Document:

Exhibit 10.1

 

Execution Version

 

 

TWELFTH
AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS TWELFTH
AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (hereinafter called this “Amendment”) is dated
effective as of April 25, 2014, by and among BREITBURN OPERATING L.P., a Delaware limited partnership (the “Company”),
BREITBURN ENERGY PARTNERS L.P., as Parent Guarantor (the “Parent”), BreitBurn GP, LLC (the “Parent
GP”), BreitBurn Operating GP, LLC (the “General Partner”), the Subsidiaries of the Parent
and/or the Company, as guarantors (the “Subsidiary Guarantors”, and together with the Parent,
the Parent GP, and the General Partner, the “Guarantors”), EACH LENDER SIGNATORY HERETO, and WELLS FARGO
BANK, NATIONAL ASSOCIATION, as administrative agent for the Lenders (in such capacity, together with its successors in such capacity
“Administrative Agent”). Capitalized terms used in this Amendment, and not otherwise defined in this
Amendment, have the meanings assigned thereto in the Credit Agreement defined below.

 

W I T N E
S S E T H:

 

WHEREAS, the Company,
the Guarantors, Administrative Agent, Issuing Lender and the lenders from time to time party thereto (the “Lenders”)
are parties to that certain Second Amended and Restated Credit Agreement dated as of May 7, 2010, as amended by the following:
that certain First Amendment to Second Amended and Restated Credit Agreement and Consent and First Amendment to Security Agreement
dated as of September 17, 2010, Second Amendment to Second Amended and Restated Credit Agreement dated as of May 9, 2011, Third
Amendment to Second Amended and Restated Credit Agreement dated as of August 3, 2011, Fourth Amendment to Second Amended and Restated
Credit Agreement dated as of October 5, 2011, Fifth Amendment to Second Amended and Restated Credit Agreement dated as of May 25,
2012, Sixth Amendment to Second Amended and Restated Credit Agreement dated as of October 11, 2012, Seventh Amendment to Second
Amended and Restated Credit Agreement dated as of February 26, 2013, Eighth Amendment to Second Amended and Restated Credit Agreement
dated as of May 22, 2013, Ninth Amendment to Second Amended and Restated Credit Agreement dated as of July 15, 2013, Tenth Amendment
to Second Amended and Restated Credit Agreement dated as of November 6, 2013 and Eleventh Amendment to Second Amended and Restated
Credit Agreement dated as of February 21, 2014 (as further amended, modified or restated from time to time, the “Credit
Agreement”), whereby upon the terms and conditions therein stated the Lenders have agreed to make certain loans to
the Company upon the terms and conditions set forth therein;

 

WHEREAS, the Company
has requested that the Lenders amend the Credit Agreement as set forth below; and

 

WHEREAS, subject to
the terms hereof, the undersigned Lenders are willing to agree to the amendments to the Credit Agreement as set forth herein.

 

NOW, THEREFORE, for
and in consideration of the mutual covenants and agreements herein contained, the parties to this Amendment hereby agree as follows:

 

SECTION 1.Amendments
to Credit Agreement. Effective as of the Amendment Effective Date, the definition of “Termination Date” in
Section 1.01 of the Credit Agreement is amended and restated in its entirety as follows:

 

“Termination
Date” means the earlier of (a) May 9, 2017, or (b) the date on which the Lenders’ Commitments terminate
in accordance with the provisions of this Agreement.

 

    	Twelfth Amendment

    	 

    

 

SECTION 2.Borrowing
Base; Elected Commitment Amount. Effective on the Amendment Effective Date, (a) the Borrowing Base is increased to $1,600,000,000
and (b) the Elected Commitment Amount is reaffirmed at $1,400,000,000.

 

SECTION 3. 
Guarantor Confirmation.

 

(a)               
The Guarantors hereby consent and agree to this Amendment and each of the transactions contemplated hereby.

 

(b)              
The Company and each Guarantor ratifies and confirms the debts, duties, obligations, liabilities, rights, titles, pledges,
grants of security interests, liens, powers, and privileges existing by virtue of the Loan Documents to which it is a party.

 

(c)               
The Company and each Guarantor agrees that the guarantees, pledges, grants of security interests and other obligations,
and the terms of each of the Security Agreements and Guaranties to which it is a party, are not impaired, released, diminished
or reduced in any manner whatsoever and shall continue to be in full force and effect and shall continue to secure all Obligations.

 

(d)              
The Company and each Guarantor acknowledges and agrees that all terms, provisions, and conditions of the Loan Documents
to which it is a party (as amended by this Amendment) shall continue in full force and effect and shall remain enforceable and
binding in accordance with their respective terms.

 

SECTION 4.Conditions
of Effectiveness. This Amendment and the amendments hereunder shall become effective as of the date first set forth above
(the “Amendment Effective Date”), provided that the following conditions shall have been satisfied:

 

(a)               
Amendment. The Administrative Agent shall have received a counterpart of this Amendment which shall have been executed
by the Administrative Agent, the Issuing Lender, each of the Lenders, the Company, and the Guarantors (which may be by telecopy
or PDF transmission).

 

(b)              
No Default; Representations and Warranties. As of the Amendment Effective Date:

 

(i)the representations
and warranties of the Company and the Guarantors in Article VI of the Credit Agreement and in the other Loan Documents as
amended hereby shall be true and correct in all material respects (except to the extent such representations and warranties expressly
refer to an earlier date, in which case they shall be true and correct as of such earlier date, and except that the representations
and warranties contained in clauses (a) and (b) of Section 6.14 of the Credit
Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b),
respectively, of Section 7.01 of the Credit Agreement);

 

(ii)no Default or Event
of Default shall exist; and

 

(iii)since December 31,
2012, there shall have been no event, development or circumstance that has had or could reasonably be expected to have a Material
Adverse Effect.

 

(c)               
Payment of Fees. The Company shall have paid all accrued and unpaid fees, costs and expenses owed pursuant to this
Amendment to the extent then due and payable on the Amendment Effective Date.

 

(d)              
Additional Documents. Such other documents, in form and substance satisfactory to Administrative Agent, as the Administrative
Agent may reasonably request.

 

SECTION 5.Representations
and Warranties. Each of the Company and the Parent represents and warrants to Administrative Agent and the Lenders, with
full knowledge that such Persons are relying on the following representations and warranties in executing this Amendment, as follows:

 

    	 	-2-	Twelfth Amendment

    	 

    

 

(a)               
It has the organizational power and authority to execute, deliver and perform this Amendment, and all organizational action
on the part of it requisite for the due execution, delivery and performance of this Amendment has been duly and effectively taken.

 

(b)              
The Credit Agreement, as amended by this Amendment, the Loan Documents and each and every other document executed and delivered
to the Administrative Agent and the Lenders in connection with this Amendment to which it is a party constitute the legal, valid
and binding obligations of it, to the extent it is a party thereto, enforceable against such Person in accordance with their respective
terms except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of
creditors’ rights generally or by equitable principles relating to enforceability.

 

(c)               
This Amendment does not and will not violate any provisions of any of the Organization Documents of the Company.

 

(d)              
No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority
is necessary or required in connection with the execution, delivery or performance by, or enforcement against, any Loan Party of
this Amendment.

 

(e)               
After giving effect to this Amendment, no Default or Event of Default will exist, and all of the representations and warranties
contained in the Credit Agreement and in the other Loan Documents are true and correct in all material respects on and as of this
date (except to the extent such representations and warranties expressly refer to an earlier date, in which case they shall be
true and correct as of such earlier date).

  

SECTION 6.Reference
to and Effect on the Credit Agreement.

 

(a)Upon the effectiveness
hereof, on and after the date hereof, each reference in the Credit Agreement to “this Agreement,” “hereunder,”
“hereof,” “herein,” or words of like import, shall mean and be a reference to the Credit
Agreement as amended hereby.

 

(b)Except as specifically
amended by this Amendment, the Credit Agreement shall remain in full force and effect and is hereby ratified and confirmed.

 

SECTION 7.Extent
of Amendments. Except as otherwise expressly provided herein, the Credit Agreement and the other Loan Documents are not
amended, modified or affected by this Amendment. Each of the Company and the Parent hereby ratifies and confirms that (i) except
as expressly amended hereby, all of the terms, conditions, covenants, representations, warranties and all other provisions of the
Credit Agreement remain in full force and effect, (ii) each of the other Loan Documents are and remain in full force and effect
in accordance with their respective terms, and (iii) the Collateral and the Liens on the Collateral securing the Obligations are
unimpaired by this Amendment and remain in full force and effect.

 

SECTION 8.Loan
Documents. The Loan Documents, as such may be amended in accordance herewith, are and remain legal, valid and binding obligations
of the parties thereto, enforceable in accordance with their respective terms. This Amendment is a Loan Document.

 

    	 	-3-	Twelfth Amendment

    	 

    

 

SECTION 9.Claims.
As additional consideration to the execution, delivery, and performance of this Amendment by the parties hereto and to induce Administrative
Agent and Lenders to enter into this Amendment, each of the Company and the Parent represents and warrants that, as of the date
hereof, it does not know of any defenses, counterclaims or rights of setoff to the payment of any Indebtedness of the Company or
the Parent to Administrative Agent, Issuing Lender or any Lender.

 

SECTION 10.Execution
and Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall
constitute but one and the same instrument. Delivery of an executed counterpart of this Amendment by facsimile or pdf shall be
equally as effective as delivery of a manually executed counterpart.

 

SECTION 11.Governing
Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York and applicable
federal laws of the United States of America.

 

SECTION 12.Headings.
Section headings in this Amendment are included herein for convenience and reference only and shall not constitute a part of this
Amendment for any other purpose.

 

SECTION 13.NO
ORAL AGREEMENTS. The rights and obligations of each of the parties to the loan
documents shall be determined solely from written agreements, documents, and instruments, and any prior oral agreements between
such parties are superseded by and merged into such writings. This Amendment and the other written Loan Documents executed by the
Company, the Guarantors, Administrative Agent, Issuing Lender and/or Lenders represent the final agreement between such parties,
and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements by such parties. There are no
unwritten oral agreements between such parties.

 

SECTION 14.
No Waiver. Each of the Company and the Parent hereby agrees that no Event of Default and no Default has been waived
or remedied by the execution of this Amendment by the Administrative Agent or any Lender. Nothing contained in this Amendment nor
any past indulgence by the Administrative Agent, Issuing Lender or any Lender, nor any other action or inaction on behalf of the
Administrative Agent, Issuing Lender or any Lender, (i) shall constitute or be deemed to constitute a waiver of any Defaults or
Events of Default which may exist under the Credit Agreement or the other Loan Documents, or (ii) shall constitute or be deemed
to constitute an election of remedies by the Administrative Agent, Issuing Lender or any Lender, or a waiver of any of the rights
or remedies of the Administrative Agent, Issuing Lender or any Lender provided in the Credit Agreement, the other Loan Documents,
or otherwise afforded at law or in equity.

 

[Signature Pages Follow]

 

 

    	 	-4-	Twelfth Amendment

    	 

    

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as
of the day and year first above written.

 

	 	LOAN PARTIES:
	 	 	 	 
	 	BREITBURN OPERATING L.P., a Delaware limited 

partnership
	 	 	By:	BreitBurn Operating GP, LLC, its 

general partner 
	 	BREITBURN ENERGY PARTNERS L.P., a 

Delaware limited partnership
	 	 	By:	BreitBurn GP, LLC, its general partner

	 	BREITBURN OPERATING GP, LLC, a Delaware 

limited partnership
	 	BREITBURN FINANCE CORPORATION, a 

Delaware corporation
	 	BREITBURN MANAGEMENT COMPANY, LLC, a 

Delaware limited liability company
	 	ALAMITOS COMPANY, a California corporation
	 	BREITBURN FLORIDA LLC, a Delaware limited 

liability company
	 	 	By:	BreitBurn Operating L.P., its sole 

member
	 	 	By:	BreitBurn Operating GP, LLC, its 
	 	 	 	general partner

	 	BREITBURN FULTON LLC, a Delaware limited 

liability company
	 	BEAVER CREEK PIPELINE, L.L.C., a Michigan 

limited liability company
	 	GTG PIPELINE LLC, a Virginia limited liability 

company
	 	MERCURY MICHIGAN COMPANY, LLC, a 

Michigan limited liability company
	 	TERRA ENERGY COMPANY LLC, a Michigan 

limited liability company
	 	TERRA PIPELINE COMPANY LLC, a Michigan 

limited liability company
	 	PHOENIX PRODUCTION COMPANY, a Wyoming 

corporation

	 	BREITBURN TRANSPETCO GP LLC, a Delaware limited liability company
	 	 	By:	BreitBurn Operating L.P., its sole 

member
	 	 	By:	BreitBurn Operating GP, LLC, its 
	 	 	 	general partner
	 	BREITBURN TRANSPETCO LP LLC, a Delaware 

limited liability company
	 	 	By:	BreitBurn Operating L.P., its sole 

member
	 	 	By:	BreitBurn Operating GP, LLC, its 
	 	 	 	general partner

 

 

    	Signature Page to Twelfth Amendment

    	 

    

 

 

	 	TRANSPETCO PIPELINE COMPANY, L.P., a 

Delaware limited partnership
	 	 	By:	
        BreitBurn Operating L.P., on behalf

        of itself and as the sole member of

	 	 	 	BreitBurn Transpetco GP LLC, each 

a general partner
	 	 	By:	BreitBurn Operating GP, LLC, its 

general partner
	 	BREITBURN OKLAHOMA LLC, a Delaware limited 

liability company
	 	 	By:	
        BreitBurn Operating L.P., its sole

        member

	 	 	By:	BreitBurn Operating GP, LLC, its 
	 	 	 	general partner

 

 

 

	 	By:	/s/ James G. Jackson
	 	 	James G. Jackson
	 	 	Chief Financial Officer
	 	 	 	 

 

 

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	PARENT GP:
	 	 	 
	 	BREITBURN GP, LLC,
	 	a Delaware limited partnership
	 	 	 
	 	 	 
	 	By:	/s/ James G. Jackson
	 	 	James G. Jackson
	 	 	Chief Financial Officer

  

 

 

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	WELLS FARGO BANK, NATIONAL 

ASSOCIATION as Administrative Agent, Issuing 

Lender, Swing Line Lender and a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Michael Real
	 	 	Michael Real
	 	 	Director

 

 

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	THE BANK OF NOVA SCOTIA,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Alan Dawson
	 	 	Name: Alan Dawson
	 	 	Title: Director

 

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	BANK OF MONTREAL,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Gumaro Tijerina
	 	 	Name: Gumaro Tijerina
	 	 	Title: Director

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	UNION BANK, N.A.,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Lara Sorokolit
	 	 	Name: Lara Sorokolit
	 	 	Title: Vice President

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	CITIBANK, N.A.,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Eamon Baqui
	 	 	Name: Eamon Baqui
	 	 	Title: Vice President

 

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	JPMORGAN CHASE BANK, N.A.,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ David Morris
	 	 	Name: David Morris
	 	 	Title: Authorized Officer

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	ROYAL BANK OF CANADA,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Mark Lumpkin, Jr.
	 	 	Name: Mark Lumpkin, Jr.
	 	 	Title: Authorized Signatory

 

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	THE ROYAL BANK OF SCOTLAND plc,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Sanjay Remond
	 	 	Name: Sanjay Remond
	 	 	Title: Authorised Signatory

 

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	SANTANDER BANK, N.A.,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Aidan Lanigan
	 	 	Name: Aidan Lanigan
	 	 	Title: Senior Vice President
	 	 	 
	 	 	 
	 	By:	/s/ Puiki Lok
	 	 	Name: Puiki Lok
	 	 	Title: Senior Vice President

 

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	U.S. BANK NATIONAL ASSOCIATION,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Jonathan H. Lee
	 	 	Name: Jonathan H. Lee
	 	 	Title: Vice President

 

 

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	COMPASS BANK,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Umar Hassan
	 	 	Name: Umar Hassan
	 	 	Title: Vice President

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	COMERICA BANK,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Devin S. Eaton
	 	 	Name: Devin S. Eaton
	 	 	Title: Corporate Banking Officer

 

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	CREDIT SUISSE AG, Cayman Islands Branch,
	 	as a Lender
	 	 	 
	 	 	 
	 	By: 	/s/ Michael Spaight
	 	 	Name: Michael Spaight
	 	 	Title: Authorized Signatory
	 	 	 
	 	 	 
	 	By: 	/s/ Samuel Miller
	 	 	Name: Samuel Miller
	 	 	Title: Authorized Signatory

 

 

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	TORONTO DOMINION (TEXAS) LLC,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Masood Fikree
	 	 	Name: Masood Fikree
	 	 	Title: Authorized Signatory

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Mark Roche
	 	 	Name: Mark Roche
	 	 	Title: Managing Director
	 	 	 
	 	 	 
	 	By:	/s/ Michael D. Willis
	 	 	Name: Michael D. Willis
	 	 	Title: Managing Director

 

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	FIFTH THIRD BANK,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Byron Cooley
	 	 	Name: Byron Cooley
	 	 	Title: Authorized Signatory

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	MIZUHO BANK LTD.,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Leon Mo
	 	 	Name: Leon Mo
	 	 	Title: Authorized Signatory

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	ONEWEST BANK, FSB,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Whitney Randolph
	 	 	Name: Whitney Randolph
	 	 	Title: Senior Vice President

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	SUNTRUST BANK,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Chulley Bogle
	 	 	Name: Chulley Bogle
	 	 	Title: Vice President

 

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	BRANCH BANKING AND TRUST COMPANY,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Traci Bankston
	 	 	Name: Traci Bankston
	 	 	Title:  Assistant Vice President

 

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	BARCLAYS BANK PLC,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Vanessa A. Kurbatskiy
	 	 	Name: Vanessa A. Kurbatskiy
	 	 	Title: Vice President

 

 

    	Signature Page to Twelfth Amendment

    	 

    

 

	 	SUMITOMO MITSUI BANKING CORPORATION,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ James D. Weinstein
	 	 	Name: James D. Weinstein
	 	 	Title: Managing Director

 

 

    	Signature Page to Twelfth AmendmentThe Investment Syndicate (TIS)

 

 

 

23rd April 2014

 

Mr. Andrew L. Tussing

President and Chief Operation Officer and
Vaccinogen Board of Directors

5300 Westview Drive, Suite 406

Frederick, MD 21703, USA

 

Re: Definitive Conditions to Closing

  

 

Dear Mr. Tussing and Vaccinogen’s
Board of Directors:

 

We at TIS are grateful to Mr. Tussing for
his cooperation with our due diligence on Vaccinogen. With critical mass of funds in place we can now follow through with the Vaccinogen
investment. Based on recent due diligence, this binding document is serving to state the final terms for investment.

 

Article 1. Investment Structure

 

The total investment of $80 million US
dollars will take place in the following steps:

 

1st Closing – Within twenty
one (21) business days of Vaccinogen’s authorized execution of this document, TIS will make sure an investment will be delivered
of $10 million out of the amount that will be available in the series C round using the Series C investment subscription documents.
Vaccinogen agrees to immediately pay off existing undisputed past due payables, initiate Article 4 and implement Articles 2, 3
and 5.

 

2nd Closing – Within another
twenty one (21) business days after 1st Closing TIS will make sure an investment will be ready taking the remaining
available amount in the series C (up to $10 million) using the Series C investment subscription documents. Upon the completion
of proper legal investment documents for investments subsequent to the Series C, prepared by Vaccinogen’s counsel and approved
by TIS, this 2nd Closing can first happen.

 

3rd Closing - $20 million investment
at $5.50/share of common stock to take place when the first patient has been given the first three doses of OncoVAX, with positive
result, in the next phase IIIb clinical trial.

 

4th Closing - $20 million investment
at $5.50/share of common stock to take place when the new corporate structure has been implemented as outlined in Article 6.

 

5th Closing - $20 million investment
at $5.50/share of common stock to take place upon successful up-list to either NYSE or NASDAQ. Article 3 takes effect upon this
closing.

 

We reserve the option that expires six months after the first
closing to invest up to an additional $30 million under the same terms.

 

 

 

The Investment Syndicate

C/o Malchor AB

Sollentunavägen 80

SE-191 40 Sollentuna,
Sweden 

    	 

    	 

    

 

The Investment Syndicate (TIS)

 

 

Article 2. Management

 

We are very impressed with Dr. Hanna’s
outstanding accomplishments and his superior role in his great effort to develop and preserve OncoVAX through to this time. Mr.
Tussing helped us appreciate that, without Dr. Hanna there never would have been an OncoVAX or Vaccinogen. Understanding this background
and his consideration of potentially retiring in the near future, we require an updated employment agreement for Dr. Hanna that
shows a respectful transition to Chairman Emeritus, Medical Advisory Board Member and Special Advisor to the CEO. For continuing
of the knowledge, it is important that Dr. Hanna agrees to completely transport his knowledge to those who would join the company
in the research and development areas and advises with the advancement of opportunities for OncoVAX and the promising human antibody
field. These arrangements for Dr. Hanna must be handled with the utmost respect and recognition he deserves and that he has a new
enriching role of again being an explorer of new paths in the human monoclonal antibody effort.

 

After working closely with Mr. Tussing
over the last months and independently investigating his accomplishments, reputation, ethics, impressive knowledge of your business
and science, we have strong confidence in him as a company leader and at this time of important transformation. We therefore urge
that Mr. Tussing to be appointed CEO/President and a member of the board of directors effective upon the 1st closing and be given
full authority to operate and build the business. An updated 3-year employment agreement consistent for this role must be created
for Mr. Tussing and reviewed/approved by the soon to be formed compensation committee. As of the date of this letter and until
after the 1st closing, we insist that no new binding agreement or the hiring of new employees can take place without
our knowledge and approval.

 

Article 3. Intracel License Agreements
and Letter of Intent

 

Our due diligence discovered three important
documents:

 

		1.	2007 License Agreement between Intracel and Vaccinogen

 

		2.	2010 Amendment to the 2007 License Agreement

 

		3.	December 2010 “Letter of Intent” by Intracel as it affects the 2010 Amendment

  

Our analysis of the documents followed
how Intracel moved from 10% of Vaccinogen stock in 2007 to 50% in 2010 in exchange for its transfer of the OncoVAX assets. To our
surprise and discontent, we also discovered an everlasting and more expanded license agreement amendment that still remains in
place. It is our strong view and those of experts that this license agreement and amendment as it is written is unusual for this
situation. We also conclude that it will have a severe and unfavorable impact on the company’s value and hold back the stock
price from reaching its full potential. We further conclude that these license documents are self-defeating and will certainly
create opposing agendas among the shareholders. All the shareholders’ interests must become aligned and this impediment to
maximum investment return potential be removed.

 

 

 

The Investment Syndicate

C/o Malchor AB

Sollentunavägen 80

SE-191 40 Sollentuna, Sweden

 

    	 

    	 

    

 

The Investment Syndicate (TIS)

 

 

We require a termination agreement be executed between Intracel
and Vaccinogen before the first closing that results in a complete elimination of any such license agreement with Intracel to automatically
take effect upon the deposit of all $80 million and without further financial or equity consideration to Intracel.

 

Article 4. Board Constitution

 

We require that the nominating committee
appoint a new chairman and that in-person physical quarterly board meetings be properly planned, scheduled and held. Upon 1st
closing, Dr. Benjamin S. Carson, assuming he is willing, will become Chairman in a transitional capacity until the nominating committee
is formed and the nominating process produces a replacement Chairman. If Dr. Carson is unwilling or unable to be the Chairman,
Mr. Halldin will serve that role as a backup. Also upon 1st closing, Mr. Halldin will serve as Nominating Committee
Chairman and initiate the nominating process for board reconstitution.

 

As Vaccinogen transforms with our capital
investment, it is important that a future Vaccinogen board be comprised of most distinguished health care industry/business leaders
possible that can attract many institutional investors. As of the date of this letter and until after the 1st closing,
we insist that no new board or committee appointments be made without our approval.

 

Board re-constitution needs to take place
in the following manner with a maximum total of seven directors:

 

Upon 1st Closing

 

		1.	Mr. Nicolis (representing new investors since 2007)

 

		2.	A TIS nominee (as vice chairman and chair of nominating committee)

 

		3.	An Intracel nominee (representing pre-Vaccinogen investors)

 

		4.	A 2nd Intracel nominee

 

		5.	Mr. Tussing

 

		6.	Dr. Hanna (chairman emeritus, director)

 

		7.	Dr. Carson (as Chairman, if willing)

  

Upon 2nd Closing

 

		1.	Mr. Nicolis

 

 

 The Investment Syndicate

C/o Malchor AB

Sollentunavägen 80

SE-191 40 Sollentuna, Sweden

 

    	 

    	 

    

 

The Investment Syndicate (TIS)

 

 

		2.	A TIS nominee

 

		3.	An Intracel nominee

 

		4.	Mr. Tussing

 

		5.	Dr. Hanna

 

		6.	Dr. Carson

 

 Between
the 1st and 2nd closing

 

The TIS nominee will begin forming the
nominating committee of independent directors and will lead the effort to identify, interview, evaluate and recommend for appointment
of additional independent directors, potential board chairman and committee chairman candidates. The board would activate the compensation
committee and appoint one of these new independent directors as chairman of it. The board would appoint additional independent
directors to the audit committee.

 

Prior to the 5th Closing

 

		1.	Mr. Nicolis

 

		2.	A TIS nominee

 

		3.	An Intracel nominee

 

		4.	Mr. Tussing

 

		5.	Dr. Carson

 

		6.	A new independent director

 

		7.	A 2nd new independent director (Dr. Hanna retires from the board but maintains chairman
emeritus status upon appointment of 2nd independent director)

  

Also well in time for 5th Closing,
the board must establish term-limit guidelines for directors and be in keeping with best practices for a US public company. When
Intracel’s holdings are distributed among its own shareholders, the Intracel nominee will resign to open up the board position
for another independent director.

 

Article 5. Abell Foundation $5 Million
Equity Investment

 

We understand that Abell Foundation had
originally committed to invest $5 million when Vaccinogen raises at least $35 million. We require that an updated agreement be
executed between Vaccinogen and The Abell Foundation clarifying Abell’s commitment to invest at $5.50 per share before the
3rd closing or surrender its investment option.

  

 

The Investment Syndicate

C/o Malchor AB

Sollentunavägen 80

SE-191 40 Sollentuna, Sweden 

 

    	 

    	 

    

 

The Investment Syndicate (TIS)

 

 

Article 6. Implementation of a new
Corporate Structure

 

We understand that the existing corporate
set up is not as efficient as possible. We require this to be taken care of urgently so a new set up can be implementedbefore the
4th closing.

 

Article 7. Ongoing Public Listing
and Capitalization Efforts

 

We are supportive of Vaccinogen’s
goal to do a carefully planned transition to a national exchange like NASDAQ or NYSE. We encourage committing adequate resources
towards investor relations and public relations activities to build and support investor interest in the Vaccinogen stock while
steps toward big accomplishments are started. We only support the idea of engaging a large investment bank to manage a proper follow-on
underwriting to be considered after the 5th closing. Lastly, we encourage pursuing revenue opportunities at the earliest
possible moment through speedy completion of the phase IIIb trial, opening up other markets and the human monoclonal antibodies
effort.

 

______________________________________

 

  

On behalf of TIS, this binding commitment to invest, which expires
in five business days from the delivery of this letter unless countersigned by Vaccinogen, under the above stated definitive conditions
to closing, is authorized by:

 

 

	/s/ Anders Halldin	 	April 23, 2014	 
	 	 	 	 
	Anders Halldin, TIS leader	 	Date	 

 

On behalf of Vaccinogen, Inc. as authorized
by its board we accept the above stated binding definitive conditions to closing:

 

	/s/ Andrew L. Tussing	 	April 24, 2014	 
	 	 	 	 
	Andrew L. Tussing, President 	 	Date 	 

 

 

 

The Investment Syndicate

C/o Malchor AB

Sollentunavägen 80

SE-191 40 Sollentuna, Sweden

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