Document:

Exhibit

Exhibit 10.1

CONFIDENTIAL TREATMENT REQUESTED
Redacted portions are indicated by [***]

CHEMICAL CELLULOSE PURCHASE AND SALE AGREEMENT
BY AND BETWEEN
RAYONIER A.M. SALES AND TECHNOLOGY, INC.
AND
EASTMAN CHEMICAL COMPANY

This Chemical Cellulose Purchase and Sale Agreement (“the Agreement”), effective as of January 1, 2016 (the “Effective Date”) is by and between RAYONIER A.M. SALES AND TECHNOLOGY INC., as seller (“RAYONIER AM”) and EASTMAN CHEMICAL COMPANY, as purchaser (“EASTMAN”).  Rayonier AM and Eastman may be referred to herein individually as a “Party” or collectively as the “Parties”.

WHEREAS, RAYONIER AM is engaged in the business of manufacturing, marketing and selling, among other products, chemical cellulose, also referred to as high purity dissolving wood pulp; and

WHEREAS, EASTMAN procures chemical cellulose as a raw material for use in the manufacture of several of its end use products; and

WHEREAS, RAYONIER AM and EASTMAN are parties to that certain Chemical Cellulose Agreement, dated as of January 1, 2012, as has been amended from time to time (the “Prior Agreement”); and

WHEREAS, it is the intention of the Parties that this Agreement will replace and supersede in its entirety the Prior Agreement as of the Effective Date.  

NOW THEREFORE, in consideration of the foregoing recitals, and the premises and mutual consideration set forth herein, the Parties agree as follows:

      1.  Quantities to be Purchased and Sold.  

(a)  Commencing on the Effective Date, EASTMAN agrees to purchase from RAYONIER AM, and RAYONIER AM agrees to sell to EASTMAN, the following quantities of chemical cellulose in each of the calendar years specified below:

Year            [***]

        

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Exhibit 10.1

CONFIDENTIAL TREATMENT REQUESTED
Redacted portions are indicated by [***]

2016            [***]
        
2017            [***]

2018            [***]

2019            [***]

        
(b)    In no event will EASTMAN’s obligation to purchase chemical cellulose in any calendar year be less than the quantities stated in subsection (a) above.  

(c)    The term “Dissolving Wood Pulp” or “DWP” shall mean a raw material used and purchased by EASTMAN (including its affiliates, subsidiaries and joint ventures to the extent EASTMAN controls DWP purchasing for same) that is (i) chemical cellulose, (ii) a product having specifications and performance characteristics similar to chemical cellulose, or (iii) a substitute for chemical cellulose in the manufacture of EASTMAN’s end products. [***]

(d)    The term “Products” shall mean the grades of chemical cellulose designated by RAYONIER AM [***], and such other grades of chemical cellulose as may be added hereto by written agreement of the parties.  The names and identification numbers for such grades are as follows:
        
       [***]        [***]
[***]                    [***]        [***]
        
[***]

[***]                   [***]    
[***]                        [***]        [***]
[***]                   [***]
        
[***]

[***]                    [***]              [***]
[***]                     [***]

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Exhibit 10.1

CONFIDENTIAL TREATMENT REQUESTED
Redacted portions are indicated by [***]

(e)    [***]

(f)    To facilitate better forecasting, production planning and confirmation of compliance with the volume-related terms of this Agreement, RAYONIER AM and EASTMAN shall comply with the procedures and reporting obligations detailed in Addendum 2 attached hereto and by reference made a part hereof.  

2.  Price.  

(a)    [***] for each grade of chemical cellulose on the Effective Date shall be as specified in the Price Addendum (Addendum 1a) [***] which are attached hereto and made a part hereof.  The Price Addendum shall be updated from time to time to reflect any changes in price contemplated by the terms of this Agreement.

(b)    So long as EASTMAN purchases and pays the prices set forth in the Price Addendum for the quantities required to be purchased as set forth in Article 1(a), RAYONIER AM agrees to [***] and (ii) comply with the terms set forth in Article 2(c) below. [***]

     (c)    [***]
[***]

3.  Term.  This Agreement shall continue in effect from January 1, 2016 through December 31, 2019 (the “Term”).

4.  Terms of Payment:  The terms shall be payment for Products purchased by EASTMAN shall be that EASTMAN will pay all invoices [***] Wire instructions will be provided by RAYONIER AM. The amount and timing of billing for Products purchased by EASTMAN are addressed in the Pricing Addendum.

5.  Audit Rights. 

(a)  Each of EASTMAN and RAYONIER AM shall have reasonable audit rights regarding, [***]  Specifically, each Party shall be able to inspect the other’s records (via a mutually agreed-upon third party, approval not to be unreasonably withheld) to verify the various calculations described in this Article 5(a).  For purposes of ensuring effectiveness of the audits, each Party agrees to maintain copies of all relevant records for not less than three (3) years from the end of the Term. Audit rights hereunder shall be limited to one (1) audit per calendar year per party, and such audits may only be requested during the first three (3) months following the end 

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Exhibit 10.1

CONFIDENTIAL TREATMENT REQUESTED
Redacted portions are indicated by [***]

of the calendar year which is the subject of the audit.  Any resulting audit report shall be completed and delivered to the audited party within six (6) months following the end of the calendar year covered by the audit.  The auditor performing such audit shall be required to sign a reasonable confidentiality agreement provided by the Party to be audited, [***]

(b)  Upon receipt by either Party of an audit report showing noncompliance, within ten (10) days the Parties shall meet (in person or telephonically) to discuss the applicable audit issues and work in good faith to mutually agree upon [***]  The fees and expenses of the auditor shall be paid by the auditing Party, unless noncompliance valued at in excess of [***]is found, in which case such fees and expenses shall be paid by the audited Party. In the event of any dispute over such matters that the Parties cannot themselves resolve, either Party may invoke dispute resolution as described in Article 7 below.

(c)  To facilitate compliance with the calculations described in Article 5(a)(i), (ii) and (iii) above, a corporate officer of the Party responsible for the applicable calculation (i.e., in the case of (i) above; RAYONIER AM; in the case of (ii) above, EASTMAN; and in the case of (iii) above, both Parties) shall confirm by each January 30, beginning January 30, 2017, that they have complied with the requirements of Article 5(a)(i), (ii) and/or (iii), as applicable to them, during the preceding calendar year.

6.  Confidentiality.  Subject to and except for their respective obligations under applicable law, including their disclosure obligations under federal securities laws, the Parties agree that they shall treat this Agreement, including its contents and all information contained in the Addenda (collectively, the “Information”), as confidential. Neither Party shall disclose the Information to any person or entity not directly affiliated with such Party, other than outside legal counsel and external auditors, unless legally compelled to do so, and then only upon timely prior notice to the other Party to allow sufficient time to contest any such disclosure.     

7.  Dispute Resolution.  This Article 7 sets forth the exclusive method of resolving disputes, controversies and claims arising out of or relating to this Agreement (a “Dispute”).

(a)  Either Party seeking resolution of any Dispute shall provide written notice thereof to the other party (the “Initial Notice”), and within thirty (30) days of the delivery of the Initial Notice, the parties shall meet at a mutually agreed location in [***]and shall attempt in good faith to negotiate a resolution of the Dispute. The negotiations shall be conducted by executives who hold, at a minimum, the title of vice president and who have authority to settle the Dispute. All such negotiations shall be confidential and shall be treated as compromise and settlement negotiations for purposes of applicable rules of evidence. If the parties are unable for any reason 

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Exhibit 10.1

CONFIDENTIAL TREATMENT REQUESTED
Redacted portions are indicated by [***]

to resolve a Dispute within thirty (30) days after the delivery of such notice the Dispute shall be submitted to mediation in accordance with subarticle (b) below.

(b)  Any Dispute not resolved pursuant to subarticle (a) above shall, at the written request of a party (a “Mediation Request”), be submitted to nonbinding mediation conducted as mutually agreed by the parties or, if no such agreement is reached, in accordance with the then current [***] except as modified herein. The mediation shall be held in [***]. The Parties shall have twenty (20) days from receipt by a Party of a Mediation Request to agree on a mediator. If no mediator has been agreed upon by the Parties within twenty (20) days of receipt by a Party of a Mediation Request, then a Party may request (on written notice to the other party), that [***] appoint a mediator in accordance with the [***] All mediations pursuant to this Article 7 shall be confidential and shall be treated as compromise and settlement negotiations for purposes of applicable rules of evidence.  No Party shall disclose or permit the disclosure of any information about the evidence adduced or the documents produced by the other Party in the mediation proceedings or about the existence, contents or results of the mediation without the prior written consent of such other Party.

(c) In the event that a Dispute has not been resolved within ninety (90) days after receipt by a Party of a Mediation Request, or within such longer period as the Parties may mutually agree to in writing, then such Dispute shall, upon the written request of a Party (the “Arbitration Request”) be submitted to be finally resolved by binding arbitration pursuant to the [***] (as such rules are modified by the terms of this Agreement, or as may be further modified by mutual agreement of the Parties). The arbitration shall be held in [***]. 

(d)Any Dispute to be arbitrated pursuant to this Article 7 will be decided by a panel of three (3) arbitrators. The panel of three (3) arbitrators will be chosen as follows: (x) within fifteen (15) days from the date of the receipt of the Arbitration Request, each party will name an arbitrator meeting the qualifications set forth in subsection (e) below; and (y) the two (2) party-appointed arbitrators will thereafter, within thirty (30) days from the date on which the second of the two (2) arbitrators was named, name a third arbitrator meeting the qualifications of subarticle (e) below, who will act as chairperson of the arbitral tribunal. In the event that either Party fails to name an arbitrator within fifteen (15) days from the date of receipt of the Arbitration Request, then upon written application by either Party, that arbitrator shall be appointed pursuant to the AAA Commercial Arbitration Rules and Mediation Procedures. [***]The award of the Arbitration Panel shall be final and binding on the Parties, and may be enforced in any court of competent jurisdiction. Any Party seeking to enforce an award in court will seek to ensure that the pleadings in any such action are sealed as is reasonably practicable and permitted by such court, including without limitation, by moving to maintain the pleading and the record as sealed.

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Exhibit 10.1

CONFIDENTIAL TREATMENT REQUESTED
Redacted portions are indicated by [***]

(e)impartially, be qualified with regard to the subject matter of the Dispute, and be free from any conflict of interest, the Arbitration Panel shall be selected such that the Members shall (i) be qualified in the area of complex commercial litigation and will have had at least twenty (20) years experience as a commercial litigator; (ii) have no interest, financial or otherwise, in the Parties or the Agreement beyond payment of their fees and expenses for serving on the Arbitration Panel; (iii) have not been previously or currently employed or engaged in any capacity (other than as a Member of the Arbitration Panel) by the Parties, or have personal or professional relationships with the Parties, unless such employment, engagement, or relationships have been disclosed in writing to all Parties prior to selection of the Arbitration Panel and the Parties have agreed to waive same;  (iv) not advise or otherwise communicate ex parte in any way with the Parties following their appointment as a Member; and (v) treat the details of this Agreement and all the Arbitration Panel’s activities and hearings as private and confidential, and not publish or disclose them without the prior written consent of the Parties.

(f)Within ten (10) days of notice of confirmation of the Arbitration Panel, which includes confirmation by the AAA that Members are free of conflicts, as discussed in Section (c), the Parties’ legal counsel or representatives shall meet, in person or telephonically, to discuss a schedule for the arbitration proceeding, including a schedule for any necessary, reasonable discovery. Following this preliminary meeting, the Arbitration Panel shall schedule a preliminary hearing conference with the Parties, which may be in person or telephonic, not less than eleven (11) days and not more than fifteen (15) days after the confirmation of the Arbitration Panel. The purpose of this scheduling conference shall be for the Arbitration Panel to determine the entire schedule for the arbitration, including setting the hearing. All proceedings in connection with the arbitration, including all information exchanged, are to be maintained as confidential.  Any protective order regarding the exchange of information during the arbitration will be discussed at the preliminary hearing conference and a joint protective order will be presented to the arbitration panel not more than fifteen (15) days after the preliminary hearing conference. If the Parties cannot jointly agree on a protective order, the Arbitration Panel shall impose one no more than thirty (30) days after the preliminary hearing conference.

(g)Not more than forty-five (45) days after the preliminary hearing conference, and without a request by either side, the Parties will [***]  An initial production that complies with the terms of this subsection will be presumptively complete and sufficient. After this initial production, the Parties may, upon good cause shown, request the additional document discovery from the Arbitration Panel.

(h)[***]

(i)[***]

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Exhibit 10.1

CONFIDENTIAL TREATMENT REQUESTED
Redacted portions are indicated by [***]

(j)[***]

(k)Potential experts shall be disclosed within sixty (60) days of the preliminary hearing conference. Expert reports will be prepared pursuant to Federal Rule of Civil Procedure 26(a)(2)(B) and will be exchanged within ninety (90) days of the preliminary hearing. Federal Rules of Civil Procedure 26(b)(4)(B)-(C) shall apply. Any expert deposition will be limited to eight (8) hours.

(l) The arbitration proceeding shall be held in accordance with the [***] in effect on the date of the initial written application to the AAA that gave rise to the Dispute to be arbitrated (as such rules are modified by the terms of this Agreement, or may be further modified by mutual agreement of the Parties).  [***] The decision shall be maintained as confidential and shall not be binding on any other dispute between the Parties.

(m)Notwithstanding the foregoing, if the Parties mutually agree to a deadline extension, then a deadline may be extended to provide additional time to resolve the Dispute, provided that such extension will be decided under the principle that disputes are to be resolved as expeditiously as possible. If either Party objects to a deadline extension, no such extension shall occur.

(n)The cost of such arbitration (excluding expenses of legal counsel and witness fees) shall be borne by the Parties equally, and each Party shall bear the expenses of its own legal counsel and witnesses. Each Party shall maintain the confidentiality of any such arbitration proceeding, except as may be reasonably necessary to enforce the awards or determinations of the Arbitration Panel, or as otherwise required by law or judicial or administrative order or decree; provided that, each Party shall take commercially reasonable efforts to secure the confidential treatment of any disclosure made pursuant to this subsection.

(o)[***]

8.  Prior Agreements and Contracts Superseded.  As of the Effective Date, this Agreement replaces and supersedes all other agreements and contracts entered into by the Parties prior to the date hereof with respect to the purchase and sale of chemical cellulose, including the Prior Agreement, and such other agreements and contracts shall continue in effect only with respect to chemical cellulose delivered to a common carrier prior to the Effective Date.  

    

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Exhibit 10.1

CONFIDENTIAL TREATMENT REQUESTED
Redacted portions are indicated by [***]

9.  Notice.  All notices, claims, demands or other similar communications under this Agreement shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, or by registered or certified mail (postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for a party as shall be specified in a notice given by such party):

	
		
	RAYONIER A.M. SALES AND TECHNOLOGY INC
4474 Savannah Highway
P.O. Box 1280
Jesup, Georgia  31545
Attention:  Vice President, Sales and Marketing

With a copy to:

Rayonier Advanced Materials Inc.
1301 Riverplace Boulevard, Suite 2300
Jacksonville, Florida 32217
Attention: General Counsel 
	EASTMAN CHEMICAL COMPANY
200 S. Wilcox Drive
 Kingsport, TN, 37622
Attention:   VP, Global Procurement

With a copy to:

Eastman Chemical Company
200 S. Wilcox Drive
Kingsport, TN 37662
Attention:  Chief Legal Officer

10.  Construction of Contract.

(a)  This Agreement includes Addenda 1a, 1b, 2 and 2a and such Addenda are incorporated herein and made a part hereof.  All sales of Products made pursuant to this Agreement are made subject to the General Terms of Sale set forth in the attached Addendum 3, which is also incorporated herein and made a part hereof.  In the event of any inconsistency or conflict between any terms or conditions of this Agreement and the General Terms of Sale (Addendum 3), the terms and conditions of this Agreement shall govern. The Parties anticipate that either or both of EASTMAN and RAYONIER AM may employ, as an administrative matter, purchase orders, order confirmations, agreements of sales or other forms which incorporate other provisions which by their terms purport to apply to a sale hereunder.  The Parties expressly stipulate that only this Agreement shall govern, and that no provisions in any such form other than terms which are consistent with this Agreement and which identify a specific shipment, shall apply to any sale pursuant hereto.  This Agreement may be altered or added to only by express agreement in writing signed by both EASTMAN and RAYONIER AM, and no such agreement shall be implied by any act of shipment or acceptance of chemical cellulose.   

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Exhibit 10.1

CONFIDENTIAL TREATMENT REQUESTED
Redacted portions are indicated by [***]
(b)  Each Party acknowledges and agrees that (i) it has been given the opportunity independently to review and participate in the drafting of this Agreement, (ii) it is entering in this Agreement freely and voluntarily, with availability of, or upon, the advice of its own counsel, and that it understands the significance and consequences of this Agreement, (ii) this Agreement shall not be interpreted by rules of construction providing for interpretation against the drafter, but shall be construed as if all parties prepared it, and (iv) any rule of law or any legal decision that might require interpretation of any claimed ambiguities in this Agreement against the Party that drafted it, has no application, and is expressly waived.
 11. Counterparts.  This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Party.

Executed in duplicate this 30th day of November, 2015. 

	
		
	EASTMAN CHEMICAL COMPANY

By:   /s/ Michael A. Berry_______________
Name: Michael A. Berry
Title: Vice President, Global Procurement
	RAYONIER A.M. SALES AND TECHNOLOGY INC

By:   /s/ Paul G. Boynton_______________
Name: Paul G. Boynton
Title:  President

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Addendum 1a

CONFIDENTIAL TREATMENT REQUESTED
Redacted portions are indicated by [***]

CHEMICAL CELLULOSE PURCHASE AND SALE AGREEMENT

PRICE ADDENDUM

Prices

1.  The prices in effect as of [***]for RAYONIER AM’s Products sold to and purchased by EASTMAN are as follows[***]

[***]        
[***]    [***]
[***]                    [***]    [***]
[***]            [***]    [***]
[***]            [***]    [***]
[***]            [***]    [***]
[***]            [***]    [***]
[***]            [***]    [***]

[***]

2.   The prices in effect as of [***]for RAYONIER AM’s Products sold to and purchased by EASTMAN are as follows[***]:

[***]        
[***]    [***]
[***]            [***]    [***]
[***]            [***]    [***]
[***]            [***]    [***]
[***]            [***]    [***]
[***]            [***]    [***]
[***]            [***]    [***]

[***]

3.    [***], the price for Products shall be calculated as follows [***] 

(a)     [***]

Addendum 1a

(b)     [***]
(c)     [***]
(d)     [***]
(e)     [***]
(f)     [***]
(g)     [***]
(h)     [***]
(i)     [***]

Invoicing and Payment

4.    Payment for Products purchased under the Agreement shall be made by EASTMAN as follows:

		
	(a)
	[***]EASTMAN will pay this invoice within [***]of the date of invoice. [***]

		
	(b)
	 Invoices for all Product purchased shall be paid by EASTMAN within [***] days of invoice. 

Addendum 1b

CONFIDENTIAL TREATMENT REQUESTED
Redacted portions are indicated by [***]

CHEMICAL CELLULOSE PURCHASE AND SALE AGREEMENT

[***] ADDENDUM

[***] (as updated by the Parties) of this Agreement determined [***] as set forth below. [***]  For accounting purposes [***], it is assumed [***] of the quantities of chemical cellulose required to be purchased under Article 1(a) by the end of the applicable calendar year.  Notwithstanding the foregoing, if by the end of any calendar year [***] 

[***]
The [***] shall be [***] per calendar year and [***] on all Products [***] (the [***]), payable as provided above.

[***]
In addition to the [***], a [***]of [***]on not more than [***] of Products per calendar year [***]. 

Addendum 2

CONFIDENTIAL TREATMENT REQUESTED
Redacted portions are indicated by [***]

CHEMICAL CELLULOSE PURCHASE AND SALE AGREEMENT

VOLUME FORECASTING AND REPORTING

The objective of these procedures is to ensure good communication between the Parties regarding EASTMAN’S requirements for shipments of Products and RAYONIER AM’S ability to produce the Products to meet the required shipment schedule.  The result of the planning should be the development of good production and shipment schedules [***] ahead, the even flow of shipments over the course of the quarters and year, and even distribution of fiber esters pulp volume from RAYONIER AM’s Fernandina Beach, Florida, and Jesup, Georgia, plants. [***] of the Product volume purchased by EASTMAN under this Agreement in each calendar year shall [***], and [***] of the Product volume purchased by EASTMAN under this Agreement in each calendar year shall [***].

By January 31 of each calendar year commencing for the 2016 calendar year, EASTMAN will [***] (as defined in this Agreement) [***]. For the avoidance of doubt, the first such report shall be made by January 31, 2017 for calendar year 2016. For calendar years 2018 and 2019, EASTMAN will provide [***] October 31 of the prior calendar year, followed by reports by January 31 of 2019 and 2020 of the respective [***].  A corporate officer of EASTMAN shall provide written confirmation of the accuracy of each volume report.  The volume reports shall be supported by written purchasing and inventory records that shall be retained by EASTMAN and subject to audit under Article 5 of this Agreement.

General Terms – Page 2

Addendum 2

CONFIDENTIAL TREATMENT REQUESTED
Redacted portions are indicated by [***]

RAYONIER AM – EASTMAN CHEMICAL

GENERAL TERMS OF SALE

(1)  TITLE:  Title and risk of loss to chemical cellulose shall pass to EASTMAN when the relevant shipment is delivered to EASTMAN’s Kingsport, Tennessee facility.  

(2)  WEIGHT:  In case of chemical cellulose "Ton" means "Metric Ton" 1,000 kgs. on an air dry basis (i.e., 90% bone-dry chemical cellulose by weight and 10% moisture) and usual packaging materials.

(3)  SHIPPING COST AND TAXES:  Unless the terms of sale specified in the Agreement are [***], and, unless the terms of sale specified in the Agreement are [***].  In the event [***] shall also pay any sales, use, excise or other tax, imposed or increased by Federal, State, Provincial or other taxing authority (except income, excess profits or social security taxes) resulting [***].  In the event [***] shall pay all present and future charges after arrival of any shipment at Port of Entry, including, but not limited to, all warehouse charges, import duties, consular fees and charges, tariff charges and taxes imposed by any taxing authority in the Port of Entry or country of destination.

(4)  QUANTITY:  A maximum margin of l0%, more or less, on the quantities shipped is to be allowed for convenience of arranging freighting.  

(5)  CLAIMS:  In the event EASTMAN's location to which the chemical cellulose is being shipped is located in the United States of America or Canada, all claims except for claims of latent defect relating to any shipment must be made in writing within [***] after arrival of shipment at destination and in no event later than [***] after date of shipment from RAYONIER AM's plant.  In the event EASTMAN's location to which the chemical cellulose is being shipped is located outside of the United States of America or Canada, all claims relating to any shipment must be made in writing within [***] after arrival of the shipment at Port of Entry.  A reasonable quantity of such shipment shall be held intact by EASTMAN pending examination.  No defect or nonconformity in any shipment or installment shall excuse EASTMAN from accepting and paying for any shipment or installment as to which no defect or nonconformity shall exist; but RAYONIER AM, at its option, may treat default in payment for any shipment or installment of conforming goods as a breach and pursue its rights as described and referred to in paragraph 10.

(6)  TESTS:  In the event of a dispute as to the moisture content of any chemical cellulose, a retest shall be made in accordance with the procedures for the [***] as set forth in [***] as revised and corrected in [***]. EASTMAN shall, however, pay the invoice for the 

General Terms – Page 3

Addendum 2

CONFIDENTIAL TREATMENT REQUESTED
Redacted portions are indicated by [***]

chemical cellulose in full, when due, subject to the result of the retest.  If the difference in moisture between that described herein or in the Agreement on the one hand and that determined by retesting on the other hand does not exceed l% moisture, the cost of retesting shall be borne by EASTMAN; otherwise, an appropriate adjustment shall be made to the invoice in accordance with the results of the retests and RAYONIER AM shall bear the cost of the retest.

(7)  SELLER'S LIABILITY:  RAYONIER AM warrants that the chemical cellulose shall comply with the [***], BUT MAKES NO OTHER WARRANTY, EXPRESS OR IMPLIED, INCLUDING MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE.  RAYONIER AM's liability with regard to RAYONIER AM’s sale of chemical cellulose to EASTMAN shall be limited to not exceed the purchase price of the particular delivery giving rise to a claim by EASTMAN.  [***]

(8)  CONTINGENCIES:  In the event of any contingency preventing or substantially interfering with the production, shipment or delivery of the products deliverable hereunder, including but not limited to such contingencies as fire, accident, sabotage, use, act of war or the public enemy, uprising, riot, restraint by any government, regulation, rule or order (whether or not actually valid) of any governmental agency or authority, the fixing of price ceilings on any products deliverable hereunder by a governmental agency or authority below prices agreed to for such products by RAYONIER AM and EASTMAN, strike, sitdown, lockout, labor dispute, shortage of labor, fuel, power or raw materials, embargo, restriction or scarcity of transportation facilities, act of God or other cause beyond the control of either party, restrictions as to contracts, materials and shipping, and allocations or priorities, RAYONIER AM shall be under no obligation during such contingency to make shipments if the contingency shall be one immediately affecting RAYONIER AM and the shipments which otherwise would have been made during such period shall be canceled unless EASTMAN and RAYONIER AM otherwise mutually agree.  If the contingency shall be one immediately affecting EASTMAN such that it is unable to purchase any acetate pulp from any supplier, including RAYONIER AM, EASTMAN shall immediately notify RAYONIER AM in writing and shall be under no obligation during the period thereof to accept shipments from RAYONIER AM except such as have been delivered to common carrier prior to the receipt by RAYONIER AM of notice from EASTMAN of such contingency.  [***] Upon the termination of any such contingency, the obligation of the parties hereunder shall (except as herein otherwise provided) again become fully effective with respect to products, the date for shipment of which have not passed. [***]

[***] for purposes of determining whether EASTMAN has complied with the terms of this Agreement, [***]

(9)  SOURCE OF SHIPMENT:  [***]

General Terms – Page 4

Addendum 2

CONFIDENTIAL TREATMENT REQUESTED
Redacted portions are indicated by [***]
        
(10)  DEFAULTS:  If EASTMAN shall be in default for [***] in payment due, or, if either Party shall be in default in the performance of any other obligation, term or condition hereof, of the Agreement for a period of [***] after receipt of written notice from RAYONIER AM, or if EASTMAN or RAYONIER AM shall become insolvent, admit in writing its inability to pay its debts as they mature, file a petition in proceedings in bankruptcy or insolvency or for reorganization or liquidation or relief under any bankruptcy, insolvency or debtor laws, make an assignment for the benefit of creditors, consent to the appointment of a receiver of it or of any substantial part of its property, be adjudicated a bankrupt or insolvent on a petition filed against it in bankruptcy or under insolvency or debtor laws, or if an order shall be made by any court appointing a receiver of either EASTMAN or RAYONIER AM or of any substantial part of the property of either, or if any court shall assume custody or control of either EASTMAN or RAYONIER AM or of any substantial part of the property of either; then, and in any such event, the non-defaulting Party may, at its option, without further demand or further notice of any kind and without prejudice to any other remedies afforded it under the Uniform Commercial Code, under any other applicable law or otherwise, either suspend performance hereunder during the continuance of such event (in which event, if the non-defaulting party elects, the Agreement shall be deemed extended for a period of time equal to that during which performance has been suspended) or terminate the Agreement, any contract entered into pursuant thereto, and/or any other contracts with the defaulting Party without prejudice to any right of action for damages against the defaulting party.

(11)  ASSIGNMENT:  The Agreement shall bind the respective successors and assigns of the parties thereto, but none of either party’s rights or obligations thereunder may be assigned without the other party’s prior written consent, which consent shall not be unreasonably withheld. Any such assignment by one Party without the other Party’s written consent shall be void.

(12)  SEVERABILITY:  If any provision herein is or becomes invalid or illegal in whole or in part, such provision shall be deemed amended, as nearly as possible, to be consistent with the intent expressed herein, in the Agreement to which these General Terms of Sale are attached as an exhibit, and any contract entered into pursuant thereto, and if such is impossible, that provision shall fail by itself without invalidating any of the remaining provisions not otherwise invalid or illegal.

(13)  NOTICE:  Any notice shall be sufficiently given when duly delivered in accordance with Article 9 of the Agreement. 

General Terms – Page 5

Addendum 2

CONFIDENTIAL TREATMENT REQUESTED
Redacted portions are indicated by [***]
        

(14)  GOVERNING LAWS:  These General Terms of Sale, the Agreement to which they are attached as an exhibit and each Chemical Cellulose Agreement entered into pursuant thereto shall be interpreted and construed in accordance with the laws of the [***]

(15)  COMPLIANCE WITH FEDERAL LAW:  When producing in the United States of America the products deliverable under the Agreement to which these General Terms of Sale are attached as an exhibit and any Chemical Cellulose Agreement entered into pursuant thereto, RAYONIER AM shall comply with the Fair Labor Standard Act of 1938, as amended, and Title VII of the Civil Rights Act of 1964, as amended.

(16)  DELAY NO CAUSE FOR REFUSAL:  Notwithstanding anything contained herein, in the event of a carrier or vessel being delayed in arriving at EASTMAN's location to which the chemical cellulose is being shipped or to any foreign Port of Entry, through no fault of RAYONIER AM, beyond the estimated time of arrival (ETA), such delay shall not by itself constitute a cause for refusal of the shipment by EASTMAN.

General Terms – Page 6Exhibit 10.1

 

UNSECURED PROMISSORY NOTE

 

	$200,000	November 25, 2015

 

FOR VALUE RECEIVED,
the undersigned, Vaccinogen, Inc., a Maryland corporation (“Vaccinogen”), hereby promises to pay to the order
of Dolphin Offshore Partners, LP  (the “Lender”), the principal sum of Two Hundred Thousand Dollars
($200,000) (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 March 31, 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 $2.50 per share by providing
written notice to Vaccinogen of such election. 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. 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.

 

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”), (ii) indebtedness owed to Lender
pursuant to that certain Unsecured Promissory Note dated August 12, 2015 issued by Vaccinogen to Lender in the principal amount
of $800,000, as amended by that certain First Amendment to Promissory Note by and between the Lender and Vaccinogen dated November
17, 2015 (the “First Dolphin Promissory Note”), and (iii) indebtedness owed to Stephen W. Robinson (“Robinson”)
pursuant to that certain Unsecured Promissory Note dated November 25, 2015 issued by Vaccinogen to Robinson in the principal amount
of $200,000 (the “Robinson Note”). 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).
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.

 

    	 	2	 

     

    

 

11.          
Waiver under First Dolphin Promissory Note. Lender hereby acknowledges that Vaccinogen is entering into (or has already
entered into) the Robinson Note causing Vaccinogen to incur the Debt relating thereto and Lender hereby waives the restriction
contained in paragraph 10 of the First Dolphin Promissory Note restricting Vaccinogen from incurring, creating or assuming any
additional Debt (as defined therein) as such restrictions would otherwise apply to the Robinson Note. 

 

12.          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.

 

13.          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.

 

14.          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.

 

if to the Lender:

 

Dolphin Offshore Partners, LP

PO Box 16867

Fernandina Beach, FL  32035

Attn: Peter Salas

 

    	 	3	 

     

    

 

[Signatures
on following page]

 

IN WITNESS WHEREOF, Vaccinogen has
caused this Note to be executed on its behalf by its duly authorized officer as of the day and year first above written.

 

 

VACCINOGEN, INC.

 

 

By: ___________________________________

Name: Andrew L. Tussing

Title: Chairman and Chief Executive Officer

 

 

AGREED TO AND ACKNOWLEDGED

 

DOLPHIN OFFSHORE PARTNERS, LP

 

 

By: ___________________________________

Name: Peter Salas

Title: General Partner

    	 	4	 

     

    

 

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.

 

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.

 

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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.

 

    	 	6	 

     

    

 

(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.

 

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(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.

 

    	 	8	 

     

    

 

(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.”

 

    	 	9	 

     

    

 

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.

 

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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):

  

	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:	Dolphin Offshore
        Partners, L.P.

         

        PO Box 16867

         

        Fernandina
        Beach, FL 32035

         

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]

 

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IN WITNESS
WHEREOF, the undersigned has executed this Subscription Agreement this ____ of ______________________, 2015

  

	PURCHASER (if an individual):
	 

         

        By: _____________________

         

        Name: _____________________

         

 

 

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

         

 

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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.

 

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1. General Information

 

Name of Entity: Dolphin
Offshore Partners, L.P.

 

Address of Principal
Office: 4828 First Coast Hwy., Suite 5

 

Fernandina Beach,
FL 32034

 

Type of Organization:
Limited Partnership

 

Date and State of
Organization: July 21, 1989 Delaware

 

 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.

 

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(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.

 

(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]

 

 

    	 	15	 

     

    

 

	Individual

         

         

         

        ________________________

         

        Name

         

         

         

        ________________________

         

        Signature

         

         

         

        Date:___________________ 

         

         

         
	 

         

          

         

         

         

         

         

         

         

         

         

         

         

         

         

	Partnership, Corporation
        or Other Entity

         

        Dolphin Offshore Partners,
        L.P.

         

        Print or Type Name

         

         

         

        By:___________________________

         

        Name: Peter E. Salas

         

        Title: General Partner

         

        Date:_________________________ 

         

    	 	16

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