Document:

COMMON
      STOCKHOLDERS AGREEMENT

     

    This
      COMMON
      STOCKHOLDERS AGREEMENT
      (this
“Agreement”)
      is
      made and entered into as of July 1, 2004, by and among Cleveland BioLabs, Inc.,
      a Delaware corporation (the “Company”)
      and
      each Person (as defined below) who holds Common Stock (as defined below) and
      any
      other Person who becomes a stockholder of the Company, from time to time, and
      executes an Instrument of Accession in the form of Exhibit B
      (collectively referred to herein as “Stockholders”
and
      each individually as a “Stockholder”).

     

    RECITALS

     

    A. The
      Company has ten thousand (10,000) shares of common stock issued and
      outstanding.

     

    B. The
      stock
      ownership of the Company is set forth in Exhibit A,
      attached hereto all of which shares are fully paid and
      non-assessable.

     

    C. The
      parties hereto believe that it is in their mutual interest to make provisions
      for the future disposition of the shares of common stock of the Company, to
      the
      end that continuity of harmonious management is assured, and a fair process
      is
      established by which said shares of common stock may be transferred, conveyed,
      assigned or sold.

     

    AGREEMENTS

     

    In
      consideration of the recitals and the mutual promises, covenants and agreements
      contained herein and other good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, the parties hereto hereby agree
      as
      follows:

     

    1.  Defined
      Terms.
      The
      following terms, when used in this Agreement, have the respective meanings
      set
      forth below:

     

    (a)  “Approved
      Sale”
means
      the sale of the Company, whether by merger, consolidation, sale of all or
      substantially all of the assets of the Company or a sale of all or substantially
      all of the capital stock of the Company, in one transaction or a series of
      transactions, which has been approved by a majority of the securities entitled
      to vote thereon and by Special Board Approval.

     

    (b)  “Board”
shall
      mean the Board of Directors of the Company.

     

    (c)  “CCF”
shall
      mean The Cleveland Clinic Foundation, a not-for-profit Ohio
      corporation.

     

    (d)  “Code”
shall
      mean the United States Internal Revenue Code of 1986, as amended.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e)  “Commission”
shall
      mean the United States Securities and Exchange Commission or any successor
      thereto.

     

    (f)  “Common
      Stock”
shall
      mean the Company’s Common Stock, par value $0.005 per share.

     

    (g)  “Exchange
      Act”
shall
      mean the Securities Exchange Act, of 1934, as amended, or any similar federal
      statute as the same shall be in effect from time to time.

     

    (h)  “Material
      Deviation”
shall
      mean any sum or allocation that, when aggregated with similar deviations made
      during any calendar quarter, equals or exceeds a total of five percent (5%)
      of
      the then current annual budget as approved by the Board.

     

    (i)  “Person”
shall
      mean any individual, partnership, limited liability company, corporation, joint
      venture, trust, unincorporated organization, or other entity, or a governmental
      entity or any department, agency or political subdivision thereof.

     

    (j)  “Qualified
      IPO”
means
      the Company’s first fully underwritten firm commitment public offering of shares
      of Common Stock consummated pursuant to a registration statement declared
      effective under the Securities Act, other than an offering made in connection
      with a business acquisition or combination or an employee benefit plan, in
      which
      the aggregate gross proceeds to the Company after deducting underwriters’
discounts and commissions and related offering expenses equals or exceeds
      Fifteen Million Dollars ($15,000,000) and in which the price per share of Common
      Stock offered to the public equals or exceeds Two Dollars ($2) (such price
      to be
      equitably adjusted in the event of any stock dividend, stock split, combination,
      recapitalization, reorganization, reclassification or other similar
      event).

     

    (k)  “Restricted
      Stock Agreements”
shall
      mean the restricted stock agreements entered into by and between the Company
      and
      certain of the Stockholders, and placing certain restrictions on the transfer
      and disposition of the Shares.

     

    (l)  “Rule
      144”
shall
      mean Rule 144 (including Rule 144(k)) of the Commission under the Securities
      Act
      or any similar provision then in force under the Securities Act.

     

    (m)  “Securities
      Act”
means
      the Securities Act of 1933, as amended, or any similar federal statute as the
      same shall be in effect from time to time.

     

    (n)  “Senior
      Securities”
shall
      mean any class or series of securities of the Company which may be issued from
      time to time by the Company or any shares of Common Stock of the Company issued
      upon conversion of a security of such class or series, in either case,
      designated as having registration rights senior to those rights granted in
      this
      Agreement with respect to the Stockholder Shares.

     

    (o)  “Shares”
means
      shares of Common Stock which have not been (i) sold to the public pursuant
      to a
      registration statement declared effective by the Commission (other than one
      on
      Form S-8 or a comparable form), (ii) sold pursuant to Rule 144 or (iii) sold
      or
      otherwise transferred in a transaction in which the rights under this Agreement
      have not been assigned. For the purposes of this Agreement, any Person will
      be
      deemed to own, in addition to any Shares such Person actually owns, any Shares
      which would then be directly or indirectly issuable upon the conversion or
      exercise (whether or not then convertible or exercisable) of any other
      securities of the Company owned by such Person.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (p)  “Stockholder
      Shares”
means,
      at any time, (i) Shares then held by the Stockholders, (ii) Shares that were
      at
      one time held by any Stockholder but are then held by (A) a successor or assign
      of any Stockholder or (B) a Person who becomes a party to this Agreement and
      (iii) Shares that were issued upon conversion or exercise of other Stockholder
      Shares, or that were issued as a dividend or other distribution with respect
      to
      or in replacement of other Stockholder Shares, and are then held by (1) any
      Stockholder, (2) a successor or assign of any Stockholder or (3) a subsequent
      Person who becomes a party to this Agreement.

     

    (q)  “Special
      Board Approval”
shall
      mean the prior approval of the holders of not less than 60% of the total number
      of outstanding Shares.

     

    (r)  “transfer”
shall
      mean any sale, exchange, assignment, transfer, mortgage, pledge, encumbrance,
      hypothecation, disposition, gift, devise, bequest, or other disposition or
      grant
      of rights or interests, whether voluntarily or involuntarily, by operation
      of
      law or otherwise.

     

    2.  Board
      of Directors.

     

    (a)  From
      and
      after the date hereof and until the provisions of this Section 2 cease to be
      effective, each Stockholder will vote such Shares over which such Person has
      voting control, and will take all other necessary or desirable actions within
      his or its control and consistent with legal duty (whether in his capacity
      as a
      Stockholder, director, member of a Board committee or officer of the Company
      or
      otherwise), and the Company will take all necessary and desirable actions within
      its control and consistent with legal duty, in order to cause:

     

    (i)  the
      authorized number of directors on the Board to be established at five (5),
      and
      meetings of the Board to be scheduled quarterly until such time as the Board
      votes to schedule such meetings less frequently;

     

    (ii)  the
      election to the Board of:

     

    (A)  two
      representatives (the “CCF
      Representatives”)
      designated by CCF who shall initially be:

     

    Paul
      DiCorleto, Ph.D.; and

     

    Theodore
      Theofrastous, Esq.; and

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (B)  three
      representatives (the “Company
      Representatives”)
      designated by the holders of a majority of the then outstanding
      Shares:

     

    Michael
      Fonstein, Ph.D.;

     

    Andrei
      Gudkov, Ph.D.; and

     

    Yakov
      Kogan, Ph.D.

     

    (iii)  the
      removal from the Board (with or without cause) of any representative(s), at
      the
      written request of the Persons entitled to designate such representative(s)
      under (ii) above, but only upon such written request and under no other
      circumstances; and

     

    (iv)  in
      the
      event that any representative designated hereunder for any reason ceases to
      serve as a member of the Board during such representative’s term of office, the
      resulting vacancy on the Board to be filled by a representative designated
      as
      provided in (ii) above by the Persons entitled to designate such
      representative(s) under (ii) above.

     

    (b)  The
      Company will pay the reasonable out-of-pocket expenses actually incurred by
      each
      director in connection with attending formal and informal meetings of the Board.
      The Company will pay the non-employee Directors a reasonable fee for attending
      Board meetings, such fee to be established by the Board from time to
      time.

     

    (c)  The
      rights of CCF to designate, approve or add Board members under this Section
      2
      will terminate when CCF owns, legally or beneficially, less than five percent
      (5%) of the outstanding Shares.

     

    (d)  Notwithstanding
      the foregoing, the provisions of this Section 2 will terminate automatically
      and
      be of no further force and effect upon the consummation of a Qualified
      IPO.

     

    3.  Initial
      Negative Covenants of the Company: Special Board
      Approval.

     

    Until
      such time as the Company has raised at least two million dollars ($2,000,000)
      in
      financial investment(s), the Company, for itself and for each of its
      Subsidiaries, whether now owned or hereafter formed or acquired, covenants
      to
      and agrees with the Stockholders that, so long as CCF owns, legally or
      beneficially, more than ten percent (10%) of the outstanding Shares, neither
      the
      Company nor any Subsidiary will do any of the following without Special Board
      Approval:

     

    (a)  Board
      of Directors.
      Increase the authorized number of members of the Board of
      Directors;

     

    (b)  Chief
      Executive Officer.
      Hire or
      terminate any Chief Executive Officer;

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (c)  Dispositions
      and Acquisitions.
      Directly or indirectly (i) sell, lease or otherwise dispose of any asset or
      assets in a single transaction or series of related transactions (including,
      without limitation, shares of stock or other ownership interests in any Person
      and assets constituting a business) with a value that constitutes a Material
      Deviation; (ii) acquire in any single transaction or series of related
      transactions assets of any Person (including, without limitation, shares of
      stock or other ownership interests in any other Person and assets constituting
      a
      business) where the total consideration, including, without limitation,
      employment contracts, non-competition provisions, assumption of liabilities
      and
      payment for assets, the value of which constitute a Material Deviation; or
      (iii)
      make any acquisitions outside the Business;

     

    (d)  Security
      Interests.
      Create,
      incur, assume, or permit to exist, any Security Interest in any of its
      properties or assets whether now owned or hereafter acquired, other than
      Permitted Liens or a Security Interest granted in connection with (i) trade
      debt
      incurred in the ordinary course of business, (ii) purchase money debt that
      constitutes a Material Deviation, (iii) capitalized leases that constitute
      a
      Material Deviation, and (iv) debt assumed in acquisitions which have received
      such approval as is herein required;

     

    (e)  Indebtedness.
      Create,
      incur, assume, or otherwise become or remain liable, directly or indirectly,
      for
      any manner of Indebtedness, whether by loan, guaranty, mortgage or otherwise,
      in
      excess of the amounts disclosed to the Stockholders in the Purchase Agreement,
      except (i) as trade debt incurred in the ordinary course of business, (ii)
      as
      purchase money debt that constitutes a Material Deviation, (iii) as capitalized
      leases not to exceed any amount that constitutes a Material Deviation, and
      (iv)
      pursuant to the annual budget;

     

    (f)  Advances;
      Investments.
      Except
      in connection with the formation of wholly- owned subsidiaries, (i) make any
      advance or loan to any person, firm or corporation, except for reasonable travel
      or business expenses advanced to the Company’s or a Subsidiary’s employees or
      independent contractors in the ordinary course of business, or (ii) invest
      in,
      acquire or hold any securities of any other Person, except bank certificates
      of
      deposit that are fully insured by an agency of the United States or direct
      obligations of the United States or short-term money market funds; provided,
      however,
      that
      this paragraph will not include trade accounts receivable incurred in the
      ordinary course of business;

     

    (g)  Capital
      Expenditures.
      Make
      any Capital Expenditures or commitments for such expenditures on a consolidated
      basis that constitute a Material Deviation per annum in excess of the amount
      provided in the annual budget;

     

    (h)  Transactions
      with Related Persons.
      Except
      where specifically disclosed to the Board prior to undertaking any such
      transaction and where Board approval has been obtained if the transaction
      exceeds Five Thousand Dollars ($5,000), knowingly enter into any transaction,
      agreement or arrangement with any stockholder, director, or officer of the
      Company or of any Subsidiary, any relative by blood or marriage of any
      stockholder, director or officer of the Company or of any Subsidiary or any
      supplier, service organization, customer or other entity in which any
      stockholder, director or officer of the Company or of any Subsidiary has a
      financial interest and, in addition to the foregoing restrictions, all
      transactions between the Company or any of its Subsidiaries on the one hand,
      and
      any Affiliate of the Company on the other hand, will be on arms’ length terms
      and conditions, including fair market values and prices equivalent to those
      that
      would be charged and paid between parties at arms’ length at the time of the
      entering into of the transactions in question;

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (i)  Management
      Agreements.
      Make or
      enter into any agreements whereby the management, supervision or control of
      its
      business is to be delegated to or placed in any persons other than its duly
      elected Board and officers, or make or enter into any contract or agreement
      whereby the operation of its business, in whole or in part, is delegated to,
      or
      placed in, any agent (third party) or independent contractor;

     

    (j)  Agreements
      Regarding the Foregoing.
      Agree,
      or make any binding commitment or arrangement, to take any of the actions
      specified in clauses (a) through (i) above.

     

    4.  Additional
      Negative Covenants of the Company: Special Board
      Approval.

     

    Until
      such time as the Company achieved total investment or commercial financing
      events wherein the Company has raised a total of at least 15 million dollars
      ($15,000,000), the Company, for itself and for each of its Subsidiaries, whether
      now owned or hereafter formed or acquired, covenants to and agrees with the
      Stockholders that, so long as CCF owns, legally or beneficially, more than
      ten
      percent (10%) of the outstanding Shares, neither the Company nor any Subsidiary
      will do any of the following without Special Board Approval:

     

    (a)  Change
      in Number of Authorized Shares Issuance of Equity.
      Increase or decrease the authorized number of shares of Common Stock; effect
      any
      stock split, combination, subdivision or share dividend; issue any shares of
      capital stock of the Company or any of its Subsidiaries of any class, or
      securities (excluding options issued under the Company’s incentive stock option
      program) convertible into or exchangeable for, capital stock, other than up
      to
      an aggregate of 5% of the total outstanding Shares (as adjusted for all stock
      dividends, stock splits, subdivisions and combinations and including any and
      all
      outstanding options as of the date hereof and any outstanding shares that were
      issued upon exercise of previously outstanding options), issued or granted
      as
      compensation to directors, senior management of the Company or any Subsidiary,
      or key employees of businesses acquired by the Company or any
      Subsidiary;

     

    (b)  New
      Class of Stock.
      Create
      any new class or series of stock of the Company which has preference over or
      is
      on parity with the Common Stock;

     

    (c)  Business.
      Directly or indirectly change the nature of its business as carried on by the
      Company or its Subsidiaries in any material respect;

     

    (d)  Public
      Offering.
      Make
      any underwritten public offering of the Common Shares other than a Qualified
      IPO;

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (e)  Merger.
      Approve
      or effect any merger or consolidation with another business or
      company;

     

    (f)  Sale,
      Dissolution or Liquidation.
      (i)
      sell, lease or otherwise dispose of all or substantially all of the Company’s
      assets, to any Person; (ii) adopt any plan or arrangement for the dissolution
      or
      liquidation of the Company;

     

    (g)  Dividends.
      Declare
      or pay (or make any provision for the payment of) any dividend or distribution
      on any equity security;

     

    (h)  Charter
      Documents.
      Amend
      its Certificate of Incorporation or its By-Laws;

     

    (i)  Inconsistent
      Agreements.
      Enter
      into any agreement containing any provision that would be violated or breached
      by the performance by the Company of its obligations under this
      Agreement;

     

    (j)  Registration
      Rights.
      Grant
      additional registration rights beyond those granted as of the date hereof;
      or

     

    (k)  Agreements
      Regarding the Foregoing.
      Agree,
      or make any binding commitment or arrangement, to take any of the actions
      specified in clauses (a) through (j) above.

     

    5.  Take-along.

     

    (a)  Except
      for “Permitted Transferees” under certain of the Restricted Stock Agreements, no
      Stockholder shall transfer Stockholder Shares in excess of the greater of (i)
      five percent of such selling Stockholder’s Shares or (ii) one percent of the
      aggregate outstanding Stockholder Shares, in a single transaction or related
      series of transactions, to any Person (in such capacity, the “”Purchaser”)
      unless
      the terms and conditions of such sale, transfer or other disposition (the
“Disposition”)
      to
      such Purchaser shall contain an offer to each of the other Stockholders, to
      include in such Disposition such number of shares of such Stockholder Shares
      as
      is determined in accordance with Section 5(b) below. At least 45 days prior
      to
      effecting any Disposition, such selling Stockholder (the “Selling
      Stockholder”)
      shall
      promptly cause the terms and conditions of the Disposition to be reduced to
      a
      reasonably detailed writing (which writing shall identify the Purchaser and
      shall include the offer to the other Stockholders to purchase or otherwise
      acquire their Securities according to the terms and subject to the conditions
      of
      this Section 5), and shall deliver, or cause the Purchaser to deliver, written
      notice (the “Notice”)
      of
      such terms of such Disposition to each other Stockholder. The Notice shall
      be
      accompanied by a true and correct copy of the agreement, if any, embodying
      the
      terms and conditions of the proposed Disposition or such written summary thereof
      if there is no agreement. At any time after receipt of the Notice (but in no
      event later than 10 Business Days after receipt), any Stockholder may accept
      the
      offer included in the Notice for up to such number of its shares of Stockholder
      Shares as determined in accordance with the provisions of Section 5(b) below,
      by
      furnishing irrevocable written notice of such acceptance (the “Acceptance”)
      to the
      Selling Stockholder and to the Purchaser.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (b)  In
      the
      event that any Stockholder elects to accept the offer included in the Notice
      described in Section 5(a) above, such Stockholder (the “Included
      Stockholder”)
      shall
      have the right to sell, transfer or otherwise dispose of such number of its
      shares of Stockholder Shares pursuant to, and upon consummation of, the
      Disposition which is equal to the product of: (i) the total number of Shares
      owned by the Included Stockholder; and (ii) a fraction, the numerator of which
      shall equal 50% of the total number of Shares to be sold to the Purchaser,
      and
      the denominator of which shall equal the total number of Shares owned by all
      Stockholders. If the Purchaser is not willing to purchase all Shares proposed
      to
      be sold in the Disposition by the Selling Stockholder and all Included
      Stockholders, the Selling Stockholder shall reduce, to the extent necessary,
      the
      number of number of Common Shares the Selling Stockholder otherwise would have
      sold in the Disposition so as to permit Included Stockholders to sell the number
      of Shares they are entitled to sell in such Disposition pursuant to this Section
      5(b).

     

    (c)  The
      purchase of Shares pursuant to this Section 5 shall be made on the same terms
      (including, without limitation, the per share consideration and method of
      payment, and the date of sale, transfer or other disposition), and subject
      to
      the same conditions, if any, as are provided to the Selling Stockholder and
      stated in the Notice.

     

    (d)  Upon
      the
      consummation of the disposition of Shares to the Purchaser pursuant to the
      Disposition, the Selling Stockholder shall: (i) cause the Purchaser to remit
      directly to each Included Stockholder the sales price of its Securities disposed
      of pursuant thereto; and (ii) furnish such other evidence of the completion
      and
      time of completion of such disposition and the terms thereof as may be
      reasonably be requested by such Included Stockholder.

     

    (e)  If
      a
      Stockholder does not timely deliver the Acceptance to the Selling Stockholder
      and the Purchaser, it shall be deemed to have waived any and all rights pursuant
      to this Section 5 and with respect to the disposition of its Shares described
      in
      the Notice, and the Selling Stockholder and Included Stockholder(s) shall have
      45 days (calculated from the first day next succeeding the expiration of the
      10
      Business Days acceptance period described above), in which to dispose of the
      aggregate amount of Shares described in the Notice to the Purchaser identified
      in the Notice, on terms not more favorable to the Selling Stockholder than
      those
      which were set forth in the Notice. If an Included Stockholder has timely
      delivered the Acceptance and, if after 30 days following receipt of the Notice,
      the Selling Stockholder and the Purchaser shall not have completed the
      disposition of Shares to be sold in connection therewith in accordance with
      the
      terms of the Disposition, all the restrictions on the disposition of Shares
      contained in Restricted Stock Agreements shall again be in full force and
      effect.

     

    6.  Permitted
      Transfers.
      A
      holder of Stockholder Shares may transfer Stockholder Shares, without complying
      with Section 5 with respect to such transfer, to Permitted Transferees, if
      any
      (as defined in the Restricted Stock Agreements) of such holder, provided that
      as
      a condition precedent to any transfer of Stockholder Shares to a Permitted
      Transferee (a) a transferring Stockholder must provide the Company with prior
      notice of such transfer indicating the number of Shares to be transferred and
      the identity of the Permitted Transferee and (b) such Stockholder’s Permitted
      Transferee must agree to be bound by the terms of this Agreement as a
      Stockholder, including without limitation, Sections 5 and 6, by executing an
      Instrument of Accession in the form of Exhibit B.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    7.  Sale
      of the Company or its Assets.
      Each
      holder of Stockholder Shares will consent to and raise no objections to an
      Approved Sale and (a) if an Approved Sale is structured as a sale of stock,
      each
      holder of Stockholder Shares will agree to sell, and will sell, all of such
      holder’s Stockholder Shares on the terms and conditions (including any escrow or
      indemnification provisions) so Approved, (b) if an Approved Sale is structured
      as a merger or consolidation, each holder of Stockholder Shares will vote in
      favor thereof and will no exercise any dissenters’ rights of appraisal such
      holder may have under law, including Delaware corporation law, and (c) if an
      Approved Sale is structured as a sale of all or substantially all of the assets
      of the Company and a subsequent dissolution and liquidation of the Company,
      each
      holder of Stockholder Shares will vote in favor thereof and will vote in favor
      of the subsequent dissolution and liquidation of the Company. Each holder of
      Stockholder Shares will take all necessary actions in connection with
      consummation of an Approved Sale as are reasonably requested by the
      Board.

     

    8.  Legends.
      Each
      certificate representing Shares (each, a “Certificate”)
      shall
      be endorsed with the following legends and such other legends as may be required
      by applicable state securities laws:

     

    TRANSFER
      RESTRICTIONS

     

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND
      CONDITIONS OF AN STOCKHOLDERS AGREEMENT, AMONG CLEVELAND BIOLABS, INC. AND
      CERTAIN OTHER HOLDERS OF ITS SECURITIES, DATED AS OF JULY 1, 2004. A COPY
      OF SUCH AGREEMENT MAY BE OBTAINED BY THE HOLDER HEREOF AT THE COMPANY’S
      PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE.

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED AS OF
      __________ __, 200_, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
      1933, AS AMENDED (THE “ACT”), AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE
      OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN EXEMPTION FROM
      REGISTRATION THEREUNDER. THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
      ALSO
      SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER, CERTAIN REPURCHASE OPTIONS
      AND
      CERTAIN OTHER AGREEMENTS SET FORTH IN A RESTRICTED STOCK AGREEMENT BETWEEN
      THE
      COMPANY AND _____________ OF THE COMPANY DATED AS OF __________ __, 200_.
      A COPY OF SUCH AGREEMENT MAY BE OBTAINED BY THE HOLDER HEREOF AT THE
      COMPANY’S PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE.”

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    9.  Holdback
      Agreement.
      In
      connection with any registration of the Company’s securities (other than a
      registration of securities in a Rule 145 transaction or with respect to an
      employee benefit plan) each Stockholder hereby agrees that, upon written request
      of the Company or the underwriters managing any underwritten offering of the
      Company’s securities, such Stockholder shall not sell, make any short sale of,
      loan, pledge or otherwise hypothecate or encumber, grant any option for the
      purchase of, or otherwise dispose of any Stockholder Shares (other than those
      included in the registration) without the prior written consent of the Company
      or such underwriters, as the case may be, for such period of time (not to exceed
      one hundred eighty (180) days following the effective date of a registration
      statement of the Company filed under the Securities Act) as may be requested
      by
      the Company or such managing underwriters; provided that (i) the officers and
      directors of the Company who own stock of the Company, as well as any
      Stockholder who owns more than one percent (1%) of the Common Stock of the
      Company on a fully diluted, fully converted basis, also agree to such
      restrictions, and (ii) the underwriters shall not release any party from any
      lock-up agreement or similar agreement (a “Lock
      Up Release”)
      without (x) providing the undersigned at least three (3) business days’ prior
      written notice of the effective date of the Lock Up Release and (y)
      simultaneously releasing the undersigned and their affiliates to the same extent
      from any lock-up letter or similar agreement to which they are a party. Nothing
      herein shall prevent a holder of Stockholder Shares that is a partnership from
      making a distribution of Stockholder Shares to its partners, a holder of
      Stockholder Shares that is a trust from making a distribution of Stockholder
      Shares to its beneficiaries or a holder of Stockholder Shares that is a
      corporation from making a distribution of Stockholder Shares to its
      stockholders, provided that the transferees of such Stockholder Shares agree
      to
      be bound by the provisions of this Agreement to the extent the transferor would
      be so bound by executing an Instrument of Accession in the form of Exhibit B.

     

    10.  Piggyback
      Registration Rights.

     

    (a)  Right
      to Piggyback.
      After
      the consummation of a Qualified IPO, whenever the Company proposes to register
      any of its securities under the Securities Act, either pursuant to an
      underwritten primary registration on behalf of the Company or pursuant to an
      underwritten secondary registration on behalf of a holder or holders of the
      Company’s securities (other than on Form S-4, Form S-8 or any successor form)
      and the registration form to be used may be used for the registration of any
      Stockholder Shares (a “Piggyback
      Registration”),
      the
      Company will give prompt written notice to each holder of Stockholder Shares
      of
      its intention to effect such a registration and will include in such
      registration all Stockholder Shares (subject to, and in accordance with, the
      priorities set forth in Section 10(b)), with respect to which the Company has
      received written requests for inclusion within ten (10) days after delivery
      of
      the Company’s notice.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (b)  Priority.
      If the
      managing underwriters advise the Company that in their opinion, the number
      of
      Shares requested to be included in such registration exceeds the number which
      can be sold in such offering without adversely affecting the marketability
      or
      pricing thereof, the Company will include in such registration up to an
      aggregate amount determined advisable by the underwriters: (i) first,
      the
      Shares that the Company and the holders of any Senior Securities wish to
      register and (ii) second,
      all
      Stockholder Shares requested to be registered pro rata
      among
      the holders of such Stockholder Shares on the basis of the number of Stockholder
      Shares which are requested to be registered.

     

    (c)  Withdrawal
      of Registration Statement.
      Notwithstanding anything herein to the contrary, the Company may withdraw any
      registration statement referred to in this Section 10 at any time in its sole
      discretion without thereby incurring any liability to the holders of Stockholder
      Shares.

     

    11.  Registration
      Procedures.
      Whenever holders of Stockholder Shares have requested that any Stockholder
      Shares be registered pursuant to this Agreement, the Company will use its
      reasonable best efforts to effect the registration of such Stockholder Shares
      in
      accordance with the intended method of disposition thereof and, pursuant
      thereto, the Company will:

     

    (a)  use
      its
      reasonable best efforts to register or qualify such Stockholder Shares under
      the
      securities or blue sky laws of the jurisdictions as any seller reasonably
      requests in writing and do any and all other acts and things which may be
      reasonably necessary or advisable to enable such seller to consummate the
      disposition in such jurisdictions of the Stockholder Shares owned by such seller
      (provided that the Company will not be required to (i) qualify generally to
      do
      business in any jurisdiction where it would not otherwise be required to qualify
      but for this subparagraph or (ii) consent to general service of process in
      any
      such jurisdiction);

     

    (b)  notify
      each seller of Stockholder Shares at any time when a prospectus relating thereto
      is required to be delivered under the Securities Act, of the happening of any
      event as a result of which the prospectus included in such registration
      statement contains an untrue statement of a material fact or omits any fact
      necessary to make the statements therein not misleading, as promptly as
      practicable thereafter, prepare and file with the Commission and furnish to
      each
      seller of Stockholder Shares subject to the registration statement, a supplement
      or amendment to such prospectus so that, as thereafter delivered to the
      purchasers of Stockholder Shares, such prospectus will not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make
      the statements therein, in light of the circumstances under which they were
      made, not misleading;

     

    (c)  cause
      all
      such Stockholder Shares to be listed on each securities exchange, if any, on
      which similar securities issued by the Company are then listed;

     

    (d)  enter
      into customary agreements (including an underwriting agreement in customary
      form) and take such other actions as are reasonably required in order to
      expedite or facilitate the disposition of such Stockholder Shares;

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (e)  make
      reasonably available for inspection by (i) any holder of Stockholder Shares
      subject to the registration statement, (ii) any underwriter participating in
      any
      disposition pursuant to such registration statement, and (iii) any attorney,
      accountant or other agent retained by any holder of Stockholder Shares, or
      an
      underwriter (collectively, the “Inspectors”),
      all
      pertinent financial and other records, pertinent corporate documents and
      properties of the Company (collectively, the “Records”)
      as
      shall be reasonably necessary to enable them to exercise their due diligence
      responsibility, and cause the Company’s officers, directors and employees to
      supply all information reasonably requested by any such Inspector in connection
      with such registration statement. Records and other information which the
      Company determines, in good faith, to be confidential and which it notifies
      the
      Inspectors are confidential will not be disclosed by the Inspectors unless
      (x)
      the disclosure of the Records in the opinion of counsel reasonably acceptable
      to
      the Company is necessary to avoid or correct a misstatement or omission in
      the
      registration statement or (y) the release of Records is ordered pursuant to
      a
      subpoena or other order from a court of competent jurisdiction. Each holder
      of
      Stockholder Shares subject to the registration statement will, upon learning
      that disclosure of the Records is sought in a court of competent jurisdiction,
      promptly give notice to the Company and allow the Company, at the Company’s
      expense, to undertake appropriate action to prevent disclosure of the records
      deemed confidential;

     

    (f)  in
      the
      event that the sale of Stockholder Shares is pursuant to an underwritten
      offering, use its best efforts to obtain a “cold comfort” letter from the
      Company’s independent public accountants in customary form and covering such
      matters of the type customarily covered by “cold comfort” letters as the holders
      of Stockholder Shares being sold or the managing underwriter reasonably
      requests;

     

    (g)  use
      all
      reasonable efforts to obtain an opinion or opinions from counsel for the Company
      in customary form;

     

    (h)  provide
      a
      transfer agent and registrar for all such Stockholder Shares not later than
      the
      effective date of such registration statement;

     

    (i)  at
      least
      forty-eight hours prior to the filing of any registration statement or
      prospectus or any amendment or supplement to such registration statement or
      prospectus, furnish a copy thereof to each holder of Stockholder Shares and
      refrain from filing any such registration statement, prospectus, amendment
      or
      supplement to which counsel selected by the Stockholder Shares being registered
      shall have reasonably objected on the grounds that such amendment or supplement
      does not comply in all material respects with the requirements of the Securities
      Act or the rules and regulations thereunder, unless, in the case of an amendment
      or supplement, in the opinion of counsel for the Company the filing of such
      amendment or supplement is reasonably necessary to protect the Company from
      any
      liabilities under any applicable federal or state law and such filing will
      not
      violate applicable laws; and

     

    (j)  advise
      each seller of such Stockholder Shares promptly after it shall receive notice
      or
      obtain knowledge thereof, of the issuance of any stop order by the Commission
      suspending the effectiveness of such registration statement or the initiation
      or
      threatening of any proceeding for such purpose and use reasonable efforts to
      prevent the issuance of any stop order or to obtain its withdrawal if such
      stop
      order should be issued.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    12.  Indemnification.

     

    (a)  By
      the
      Company.
      The
      Company agrees to indemnify, to the extent permitted by law, each holder of
      Stockholder Shares, its partners, officers and directors and each Person who
      controls any such holder (within the meaning of the Securities Act), against
      all
      losses, claims, damages, liabilities and expenses (including without limitation,
      reasonable attorney’s fees and expenses) caused by any untrue statement of
      material fact contained in any registration statement, prospectus or preliminary
      prospectus, or any amendment thereof or supplement thereto, or any omission
      of a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading, except insofar as (i) the same are caused by or
      contained in any information furnished to the Company by such holder expressly
      for use therein, or (ii) a copy of such registration statement, prospectus
      or
      preliminary prospectus or any amendment thereof or supplement thereto was
      provided to such seller of Stockholder Shares in compliance with Section 11(b)
      hereof, and such seller failed to deliver such prospectus, preliminary
      prospectus, amendment or supplement correcting such untrue or alleged untrue
      statement of a material fact, or omission or alleged omission of a material
      fact
      required to be stated therein or necessary to make the statements therein not
      misleading.

     

    (b)  By
      Each Holder.
      In
      connection with any registration statement in which a holder of Stockholder
      Shares is participating, each such holder will furnish to the Company in writing
      such information and affidavits, in each case relating only to such holder,
      as
      the Company reasonably requests for use in connection with any such registration
      statement or prospectus and, to the extent permitted by law, will indemnify
      the
      Company, its directors and officers and each Person who controls the Company
      (within the meaning of the Securities Act) against any losses, claims, damages,
      liabilities and expenses (including without limitation, reasonable attorneys’
fees and expenses) resulting from any untrue statement of material fact
      contained in the registration statement, prospectus or preliminary prospectus,
      or any amendment thereof or supplement thereto, or any omission of a material
      fact required to be stated therein or necessary to make the statements therein
      not misleading, but only to the extent that such untrue statement or omission
      is
      contained in any information or affidavit so furnished by such holder; provided
      that the obligation to indemnify will be several, not joint and several, among
      such holders of Stockholder Shares.

     

    (c)  Procedure.
      Any
      Person entitled to indemnification under this Section 12 will (i) give prompt
      written notice to the indemnifying Person of any claim with respect to which
      it
      seeks indemnification, and (ii) unless in the reasonable judgment of such
      indemnified Person a conflict of interest between such indemnified Person and
      indemnifying Person may exist with respect to such claim, permit such
      indemnifying Person to assume the defense of such claim with counsel reasonably
      satisfactory to the indemnified Person. If such defense is assumed, the
      indemnifying Person will not be subject to any liability for any settlement
      made
      by the indemnified Person without its consent, which consent will not be
      unreasonably withheld. An indemnifying Person who is not entitled to, or elects
      not to, assume the defense of a claim will not be obligated to pay the fees
      and
      expenses of more than one (1) counsel for all indemnified Persons with respect
      to such claim, unless in the reasonable judgment of any indemnified Person
      a
      conflict of interest may exist between such indemnified Person and any other
      indemnified Person with respect to such claim. The payments required by this
      Section 12 will be made periodically during the course of the investigation
      or
      defense, as and when bills are received or expenses incurred.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (d)  Contribution.
      If for
      any reason the indemnification provided for in Section 12(a) or 12(b) hereof
      is
      unavailable to an indemnified Person as contemplated thereby, the indemnifying
      Person, in lieu of indemnifying such indemnified Person, shall contribute to
      the
      amount paid or payable by such indemnified Person as a result of such loss,
      claim, damage, liability or expense in such proportion as is appropriate to
      reflect the relative fault of the indemnified Person and the indemnifying
      Person, as well as any other relevant equitable considerations. The relative
      fault of such indemnifying Person and indemnified Person shall be determined
      by
      reference to, among other things, whether the untrue statement of material
      fact
      or omission to state a material fact, has been made by, or relates to
      information supplied by, such indemnifying Person or indemnified Person, and
      the
      parties’ relative intent, knowledge, access to information and opportunity to
      correct or prevent such statement or omission. The parties hereto agree that
      it
      would not be just and equitable if contribution pursuant to this Section 12
      were
      determined by pro rata
      allocation or by any other method of allocation that does not take account
      of
      equitable considerations referred to in this paragraph. No Person guilty of
      fraudulent misrepresentation (within the meaning of Section 11(f) of the
      Securities Act) shall be entitled to contribution from any Person who was not
      guilty of fraudulent misrepresentation.

     

    (e)  Survival.
      This
      Section 12 will remain in full force and effect regardless of any investigation
      made by or on behalf of any indemnified Person or any officer, director, agent
      or, controlling Person of such indemnified Person and will survive any transfer
      of Shares pursuant to the terms hereunder.

     

    13.  Other
      Registration Provisions.

     

    (a)  Priority
      of Subsequent Investors.
      Subject
      to the provisions of this Agreement, the Company may grant unlimited demand
      registration rights and a senior priority in any piggyback registration to
      holders of Senior Securities from time to time, including without limitation,
      classes or series of Senior Securities that do not exist as of the date of
      this
      Agreement, as determined by Special Board Approval.

     

    (b)  Registration
      Expenses.
      All
      expenses incident to the Company’s performance of or compliance with this
      Agreement, including without limitation (i) all registration and filing fees,
      fees and expenses of compliance with Federal and state securities or blue sky
      laws, (ii) all listing fees, printing expenses, messenger and delivery expenses,
      (iii) fees and disbursements of counsel for the Company, (iv) fees and
      disbursements of all independent certified public accountants and other Persons
      retained by the Company including underwriters (other than underwriter’s
      discounts and commissions) (all such expenses being herein called “Registration
      Expenses”)
      will
      be borne by the Company; provided,
      however,
      that
      each seller of Stockholder Shares shall bear (i) all fees and disbursements
      of
      counsel such seller retains in connection with the registration of Stockholder
      Shares and (ii) all underwriting commissions and discounts and transfer taxes
      attributable directly to any Stockholder Shares sold for such seller’s
      account.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (c)  Selection
      of Underwriters.
      The
      Company shall have the right, subject, so long as CCF owns, legally or
      beneficially, more than five percent (5%) of the outstanding Shares, to the
      reasonable approval of CCF, to select the underwriter(s) or investment banker(s)
      to administer any underwritten registration of shares of Common Stock, including
      without limitation, any Piggyback Registration.

     

    (d)  Compliance
      with Rule 144.
      In the
      event that the Company (i) registers a class of securities under Section 12
      of
      the Exchange Act, or (ii) commences to file reports under Section 13 or 15(d)
      of
      the Exchange Act, the Company agrees: (a) to use its reasonable best efforts
      to
      make and keep available to the public and all holders who propose to sell
      securities in compliance with Rule 144 that information required by Rule 144
      and
      to enable such holders to make sales pursuant to Rule 144; and (b) to furnish
      to
      such holders forthwith upon request a written statement by the Company of
      compliance with the filing requirements of the Commission as set forth in Rule
      144.

     

    (e)  Participation
      in Underwritten Registrations.
      No
      holder of Stockholder Shares may participate in any registration hereunder
      which
      is underwritten unless such holder (i) agrees to sell such holder’s Stockholder
      Shares on the basis provided in any underwriting arrangements approved by the
      Company or any other Persons entitled to approve such arrangements, and (ii)
      completes and executes all questionnaires, powers-of-attorney, custody
      agreements, indemnities, underwriting agreements and other documents reasonably
      required under the terms of such underwriting arrangements; provided,
      however,
      that
      any indemnity granted by a holder of Stockholder Shares under such agreements
      shall be several and not joint.

     

    14.  Miscellaneous.

     

    (a)  Termination.
      The
      provisions set forth in Sections 2, 3, 4, 5 and 6 shall terminate upon the
      consummation of a Qualified IPO and the rights provided under Section 10 shall
      terminate with respect to a holder of Stockholder Shares as soon as such holder
      is eligible to sell all of such holder’s Stockholder Shares pursuant to Rule 144
      without restriction as to the number of Stockholder Shares sold within a stated
      period of time.

     

    (b)  Notices.
      Any
      notice, demand, or communication required or permitted to be given by any
      provision of this Agreement shall be delivered personally by overnight courier
      or by registered or certified mail, return receipt requested, to the following
      addresses, or such other address as any party hereto designates by written
      notice to the Company, and shall be deemed to be given upon delivery, if
      delivered personally, one business day after delivery to the courier, if
      delivered by overnight courier, or two business days after mailing, if
      mailed:

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (i)  If
      to the
      Company:

     

    Cleveland
      BioLabs, Inc.

    ____________________

    ____________________

    Attention:
      Chief Executive Officer

     

    With
      a
      copy to:

     

    Katten
      Muchin Zavis Rosenman 

    525
      West
      Monroe Street, Suite 1600

    Chicago,
      Illinois 60661

    Attention:
      Kurt W. Florian, Esq.

     

    (ii)  If
      to
      CCF, to:

     

    The
      Cleveland Clinic Foundation

    9500
      Euclid Avenue

    Cleveland,
      Ohio 44196

    Attn:
      [General Counsel]

     

    with
      required copies to:

     

    Squire,
      Sanders & Dempsey L.L.P.

    4900
      Key
      Tower

    127
      Public Square

    Cleveland,
      Ohio 44114

    Attn:
      Daniel G. Berick, Esq.

     

    and

     

    CCF
      Innovations

    9500
      Euclid Avenue

    Cleveland,
      Ohio 44195

    Attn:
      Chief Commercialization Counsel

     

    (iii)  If
      to any
      other Stockholder, to the address set forth on the stock record books of the
      Company.

     

    (c)  Application
      of Delaware Law.
      This
      Agreement and its interpretation shall be governed exclusively by its terms
      and
      by the laws of the State of Delaware.

     

    (d)  Amendments
      Waivers.
      Any
      provision of this Agreement may be amended or waived in writing by the holders
      of a majority of the Stockholder Shares and this Agreement may be amended by
      the
      Board, without the consent of the Stockholders, to cure any ambiguity, to
      correct or supplement any provisions herein which may be inconsistent with
      any
      other provision herein, or to add other provisions with respect to matters
      arising under this Agreement which will not be inconsistent with the provisions
      of this Agreement; provided,
      however
      that no
      amendment shall be adopted pursuant to this section unless the adoption thereof
      is for the benefit of or not adverse to the interests of the
      Stockholders.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (e)  Execution
      of Additional Instruments.
      Each
      Stockholder hereby agrees to execute such other and further statements of
      interest and holdings, designations and other instruments necessary to comply
      with any laws, rules, or regulations.

     

    (f)  Construction.
      The
      language used in this Agreement will be deemed the language chosen by the
      parties hereto to express their mutual intent, and no rule of strict
      construction will be used against any party hereto.

     

    (g)  Headings.
      The
      headings in this Agreement are inserted for convenience only and are in no
      way
      intended to describe, interpret, define, or limit the scope, extent or intent
      of
      this Agreement or any provision hereof.

     

    (h)  Severability.
      If any
      provision of this Agreement or the application thereof to any Person or
      circumstances shall be invalid, illegal, or unenforceable to any extent, the
      remainder of this Agreement and the application thereof shall not be affected
      and shall be enforceable to the fullest extent permitted by law.

     

    (i)  Heirs,
      Successors and Assigns.
      Each
      and all of the covenants, terms, provisions, and agreements herein contained
      shall be binding upon and inure to the benefit of the parties hereto and, to
      the
      extent permitted by this Agreement, their respective heirs, legal
      representatives, successors and assigns.

     

    (j)  Creditors.
      None of
      the provisions of this Agreement shall be for the benefit of or enforceable
      by
      any creditors of the Company or any Stockholder.

     

    (k)  Counterparts.
      This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original but all of which shall constitute one and the same
      instrument.

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed and delivered this Common Stockholders Agreement
      as
      of the date first above written.

     

    
      	 	 	 
	 	CLEVELAND
              BIOLABS, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Michael
              Fonstein
	 	
              
Name: Michael
              Fonstein
	 	Title: CEO

    

     

    
      	 	 	 
	 	THE
              CLEVELAND CLINIC FOUNDATION
	 
 	 
 	 
 
	 	By:  	/s/ Michael
              P. O’Boyle
	 	
              
Name: Michael
              P. O’Boyle
	 	Title: Chief
              Financial Officer

    

    
       

    

    (SIGNATURE
      PAGE TO STOCKHOLDERS AGREEMENT)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SIGNATURE
      BLOCK FOR INDIVIDUAL

     

    
      	 	
              Mr.

            	 	 
	
              (1)

            	
              Mrs.
                

            	
              Signature:

            	
              /s/____________________

            
	 	
              Ms.

            	
              Date:

            	 
	 	 	 	 
	 	
              Joint
                Tenant/Tenant in Common (if applicable):

            
	 	 
	 	
              Mr.

            	 	 
	
              (2)

            	
              Mrs.
                ___________________

            	
              Signature:

            	
              _____________________

            
	 	
              Ms.

            	
              Date:

            	
              _____________________

            
	 	 	 	 
	 	
              TYPE
                OF OWNERSHIP:

            	 	 
	 	 	 	 
	 	
              _____ Individual

            	
              ________

            	
              Joint
                Tenants with Right of Survivorship

            
	 	 	 	 
	 	
              _____ Tenants
                in Common

            	
              ________

            	
              Community
                Property (check only if a resident of a Community Property
                State)

            
	 	 	 	 
	 	 	 	 

    

    SIGNATURE
      BLOCK FOR ENTITIES

     

     

    
      	 	Name: ________________________________
	 	 
	 	By: ________________________________
	 	
              (Signature)

            
	 	 
	 	
              ________________________________

            
	 	
              (Signer’s
                Printed Name)

            
	 	 
	 	Its:  __________________________
	 	 
	 	Date:  __________________________
	 	 

    

     

    ____ Partnership

    ____ Corporation

    ____ Trust

    ____ Bank

     

    (SIGNATURE
      PAGE TO STOCKHOLDERS
      AGREEMENT)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    STOCKHOLDERS
      OF CLEVELAND BIOLABS, INC.

     

    
      	
              Stockholder

            	
              Common
                Stock

            	
              %
                of Outstanding Common Stock

            	
              Shares
                Issuable upon exercise of Warrants

            	
              Fully
                Diluted Ownership

            	
              Fully
                Diluted Ownership %

            
	 	 	 	 	 	 
	
              Employees

            	 	 	 	 	 
	
              Michael
                Fonstein

            	
              2,200

            	
              22.0%

            	 	
              2,200

            	
              21.1%

            
	
              Yakov
                Kogan

            	
              1,200

            	
              12.0%

            	 	
              1,200

            	
              11.5%

            
	
              Lena
                Feinstein

            	
              450

            	
              4.5%

            	 	
              450

            	
              4.3%

            
	
              George
                Stark

            	
              350

            	
              3.5%

            	 	
              350

            	
              3.4%

            
	
              Mike
                Chernov

            	
              85

            	
              0.9%

            	 	
              85

            	
              0.8%

            
	
              Katia
                Gurova

            	
              180

            	
              1.8%

            	 	
              180

            	
              1.7%

            
	
              Vadim
                Krivokrisenko

            	
              85

            	
              0.9%

            	 	
              85

            	
              0.8%

            
	 	 	 	 	 	 
	
              Outside
                Directors

            	 	 	 	 	 
	
              Andrei
                Gudkov

            	
              2,600

            	
              26.0%

            	 	
              2,600

            	
              24.9%

            
	 	 	 	 	 	 
	
              Institutional
                Shareholders

            	 	 	 	 	 
	
              ChemBridge
                Corporation

            	
              600

            	
              6.0%

            	
              444

            	
              1,044

            	
              10.0%

            
	
              Cleveland
                Clinic Foundation

            	
              2,250

            	
              22.5%

            	 	
              2,250

            	
              21.5%

            
	
              Totals

            	
              10,000

            	
              100.0%

            	
              444

            	
              10,444

            	
              100.0%

            

    

    

     

    (SIGNATURE
      PAGE TO STOCKHOLDERS
      AGREEMENT)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
EXHIBIT
      B

     

    INSTRUMENT
      OF ACCESSION

     

    The
      undersigned, The Cleveland Clinic Foundation, in connection with its acquisition
      of shares of capital stock of Cleveland BioLabs, Inc. (the “Company”),
      hereby agrees to become a party to and a Stockholder under that certain
      Stockholders Agreement, dated as of July 1, 2004 (the “Stockholders
      Agreement”)
      and,
      effective as of the date hereof shall be entitled to all of the rights and
      benefits, and subject to all of the obligations, of a Stockholder under the
      Stockholders Agreement. All of the securities of the Company owned, from time
      to
      time, by the undersigned, shall be subject to the restrictions on transfer
      set
      forth in the Stockholders Agreement.

     

    This
      Instrument of Accession shall take effect and shall become a part of said
      Stockholders Agreement upon its execution and its delivery to the Company by
      the
      undersigned.

     

    Executed
      as of the date set forth below under the laws of the State of
      Delaware.

     

    
      	 	Signature: ________________________
	 	 
	Date: _______________________ 	Address:   ________________________
	 	
              ________________________

            
	 	
              ________________________

            

    

     

     

    Received
      and accepted:

     

    Cleveland
      BioLabs, Inc.

     

    By:
      _______________________

     

    Date:
      ______________________EXCLUSIVE
      LICENSE AGREEMENT

     

    THIS
      EXCLUSIVE LICENSE AGREEMENT
      (“Agreement”) is made effective the first day of July, 2004 (“Effective Date”)
      by and between The Cleveland Clinic Foundation, a non-profit Ohio corporation
      (“CCF”), and Cleveland BioLabs, Inc., a corporation organized and existing under
      the laws of the State of Ohio (“CBL”).

     

    WHEREAS,
      CCF
      owns the Licensed Patents and CCF Technology which were developed at CCF prior
      to the Effective Date of this Agreement and, in addition may be further
      developed at CCF under the direction of Dr. Andrei Gudkov, an employee of CCF
      (“Doctor”),

     

    WHEREAS,
      CCF
      desires to have the Licensed Rights developed and used for the benefit of CBL,
      CCF and the public pursuant to the Development Plan and the Research and
      Development Milestones, and

     

    WHEREAS,
      CBL
      desires a license under all of the Licensed Rights.

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and agreements set forth below, the
      parties covenant and agree as follows:

     

    Section
      1. Definitions.

     

    For
      the
      purpose of this Agreement, the definitions of Appendix
      A
      shall
      apply.

     

    Section
      2. Grant.

     

    A. Exclusive
      License to CBL.

     

    Subject
      to the terms and conditions of this Agreement, CCF hereby grants to CBL an
      exclusive license under the Licensed Rights to: (a) make, have made, develop,
      use, import, export, distribute, market, promote, offer for sale and sell
      Products, (b) practice any method, process or procedure within the Licensed
      Patents or the CCF Technology, and (c) otherwise exploit the Licensed Rights
      within the Licensed Territory for use within the Licensed Field; and to have
      any
      of the foregoing performed on its behalf by a third party. This grant shall
      be
      subject to the rights retained by CCF set forth in Section 2.G.

     

    B. Affiliates.

     

    CBL
      may
      extend the right and license granted to CBL under Section 2.A to any Affiliate
      provided that such Affiliate consents to be bound by the terms of this Agreement
      to the same extent as CBL.

     

    C. Right
      to Sublicense.

     

    CBL
      and
      any Affiliate may grant and authorize sublicenses within the scope of the right
      and license granted to CBL pursuant to this Agreement, upon termination of
      this
      Agreement, any and all existing sublicenses shall survive; provided that such
      sublicensees promptly agree in writing to be bound by the terms of this
      Agreement.

     

    
      
        
        

      

      
        Page
          1 of
          30

        
          

        

      

      
        
        

      

    

    D. Rights
      of First Refusal to CBL.

     

    CBL
      will
      have an option to license additional inventions in the CCF Technology, which
      are
      not covered under Existing Patent Rights as follows:

     

    (i) CCF
      shall
      promptly provide CBL with a written, enabling disclosure (“Invention Disclosure
      Report”) with respect to any invention or discovery in the Licensed Field
      conceived or reduced to practice, alone or jointly with others, by Doctor,
      or by
      other CCF personnel arising out of or in direct connection with work in Doctor’s
      laboratory or under his direction (an “Option Invention”), during the term of
      this Agreement.

     

    (ii) CBL
      shall
      have the option to include any Option Invention within the CCF Technology for
      all purposes of this Agreement. To exercise such option with respect to any
      particular Option Invention, CBL shall notify CCF within sixty (60) days after
      receiving an Invention Disclosure Report and a written request from CCF as
      to
      whether CBL wishes to acquire a license to such Option Invention. If CBL elects
      to acquire such a license, the Option Invention shall be included within the
      License Rights and all worldwide patents rights disclosing the Option Invention
      shall be included with the Licensed Patents, both under this Agreement. CBL
      and
      CCF agree promptly to update Appendix
      G
      hereto
      upon request by either party from time to time, to reflect all patents and
      patent applications then within the Licensed Patents.

     

    E. Disclosure
      of Licensed Rights.

     

    As
      promptly as practicable following the date of this Agreement and on an ongoing
      basis thereafter, CCF will disclose to CBL all Licensed Rights which are
      licensed under this Agreement in such form as may be reasonable to describe
      the
      Licensed Rights to CBL clearly and economically.

     

    F. Control
      of Patent Prosecution by CBL.

     

    (i) CBL
      shall
      have primary responsibility to (a) file and prosecute any domestic and/or
      foreign patent application which discloses the Licensed Rights, and all
      additional applications with respect to Improvements, and (b) maintain any
      patent that may issue therefrom. All such patent applications and patents
      issuing therefrom shall be deemed to be patent applications and patents within
      the Licensed Patents and CCF shall have all right, title and interest therein,
      subject to the license granted to CBL under this Agreement. All costs and
      expenses of all such patent work, including preparation fees, filing fees,
      taxes, annuities, working fees, issuance fees, maintenance fees, and/or renewal
      and extension charges shall be paid by CBL.

     

    (ii) CBL
      shall
      give CCF a reasonable opportunity to review (a) the text of all such
      applications before filing, and (b) the content of any proposed responses to
      official actions of the United States Patent and Trademark Office and foreign
      patent offices during prosecution of such patent applications; and shall consult
      with CCF with respect thereto. For purposes of this Section (ii), “reasonable”
shall mean sufficiently in advance of any decision by CBL or any deadline
      imposed upon written response by CBL so as to allow CCF to meaningfully review
      such decision or written response and also provide comments to CBL in advance
      of
      such decision or deadline to allow comments of CCF to be considered and
      incorporated into CBL’s decision or written response.

     

    
      
        
        

      

      
        Page
          2 of
          30

        
          

        

      

      
        
        

      

    

    (iii) In
      consultation with CCF, CBL will file patent applications within the Licensed
      Patents, prosecute patent applications within the Licensed Patents, and maintain
      patents within the Licensed Patents, in each case pursuant to CBL’s rights under
      this Section 2.F in such countries as CBL may desire from time to time by notice
      to CCF. In the event CBL does not file for or continue prosecution of any such
      patent application within the Licensed Patents or maintain any such patent
      pursuant to CBL’s rights under this Section 2.F, in any country, (a) CBL shall
      notify CCF in writing pursuant to Section (iv) below, and in such event CCF
      may
      at its discretion pursue such filing, prosecution and/or maintenance, and (b)
      CBL’s license with respect to such patent application and/or such patent in such
      country shall terminate.

     

    (iv) CBL
      agrees to keep CCF informed in a timely manner of the contents, status and
      progress of all patent applications within the Licensed Patents filed and
      prosecuted by CBL, and to provide copies of such patent applications and
      documents relating thereto to CCF. CBL agrees to provide CCF with such
      information and documentation with respect to all Licensed Patents, as CCF
      shall
      reasonably request. CBL further agrees that CBL will not allow any such patent
      application or any patent that may issue therefrom to become abandoned until
      CCF
      has determined, and informed CBL, that CCF does not desire to continue
      prosecution or appeal(s) or maintenance of such patent application or patent
      in
      accordance with CCF’s rights pursuant to Section (iii) above; provided that
      CBL’s obligations to continue prosecution or appeals(s) or maintenance of any
      such patent application or patent will not extend beyond the three (3) month
      anniversary of CBL’s written notice to CCF of CBL’s election pursuant to Section
      (iii) above.

     

    (v) In
      the
      event that CBL elects not to file any patent application within the Licensed
      Patents, or thereafter elects not to continue prosecution of any such patent
      application, or elects not to maintain any patent that may issue therefrom
      pursuant to Section (iii) above, CCF shall have the right, at CCF’s option and
      expense and in its own make, to file for and prosecute such patent application
      and maintain such patent using patent counsel selected by CCF, and CBL shall
      cooperate therewith.

     

    G. Research
      Use Right.

     

    All
      licenses granted under Section 2 of this Agreement are subject to a reserved,
      irrevocable, exclusive, fully-paid up non-assignable license back to CCF to
      make
      and use, for academic or research purposes only, any applicable CCF Technology,
      the Licensed Patents and any Improvement or Innovation created by CBL or
      CCF.

     

    H. Right
      to Publish.

     

    Subject
      to Section 19, all licenses granted under this Agreement (including, without
      limitation, those set forth in Sections 2.A and 2.B) are subject to a reserved,
      irrevocable, exclusive, fully-paid up non-assignable license back to CCF to
      publish the general scientific findings from research related to the Licensed
      Rights.

     

    
      
        
        

      

      
        Page
          3 of
          30

        
          

        

      

      
        
        

      

    

    Section
      3. Development
      and Regulatory Approvals and Diligence Provisions.

     

    A. Development
      Plan.

     

    (i) CBL
      agrees to and warrants that it has the expertise necessary to independently
      evaluate the inventions of the Licensed Patents and to develop Products for
      sale
      in the commercial market and that all licenses, rights and benefits granted
      by
      CCF to CBL under this Agreement are specifically contingent upon CBL’s diligent
      and timely efforts to develop Products for the commercial market.

     

    (ii) CBL
      agrees to provide CCF within ninety (90) days of the execution and delivery
      of
      this Agreement with a Development Plan describing the steps necessary to allow
      the inventions of the Licensed Patents to be utilized to provide Products for
      sale in the commercial market. In addition, within sixty (60) days following
      the
      end of each semi-annual period of CBL’s fiscal year ending on June 30 and
      December 31 (each, a “Half-Year”) for the term of this Agreement, CBL will
      provide CCF with a written Development Report summarizing CBL’s product
      development activities since the last Development Report and any necessary
      adjustments to the Development Plan. All development activities and strategies
      and all aspects of product design and decisions to market and the like are
      entirely at the discretion of CBL, and CBL shall rely entirely on its own
      expertise with respect thereto. CCF’s review of CBL’s Development Plan is solely
      to verify the existence of CBL’s commitment to development activity and to
      assure compliance with CBL’s obligations to utilize the inventions of the
      Licensed Patents to commercialize Products for the marketplace, as set forth
      in
      Section 3.B. CCF reserves the right to audit CBL’s records relating to
      development of Products as required hereunder. Such record keeping and audit
      procedures shall be subject to the procedures and restrictions set forth for
      audit of the financial records of CBL in Section 6.

     

    B. Diligence
      Provisions.

     

    (i) CBL
      shall
      use commercially diligent efforts to bring one or more Products to market as
      soon as practical, consistent with sound and reasonable business practices
      and
      judgments. CBL shall be deemed to have satisfied its obligations under this
      Paragraph (i) if CBL has an ongoing and active research, development,
      manufacturing, marketing or sublicensing program, as appropriate, directed
      toward bringing such Product to market in a timely fashion. Any efforts of
      CBL’s
      sublicensees shall be considered efforts of CBL for the sole purpose of
      determining CBL’s compliance with its obligation under this Paragraph
      (i).

     

    (ii) If
      in
      CCF’s estimation, CBL is not fulfilling its obligations under Paragraph (i)
      above and CCF so notifies CBL in writing, CCF and CBL shall negotiate in good
      faith to revise the Exclusive License Agreement.

     

    C. CBL
      shall
      be solely responsible for securing any federal, including U.S. Food and Drug
      Administration (“FDA”), state, local or foreign Regulatory Approval necessary
      for commercial sale of Products. Each Regulatory Approval shall be made in
      CBL’s
      name or in the name of an Affiliate or lawful designee of CBL unless applicable
      law requires otherwise, or CCF and CBL otherwise agree that a particular
      approval be made in the name of CCF or an Affiliate or lawful designee of CCF.
      CCF agrees that, notwithstanding any such Regulatory Approval made in its name,
      CBL retains the exclusive rights to make, have made, import, export, use,
      distribute, promote, offer for sale and sell Products as granted to CBL in
      this
      Agreement. CCF will lend assistance on a reasonable basis to facilitate CBL’s
      acquisition of necessary Regulatory Approvals for commercial sale. Such
      assistance will include the provision to CBL as promptly as reasonably
      practicable of scientific and clinical data obtained by CCF relating to the
      Licensed Rights and the Products. CBL shall be responsible for reimbursing
      CCF
      for any reasonable direct costs associated with such activity.

     

    
      
        
        

      

      
        Page
          4 of
          30

        
          

        

      

      
        
        

      

    

    D. CBL
      shall, at its own expense, use reasonable commercial efforts to develop and
      obtain Regulatory Approvals for, and commercialize the Products in such
      countries in the Licensed Territory where, in CBL’s sole opinion, it is
      commercially desirable to do so. The parties acknowledge and agree that all
      business decisions, including, without limitation, decisions relating to the
      registration, manufacture, sate, commercialization, design, price, distribution,
      marketing and promotion of Products covered under this Agreement, shall be
      within the sole discretion of CBL. CCF acknowledges that CBL is in the business
      of developing, manufacturing, marketing and selling biopharmaceutical products.
      Nothing in this Agreement shall be construed as restricting CBL’s conduct of
      such business or imposing on CBL the duty to market and/or sell Products for
      which royalties are payable hereunder to the exclusion of, or in preference
      to,
      any other CBL product, or in any way other than in accordance with its normal
      commercial practices.

     

    Section
      4. Consideration.

     

    A. License
      Fees.

     

    In
      partial consideration of the rights and licenses granted by CCF to CBL under
      this Agreement, CBL agrees to issue to CCF within forty-five (45) days of the
      execution and delivery of this Agreement the aggregate number of shares of
      CBL
      stock set forth in and subject to the terms of the Common Stock Subscription
      Agreement set forth in Appendix
      B.

     

    B. Milestone
      Payments.

     

    For
      each
      Product developed by CBL, a CBL affiliate, or a joint venture in which CBL
      is
      involved, CBL shall pay to CCF Milestone Payments, creditable against Earned
      Royalties, and Sublicense Royalties, as development of a Product progresses
      through major developmental milestones as follows:

     

    (1) For
      Products limited to biodefense uses:

     

    (i) For
      any
      INDA filing for a Product, $50,000;

     

    (ii) For
      any
      Product entering Phase II clinical trials, $100,000;

     

    (iii) For
      any
      PLA (Product License Application) or NDA filing for a Product,
      $350,000; and

     

    (iv) Upon
      regulatory approval permitting any Product to be sold to the commercial market,
      $1,000,000; or

     

    
      
        
        

      

      
        Page
          5 of
          30

        
          

        

      

      
        
        

      

    

    (2) For
      all
      other Products:

     

    (i) For
      any
      INDA filing for a Product, $50,000;

     

    (ii) For
      any
      Product entering Phase II clinical trials, $250,000;

     

    (iii) For
      any
      Product entering Phase III clinical trials, $700,000;

     

    (iv) For
      any
      PLA (Product License Application) or NDA filing for a Product, $1,500,000;
      and

     

    (v) Upon
      regulatory approval permitting any Product to be sold to the commercial market,
      $4,000,000;

     

    provided
      that the applicable milestone due CCF under this Section has not accrued on
      another Product that is for the same (i) application; or (ii)
      target.

     

    C. Earned
      Royalties.

     

    (i) In
      further consideration of the rights and licenses granted by CCF to CBL under
      this Agreement, CBL agrees to pay CCF for each Product Sold in the commercial
      market by CBL, a CBL affiliate, or a joint venture in which CBL is involved,
      CBL
      agrees to pay to CCF as “Earned Royalties” a royalty calculated as a percentage
      of the Net Sales of Products in accordance with the terms and conditions of
      this
      Agreement. The royalty is deemed earned as of earlier of the date CBL receives
      payment for the sale, lease or other disposition of the Product for
      consideration or the date the Product is Sold to a consumer. Subject to the
      terms of this Agreement, the royalty shall remain fixed while this Agreement
      is
      in effect as follows: (a) for any Licensed Patent which is solely owned by
      CCF,
      a rate of two percent (2%); (b) for any Licensed Patent which is jointly owned
      by CCF and CBL, a rate of one percent (1%).

     

    (ii) Royalties
      due CCF under this Agreement shall be reduced by the amount of royalties, if
      any, paid to third parties by CBL, its Affiliates or sublicensees in order
      to
      make, use or sell the Products, pursuant to agreements entered into in good
      faith after the date of this Agreement with parties owning or controlling a
      patent containing patent claims which, but for such agreements, would bar the
      manufacture, use or sale of a Product derived from any of the Licensed
      Rights.

     

    (iii) The
      obligation to pay royalties under this Agreement shall be waived and excused
      to
      the extent that statutes, laws, codes or government regulations (including
      currency exchange regulations) of any foreign country in which Products are
      sold
      prevent such royalty payments by the seller of Products (whether CBL, its
      Affiliates or sublicensees). In the event that royalty payments to CCF are
      excused pursuant to this paragraph, the parties shall negotiate a mutually
      acceptable arrangement that preserves the benefit of this Agreement for each
      of
      the parties;

     

    (iv) If
      a
      compulsory license is granted to a third party with respect to a Product in
      any
      country in the Licensed Territory with a royalty rate lower than provided in
      this Section 4.C, then the royalty rate to be paid by CBL to CCF on the selling
      price in that country shall be reduced to the rate paid by the compulsory
      licensee.

     

    
      
        
        

      

      
        Page
          6 of
          30

        
          

        

      

      
        
        

      

    

    (v) In
      the
      event that more than one patent within the Licensed Patents is applicable to
      any
      Product subject to royalties under Section 4.C or Section 4.D, then only one
      royalty shall be paid to CCF as follows: (a) for more than one Licensed Patent,
      each of which is solely owned by CCF, the royalty shall be at the rate of a
      Licensed Patent solely owned by CCF, (b) for more than one Licensed Patent,
      one
      of which is jointly owned by CCF and CBL, the royalty shall be at the rate
      of a
      Licensed Patent jointly owned by CCF and CBL.

     

    (vi) The
      royalties payable under Section 4.C shall be paid on a country-by-country basis
      on each Product until the expiration of all Licensed Patents which cover such
      Product in such country.

     

    (vii) In
      the
      event that more than one patent within the Licensed Patents is applicable to
      any
      Product subject to royalties under Section 4.C or Section 4.D, then the Earned
      Royalties due CCF hereunder shall be equal to the amount calculated in Section
      4.C(i) multiplied by X divided by Y, where “X” is the number of applicable
      patents within the Licensed Patents that are solely owned by CCF and “Y” is the
      total number of applicable patents within the Licensed Patents.

     

    D. Sublicense
      Royalties.

     

    (i) In
      further consideration of the rights and licenses granted by CCF to CBL under
      this Agreement, CBL agrees to pay CCF for each Product Sold in the commercial
      market by a Sublicensee as “Sublicensed Royalties” a royalty calculated as a
      percentage of the royalties received from the Sublicenses equal to:

     

    (a) Where
      sublicenses have been granted by CBL prior to the filing of an INDA for a
      Product, under the sponsorship of CBL, CBL shall pay to CCF the following
      royalty rates for Product Sales: (1) for the sublicense of Licensed Patents
      solely owned by CCF, thirty-five percent (35%) of any and all upfront
      Sublicensing Fees, and thirty-five percent (35%) of all royalties received
      from
      the Sublicensee; or (2) for any sublicense of Licensed Patents which are jointly
      owned by CCF and CBL, seventeen and one half percent (17 1/2 %) of any and
      all
      upfront Sublicensing Fees, and seventeen and one half percent (17 1/2 %) of
      all
      royalties received from the Sublicensee.

     

    (b) Where
      sublicenses have been granted after filing of an INDA for a Product, under
      the
      sponsorship of CBL, but prior to final approval of the relevant PLA/NDA, CBL
      shall pay to CCF the following royalty rates for Product Sales: (1) for the
      sublicense of Licensed Patents solely owned by CCF, twenty percent (20%) of
      any
      and all upfront Sublicensing Fees, and twenty percent (20%) of all royalties
      received from the Sublicensee; or (2) for any sublicense of Licensed Patents
      which are jointly owned by CCF and CBL, ten percent (10%) of any and all upfront
      Sublicensing Fees, and ten percent (10%) of all royalties received from the
      Sublicensee.

     

    (c) Where
      sublicenses have been granted after final approval of the relevant PLA/NDA
      for a
      Product, CBL shall pay to the following royalty rates for Product Sales: (1)
      for
      the sublicense of Licensed Patents solely owned by CCF, ten percent (10%) of
      any
      and all upfront Sublicensing Fees, and ten percent (10%) of all royalties
      received from the Sublicensee; or (2) for any sublicense of Licensed Patents
      which are jointly owned by CCF and CBL, five percent (5%) of any and all upfront
      Sublicensing Fees, and five percent (5%) of all royalties received from the
      Sublicensee.

     

    
      
        
        

      

      
        Page
          7 of
          30

        
          

        

      

      
        
        

      

    

    (ii) “Sublicense
      Fees” shall mean all cash license fees received by CBL or an Affiliate upon
      execution of a sublicense between CBL or an Affiliate with a Sublicensee
      relating to Products (net of withholding taxes or other tax-related reductions
      in accordance with Section 4.F(iii) herein), or equity (including options to
      purchase equity) in the Sublicensee that CBL or an Affiliate receives upon
      execution of such a sublicense in lieu of such a cash license fee. It is
      understood that Sublicense Fees shall not include royalties, advances against
      future royalties, Product development funds, equity investments, or scientific
      benchmark payments or payments for past research expenditures relating to
      development of Products. In addition, it is understood that this Section 4.D
      shall not be deemed to require CBL to share with CCF any cash or equity received
      by CBL in connection with an acquisition by a third party of all or
      substantially all of the business or assets of CCF to which this Agreement
      pertains.

     

    E. Accrual
      of Payments.

     

    Amounts
      due to CCF under Sections 4.B, 4.C, and 4.D. of this Agreement will be accrued,
      without interest, until such time as CCF’s equity ownership in CBL falls below
      five percent (5%) of the total outstanding shares of CBL on a fully-diluted
      basis or CBL has received more than thirty million dollars ($30,000,000) in
      funding and/or revenues from non-CCF sources; provided however that any accrued
      accounts will become due upon (i) liquidation of CBL, winding-up of the CBL’s
      operations; (ii) termination of this Agreement; or (iii) to the extent such
      amounts due to CCF are related to a particular patent application or patent
      within the Licensed Patents for which CBL exercises its rights under Section
      7.D.

     

    F. Accounting;
      Payments.

     

    (i) Subject
      to Section 4.E, amounts owing to CCF under Sections 4.B, 4.C, and 4.D shall
      be
      paid on a semi-annual basis, with such amounts due and received by CCF on or
      before the sixtieth (60th) day following the end of each Half-Year in which
      such
      amounts were earned. The balance of any amounts, which remain unpaid more than
      thirty (30) days after they are due to CCF, shall accrue interest until paid
      at
      the rate of the lesser of one percent (1%) per month or the maximum amount
      allowed under applicable law. However, in no event shall this interest provision
      be construed as a grant of permission for any payment delays.

     

    (ii) Except
      as
      otherwise directed, all amounts owing to CCF under this Agreement shall be
      paid
      in U.S. dollars to CCF at the address provided in Section 17.i. If any currency
      conversion shall be required in connection with the payment of royalties
      hereunder, such conversion shall be made at the rate used by CBL in calculating
      CBL’s own revenues for financial reporting purposes.

     

    (iii) Any
      withholding or other tax that CBL or Affiliate are required by law to withhold
      shall be deducted from said royalties and promptly paid to the taxing authority.
      If royalties paid to CBL or Affiliate by a sublicensee on Net Sales of Products
      are reduced for withholding or similar taxes, the Sublicense Royalties due
      CCF
      shall equal the amount calculated in Section 4.D multiplied by (1-X), where
“X”
equals the total percentage of Net Sales payable as any withholding or other
      tax. In regard to any tax so deducted, CBL shall furnish CCF with proper
      evidence of the taxes paid.

     

    
      
        
        

      

      
        Page
          8 of
          30

        
          

        

      

      
        
        

      

    

    (iv) A
      full
      accounting showing how any amounts owing to CCF under Section 4.C have been
      calculated shall be submitted to CCF on the date of each such payment. Such
      accounting shall be on a per-country and product line, model or trade name
      basis
      and shall be summarized either on the form shown in Appendix
      C
      of this
      Agreement or in a reporting format that contains substantially similar
      information. In the event no payment is owed to CCF, a statement setting forth
      that fact shall be supplied to CCF.

     

    Section
      5. Representations
      and Warranties.

     

    A. CCF
      represents and warrants that:

     

    (i) except
      to
      the extent otherwise provided under Section 15 of this Agreement with respect
      to
      U.S. Government interests, it is the owner of the Licensed Rights free and
      clear
      of any lien, encumbrance, royalty or other payment obligation, and, to the
      best
      of its actual knowledge, without any conflict with or infringement of the rights
      of any third party;

     

    (ii) CCF
      has
      all requisite authority to execute and deliver this Agreement and perform its
      obligations hereunder, including, without limitation, the right to grant the
      licenses granted to CBL under this Agreement;

     

    (iii) it
      has
      not previously assigned, transferred, conveyed or otherwise encumbered any
      of
      its right, title and interest in the Licensed Rights;

     

    (iv) to
      the
      best of its actual knowledge, there are no third party pending patent
      applications which, if issued, cover the development, manufacture, use or sale
      of Products;

     

    (v) there
      are
      no claims, judgments or settlements against or owed by CCF or pending or, to
      the
      best of its actual knowledge, threatened claims or litigation relating to the
      Licensed Rights;

     

    (vi) there
      are
      no collaborative, licensing, transfer, supply, distributorship or marketing
      agreements or arrangements or other similar agreements to which it or any of
      its
      Affiliates are party relating to any of the Licensed Rights or Products;
      and

     

    (vii) neither
      it nor its Affiliates shall enter into any oral or written agreement or
      arrangement that would be inconsistent with its obligations under this
      Agreement;

     

    (viii) to
      the
      best of its knowledge, CCF does not own any rights in any other patent or patent
      application, the claims of which would dominate the claims of a patent or patent
      application within the Licensed Patents as applied to the Licensed Field, or
      that claim any invention of Doctor relating to the Licensed Field.

     

    
      
        
        

      

      
        Page
          9 of
          30

        
          

        

      

      
        
        

      

    

    However,
      nothing in this Agreement shall be construed as:

     

    (i) a
      warranty or representation by CCF as to the validity or scope of any of the
      Licensed Patents;

     

    (ii) except
      to
      the extent provided above in this Section 5.A, a warranty or representation
      that
      anything made, used, sold or otherwise disposed of under the license granted
      in
      this Agreement will or will not infringe patents of third parties;
      or

     

    (iii) an
      obligation to furnish any know-how not provided in the Licensed Rights or any
      services, other than those specified in this Agreement.

     

    B. CCF
      MAKES
      NO REPRESENTATIONS, EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR
      IMPLIED, AND ASSUMES NO RESPONSIBILITIES WHATSOEVER WITH RESPECT TO USE, SALE,
      OR OTHER DISPOSITION BY CBL OR ITS VENDEES OR OTHER TRANSFEREES OF PRODUCTS
      INCORPORATING OR MADE BY USE OF INVENTIONS LICENSED UNDER THIS
      AGREEMENT.

     

    C. CBL
      represents and warrants that Products produced under the license granted herein
      shall be manufactured in accordance with all material respects with applicable
      federal, state and local laws, rules and regulations, including, without
      limitation, in accordance in all material respects with all applicable rules
      and
      regulations of the FDA.

     

    Section
      6. Recordkeeping.

     

    A. CBL
      shall
      keep books and records sufficient to verify the accuracy and completeness of
      CBL’s accounting referred to above, including without limitation inventory,
      purchase and invoice records relating to the Products or their manufacture.
      In
      addition, CBL shall maintain documentation evidencing that CBL is in fact
      pursuing development of Products as required herein. Such documentation may
      include, but is not limited to, invoices for studies advancing development
      of
      Products, laboratory notebooks, internal job cost records, and filings made
      to
      the Internal Revenue Service to obtain tax credit, if available, for research
      and development of Products. Such books and records shall be preserved for
      a
      period not less than three (3) years after they are created during and after
      the
      term of this Agreement.

     

    B. CBL
      shall
      take all reasonable steps necessary so that the accounting firm representing
      CBL, or any other registered CPA mutually agreeable to CCF and CBL, may within
      sixty (60) days of request by CCF review and copy all the books and records
      to
      allow CCF to verify the accuracy of CBL’s royalty reports and Development
      Reports. Such review shall be performed at the expense of CCF upon reasonable
      notice and during regular business hours at a single U.S. location of CBL’s
      choice.

     

    C. If
      a
      royalty payment deficiency is determined, CBL shall pay the royalty deficiency
      outstanding within thirty (30) days of receiving written notice thereof, plus
      interest on outstanding amounts as described in Section 4.F(i). If a royalty
      payment deficiency for a calendar year exceeds the lesser of five percent (5%)
      of the royalties paid for that year or $50,000, then CBL shall be responsible
      for paying CCF’s reasonable out-of-pocket expenses incurred with respect to such
      review, but such payment shall not exceed the amount of the
      deficiency.

     

    
      
        
        

      

      
        Page
          10
          of 30

        
          

        

      

      
        
        

      

    

    Section
      7. License
      Term and Termination Provisions.

     

    A. The
      term
      (the “Term”) of this license shall begin on the date of this Agreement and
      continue until this Agreement is terminated as provided herein or the payment
      of
      Earned Royalties under Section 4.C, once begun, ceases for more than one- (1)
      year other than as a result of the circumstances described in Section 7.0 or
      due
      to reduction or off-set provisions in this Agreement.

     

    B. Any
      and
      all licenses granted under this Agreement are strictly subject to CBL’s diligent
      efforts to commercialize Products. CCF may, at its option terminate this
      Agreement ninety days (90) after giving written notice of termination to CBL
      during the continuation of any of the following events by CBL:

     

    (i) failure
      to achieve the mutually-agreed upon objectives set forth in the Development
      Plan, as set forth in Appendix
      D
      attached
      hereto and subject to the Research and Development Milestones, as set forth
      in
Appendix
      F
      attached
      hereto;

     

    (ii) failure
      to timely pay any monies due to CCF;

     

    (iii) failure
      to timely submit to CCF any Development Report;

     

    (iv) commission
      daily breach in any material respect of any other covenant herein
      contained;

     

    (v) committing
      any act of bankruptcy, becoming insolvent, or unable to pay its debts as they
      become due, filing a petition under any bankruptcy or insolvency act, or having
      any such petition filed against it which is not dismissed within sixty- (60)
      days; or

     

    (vi) offering
      any component of the Licensed Rights to its creditors or any other third party
      in violation of this Agreement;

     

    provided
      that CBL may avoid such termination if before the end of such ninety (90) day
      period CBL notifies CCF in writing that such breach or default has been cured.
      However, if CBL disputes such breach in writing within such ninety (90) day
      period, CCF shall not have the right to terminate this Agreement unless and
      until a tribunal of competent jurisdiction has determined that this Agreement
      was materially breached. Furthermore, this paragraph shall not suspend any
      obligation of CBL to compensate CCF for any undisputed amount, as provided
      for
      under any term of this Agreement, during the pendency of any determination
      of
      breach.

     

    C. Notwithstanding
      the foregoing, the obligations of CBL with respect to the commercialization
      of
      Products under this Agreement are expressly conditioned upon the continuing
      absence of a materially adverse condition which results in a delay in the
      commercialization of the Products, including, but not limited to, a
      substantially adverse condition or event relating to the safety or efficacy
      of a
      Product or unfavorable pricing, pricing reimbursement, labeling or lack of
      Regulatory Approval, and the obligation of CBL to develop or market any such
      Product, and CCF’s right to terminate this Agreement set forth in this Section
      7.C, shall be delayed, tolled or suspended so long as such condition or event
      exists (i) as mutually agreed by CBL and CCF; or (ii) as determined by
      arbitration pursuant to Section 22.

     

    
      
        
        

      

      
        Page
          11
          of 30

        
          

        

      

      
        
        

      

    

    D. CBL
      may
      terminate this Agreement in its entirety or as to any particular patent
      application or patent within the Licensed Patents at any time by giving at
      least
      ninety- (90) days written notice of such termination to CCF. A brief statement
      of the reasons for termination shall accompany such a notice. From and after
      the
      effective date of a termination under this Paragraph with respect to a
      particular patent application or patent, such patent application and patent
      in
      the particular country shall cease to be within the Licensed Patents for all
      purposes of this Agreement. Upon a termination of this Agreement in its entirety
      under this Paragraph, all rights and obligations of CBL and CCF shall terminate,
      except as provided in Section 7.F.

     

    E. Upon
      termination of this Agreement, CBL’s rights to the Licensed Rights or any
      Improvement granted hereunder and all use thereof shall terminate and any and
      all rights in the Licensed Patents and the CCF Technology shall revert back
      to
      CCF and, if requested by CCF, CBL shall destroy or return, at CCF’s sole option,
      all copies of any media or materials which are the property of CCF, including
      but not limited to all documentation, notes, plans, drawings, copies, samples
      and computer code. Notwithstanding the termination of this Agreement, CBL shall
      remain obligated to provide an accounting for and to pay royalties earned up
      to
      the date of the termination, subject to Section 4.C and all rights granted
      to
      CCF under this Agreement to any extant Innovations or Improvements shall remain
      in effect.

     

    F. Expiration
      or termination of the Agreement shall not relieve the parties of any obligation
      accruing prior to such expiration or termination, and the provisions of Section
      2.B, the last sentence of Section 2.D.i, and Sections 2.F, 2.G, 7.E, 7.F, 16,
      19, 22 and 23 shall survive the expiration or termination of this Agreement
      and
      remain in full force and effect regardless of the cause of termination. Any
      expiration or early termination of this Agreement shall be without prejudice
      to
      the rights of either party against the other accrued or accruing under this
      Agreement prior to termination.

     

    G. Waiver
      by
      either party of a single breach or default, or a succession of breaches or
      defaults, shall not deprive such party of any right to terminate this Agreement
      in the event of any subsequent breach or default.

     

    H. In
      the
      event that this Agreement is terminated for any reason, CBL, Affiliates and
      customers of either CBL or an Affiliate may, after the effective date of such
      termination, sell or otherwise dispose of all Products and parts therefor that
      CBL, Affiliates and customers of either CBL or an Affiliate may have on hand
      on
      the effective date of such termination, subject to CBL’s payment to CCF of
      royalties pursuant to Section 4 of this Agreement. Upon termination of this
      Agreement for any reason, any sublicense granted by CBL or an Affiliate, if
      any,
      under this Agreement shall survive, provided that the sublicensee promptly
      agrees in writing to be bound by the applicable terms of this
      Agreement.

     

    
      
        
        

      

      
        Page
          12
          of 30

        
          

        

      

      
        
        

      

    

    Section
      8. Assignability.

     

    This
      Agreement may not be assigned by CBL without the prior written consent of CCF,
      which will not be unreasonably withheld provided that such assignee or
      transferee promptly agrees in writing to be bound by the terms and conditions
      of
      this Agreement. CCF may assign its right to receive payments
      hereunder.

     

    Section
      9. Contest
      of Validity.

     

    In
      the
      event CBL or a third party contests the validity of any Licensed Patent, CBL
      shall continue to pay royalties with respect to that patent as if such contest
      were not underway to an escrow agent mutually agreed to by the parties, to
      be
      held in a separate interest bearing account in accordance with the terms of
      a
      mutually acceptable escrow agreement between the parties in form and substance
      as is customary for such purposes, until such time as a court of last resort
      adjudicates the validity or invalidity of such patent. If such court of last
      resort confirms the invalidity or unenforceability of such patent, then all
      royalties previously paid by CBL into escrow pursuant to this paragraph,
      together with all interest accrued thereon and any other amounts earned in
      respect thereof (collectively, the “Escrow Funds”), shall be promptly paid to
      CBL. If such court of last resort confirms the validity or enforceability of
      such patent, then the Escrow Funds shall be promptly paid to CCF.

     

    Section
      10. Protection
      of Licensed Rights.

     

    CCF
      and
      CBL agree to assist each other to the extent necessary to protect any of CCF’s
      or CBL’s rights in the Licensed Rights. CCF and CBL shall notify each other in
      writing of any infringements by others of the Licensed Rights. Following receipt
      of such notification, CCF and CBL shall engage in meaningful consultation as
      to
      the means of preventing such infringements and shall cooperate in any
      preliminary steps, short of filing a lawsuit, including but not limited to
      preliminary investigations, engagement of counsel and/or sending
      cease-and-desist letters, that CCF and CBL shall mutually determine are required
      prior to the filing of any lawsuit. Pursuant to Section 11 below, CBL may
      commence or prosecute any claims or suits in its own name or join CCF as a
      party
      thereto. However, should CBL decline or fail to commence or prosecute such
      claims or suits, CCF may itself institute such claims or suits in its own name
      and join CBL as a party thereto, except that CCF shall not institute such claims
      or suits without first obtaining the written consent of CBL to do so, which
      consent shall not be unreasonably withheld, conditioned or delayed. CCF and
      CBL
      shall cooperate fully in any claims or suits commenced and prosecuted by either
      party pursuant to this Section 10.

     

    Section
      11. Enforcement
      of Licensed Rights.

     

    A. CBL
      has
      the right, but not the obligation, to defend the Licensed Rights against
      infringement, interference or opposition by other parties in any country,
      including by bringing any legal action for infringement or opposition or
      defending any counterclaim of invalidity, notice of opposition or action of
      a
      third party for declaratory judgment of non-infringement or interference. CBL
      may bring or defend, or subject to CCF’s approval, which approval shall not be
      unreasonably withheld, conditioned or delayed, may settle any such actions
      solely at its own expense and through counsel of its selection; provided,
      however, that CCF shall be entitled in each instance to participate through
      counsel of its selection and at its own expense. CCF has no obligation or
      responsibility with respect to any such infringement action or interference
      except to provide reasonable assistance to CBL as requested, and CBL shall
      reimburse CCF for its reasonable out-of-pocket expenses in connection with
      any
      such assistance. CBL shall be entitled to credit against royalties payable
      to
      CCF hereunder fifty percent (50%) of its out-of-pocket costs and expenses
      incurred in connection with such action, including, without limitation, legal
      fees, expert fees and related costs and expenses, at a rate not to exceed fifty
      percent (50%) of the royalties due CCF in any Half Year. Any amounts entitled
      to
      be so credited and not previously credited may be carried forward. In the event
      of a favorable settlement or award of damages, the amount received shall be
      shared equally by CCF and CBL, provided that CBL may deduct from CCF’s share any
      uncredited share of the above expenses. CCF’s sole financial obligation with
      respect to such litigation will be limited to the right of CBL to credit fifty
      percent (50%) of its costs and expenses against royalties as provided
      herein.

     

    
      
        
        

      

      
        Page
          13
          of 30

        
          

        

      

      
        
        

      

    

    B. In
      the
      event CBL is permanently enjoined from exercising any of the License Rights
      granted hereunder pursuant to an infringement action brought by a third party,
      or if CBL elects not to undertake the defense or settlement of such a claim
      of
      alleged infringement for a period of six (6) months from notice of such claim
      or
      suit, then CBL’s rights and obligations under this Agreement with respect to
      said License Rights will terminate upon written notice of CCF, subject to
      Section 7 of this Agreement. If CBL elects to defend any such action, then
      CBL
      shall be entitled to credit against royalties payable to CCF hereunder fifty
      percent (50%) of its out-of-pocket costs and expenses incurred in connection
      with such action at a rate not to exceed fifty percent (50%) of the royalties
      due CCF in any Half Year. Any amounts entitled to be so credited and not
      previously credited may be carried forward.

     

    Section
      12. Patent
      Marking.

     

    CBL
      shall
      mark all Products or Products’ packaging with the appropriate patent number
      reference in compliance with the requirements of United States law (see 35
      U.S.C. §287).

     

    Section
      13. Product
      Liability and Conduct of Business.

     

    A. CBL
      shall, at all times during the term of this Agreement and thereafter, indemnify,
      defend and hold CCF and its respective trustees, officers, employees, students,
      and agents harmless against all claims and expenses, including legal expenses
      and reasonable attorneys fees, arising out of the death of or injury to any
      person or persons or out of any damage to property and against any other claim,
      proceeding, demand, expense and liability of any kind whatsoever (other than
      infringement claims) resulting from the production, manufacture, sale, use,
      lease, consumption or advertisement of Products arising from any right or
      obligation of CBL hereunder. CCF at all times reserves the right to select
      and
      retain counsel of its own to represent CCF’s interests in any such action,
      subject to CBL’s sole control of the defense thereof and all related settlement
      negotiations.

     

    B. Neither
      party shall be liable to the other party for any indirect, special,
      consequential, or other damages whatsoever, whether grounded in tort (including
      negligence), strict liability, contract or otherwise. Except as provided in
      this
      Agreement, CCF shall not have any responsibilities or liabilities whatsoever
      with respect to Product(s).

     

    
      
        
        

      

      
        Page
          14
          of 30

        
          

        

      

      
        
        

      

    

    C. CBL
      shall
      at all times comply in all material respects, through insurance or
      self-insurance, with all statutory workers’ compensation and employers’
liability requirements covering any and all employees with respect to activities
      performed under this Agreement.

     

    D. CBL
      warrants that it now maintains and will continue to maintain liability insurance
      coverage that, based on industry experience, it believes to be appropriate
      to
      the risk involved in marketing the Products subject to this Agreement. Within
      ninety (90) days after the execution of this Agreement and thereafter annually
      between January 1 and January 31 of each year, CBL will present evidence to
      CCF
      that such coverage is being maintained. In addition, CBL shall provide CCF
      with
      at least ten (10) days prior written notice of any change in or cancellation
      of
      the insurance coverage.

     

    Section
      14. Use
      of
      Names.

     

    CBL
      shall
      not use the name, logo, likeness, trademarks, image or other intellectual
      property of CCF for any advertising, marketing, endorsement or any other
      purposes without the specific prior written consent of an authorized
      representative of CCF as to each such use. For purposes of the foregoing
      provision, an authorized representative of CCF means a representative of CCF’s
      Department of Media Relations and/or CCF’s Office of General
      Counsel.

     

    Section
      15. United
      States Government Interests.

     

    It
      is
      understood that the United States Government (through one or more of its
      agencies or otherwise) may have funded research resulting in the inventions
      embodied in the Licensed Patents, and if so, the United States Government may
      have certain rights relative thereto under the provisions of 35 U.S.C. §200-212
      and applicable regulations of Chapter 37 of the Code of Federal Regulations.
      This Agreement shall be subject to such rights under any such Government funding
      agreement, applicable law or regulation. CCF represents and warrants that it
      (i)
      has complied and agrees to continue to comply during the term of this Agreement
      with all laws and regulations applicable to such a Government funding agreement,
      and (ii) has done and will continue to do all acts necessary to retain ownership
      of all inventions within the Licensed Rights, including disclosing subject
      inventions to the Government and electing to retain title in subject
      inventions.

     

    Section
      16. Miscellaneous.

     

    This
      Agreement shall be governed, construed, and interpreted in all respects in
      accordance with the laws of the State of Ohio without regard to that state’s
      conflict of laws provisions. The parties hereto are independent contractors
      and
      not joint venturers or partners.

     

    
      
        
        

      

      
        Page
          15
          of 30

        
          

        

      

      
        
        

      

    

    Notices.

     

    Any
      notice required to be given pursuant to the provisions of this Agreement shall
      be in writing and shall be deemed to have been given at the earlier of the
      time
      when actually received as a consequence of any effective method of delivery,
      including but not limited to hand delivery, transmission by telecopier, or
      delivery by a professional courier service or the time when sent by certified
      or
      registered mail addressed to the party for whom intended at the address below
      or
      at such changed address as the party shall have specified by written notice,
      provided that any notice of change of address shall be effective only upon
      actual receipt.

     

    
      	 	
              (i)

            	
              If
                from CBL to CCF:

            

    

     

    Communications
      of a scientific nature to:

     

    Andrei
      Gudkov, Ph.D.

    The
      Cleveland Clinic Foundation

    Lerner
      Research Institute / NC-20

    9500
      Euclid Avenue

    Cleveland,
      OH 44195

     

    Communications
      relating to use of name, intellectual property and/or licensing
      to:

     

    Commercialization
      Counsel

    CCF
      Innovations / ND20

    9500
      Euclid Avenue

    Cleveland,
      OH 44195

     

    Payments
      to:

     

    The
      Cleveland Clinic Foundation

    Re:
      CCF-CBL License

    P.O.
      Box
      931532

    Cleveland,
      OH 44193-5007

    Attn:
      Ms.
      Caryn Cua

     

    The
      CCF
      Federal Tax ID Number is 34-0714585

     

    
      	 	
              (ii)

            	
              If
                from CCF to CBL:

            

    

     

    Cleveland
      Biolabs, Inc.

    10265
      Carnegie Avenue

    Cleveland,
      Ohio 44106

    Attn:
      Michael Fonstein

     

     

    
      
        
        

      

      
        Page
          16
          of 30

        
          

        

      

      
        
        

      

    

     

    With
      a
      copy to:

     

    Howrey
      Simon Arnold & White

    321
      N.
      Clark Street

    Suite
      3400

    Chicago,
      Illinois 60610

    Fax:
      (312) 595-2250

    Tel:
      (312) 595-1239

    Attn:
      Teddy C. Scott, Jr.

     

    Section
      17. Integration.

     

    This
      Agreement constitutes the full understanding between the parties with reference
      to the subject matter hereof, and no statements or agreements by or between
      the
      parties, whether orally or in writing, except as provided for elsewhere in
      this
      Section 18, made prior to or at the signing hereof, shall vary or modify the
      written terms of this Agreement. Neither party shall claim any amendment,
      modification, or release from any provisions of this Agreement by mutual
      agreement, acknowledgment, or otherwise, unless such mutual agreement is in
      writing, signed by the other party, and specifically states that it is an
      amendment to this Agreement.

     

    Section
      18. Severability.

     

    If
      any
      provision of this Agreement is held to be invalid, the other provisions will
      not
      be affected to the greatest extent possible consistent with the parties’
intent.

     

    Section
      19. Confidentiality.

     

    A. CBL
      acknowledges that the CCF Technology is based upon and includes valuable trade
      secrets and confidential information of CCF, the development of which reflects
      the investment of considerable expertise and other resources. CCF acknowledges
      that CBL may disclose valuable confidential information to CCF pursuant to
      the
      terms of this Agreement. Accordingly, both parties agree to keep any
      Confidential Information and the CCF Technology in confidence and not to use
      or
      disclose the same except in pursuance of the terms of this
      Agreement.

     

    B. Both
      parties agree to keep any information identified as confidential by the
      disclosing party, confidential using methods at least as stringent as each
      party
      uses to protect its own confidential information. “Confidential Information”
shall include CBL’s Development Plan and development reports, CBL’s books and
      records maintained pursuant to Section 6, all CCF Technology, Improvements,
      the
      Licensed Rights and all information concerning them and any other information
      marked confidential or accompanied by correspondence indicating such information
      is confidential exchanged between the parties hereto. Except as may be
      authorized in advance in writing by the other party, each party shall grant
      access to the Confidential Information only to its own employees involved in
      research relating to the CCF Technology and/or manufacture or marketing of
      the
      Products, and each party shall require such employees to be bound by this
      Agreement as well. Each party agrees not to use any Confidential Information
      to
      its advantage and the other party’s detriment, including, but not limited to, in
      the case of CBL, claiming priority to any application serial numbers of any
      Licensed Patents in any patent prosecution by CBL, The confidentiality and
      use
      obligations set forth above apply to all or any part of the Confidential
      Information disclosed hereunder except to the extent that:

     

    
      
        
        

      

      
        Page
          17
          of 30

        
          

        

      

      
        
        

      

    

    (i) the
      recipient party can show by written record that it possessed the information
      prior to its receipt from the other party;

     

    (ii) the
      information was already available to the public or became so through no fault
      of
      the recipient party;

     

    (iii) the
      information is subsequently disclosed to the recipient party by a third party
      that has the right to disclose it free of any obligations of the disclosing
      party; or

     

    (iv) the
      information is required by law or regulation to be disclosed; provided, however,
      that the party subject to such disclosure requirement has provided written
      notice to the other party promptly to enable such other party to seek a
      protective order or otherwise prevent disclosure of such Confidential
      Information.

     

    C. The
      parties agree to keep the nature, existence and terms of this Agreement
      confidential until first publicly announced by the parties pursuant to a joint
      press release mutually approved by the parties. The content and timing of all
      press releases and similar public communications regarding this Agreement and
      the subject matter hereof will be mutually agreed to in writing by the parties,
      and neither party may make or issue any public announcement or press release
      that refers to the other party or describes any aspect of this Agreement without
      having first received the prior written consent of the other party.
      Notwithstanding the foregoing, either party may make any public announcement
      or
      disclosure that it reasonably believes is required by law, rule or regulation
      of
      any governmental authority or other regulatory body (including, without
      limitation, the SEC or the FDA).

     

    D. Notwithstanding
      the provisions of this Section 19, CBL shall have the right to disclose
      Confidential Information, including CCF Technology, to its sublicensees, agents,
      consultants, Affiliates or other third parties (collectively, “Agents”) in
      accordance with this paragraph. Such disclosure shall be limited only to those
      Agents involved in the research, development, manufacturing, marketing or
      promotion of Products. Any such Agents must agree in advance and in writing
      to
      be bound by confidentiality and non-use obligations substantially similar to
      those contained in this Agreement. In addition, CBL and its Agents may make
      disclosure of such Confidential Information of CCF as may be necessary in order
      to obtain or maintain any Regulatory Approvals, including, in connection with
      clinical trials, regulatory applications and filings, and
      otherwise.

     

    Section
      20. Anti-Kickback
      Statute and Stark Law Compliance.

     

    By
      entering into this Agreement, the parties specifically intend to comply with
      all
      applicable laws, rules and regulations, including (i) the federal anti-kickback
      statute (42 U.S.C. § 1320a-7b) and the related safe harbor regulations; and (ii)
      the Limitation on Certain Physician Referrals, also referred to as the “Stark
      Law” (42 U.S.C. §1395nn). Accordingly, no part of any consideration paid
      hereunder is a prohibited payment for the recommending or arranging for the
      referral of business or the ordering of items or services; nor are the payments
      intended to induce illegal referrals of business. In the event that any part
      of
      this Agreement is determined to violate federal, state, or local laws, rules,
      or
      regulations, the parties agree to negotiate in good faith revisions to the
      provision or provisions that are in violation. In the event the parties are
      unable to agree to new or modified terms as required to bring the entire
      Agreement into compliance, either party may terminate this agreement upon sixty-
      (60) days prior written notice to the other party.

     

    
      
        
        

      

      
        Page
          18
          of 30

        
          

        

      

      
        
        

      

    

    Section
      21. Eligibility
      to Participate in Federal Health Care Programs.

     

    By
      signing this agreement, CBL hereby represents and warrants the following: (a)
      that is has not been debarred, excluded, suspended or otherwise determined
      to be
      ineligible to participate in any federal health care programs (collectively,
      “Debarment” or “Debarred”, as applicable); and (b) that it shall not knowingly
      employ or contract with, with or without compensation, any individual or entity
      (singularly or collectively, “Agent”) listed by a federal agency as Debarred. To
      comply with this provision, CBL shall make reasonable inquiry into the status
      of
      any Agent contracted or arranged by CBL to fulfill the terms of this Agreement.
      In the event that CBL and/or Agent either (i) becomes Debarred or (ii) receives
      notice of action or threat of action with respect to its Debarment during the
      term of this Agreement, CBL agrees to notify CCF immediately. CBL agrees to
      timely notify CCF in the event that CBL has identified or reasonably suspects
      potential violations associated with its performance under this Section, and
      the
      nature of such potential violation, to enable CCF to take prompt corrective
      action. Further, in the event that CBL or Agent becomes Debarred as set forth
      above and such Debarment shall have become final and non-appealable, this
      Agreement relative to such entity or individual’s participation hereunder may be
      terminated upon written notice.

     

    Section
      22. Alternative
      Dispute Resolution.

     

    A. The
      parties shall attempt in good faith to resolve any dispute arising out of or
      relating to this Agreement promptly between officials who have authority to
      settle the controversy.

     

    B. If
      the
      matter has net been resolved by negotiation within thirty- (30) days, the
      parties shall attempt in good faith to settle the dispute by mediation under
      the
      then-current rules of the American Arbitration Association (“AAA”). The neutral
      third party will be selected from the panel of neutrals of the AAA in accordance
      with the selection process of the AAA.

     

    C. If
      the
      matter has not been resolved by mediation within sixty- (60) days of the
      initiation of such procedure, or if either party will not participate in a
      mediation, the dispute shall be settled by arbitration in accordance with the
      then-current Commercial Rules of Arbitration of the AAA, by a sole arbitrator
      selected from the AAA panel of neutrals in accordance with its procedure for
      the
      selection of arbitrators. The United States Arbitration Act, 9 U.S.C. §1-16,
      shall govern the arbitration, and any court having jurisdiction thereof may
      enter judgment upon the award rendered by the arbitrator. The parties agree
      that
      any mediation or arbitration shall be held in Cleveland, Ohio.

     

    
      
        
        

      

      
        Page
          19
          of 30

        
          

        

      

      
        
        

      

    

    Section
      23. Authority.

     

    The
      persons signing on behalf of CCF and CBL hereby warrant and represent that
      they
      have authority to execute this Agreement on behalf of the party for whom they
      have signed.

     

    Section
      24. Publication.

     

    To
      avoid
      loss of patent rights as a result of premature public disclosure of patentable
      information, CCF agrees to submit to CBL, at least forty-five (45) days prior
      to
      submission for publication or disclosure materials intended for publication
      or
      disclosure relating to inventions, discoveries or information within the
      Licensed Rights, or that may include an Option Invention. CBL shall notify
      CCF
      within thirty-five (35) days of receipt of such materials whether CCF desires
      to
      file a patent application on any invention disclosed in such materials. In
      the
      event that CBL desires to file such a patent application, CCF shall withhold
      publication and disclosure of patentable information for a period not to exceed
      ninety (90) days from the date of receipt of such materials by CBL. Further,
      if
      such material contains Confidential Information that CBL has provided to CCF,
      CCF agrees to remove such Confidential Information from the proposed publication
      or disclosure. The parties understand and agree that the foregoing time periods
      may be modified by written agreement of the parties.

     

    IN
      WITNESS WHEREOF,
      the
      parties hereto have duly executed this Agreement on the dates indicated
      below.

     

    
      	
              THE
                CLEVELAND CLINIC FOUNDATION:

               

            	 
	
              By:
                /s/
                Michael
                O’Boyle                                                  
                

            	
              Date:               
                12/20                  
                ,
                2004

            
	
              Name: Michael
                O’Boyle

            	 
	
              Title: Chief
                Financial Officer

               

            	 
	
              THE
                CLEVELAND BIOLABS, INC.:

               

            	 
	
              By:/s/
                Michael
                Fonstein                                                   
                

            	
              
                Date:               
                  12/20                  
                  ,
                  2004

              

            
	
              Name: Michael
                Fonstein

            	 
	
              Title: Chief
                Executive Officer

               

            	 
	
              Acknowledged
                (not a signatory):

               

            	 
	
              By:
                /s/
                Christopher M.
                Cobur                                      
                    

            	
              
                Date:               
                  12/20                  
                  ,
                  2004

              

            
	
              Name: Christopher
                M. Coburn

            	 
	
              Title: Executive
                Director, CCF Innovations

               

            	
            

    

     

     

    
      
        
        

      

      
        Page
          20
          of 30

        
          

        

      

      
        
        

      

    

     

     

    
      	
              By:
                /s/
                Andrei Gudkov,
                PhD                                            
                

            	
              
                Date:               
                  12/20                  
                  ,
                  2004

              

            
	
              Name: Andrei
                Gudkov, PhD

            	 
	
              Title: Chairman,
                Department of Molecular Biology, The Cleveland Clinic
                Foundation

               

            
	
              By:/s/
                Paul DiCorletto,
                PhD                     
                                      
                

            	
              
                Date:               
                  12/20                  
                  ,
                  2004

              

            
	
              Name: Paul
                DiCorletto, PhD

            	 
	
              Title: Director,
                Lerner Research Institute, The Cleveland Clinic Foundation

               

            
	
              Approved
                as to Form (not a signatory):

               

            	 
	
              By:/s/
                Theodore C. Theofrastous,
                Esq.        
                              
                

            	
              
                Date:               
                  12/20                  
                  ,
                  2004

              

            
	
              Name: 
                Theodore
                C. Theofrastous, Esq.

            	 
	
              Title:   
                Chief Commercialization Counsel 

               CCF
                Innovations

               

            	 

    

    

    

 

    
      
        
        

      

      
        Page
          21
          of 30

        
          

        

      

      
        
        

      

    

    APPENDIX
      A 

     

    DEFINITIONS

     

    A. “Affiliate”
      shall mean any individual or entity directly or indirectly controlling,
      controlled by or under common control with, a party to this Agreement. For
      purposes of this Agreement, the direct or indirect ownership of seventy-five
      percent (75%) or more of the outstanding voting securities of an entity, or
      the
      right to receive seventy-five percent (75%) or more of the profits or earnings
      of an entity shall be deemed to constitute control. For purposes of this
      Agreement, the direct or indirect ownership of fifty percent (50%) or more
      of
      the outstanding voting securities of an entity, or the right to receive fifty
      percent (50%) or more of the profits or earnings of an entity shall be deemed
      to
      constitute control upon written consent of CCF, which will not be unreasonably
      withheld. Such other relationship as in fact results in actual control over
      the
      management, business and affairs of an entity shall also be deemed to constitute
      control.

     

    B. “CCF
      Technology” shall mean all CCF’s unpatented inventions, know-how, trade secrets,
      analysis, discoveries, techniques, methods, clinical and other data, and other
      intellectual property relating to the research of Doctor or arising out of
      or in
      direct connection with work of Doctor in the field of regulating cell death:
      (i)
      curing cancer treatment side effects by differential modulation cell death
      /
      survival mechanisms uniquely deregulated in cancer cells; (ii) selective
      sensitization of cancer cells to treatment by using the same approach; (iii)
      using anti-apoptotic proteins secreted by microbial parasites to cure tissue
      damage associated with cancer treatment, inflammation and other pathologies
      (stroke, heart attack).

     

    C. “Control”
      or “Controlled” shall mean, with respect to any intellectual property right,
      possession of the ability, whether by ownership or license, to assign, or to
      grant a license, sublicense, immunities or other rights as provided for herein
      to such item or under such right without violating the terms of any agreement
      or
      other arrangement with any Third Party.

     

    D. “Development
      Plan” shall mean CBL’s Products research and development plan having at least
      the information specified in Appendix
      D
      to this
      Agreement. The Development Plan shall be sent to the address specified in
Appendix
      E.

     

    E. “Development
      Report” shall mean a written account of CBL’s progress under the Development
      Plan having at least the information specified in Appendix
      E
      to this
      Agreement.

     

    F.
      “Improvement” shall mean any modification of an invention described in the
      Licensed Patents that, if unlicensed, would infringe one or more claims of
      any
      Licensed Patent.

     

    G. “Innovation”
      shall mean all inventions, discoveries and enhancements and all data resulting
      in whole or in part from the practice of the Licensed Rights.

     

    H. “Licensed
      Field” shall mean shall mean the practice, production, manufacture, sale and use
      of the Licensed Rights for the discovery, development and commercialization
      of
      methods, techniques, devices, systems, animals and therapeutics in the field
      of
      regulating cell death:

     

    
      
        
        

      

      
        Page
          22
          of 30

        
          

        

      

      
        
        

      

    

    (i) CBLC100
      series: small molecules that restore the activity of p53 tumor suppressor in
      cancers, including renal cell carcinomas, sarcomas, prostate cancers and other
      types of malignancies; curaxines and derivatives thereof are representative
      examples of this category;

     

    (ii) CBLB101
      series: substances of biological nature (i.e., cytokines, chemokines and other
      secreted molecules) and their bioactive derivatives produced by tumor cells
      and
      capable of modulating cell survival;
      TGFβ2
      and
      derivatives thereof and derivatives thereof are representative examples of
      this
      category;

     

    (iii) CBLB501
      series: natural factors produced by extracellular parasites and symbionts of
      humans and other mammalian species and their bioactive derivatives capable
      of
      modulating cell survival mechanisms of host cells; flagellin of Salmonella typhimurium
      and
      derivatives thereof are representative examples of this category;

     

    (iv) CBLC500
      series: small molecules modulating tumor and normal cell sensitivity to
      cytotoxic chemicals by altering activity and substrate specificity of multidrug
      transporters; inhibitors of MRP1 and derivatives thereof are representative
      examples of this category.

     

    I. Licensed
      Patents.

     

    (i) “Licensed
      Patents” shall mean any and all rights in and to:

     

    (a) the
      patents and patent applications described in Appendix
      G
      hereto
      (the “Existing Patent Rights”) and all patents anywhere in the world issuing
      thereon;

     

    (b) any
      patent or patent application of any kind anywhere in the world that claims
      or
      discloses any of the Licensed Rights; and 

     

    (c) all
      divisions, continuations, continuations-in-part, patents of addition, patents,
      substitutions, registrations, reissues, reexaminations or extensions of any
      kind
      with respect to any of the foregoing applications and patents, and to the extent
      the same claim and disclose an Option Invention, with respect to which CBL
      exercises its option pursuant to Section 2.D above to include the same within
      the Licensed Patents.

     

    (ii) In
      the
      event that CCF is a joint owner of an invention by reason of the fact that
      an
      employee or consultant of CBL is a joint inventor of such an invention, it
      is
      understood that the Licensed Patents include only CCF’s rights as a joint owner
      of the patents and patent applications that claim such joint invention. From
      time to time during the term of this Agreement, upon request by either party,
      CBL and CCF shall update Appendix
      G
      hereto
      to include all patent applications and patents that are within the Licensed
      Patents.

     

    J. “Licensed
      Rights” shall mean, collectively inventions, discoveries and information covered
      by Licensed Patents or CCF Technology within the Licensed Field. 

     

    K. “Licensed
      Territory” shall be worldwide. 

     

    
      
        
        

      

      
        Page
          23
          of 30

        
          

        

      

      
        
        

      

    

    L. “Products”
      shall refer to and mean any and all products that employ or are in any way
      produced by the practice of the Licensed Rights. 

     

    M. “Regulatory
      Approval” shall mean for each country in the Licensed Territory all permits,
      consents and approvals required to lawfully manufacture, import, market, sell
      and use Products in the Licensed Field. 

     

    N. “Net
      Sales” shall mean the gross amount collected from sales of Products to the
      end-user of such Products, less (i) trade, cash and quantity discounts actually
      allowed or paid; (ii) credits, allowances and adjustments actually granted
      to
      customers; (iii) charge back payments and rebates granted to managed care
      organizations or to federal, state, local or foreign governments, their
      agencies, and purchasers and reimbursers or to trade customers, including,
      but
      not limited to, wholesalers and buying groups; (iv) separately itemized or
      allocated (in direct proportion to the amount of sales of such Products bears
      to
      the total amount of sales of all CBL products) shipping costs, insurance or
      other transportation costs, to the extent not paid or absorbed by non-Affiliate
      purchasers of such Products; and (v) sales, use and/or other excise taxes or
      duties actually paid. All costs shall be determined in accordance with generally
      accepted accounting principles. 

     

    O. “Sales”
      or “Sell” or “Sold” shall mean the transfer or disposition of a Product for
      value to a party other than CBL or an Affiliate. 

     

    P. “Sublicensee”
      shall mean the sublicensee, other than an Affiliate, of any Licensed
      Rights.

    

 

    
      
        
        

      

      
        Page
          24
          of 30

        
          

        

      

      
        
        

      

    

    APPENDIX
      B

     

    COMMON
      STOCK SUBSCRIPTION AGREEMENT

     

    

     

     

    

 

    
      
        
        

      

      
        Page
          25
          of 30

        
          

        

      

      
        
        

      

    

    APPENDIX
      C

     

    CCF
      ROYALTY REPORT (Example)

     

    
      	
              Licensee:__________________________________________

               

            	 	
              Agreement
                No:___________________________________

               

            	 
	
              Inventor:___________________________________________

               

            	 	
              CCF
                Case No.____________________________________

               

            	 
	
              Period
                Covered: From:     /    /                                                          

            	 	
              Through:      /    /                                                                          

               

            	 
	
              Prepared
                By: _______________________________________

               

            	 	
              Date:___________________________________________

               

            	 
	
              Approved
                By:________________________________________

               

            	 	
              Date:___________________________________________

               

            	 
	 	 	 	 

    

    If
      license covers several major product lines, please prepare a separate report
      for
      each line. Then combine all product lines into a summary report.

     

    
      	
              Report
                Type: Single Product Line Report:
                _________________________________________

            
	
              Multi-product
                Summary Report. Page
                1 of ____________ Pages

               

            
	
              Report
                Currency:      U.
                S. Dollars      Other________________________________________

            

    

    

    
      	
              Country

            	
              Gross

              Sales

            	
              Less

              Itemized

              Allowances

            	
              Net

              Sales

            	
              Royalty

              Rate

            	
              Period
                Royalty Amount

            
	
              This
                Year

            	
              Last
                Year

            
	
              U.S.A.

            	 	 	 	 	 	 
	
              Canada

            	 	 	 	 	 	 
	
              Europe:

            	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              Japan

            	 	 	 	 	 	 
	
              Other:

            	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              TOTAL:

            	 	 	 	 	 	 
	
               

              Total
                Royalty: ________________

            	
               

              Conversion
                Rate: ________________

            	
               

              Royalty
                in U.S. Dollars: $________________

            

    

    

    
 

    
      
        
        

      

      
        Page
          26
          of 30

        
          

        

      

      
        
        

      

    

    APPENDIX
      D

     

    DEVELOPMENT
      PLAN

     

    CBL
      shall
      submit a development plan of the scope outlined below to CCF within ninety-(90)
      days of the execution of this Agreement In general, the plan should provide
      CCF
      with a summary overview of the activities that CBL believes are necessary to
      make Products available for sale in the commercial marketplace. Please
      note -
      a
      current or updated business plan may be substituted for a Development Plan
      provided that specific milestones are identified in the plan and all of the
      topics identified below are covered.

     

    I. Development
      Program

     

    A. Development
      Activities to be Undertaken

     

    (Please
      break activities into subunits with the date of completion of major
      milestones)

     

    1.

     

    2.

     

    .

     

    .

     

    B. Estimated
      Total Development Time

     

    II. Governmental
      Approval

     

    A. Types
      of
      submissions required

     

    B. Government
      agency e.g. FDA, USDA, etc.

     

    III. Proposed
      Market Approach

     

    IV. Competitive
      Information

     

    A. Potential
      Competitors

     

    B. Potential
      Competitive Devices/Compositions

     

    C. Known
      Competitor’s plans, developments, technical achievements

     

    D. Anticipated
      Date of Product Launch

     

    Total
      Length:
      approximately 2-3 pages

     

    

 

    
      
        
        

      

      
        Page
          27
          of 30

        
          

        

      

      
        
        

      

    

    APPENDIX
      E

     

    DEVELOPMENT
      REPORT

     

    A. Date
      development plan initiated and time period covered by this report.

     

    B. Development
      Report (4-8 paragraphs).

     

    
      	 	
              1.

            	
              Activities
                completed since last report including the object and parameters of
                the
                development, when initiated, when completed and the
                results.

            

    

     

    
      	 	
              2.

            	
              Activities
                currently under investigation, i.e., ongoing activities including
                object
                and parameters of such activities, when initiated, and projected
                date of
                completion.

            

    

     

    C. Future
      Development Activities (4-8 paragraphs).

     

    
      	 	
              1.

            	
              Activities
                to be undertaken before next report including, but not limited to,
                the
                type and object of any studies conducted and their projected starting
                and
                completion dates.

            

    

     

    
      	 	
              2.

            	
              Estimated
                total development time remaining before a product will be
                commercialized.

            

    

     

    D. Changes
      to initial development plan (2-4 paragraphs).

     

    1. Reasons
      for change.

     

    2. Variables
      that may cause additional changes.

     

    E. Items
      to
      be provided if applicable:

     

    
      	 	
              1.

            	
              Information
                relating to Product that has become publicly available, e.g., published
                articles, competing products, patents,
                etc.

            

    

     

    
      	 	
              2.

            	
              Development
                work being performed by third parties other than CBL to include name
                of
                third party, reasons for use of third party, planned future uses
                of third
                parties including reasons why and type of
                work.

            

    

     

    
      	 	
              3.

            	
              Update
                of competitive information trends in industry, government compliance
                (if
                applicable) and market plan.

            

    

     

    PLEASE
      SEND DEVELOPMENT REPORTS TO:

     

    CCF
      Innovations

    Attn.:
      Executive Director

    9500
      Euclid Avenue / Mailcode D-20

    Cleveland,
      OH 44195

     

     

    

 

    
      
        
        

      

      
        Page
          28
          of 30

        
          

        

      

      
        
        

      

    

    APPENDIX
      F

     

    RESEARCH
      AND DEVELOPMENT MILESTONES

     

    

     

     

     

    
 

    
      
        
        

      

      
        Page
          29
          of 30

        
          

        

      

      
        
        

      

    

    APPENDIX
      G

     

    LICENSED
      PATENT APPLICATION AND PATENTS

     

    U.S.
      Provisional Patent Application 60/526,538 - “Methods of Inhibiting
      Apoptosis Using Latent TGFβ"

     

    U.S.
      Provisional Patent Application 60/526,666 - “Methods of Identifying of
      Modulators of Apoptosis From Parasites and Uses Thereof”

     

    U.S.
      Provisional Patent Application 60/526,496 - “Methods of Inhibiting Apoptosis
      Using Inducers of NF-kB”

     

    U.S.
      Provisional Patent Application 60/526,667 - “Methods of Inhibiting Apoptosis
      Using Latent TGFβ”

     

    U.S.
      Provisional Patent Application 60/526,460 - “Methods of Protecting Against
      Radiation Using Inducers of NF-kB”

     

    U.S.
      Provisional Patent Application 60/526,461 - “Methods of Protecting Against
      Radiation Using Flagellin”

     

    U.S.
      Provisional Patent Application 60/571,149 - “Small Molecules Inhibitors of MRP1
      and Other Multidrug Transporters”

     

    U.S.
      Provisional Patent Application 60/589,637 - “Activation of p53 and Inhibition of
      NF-kB for cancer treatment”

     

     

    
      
        
        

      

      
        Page
          30
          of 30

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]