises LLC

 

Address of Principal Office: 35 Windsor
Road, North Haven, CT 06473

 

Type of Organization:
Limited liability company

 

Date and State of Organization:
●

 

 2. Accredited
Investor Status

 

To be qualified to
invest in the Securities, the Investor must be an Accredited Investor.

 

Please check the appropriate
description which applies to you.

 

(a) ____________ A
bank, as defined in Section 3(a)(2) of the Securities Act or any savings and loan association or other institution as defined in
Section 3(a)(5)(A) of the Securities Act, whether acting in an individual or a fiduciary capacity.

 

(b) ____________ A
broker or dealer registered under Section 15 of the Securities Exchange Act of 1934, as amended.

 

(c) ____________ An
insurance company, as defined in Section 2(13) of the Securities Act.

 

(d) ____________ An
investment company registered under the Investment Company Act of 1940 or a business development company, as defined in Section
2(a)(48) of that act.

 

(e) ____________ A
Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business
Investment Act of 1958.

 

(f) ____________ A
plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political
subdivisions for the benefit of its employees, if the plan has total assets in excess of $5 million.

 

    	 	15	 

     

    

 

(g) ____________ An
employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974, if the investment decision
is being made by a plan fiduciary, as defined in Section 3(21) of such act, and the plan fiduciary is either a bank, a savings
and loan association, an insurance company, or a registered investment adviser, or if the employee benefit plan has total assets
in excess of $5 million or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors.

 

(h) ____________ A
private business development company, as defined in Section 202(a)(22) of the Investment Advisers Act of 1940.

 

(i) ____________ A
corporation, Massachusetts or similar business trust, or partnership, or an organization described in Section 501(c)(3) of the
Internal Revenue Code of 1986, as amended, that was not formed for the specific purpose of acquiring the Securities, and that has
total assets in excess of $5 million.

 

(j) _____________ A
trust with total assets in excess of $5 million not formed for the specific purpose of acquiring the Securities, whose purchase
is directed by a sophisticated person as described in Rule 506(b)(2)(ii) under the Securities Act.

 

(k) _____________ An
entity in which all of the equity owners are accredited investors and meet the criteria listed in Part I, Item 2 of this Questionnaire.

 

3. Representations

 

The undersigned entity
represents that:

 

(a) The entity understands
that the Issuer will rely upon the completeness and accuracy of the entity’s responses to the questions in this Questionnaire
in establishing that the contemplated transactions are exempt from the Securities Act, and hereby affirms that all such responses
are accurate and complete. The entity will notify the Issuer immediately of any changes in any of such information occurring prior
to the acceptance of its subscription.

 

(b) The entity is not
a retirement plan, employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”) or Section 4975 of the IRS Code (or an entity whose assets are deemed to include assets of those plans under
the Department of Labor’s “plan asset regulation”), a corporate pension and profit-sharing plan, a “simplified
employee pension plan,” a “Keogh” plan, an Individual Retirement Account,  or retirement or employee benefit
plan not subject to ERISA.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 	16	 

     

    

 

	KLP Enterprises LLC	 
	 	 
	By:	 	 
	 	 
	Name: ●	 
	 	 
	Title: ●	 
	 	 
	Date:

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