Document:

Exhibit 10.3

 

Execution
Version

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This EXECUTIVE EMPLOYMENT
AGREEMENT (the “Agreement”) between Cleveland BioLabs, Inc., a Delaware corporation (the “Company”),
and Andrei Gudkov, Ph.D., D.Sci. (the “Executive”) is effective as of July 9, 2015 (the “Effective
Date”).

 

W I T N E S S E T H:

 

WHEREAS, the Company
desires the Executive to provide services to the Company, and wishes to provide the Executive with certain compensation and benefits
in return for such employment services;

 

WHEREAS, the Executive
wishes to be employed by the Company and to provide services to the Company in return for certain compensation and benefits;

 

WHEREAS, the Executive
will conduct and/or support scientific research in order to develop the Company’s intellectual property for the benefit of
the Company;

 

WHEREAS, the Executive
will endeavor to protect the Company’s intellectual property;

 

WHEREAS, the Executive
has made a commitment to remain with the Company for at least five (5) years from the Effective Date;

 

NOW THEREFORE, in
consideration of the foregoing, of the mutual promises contained herein and of other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.             EMPLOYMENT
TERM. The Company hereby offers to employ the Executive, and the Executive hereby accepts employment by the Company, upon
the terms and conditions set forth in this Agreement, until July 9, 2020 or the termination of the Executive’s employment
in accordance with Section 10 below, as applicable, whichever comes first (the “Employment Term”). The
Executive shall be employed at will, meaning that the Company may terminate this Agreement and the Executive’s employment
at any time, for any reason, with or without Cause, as applicable.

 

2.             POSITION
& DUTIES.

 

(a)           During
the Employment Term, the Executive shall serve as the Company’s Chief Scientific Officer. As Chief Scientific Officer, the
Executive shall continue acting, faithfully and efficiently, as scientific leader of the Company in all aspects of its research,
development and representation activities and shall have such duties, authorities and responsibilities commensurate with the duties,
authorities and responsibilities of persons in similar capacities in similarly sized companies and such other duties and responsibilities
as the Company’s Board of Directors (the “Board) shall designate that are consistent with the Executive’s
position as Chief Scientific Officer. During the Employment Term, the Executive shall use the Executive’s best efforts to
perform faithfully and efficiently the duties and responsibilities assigned to the Executive hereunder and devote not a less amount
of the Executive’s business time devoted prior to the date of the Agreement (excluding periods of paid time off and other
approved leaves of absence) to the performance of the Executive’s duties with the Company. Notwithstanding the foregoing,
nothing shall prevent the Executive from participating in a reasonable amount of charitable, civic, educational, professional,
community or industry affairs or, with prior written approval of the Board, serving on the board of directors or advisory boards
of other companies or [serving as Chief Scientific Officer of OncoTartis, Inc., Everon, Inc., Incuron, LLC, serving as Senior Vice
President of Basic Science and Chair, Cell Stress Biology of Roswell Park Cancer Institute, serving as editor-in-chief of OncoTarget;
provided that any such activities or services do not (i) create a conflict with the Executive’s employment hereunder;
(ii) interfere with the performance of his duties; or (iii) violate the terms of Section 9 of this Agreement.

 

    	 

    	 

    

 

(b)           The
Executive is currently employed as the Senior VP Basic Science and Chair, Department of Cell Stress Biology at Roswell Park Cancer
Institute (the “Institute”). The Executive hereby represents and warrants that the Institute is aware of the
Executive’s engagement by the Company and the Institute consents and approves of such engagement.

 

(c)           The
Executive hereby covenants and agrees to maintain such consent and approval while employed by the Company.

 

3.             LOCATION.
Unless the parties otherwise agree in writing, at all times during the Employment Term, the Executive shall report to the Company’s
headquarters in Buffalo, New York. The Company may from time to time require the Executive to travel temporarily to other locations
(domestic and international) in connection with the Company’s business.

 

4.             BASE
SALARY. The Company agrees to pay the Executive a base salary (the “Base Salary”) at an annual
rate of $110,941, payable in accordance with the regular payroll practices of the Company. The Executive’s Base Salary shall
be subject to review and adjustment from time to time by the Board (or a committee thereof) in its sole discretion. The base salary
as determined herein from time to time shall constitute “Base Salary” for purposes of this Agreement. Executive’s
Base Salary shall not be decreased other than in the instance of an across-the-board salary reduction similarly affecting all executive
officers of the Company.

 

5.             ANNUAL
BONUS. The Executive shall be eligible to participate in the Company’s Annual Executive Bonus Plan based on a base
pay rate of 2x the Base Salary, subject to the terms and conditions of such plan, as revised from time to time.

 

6.             LONG-TERM
INCENTIVES. The Executive shall be continue to be eligible to participate in the Company’s 2012 Long-Term Executive
Compensation Incentive Plan, subject to the terms and conditions of such plan, as revised from time to time. In addition, the Executive
shall be eligible to participate in any management incentive plan or program established by the Board of Directors following the
consummation of the transaction contemplated by that certain Securities Purchase Agreement, dated as of June 24, 2015 by and between
the Company and the Purchaser, as defined therein (the “Securities Purchase Agreement”).

 

7.             STOCK
OPTIONS. The Executive shall be eligible to participate in the Company’s Equity Incentive Plan (the “Equity
Plan”), subject to the terms and conditions of such plan, as revised from time to time. 

 

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8.             EMPLOYEE
BENEFITS.

 

(a)           BENEFIT
PLANS. The Executive shall be eligible to participate in any benefit plan or arrangement, including health, life and disability
insurance, retirement plans and the like in accordance with Company policy and the terms of the applicable Company benefit plan
documents, that may be in effect from time to time and made available to the Company’s other key management employees. 

 

(b)           PAID
TIME OFF. The Executive shall be entitled to paid time off in accordance with the terms of the Company’s Employee Manual.

 

(c)           PROFIT
SHARING, PENSION AND SALARY DEFERRAL BENEFITS. During the Employment Term, the Executive shall be entitled to participate in or
accrue benefits under any pension, salary deferral or profit sharing plan now existing or hereafter created for employees of the
Company upon terms and conditions equivalent to those, which the Company may provide for other key management employees.

 

(d)           GENERAL
EXPENSE REIMBURSEMENTS. The Company will reimburse the Executive for all reasonable business expenses that the Executive incurs
in performing the services hereunder pursuant to the Company’s usual expense reimbursement policies and practices, following
submission by the Executive of reasonable documentation thereof. All reimbursements provided under this Agreement shall be made
in accordance with the requirements of Section 409A (as defined below) to the extent that such reimbursements are subject to Section
409A, including, as applicable, the requirements that (i) any reimbursement is for expenses incurred during the Employment Term,
(ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement
in any other calendar year, (iii) the reimbursement of an eligible expense shall be made on or before the last day of the calendar
year following the calendar year in which the expense was incurred, and (iv) the right to reimbursement is not subject to liquidation
or exchange for any other benefit.

 

9.             CONFIDENTIALITY
AND POST-EMPLOYMENT OBLIGATIONS.

 

(a)            CONFIDENTIALITY.

 

(i)                
Company Information. The Executive agrees at all times during the Employment Term and thereafter, to hold in strictest confidence,
and not to use, except for the benefit of the Company, or to disclose to any person, firm or corporation without written authorization
of the Board, any Confidential Information of the Company, except under a non-disclosure agreement duly authorized and executed
by the Company. The Executive understands that “Confidential Information” means any non-public information
that relates to the actual or anticipated business or research and development of the Company, technical data, trade secrets or
know-how, including, but not limited to, research, product plans or other information regarding Company’s products or services
and markets therefor, customer lists and customers software, developments, inventions, processes, formulas, technology, designs,
drawings, engineering, hardware configuration information, marketing, finances or other business information, information regarding
personnel, employee lists, compensation, and employee skills and any other non-public information which a competitor of the Company
could use to the competitive disadvantage of the Company. The Executive further understands that Confidential Information does
not include any of the foregoing items which have become publicly known and made generally available through no wrongful act of
the Executive or of others who were under confidentiality obligations as to the item or items involved or improvements or new versions
thereof.

 

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(ii)              
Former Employer Information. The Executive agrees not to improperly use or disclose any proprietary information or trade
secrets of any former or concurrent employer or other person or entity and that the Executive will not bring onto the premises
of the Company any unpublished document or proprietary information belonging to any such employer, person or entity unless consented
to in writing by such employer, person or entity.

 

(iii)            
Third Party Information. The Executive recognizes that the Company has received and in the future will receive from third
parties their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality
of such information and to use it only for certain limited purposes. The Executive agrees to hold all such confidential or proprietary
information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary
in carrying out his work for the Company consistent with the Company’s agreement with such third party.

 

(iv)            
Returning Company Documents. The Executive agrees that, at the time of leaving the employ of the Company or at any time
the Company requests, the Executive will deliver to the Company (and will not keep in his possession, recreate or deliver to anyone
else) any and all devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings blueprints,
sketches, materials, equipment, other documents or property, or reproductions of any aforementioned items developed by the Executive
pursuant to the Executive’s employment with the Company or otherwise belonging to the Company, its successors or assigns,
including, without limitation, those records maintained pursuant to Section 9(b)(iv). In the event of the termination of the Executive’s
employment, the Executive agrees to sign and deliver the “Termination Certification” attached hereto as Exhibit A.

 

(v)              
Representations. The Executive agrees to execute any proper oath or verify any proper document required to carry out the
terms of this Agreement. The Executive represents that his performance of all the terms of this Agreement will not breach any agreement
to keep in confidence proprietary information acquired by the Executive in confidence or in trust prior to the Executive’s
employment by the Company.

 

(vi)            
Nothing in this Agreement or any other policy or agreement with the Company prohibits the Executive from reporting possible violations
of federal law or regulations to any governmental agency or entity, including but not limited to the Department of Justice, the
Securities and Exchange Commission, the Congress and any agency Inspector General, or making other disclosures that are protected
under the whistleblower provisions of federal laws or regulations. The Executive is not required to notify the Company that he
has made such reports or disclosures.

 

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(b)           INVENTIONS.

 

(i)                
Inventions Retained and Licensed. The Executive has attached hereto, as Exhibit B, a list describing all inventions, original
works of authorship, developments, improvements, and trade secrets which were made prior to the Executive’s employment with
the Company (collectively referred to as “Prior Inventions”), which belong to the Executive, which relate
to the Company’s proposed business, products or research and development, and which are not assigned to the Company hereunder.
The Executive represents that this list is complete. If no such list is attached, the Executive represents that there are no such
Prior Inventions. In the course of the Executive’s employment with the Company, the Executive will not incorporate into a
Company product, process or service a Prior Invention owned by the Executive or in which the Executive has an interest without
the prior written consent of the Company. To the extent the Executive does incorporate into a Company product, process or service
a Prior Invention owned by the Executive or in which the Executive has an interest (with or without consent), the Executive hereby
grants to the Company a nonexclusive, royalty-free, fully paid-up, irrevocable, perpetual, sublicensable, worldwide license to
make, have made, use and sell such Prior Invention as part of or in connection with such product, process or service, and to practice
any method related thereto.

 

(ii)              
Assignment of Inventions. The Executive agrees to promptly make full written disclosure to the Company, to hold in trust
for the sole right and benefit of the Company, and hereby assigns and promises to assign, without additional payment or additional
consideration, to the Company, or its designee, all rights, title, and interest in and to any and all inventions, original works
of authorship, developments, concepts, improvements, designs, discoveries, ideas, trademarks or trade secrets, whether or not patentable
or registrable under copyright or similar laws, which the Executive may solely or jointly conceive or develop or reduce to practice,
or cause to be conceived or developed or reduced to practice, during the period of time the Executive is in the employ of the Company
(collectively referred to as “Inventions”). The Executive further acknowledges that all original works
of authorship which are made by the Executive (solely or jointly with others) within the scope of and during the period of his
employment with the Company and which are protectable by copyright are “works made for hire,” as that term is defined
in the United States Copyright Act. However, to the extent that any such work may not, by operation of any law, be a work made
for hire, Executive hereby, without additional payment or additional consideration, assigns, transfers and conveys to Company all
worldwide rights, title and interest in and to such work and all Intellectual Property Rights relating to it. Further, to the extent
that any of the rights, title, and interest in any Invention cannot be assigned to the Company, the Executive hereby grants to
the Company a nonexclusive, royalty-free, fully paid-up, irrevocable, perpetual, sublicenseable, worldwide license to make, have
made, use and sell such Invention. In any case, the Executive agrees to irrevocably waive and never to assert any rights, title,
and interest in any invention against the Company, or its designee. The Executive understands and agrees that the decision whether
or not to commercialize or market any invention developed by the Executive solely or jointly with others is within the Company’s
sole discretion and for the Company’s sole benefit and that no royalty will be due to the Executive as a result of the Company’s
efforts to commercialize or market any such invention. Nothing in this agreement shall be deemed to constitute the grant of any
license or other right to Executive in respect of any Invention or intellectual property of the Company.

 

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(iii)            
Inventions Assigned to the United States. The Executive agrees to assign to the United States government all of the Executive’s
rights, title, and interests in and to any and all Inventions whenever such full title is required to be in the United States by
a contract between the Company and the United States or any of its agencies.

 

(iv)            
Maintenance of Records. The Executive agrees to keep and maintain adequate and current written records of all Inventions
made by the Executive (solely or jointly with others) during the term of the Executive’s employment with the Company. The
records will be in the form of notes, sketches, drawings, and any other format that may be specified by the Company. The records
will be available to and remain the sole property of the Company at all times.

 

(v)              
Patent and Copy Registrations. The Executive agrees to assist the Company, or its designee, at the Company’s expense,
in every proper way to secure the Company’s rights in the Inventions and any copyrights, patents, mask work rights or other
intellectual property rights relating thereto in any and all countries, including the disclosure to the Company of all pertinent
information and data with respect thereto, the execution of all applications, specifications, declarations, oaths, assignments
and all other instruments which the Company shall deem necessary in order to apply for and obtain such rights and in order to assign
and convey to the Company, its successors, assigns, and nominees the sole and exclusive rights, title and interest in and to such
Inventions, and any copyrights, patents, mask work rights or other intellectual property rights relating thereto. The Executive
further agrees that the Executive’s obligation to execute or cause to be executed, when it is in his power to do so, any
such instrument or papers shall continue after the termination of this Agreement. If the Company is unable because of the Executive’s
mental or physical incapacity or for any other reason to secure his signature to apply for or to pursue any application for any
United States or foreign patents or copyright registrations covering Inventions or original works of authorship assigned to the
Company as above, then the Executive hereby irrevocably designates and appoints the Company and its duly authorized officers and
agents as the Executive’s agent and attorney in fact, to act for and in the Executive’s behalf and stead to execute
and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent
or copyright registrations thereon with the same legal force and effect as if executed by the Executive. Such designation and appointment,
being coupled with an interest, is irrevocable.

 

(c)           NON-SOLICITATION
AND NON-COMPETITION.

 

(i)                
Solicitation of Employees, Consultants, Contractors and Customers. The Executive agrees that for a period of twenty-four
(24) months immediately following the termination of the Executive’s relationship with the Company for any reason, whether
with or without cause, the Executive shall not either directly or indirectly solicit, induce, recruit or encourage any of the Company’s
employees, consultants, contractors or customers to terminate his or her relationship with the Company, or take away such employees,
consultants, contractors or customers or attempt to solicit, induce, recruit, encourage or take away employees, consultants or
contractors of the Company, either for the Executive or for any other person or entity; provided however, the Executive
may hire any employee, consultant or contractor of the Company who independently responds to a general solicitation of employment.
This restriction shall apply only to those employees, consultants, contractors or customers of the Company with whom the Executive
came into contact or about whom the Executive learned Confidential Information during the last two (2) years of the Executive’s
employment with the Company. Notwithstanding the foregoing, this provision does not prohibit the solicitation of United States
federal, state or foreign government agency, including but not limited to United States Department of Defense.

 

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(ii)              
Non-Competition. The Executive agrees that during the period of employment and for a period of twenty-four (24) months
immediately following the termination of the Executive’s relationship with the Company for any reason, the Executive shall
not directly or indirectly own, manage, operate, consult or be employed in a business substantially similar to, or competitive
with, the Company’s Business (as defined below) and the business of its successors and assigns or any other business activity
in which the Company and its successors and assigns may substantially engage during the Employment Term. In recognition of the
nature of the Company’s Business, which includes the sale of its products and services on an international basis, this restriction
shall apply throughout the United States, Russia and in any country or territory in which the Company materially markets any of
its products or services, or to the knowledge of the Executive, plans to beginning marketing any of its products or services. For
purposes of this Agreement, the “Company’s Business” shall include any product, service, or process
or the research and development thereof, of the Company with which the Executive worked directly or indirectly during the Executive’s
employment by the Company or about which the Executive acquired Confidential Information during the Executive’s employment
by the Company, including but not limited to the research and development of new pharmaceuticals as defined by the Company’s
therapeutic area and core technology. Notwithstanding the foregoing, nothing in this Agreement shall prevent the Executive from
engaging in a scientific, consulting or other business capacity in research and development of pharmaceuticals to treat cancer
or other diseases if such research and development does not use any Confidential Information of the Company.

 

(d)           ADDITIONAL
COMPANY POLICIES. The Executive agrees to comply with the Company’s Policy Manual and each of the other policies adopted
by the Company from time-to-time, the contents of which may be modified or eliminated at any time.

 

(e)           Notification
of New Employer. In the event that the Executive leaves the employ of the Company, the Executive hereby grants consent
to notification by the Company to the new employer, partner, co-owner and/or others involved in managing the business with which
the Executive is employed or associated about the obligations under this Agreement.

 

(f)            ENFORCEMENT.
The Executive acknowledges and agrees that compliance with the covenants set forth in this Agreement is necessary to protect the
Confidential Information and trade secrets, business and goodwill of the Company, and that any breach of this Agreement will result
in irreparable and continuing harm to the Company, for which money damages may not provide adequate relief. Accordingly, in the
event of any breach or anticipatory breach of this Agreement by the Executive, or the Executive’s claim in a declaratory
judgment action that all or part of this Agreement is unenforceable, the parties agree that the Company shall be entitled to (i)
injunctions, both preliminary and permanent, enjoining or restraining such breach or anticipatory breach, and the Executive hereby
consents to the issuance thereof forthwith and without bond by any court of competent jurisdiction; and (ii) recovery of all reasonable
sums and costs, including attorneys’ fees, incurred by the Company to defend or enforce the provisions of this Agreement.

 

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10.          
TERMINATION. The Executive’s employment and the Employment Term shall terminate on the first of the following
to occur:

 

(a)           BY
THE EXECUTIVE FOR ANY REASON // WITHOUT GOOD REASON. The Executive shall provide thirty (30) days’ prior written notice
(the “Transition Period”) to the Company of the Executive’s intended termination of employment
without Good Reason (as defined below) (“Voluntary Termination”). During the Transition Period, the
Executive shall assist and advise the Company in any transition of business, customers, prospects, projects and strategic planning,
and the Company shall continue to pay the Executive’s salary and benefits through the end of the Transition Period. The Company
may, in its sole discretion, upon five (5) days prior written notice to the Executive, make such termination of employment effective
earlier than the expiration of the Transition Period and the Company shall have no further obligation to pay the Executive’s
salary or benefits after such termination date.

 

(b)           BY
THE EXECUTIVE FOR GOOD REASON. Upon the Executive’s notice following the end of the Cure Period (as defined in this Section).
For purposes of this Agreement, “Good Reason” for the Executive to terminate employment hereunder shall mean
the occurrence of any of the following events without the Executive’s consent: (i) a material reduction of ten percent (10%)
or more in the Executive’s Base Salary (other than an across-the-board decrease in base salary applicable to all executive
officers of the Company); (ii) a material breach of this Agreement by the Company; (iii) a material reduction in the Executive’s
duties, authority and responsibilities relative to the Executive’s duties, authority, and responsibilities in effect immediately
prior to such reduction; or (iv) the relocation of the Company’s headquarters outside the United States, or if within the
United States causing an increase in the Executive’s one-way commute by more than 50 miles or a material change in the Company’s
telecommuting policies and practices, provided, however, that, any such termination by the Executive shall only be deemed
for Good Reason pursuant to this definition if: (1) the Executive gives the Company written notice of the Executive’s intent
to terminate for Good Reason within thirty (30) days following the first occurrence of the condition(s) that the Executive believes
constitute(s) Good Reason, which notice shall describe such condition(s); (2) the Company fails to remedy such condition(s) within
thirty (30) days following receipt of the written notice (the “Cure Period”); and (3) the Executive voluntarily
terminates employment within thirty (30) days following the end of the Cure Period.

 

(c)           BY
THE COMPANY FOR CAUSE. Immediately upon written notice by the Company to the Executive of a termination for Cause. For purposes
of this Agreement, “Cause” shall mean the occurrence of any of the following events, as determined by
the Board in its sole and absolute discretion: (i) the failure of the Executive to perform material duties hereunder, including,
without limitation, the failure of the Executive to devote not a less amount of the Executive’s business time devoted prior
to the date of the Agreement of the Executive’s business time (excluding periods of paid time off and other approved leaves
of absence) to the performance of the Executive’s duties with the Company, or comply with reasonable directions of the Board
which, to the extent it is curable by the Executive, is not cured within ten (10) days after written notice thereof is given to
the Executive by the Company, specifying in reasonable detail the manner in which the Executive has failed to perform such duties
or comply with such directions; (ii) the Executive’s commission (including entry of a nolo contendere plea) of an
act or acts constituting a felony, dishonesty or disloyalty or fraud; (iii) the Executive’s gross negligence or commission
of an act, or failure to take action, which adversely affects the Company’s business or reputation; (iv) the Executive’s
misappropriation or embezzlement of the property of the Company or its affiliates (whether or not a misdemeanor or felony); or
(v) the Executive’s material breach, non-performance or non-observance of any Company policy or any term of this Agreement,
including but not limited to the covenants contained in Section 9, or any other agreement to which the Executive and the Company
are parties, which, to the extent it is curable by the Executive, is not cured within ten (10) days after written notice thereof
is given to the Executive by the Company.

 

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(d)           BY
THE COMPANY WITHOUT CAUSE. Upon written notice by the Company to the Executive of an involuntary termination without Cause
and other than due to death or Disability.

 

(e)           DISABILITY.
Unless otherwise prohibited by law, upon the 30th day following the Executive’s receipt of notice of the Company’s
termination due to Disability (as defined in this Section); provided that, the Executive has not returned to full-time performance
of his duties within thirty (30) days after receipt of such notice. If the Company determines in good faith and in its sole
discretion that the Executive’s Disability has occurred during the Employment Term, it will give the Executive written notice
of its intention to terminate the Executive’s employment.  For purposes of this Agreement, “Disability”
shall occur when the Board determines that the Executive has become physically or mentally incapable of performing the essential
functions of the job duties under this Agreement with or without reasonable accommodation, for ninety (90) consecutive days or
one hundred twenty (120) nonconsecutive days in any twelve (12) month period. For purposes of this Section, at the Company’s
request, the Executive agrees to be available and to cooperate in a reasonable examination by an independent qualified physician
selected by the Board.

 

(f)            DEATH.
Automatically on the date of death of the Executive.

 

11.           CONSEQUENCES
OF TERMINATION. Any termination payments made and benefits provided under this Agreement to the Executive shall be in lieu
of any termination or severance payments or benefits for which the Executive may be eligible under any of the plans, policies or
programs of the Company or its affiliates as may be in effect from time to time. Subject to satisfaction of each of the conditions
set forth in Section 12, the following amounts and benefits shall be due to the Executive. Any Accrued Amounts (as defined in Section
11(a)) shall be payable on the next regularly scheduled Company payroll date following the date of termination or earlier if required
by applicable law.

 

(a)           TERMINATION
BY THE COMPANY FOR CAUSE OR BY THE EXECUTIVE FOR ANY REASON // WITHOUT GOOD REASON. If the Executive’s employment should
be terminated (i) by the Company for Cause, or (ii) by the Executive for any reason // without Good Reason, the Company shall pay
to the Executive: (x) any unpaid Base Salary through the date of termination and any accrued PTO; (y) reimbursement for any unreimbursed
expenses incurred through the date of termination; and (z) all other payments and benefits to which the Executive may be entitled
under the terms of any applicable compensation arrangement or benefit, equity or perquisite plan or program or grant or this Agreement,
including but not limited to any applicable insurance benefits, it being understood that the treatment of any outstanding stock
options shall be determined in accordance with the terms of the applicable equity plan and award agreement (collectively, “Accrued
Amounts”) only, and shall not be obligated to make any additional payments to the Executive. For the avoidance of
doubt, the Executive shall not be eligible to receive any of the severance payments or benefits described in Section 11(b).

 

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(b)           TERMINATION
BY THE COMPANY WITHOUT CAUSE OR BY THE EXECUTIVE FOR GOOD REASON. If the Executive’s employment by the Company is terminated
by the Company without Cause (and not due to Disability or death) or by the Executive for Good Reason, then the Company shall pay
or provide the Executive with the Accrued Amounts, subject to compliance with Sections 9 and 12, and:

 

(i)                
continued payment at the higher of the Executive’s Base Salary as in effect immediately preceding the last day of the Employment
Term (ignoring any decrease in Base Salary that forms the basis for Good Reason) or $138,677, for a period of twelve (12) months
following the termination date (the “Salary Severance Period”) on the Company’s regular payroll
dates; provided, however, that any payments otherwise scheduled to be made prior to the effective date of the General Release
(namely, the date it can no longer be revoked) shall accrue and be paid in the first payroll date that follows such effective date
with subsequent payments occurring on each subsequent Company payroll date; and

 

(iii)              all
issued and outstanding options will continue to vest according to their established schedules throughout the Salary Severance Period,
and all vested options will remain exercisable throughout the Salary Severance Period, but in no event later than the expiration
date of the options.

 

(c)           DISABILITY.
Upon employment termination due to Disability, the Executive shall be entitled to any Accrued Amounts.

 

(d)           DEATH.
In the event the Employment Term ends on account of the Executive’s death, the Executive’s estate (or to the extent
a beneficiary has been designated in accordance with a program, the beneficiary under such program) shall be entitled to any Accrued
Amounts.

 

(e)           TERMINATION
BY THE COMPANY WITHOUT CAUSE OR BY THE EXECUTIVE FOR GOOD REASON FOLLOWING A CHANGE IN CONTROL.

 

(i)                
If the Executive’s employment by the Company is terminated by the Company without Cause (and not due to Disability or death)
or by the Executive for Good Reason within twelve (12) months following a Change in Control (as defined in the Equity Plan), then
the Company shall pay or provide the Executive with the Accrued Amounts and all of the benefits described in Section 11(b) above,
subject to compliance with Sections 9 and 12, with the exception that Section 11(b) (iii) shall read: all issued and outstanding
options will become immediately vested and will remain exercisable through the Salary Severance Period, but in no event later than
the expiration date of the options. Notwithstanding anything to the contrary, the Executive agrees and acknowledges that the transactions
contemplated under the Securities Purchase Agreement shall not be considered a “Change in Control” for purposes of
this Section 11(e).

 

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12.          CONDITIONS.
Any payments or benefits made or provided pursuant to Section 11 (other than Accrued Amounts) are subject to the Executive’s
(or, in the event of the Executive’s death, the beneficiary’s or estate’s, or in the event of the Executive’s
Disability, the guardian’s if applicable):

 

(a)           compliance
with the provisions of Section 9 of this Agreement;

 

(b)           delivery
to the Company of an executed waiver and general release of any and all known and unknown claims, and other provisions and covenants,
in the form acceptable to the Company (the “General Release”) within 21 days of presentation thereof
by the Company to the Executive, and permitting the General Release to become effective in accordance with its terms; and

 

(c)           delivery
to the Company of a resignation from all offices, directorships and fiduciary positions with the Company, its affiliates and employee
benefit plans effective as of the termination date.

 

Notwithstanding
the due date of any post-employment payments, any amounts due following a termination under this Agreement (other than Accrued
Amounts) shall not be due until after the expiration of any revocation period applicable to the General Release without the Executive
having revoked such General Release, and any such amounts shall be paid or commence being paid to the Executive within fifteen
(15) days of the expiration of such revocation period without the occurrence of a revocation by the Executive (or such later date
as may be required under Section 19 of this Agreement). Nevertheless (and regardless of whether the General Release has been executed
by the Executive), upon any termination of Executive’s employment, Executive shall be entitled to receive any Accrued Amounts,
payable after the date of termination in accordance with the Company’s applicable plan, program, policy or payroll procedures.
Notwithstanding anything to the contrary in this Agreement, if any severance pay or benefits are deferred compensation under Section
409A (as defined below), and the period during which the Executive may sign the General Release begins in one calendar year and
the first payroll date following the period during which the Executive may sign the General Release occurs in the following calendar
year, then the severance pay or benefit shall not be paid or the first payment shall not occur until the later calendar year.

 

13.           ASSIGNMENT.
This Agreement shall be binding upon and inure to the benefit of the Executive and the Executive’s heirs, executors, personal
representatives, assigns, administrators and legal representatives. Because of the unique and personal nature of the Executive’s
duties under this Agreement, neither this Agreement nor any rights or obligations under this Agreement shall be assignable by the
Executive. This Agreement shall be binding upon and inure to the benefit of the Company and its successors, assigns and legal representatives.
Any such successor or assign of the Company will be deemed substituted for the Company under the terms of this Agreement for all
purposes. For this purpose, “successor” means any person, firm, corporation or other business entity which at any time,
whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of
the Company.

 

    	11

    	 

    

 

14.           NOTICE.
For the purpose of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given (a) on the date of delivery if delivered by hand, (b) on the date of transmission, if delivered
by confirmed facsimile, (c) on the first business day following the date of deposit if delivered by guaranteed overnight delivery
service, or (d) on the fourth business day following the date delivered or mailed by United States registered or certified mail,
return receipt requested, postage prepaid, addressed as follows:

 

If to the Company:

 

Cleveland BioLabs, Inc.

Attn: Chief Executive Officer

73 High Street

Buffalo, New York 14203

(716) 849-6820 (fax)

 

 and
a copy (which shall not constitute notice) shall also be sent to:

 

Jackson Lewis, P.C.

Attn: Kathryn Montgomery Moran

150 North Michigan Avenue,
Suite 2500

Chicago, IL 60601

(312) 787-4995 (fax)

 

If to the Executive:

 

To the most recent address of
the Executive set forth in the personnel records of the Company.

 

or to such other address as either party
may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective
only upon receipt.

 

15.           SECTION
HEADINGS; INCONSISTENCY. The section headings used in this Agreement are included solely for convenience and shall not
affect, or be used in connection with, the interpretation of this Agreement. If there is any inconsistency between this Agreement
and any other agreement (including but not limited to any option, stock, long-term incentive or other equity award agreement),
plan, program, policy or practice (collectively, “Other Provision”) of the Company the terms of this
Agreement shall control over such Other Provision.

 

16.           SEVERABILITY.
The provisions of this Agreement shall be deemed severable and the invalidity of unenforceability of any provision shall not affect
the validity or enforceability of the other provisions hereof. In case any one or more of the provisions, subsections, or sentences
contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect the other provisions of this Agreement, and this Agreement shall be construed as
if such invalid, illegal or unenforceable provision had never been contained in this Agreement. If moreover, any one or more of
the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope,
activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable to the extent compatible with the
applicable law as it shall then appear.

 

    	12

    	 

    

 

17.           COUNTERPARTS.
This Agreement may be executed in counterparts, each of which shall be deemed to be an original but all of which together will
constitute one and the same instruments. One or more counterparts of this Agreement may be delivered by facsimile, with the intention
that delivery by such means shall have the same effect as delivery of an original counterpart thereof.

 

18.           SECTION
4999 EXCISE TAX.

 

(a)            Notwithstanding
anything in this Agreement or any other agreement between the Executive and the Company (or any of its subsidiaries or affiliates)
to the contrary, in the event that the provisions of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”)
relating to “parachute payments” (as defined in the Code) shall be applicable to any payment or benefit received or
to be received by the Executive from the Company or its affiliates in connection with a change in the ownership or effective control
of the Company within the meaning of Section 280G of the Code (a “Change in Control Transaction”) (collectively,
“Payments”), then (a) at the Executive’s request, the Company agrees to submit such Payments to
a shareholder vote intended to comply with the provisions of Section 280G(b)(5) of the Code, or (b) in the event that the Executive
does not request a shareholder vote as set forth above or the provisions of Section 280G(b)(5) are inapplicable to the Company,
then any such Payments shall be equal to the “Reduced Amount” where the Reduced Amount is (1) the largest
portion of the Payments that will result in no portion of such Payments being subject to the excise tax imposed by Section 4999
of the Code, or (2) the entire amount of the Payments otherwise scheduled to be paid (without reduction), whichever of the forgoing
amounts after taking into account all applicable federal, state and local employment taxes, income taxes and the excise tax of
Section 4999 of the Code (all computed at the highest applicable merged rate, net of the maximum reduction in federal income taxes
which could be obtained from a deduction of all state and local taxes), results in the Executive’s receipt, on an after-tax
basis, of the greatest amount of Payments. If subsection (1) above applies and a reduced amount of the Payments is payable, then
any reduction of Payments required by such provision shall occur in the following order: (i) first, a reduction of any Payments
that are exempt from Section 409A in a manner the Company reasonably determines will provide the Executive with the greatest
post-reduction economic benefit, and (ii) second, a reduction of any Payments that are subject to Section 409A on a pro-rata
basis or such other manner that complies with Section 409A, as reasonably determined by the Company.

 

    	13

    	 

    

 

(b)           In
connection with a Change in Control Transaction, the Company shall engage a certified public accounting firm (“Accountants”)
to perform the calculations to determine if the Payments to the Executive would reasonably be subject to Section 280G of the Code,
and the Company shall use commercially reasonable efforts to (1) cause the Accountants to finalize such calculations and (2) deliver
such calculations and supporting documentation to the Executive, by no later than five (5) days before the closing of the Change
in Control Transaction. If the Executive, in good faith, disagrees with or disputes any of the assumptions, findings or determinations
of the Accountants in respect of such calculations, the Company shall use reasonable efforts to cause its Accountants to consider
in good faith the Executive’s position and revise such calculations if the Accountants determine that it is more-likely-than-not,
based on the technical merits, that the Executive’s position will be sustained upon examination by the Internal Revenue Service.

 

19.           SECTION
409A.

 

(a)           Notwithstanding
anything to the contrary herein, the following provisions apply to the extent severance benefits provided herein are subject to
Section 409A of the Code and the regulations and other guidance thereunder and any state law of similar effect (collectively “Section
409A”). Severance benefits shall not commence until Executive has a “separation from service” (as defined
under Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a “separation from
service”). Each installment of severance benefits is a separate “payment” for purposes of Treas. Reg. Section
1.409A-2(b)(2)(i), and the severance benefits are intended to satisfy the exemptions from application of Section 409A provided
under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9). However, if such exemptions are not available
and Executive is, upon separation from service, a “specified employee” for purposes of Section 409A, then, solely to
the extent necessary to avoid adverse personal tax consequences under Section 409A, the timing of the severance benefits payments
shall be delayed until the earlier of (i) six (6) months and one day after Executive’s separation from service, or (ii) Executive’s
death. The parties acknowledge that the exemptions from application of Section 409A to severance benefits are fact specific, and
any later amendment of this Agreement to alter the timing, amount or conditions that will trigger payment of severance benefits
may preclude the ability of severance benefits provided under this Agreement to qualify for an exemption.

 

(b)           It
is intended that this Agreement shall comply with the requirements of Section 409A, and any ambiguity contained herein shall be
interpreted in such manner so as to avoid adverse personal tax consequences under Section 409A. Notwithstanding the foregoing,
the Company shall in no event be obligated to indemnify the Executive for any taxes or interest that may be assessed by the Internal
Revenue Service pursuant to Section 409A of the Code to payments made pursuant to this Agreement. To the extent that any severance
benefit payments are delayed as required by this Agreement due to the application of Section 409A.

 

20.           REPRESENTATIONS.
The Executive represents and warrants to the Company that the Executive has the legal right to enter into this Agreement and to
perform all of the obligations on the Executive’s part to be performed hereunder in accordance with its terms and that the
Executive is not a party to any agreement or understanding, written or oral, which could prevent the Executive from entering into
this Agreement or performing all of the Executive’s obligations hereunder. The Executive further represents and warrants
that he has been advised to consult with an attorney and that he has been represented by the attorney of his choosing during the
negotiation of this Agreement, that he has consulted with his attorney before executing this Agreement, that he has carefully read
and fully understand all of the provisions of this Agreement and that he is voluntarily entering into this Agreement.

 

    	14

    	 

    

 

21.           WITHHOLDING.
The Company may withhold from any and all amounts payable under this Agreement such federal, state and local taxes as may be required
to be withheld pursuant to any applicable law or regulation.

 

22.           SURVIVAL.
The respective obligations of, and benefits afforded to, the Company and the Executive which by their express terms or clear intent
survive termination of the Executive’s employment with the Company, including, without limitation, the provisions of Sections
9 through 27, inclusive of this Agreement, will survive termination of the Executive’s employment with the Company, and will
remain in full force and effect according to their terms.

 

23.           AGREEMENT
OF THE PARTIES. The language used in this Agreement will be deemed to be the language chosen by the parties hereto to express
their mutual intent, and no rule of strict construction will be applied against any party hereto. No agreements or representations,
oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly
set forth in this Agreement. Neither the Executive nor the Company shall be entitled to any presumption in connection with any
determination made hereunder in connection with any arbitration, judicial or administrative proceeding relating to or arising under
this Agreement.

 

24.           INTEGRATION.
This Agreement contains the complete, final and exclusive agreement of the parties relating to the terms and conditions of the
Executive’s employment and the termination of the Executive’s employment, and supersedes all prior and contemporaneous
oral and written employment agreements or arrangements between the parties, including but not limited to the Confidentiality
Agreement, dated July 7, 2014, the Consulting Agreement, dated January 1, 2010, as amended, and the Severance Benefit Plan Participation
Notice, dated May 14, 2014.

 

25.           AMENDMENT.
This Agreement cannot be amended or modified except by a written agreement signed by the Executive and a duly authorized officer
of the Company, who has been authorized to do so by a decision of the Board of Directors of the Company.

 

26.           WAIVER.
No term, covenant or condition of this Agreement or any breach thereof shall be deemed waived, except with the written consent
of the party against whom the wavier is claimed, and any waiver or any such term, covenant, condition or breach shall not be deemed
to be a waiver of any preceding or succeeding breach of the same or any other term, covenant, condition or breach.

 

27.           CHOICE
OF LAW. This Agreement shall be construed and interpreted in accordance with the internal laws of the State of New York
without regard to its conflict of laws principles.

 

    	15

    	 

    

 

28.           DISPUTE
RESOLUTION. To ensure the rapid and economical resolution of disputes that may arise in connection with the Executive’s
employment with the Company, the Executive and the Company agree that any and all disputes, claims, or causes of action, in law
or equity shall be resolved, to the fullest extent permitted by law, by final, binding and confidential arbitration in Buffalo,
New York conducted by JAMS, Inc. (“JAMS”) or its successor, under JAMS’ then applicable rules
and procedures for employment disputes, which can be found at http://www.jamsadr.com/rules-clauses/,
and which will be provided to the Executive upon request. By agreeing to this arbitration procedure, both the Executive and
the Company waive the right to resolve any such dispute through a trial by jury or judge or by administrative proceeding. The
Executive will have the right to be represented by legal counsel at any arbitration proceeding. The arbitrator shall: (1) have
the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be available
under applicable law in a court proceeding; and (2) issue a written statement signed by the arbitrator regarding the disposition
of each claim and the relief, if any, awarded as to each claim, the reasons for the award, and the arbitrator’s essential
findings and conclusions on which the award is based. The Company shall pay all filing fees in excess of those which would be
required if the dispute were decided in a court of law, and shall pay the arbitrator’s fees and any other fees or costs
unique to arbitration. Except as may be awarded by the arbitrator, each party shall bear its own legal fees in connection with
such arbitration. Nothing in this Agreement shall prevent either the Executive or the Company from obtaining injunctive relief
in court to prevent irreparable harm pending the conclusion of any such arbitration, including but not limited to any harm caused
by violations of Paragraph 9, including, but not limited to Paragraph 9(c) [Non-Competition]. Any awards or orders in such arbitrations
may be entered and enforced as judgments in the federal and state courts of any competent jurisdiction.

 

[Signature Page Follows]

 

    	16

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement, effective as of the date first written above.

 

	 	Cleveland BioLabs, Inc.
	 	 	 
	 	By:	/s/ Richard McGowan
	 	 	Richard McGowan
	 	 	Chairman of the Board of Directors

 

	 	Date:
	 	 
	 	Andrei Gudkov, Ph.D., DSci.
	 	 
	 	/s/ Andrei Gudkov
	 	 
	 	Date:

  

Signature
Page to Executive Employment Agreement

 

    	 

    	 

    

 

Exhibit A

CLEVELAND BIOLABS, INC.

 

TERMINATION CERTIFICATION

 

This is to certify that I do not have
in my possession, nor have I failed to return, any devices, records, data, notes, reports, proposals, lists, correspondence, specifications,
drawings, blueprints, sketches, materials, equipment, other documents or property, or reproductions of any aforementioned items
belonging to Cleveland BioLabs, Inc., its subsidiaries, affiliates, successors or assigns (together, the "Company").

 

I further certify that I have complied
with all the terms of the Company's Employment Agreement signed by me, including the reporting of any inventions and original works
of authorship (as defined therein), conceived or made by me (solely or jointly with others) covered by that agreement and that
relate directly to the Company’s proposed business, products or research and development.

 

I further agree that, in compliance
with the Executive Employment Agreement, I will preserve as confidential all trade secrets, confidential knowledge, data or other
proprietary information relating to products, processes, know-how, designs, formulas, developmental or experimental work, computer
programs, data bases, other original works of authorship, customer lists, business plans, financial information or other subject
matter pertaining to any business of the Company or any of its employees, clients, consultants or licensees.

 

I further agree that for twenty-four
(24) months from this date, in accordance with Section 9(c)(i) of the Executive Employment Agreement, I will not solicit, induce,
recruit or encourage any of the Company's employees to leave their employment.

 

	Date: 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	(Employee's Signature)
	 	 	 	 
	 	 	 	 
	 	 	 	(Type/Print Employee's Name)

  

    	 

    	 

    

 

Exhibit
B

 

LIST
OF PRIOR INVENTIONS

AND ORIGINAL WORKS OF AUTHORSHIP

 

	Title	 	Date	 	Identifying Number  

or Brief Description
	 	 	 	 	 
	Small Molecules Inhibiting Ocoprotein MYC	 	October 12, 2012	 	61/712,933

                                                       

        PCT/US13/064,883

         

        14,434,803

 

         No
inventions or improvements

 

      
  Additional Sheets Attached

 

Signature of Executive: /s/ Andrei
Gudkov             

 

Print Name of Executive: Andrei
Gudkov                

 

Date:EX-10.1

 Exhibit 10.1 

FORM OF 
 RESTRICTED
STOCK AWARD AGREEMENT 
 CEO MARKET-BASED VESTING 

PAYCOM SOFTWARE, INC. 

2014 LONG-TERM INCENTIVE PLAN 

1. Grant of Award. Pursuant to the Paycom Software, Inc. 2014 Long-Term Incentive Plan (the “Plan”) for
Employees, Contractors, and Outside Directors of Paycom Software, Inc., a Delaware corporation (the “Company”), the Company grants to 
  

					
			  
		
			(the “Participant”)		

 an Award of Restricted Stock in accordance with Section 6.4 of the Plan. The number of shares of Common Stock awarded
under this Restricted Stock Award Agreement (this “Agreement”) is                     
(                ) shares (the “Awarded Shares”). The “Date of Grant” of this Award is
[                 ], 2015. 
 2. Subject to Plan;
Definitions. 
 a. This Agreement is subject to the terms and conditions of the Plan, and the terms of the Plan shall
control to the extent not otherwise inconsistent with the provisions of this Agreement. To the extent the terms of the Plan are inconsistent with the provisions of the Agreement, this Agreement shall control. This Agreement is subject to any rules
promulgated pursuant to the Plan by the Board or the Committee and communicated to the Participant in writing. 
 b. The
capitalized terms used herein that are defined in the Plan shall have the same meanings assigned to them in the Plan; provided, that the following terms shall have the meanings set forth below: 

i. “Appraised Value” means the value ascribed to a share of the subject Equity Securities as set forth
in the most recent written appraisal previously issued by an independent Person selected by the audit committee of the Company nationally recognized as having experience in providing investment banking or similar appraisal or valuation services and
with expertise generally in the valuation of securities; provided, that it being understood that neither the Board nor the audit committee shall have any obligation to obtain any such appraisal more than once per calendar year. 

ii. “Cause” shall have the meaning set forth in that certain Executive Employment Agreement, entered
into on December 30, 2013, by and between the Participant and the Company. 
 iii. “Equity
Securities” means, as applicable, (a) any capital stock, membership interests or other share capital, (b) any securities directly or indirectly convertible into or exchangeable for any capital stock, membership interests or
other share capital or containing any profit participation features, (c) any rights or options directly or indirectly to subscribe for or to purchase any capital stock, membership interests, other share capital or securities containing any
profit participation features or to 

  
 - 1 - 

 
subscribe for or to purchase any securities directly or indirectly convertible into or exchangeable for any capital stock, membership interests, other share capital or securities containing any
profit participation features, (d) any share appreciation rights, phantom share rights or other similar rights, or (e) any Equity Securities as defined in clauses (a) through (d) above issued or issuable with respect to the
securities referred to in clauses (a) through (d) above in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization. 

iv. “Equity Securities Value Per Share” means, for any class or series of Equity Securities of the
Company, for any date, the price determined by the first of the following clauses that applies: (a) if such Equity Securities are then listed or quoted on a Trading Market, the arithmetic average of the VWAP of a share of such Equity Securities
on each of the twenty (20) consecutive Trading Days immediately preceding such date; (b) if the Equity Securities are not then listed or quoted for trading on a Trading Market and if prices for such Equity Securities are then reported on
the OTC Bulletin Board (or a similar organization or agency succeeding to its functions of reporting prices), the arithmetic average of the closing bid price per share of the Common Stock so reported on each of the twenty (20) consecutive
Trading Days immediately preceding such date; or (c) in all other cases, the Appraised Value of a share of such Equity Securities. 

v. “First TEV Threshold” means $2.65 billion. 

vi. “SEC” means the Securities and Exchange Commission. 

vii. “Second TEV Threshold” means $3.50 billion. 

viii. “Total Enterprise Value” means the sum of: (i) the product of (A) the Equity Securities
Value Per Share of a share of Common Stock not subject to vesting or other restrictions multiplied by (B) the number of outstanding shares of Common Stock, less (y) the number of outstanding shares of Restricted Stock or Other Awards of
shares of Common Stock without vesting restrictions, in each case, issued after the date of this Agreement (including outstanding shares of Common Stock resulting from the vesting of such Restricted Stock), and less (z) the number of shares of
Common Stock issued by the Company after the date of this Agreement in connection with any merger, consolidation, share exchange or other transaction in which, in each case, the Company acquires voting securities of another Person or all or any
portion of another Person’s assets; (ii) for each other class or series of Equity Securities of the Company, if any, the product of (A) Equity Securities Value Per Share for such class or series of such Equity Securities of the
Company multiplied by (B) the number of shares of such class or series of such Equity Securities of the Company, less (y) the number of shares of such class or series of such Equity Securities issued under the Plan (or otherwise issued for
compensatory purposes) after the date of this Agreement, and less (z) the number of shares of such class or series of such Equity Securities issued by the Company after the date of this Agreement in connection with any merger, consolidation,
share exchange or other transaction in which, in each case, the Company acquires the voting securities of another Person or all or any portion of another Person’s assets; and (iii) the principal amount of all outstanding funded
indebtedness of the Company less the aggregate amount of cash and cash equivalents of the Company (exclusive of funds held on behalf of clients). 

  
 - 2 - 

 ix. “Trading Day” means each Monday, Tuesday, Wednesday,
Thursday and Friday, other than any day on which securities are not traded on the applicable Trading Market or in the applicable securities market. 

x. “Trading Market” means the primary securities exchange on which the Common Stock is listed or quoted
for trading on the date in question. 
 xi. “VWAP” means the daily volume weighted average price of a
share of the Common Stock for such date on the Trading Market on which the Common Stock is then listed or quoted for trading as reported by Bloomberg L.P. (or successor thereto) using its “Volume at Price” function (based on a Trading Day
from 9:30 a.m. (New York City time) to 4:00 p.m. (New York City time)). 
 3. Vesting. Except as specifically provided in this
Agreement and subject to certain restrictions and conditions set forth in the Plan, the Awarded Shares shall vest as follows: 

a. Fifty percent (50%) of the Awarded Shares shall vest on the first date, if any, that the Total Enterprise Value equals
or exceeds the First TEV Threshold, provided the Participant is employed by (or if the Participant is a Contractor or an Outside Director, is providing services to) the Company or a Subsidiary on that date. 

b. Fifty percent (50%) of the Awarded Shares shall vest on the first date, if any, that the Total Enterprise Value equals
or exceeds the Second TEV Threshold, provided the Participant is employed by (or if the Participant is a Contractor or an Outside Director, is providing services to) the Company or a Subsidiary on that date. 

Notwithstanding the foregoing, all Awarded Shares not previously vested shall immediately become vested in full upon a Termination of Service as a result of
the Participant’s death or Total and Permanent Disability. In addition, in the event that (i) a Change in Control occurs, and (ii) this Agreement is not assumed by the surviving corporation or its parent, or the surviving corporation
or its parent does not substitute its own restricted shares, then immediately prior to the effective date of such Change in Control, all Awarded Shares not previously vested shall thereupon immediately become fully vested. 

Notwithstanding anything herein to the contrary, in the event of the Participant’s Termination of Service by the Company without Cause, the unvested
Awarded Shares shall remain outstanding for a period of one (1) year following such Termination of Service and shall remain eligible for vesting in accordance with this Section 3; provided, that any Awarded Shares that do not
become vested within the one (1) year period immediately following such Termination of Service shall be immediately forfeited and shall cease to be outstanding. 

4. Forfeiture of Awarded Shares. Except as otherwise provided in Section 3, Awarded Shares that are not vested in
accordance with Section 3 shall be forfeited on the date of the Participant’s Termination of Service. Upon forfeiture, all of the Participant’s rights with respect to the forfeited Awarded Shares shall cease and terminate,
without any further obligations on the part of the Company. 
 5. Restrictions on Awarded Shares. Subject to the provisions of the
Plan and the terms of this Agreement, from the Date of Grant until the date the Awarded Shares are vested in accordance with Section 3 and are no longer subject to forfeiture in accordance with Section 4 (the
“Restriction Period”), the Participant shall not be permitted to sell, transfer, pledge, hypothecate, margin, assign or otherwise encumber any of the Awarded Shares. Except for these limitations, the Committee may in its sole
discretion, remove any or all of the restrictions on such Awarded Shares whenever it may determine that, by reason of changes in applicable laws or changes in circumstances after the date of this Agreement, such action is appropriate. 

  
 - 3 - 

 6. Legend. The following legend shall be placed on all certificates issued representing
Awarded Shares: 
 On the face of the certificate: 

“Transfer of this stock is restricted in accordance with conditions printed on the reverse of this certificate.” 

On the reverse: 

“The shares of stock evidenced by this certificate are subject to and transferable only in accordance with that certain Paycom Software,
Inc. 2014 Long-Term Incentive Plan, a copy of which is on file at the principal office of the Company in Oklahoma City, Oklahoma. No transfer or pledge of the shares evidenced hereby may be made except in accordance with and subject to the
provisions of said Plan. By acceptance of this certificate, any holder, transferee or pledgee hereof agrees to be bound by all of the provisions of said Plan.” 

The following legend shall be inserted on a certificate evidencing Common Stock issued under the Plan if the shares were not issued in a
transaction registered under the applicable federal and state securities laws: 
 “Shares of stock represented by this certificate have
been acquired by the holder for investment and not for resale, transfer or distribution, have been issued pursuant to exemptions from the registration requirements of applicable state and federal securities laws, and may not be offered for sale,
sold or transferred other than pursuant to effective registration under such laws, or in transactions otherwise in compliance with such laws, and upon evidence satisfactory to the Company of compliance with such laws, as to which the Company may
rely upon an opinion of counsel satisfactory to the Company.” 
 All Awarded Shares owned by the Participant shall be subject to the
terms of this Agreement and shall be represented by a certificate or certificates bearing the foregoing legend. 
 7. Delivery of
Certificates; Registration of Shares. The Company shall deliver certificates for the Awarded Shares to the Participant or shall register the Awarded Shares in the Participant’s name, free of restriction under this Agreement, promptly after,
and only after, the Restriction Period has expired without forfeiture pursuant to Section 4. In connection with any issuance of a certificate for Restricted Stock, the Participant shall endorse such certificate in blank or execute a
stock power in a form satisfactory to the Company in blank and deliver such certificate and executed stock power to the Company. 
 8.
Rights of a Stockholder. Except as provided in Section 4 and Section 5 above, the Participant shall have, with respect to his Awarded Shares, all of the rights of a stockholder of the

  
 - 4 - 

 
Company, including the right to vote the shares, and the right to receive any dividends thereon. Any stock dividends paid with respect to Awarded Shares shall at all times be treated as Awarded
Shares and shall be subject to all restrictions placed on such Awarded Shares; any such stock dividends paid with respect to Awarded Shares shall vest as the related Awarded Shares become vested. 

9. Voting. The Participant, as record holder of the Awarded Shares, has the exclusive right to vote, or consent with respect to, such
Awarded Shares until such time as the Awarded Shares are transferred in accordance with this Agreement; provided that this Section 9 shall not create any voting right where the holders of such Awarded Shares otherwise have no such
right. 
 10. Adjustment to Number of Awarded Shares. The number of Awarded Shares shall be subject to adjustment in accordance with
Articles 11-13 of the Plan. 
 11. Specific Performance. The parties acknowledge that remedies at law will be inadequate
remedies for breach of this Agreement and consequently agree that this Agreement shall be enforceable by specific performance. The remedy of specific performance shall be cumulative of all of the rights and remedies at law or in equity of the
parties under this Agreement. 
 12. Participant’s Representations. Notwithstanding any of the provisions hereof, the
Participant hereby agrees that he or she will not acquire any Awarded Shares, and that the Company will not be obligated to issue any Awarded Shares to the Participant hereunder, if the issuance of such shares shall constitute a violation by the
Participant or the Company of any provision of any law or regulation of any governmental authority. Any determination in this connection by the Company shall be final, binding, and conclusive. The rights and obligations of the Company and the rights
and obligations of the Participant are subject to all Applicable Laws, rules, and regulations. 
 13. Investment Representation.
Unless the Awarded Shares are issued in a transaction registered under applicable federal and state securities laws, by his or her execution hereof, the Participant represents and warrants to the Company that all Common Stock which may be purchased
and or received hereunder will be acquired by the Participant for investment purposes for his or her own account and not with any intent for resale or distribution in violation of federal or state securities laws. Unless the Common Stock is issued
to him or her in a transaction registered under the applicable federal and state securities laws, all certificates issued with respect to the Common Stock shall bear an appropriate restrictive investment legend and shall be held indefinitely, unless
they are subsequently registered under the applicable federal and state securities laws or the Participant obtains an opinion of counsel, in form and substance satisfactory to the Company and its counsel, that such registration is not required. 

14. Participant’s Acknowledgments. The Participant acknowledges that a copy of the Plan has been made available for his review by
the Company, and represents that he is familiar with the terms and provisions thereof, and hereby accepts this Award subject to all the terms and provisions thereof. The Participant hereby agrees to accept as binding, conclusive, and final all
decisions or interpretations of the Committee or the Board, as appropriate, upon any questions arising under the Plan or this Agreement. 

15. Law Governing. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Delaware
(excluding any conflict of laws rule or principle of Delaware law that might refer the governance, construction, or interpretation of this agreement to the laws of another state). 

16. No Right to Continue Service or Employment. Nothing herein shall be construed to confer upon the Participant the right to continue
in the employ or to provide services to the Company or any Subsidiary, whether as an Employee or as a Contractor or as an Outside Director, or interfere with or restrict in any way the right of the Company or any Subsidiary to discharge the
Participant as an Employee, Contractor, or Outside Director at any time. 

  
 - 5 - 

 17. Legal Construction. In the event that any one or more of the terms, provisions, or
agreements that are contained in this Agreement shall be held by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect for any reason, the invalid, illegal, or unenforceable term, provision, or agreement shall not
affect any other term, provision, or agreement that is contained in this Agreement and this Agreement shall be construed in all respects as if the invalid, illegal, or unenforceable term, provision, or agreement had never been contained herein. 

18. Covenants and Agreements as Independent Agreements. Each of the covenants and agreements that are set forth in this Agreement shall
be construed as a covenant and agreement independent of any other provision of this Agreement. The existence of any claim or cause of action of the Participant against the Company, whether predicated on this Agreement or otherwise, shall not
constitute a defense to the enforcement by the Company of the covenants and agreements that are set forth in this Agreement. 
 19.
Entire Agreement. This Agreement together with the Plan supersede any and all other prior understandings and agreements, either oral or in writing, between the parties with respect to the subject matter hereof and constitute the sole and only
agreements between the parties with respect to the said subject matter. All prior negotiations and agreements between the parties with respect to the subject matter hereof are merged into this Agreement. Each party to this Agreement acknowledges
that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party or by anyone acting on behalf of any party, which are not embodied in this Agreement or the Plan and that any agreement, statement or
promise that is not contained in this Agreement or the Plan shall not be valid or binding or of any force or effect. 
 20. Parties
Bound. The terms, provisions, and agreements that are contained in this Agreement shall apply to, be binding upon, and inure to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, and
permitted successors and assigns, subject to the limitation on assignment expressly set forth herein. No person shall be permitted to acquire any Awarded Shares without first executing and delivering an agreement in the form satisfactory to the
Company making such person or entity subject to the restrictions on transfer contained herein. 
 21. Modification. No change or
modification of this Agreement shall be valid or binding upon the parties unless the change or modification is in writing and signed by the parties. Notwithstanding the preceding sentence, the Company may amend the Plan to the extent permitted by
the Plan. 
 22. Headings. The headings that are used in this Agreement are used for reference and convenience purposes only and do
not constitute substantive matters to be considered in construing the terms and provisions of this Agreement. 
 23. Gender and
Number. Words of any gender used in this Agreement shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise. 

  
 - 6 - 

 24. Notice. Any notice required or permitted to be delivered hereunder shall be deemed to
be delivered only when actually received by the Company or by the Participant, as the case may be, at the addresses set forth below, or at such other addresses as they have theretofore specified by written notice delivered in accordance herewith:

 a. Notice to the Company shall be addressed and delivered as follows: 

Paycom Software, Inc. 
 7501 W.
Memorial Rd. 
 Oklahoma City, OK 73142 

Attn: Chief Financial Officer 

b. Notice to the Participant shall be addressed and delivered as set forth on the signature page. 

25. Tax Requirements. The Participant is hereby advised to consult immediately with his or her own tax advisor regarding the tax
consequences of this Agreement, the method and timing for filing an election to include this Agreement in income under Section 83(b) of the Code, and the tax consequences of such election. By execution of this Agreement, the Participant agrees
that if the Participant makes such an election, the Participant shall provide the Company with written notice of such election in accordance with the regulations promulgated under Section 83(b) of the Code. The Company or, if applicable,
any Subsidiary (for purposes of this Section 25, the term “Company” shall be deemed to include any applicable Subsidiary), shall have the right to deduct from all amounts paid in cash or other form in connection
with the Plan, any Federal, state, local, or other taxes required by law to be withheld in connection with this Award. The Company may, in its sole discretion, also require the Participant receiving shares of Common Stock issued under the Plan to
pay the Company the amount of any taxes that the Company is required to withhold in connection with the Participant’s income arising with respect to this Award. Such payments shall be required to be made when requested by Company and may be
required to be made prior to the delivery of any certificate representing shares of Common Stock. Such payment may be made (i) by the delivery of cash to the Company in an amount that equals or exceeds (to avoid the issuance of fractional
shares under (iii) below) the required tax withholding obligations of the Company; (ii) if the Company, in its sole discretion, so consents in writing, the actual delivery by the Participant to the Company of shares of Common Stock, other
than (A) Restricted Stock, or (B) Common Stock that the Participant has acquired from the Company within six (6) months prior thereto, which shares so delivered have an aggregate Fair Market Value that equals or exceeds (to avoid the
issuance of fractional shares under (iii) below) the required tax withholding payment; (iii) if the Company, in its sole discretion, so consents in writing, the Company’s withholding of a number of shares to be delivered upon the
vesting of this Award, which shares so withheld have an aggregate Fair Market Value that equals (but does not exceed) the required tax withholding payment; or (iv) any combination of (i), (ii), or (iii). The Company may, in its sole discretion,
withhold any such taxes from any other cash remuneration otherwise paid by the Company to the Participant. 
 * * * * * * * * * * 

[Remainder of Page Intentionally Left Blank. 

Signature Page Follows] 

  
 - 7 - 

 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized
officer, and the Participant, to evidence his or her consent and approval of all the terms hereof, has duly executed this Agreement, as of the date specified in Section 1 hereof. 

 

			
	COMPANY:
	
	Paycom Software, Inc.
		
	By:		  

	Name:		  

	Title:		  

	
	PARTICIPANT:
	
	  

	Signature
		
	Name:		
	Address:		  

			  

 Signature Page to Restricted Stock Award Agreement – 

CEO Market-Based Vesting

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