Document:

INVESTMENT
AGREEMENT

 

THIS
INVESTMENT AGREEMENT (hereinafter referred to as the “Agreement”), dated as of January 16, 2013 (“Execution
Date”) by and between Vaccinogen, Inc., a Maryland corporation (hereinafter referred to as the “Company”), and
The Abell Foundation, Inc., a Maryland nonstock corporation (hereinafter referred to as the “Investor”).

 

WHEREAS,
the parties desire that, upon the terms and subject to the conditions contained herein, the Investor shall invest up to five million
dollars ($5,000,000) to purchase the Company’s Common Stock, $0.0001 par value per share (the “Common Stock”);
and

 

WHEREAS,
such investments will be made in reliance upon the provisions of Section 4(2) under the Securities Act of 1933, as amended (the
“1933 Act”), Rule 506 of Regulation D, and the rules and regulations promulgated thereunder, and/or upon such other
exemption from the registration requirements of the 1933 Act as may be available with respect to any or all of the investments
in Common Stock to be made hereunder; and

 

NOW
THEREFORE, in consideration of the foregoing recitals, which shall be considered an integral part of this Agreement, the covenants
and agreements set forth hereafter, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the Company and the Investor hereby agree as follows:

 

SECTION
1. DEFINITIONS.

 

As
used in this Agreement, the following terms shall have the following meanings specified or indicated below, and such meanings shall
be equally applicable to the singular and plural forms of such defined terms.

 

“1933
Act” shall have the meaning set forth in the preamble of this agreement.

 

“1934
Act” shall mean the Securities Exchange Act of 1934, as it may be amended.

 

“Affiliate”
shall have the meaning specified in Section 5(G), below.

 

“Agreement”
shall mean this Investment Agreement.

 

“By-laws”
shall have the meaning specified in Section 4(C).

 

“Certificate
of Incorporation” shall have the meaning specified in Section 4(C).

 

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“Closing”
shall have the meaning specified in Section 2(D).

 

“Closing
Date” shall mean no more than five (5) Trading Days following an Option Notice Date.

 

“Common
Stock” shall have the meaning set forth in the preamble of this Agreement.

 

“Company”
shall mean Vaccinogen, Inc., a Maryland corporation.

 

“Control”
or “Controls” shall have the meaning specified in Section 5(G).

 

“Environmental
Laws” shall have the meaning specified in Section 4(K).

 

“Equity
Line Transaction Documents” shall mean this Agreement and all documents and agreements now or hereafter executed
in connection herewith, as the same may from time to time be amended, supplemented, extended, renewed, replaced or otherwise modified.

 

“Execution
Date” shall mean the date indicated in the preamble to this Agreement.

 

“Facility
Amount” shall have the meaning specified in Section 2(A).

 

“Indemnities”
shall have the meaning specified in Section 9.

 

“Indemnified
Liabilities” shall have the meaning specified in Section 9.

 

“Investor”
shall have the meaning indicated in the preamble of this Agreement.

 

“Kodiak
Capital” shall mean Kodiak Capital Group, LLC.

 

“Maryland
Loan” shall mean a forgivable loan to the Company from the State of Maryland.

 

“Material
Adverse Effect” shall have the meaning specified in Section 4(A).

 

“Material
Amount” or “Material in Amount”
shall mean greater than $10,000.

 

“Note
Purchase Agreement” shall mean that certain Note and Warrant Purchase Agreement dated October 26, 2011, by and between
the Company and the Investor, as the same has been and hereafter may be amended, supplemented, extended, renewed, replaced or otherwise
modified.

 

“Option”
shall have the meaning set forth in Section 2(B) hereof.

 

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“Option
Amount” shall have the meaning set forth in Section 2(B) hereof.

 

“Option
Notice” shall mean a written notice sent by the Investor to the Company stating the Option Amount in U.S. dollars
the Investor intends to purchase from the Company pursuant to the terms of this Agreement.

 

“Option
Notice Date” shall mean the Trading Day, as set forth below, on which the Company receives an Option Notice; however,
an Option Notice shall be deemed delivered on (a) the Trading Day it is received by facsimile or otherwise by the Company if such
notice is received prior to 9:00 am Eastern Time, or (b) the immediately succeeding Trading Day if it is received by facsimile
or otherwise after 9:00 am Eastern Time on a Trading Day. No Option Notice may be deemed delivered on a day that is not a Trading
Day.

 

“Principal
Market” shall mean the American Stock Exchange, Inc., the National Association of Securities Dealers, Inc. Over-the-Counter
Bulletin Board, the NASDAQ National Market System or the NASDAQ SmallCap Market, whichever is the principal market on which the
Common Stock will be listed pursuant to the Company’s plans to become a fully-reporting publicly-listed Company on a Principal
Market.

 

“Purchase
Amount” shall mean the total amount being paid by the Investor on a particular Closing Date to purchase the Securities.

 

“Purchase
Price” shall mean the lowest price paid by any purchaser of Shares in the Venture Capital Financing.

 

“Related
Party” shall have the meaning specified in Section 5(G).

 

“Resolution”
shall have the meaning specified in Section 7(E).

 

“SEC”
shall mean the U.S. Securities & Exchange Commission.

 

“Securities”
shall mean the Shares issued pursuant to the terms of the Agreement.

 

“Shares”
shall mean the shares of the Company’s Common Stock.

 

“Subsidiaries”
shall have the meaning specified in Section 4(A).

 

“Term
Sheet” shall mean an executed instrument between the parties hereto containing the terms of this and other agreements
between the parties, and is hereby incorporated by reference. If any conflict exists between the terms or provisions of the Term
Sheet and this Agreement, the latter shall prevail.

 

“Trading
Day” shall mean any day on which the Principal Market for the Common Stock is open for trading, from the hours of
9:30 am until 4:00 pm.

 

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“Venture
Capital Financing” shall mean shall mean the first transaction or series of transactions to occur after the date
hereof involving the issuance or sale of Shares that would result in at least $35,000,000 in aggregate gross proceeds to the Company;
provided, however, that the indicated amount representing the Venture Capital Financing shall be reduced dollar-for-dollar by the
principal amount of the indebtedness incurred by the Company with respect to the Maryland Loan (in no event to exceed $2,000,000).

 

SECTION
2. PURCHASE AND SALE OF COMMON STOCK.

 

(A)  PURCHASE
AND SALE OF COMMON STOCK. From time to time, subject to the terms and conditions set forth herein and in the other Equity Line
Transaction Documents and in accordance with the procedure described in this Section 2, at the request of the Investor in its sole
discretion, the Company shall issue and sell to the Investor, and the Investor shall purchase from the Company, up to that number
of Shares having an aggregate Purchase Price not to exceed five million dollars ($5,000,000) (the “Facility Amount”).

 

(B)  DELIVERY
OF OPTION NOTICES. The Investor may from time to time in its sole discretion, deliver an Option Notice to the Company which
states the dollar amount (designated in U.S. Dollars) (the “Option Amount”) which the Investor intends to invest for
the purpose of purchasing Shares from the Company on a Closing Date (the “Option”). The Option Notice shall be in the
form attached hereto as Exhibit A and incorporated herein by reference. The Option Amount shall be up to an aggregate amount of
five million dollars ($5,000,000). The Purchase Price for the Common Stock identified in the Option Notice shall be the Purchase
Price.

 

(C)  CONDITIONS
TO INVESTOR’S PURCHASE OF SHARES. Notwithstanding anything to the contrary in this Agreement, it is understood and agreed
that the Investor shall not deliver an Option Notice, and shall have no obligation to purchase any Shares pursuant to any Option
Notice delivered by it, unless each of the following conditions are satisfied or waived by it in writing:

 

(I)
the Company shall have received gross proceeds of at least twenty-five million dollars ($25,000,000) under that certain Investment
Agreement dated July 18, 2012 with Kodiak Capital;

 

(II)
after the date hereof, the Company shall have received gross proceeds from the sale of Shares of at least ten million dollars ($10,000,000)
from investors other than Kodiak Capital; provided, however, that the required amount of gross proceeds received from the sale
of Shares shall be reduced dollar-for-dollar by the principal amount of the indebtedness incurred by the Company with respect to
the Maryland Loan (in no event to exceed $2,000,000);

 

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(III)
the Company shall have complied with its obligations and is otherwise not in breach of or in default under this Agreement, under
the Note Purchase Agreement or under any other agreement executed in connection herewith or therewith;

 

(IV)
no injunction shall have been issued and remain in force, or action commenced by a governmental authority which has not been stayed
or abandoned, prohibiting the purchase or the issuance of the Securities; and

 

(V)
with respect to all Options, the issuance of the Securities will not violate any shareholder approval requirements of the Principal
Market to the extent applicable.

 

(D)  MECHANICS
OF PURCHASE OF SHARES BY INVESTOR. Subject to the satisfaction of the conditions set forth in Sections 2(C), 6, and 7, the
closing of the purchase by the Investor of Securities pursuant to an Option Notice (a “Closing”) shall occur on the
date which is no later than five (5) Trading Days following the applicable Option Notice Date (each a “Closing Date”).
Prior to or on each Closing Date, (I) the Investor shall deliver to the Company the Purchase Price to be paid for such Securities,
and (II) the Company shall deliver to the Investor certificates representing the Securities to be issued to the Investor on such
date and registered in the name of the Investor. In lieu of delivering physical certificates representing the Securities, and provided
that the Company’s transfer agent is then participating in the Depository Trust Company (“DTC”) Fast Automated
Securities Transfer (“FAST”) program, upon request of the Investor, the Company shall use commercially reasonable efforts
to cause its transfer agent to electronically transmit the Securities by crediting the account of the Investor’s prime broker
(as specified by the Investor within a reasonably in advance of the Investor’s notice) with DTC through its Deposit Withdrawal
Agent Commission (“DWAC”) system.

 

SECTION
3. INVESTOR’S REPRESENTATIONS, WARRANTIES, AND COVENANTS.

 

The
Investor represents and warrants to the Company, and covenants, as follows:

 

(A)  SOPHISTICATED
INVESTOR. The Investor has, by reason of its business and financial experience, such knowledge, sophistication, and experience
in financial and business matters and in making investment decisions of this type that it is capable of (I) evaluating the merits
and risks of an investment in the Securities and making an informed investment decision; (II) protecting its own interest; and
(III) bearing the economic risk of such investment for an indefinite period of time.

 

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(B)  AUTHORIZATION;
ENFORCEMENT. The Investor has the requisite power and authority to enter into and perform this Agreement. The execution and
delivery of this Agreement by the Investor and the consummation by it of the transactions contemplated hereby and thereby have
been duly and validly authorized by the Investor, and no further consent or authorization is required by its Board of Trustees.
This Agreement has been duly and validly authorized, executed, and delivered on behalf of the Investor and is a valid and binding
agreement of the Investor enforceable against the Investor in accordance with its terms, subject as to enforceability to general
principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating
to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

(C)  SECTION
9 OF THE 1934 ACT. During the term of this Agreement, the Investor will comply with the provisions of Section 9 of the 1934
Act, and the rules promulgated thereunder, with respect to transactions involving the Common Stock. The Investor agrees not to
sell the Company’s stock short, either directly or indirectly through its affiliates, principals or advisors during the term
of this Agreement.

 

(D)  ACCREDITED
INVESTOR. Investor is an “Accredited Investor” as that term is defined in Rule 501(a) of Regulation D of the 1933
Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act.

 

(E)  NO
CONFLICTS. The execution, delivery, and performance of the Equity Line Transaction Documents by the Investor and the consummation
by the Investor of the transactions contemplated hereby and thereby will not (I) result in a violation of the limited liability
company operating agreement or other organizational documents of the Investor, or (II) conflict with, or constitute a material
default (or an event which, with notice or lapse of time or both would become a material default) under, or give to others any
rights of termination, amendment, acceleration, or cancellation of, any material agreement, contract, indenture mortgage, indebtedness,
or instrument to which the Investor is a party, or to the Investor’s knowledge, result in a violation of any law, rule, regulation,
order, judgment, or decree (including federal and state securities laws and regulations) applicable to the Investor or by which
any property or asset of the Investor is bound or affected.

 

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(F)  OPPORTUNITY
TO DISCUSS. The Investor has received all materials relating to the Company’s business, finance and operations, which
it has requested. The Investor has had an opportunity to discuss the business, management, and financial affairs of the Company
and the terms and conditions of this Agreement and the merits and risks of investing in the Securities with the Company’s
management sufficient to enable it to evaluate its investment. The Investor has had the opportunity to obtain such additional information
that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment
decision with respect to the investment.

 

(G)  INVESTMENT
PURPOSES. The Investor is purchasing the Securities for its own account for investment purposes and not with a view towards
distribution and agrees to resell or otherwise dispose of the Securities solely in accordance with the registration provisions
of the 1933 Act (or pursuant to an exemption from such registration provisions).

 

(H)  NO
REGISTRATION AS A DEALER. The Investor is not and will not be required to be registered as a “dealer” under the
1934 Act, either as a result of its execution and performance of its obligations under this Agreement or otherwise.

 

(I)  GOOD
STANDING. The Investor is a corporation, duly formed, validly existing, and in good standing in the State of Maryland.

 

(J)  TAX
LIABILITIES. The Investor understands that it is liable for its own tax liabilities.

 

(K)  REGULATION
M. The Investor will comply with Regulation M under the 1934 Act, if applicable.

 

(L)  INVESTOR
FUNDS. The Investor has, and will have at each Closing, all funds or financing in place necessary to pay and deliver to the
Company the cash Purchase Price as contemplated hereby.

 

SECTION
4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

Except
as set forth in the Schedules attached hereto, or as may be disclosed from time to time by the Company to the Investor in writing
after the Execution Date, the Company represents and warrants to the Investor, and covenants, as follows:

 

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(A)  ORGANIZATION
AND QUALIFICATION. The Company is a corporation duly organized and validly existing in good standing under the laws of the
State of Maryland, and has the requisite corporate power and authorization to own its properties and to carry on its business as
now being conducted. Both the Company and the companies it owns or controls (“Subsidiaries”) are duly qualified to
do business and are in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted
by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would
not have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means any material adverse
effect on the business, properties, assets, operations, results of operations, financial condition or prospects of the Company
and its Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements and instruments
to be entered into in connection herewith, or on the authority or ability of the Company to perform its obligations under any of
the Equity Line Transaction Documents.

 

(B)  AUTHORIZATION;
ENFORCEMENT; COMPLIANCE WITH OTHER INSTRUMENTS.

 

(I)
The Company has the requisite corporate power and authority to enter into and perform this Agreement and the other Equity Line
Transaction Documents to issue the Securities in accordance with the terms hereof and thereof.

 

(II)
The execution and delivery of the Equity Line Transaction Documents by the Company and the consummation by it of the transactions
contemplated hereby and thereby, including, without limitation, the reservation for issuance and the issuance of the Securities
pursuant to this Agreement, have been duly and validly authorized by the Company’s Board of Directors, and no further consent
or authorization is required by the Company, its Board of Directors or its shareholders.

 

(III)
The Equity Line Transaction Documents have been duly and validly executed and delivered by the Company.

 

(IV)
The Equity Line Transaction Documents constitute the valid and binding obligations of the Company enforceable against the Company
in accordance with their terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’
rights and remedies.

 

(C)  CAPITALIZATION.

 

Except
as disclosed in Schedule 4(C) and as may be disclosed by the Company to the Investor in writing after the Execution Date:

 

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		(I)	No shares of the Company’s capital stock are subject
to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company;

 

		(II)	There are no outstanding debt securities and there is
no other indebtedness for borrowed money;

 

		(III)	There are no outstanding shares of capital stock, options,
warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights
convertible into, any shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings
or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock
of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries;

 

		(IV)	There are no agreements or arrangements under which the
Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act;

 

		(V)	There are no outstanding securities of the Company or
any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings
or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or
any of its Subsidiaries;

 

		(VI)	There are no securities or instruments containing anti-dilution
or similar provisions that will be triggered by the issuance of the Securities as described in this Agreement;

 

		(VII)	The Company does not have any stock appreciation rights
or “phantom stock” plans or agreements or any similar plan or agreement; and

 

		(VIII)	There is no dispute as to the classification of any shares
of the Company’s capital stock.

 

The
Company has furnished to the Investor true and correct copies of the Company’s Certificate of Incorporation, as in effect
on the date hereof (the “Certificate of Incorporation”), and the Company’s By-laws, as in effect on the date
hereof (the “By-laws”), and the terms of all securities convertible into or exercisable for Common Stock and the material
rights of the holders thereof in respect thereto.

 

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(D)  ISSUANCE
OF SHARES. The Company agrees to reserve adequate Shares for issuance pursuant to this Agreement, which have been duly authorized
and reserved for issuance pursuant to this Agreement (subject to adjustment pursuant to the Company’s covenant set forth
in Section 5(F)). Upon issuance in accordance with this Agreement, the Securities will be validly issued, fully paid for and non-assessable
and free from all taxes, liens and charges with respect to the issue thereof. In the event the Company cannot reserve a sufficient
number of Shares for issuance pursuant to this Agreement, the Company will use its best efforts to authorize and reserve for issuance
the number of Shares required for the Company to perform its obligations hereunder as soon as reasonably practicable.

 

(E)  NO
CONFLICTS. The execution, delivery, and performance of the Equity Line Transaction Documents by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby will not: (I) result in a violation of the Certificate of Incorporation,
any Certificate of Designations, Preferences and Rights of any outstanding series of preferred stock of the Company, or the By-laws;
or (II) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration, or cancellation of, any material agreement, contract,
indenture mortgage, indebtedness, or instrument to which the Company or any of its Subsidiaries is a party, or to the Company’s
knowledge result in a violation of any law, rule, regulation, order, judgment, or decree (including federal and state securities
laws and regulations and the rules and regulations of the Principal Market or principal securities exchange or trading market on
which the Common Stock is to be traded or listed) applicable to the Company or any of its Subsidiaries or by which any property
or asset of the Company or any of its Subsidiaries is bound or affected. Except as disclosed in Schedule 4(E), neither the Company
nor its Subsidiaries is in violation of any term of, or in default under, the Certificate of Incorporation, any Certificate of
Designations, Preferences and Rights of any outstanding series of preferred stock of the Company or the By-laws or their organizational
charter or by-laws, respectively, or any contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree,
or order or any statute, rule, or regulation applicable to the Company or its Subsidiaries, except for possible conflicts, defaults,
terminations, amendments, accelerations, cancellations, and violations that would not individually or in the aggregate have or
constitute a Material Adverse Effect. The business of the Company and its Subsidiaries is not being conducted, and shall not be
conducted, in violation of any law, statute, ordinance, rule, order, or regulation of any governmental authority or agency, regulatory
or self-regulatory agency, or court, except for possible violations the sanctions for which either individually or in the aggregate
would not have a Material Adverse Effect. Except as specifically contemplated by this Agreement and as required under the 1933
Act, the 1934 Act, or any securities laws of any states, to the Company’s knowledge, the Company is not required to obtain
any consent, authorization, permit or order of, or make any filing or registration with, any court, governmental authority or agency,
regulatory or self-regulatory agency, or other third party in order for it to execute, deliver, or perform any of its obligations
under, or contemplated by, the Equity Line Transaction Documents in accordance with the terms hereof or thereof. All consents,
authorizations, permits, orders, filings, and registrations which the Company is required to obtain pursuant to the preceding sentence
have been obtained or effected on or prior to the date hereof and are in full force and effect as of the date hereof or are pending.
Except as disclosed in Schedule 4(E), the Company and its Subsidiaries are unaware of any facts or circumstances which might give
rise to any of the foregoing. The Company will not be in violation of the listing requirements of the Principal Market as in effect
on the date hereof and on each of the Closing Dates and is not aware of any facts which would reasonably lead to delisting of the
Common Stock by the Principal Market in the foreseeable future.

 

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(F)  ABSENCE
OF CERTAIN CHANGES. The Company does not intend to and has not taken any actions to change the business operations of the Company
in any material way. The Company is “solvent” within the meaning given to such term and similar terms under applicable
laws relating to fraudulent conveyances and transfers. The Company has not taken any steps, and does not currently expect to take
any steps, to seek protection pursuant to any bankruptcy law nor does the Company or its Subsidiaries have any knowledge or reason
to believe that its creditors intend to initiate involuntary bankruptcy proceedings. Except as previously disclosed to the Investor
in writing, there have been no material adverse results or consequences arising in connection with any clinical trial testing the
efficacy of any product for which the Company owns or licenses the applicable patent(s).

 

(G)  ABSENCE
OF LITIGATION AND/OR REGULATORY PROCEEDINGS. Except as set forth in Schedule 4(G), there is no action, suit, proceeding, inquiry
or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the
knowledge of the Company or any of its Subsidiaries, threatened against or affecting the Company, the Common Stock or any of the
Company’s Subsidiaries or any of the Company’s or the Company’s Subsidiaries’ officers or directors in
their capacities as such.

 

(H)  ACKNOWLEDGMENT
REGARDING INVESTOR’S PURCHASE OF SHARES. The Company acknowledges and agrees that the Investor is acting solely in the
capacity of an arm’s length purchaser with respect to the Equity Line Transaction Documents and the transactions contemplated
hereby and thereby. The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the
Company (or in any similar capacity) with respect to the Equity Line Transaction Documents and the transactions contemplated hereby
and thereby and any advice given by the Investor or any of its respective representatives or agents in connection with the Equity
Line Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to the Investor’s purchase
of the Securities, and is not being relied on by the Company. The Company further represents to the Investor that the Company’s
decision to enter into the Equity Line Transaction Documents has been based solely on the independent evaluation by the Company
and its representatives.

 

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(I)  EMPLOYEE
RELATIONS. Neither the Company nor any of its Subsidiaries is involved in any union labor dispute, nor, to the knowledge of
the Company or any of its Subsidiaries, is any such dispute threatened. Neither the Company nor any of its Subsidiaries is a party
to a collective bargaining agreement, and the Company and its Subsidiaries believe that relations with their employees are good.
No executive officer (as defined in Rule 501(f) of the 1933 Act) has notified the Company that such officer intends to leave the
Company’s employ or otherwise terminate such officer’s employment with the Company.

 

(J)  INTELLECTUAL
PROPERTY RIGHTS. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks, trade names,
service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals,
governmental authorizations, trade secrets, and rights necessary to conduct their respective businesses as now conducted. Except
as set forth in Schedule 4(J), none of the Company’s trademarks, trade names, service marks, service mark registrations,
service names, patents, patent rights, copyrights, inventions, licenses, approvals, government authorizations, trade secrets, or
other intellectual property rights necessary to conduct its business as now or as proposed to be conducted have expired or terminated,
or are expected to expire or terminate within two (2) years from the date of this Agreement. The Company and its Subsidiaries do
not have any knowledge of any infringement by the Company or its Subsidiaries of trademark, trade name rights, patents, patent
rights, copyrights, inventions, licenses, service names, service marks, service mark registrations, trade secret, or other similar
rights of others, or of any such development of similar or identical trade secrets or technical information by others and, except
as set forth in the Schedule 4(J), there is no claim, action or proceeding being made or brought against, or to the Company’s
knowledge, being threatened against, the Company or its Subsidiaries regarding trademark, trade name, patents, patent rights, invention,
copyright, license, service names, service marks, service mark registrations, trade secret or other infringement; and the Company
and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing. The Company and its
Subsidiaries have taken commercially reasonable security measures to protect the secrecy, confidentiality, and value of all of
their intellectual properties.

 

(K)  ENVIRONMENTAL
LAWS. The Company and its Subsidiaries (I) are, to the knowledge of the management and directors of the Company and its Subsidiaries
after due inquiry, in compliance with any and all applicable foreign, federal, state and local laws and regulations relating to
the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants
(“Environmental Laws”); (II) have, to the knowledge of the management and directors of the Company after due inquiry,
received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective
businesses; and (III) are in compliance, to the knowledge of the management and directors of the Company after due inquiry, with
all terms and conditions of any such permit, license or approval where, in each of the three (3) foregoing cases, the failure to
so comply would have, individually or in the aggregate, a Material Adverse Effect.

 

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(L)  TITLE.
The Company and its Subsidiaries have good and marketable title to all personal property owned by them which is material to the
business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances, and defects except such as
are described in Schedule 4(L) or such as do not materially affect the value of such property and do not interfere with the use
made and proposed to be made of such property by the Company or any of its Subsidiaries. Any real property and facilities held
under lease by the Company or any of its Subsidiaries are held by them under valid, subsisting, and enforceable leases with such
exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by
the Company and its Subsidiaries.

 

(M)  INSURANCE.
The Company and each of its Subsidiaries, where applicable, are or will be insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as is typical and customary in the businesses in which the Company and its Subsidiaries
are engaged. Neither the Company nor any of its Subsidiaries has been refused any insurance coverage sought or applied for and
neither the Company nor its Subsidiaries has any reason to believe that it will not be able to renew its existing insurance coverage
as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business
at a cost that would not have a Material Adverse Effect.

 

(N)  COMPLIANCE
WITH LAWS; REGULATORY PERMITS. Neither the Company nor any of its Subsidiaries is in violation of any applicable laws, rules,
regulations, executive orders or codes which violation(s) could, individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect. Without limitation of the foregoing, the Company and its Subsidiaries have in full force and effect
all certificates, approvals, authorizations, and permits from the appropriate federal, state, local, or foreign regulatory authorities
and comparable foreign regulatory agencies, necessary to own, lease, or operate their respective properties and assets and conduct
their respective businesses, and neither the Company nor any such Subsidiary has received any notice of proceedings relating to
the revocation or modification of any such certificate, approval, authorization or permit, except for such certificates, approvals,
authorizations, or permits which if not obtained, or such revocations or modifications which, could not reasonably be expected
have a Material Adverse Effect.

 

    	13

    	 

    

 

(O)  TAX
STATUS. Except as set forth on Schedule 4(0), the Company and each of its Subsidiaries has made or filed all United States
federal and state income and all other tax returns, reports, and declarations required by any jurisdiction to which it is subject
(unless and only to the extent that the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate
for the payment of all unpaid and unreported taxes) and has paid all taxes and other governmental assessments and charges that
are Material in Amount, shown or determined to be due on such returns, reports, and declarations, except those being contested
in good faith and has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent
to the periods to which such returns, reports or declarations apply. Except as set forth on Schedule 4(0), there are no unpaid
taxes in any Material Amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know
of no basis for any such claim.

 

(P)  CERTAIN
TRANSACTIONS. Except as set forth in Schedule 4(P), or disclosed to the Investor by the Company in writing at least ten (10)
days prior to the first Option Notice, and except for arm’s length transactions pursuant to which the Company makes payments
in the ordinary course of business upon terms no less favorable than the Company could obtain from disinterested third parties,
none of the officers, directors, or employees of the Company is presently a party to any transaction with the Company or any of
its Subsidiaries (other than for services as employees, officers and directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring
payments to or from any officer, director, or such employee or, to the knowledge of the Company, any corporation, partnership,
trust, or other entity in which any officer, director, or any such employee has a substantial interest or is an officer, director,
trustee, or partner.

 

(Q)  DILUTIVE
EFFECT. The Company understands and acknowledges that the number of shares of Common Stock issuable upon purchases pursuant
to this Agreement will increase in certain circumstances. The Company’s executive officers and directors have studied and
fully understand the nature of the transactions contemplated by this Agreement and recognize that they have a potential dilutive
effect on the shareholders of the Company. The Board of Directors of the Company has concluded, in its good faith business judgment,
and with full understanding of the implications, that such issuance is in the best interests of the Company. The Company specifically
acknowledges that, subject to such limitations as are expressly set forth in the Equity Line Transaction Documents, its obligation
to issue shares of Common Stock upon purchases pursuant to this Agreement is absolute and unconditional regardless of the dilutive
effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

(R)  [INTENTIONALLY
OMITTED]

 

    	14

    	 

    

 

(S)  NO
GENERAL SOLICITATION. Neither the Company, nor any of its affiliates, nor any person acting on its behalf, has engaged in any
form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of
the Common Stock to be offered as set forth in this Agreement.

 

(T)  NO
BROKERS, FINDERS OR FINANCIAL ADVISORY FEES OR COMMISSIONS. No brokers, finders, or financial advisory fees or commissions
will be payable by the Company, its agents or Subsidiaries, with respect to the transactions contemplated by this Agreement, except
as otherwise disclosed in this Agreement.

 

SECTION 5. COVENANTS OF
THE COMPANY

 

(A)  COMMERCIALLY
REASONABLE EFFORTS. The Company shall use all commercially reasonable efforts to timely satisfy each of the conditions set
forth in Sections 5 and 7 of this Agreement.

 

(B)  BLUE
SKY. The Company shall, at its sole cost and expense, on or before each of the Closing Dates, take such action as the Company
shall reasonably determine is necessary to qualify the Securities for, or obtain exemption for the Securities for, sale to the
Investor at each of the Closings pursuant to this Agreement under applicable securities or “Blue Sky” laws of such
states of the United States, and shall provide evidence of any such action so taken to the Investor on or prior to the Closing
Date.

 

(C)  REPORTING
STATUS. If the Company shall become registered pursuant to Section 12 of the 1934 Act, or if the Company becomes subject to
the 1934 Act reporting requirements pursuant to Section 15(d) of the 1933 Act, the Company shall file all reports required to be
filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate its status, or take an action or fail to take
any action, which would terminate its status as a reporting company under the 1934 Act, until one of the following occurs: (i)
this Agreement terminates pursuant to Section 8 and the Investor has the right to sell all of the Securities without restrictions
pursuant to Rule 144(b) promulgated under the 1933 Act or another applicable exemption, or (ii) the date on which the Investor
has sold all the Securities and this Agreement has been terminated pursuant to Section 8.

 

(D)  USE
OF PROCEEDS. The Company will use the proceeds from the sale of the Shares (excluding amounts paid by the Company for fees
as set forth in Section 10(B)) for general corporate and working capital purposes and acquisitions or assets, businesses or operations
or for other purposes that the Board of Directors, in its good faith deem to be in the best interest of the Company.

 

    	15

    	 

    

 

(E)  FINANCIAL
INFORMATION. If the Company shall become registered pursuant to Section 12 of the 1934 Act, or if the Company becomes subject
to the 1934 Act reporting requirements pursuant to Section 15(d) of the 1933 Act, the Company agrees to make available to the Investor
via EDGAR or other electronic means the following documents and information on the forms set forth: (I) within ten (10) Trading
Days after the filing thereof with the SEC, a copy of its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q, any
Current Reports on Form 8-K and any registration statements or amendments filed pursuant to the 1933 Act; (II) copies of any notices
and other information made available or given to the shareholders of the Company generally, contemporaneously with the making available
or giving thereof to the shareholders; and (III) within ten (10) calendar days of filing or delivery thereof, copies of all documents
filed with, and all correspondence sent to, the Principal Market, any securities exchange or market, or the National Association
of Securities Dealers, Inc., unless such information is material nonpublic information.

 

(F)  RESERVATION
OF SHARES. The Company shall take all action necessary to at all times have authorized, and reserved for the purpose of issuance,
a sufficient number of shares of Common Stock to provide for the issuance of the Securities to the Investor as required hereunder.
In the event that the Company determines that it does not have a sufficient number of authorized shares of Common Stock to reserve
and keep available for issuance as described in this Section 5(F), the Company shall use all commercially reasonable efforts to
increase the number of authorized shares of Common Stock by seeking shareholder approval for the authorization of such additional
shares.

 

(G)  TRANSACTIONS
WITH AFFILIATES. The Company shall not, and shall cause each of its Subsidiaries not to, enter into, amend, modify, or supplement,
or permit any Subsidiary to enter into, amend, modify, or supplement, any agreement, transaction, commitment, or arrangement with
any of its or any Subsidiary’s officers, directors, persons who were officers or directors at any time during the previous
two (2) years, shareholders who beneficially own 5% or more of the Common Stock, or Affiliates
or with any individual related by blood, marriage or adoption to any such individual or with any entity in which any such entity
or individual owns a 5% or more beneficial interest (each a “Related Party”), except for (I) customary employment
arrangements and benefit programs on reasonable terms, (II) any agreement, transaction, commitment, or arrangement on an arms-length
basis on terms no less favorable than terms which would have been obtainable from a disinterested third party other than such
Related Party, or (III) any agreement, transaction, commitment or arrangement which is approved by a majority of the disinterested
directors of the Company. For purposes hereof, any director who is also an officer of the Company or any Subsidiary of the Company
shall not be a disinterested director with respect to any such agreement, transaction, commitment, or arrangement. “Affiliate”
for purposes hereof means, with respect to any person or entity, another person or entity that, directly or indirectly, (I) has
a 5% or more equity interest in that person or entity, (II) has 5% or more common ownership
with that person or entity, (III) controls that person or entity, or (IV) is under common control with that person or entity.
“Control” or “Controls” for purposes hereof means that a person or entity has the power, directly or indirectly,
to conduct or govern the policies of another person or entity.

 

    	16

    	 

    

 

(H)  CORPORATE
EXISTENCE. The Company shall use all commercially reasonable efforts to preserve and continue the corporate existence of the
Company.

 

(I)  ACKNOWLEDGEMENT
OF TERMS. The Company hereby represents and warrants to the Investor that: (i) it is voluntarily entering into this Agreement
of its own freewill, (ii) it is not entering this Agreement under economic duress, (iii) the terms of this Agreement are reasonable
and fair to the Company, and (iv) the Company has had independent legal counsel of its own choosing review this Agreement, advise
the Company with respect to this Agreement, and represent the Company in connection with this Agreement.

 

(J)  REIMBURSEMENT.
If (i) the Investor becomes involved in any capacity in any action, proceeding or investigation brought by any shareholder of the
Company, in connection with or as a result of the consummation of the transactions contemplated by the Equity Line Transaction
Documents, or if the Investor is impleaded in any such action, proceeding or investigation by any person (other than as a result
of a breach of the Investor’s representations and warranties set forth in this Agreement); or (ii) the Investor becomes involved
in any capacity in any action, proceeding or investigation brought by the SEC against or involving the Company or in connection
with or as a result of the consummation of the transaction contemplated by the Equity Line Transaction Documents (other than as
a result of a breach of the Investor’s representations and warranties set forth in this Agreement), or if this Investor is
impleaded in any such action, proceeding or investigation by any person, then in any such case, the Company will reimburse the
Investor for its reasonable legal and other expenses (including the costs of any investigation and preparation) incurred in connection
therewith, as such expenses are incurred. In addition, other than with respect to any matter in which the Investor is a named party,
the Company will pay to the Investor the charges, as reasonably determined by the Investor, for the time of any officers or employees
of the Investor devoted to appearing and preparing to appear as witnesses, assisting in preparation for hearings, trial or retrial
matters, or otherwise with respect to inquiries, hearing, trials, and other proceedings relating to the subject matter of this
Agreement. The reimbursement obligations of the Company under this Section shall be in addition to any liability which the Company
may otherwise have, shall extend upon the same terms and conditions to any affiliates of the Investor that are actually named in
such action, proceeding or investigation, and partners, directors, agents, employees, attorneys, accountants, auditors and controlling
persons (if any), as the case maybe, of Investor and any such affiliate, and shall be binding upon and inure to the benefit of
any successors of the Company, the Investor and any such affiliate and any such person.

 

    	17

    	 

    

 

SECTION
6. CONDITIONS OF THE COMPANY’S OBLIGATION TO SELL.

 

The
obligation hereunder of the Company to issue and sell the Securities to the Investor is further subject to the satisfaction, at
or before each Closing Date, of each of the following conditions set forth below. These conditions are for the Company’s
sole benefit and may be waived by the Company at any time in its sole discretion.

 

(A)  The
Investor shall have executed this Agreement and delivered the same to the Company.

 

(B)  The
Investor shall have delivered to the Company the Purchase Price for the Securities being purchased by the Investor.

 

(C)  The
representations and warranties of the Investor shall be true and correct in all material respects as of the date when made and
as of the applicable Closing Date as though made at that time and the Investor shall have performed, satisfied, and complied in
all material respects with the covenants, agreements, and conditions required by the Equity Line Transaction Documents to be performed,
satisfied, or complied with by the Investor on or before such Closing Date.

 

(D)  No
statute, rule, regulation, executive order, decree, ruling, or injunction shall have been enacted, entered, promulgated, or endorsed
by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated
by this Agreement.

 

SECTION
7. FURTHER CONDITIONS OF THE INVESTOR’S OBLIGATION TO PURCHASE.

 

In
addition to the other conditions set forth in this Agreement and in the other Equity Line Transaction Documents, the obligation
of the Investor hereunder to purchase Shares is subject to the satisfaction, on or before each Closing Date, of each of the following
conditions set forth below. These conditions are for the Investor’s sole benefit and may be waived by the Investor at any
time in its sole discretion (but only in writing).

 

(A)  The
Company shall have executed the Equity Line Transaction Documents and delivered the same to the Investor.

 

(B)  The
Common Stock shall be authorized for quotation on the Principal Market and trading in the Common Stock shall not have been suspended
by the Principal Market or the SEC, at any time beginning on the date hereof and through and including the respective Closing Date
(excluding suspensions of not more than one (1) Trading Day resulting from business announcements by the Company, provided that
such suspensions occur prior to the Investor’s delivery of the Option Notice related to such Closing).

 

    	18

    	 

    

 

(C)  The
representations and warranties of the Company contained in this Agreement and in the other Equity Line Transaction Documents shall
be true and correct as of the date when made and as of the applicable Closing Date as though made at that time and the Company
shall have performed, satisfied and complied with the covenants, agreements, and conditions required by this Agreement and the
other Equity Line Transaction Documents to be performed, satisfied or complied with by the Company on or before such Closing Date.
An officer of the Company shall deliver to the Investor on the Closing Date a certificate certifying that (I) the conditions set
forth in this Section 7(C) have been fulfilled, and (II) the Company shall have performed and complied with all covenants, agreements,
obligations and conditions contained in this Agreement that are required to be performed or complied with by the Company on or
before such Closing Date.

 

(D)  The
Company shall have executed and delivered to the Investor the certificates representing, or have executed electronic book-entry
transfer of, the Securities (in such denominations as the Investor shall request) being purchased by the Investor at such Closing.

 

(E)  The
Board of Directors of the Company shall have adopted resolutions consistent with Section 4(B)(II) above (the “Resolutions”)
and such Resolutions shall not have been amended or rescinded prior to such Closing Date.

 

(F)  No
statute, rule, regulation, executive order, decree, ruling, or injunction shall have been enacted, entered, promulgated, or endorsed
by any court or governmental authority of competent jurisdiction, which prohibits the consummation of any of the transactions contemplated
by this Agreement.

 

SECTION
8. TERMINATION.

 

		A.	This Agreement shall terminate when the Investor has
purchased an aggregate of five million dollars ($5,000,000) in the Common Stock of the Company pursuant to this Agreement.

 

		B.	This Agreement may terminate upon any of the following
events:

 

    	19

    	 

    

 

		(I)	Termination for Default. In the event that either
party commits a material breach of its obligations hereunder, the other party may, at its option, terminate this Agreement by
written notice of termination specifying such material breach; provided, however, that if such default is subject to cure, then
such notice shall be subject to a twenty (20) day cure period from the date thereof, and if the defaulting party cures such default
prior to expiration of such period, termination shall not take place.

 

		(II)	Termination for Insolvency. Either party hereto
may, at its option, upon five (5) days written notice, terminate this Agreement should the other party hereto (i) admit in writing
its inability to pay its debts generally as they become due; (ii) make a general assignment for the benefit of creditors; (iii)
institute proceedings to be adjudicated a voluntary bankrupt, or consent to the filing of a petition of bankruptcy against it;
(iv) be adjudicated by a court of competent jurisdiction as being bankrupt or insolvent; (v) seek reorganization under any bankruptcy
act, or consent to the filing of a petition seeking such reorganization, or (vi) have a decree entered against it by a court of
competent jurisdiction appointing a receiver, liquidator, trustee or assignee in bankruptcy or in insolvency covering all or substantially
all of such party’s property or providing for the liquidation of such party’s property or business affairs.

 

		C.	Survival of Termination. The obligations of the
parties under this Agreement that by their nature would continue beyond expiration, termination or cancellation of this Agreement
(including, without limitation, the representations and warranties, indemnification obligations, confidentiality requirements
and ownership and property rights) shall survive any such expiration, termination or cancellation.

 

    	20

    	 

    

 

SECTION
9. INDEMNIFICATION.

 

		(A)	The Company (in such capacity, an “Indemnitor”)
shall defend, protect, indemnify, and hold harmless the Investor and all of the Investor’s officers, trustees, employees,
counsel, and direct or indirect investors and any of the foregoing person’s agents or other representatives (including,
without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”)
from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities, and damages,
and reasonable expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which
indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified
Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or relating to (I) any misrepresentation or
breach of any representation or warranty made by the Indemnitor or any other certificate, instrument, or document contemplated
hereby or thereby; (II) any breach of any covenant, agreement, or obligation of the Indemnitor contained in the Equity Line Transaction
Documents or any other certificate, instrument, or document contemplated hereby or thereby; or (III) any cause of action, suit,
or claim brought or made against such Indemnitee by a third party and arising out of or resulting from the execution, delivery,
performance, or enforcement of the Equity Line Transaction Documents or any other certificate, instrument or document contemplated
hereby or thereby, except insofar as any such misrepresentation, breach or any untrue statement, alleged untrue statement, omission
or alleged omission is made in reliance upon and in conformity with information furnished to Indemnitor which is specifically
intended for use in the preparation of any such registration statement, preliminary prospectus, prospectus or amendments to the
prospectus. To the extent that the foregoing undertaking by the Indemnitor may be unenforceable for any reason, the Indemnitor
shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible
under applicable law. The indemnity provisions contained herein shall be in addition to any cause of action or similar rights
Indemnitor may have, and any liabilities to which the Indemnitor or the Indemnitees may be subject.

 

		(B)	Promptly after receipt by an Indemnitee under this Section
9 of notice of any action or proceeding (including any governmental action or proceeding) involving an indemnifiable claim, such
Indemnitee shall, if a claim in respect thereof is to be made against Indemnitor under this Section 9, deliver to Indemnitor a
written notice thereof, and Indemnitor shall have the right to participate in, and, to the extent Indemnitor so desires to assume
control of the defense thereof with counsel mutually satisfactory to Indemnitor and Indemnitee; provided, however, that an Indemnitee,
shall have the right to retain its own counsel with the fees and expenses to be paid by Indemnitor, if, in the reasonable opinion
of counsel retained by Indemnitee, the representation by counsel of Indemnitee and Indemnitor would be inappropriate due to actual
or potential differing interests between such Indemnitee and any other party represented by such counsel in such proceeding. Indemnitor
shall pay for only one (1) separate legal counsel for Indemnitee(s), as applicable selected by it. Indemnitee shall cooperate
fully with Indemnitor in connection with any negotiation or defense of any such action or claim by Indemnitor and shall furnish
to Indemnitor all information reasonably available to Indemnitee which relates to such action or claim. Indemnitor shall keep
Indemnitee fully apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. Indemnitor
shall not be liable for any settlement of any action, claim or proceeding affected without its written consent; provided, however,
that Indemnitor shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the consent
of Indemnitee, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such Indemnitee of a release from all liability in respect
to such claim. Following indemnification as provided for hereunder, Indemnitor shall be subrogated to all rights of Indemnitee
with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure
to deliver written notice to Indemnitor within a reasonable time of the commencement of any such action shall not relieve Indemnitor
of any liability to Indemnitee under this Section 9, except to the extent that Indemnitor is prejudiced in its ability to defend
such action.

 

    	21

    	 

    

 

SECTION
10. GOVERNING LAW.

 

(A)  GOVERNING
LAW. All disputes arising under this agreement shall be governed by and interpreted in accordance with the laws of the State
of Maryland, without regard to principles of conflict of laws.

 

(B)  LEGAL
FEES AND MISCELLANEOUS FEES. The Company shall pay the fees and expenses of its own counsel and advisors and all other expenses
incurred by the Company, as well as the reasonable fees and expenses of the Investor’s counsel (which shall not exceed $10,000
without the prior written consent of the Company) and all other reasonable expenses incurred by the Investor, in each case which
are incident to or incurred by it in connection with the negotiation, preparation, execution, delivery, and performance of this
Agreement. Any attorneys’ fees and expenses incurred by either the Company or the Investor relating to the enforcement of
the rights of any party, after the occurrence of any breach of the terms of this Agreement by another party or any default by another
party in respect of the transactions contemplated hereunder, shall be paid on demand by the party which breached the Agreement
and/or defaulted, as the case may be. The Company shall pay all stamp and other taxes and duties levied in connection with the
issuance of any Securities.

 

(C)  COUNTERPARTS.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party; provided, however,
that a .PDF signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and
effect as if the signature were an original signature.

 

(D)  HEADINGS;
SINGULAR/PLURAL. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the
interpretation of, this Agreement. Whenever required by the context of this Agreement, the singular shall include the plural and
masculine shall include the feminine.

 

(E)  SEVERABILITY.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction.

 

    	22

    	 

    

 

(F)  ENTIRE
AGREEMENT; AMENDMENTS. This Agreement is the final agreement between the Company and the Investor with respect to the terms
and conditions set forth herein, and, the terms of this Agreement may not be contradicted by evidence of prior, contemporaneous,
or subsequent oral agreements of the Parties. No provision of this Agreement may be amended other than by an instrument in writing
signed by the Company and the Investor, and no provision hereof may be waived other than by an instrument in writing signed by
the party against whom enforcement is sought. The execution and delivery of the Equity Line Transaction Documents shall not alter
the force and effect of any other agreements between the Parties, and the obligations under those agreements.

 

(G)  NOTICES.
Any notices or other communications required or permitted to be given under the terms of this Agreement must be in writing and
will be deemed to have been delivered (I) upon receipt, when delivered personally; (II) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (III) one (1)
day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive
the same. The addresses and facsimile numbers for such communications shall be:

 

If to the Company:

 

Vaccinogen,
Inc.

5300
Westview Drive, Suite 406

Frederick,
MD 21703

Fax:
(301) 631-2970

 

with
a copy (which shall not constitute notice) to:

 

Indeglia
& Carney

1900
Main Street, Suite 300

Irvine,
CA 92614

marc@indegliacarney.com

Fax:
(949) 861-3324

 

If to the Investor:

 

The
Abell Foundation, Inc.

111
South Calvert Street, Suite 2300

Baltimore,
MD 21202

Fax:

 

    	23

    	 

    

 

with
a copy (which shall not constitute notice) to:

 

Hogan
Lovells US LLP

100
International Drive, Suite 2000

Baltimore,
MD 21202

Attn:
Kevin G. Gralley, Esq.

kevin.gralley@hoganlovells.com

Fax:
(410) 659-2701

 

Each
party shall provide five (5) days prior written notice to the other party of any change in address, facsimile number, or e-mail
address.

 

(H)  NO
ASSIGNMENT. This Agreement may not be assigned.

 

(I)  NO
THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit of the parties hereto and is not for the benefit of,
nor may any provision hereof be enforced by, any other person, except that the Company acknowledges that the rights of the Investor
may be enforced by its general partner.

 

(J)  SURVIVAL.
The representations and warranties of the Company and the Investor contained in Sections 2 and 3, the agreements and covenants
set forth in Sections 4 and 5, and the indemnification provisions set forth in Section 9, shall survive each of the Closings and
the termination of this Agreement.

 

(K)  PUBLICITY.
The Company and the Investor shall consult with each other in issuing any press releases or otherwise making public statements
with respect to the transactions contemplated hereby and no party shall issue any such press release or otherwise make any such
public statement without the prior consent of the other party, which consent shall not be unreasonably withheld or delayed, except
that no prior consent shall be required if such disclosure is required by law, in which such case the disclosing party shall provide
the other party with prior notice of such public statement. Notwithstanding the foregoing, the Company shall not publicly disclose
the name of the Investor without the prior consent of the Investor, except to the extent required by law. The Investor acknowledges
that this Agreement and all or part of the Equity Line Transaction Documents may be deemed to be “material contracts”
as that term is defined by Item 601(b)(10) of Regulation S-K, and that the Company may therefore be required to file such documents
as exhibits to reports or registration statements filed under the 1933 Act or the 1934 Act. The Investor further agrees that the
status of such documents and materials as material contracts shall be determined solely by the Company, in consultation with its
counsel.

 

(L)  FURTHER
ASSURANCES. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments, and documents, as the other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

    	24

    	 

    

 

(M)  NO
STRICT CONSTRUCTION. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party, as the parties mutually agree that
each has had a full and fair opportunity to review this Agreement and seek the advice of counsel on it. The normal rule that ambiguities
shall be interpreted against the drafting party shall not apply in the instant case.

 

(N)  REMEDIES.
The Investor shall have all rights and remedies set forth in this Agreement and the other Equity Line Transaction Documents and
all rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights
which the Investor has by law. Any person having any rights under any provision of this Agreement shall be entitled to enforce
such rights specifically (without posting a bond or other security), to recover damages by reason of any default or breach of any
provision of this Agreement, including the recovery of reasonable attorney’s fees and costs, and to exercise all other rights
granted by law.

 

(O)  PAYMENT
SET ASIDE. To the extent that the Company makes a payment or payments to the Investor hereunder or under any of the other Equity
Line Transaction Documents, or the Investor enforces or exercises its rights hereunder or thereunder, and such payment or payments
or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company,
a trustee, receiver or any other person under any law (including, without limitation, any bankruptcy law, state or federal law,
common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement
or setoff had not occurred.

 

SECTION
11. NON-DISCLOSURE OF NON-PUBLIC INFORMATION.

 

(A)  Once
the Company has secured, initiated, and maintained the listing or quotation of the Shares on the Principal Market and each other
national securities exchange and automated quotation system, the Company shall not disclose material non-public information to
the Investor, its advisors, or its representatives.

 

 

    	25

    	 

    

 

(B)  Nothing
herein shall require the Company, once it has secured, initiated, and maintained the listing of the Shares on the Principal
Market and each other national securities exchange and automated quotation system, to disclose material non-public
information to the Investor or its advisors or representatives, and the Company represents that it does not disseminate
material non-public information to any investors who purchase stock in the Company in a public offering, to money managers or
to securities analysts. Nothing contained in this Section 13 shall be construed to mean that such persons or entities other
than the Investor (without the written consent of the Investor prior to disclosure of such information) may not obtain
material non-public information in the course of conducting due diligence in accordance with the terms of this Agreement.

 

 

[Remainder
of page intentionally left blank.]

 

    	26

    	 

    

 

SIGNATURE
PAGE OF INVESTMENT AGREEMENT

 

Your
signature on this Signature Page evidences your agreement to be bound by the terms and conditions of the Investment Agreement as
of the date first written above.

 

The
undersigned signatory hereby certifies that he has read and understands the Investment Agreement, and the representations made
by the undersigned in this Investment Agreement are true and accurate, and agrees to be bound by its terms.

 

	THE ABELL FOUNDATION, INC.	 
	 	 	 
	By:	/s/ Robert C. Embry, Jr.	 
	 	Robert C. Embry, Jr.	 
	 	President	 
	 	 	 
	VACCINOGEN, INC.	 
	 	 	 
	By:	/s/ Andrew L. Tussing	 
	 	Andrew L. Tussing	 
	 	President & Chief Operating Officer	 
	 	 	 
	By:	/s/ Michael G.
    Hanna, Jr.	 
	 	Michael G. Hanna, Jr., Ph.D.	 
	 	Chairman &  Chief Executive Officer	 

 

    	27

    	 

    

 

LIST
OF EXHIBITS

 

	EXHIBIT A	Put Notice

 

    	28

    	 

    

 

EXHIBIT A

 

Date:

RE:
Option Notice Number ___

 

Dear
[______________________],

 

This
is to inform you that as of today, The Abell Foundation, Inc., a Maryland nonstock corporation (the “Investor”), hereby
elects to exercise its right pursuant to the Investment Agreement to require Vaccinogen, Inc. to sell shares of its common stock.
The Investor hereby certifies the following:

 

The
amount of this option is $_______________.

 

	Regards,

 

		 
	Robert
    C. Embry, Jr. 	 
	President	 

 

    	29REGISTRATION RIGHTS AGREEMENT

 

THIS
REGISTRATION RIGHTS AGREEMENT (hereinafter referred to as the “Agreement”), dated July 18, 2012 by and between
Vaccinogen, Inc., a Maryland Corporation (hereinafter referred to as the “Company”) and Kodiak Capital Group, LLC,
a Delaware Limited Liability Company, with its principal office at 260 Newport Center Drive, Suite 100, Newport Beach CA 92660
(hereinafter referred to as the “Investor”).

 

WHEREAS,
in connection with the Investment Agreement by and between the Company and the Investor of equal date as the Agreement
hereto (the “Investment Agreement”), the Company has agreed to issue and sell to the Investor an indeterminate number
of shares of the Company’s Common Stock, $0.0001 par value per share (the “Common Stock”), to be purchased pursuant
to the terms and subject to the conditions set forth in the Investment Agreement, which is hereby incorporated by reference; and

 

WHEREAS,
to induce the Investor to execute and deliver the Investment Agreement, the Company has agreed to provide certain registration
rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute
(collectively, the “1933 Act”), and applicable state securities laws, with respect to the shares of Common Stock issuable
pursuant to the Investment Agreement.

 

NOW
THEREFORE, in consideration of the foregoing promises and the mutual covenants contained hereinafter and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Investor hereby agree
as follows:

 

Section 1.  DEFINITIONS.

 

As used in this Agreement, the following terms shall have the
following meanings:

 

“Effective
Date” means the date that the Registration Statement is filed with the SEC.

 

“Execution
Date” means the date of this Agreement set forth above.

 

“Investor”
means Kodiak Capital Group, LLC, a Delaware limited liability company.

 

“Person”
means a corporation, a limited liability company, an association, a partnership, an organization, a business, an individual, a
governmental or political subdivision thereof or a governmental agency.

 

“Principal
Market” shall mean the American Stock Exchange, Inc., the National Association of Securities Dealers, Inc. Over-the-Counter
Bulletin Board, the NASDAQ National Market System or the NASDAQ SmallCap Market, whichever is the principal market on which the
Common Stock will be listed pursuant to the Company’s plans to become a fully-reporting publicly-listed Company on a Principal
Market.

 

    	1

    	 

    

 

“Register,”
“Registered,” and “Registration”
refer to the Registration effected by preparing and filing one (1) or more Registration Statements in compliance with the 1933
Act and pursuant to Rule 415 under the 1933 Act or any successor rule providing for offering securities on a continuous basis (hereinafter
referred to as “Rule 415”), and the declaration
or ordering of effectiveness of such Registration Statement(s) by the United States Securities and Exchange Commission (hereinafter
referred to as the “SEC”).

 

“Registrable
Securities” means (i) the shares of Common
Stock issued or issuable pursuant to the Investment Agreement, and (ii)
any shares of capital stock issued or issuable with respect to such shares of Common Stock, if any, as a result of any stock split,
stock dividend, recapitalization, exchange, or similar event or otherwise, which have not been (x)
included in the Registration Statement that has been declared effective by the SEC, or (y)
sold under circumstances meeting all of the applicable conditions of Rule 144 (or any similar provision then in force) under the
1933 Act.

 

“Registration
Statement” means the registration statement or statements of the Company filed under the 1933 Act covering the
Registrable Securities.

 

All capitalized terms used in this Agreement
and not otherwise defined herein shall have the same meaning ascribed to them as in the Investment Agreement.

 

Section
2.  REGISTRATION.

 

(a)
 The Company shall use commercially reasonable efforts to, within ninety (90) days after the date of this Agreement, file
with the SEC the Registration Statement or Registration Statements (as is necessary) on Form S-1 (or, if such form is unavailable
for such a registration, on such other form as is available for such registration), covering the resale of all of the Registrable
Securities, which Registration Statement(s) shall state that, in accordance with Rule 416 promulgated under the 1933 Act, such
Registration Statement also covers such indeterminate number of additional shares of Common Stock as may become issuable upon stock
splits, stock dividends or similar transactions.  The Company shall initially register for resale not less than 5,000,000
shares of Common Stock which would be issuable on the date preceding the filing of the Registration Statement based on the closing
bid price of the Company’s Common Stock on such date and the amount reasonably calculated that represents Common Stock issuable
to other parties as set forth in the Investment Agreement except to the extent that the SEC requires the share amount to be reduced
as a condition of effectiveness.

 

(b)
 The Company shall use all commercially reasonable efforts to have the Registration Statement(s) declared effective by the
SEC within one hundred twenty (120) calendar days after the Execution Date.

 

(c)
 The Company agrees not to include any other securities in the Registration Statement covering the Registrable Securities
without the Investor’s prior written consent, which the Investor may withhold in its sole discretion. Furthermore, the Company
agrees that it will not file any other Registration Statement for other securities until thirty calendar days after the Registration
Statement for the Registrable Securities is declared effective by the SEC.

 

    	2

    	 

    

 

Section
3.  RELATED OBLIGATIONS.

 

At such time as the Company is obligated
to prepare and file the Registration Statement with the SEC pursuant to Section 2(a), the Company will use commercially reasonable
efforts to effectuate the registration of the Registrable Securities in accordance with the intended method of disposition thereof
and, with respect thereto, the Company shall have the following obligations:

 

(a)
 The Company shall use all commercially reasonable efforts to cause such Registration Statement relating to the Registrable
Securities to become effective within one hundred twenty (120) days after the Execution Date and shall keep such Registration Statement
effective until the earlier to occur of  the date on which (A)
the Investor shall have sold all the Registrable Securities; or (B)
the Company has no right to Put to the Investor any additional shares of Common Stock under the Investment Agreement (hereinafter
referred to as the “Registration Period”).  The
Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any
untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements
therein, in light of the circumstances in which they were made, not misleading. The Company shall use all commercially reasonable
efforts to respond to all SEC comments within fifteen (15) business days from receipt of such comments by the Company. The Company
shall use all commercially reasonable efforts to cause the Registration Statement relating to the Registrable Securities to become
effective no later than five (5) business days after notice from the SEC that the Registration Statement may be declared effective.
 The Investor agrees to provide all information which it is required by law to provide to the Company, including, without
limitation, the intended method of disposition of the Registrable Securities, and the Company’s obligations set forth above
shall be conditioned on the receipt of such information.

 

(b)
 The Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to
the Registration Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed
pursuant to Rule 424 promulgated under the 1933 Act, as may be necessary to keep such Registration Statement effective during the
Registration Period, and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all
Registrable Securities of the Company covered by such Registration Statement until such time as all of such Registrable Securities
shall have been disposed of in accordance with the intended methods of disposition by the Investor thereof as set forth in such
Registration Statement.  In the event the number of shares of Common Stock covered by the Registration Statement filed pursuant
to this Agreement is at any time insufficient to cover all of the Registrable Securities, the Company shall amend such Registration
Statement, or file a new Registration Statement (on the short form available therefor, if applicable), or both, so as to cover
all of the Registrable Securities, in each case, as soon as practicable, but in any event within thirty (30) calendar days after
the necessity therefor arises (based on the then Purchase Price of the Common Stock and other relevant factors on which the Company
reasonably elects to rely), assuming the Company has sufficient authorized shares at that time, and if it does not, within thirty
(30) calendar days after such shares are authorized.  The Company shall use commercially reasonable efforts to cause such
amendment and/or new Registration Statement to become effective as soon as practicable following the filing thereof.

 

    	3

    	 

    

 

(c)
 The Company shall make available to the Investor whose Registrable Securities are included in any Registration Statement
and its legal counsel without charge:

 

		(i)	promptly after the same is prepared and filed with the SEC at least one (1) copy of such Registration Statement and any amendment(s)
thereto, including financial statements and schedules, all documents incorporated therein by reference and all exhibits, the prospectus
included in such Registration Statement (including each preliminary prospectus) and, with regards to such Registration Statement(s),
any correspondence by or on behalf of the Company to the SEC or the staff of the SEC and any correspondence from the SEC or the
staff of the SEC to the Company or its representatives; and

 

		(ii)	upon the effectiveness of any Registration Statement, the Company shall make available copies of the prospectus, via EDGAR,
included in such Registration Statement and all amendments and supplements thereto; and

 

		(iii)	such other documents, including copies of any preliminary or final prospectus, as the Investor may reasonably request from
time to time in order to facilitate the disposition of the Registrable Securities.

 

(d)
 The Company shall use commercially reasonable efforts to:

 

		(i)	register and qualify the Registrable Securities covered by the Registration Statement under such other securities or “blue
sky” laws of such states in the United States as the Investor reasonably requests;

 

		(ii)	prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations
and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period;

 

		(iii)	take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during
the Registration Period, and

 

		(iv)	take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions;
provided, however, that the Company shall not be required in connection
therewith or as a condition thereto to do any of the following:

 

		a.	qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d), or

		b.	subject itself to general taxation in any such jurisdiction.  

 

    	4

    	 

    

 

The Company shall promptly notify the Investor who holds Registrable
Securities of the receipt by the Company of any notification with respect to the suspension of the registration or qualification
of any of the Registrable Securities for sale under the securities or “blue sky” laws of any jurisdiction in the United
States or its receipt of actual notice of the initiation or threatening of any proceeding for such purpose.

 

(e)
 As promptly as practicable after becoming aware of such event, the Company shall notify the Investor in writing of the happening
of any event as a result of which the prospectus included in the Registration Statement, as then in effect, includes an untrue
statement of a material fact or omission to state a material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading (hereinafter referred to as “Registration
Default”) and use all diligent efforts to promptly prepare a supplement or amendment to such Registration Statement
and take any other necessary steps to cure the Registration Default (which, if such Registration Statement is on Form S-3, may
consist of a document to be filed by the Company with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the 1934 Act (as
defined below) and to be incorporated by reference in the prospectus) to correct such untrue statement or omission, and make available
copies of such supplement or amendment to the Investor. The Company shall also promptly notify the Investor of the following:

 

		(i)	when a prospectus or any prospectus supplement or post-effective amendment has been filed, and when the Registration Statement
or any post-effective amendment has become effective;

 

		(ii)	of any request by the SEC for amendments or supplements to the Registration Statement or related prospectus or related information;

 

		(iii)	of the Company’s reasonable determination that a post-effective amendment to the Registration Statement would be appropriate;

 

		(iv)	in the event the Registration Statement is no longer effective; and / or

 

		(v)	if the Registration Statement is stale as a result of the Company’s failure to timely file its financials or otherwise.

 

If a Registration Default occurs during the period commencing
on the Put Notice Date and ending on the Closing Date, the Company acknowledges that its failure to cure the Registration Default
within three (3) business days will cause the Investor to suffer damages in an amount that will be difficult to ascertain.  Accordingly,
the parties agree that it is appropriate to include a provision for liquidated damages.  The parties acknowledge and agree
that the liquidated damages provision set forth in the Investment Agreement represents the parties’ good faith effort to
quantify such damages and, as such, agree that the form and amount of such liquidated damages are reasonable and will not constitute
a penalty.  It is the intention of the parties that interest payable under any of the terms of this Agreement shall not exceed
the maximum amount permitted under any applicable law. If a law, which applies to this Agreement, which sets the maximum interest
amount, is finally interpreted so that the interest in connection with this Agreement exceeds the permitted limits, then: (1)
any such interest shall be reduced by the amount necessary to reduce the interest to the permitted limit; and (2)
any sums already collected (if any) from the Company which exceed the permitted limits will be refunded to the Company.  The
Investor may choose to make this refund by reducing the amount that the Company owes under this Agreement or by making a direct
payment to the Company.  If a refund reduces the amount that the Company owes the Investor, the reduction will be treated
as a partial payment.

 

    	5

    	 

    

 

(f)
 The Company shall use all commercially reasonable efforts to prevent the issuance of any stop order or other  suspension
of effectiveness of the Registration Statement, or the suspension of the qualification of any of the Registrable Securities for
sale in any jurisdiction and, if such an order or suspension is issued,  to obtain the withdrawal of such order or suspension
at the earliest possible moment and to notify the Investor holding Registrable Securities being sold of the issuance of such order
and the  resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding concerning the effectiveness
of the Registration Statement.

 

(g)
 The Company shall permit the Investor and one (1) legal counsel, designated by the Investor, to review and comment upon the
Registration Statement and all amendments and supplements thereto at least one (1) calendar day prior to their filing with the
SEC.  However, any postponement of a filing of a Registration Statement or any postponement of a request for acceleration
or any postponement of the Effective Date or effectiveness of a Registration Statement by written request of the Investor (collectively,
the “Investor’s Delay”) shall not act to trigger any penalty of any kind or any cash amount due or any in-kind
amount due the Investor from the Company under any and all agreements of any nature or kind between the Company and the Investor.
 The event(s) of an Investor’s Delay shall act to suspend all obligations of any kind or nature of the Company under
any and all agreements of any nature or kind between the Company and the Investor.   

 

(h)
 At the request of the Investor, the Company’s counsel shall furnish to the Investor an opinion letter in form and substance
reasonable and customary for transactions of this nature confirming the effectiveness of the registration statement.  Such
opinion letter shall be issued as of the date of the effectiveness of the registration statement and be in a form suitable to the
Investor. 

 

(i)
 The Company shall hold in confidence and not make any disclosure of information concerning the Investor unless:

 

		(i)	disclosure of such information is necessary to comply with federal or state securities laws;

 

		(ii)	disclosure of such information is necessary in order to obtain effectiveness of a Registration Statement;

 

		(iii)	disclosure of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement;

 

    	6

    	 

    

 

		(iv)	the release of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental
body of competent jurisdiction;

 

		(v)	such information has been made generally available to the public other than by disclosure in violation of this Agreement or
any other agreement; or

 

		(vi)	the Investor has consented to such disclosure.

 

The Company agrees that it shall, upon learning that disclosure
of such information concerning the Investor is sought in or by a court or governmental body of competent jurisdiction or through
other means, give prompt written notice to the Investor and allow the Investor, at the Investor’s expense, to undertake appropriate
action to prevent disclosure of, or to obtain a protective order covering such information.

 

(j)
 The Company shall use all commercially reasonable efforts to maintain designation and quotation of all the Registrable Securities
covered by any Registration Statement on the Principal Market.   If, despite the Company’s commercially reasonable efforts,
the Company is unsuccessful in satisfying the preceding sentence, it shall use commercially reasonable efforts to cause all the
Registrable Securities covered by any Registration Statement to be listed on each other national securities exchange and automated
quotation system, if any, on which securities of the same class or series issued by the Company are then listed, if any, if the
listing of such Registrable Securities is then permitted under the rules of such exchange or system.  The Company shall pay
all fees and expenses in connection with satisfying its obligation under this Section 3(j).

 

(k)
 The Company or its designee shall cooperate with the Investor to facilitate the prompt preparation and delivery of certificates
representing the Registrable Securities to be offered pursuant to the Registration Statement and enable such certificates to be
in such denominations or amounts, as the case may be, as the Investor may reasonably request (and after any sales of such Registrable
Securities by the Investor, such certificates not bearing restrictive legend).

 

(l)
 RESERVED.

 

(m)
 If requested by the Investor, the Company shall:

 

		(i)	as soon as reasonably practical, incorporate in a prospectus supplement or post-effective amendment such information as the
Investor reasonably determines should be included therein relating to the sale and distribution of Registrable Securities, including,
without limitation, information with respect to the offering of the Registrable Securities to be sold in such offering;

 

    	7

    	 

    

 

		(ii)	make all required filings of such prospectus supplement or post-effective amendment as soon as reasonably possible after being
notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and

 

		(iii)	supplement or make amendments to any Registration Statement if reasonably requested by the Investor.

 

(n)
 The Company shall use all commercially reasonable efforts to cause the Registrable Securities covered by the applicable Registration
Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to facilitate
the disposition of such Registrable Securities.

 

(o)
 The Company shall otherwise use all commercially reasonable efforts to comply with all applicable rules and regulations of
the SEC in connection with any registration hereunder.

 

(p)
 Within one (1) business day after the Registration Statement which includes Registrable Securities is declared effective
by the SEC, the Company shall deliver to the transfer agent for such Registrable Securities, with copies to the Investor, confirmation
that such Registration Statement has been declared effective by the SEC.

 

(q)
 The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Investor of Registrable
Securities pursuant to the Registration Statement.

 

Section 4.  OBLIGATIONS OF THE INVESTOR.

 

(a)
 At least five (5) calendar days prior to the first anticipated filing date of the Registration Statement, the Company shall
notify the Investor in writing of the information the Company requires from the Investor for the Registration Statement.  It
shall be a condition precedent to the obligations of the Company to complete the Registration pursuant to this Agreement with respect
to the Registrable Securities, and the Investor agrees to furnish to the Company, that information regarding itself, the Registrable
Securities, and the intended method of disposition of the Registrable Securities as shall reasonably be required to effect the
registration of the resale of such Registrable Securities, and the Investor shall execute such documents in connection with such
registration as the Company may reasonably request.  The Investor covenants and agrees that, in connection with any sale of
Registrable Securities by it pursuant to the Registration Statement, it shall comply with the “Plan of Distribution”
section of the then current prospectus relating to such Registration Statement.

 

(b)
 The Investor, by its acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested
by the Company in connection with the preparation and filing of any Registration Statement hereunder, unless the Investor has notified
the Company in writing of an election to exclude all of the Investor’s Registrable Securities from such Registration Statement.

 

    	8

    	 

    

 

(c)
 The Investor agrees that, upon receipt of written notice from the Company of the happening of any event of the kind described
in Section 3(f) or the first sentence of Section 3(e), the Investor will immediately discontinue disposition of Registrable Securities
pursuant to any Registration Statement(s) covering the resale of such Registrable Securities until the Investor’s receipt
of the copies of the supplemented or amended prospectus contemplated by Section 3(f) or the first sentence of Section 3(e).

 

Section
5.  EXPENSES OF REGISTRATION.

 

All reasonable expenses, other than underwriting
discounts and commissions and other than as set forth in the Investment Agreement, incurred in connection with or in any way related
to registrations including comments, filings, or qualifications pursuant to Sections 2 and Section 3, including, without limitation,
all registration, listing, and qualifications fees, printing and accounting fees, and fees and disbursements of counsel for the
Company shall be paid by the Company.

 

Section
6.  INDEMNIFICATION.

 

In the event any Registrable Securities
are included in the Registration Statement under this Agreement:

 

(a)
 To the fullest extent permitted by law, the Company, under this Agreement, will, and hereby does, indemnify, hold harmless,
and defend the Investor who holds Registrable Securities, the directors, officers, partners, employees, counsel, agents, representatives
of, and each Person, if any, who controls, the Investor within the meaning of the 1933 Act or the Securities Exchange Act of 1934,
as amended (hereinafter referred to as the “1934 Act”) (each, hereinafter referred to as an “Indemnified Person”),
against any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, attorneys’ fees, amounts paid
in settlement or expenses, joint or several (collectively, hereinafter referred to as “Claims”), incurred in investigating,
preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before
any court or governmental, administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or
not an indemnified party is or may be a party thereto (hereinafter referred to as “Indemnified
Damages”), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced
or threatened, in respect thereof) arise out of or are based upon:

 

		(i)	Any untrue statement or alleged untrue statement of a material fact in the Registration Statement or any post-effective amendment
thereto or in any filing made in connection with the qualification of the offering under the securities or other “blue sky”
laws of any jurisdiction in which the Investor has requested in writing that the Company register or qualify the Shares (hereinafter
referred to as “Blue Sky Filing”), or the omission or alleged omission to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under which the statements therein were made,
not misleading;

 

    	9

    	 

    

 

		(ii)	Any untrue statement or alleged untrue statement of a material fact contained in the final prospectus (as amended or supplemented,
if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein
any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein
were made, not misleading, or

 

		(iii)	Any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law, including, without limitation,
any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant
to the Registration Statement (the matters in the foregoing clauses (i) through (iii) being, collectively, hereinafter referred
to as “Violations”).  

 

Subject to the restrictions set forth in Section 6(c), the Company
shall reimburse the Investor and each such controlling person, promptly as such expenses are incurred and are due and payable,
for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such
Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a):

 

		1)	Shall not apply to a Claim arising out of or based upon a Violation which is due to the inclusion in the Registration Statement
of the information furnished to the Company by any Indemnified Person expressly for use in connection with the preparation of the
Registration Statement or any such amendment thereof or supplement thereto;

 

		2)	Shall not be available to the extent such Claim is based on:

 

		a.	A failure of the Investor to deliver or to cause to be delivered the prospectus made available by the Company; or

 

		b.	The Indemnified Person’s use of an incorrect prospectus despite being promptly advised in advance by the Company in writing
not to use such incorrect prospectus; or 

 

		c.	Any claims based on the manner of sale of the Registrable Securities by the Investor or of the Investor’s failure to
register as a dealer under applicable securities laws; or

 

		d.	Any omission of the Investor to notify the Company of any material fact that should be stated in the Registration Statement
or prospectus relating to the Investor or the manner of sale; or

 

		e.	Any amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company,
which consent shall not be unreasonably withheld. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Indemnified Person and shall survive the resale of the Registrable Securities by the Investor pursuant
to the Registration Statement. 

 

    	10

    	 

    

 

(b)
 In connection with any Registration Statement in which Investor is participating, the Investor agrees to severally and jointly
indemnify, hold harmless and defend, to the  same extent and in the same manner as is set forth in Section 6(a), the Company,
each of its directors, each of its officers who signs the Registration Statement, each Person, if any, who controls the Company
within the meaning of the 1933 Act or the 1934 Act and the Company’s agents (collectively and together with an Indemnified
Person, hereinafter referred to as an “Indemnified Party”), against any Claim or Indemnified Damages to which any of
them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified Damages arise out
of or are based upon any Violation, in each case to the extent, and only to the extent, that such Violation is due to the inclusion
in the Registration Statement of the written information furnished to the Company by the Investor expressly for use in connection
with such Registration Statement. Subject to Section 6(c), the Investor will reimburse any legal or other expenses reasonably incurred
by them in connection with investigating or defending any such Claim; provided,
however, that the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained
in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written
consent of the Investor, which consent shall not be unreasonably withheld; provided, further, however, that the Investor shall
only be liable under this Section 6(b) for  that amount of a Claim or Indemnified Damages as does not exceed the net proceeds
to such Investor as a result of the sale of Registrable Securities pursuant to such Registration Statement.  Such indemnity
shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall
survive the resale of the Registrable Securities by the Investor pursuant to the Registration Statement. Notwithstanding anything
to the contrary contained herein, the indemnification agreement contained in this Section 6(b) with respect to any preliminary
prospectus shall not inure to the benefit of any Indemnified Party if the untrue statement or omission of material fact contained
in the preliminary prospectus were corrected on a timely basis in the prospectus, as then amended or supplemented.  This indemnification
provision shall apply separately to each Investor and liability hereunder shall not be joint and several. 

 

    	11

    	 

    

 

(c)
 Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of
any action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified
Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying
party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to
the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of
the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified
Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its
own counsel with the fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained
by the Indemnified Person or Indemnified Party, the representation by counsel of the Indemnified Person or Indemnified Party and
the indemnifying party would be inappropriate due to actual or potential differing interests between such Indemnified Person or
Indemnified Party and any other party represented by such counsel in such proceeding.  The indemnifying party shall pay for
only one (1) separate legal counsel for the Indemnified Persons or the Indemnified Parties, as applicable, and such counsel shall
be selected by the Investor, if the Investor is entitled to indemnification hereunder, or the Company, if the Company is entitled
to indemnification hereunder, as applicable.  The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying
party in connection with any negotiation or defense of any such action or Claim by the indemnifying party and shall furnish to
the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such
action or Claim.  The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times
as to the status of the defense or any settlement negotiations with respect thereto.  No indemnifying party shall be liable
for any settlement of any action, claim or proceeding affected without its written consent, provided, however, that the indemnifying
party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the consent of the
Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which
does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified
Person of a release from all liability in respect to such Claim. Following indemnification as provided for hereunder, the indemnifying
party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms,
or corporations relating to the matter for which indemnification has been made.  The failure to deliver written notice to
the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party
of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying
party is prejudiced in its ability to defend such action.

 

(d)
 The indemnity agreements contained herein shall be in addition to (i)
any cause of action or similar right of the Indemnified Party or Indemnified Person against the indemnifying party or others, and
(ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

Section 7.  CONTRIBUTION.

 

To the extent any indemnification by an
indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided,
however, that: (i) no contribution shall be
made under circumstances where the maker would not have been liable for indemnification under the fault standards set forth in
Section 6; (ii) no seller of Registrable Securities guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any
seller of Registrable Securities who was not guilty of fraudulent misrepresentation; and (iii)
contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received
by such seller from the sale of such Registrable Securities.

 

    	12

    	 

    

 

Section
8. REPORTS UNDER THE 1934 ACT.

 

With a view to making available to the Investor
the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation of the SEC that may at any time
permit the Investor to sell securities of the Company to the public without registration (“Rule 144”), provided that
the Investor holds any Registrable Securities are eligible for resale under Rule 144(b), the Company agrees to:

 

		(a)	Make and keep public information available, as those terms are understood and defined in Rule 144;

 

		(b)	File with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934
Act so long as the Company remains subject to such requirements (it being understood that nothing herein shall limit the Company’s
obligations under Section 5(c) of the Investment Agreement) and the filing of such reports and other documents is required for
the applicable provisions of Rule 144; and

 

		(c)	Furnish to the Investor, promptly upon request:

 

		a.	A written statement by the Company that it has complied with the reporting requirements of Rule 144, the 1933 Act, and the
1934 Act,

 

		b.	A copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company,
and

 

		c.	such other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule 144 without
registration.

 

Section 9.  NO ASSIGNMENT OF REGISTRATION RIGHTS.

 

The rights and obligations under this Agreement
shall not be assignable.

 

Section 10.  AMENDMENT OF REGISTRATION RIGHTS.

 

The provisions of this Agreement may be
amended only with the written consent of the Company and Investor.  

 

Section 11.  MISCELLANEOUS.

 

(a)
 Any notices or other communications required or permitted to be given under the terms of this Agreement that must
be in writing will be deemed to have been delivered (i)
upon receipt, when delivered personally; (ii) upon receipt,
when sent by facsimile (provided a confirmation of transmission is mechanically or electronically generated and kept on file by
the sending party); or (iii) one (1) day after deposit with
a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same.  The
addresses and facsimile numbers for such communications shall be:

 

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If to the Company:   

    

Vaccinogen, Inc.

5300 Westview Drive, Suite 406

Frederick, MD 21703

Fax:   (301) 631-2970

 

with a copy to:

 

Indeglia & Carney

1900 Main Street, Suite 300

Irvine, CA 92614

marc@indegliacarney.com

Fax:   (949) 861-3324

 

If to the Investor:

 

Kodiak Capital Group, LLC

260 Newport Center Drive, Suite 100

Newport Beach, CA 92660

ryan@kodiak-capital.com

 

Each party shall provide five (5) business days prior notice
to the other party of any change in address, phone number, facsimile number, or e-mail address.

 

(b)
 Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising
such right or remedy, shall not operate as a waiver thereof.

(c)
  This Agreement and the Equity Line Transaction Documents constitute the entire agreement among the parties hereto with
respect to the subject matter hereof and thereof.  There are no restrictions, promises, warranties, or undertakings, other
than those set forth or referred to herein and therein.

 

(d)
 This Agreement and the Equity Line Transaction Documents supersede all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof and thereof.

 

(e)
 The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the
meaning hereof.  Whenever required by the context of this Agreement, the singular shall include the plural and masculine shall
include the feminine.  This Agreement shall not be construed as if it had been prepared by one of the parties, but rather
as if all the parties had prepared the same.

 

    	14

    	 

    

 

(f)
 This Agreement may be executed in two or more identical counterparts, each of which shall be deemed an original but all of
which shall constitute one and the same agreement.  This Agreement, once executed by a party, may be delivered to the other
party hereto by .PDF of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

(g)
 Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and
deliver all such other agreements, certificates, instruments, and documents, as the other party may reasonably request in order
to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(h)
In case any provision of this Agreement is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid
or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent
possible, and the validity and enforceability of the remaining provisions of this Agreement will not in any way be affected or
impaired thereby. The normal rule of construction and contractual interpretation that ambiguities should be held against the drafting
party is not operative under this agreement.

 

Section 12.  GOVERNING LAW

 

All disputes arising under this agreement shall be governed
by and interpreted in accordance with the laws of the State of New York without regard to principles of conflict of laws.  

 

[Remainder of page intentionally left blank.]

 

    	15

    	 

    

 

SIGNATURE PAGE OF REGISTRATION RIGHTS AGREEMENT

 

Your signature on this Signature Page evidences your agreement
to be bound by the terms and conditions of the Investment Agreement and the Registration Rights Agreement as of the date first
written above. The undersigned signatory hereby certifies that he has read and understands the Registration Rights Agreement, and
the representations made by the undersigned in this Registration Rights Agreement are true and accurate, and agrees to be bound
by its terms.

 

	KODIAK CAPITAL GROUP, LLC	 
	 	 	 
	By:	/s/ Ryan C. Hodson	 
	 	Ryan C. Hodson	 
	 	Managing Director	 
	 	 	 
	VACCINOGEN, INC.	 
	 	 	 
	By:	/s/ Andrew L. Tussing	 
	 	Andrew L. Tussing	 
	 	President & Chief Operating Officer	 
	 	 	 
	By:	/s/ Michael G. Hanna, Jr., Ph.D.	 
	 	Michael G. Hanna, Jr., Ph.D.	 
	 	Chairman & Interim Chief Executive Officer	 

 

    	16

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