Document:

Exhibit 10.1

 

STOCK
SUBSCRIPTION AGREEMENT

 

This
STOCK SUBSCRIPTION AGREEMENT dated as of December 18, 2015 is by and between Open Joint Stock Company “Rusnano”, a
company organized under the laws of the Russian Federation with its registered address at 10A prospect 60-letiya Oktyabrya, Moscow
117036, Russian Federation (the “Investor”) and Cleveland BioLabs, Inc., a Delaware corporation with
its principal business address at 73 High Street, Buffalo, New York USA 14203 (the “Company”).

 

WHEREAS,
the Company, the Investor and Panacela Labs, Inc. (“Panacela”) have entered into that certain Acknowledgement
Agreement dated as of the date hereof (the “Acknowledgement Agreement”), pursuant to which the parties hereto
are required to deliver this Agreement (as defined below);

 

WHEREAS,
the Company is authorized by its Restated Certificate of Incorporation, as amended (the “Certificate of Incorporation”),
to issue up to 160,000,000 shares of its Common Stock (as defined below);

 

WHEREAS,
the Investor hereby offers to subscribe for and purchase, and the Company desires to provide for the subscription for and purchase
of, 256,215 shares of Common Stock (the “Shares”), at $4.45 per Share (the closing market price of a share
of Common Stock of the Company on the NASDAQ Capital Market as of October 13, 2015) in exchange for the Investor agreeing to apply
the aggregate value of the Shares (i.e., $1,140,156.75) (the “Aggregate Value”) to satisfy partially the obligations
owed by Panacela to the Investor under the Panacela Loan Documents (the “Purchase Consideration”); and

 

WHEREAS,
the Company will derive a benefit from the partial satisfaction of Panacela’s debt because the issuance of the Shares to
the Investor is in partial satisfaction of the Company’s payment obligations under that certain Stock Subscription Agreement
between the Company and Panacela, dated as of the date hereof.

 

NOW,
THEREFORE, in consideration of the premises and of the mutual covenants and agreements hereinafter set forth, the Company and
the Investor hereby agree as follows:

 

1.           Definitions.

 

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

 

“Affiliate”
means, with respect to a specified Person, a Person that directly, or indirectly through one or more intermediaries, controls
or is controlled by, or is under common control with, the Person specified. For purposes of this definition, “control”
means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract, or otherwise.

 

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“Agreement”
means this Stock Subscription Agreement dated as of the date hereof, and all amendments hereto made in accordance with the provisions
of Section ‎9(b).

 

“Common
Stock” means the Common Stock, $0.005 par value per share, of the Company.

 

“Exchange
Act” means the United States Securities Exchange Act of 1934, as amended.

 

“Governmental
Authority” means any United States federal, state or local or any foreign government, governmental, regulatory or administrative
authority, agency or commission or any court, tribunal, or judicial or arbitral body.

 

“Lien”
means any security interest, pledge, mortgage, lien (including, without limitation, environmental and tax liens), charge, encumbrance,
adverse claim, preferential arrangement or restriction of any kind, including, without limitation, any restriction on the use,
voting, transfer, receipt of income or other exercise of any attributes of ownership.

 

“Material
Adverse Effect” means any circumstance, change in or effect on the Company or any of its Subsidiaries that, individually
or in the aggregate with all other circumstances, changes in, or effects on, the Company and/or its Subsidiaries is materially
adverse to the business, operations, assets, liabilities, results of operations or financial condition of the Company and its
Subsidiaries, taken as a whole.

 

“Panacela
Loan Documents” means that certain Convertible Loan Agreement, dated September 3, 2013, between the Investor and Panacela
(as amended and supplemented by that certain Amendment and Supplemental Agreement No. 1 to Convertible Loan Agreement dated as
of the date hereof).

 

“Person”
means an individual, corporation, limited liability company, partnership, association, trust, joint stock company or other entity
or organization, including a government or political subdivision or an agency or instrumentality thereof.

 

“Securities
Act” means the United States Securities Act of 1933, as amended.

 

“SEC”
means the United States Securities and Exchange Commission.

 

“SEC
Reports” means the reports set forth on Schedule A hereto.

 

“Subsidiary”
or “Subsidiaries” means, with respect to any Person, any entity of which (i) securities or other ownership
interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions,
(ii) more than 50% of the interest in the capital or profits of such Person or entity or (iii) more than 50% of the beneficial
interest in such trust or estate, is at the time of determination directly or indirectly owned or controlled by such Person.

 

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(b)          The
terms not defined in Section 1(a) above shall have the meanings set forth in this Agreement.

 

2.          Purchase
and Sale of the Shares.

 

(a)          Commitments
to Purchase the Shares. In reliance on the representations and warranties herein contained of the Investor, but subject to
the terms and conditions hereinafter stated, the Company agrees to issue and sell to the Investor and the Investor, in reliance
on the representations and warranties herein contained of the Company, but subject to the terms and conditions hereinafter stated,
agrees to purchase from the Company the Shares, for an aggregate purchase price equal to the Purchase Consideration.

 

(b)          The
Closing. Subject to the terms and conditions of this Agreement, the closing (the “Closing”) of the purchase
and sale provided for in Section 2(a) shall take place at McGuireWoods LLP, 7 Saint Paul Street, Suite 1000, Baltimore,
Maryland 21202 on December 18, 2015 or at such other date and place as the parties shall agree. At the option of the
parties, documents to be delivered to the place of Closing may be delivered by electronic transmission on or before the Closing.

 

(c)          Deliveries.
At the Closing, (i) the Investor hereby acknowledges that upon receipt of the Shares, an amount equal to the Aggregate Value shall
be applied in partial satisfaction of the indebtedness by Panacela to the Investor pursuant to the Panacela Loan Documents, in
accordance with the Acknowledgement Agreement, and (ii) the Company shall deliver to Rusnano the Shares in book-entry form to
be purchased by the Investor pursuant to this Agreement registered in the name of the Investor, each as described in more detail
in the Acknowledgement Agreement.

 

3.           Representations
and Warranties of the Company.

 

The
Company represents and warrants to the Investor as follows as of the Closing:

 

(a)          Organization,
Standing, etc. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State
of Delaware and has all requisite power and authority to own, operate or lease the properties and assets now owned, operated or
leased by it and to carry on its business as it has been and is currently conducted. The Company is duly licensed or qualified
to do business and is in good standing in each jurisdiction in which the properties owned or leased by it or the operation of
its business makes such licensing or qualification necessary or desirable, except where the failure to be so licensed, qualified
or in good standing would not have a Material Adverse Effect.

 

(b)          Authorization,
Noncontravention. The Company has all requisite power and authority to enter into this Agreement, to perform its obligations
hereunder and to consummate the transactions contemplated hereby. The execution and delivery by the Company of this Agreement,
the consummation of the transactions contemplated herein, and the fulfillment of and compliance with the respective terms, conditions
and provisions hereof or of any instruments required hereby have been duly authorized by all requisite action on the part of the
Company and do not and will not (i) conflict with or result in a breach of any of the terms, conditions or provisions of any (A)
law or regulation of any Governmental Authority applicable to the Company or any of its Subsidiaries, (B) writ, injunction, award
or decree of any court or arbitral tribunal applicable to the Company or any of its Subsidiaries, or (C) material agreement or
instrument to which the Company or any of its Subsidiaries is a party, by which it is bound, or to which it is subject, (ii) result
in (A) the creation or imposition of any Lien or (B) any violation of the Certificate of Incorporation or bylaws (or analogous
documents) of the Company or any of its Subsidiaries or (iii) require filing with, notice to or consent of any Governmental Authority
or other third Person, except as set forth in Section ‎3(f).

 

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(c)          Binding
Effect. This Agreement has been duly authorized, executed and delivered by the Company, and assuming due authorization, execution
and delivery by the Investor, this Agreement constitutes the legal, valid and binding obligation of the Company, enforceable against
the Company in accordance with its terms, except that enforceability hereof may be limited by (i) applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting creditors’ rights generally and (ii) equitable principles which may
limit the availability of certain equitable remedies (such as specific performance).

 

(d)           Capitalization,
Subsidiaries.

 

(i)          The
shares of Common Stock comprising the Shares to be purchased pursuant to this Agreement have been duly authorized and, when issued,
delivered and paid for in accordance with the terms of this Agreement, will have been validly issued and will be fully paid and
nonassessable and effective as of the Closing the Investor shall have valid and legal title to the Shares, free and clear of all
Liens, other than restrictions on transfer pursuant to U.S. federal and state securities laws. Other than as described in the
SEC Reports previously filed by the Company, (A) there are no outstanding or authorized subscriptions, warrants, options, calls,
commitments or other rights or agreements to which the Company or any other Person is bound or entitled to the benefit of relating
to the issuance, sale, redemption, conversion, transfer or voting of any equity interests of the Company; and (B) the issuance
of the Shares will not be subject to preemptive or similar rights. Immediately following the Closing, the authorized capital stock
of the Company will consist of 10,000,000 shares of Preferred Stock and 160,000,000 shares of Common Stock, of which zero (0)
shares of Preferred Stock will be issued and outstanding, and following the Closing 10,987,166 shares of Common Stock will be
issued and outstanding.

 

(ii)         The
Company has no Subsidiaries other than those disclosed in the SEC Reports previously filed by the Company.

 

(e)          Solicitation.
No form of general solicitation or general advertising was used by the Company, or, to the best knowledge of the Company, any
other Person acting on its behalf, in respect of the Shares or in connection with the offer and sale of the Shares.

 

(f)           No
Other Action. No action by, or in respect of, or filing with, any Governmental Authority is required for the execution, delivery
and performance of this Agreement by the Company and acquisition of the Shares, except for the Form D filing pursuant to Rule
506 of Regulation D of the Securities Act and any notice filings required by the laws of any U.S. state or any political subdivision
thereof.

 

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(g)          SEC
Reports. The SEC Reports, as of their respective dates of filing with the SEC, did not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading, and no event or circumstances have occurred since the date of
the last SEC Report that would (i) cause the Confidential Private Placement Memorandum of Panacela, dated as of December 4, 2015,
as supplemented by that certain Confidential Private Placement Memorandum Supplement, dated as of December 15, 2105 to contain
any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading or (ii) require the filing with the SEC of any report, statement
or schedule under the Securities Act or the Exchange Act, where such filing has not been made as of the date of this Agreement.

 

4.           Representations
and Warranties of the Investor.

 

The
Investor represents and warrants to the Company as follows as of the Closing:

 

(a)          Organization
and Authority. The Investor is a joint stock company duly organized, validly existing and in good standing under the laws
of the Russian Federation and has all necessary power and authority to enter into this Agreement, to carry out its obligations
hereunder and to consummate the transactions contemplated hereby.

 

(b)          Authorization,
Noncontravention. The execution and delivery of this Agreement by the Investor, the performance by the Investor of its obligations
hereunder and the consummation by the Investor of the transactions contemplated hereby have been duly authorized on its part by
all requisite action. The execution and delivery by the Investor of this Agreement, the consummation of the transactions contemplated
herein, and the fulfillment of and compliance with the respective terms, conditions and provisions hereof or of any instruments
required hereby have been duly authorized by all requisite action on the part of the Investor and do not and will not (i) conflict
with or result in a breach of any of the terms, conditions or provisions of any (A) law or regulation of any Governmental Authority
applicable to the Investor, (B) writ, injunction, award or decree of any court or arbitral tribunal applicable to the Investor,
or (C) material agreement or instrument to which the Investor is a party, by which it is bound, or to which it is subject, (ii)
result in any violation of the organizational documents of the Investor or (iii) require filing with, notice to or consent of
any third Person.

 

(c)          Binding
Effect. This Agreement has been duly executed and delivered by the Investor and (assuming due authorization, execution and
delivery by the Company) constitutes a legal, valid and binding obligation of the Investor, enforceable against the Investor in
accordance with its terms, except that enforceability hereof may be limited by (i) applicable bankruptcy, insolvency, reorganization,
moratorium and similar laws affecting creditors’ rights generally and (ii) equitable principles which may limit the availability
of certain equitable remedies (such as specific performance).

 

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(d)          No
Other Action. No action by, or in respect of, or filing with, any Governmental Authority is required for the execution, delivery
and performance of this Agreement by the Investor.

 

(e)          Investment
Intent. The Shares to be acquired by the Investor hereunder are being acquired for its own account and without a view to the
public distribution of such Shares or any interest therein.

 

5.            Investment
Representations. The Investor further represents and warrants to the Company as follows as of the Closing:

 

(a)         Shares
Unregistered. Subject to Section ‎7, the Investor understands and acknowledges that (i) the offering and sale of the Shares
to be acquired by the Investor hereunder are intended to be exempt from registration under the Securities Act pursuant to Section
4(a)(2) thereof and, accordingly, the offer and sale of the Shares have not been registered under the Securities Act, (ii) the
Shares must be held indefinitely and the Investor must continue to bear the economic risk of the investment in the Shares unless
the offering and sale of such Shares are subsequently registered under the Securities Act and all applicable securities laws of
the states of the United States of America (“U.S. state securities laws”) or an exemption from such registration
is available and (iii) a restrictive legend describing, in customary form, the limitations on transferability imposed by the Securities
Act shall be placed on all Shares (whether in certificated or book-entry form) to be acquired by the Investor hereunder.

 

(b)          The
Shares are speculative investments which involve a substantial degree of risk of loss by the Investor of its investment in the
Shares.

 

(c)          No
federal or state agency has made any findings as to the fairness of the terms of the offering of the Shares.

 

(d)          That
the Investor is an “accredited investor” as that term is defined in Regulation D under the Securities Act and is otherwise
a sophisticated, knowledgeable investor (either alone or with the aid of a purchaser representative) with adequate net worth and
income for this investment. The Investor acknowledges that it has completed the Accredited Investor Certificate contained in Annex A
hereto and that the information contained therein is complete and accurate as of the date hereof, and the Investor will immediately
notify the Company if any such information contained therein becomes incomplete or inaccurate at any time.

 

(e)          That
the Investor has knowledge and experience in financial and business matters, is capable of evaluating the merits and risks of
an investment in the Company and its proposed activities and has carefully considered the suitability of an investment in the
Company for the Investor’s particular financial situation, and has determined that the Shares are a suitable investment.

 

(f)           That
the Investor has reviewed the information provided or available to the Investor by the Company in connection with the Investor’s
decision to purchase the Shares, including but not limited to, the Company’s SEC Reports. The Investor acknowledges it is
the Investor’s responsibility to conduct its own independent investigation and evaluation of the Company. That the offer
to sell the Shares was communicated to the Investor by the Company in such a manner that the Investor was able to ask questions
of and receive answers from the Company concerning the terms and conditions of this transaction and that at no time was the Investor
presented with or solicited by any leaflet, public promotional meeting, newspaper or magazine article, radio or television advertisement
or any other form of advertising or general solicitation.

 

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(g)          That
the Investor is a joint stock company, resident in the Russian Federation, is providing a Form W-8BEN, and the Investor will notify
the Company within sixty (60) days of any change to such status and of any new country of residence. The Investor agrees to provide
to the Company in a timely manner any tax documentation that may be reasonably required by the Company.

 

(h)          That
the Investor is an existing entity, and has not been organized or reorganized for the purpose of making this investment (or if
not true, such fact shall be disclosed to the Company in writing).

 

6.            Covenants.

 

(a)          Investment
Company Act. The Company shall take all reasonable actions necessary to remain exempt from the provisions of the Investment
Company Act of 1940, as amended.

 

(b)          Further
Action. If at any time after the date hereof any further action is reasonably necessary to carry out the purpose of this Agreement,
each of the Company and the Investor agrees to use its reasonable efforts to take such further action.

 

(c)          Restrictions
on Transfer. Prior to any proposed sale, assignment, transfer or pledge of any Shares, unless there is in effect a registration
statement under the Securities Act and any applicable U.S. state securities laws covering the proposed transfer, the Investor
shall give written notice to the Company of the Investor’s intention to effect such transfer, sale, assignment or pledge.
Each such notice shall describe the manner and circumstances of the proposed transfer, sale, assignment or pledge in sufficient
detail, and shall be accompanied, at the Investor’s expense with evidence satisfactory to the Company that the proposed
transfer of the Shares may be effected without registration under the Securities Act or any applicable U.S. state securities laws.

 

(d)          Form
D Filing. The Company shall properly and timely effectuate the filing of Form D pursuant to Rule 506 of the Securities Act.

 

(e)          Rule
144. With a view to making available the benefits of certain rules and regulations of the SEC that may permit the sale of
the Shares to the public without registration, the Company agrees to make and keep available adequate current public information,
as those terms are understood and defined in Rule 144, at all times from and after the date of effectiveness of the initial Registration
Statement filed pursuant to this Agreement until the earlier of (i) the date that all Shares are sold, assigned or transferred
by the Investor or (ii) three (3) years from the date of this Agreement.

 

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7.            Registration
Rights.

 

(a)          Within
sixty (60) days of the Closing, the Company shall prepare and file with the SEC a registration statement or, if a registration
statement is then effective, a supplement to the prospectus contained therein, in either case covering the resale of all Shares
for an offering to be made on a continuous basis pursuant to Rule 415 (or any successor provision) (the “Registration
Statement”). The Registration Statement shall be on Form S-3 (except if the Company is not then eligible to register
for resale the Shares on Form S-3, in which case such registration shall be on another appropriate form in accordance with the
Securities Act and the Exchange Act).

 

(b)          The
Company shall use its reasonable best efforts to keep the Registration Statement continuously effective under the Securities Act
until the earlier of the date that all Shares covered by such Registration Statement have been sold or can be sold publicly without
any volume limitations under Rule 144 (the “Effectiveness Period”).

 

8.            Registration
Procedures. In connection with the Company’s registration obligations hereunder, the Company shall:

 

(a)          Not
less than three days prior to the filing of a Registration Statement or any related prospectus or any amendment or supplement
thereto, furnish to the Investor copies of all such documents proposed to be filed, which documents (other than any document that
is incorporated or deemed to be incorporated by reference therein) will be subject to the review of the Investor. The Company
shall reflect in each such document when so filed with the SEC such comments regarding the description of the transactions contemplated
by this Agreement, the Investor and the plan of distribution as the Investor may reasonably and promptly propose no later than
two business days after the Investor has been so furnished with copies of such documents as aforesaid.

 

(b)          (i)
Prepare and file with the SEC such amendments, including post-effective amendments, to each Registration Statement and the prospectus
used in connection therewith as may be necessary to keep the Registration Statement continuously effective, as to the Shares for
the Effectiveness Period and prepare and file with the SEC such additional Registration Statements in order to register for resale
under the Securities Act all of the Shares; (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus
supplement, and as so supplemented or amended to be filed pursuant to Rule 424 (or any successor provision) under the Securities
Act; and (iii) comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to
the disposition of all Shares covered by the Registration Statement during the applicable period in accordance with the intended
methods of disposition by the Investor thereof set forth in the Registration Statement as so amended or in such prospectus included
therein as so supplemented.

 

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(c)          Notify
the Investor as promptly as reasonably possible, and if requested by the Investor, confirm such notice in writing no later than
two business days thereafter, of any of the following events: (i) the SEC issues any stop order suspending the effectiveness of
any Registration Statement or initiates any proceedings for that purpose; (ii) the Company receives notice of any suspension of
the qualification or exemption from qualification of any of the Shares for sale in any jurisdiction, or the initiation or threat
of any proceeding for such purpose; or (iii) the financial statements included in any Registration Statement become ineligible
for inclusion therein or any Registration Statement or prospectus included therein or other document contains any untrue statement
of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading.

 

(d)          Prior
to any public offering of the Shares, use reasonable best efforts to register or qualify or cooperate with the selling Investor
in connection with the registration or qualification (or exemption from such registration or qualification) of the Shares for
offer and sale under the securities or Blue Sky laws of such jurisdictions within the United States as the Investor requests in
writing, to keep each such registration or qualification (or exemption therefrom) effective for so long as required, but not to
exceed the duration of the Effectiveness Period, and to do any and all other acts or things reasonably necessary or advisable
to enable the disposition in such jurisdictions of the Shares covered by a Registration Statement; provided, however,
that the Company shall not be obligated to file any general consent to service of process or to qualify as a foreign corporation
or as a dealer in securities in any jurisdiction in which it is not so qualified or to subject itself to taxation in respect of
doing business in any jurisdiction in which it is not otherwise so subject.

 

(e)           It
shall be a condition precedent to the obligations of the Company to complete the registration filing pursuant to this Agreement
with respect to the Shares that the Investor furnish to the Company the information regarding itself, the Shares and the intended
method of disposition of the Shares held by it as shall be reasonably required to effect the registration of such Shares under
the Securities Act and shall complete and execute such documents in connection with the foregoing as the Company may reasonably
request.

 

(f)           The
Company shall pay all fees and expenses (other than all underwriting discounts, selling fees or commissions and stock transfer
taxes applicable to any sale of the Shares (collectively, “Selling Expenses”)) incurred in connection with
the performance of or compliance with Sections 7 and 8 of this Agreement by the Company, including without limitation
(a) all registration and filing fees and expenses, including without limitation those related to filings with the SEC, any national
securities exchange and in connection with applicable state securities or Blue Sky laws, (b) printing expenses (including without
limitation expenses of printing certificates for the Shares), (c) messenger, telephone and delivery expenses, (d) fees and disbursements
of counsel for the Company, (e) fees and expenses of all other Persons retained by the Company in connection with the consummation
of the transactions contemplated by this Agreement, and (f) all listing fees to be paid by the Company to the applicable national
securities exchange. All Selling Expenses incurred in connection with the sale of the Shares shall be borne by the Investor or
other holder selling such Shares. The Investor or other holder of the Shares shall pay the expenses of its own counsel and other
advisers.

  

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(g)          In
addition and not in limitation of the foregoing, the Company shall as promptly as practicable:

 

(i)          In
case of an underwritten offering, furnish to the Investor and to any underwriter of the Shares (A) an opinion of counsel for the
Company addressed to such underwriter and the Investor and dated the date of the closing under the underwriting agreement (if
any) (or if such offering is not underwritten, dated the effective date of the Registration Statement) and (B) “cold comfort”
letters dated as of the effective date of the Registration Statement and brought down to the date of the closing under the underwriting
agreement addressed to such underwriter and the Investor and signed by the independent public accountants who have audited the
financial statements of the Company included in such Registration Statement, in each case such case covering substantially the
same matters with respect to such Registration Statement (and the prospectus included therein) as are customarily covered in opinions
of issuer’s counsel and accountants’ letters delivered to underwriters in connection with the consummation of underwritten
public offerings of securities and such other matters as the Investor may reasonably request and, in the case of such accountants’
letter, with respect to events subsequent to the date of such financial statements;

 

(ii)          in
the case of an underwritten offering, cause the senior executive officers of the Company to participate in any customary “road
show” presentations that may be reasonably requested by the managing underwriter or underwriters in any such underwritten
offering and otherwise to facilitate, cooperate with, and participate in each proposed offering contemplated herein and customary
selling efforts related thereto;

 

(iii)         make
available to the appropriate representatives of the underwriters, if any, and the Investor, access to such information and Company
personnel as is reasonable and customary to enable such parties to establish a due diligence defense under the Securities Act,
including without limitation, such reasonable and customary access to its books, records and properties and such opportunities
to discuss the business and affairs of the Company with its officers and the independent public accountants who have certified
the financial statements of the Company as shall be necessary, in the reasonable opinion of the Investor and such underwriters
or their respective counsel, to conduct a reasonable investigation within the meaning of the Securities Act

 

(h)          Underwriting
Agreement. In connection with any underwritten offering of the Shares, the Company shall enter into an underwriting agreement
in customary form with the underwriters for such offering, which agreement will contain such representations, warranties and covenants
by the Company and such other terms and provisions as are customarily contained in underwriting agreements with respect to secondary
distributions, including indemnification and contribution provisions substantially to the effect and to the extent provided in
Section ‎8(i), and agreements as to the provision of opinions of counsel and accountants’ letters to the effect and
to the extent provided in Section ‎8(g)(i). Subject to the last sentence of this Section ‎8(h), the Investor on whose
behalf the Shares are to be distributed by such underwriters shall be a party to any such underwriting agreement, which shall
also contain such representations and warranties by the Investor and such other terms and provisions as are customarily contained
in underwriting agreements with respect to secondary distributions on the part of selling shareholders, including indemnification
and contribution provisions substantially to the effect and to the extent provided in Section ‎8(i). All of the representations
and warranties by, and the other agreements on the part of, the Company to and for the benefit of the underwriters included in
each such underwriting agreement shall also be made to and for the benefit of the Investor, and any or all of the conditions precedent
to the obligations of such underwriters under such underwriting agreement shall be conditions precedent to the obligations of
the Investor. The Investor shall not be required in any such underwriting agreement to make any representations or warranties
to or agreements with the Company or the underwriters other than representations, warranties or agreements regarding the Investor,
ownership of the Investor’s Shares, the Investor’s intended method of distribution and any written information specifically
provided by the Investor for inclusion in the Registration Statement; and any liability of the Investor to any underwriter or
other Person under such underwriting agreement for indemnity, contribution or otherwise shall in no case be greater than the amount
of the net proceeds received by the Investor upon the sale of the Shares pursuant to the Registration Statement and in no event
shall relate to anything other than information about the Investor specifically provided in writing by the Investor for use in
the Registration Statement.

 

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(i)           Indemnification
and Contribution.

 

(i)          Company’s
Indemnification Obligations. To the extent permitted by law, the Company shall indemnify and hold harmless the Investor, its
Affiliates, and each of their respective directors, officers, members, managers, partners, employees, stockholders, agents and
advisors and each Person, if any, who controls the Investor within the meaning of Section 15 of the Securities Act (collectively,
the “Investor Indemnified Persons”), from and against any and all losses, claims, damages and liabilities (including
any legal or other costs, fees and expenses reasonably incurred in connection with defending or investigating any such action
or claim, “Damages”) insofar as such Damages are caused by (i) any untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement or any amendment thereof, any free writing prospectus, any preliminary
prospectus or prospectus (as amended or supplemented), offering circular or other document relating to the Shares, (ii) any omission
or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, (iii) any other information provided by the Company, either directly or through the underwriters, to any purchaser
of the Shares in connection with or at the time of sale of the Shares or any omissions of material facts that any purchaser of
the Shares lacked at the time of sale of such Shares or (iv) any violation (or alleged violation) by the Company of the Securities
Act, the Exchange Act, any state securities laws or any rule or regulation thereunder applicable to the Company and relating to
action or inaction required of the Company in connection with any offering covered by such registration, qualification, or compliance,
except insofar as such Damages are caused by (y) any such untrue statement or omission or alleged untrue statement or omission
which is based upon and in conformity with information relating to the Investor which is furnished to the Company in writing by
such Investor Indemnified Person expressly for use therein; provided, that the indemnity agreement contained in this Section ‎8(i)(i)
shall be subject to compliance with Section ‎8(i)(iii), and provided, further, that the foregoing exception to the indemnity
agreement contained in this Section ‎8(i)(i) shall not apply to the extent that the Investor has furnished in writing to the
Company prior to the filing of any such Registration Statement, amendment thereof, free writing prospectus, preliminary prospectus,
prospectus, offering circular, amendment or supplement information expressly for use in such Registration Statement, amendment
thereof, free writing prospectus, preliminary prospectus, prospectus, offering circular, amendment or supplement which corrected
or made not misleading information previously furnished to the Company, and the Company failed to include such information therein
or (z) the use by the Investor of an outdated, defective or otherwise unavailable prospectus after the Company has notified the
Investor in writing that the prospectus is outdated, defective or otherwise unavailable for use by the Investor.

 

    	 	11	 

     

    

 

(ii)          To the extent permitted by law, the Investor agrees to indemnify and hold harmless the Company, all Affiliates of the Company,
each of their respective directors, officers, members, managers, partners, employees, stockholders, agents and advisors and each
Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act (collectively, the “Company
Indemnified Persons”), from and against any and all Damages insofar as such Damages are caused by (x) the use by the
Investor of an outdated, defective or otherwise unavailable prospectus after the Company has notified the Investor in writing
that the prospectus is outdated, defective or otherwise unavailable for use by the Investor or (y) any untrue statement or alleged
untrue statement of a material fact contained in any Registration Statement or any amendment thereof, any free writing prospectus,
preliminary prospectus or prospectus (as amended or supplemented), offering circular or other document relating to the Shares,
or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, but only with reference to information relating to the Investor furnished in writing by
or on behalf of such Investor expressly for use in a Registration Statement, any free writing prospectus, preliminary prospectus,
prospectus, offering circular, or any amendments or supplements thereto, it being understood and agreed that the only information
furnished or to be furnished for use in any such Registration Statement, free writing prospectus, preliminary prospectus, prospectus,
offering circular, or amendment or supplement thereto are statements specifically relating to (i) the beneficial ownership of
shares of Common Stock by the Investor and its Affiliates as disclosed in the section of such document entitled “Selling
Stockholders” or “Principal and Selling Stockholders” or (ii) other matters relating to the Investor required
to be disclosed in response to Item 507 of Regulation S-K under the Securities Act and the Exchange Act; provided, that the Investor
shall not be liable in any such case to the extent that the Investor has furnished in writing to the Company prior to the filing
of the Registration Statement, free writing prospectus, preliminary prospectus, prospectus, offering circular, amendment or supplement
information expressly for use in the Registration Statement, preliminary prospectus, prospectus, offering circular, amendment
or supplement which corrected or made not misleading information previously furnished to the Company, and the Company failed to
include such information therein. Notwithstanding any other provision of this Section ‎8(i), the Investor’s obligations
to indemnify pursuant to this Section ‎8(i) in connection with any given registration shall not exceed the amount of net proceeds
received by the Investor in connection with the offering of its Shares under such registration.

 

    	 	12	 

     

    

 

(iii)         Each party indemnified under Section ‎8(i)(i) or ‎8(i)(ii) above shall, promptly after receipt of notice of a claim or
action against such indemnified party in respect of which indemnity may be sought hereunder, notify the indemnifying party in
writing of the claim or action and the indemnifying party shall assume the defense thereof, including the employment of counsel
reasonably satisfactory to such indemnified party, and shall assume the payment of all fees and expenses; provided, that the failure
of any indemnified party so to notify the indemnifying party shall not relieve the indemnifying party of its obligations hereunder
except to the extent that the indemnifying party is materially prejudiced by such failure to notify. In any such action, any indemnified
party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the sole expense of
such indemnified party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention
of such counsel or (ii) in the reasonable judgment of such indemnified party representation of both parties by the same counsel
would be inappropriate due to actual or potential differing interests between them, in which case the fees and expenses of one
separate counsel (together with any required local counsel) shall be at the sole expense of the indemnifying party. It is understood
that the indemnifying party shall not, other than as provided in the preceding sentence, be liable for the reasonable fees and
expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all such indemnified parties,
and that all such fees and expenses shall be reimbursed as they are incurred. The indemnifying party shall not be liable for any
settlement of any claim or action effected without its written consent, which consent shall not be unreasonably withheld or delayed,
but if settled with such consent, or if there be a final judgment for the plaintiff, the indemnifying party shall indemnify and
hold harmless such indemnified parties from and against any loss or liability (to the extent stated above) by reason of such settlement
or judgment. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of
any pending or threatened claim or action in respect of which any indemnified party is or could have been a party and indemnity
could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified
party from all liability arising out of such proceeding and imposes no obligations on such indemnified party other than the payment
of monetary damages (which damages will be paid by the indemnifying party hereunder).

 

(iv)         If the indemnification provided for in this Section ‎8(i) shall for any reason be unavailable (other than in accordance with
its terms), including without limitation instances where (i) a party otherwise entitled to indemnification is judicially determined
(by entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial
of the last right of appeal) that such indemnification may not be enforced, notwithstanding the fact that this Section ‎8(i)
provides for indemnification, or (ii) contribution under the Securities Act may be required on the part of any party hereto, for
which indemnification is provided under this Section ‎8(i), then the indemnifying party shall, in lieu of indemnifying such
indemnified party, contribute to the amount paid or payable by the indemnified party as a result of any Damages that would otherwise
be indemnifiable hereunder, in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the
one hand and the indemnified party on the other. The relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates
to information supplied by the indemnifying party or the indemnified party and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such untrue statement or omission. Notwithstanding anything in this
Section ‎8(i)(iv) to the contrary, in no event shall the Investor’s liability pursuant to this Section ‎8(i)(iv),
when combined with the amounts paid or payable by the Investor pursuant to Section ‎8(i)(ii), in connection with any given
registration, exceed the net proceeds received by the Investor in connection with the offering of its Shares under such registration.
In addition, neither the Investor or any Affiliate thereof shall be required to pay any amount under this Section ‎8(i)(iv)
unless such Person or entity would have been required to pay an amount pursuant to Section ‎8(i)(ii) if it had been applicable
in accordance with its terms. The parties to this Agreement agree that it would not be just and equitable if contribution pursuant
to this Section ‎8(i)(iv) were determined by pro rata allocation or by any other method of allocation that does not take account
of the equitable considerations referred to in the immediately preceding 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 such fraudulent misrepresentation. If indemnification is available under this Section ‎8(i), the indemnifying parties shall
indemnify each indemnified party to the full extent provided in Sections ‎8(i)(i) and ‎8(i)(ii) without regard to the
relative fault of said indemnifying parties or indemnified party.

 

    	 	13	 

     

    

 

(v)          The
obligations of the parties under this Section ‎8(i) shall be in addition to any liability which any party may otherwise have
to any other party.

 

(vi)         The
rights and obligations of the Company and the Investor under this Section ‎8(i) shall survive the Closing or any termination
of this Agreement, and shall control over any inconsistent or conflicting provisions in any underwriting agreement.

 

9.            Miscellaneous.

 

(a)          Governing
Law. This Subscription Agreement shall be construed, governed, interpreted and applied in accordance with the laws of the
State of New York, without regard to principles of conflicts of laws.

 

(b)          Entire
Agreement. This Agreement, together with the Acknowledgement Agreement and the Panacela Loan Documents, constitute the entire
agreement between the parties hereto with respect to the subject matter hereof and supersede any prior or contemporaneous understandings,
representations, warranties or agreements (whether oral or written).

 

(c)          No
Waivers, Amendments. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be
construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure or delay
on the part of any party in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or remedy.
The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. Any provision
of this Agreement may be amended if, but only if such amendment is in writing and is signed by the Company and the Investor. Any
agreement on the part of any party to any waiver shall be valid only if set forth in a written instrument executed and delivered
by a duly authorized officer on behalf of such party.

 

    	 	14	 

     

    

 

(d)          Successors
and Assigns. This Acknowledgment shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

 

(e)          Communications.
All notices, consents and other communications hereunder shall be in writing and shall be deemed to have been duly given (i) when
delivered by hand or by Federal Express or a similar overnight courier, (ii) five business (5) days after being deposited in any
United States Post Office enclosed in a postage prepaid and registered or certified envelope addressed to or (iii) when successfully
transmitted by fax or e-mail (with a confirming copy of such communication to be sent as provided in clauses (i) or (ii) above)
to, the party for whom intended, at the address or fax number for such party set forth below (or at such other address, fax number
or e-mail address for a party as shall be specified by like notice, provided, however, that any notice of change of address, fax
number or e-mail address shall be effective only upon receipt):

 

(i)         
If to the Company:

 

Cleveland
BioLabs, Inc.

73
High Street

Buffalo,
New York USA 14203

Attention:
Chief Executive Officer

Facsimile:
(716) 849-6820

E-mail:
notices@cbiolabs.com

 

With
a copy to:

 

McGuireWoods
LLP

7
Saint Paul Street, Suite 1000

Baltimore,
Maryland USA 21202

Attention:
Cecil E. Martin, III

Facsimile:
(410) 659-4535

E-mail:
cmartin@mcguirewoods.com

 

(ii)         If
to the Investor:

 

OJSC
“RUSNANO”

10A
Prospect 60-Letiya Oktyabrya

Moscow
117036

Russian
Federation

Attention:
Leysan Shaydullina, Investment Manager

Facsimile:
7-495-988-5399

E-mail:
Leysan.Shaydullina@rusnano.com

 

    	 	16	 

     

    

 

With
a copy to:

 

Dentons
US LLP

1221
Avenue of Americas

New
York, NY 10020-1089

USA

Attention:
Olga Sandler

Facsimile:
+1-212-768-6800

Email:
olga.sandler@dentons.com

 

(f)          Survival
of Provisions. The representations, warranties, covenants and agreements contained in this Agreement shall survive the consummation
of the transactions contemplated hereby. This Section ‎9(f) shall not limit any covenant or agreement of the parties
hereto which, by its terms, contemplates performance after the Closing. Without limiting the generality of the previous sentence,
Section ‎9(g) shall survive beyond the Closing.

 

(g)         Expenses,
Documentary Taxes. Each party shall pay all costs and expenses that it incurs with respect to the negotiation, execution,
delivery and performance of this Agreement, or any amendment or waiver hereof.

 

(h)         Headings.
The descriptive headings contained in this Agreement are for convenience of reference only and shall not affect in any way the
meaning or interpretation of this Agreement.

 

(i)          Severability.
Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in such manner as to be effective,
enforceable and valid under applicable law, but if any provision or portion of any provision of this Agreement is held to be invalid,
illegal or unenforceable under applicable law, this Agreement shall be considered divisible and such provision or portion thereof
shall be deemed inoperative to the extent it is deemed invalid, illegal or unenforceable, and in all other respects this Agreement
shall remain in full force and effect and such invalidity, illegality or unenforceability shall not affect any other provision
or portion of any provision

 

(j)          No
Third-Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their permitted assigns and nothing
herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy
of any nature whatsoever under or by reason of this Agreement.

 

(k)         Execution
in Counterparts. This Agreement may be executed in two counterparts, each of which when executed shall be deemed to be an
original, but all of which taken together shall constitute one and the same agreement. The delivery of signed counterparts by
facsimile or email transmission that includes a copy of the sending party’s signature is as effective as signing and delivering
the counterpart in person, for all purposes; provided that an original of such facsimile or electronic signature shall be delivered
within five (5) business days thereof.

 

(l)          Currency.
All references to “$” in this Agreement shall be deemed to refer to U.S. dollars, the legal currency of the United
States of America.

 

[Signatures
Follow]

 

    	 	17	 

     

    

 

IN
WITNESS WHEREOF, the undersigned has executed this Stock Subscription Agreement as of the date first written above.

 

	256,215	 	Open
    Joint Stock Company “Rusnano”
	Number
    of Shares of Common Stock Subscribed for	 	 	 
	 	 	 	 
	 	 	By:	/s/
    Yurii Udalstov        
	 	 	on
    behalf of  OJSC Rusnano 

Yurii Udaltsov

 Deputy Chairman of the Management Board of Management company RUSNANO LLC
    acting on the basis of a power of attorney

 

THE
SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED UNLESS THE SECURITIES
ARE REGISTERED UNDER THE ACT OR AN EXEMPTION THEREFROM IS AVAILABLE, AND THEN ONLY IN COMPLIANCE WITH THE CERTIFICATE OF INCORPORATION
AND STOCKHOLDERS’ AGREEMENT.

 

	Accepted by the Company:

                                                                                
	 
	 	 
	CLEVELAND
    BIOLABS, INC.	 
	 	 
	By:	/s/
    C. Neil Lyons	 
	 	C.
    Neil Lyons, CPA	 
	 	Executive
    Vice President & Chief Financial Officer	 

 

 

 

[Signature
Page for Rusnano/CBLI Subscription Agreement]

 

     

     

    

 

Schedule
A

 

SEC
Reports

 

		1.	Annual
                                         Report on Form 10-K, filed with the SEC on February 27, 2015;

 

		2.	Current
                                         Report on Form 8-K, filed with the SEC on March 13, 2015;

 

		3.	Current
                                         Report on Form 8-K, filed with the SEC on April 17, 2015;

 

		4.	Current
                                         Report on Form 8-K, filed with the SEC on May 4, 2015;

 

		5.	Quarterly
                                         Report on Form 10-Q, filed with the SEC on May 7, 2015;

 

		6.	Current
                                         Report on Form 8-K, filed with the SEC on May 11, 2015;

 

		7.	Current
                                         Report on Form 8-K, filed with the SEC on May 18, 2015;

 

		8.	Current
                                         Report on Form 8-K, filed with the SEC on June 24, 2015;

 

		9.	Current
                                         Report on Form 8-K, filed with the SEC on June 25, 2015;

 

		10.	Current
                                         Report on Form 8-K, filed with the SEC on July 7, 2015;

 

		11.	Current
                                         Report on Form 8-K, filed with the SEC on July 9, 2015;

 

		12.	Current
                                         Report on Form 8-K, filed with the SEC on July 10, 2015;

 

		13.	Current
                                         Report on Form 8-K, filed with the SEC on July 13, 2015;

 

		14.	Quarterly
                                         Report on Form 10-Q, filed with the SEC on August 12, 2015;

 

		15.	Current
                                         Report on Form 8-K, filed with the SEC on September 2, 2015;

 

		16.	Current
                                         Report on Form 8-K, filed with the SEC on September 21, 2015; and

 

		17.	Quarterly
                                         Report on Form 10-Q, filed with the SEC on November 9, 2015.

 

     

     

    

 

Annex
A

 

Accredited
Investor Certificate

 

The
undersigned hereby certifies to being an “accredited investor” as that term is defined in Regulation D adopted
pursuant to the Securities Act of 1933, as amended (the “Securities Act”). The specific category(s) of accredited
investor applicable to the undersigned is checked below.

 

		☐	an
                                         individual whose individual net worth, or joint net worth with the individual’s
                                         spouse, exceeds $1,000,000 (excluding the value of the individual’s primary residence)
                                         (the term “net worth” means the excess of total assets over total liabilities).

 

		☐	an
                                         individual who had an individual income in excess of $200,000 in each of 2013 and 2014
                                         or joint income with that person’s spouse in excess of $300,000 in each of those
                                         years and who reasonably expects to reach the same income level in 2015.

 

    	 	A-1	 

     

    

 

		☐	a
                                         bank as defined in Section 3(a)(2) of the Securities Act, or a savings and loan
                                         association or other institution as defined in Section 3(a)(5)(A) of the Securities
                                         Act, whether acting in its individual or fiduciary capacity; a broker or dealer registered
                                         pursuant to Section 15 of the Securities Exchange Act of 1934, as amended; an insurance
                                         company as defined in Section 2(13) of the Securities Act; an investment company
                                         registered under the Investment Company Act of 1940 (the “1940 Act”) or a
                                         business development company as defined in Section 2(a)(48) of the 1940 Act; a Small
                                         Business Investment Company licensed by the U.S. Small Business Administration under
                                         Section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established
                                         and maintained by a state, its political subdivisions, or any agency or instrumentality
                                         of a state or its political subdivisions, for the benefit of its employees, if such plan
                                         has total assets in excess of $5,000,000; or an employee benefit plan within the meaning
                                         of Title I of the Employee Retirement Income Security Act of 1974 (“ERISA”),
                                         if the investment decision is made by a plan fiduciary, as defined in Section 3(21)
                                         of ERISA, which is either a bank, savings and loan association, insurance company or
                                         registered investment adviser, or if the employee benefit plan has total assets in excess
                                         of $5,000,000 or if a self-directed plan, with investment decisions made solely by persons
                                         that are accredited investors.

 

		☐	a
                                         private business development company as defined in Section 202(a)(22) of the Investment
                                         Advisers Act of 1940.

 

		☐	an
                                         organization described in Section 501(c)(3) of the Internal Revenue Code, a corporation,
                                         a Massachusetts or similar business trust, or a partnership, not formed for the specific
                                         purpose of acquiring the Purchased Stock, with total assets in excess of $5,000,000.

 

		☐	an
                                         individual who is a director or executive officer of the Company.

 

		☐	a
                                         trust, with total assets in excess of $5,000,000, not formed for the specific purpose
                                         of acquiring the securities offered, whose purchase is directed by a person who has such
                                         knowledge and experience in financial and business matters that he or she is capable
                                         of evaluating the merits and risks of the prospective investment.

 

		☐	an
                                         entity in which all of the equity owners are accredited investors as set forth above.

  

Open
Joint Stock Company “Rusnano”

  

	By:	/s/
    Yurii Udalstov	 

	

        on
        behalf of OJSC Rusnano
	 
	Yurii
    Udaltsov	 
	Deputy
    Chairman of the Management Board	 
	of
    Management company RUSNANO LLC	 
	acting
    on the basis of a power of attorney	 

 

Address:10A
Prospect 60-Letiya Oktyabrya

 Moscow
117036

 Russian Federation

 

 

A-2Exhibit 10.2

 

STOCK
SUBSCRIPTION AGREEMENT

 

STOCK
SUBSCRIPTION AGREEMENT dated as of December 18, 2015 by and between Cleveland BioLabs, Inc., a Delaware corporation with a principal
business address of 73 High Street, Buffalo, New York USA 14203 (the “Investor”), and Panacela Labs,
Inc., a Delaware corporation with a principal business address at 73 High Street, Buffalo, New York USA 14203 (the “Company”).

 

WHEREAS,
the Company, the Investor and Open Joint Stock Company “Rusnano” (“Rusnano”) have entered into
that certain Acknowledgment Agreement dated as of the date hereof (the “Acknowledgment Agreement”), pursuant
to which the parties hereto are required to deliver this Agreement (as defined below);

 

WHEREAS,
the Company is authorized by its Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”)
to issue up to 137,420 shares of its Common Stock (the “Shares”); and

 

WHEREAS,
the Investor hereby offers to subscribe to and purchase, and the Company desires to provide for the subscription for and purchase
of, 18,710 Shares, for the purchase price per share of $117.40, and an aggregate purchase price of $2,196,554.00 (such aggregate
purchase price, the “Purchase Price”).

 

NOW,
THEREFORE, in consideration of the premises and of the mutual covenants and agreements hereinafter set forth, the Company and
the Investor hereby agree as follows:

 

1.           Definitions.

 

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

 

“Agreement”
means this Stock Subscription Agreement dated as of the date hereof, and all amendments hereto made in accordance with the provisions
of Section 6(c).

 

“Common
Stock” means the Common Stock, $0.001 par value per share, of the Company.

 

“Offering
Materials” means this Agreement, the Stockholders’ Agreement and the PPM.

 

“PPM”
means the Confidential Private Placement Memorandum of the Company relating to the Shares dated as of December 4, 2015, as supplemented
and otherwise updated.

 

“Securities
Act” or the “Act” means the United States Securities Act of 1933, as amended.

 

    	 	1	 

     

    

 

“Stockholders’
Agreement” means that certain Stockholders and Investor Rights Agreement, by and among the Company and the stockholders
listed on Schedule 1 thereto, as amended by that certain First Amendment to Stockholders and Investor Rights Agreement dated as
of September 3, 2013.

 

(b)          The
terms not defined in Section 1(a) above shall have the meanings set forth in this Agreement.

 

2.           Purchase
and Sale of the Shares.

 

(a)          Commitments
to Purchase the Shares. Upon the basis of the representations and warranties herein contained of the Investor, but subject
to the terms and conditions hereinafter stated, the Company agrees to issue and sell to the Investor and the Investor, upon the
basis of the representations and warranties herein contained of the Company, but subject to the terms and conditions hereinafter
stated, agrees to purchase from the Company the Shares, for an aggregate purchase price equal to the Purchase Price.

 

(b)          The
Closing. Subject to the terms and conditions of this Agreement, the closing (the “Closing”) of the purchase
and sale provided for in Section 2(a) shall take place at McGuireWoods LLP, 7 Saint Paul Street, Suite 1000, Baltimore,
Maryland 21202 on December 18, 2015 or at such other date and place as the parties shall agree. At the option of the parties,
documents to be delivered to the place of Closing (other than stock certificates evidencing the Shares) may be delivered by electronic
transmission on or before the Closing. It is understood and agreed that the Company shall have the sole right, in its complete
discretion, to accept or reject this subscription, in whole or in part, for any reason or no reason, and that the subscription
shall not be deemed to be accepted by the Company unless and until it is signed by a duly authorized officer of the Company and
delivered to the Investor at the Closing. Subscriptions need not be accepted in the order received, and the shares of Common Stock
being offered hereby may be allocated among subscribers. The undersigned recognizes that in the event this subscription is rejected
in whole or in part, the undersigned’s funds will, to the extent that the shares of Common Stock subscribed for are not
sold to the undersigned, be returned as soon as practicable without interest or deduction.

 

(c)           Delivery.
At the Closing, (i) the Investor shall pay to the Company the Purchase Price by (A) wire transfer of immediately available funds
in the amount of $290,965.61 to Rusnano, on behalf of the Company, in partial satisfaction of the indebtedness by the Company
to Rusnano pursuant to that certain Convertible Loan Agreement between the Company and Rusnano, dated as of September 3, 2013
(as amended and supplemented by that certain Amendment and Supplemental Agreement No. 1 to Convertible Loan Agreement dated as
of the date hereof, the “Convertible Loan Agreement”), (B) wire transfer of immediately available funds in
the amount of $19,876.39 to the Company to be used by the Company for general operating purposes, (C) payment of certain indebtedness
of the Company totaling $412,217.36 owed to Rusnano and certain other third parties as set forth on Exhibit A to that certain
Acknowledgment Agreement, (D) issuance of 256,215 shares of common stock of the Investor to Rusnano (at the aggregate value of
$1,140,156.75) in partial satisfaction, on behalf of the Company, of the indebtedness of the Company under the Convertible Loan
Agreement, and (E) setting off against the remainder of the Purchase Price an amount equal to $333,337.89, which amount reflects
indebtedness owed by the Company to the Investor, in each case as described in the Acknowledgment Agreement and (ii) the Company
shall deliver certificates evidencing the Shares to be purchased by the Investor pursuant to this Agreement in definitive form
and registered in the name of the Investor.

 

    	 	2	 

     

    

 

3.           Representations
and Warranties of the Investor.

 

The
Investor represents and warrants to the Company as follows as of the Closing:

 

(a)           Organization
and Authority. The Investor is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction
of formation and has all necessary power and authority to enter into this Agreement, to carry out its obligations hereunder and
to consummate the transactions contemplated hereby.

 

(b)           Authorization,
Noncontravention. The execution and delivery of this Agreement by the Investor, the performance by the Investor of its obligations
hereunder and the consummation by the Investor of the transactions contemplated hereby have been duly authorized on its part by
all requisite action.

 

(c)          Binding
Effect. This Agreement has been duly executed and delivered by the Investor and (assuming due execution and delivery by the
Company) constitutes a legal, valid and binding obligation of the Investor, enforceable against the Investor in accordance with
its terms.

 

(d)           No
Other Action. No action by, or in respect of, or filing with, any Governmental Authority is required for the execution, delivery
and performance of this Agreement by the Investor.

 

(e)           Investment
Intent. The Shares to be acquired by the Investor hereunder are being acquired for its own account and without a view to the
public distribution of such Shares or any interest therein.

 

(f)           Shares
Unregistered. The Investor understands and acknowledges that (i) the offering and sale of the Shares to be acquired by the
Investor hereunder are intended to be exempt from registration under the Securities Act pursuant to Section 4(a)(2) thereof and,
accordingly, the offer and sale of the Shares have not been registered under the Securities Act, (ii) the Shares must be held
indefinitely and the Investor must continue to bear the economic risk of the investment in the Shares unless the offering and
sale of such Shares are subsequently registered under the Securities Act and all applicable U.S. state securities laws or an exemption
from such registration is available, (iii) there is no established public or other market for the Shares and it is not anticipated
that there will be any public market for the Shares in the foreseeable future, (iv) the Company does not provide current public
information within the meaning of Rule 144 under the Securities Act and, other than in accordance with the Stockholders’
Agreement, the Company has made no covenant to make such information available and (v) a restrictive legend in the form set forth
in Section 12(a) and (b) of the Stockholders’ Agreement shall be placed on all certificates evidencing the Shares to be
acquired by the Investor hereunder.

 

    	 	3	 

     

    

 

4.           Investment
Representations. The Investor further represents and warrants to the Company as follows as of the Closing:

 

(a)           That
the Investor is aware of or has been informed of the following:

 

(i)           The
Shares are speculative investments which involve a substantial degree of risk of loss by the Investor of its investment in the
Shares.

 

(ii)          No
federal or state agency has made any findings as to the fairness of the terms of the offering of the Shares.

 

(iii)         That
any projections or predictions that may have been made available to the Investor are based on estimates, assumptions and forecasts
which may prove to be incorrect; and no assurance is given that actual results will correspond with the results contemplated by
the various projections.

 

(b)           That
the Investor is an “accredited investor” as that term is defined in Regulation D under the Act or is otherwise a sophisticated,
knowledgeable investor (either alone or with the aid of a purchaser representative) with adequate net worth and income for this
investment. The Investor acknowledges that it has completed the Accredited Investor Certificate contained in Annex A
hereto and that the information contained therein is complete and accurate as of the date hereof, and the Investor will immediately
notify the Company if any such information contained therein becomes incomplete or inaccurate at any time.

 

(c)           That
the Investor has knowledge and experience in financial and business matters, is capable of evaluating the merits and risks of
an investment in the Company and its proposed activities and has carefully considered the suitability of an investment in the
Company for the Investor’s particular financial situation, and has determined that the Shares are a suitable investment.

 

(d)           That
the Investor has reviewed the information provided to the Investor by the Company in connection with the Investor’s decision
to purchase the Shares, including but not limited to the PPM. The Investor acknowledges that the PPM is as of December 4, 2015,
as supplemented by that certain Confidential Private Placement Memorandum-Supplement dated as of December 15, 2015, and may not
contain all of the terms and conditions of the offering and sale of the Shares, and understands and acknowledges that it is the
Investor’s responsibility to conduct its own independent investigation and evaluation of the Company; provided, however,
the Investor is not relying on any information contained on the Company’s website located at http://www.panacelalabs.com.
That the offer to sell Shares was communicated to the Investor by the Company in such a manner that the Investor was able to ask
questions of and receive answers from the Company concerning the terms and conditions of this transaction and that at no time
was the Investor presented with or solicited by any leaflet, public promotional meeting, newspaper or magazine article, radio
or television advertisement or any other form of advertising or general solicitation.

 

(a)           That
the Investor has reviewed this Agreement in its entirety, has had an opportunity to obtain the advice of counsel, regulatory,
tax, business, investment, financial and accounting advisers to the extent it has deemed necessary, prior to executing this Agreement
and fully understands all provisions of this Agreement.

 

    	 	4	 

     

    

 

(b)           That
the Investor is an existing entity, and has not been organized or reorganized for the purpose of making this investment (or if
not true, such fact shall be disclosed to the Company in writing along with information concerning the beneficial owners of Investor).

 

5.           Covenants.

 

(a)           Further
Action. If at any time after the date hereof any further action is reasonably necessary to carry out the purpose of this Agreement,
each of the Company and the Investor agrees to use its reasonable efforts to take such further action.

 

(b)           Restrictions
on Transfer. The Investor agrees to comply in all respects with the provisions of this Agreement and the provisions of the
Stockholders’ Agreement. Prior to any proposed sale, assignment, transfer or pledge of any Shares, unless there is in effect
a registration statement under the Securities Act and any applicable U.S. state securities laws covering the proposed transfer,
the Investor thereof shall give written notice to the Company of Investor’s intention to effect such transfer, sale, assignment
or pledge. Each such notice shall describe the manner and circumstances of the proposed transfer, sale, assignment or pledge in
sufficient detail, and shall be accompanied, at the Investor’s expense with evidence satisfactory to the Company the effect
that the proposed transfer of the Shares may be effected without registration under the Securities Act or applicable U.S. securities
laws, and, without limitation, an opinion from Investor’s counsel to such effect shall be deemed satisfactory evidence.
The Investor will cause any proposed purchaser, assignee, transferee or pledgee of the Shares held by the Investor to agree to
take and hold such securities subject to the provisions and conditions of this Agreement, including without limitation this Section
5(b), and the Stockholders’ Agreement.

 

6.           Miscellaneous.

 

(a)           Governing
Law. This Subscription Agreement shall be construed, governed, interpreted and applied in accordance with the laws of the
State of New York, without regard to principles of conflicts of laws.

 

(b)           Entire
Agreement. This Agreement, together with the Offering Materials, the Acknowledgment Agreement and the Convertible Loan Agreement,
constitute the entire agreement between the parties hereto with respect to the subject matter hereof and supersede any prior or
contemporaneous understandings, representations, warranties or agreements (whether oral or written).

 

(c)           No
Waivers, Amendments. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be
construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach. No failure or delay
on the part of any party in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or remedy.
The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. Any provision
of this Agreement may be amended if, but only if such amendment is in writing and is signed by the Company and the Investor. Any
agreement on the part of any party to any waiver shall be valid only if set forth in a written instrument executed and delivered
by a duly authorized officer on behalf of such party.

 

    	 	5	 

     

    

 

(d)           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns. 

 

(e)           Communications.
All notices, consents and other communications hereunder shall be in writing and shall be deemed to have been duly given (i) when
delivered by hand or by Federal Express or a similar overnight courier, (ii) five (5) days after being deposited in any United
States Post Office enclosed in a postage prepaid and registered or certified envelope addressed to or (iii) when successfully
transmitted by fax or e-mail (with a confirming copy of such communication to be sent as provided in clauses (i) or (ii) above)
to, the party for whom intended, at the address or fax number for such party set forth below (or at such other address, fax number
or e-mail address for a party as shall be specified by like notice, provided, however, that any notice of change of address, fax
number or e-mail address shall be effective only upon receipt):

 

(i)           If
to the Company:

 

Panacela
Labs, Inc.

73
High Street

Buffalo,
New York USA 14203

Attention:
Chief Executive Officer

Facsimile:
(716) 849-6820

E-mail:
notices@cbiolabs.com

 

(ii)          If
to the Investor:

 

Cleveland
BioLabs, Inc.

73
High Street

Buffalo,
New York USA 14203

Attention:
Chief Executive Officer

Facsimile:
(716) 849-6820

E-mail:
notices@cbiolabs.com

 

With
a copy to:

 

McGuireWoods
LLP

7
Saint Paul Street, Suite 1000

Baltimore,
Maryland USA 21202

Attention:
Cecil E. Martin, III

Facsimile:
(410) 659-4535

E-mail:
cmartin@mcguirewoods.com

 

    	 	6	 

     

    

 

(f)           Survival
of Provisions. The representations, warranties, covenants and agreements contained in this Agreement shall survive the consummation
of the transactions contemplated hereby. This Section 6(f) shall not limit any covenant or agreement of the parties hereto
which, by its terms, contemplates performance after the Closing. Without limiting the generality of the previous sentence, Section
6(g) shall survive beyond the Closing.

 

(g)           Expenses,
Documentary Taxes. The Investor shall pay all costs and expenses that it incurs with respect to the negotiation, execution,
delivery and performance of this Agreement, or any amendment or waiver hereof.

 

(h)           Headings.
The descriptive headings contained in this Agreement are for convenience of reference only and shall not affect in any way the
meaning or interpretation of this Agreement.

 

(i)           Severability.
Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in such manner as to be effective,
enforceable and valid under applicable law, but if any provision or portion of any provision of this Agreement is held to be invalid,
illegal or unenforceable under applicable law, this Agreement shall be considered divisible and such provision or portion thereof
shall be deemed inoperative to the extent it is deemed invalid, illegal or unenforceable, and in all other respects this Agreement
shall remain in full force and effect and such invalidity, illegality or unenforceability shall not affect any other provision
or portion of any provision.

 

(j)           No
Third-Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their permitted assigns and nothing
herein, express or implied, is intended to or shall confer upon any other person or entity any legal or equitable right, benefit
or remedy of any nature whatsoever under or by reason of this Agreement.

 

(k)           Execution
in Counterparts. This Agreement may be executed in two counterparts, each of which when executed shall be deemed to be an
original, but all of which taken together shall constitute one and the same agreement. The delivery of signed counterparts by
facsimile or email transmission that includes a copy of the sending party’s signature is as effective as signing and delivering
the counterpart in person, for all purposes; provided that an original of such facsimile or electronic signature shall be delivered
within five (5) business days thereof.

 

(l)           Currency.
All references to “$” in this Agreement shall be deemed to refer to U.S. dollars, the legal currency of the United
States of America.

 

[Signatures
Follow]

 

    	 	7	 

     

    

 

IN
WITNESS WHEREOF, the undersigned has executed this Stock Subscription Agreement as of the date first written above.

 

	18,710	 	CLEVELAND
    BIOLABS, INC.
	Number of
    Shares of Common Stock Subscribed for	 	 	 
	 	 	By:	/s/ C. Neil
    Lyons
	 	 	Name:	C. Neil Lyons,
    CPA
	 	 	Title:	Executive
    Vice President & Chief Financial Officer

 

THE
SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED UNLESS THE SECURITIES
ARE REGISTERED UNDER THE ACT OR AN EXEMPTION THEREFROM IS AVAILABLE, AND THEN ONLY IN COMPLIANCE WITH THE CERTIFICATE OF INCORPORATION
AND STOCKHOLDERS’ AGREEMENT.

  

	Accepted
    by the Company:	 
	 	 
	PANACELA LABS, INC.	 
	 	 
	By:	/s/
    C. Neil Lyons	 
	 	C. Neil Lyons, CPA	 
	 	Chief Financial Officer	 

 

 

[Signature
Page for CBLI/Panacela Subscription Agreement]

 

     

     

    

 

Annex
A

 

Accredited
Investor Certificate

 

The
undersigned hereby certifies to being an “accredited investor” as that term is defined in Regulation D adopted
pursuant to the Securities Act of 1933, as amended (the “Securities Act”). The specific category(s) of accredited
investor applicable to the undersigned is checked below.

 

		☐	an
                                         individual whose individual net worth, or joint net worth with the individual’s
                                         spouse, exceeds $1,000,000 (excluding the value of the individual’s primary residence)
                                         (the term “net worth” means the excess of total assets over total liabilities).

 

		☐	an
                                         individual who had an individual income in excess of $200,000 in each of 2013 and 2014
                                         or joint income with that person’s spouse in excess of $300,000 in each of those
                                         years and who reasonably expects to reach the same income level in 2015.

 

		☐	a
                                         bank as defined in Section 3(a)(2) of the Securities Act, or a savings and loan
                                         association or other institution as defined in Section 3(a)(5)(A) of the Securities
                                         Act, whether acting in its individual or fiduciary capacity; a broker or dealer registered
                                         pursuant to Section 15 of the Securities Exchange Act of 1934, as amended; an insurance
                                         company as defined in Section 2(13) of the Securities Act; an investment company
                                         registered under the Investment Company Act of 1940 (the “1940 Act”) or a
                                         business development company as defined in Section 2(a)(48) of the 1940 Act; a Small
                                         Business Investment Company licensed by the U.S. Small Business Administration under
                                         Section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established
                                         and maintained by a state, its political subdivisions, or any agency or instrumentality
                                         of a state or its political subdivisions, for the benefit of its employees, if such plan
                                         has total assets in excess of $5,000,000; or an employee benefit plan within the meaning
                                         of Title I of the Employee Retirement Income Security Act of 1974 (“ERISA”),
                                         if the investment decision is made by a plan fiduciary, as defined in Section 3(21)
                                         of ERISA, which is either a bank, savings and loan association, insurance company or
                                         registered investment adviser, or if the employee benefit plan has total assets in excess
                                         of $5,000,000 or if a self-directed plan, with investment decisions made solely by persons
                                         that are accredited investors.

 

		☐	a
                                         private business development company as defined in Section 202(a)(22) of the Investment
                                         Advisers Act of 1940.

 

    	 	A-1	 

     

    

 

		☐	an
                                         organization described in Section 501(c)(3) of the Internal Revenue Code, a corporation,
                                         a Massachusetts or similar business trust, or a partnership, not formed for the specific
                                         purpose of acquiring the Purchased Stock, with total assets in excess of $5,000,000.

 

		☐	an
                                         individual who is a director or executive officer of the Company.

 

		☐	a
                                         trust, with total assets in excess of $5,000,000, not formed for the specific purpose
                                         of acquiring the securities offered, whose purchase is directed by a person who has such
                                         knowledge and experience in financial and business matters that he or she is capable
                                         of evaluating the merits and risks of the prospective investment.

 

		☐	an
                                         entity in which all of the equity owners are accredited investors as set forth above.

 

CLEVELAND
BIOLABS, INC.

  

	By:	/s/
    C. Neil Lyons	 
	Name:	C.
    Neil Lyons, CPA	 
	Title:	Chief
    Financial Officer	 

 

Address:73
High Street

 Buffalo,
New York 14203

 

 

A-2

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