VOTING AGREEMENT
VOTING
AGREEMENT, dated as of March 16, 2007 (this "Agreement"),
by
and among Cleveland BioLabs, Inc., a Delaware corporation (the "Company"),
and
the stockholders listed on the signature pages hereto under the heading
"Stockholders"
(each a
"Stockholder"
and
collectively, the "Stockholders").
WHEREAS,
the Company has previously issued to the Agent (as defined in the Securities
Purchase Agreement) warrants and at closing of the Transaction (as defined
below) will issue additional Series B warrants to the Agent;
WHEREAS,
as of the date hereof, the Stockholders own collectively 6,975,772 shares of
Common Stock, which represent in the aggregate approximately 59% of the total
issued and outstanding capital stock of the Company; and
WHEREAS,
as a condition to the willingness of the Investors to enter into the Securities
Purchase Agreement and to consummate the transactions contemplated thereby
(collectively, the "Transaction"),
the
Investors have requested that the Company be a party to this Agreement in order
to enforce the terms hereof and have required that each Stockholder agree,
and
in order to induce the Investors to enter into the Securities Purchase
Agreement, each Stockholder has agreed, to enter into this Agreement with
respect to all the Common Stock now owned and which may hereafter be acquired
by
the Stockholder and any other securities, if any, which such Stockholder is
currently entitled to vote, or after the date hererof becomes entitled to vote,
at any meeting of stockholders of the Company (the "Other
Securities").
NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants and
agreements contained herein, and intending to be legally bound hereby, the
parties hereto hereby agree as follows:
ARTICLE
I
VOTING
AGREEMENT OF THE STOCKHOLDER
SECTION
1.01. Voting
Agreement.
Subject
to the last sentence of this Section 1.01, each Stockholder hereby agrees
that at any meeting of the stockholders of the Company, however called, each
of
the Stockholders shall vote the Common Stock and the Other Securities: (a)
in
favor of the Stockholder Approval (as defined in the Securities Purchase
Agreement) as described in Section 4(o) of the Securities Purchase
Agreement; and (b) against any proposal or any other corporate action or
agreement that would result in a breach of any covenant, representation or
warranty or any other obligation or agreement of the Company under the
Securities Purchase Agreement or which could result in any of the conditions
to
the Company's obligations under the Securities Purchase Agreement not being
fulfilled. Each Stockholder acknowledges receipt and review of a copy of the
Securities Purchase Agreement and the other Transaction Documents (as defined
in
the Securities Purchase Agreement). The obligations of the Stockholders under
this Section 1.01 shall terminate immediately following the occurrence of the
Stockholder Approval.
ARTICLE
II
REPRESENTATIONS
AND WARRANTIES OF THE STOCKHOLDER
Each
Stockholder hereby represents and warrants, severally but not jointly, to each
of the Investors as follows:
SECTION
2.01. Authority
Relative to This Agreement.
Each
Stockholder has all necessary power and authority to execute and deliver this
Agreement, to perform his or its obligations hereunder and to consummate the
transactions contemplated hereby. This Agreement has been duly executed and
delivered by such Stockholder and constitutes a legal, valid and binding
obligation of such Stockholder, enforceable against such Stockholder in
accordance with its terms, except (a) as such enforceability may be limited
by
applicable bankruptcy, insolvency, reorganization, fraudulent conveyance,
moratorium or similar laws now or hereafter in effect relating to, or affecting
generally the enforcement of creditors' and other obligees' rights, (b) where
the remedy of specific performance or other forms of equitable relief may be
subject to certain equitable defenses and principles and to the discretion
of
the court before which the proceeding may be brought, and (c) where rights
to
indemnity and contribution thereunder may be limited by applicable law and
public policy.
SECTION
2.02. No
Conflict.
(a)
The
execution and delivery of this Agreement by such Stockholder does not, and
the
performance of this Agreement by such Stockholder shall not, (i) conflict with
or violate any federal, state or local law, statute, ordinance, rule,
regulation, order, judgment or decree applicable to any Stockholder or by which
the Common Stock or the Other Securities owned by such Stockholder are bound
or
affected or (ii) result in any breach of or constitute a default (or an event
that with notice or lapse of time or both would become a default) under, or
give
to others any rights of termination, amendment, acceleration or cancellation
of,
or result in the creation of a lien or encumbrance on any of the Common Stock
or
the Other Securities owned by such Stockholder pursuant to, any note, bond,
mortgage, indenture, contract, agreement, lease, license, permit, franchise
or
other instrument or obligation to which such Stockholder is a party or by which
such Stockholder or the Common Stock or Other Securities owned by such
Stockholder are bound.
(b) The
execution and delivery of this Agreement by such Stockholder does not, and
the
performance of this Agreement by such Stockholder shall not, require any
consent, approval, authorization or permit of, or filing with or notification
to, any governmental entity or other third party by such
Stockholder.
2
SECTION
2.03. Title
to the Stock.
As of
the date hereof, each Stockholder is the owner of the number of shares of Common
Stock set forth opposite its name on Appendix
A
attached
hereto, entitled to vote, without restriction, on all matters brought before
holders of capital stock of the Company, which Common Stock represent on the
date hereof the percentage of the outstanding stock and voting power of the
Company set forth on such Appendix. Such Common Stock are all the securities
of
the Company owned, either of record or beneficially, by such Stockholder. Such
Common Stock are owned free and clear of all security interests, liens, claims,
pledges, options, rights of first refusal, agreements, limitations on such
Stockholder's voting rights, charges and other encumbrances of any nature
whatsoever. No Stockholder has appointed or granted any proxy, which appointment
or grant is still effective, with respect to the Common Stock or Other
Securities owned by such Stockholder.
ARTICLE
III
COVENANTS
SECTION
3.01. No
Disposition or Encumbrance of Stock.
Each
Stockholder hereby covenants and agrees that, until the Stockholder Approval
has
been obtained, except as contemplated by this Agreement, such Stockholder shall
not offer or agree to sell, transfer, tender, assign, hypothecate or otherwise
dispose of, grant a proxy or power of attorney with respect to, or create or
permit to exist any security interest, lien, claim, pledge, option, right of
first refusal, agreement, limitation on such Stockholder's voting rights, charge
or other encumbrance of any nature whatsoever ("Encumbrance")
with
respect to the Common Stock or Other Securities, or directly or indirectly,
initiate, solicit or encourage any person to take actions which could reasonably
be expected to lead to the occurrence of any of the foregoing; provided,
however,
that
any such Stockholder may assign, sell or transfer any Common Stock or Other
Securities provided that any such recipient of the Common Stock or Other
Securities has delivered to the Company and each Investor a written agreement
in
a form reasonably satisfactory to the Investors that the recipient shall be
bound by, and the Common Stock and/or Other Securities so transferred, assigned
or sold shall remain subject to this Agreement.
SECTION
3.02. Company
Cooperation.
The
Company hereby covenants and agrees that it will not, and each Stockholder
irrevocably and unconditionally acknowledges and agrees that the Company will
not (and waives any rights against the Company in relation thereto), recognize
any Encumbrance or agreement on any of the Common Stock or Other Securities
subject to this Agreement unless the provisions of Section 3.01 have been
complied with.
ARTICLE
IV
MISCELLANEOUS
SECTION
4.01. Further
Assurances.
Each
Stockholder will execute and deliver such further documents and instruments
and
take all further action as may be reasonably necessary in order to consummate
the transactions contemplated hereby.
SECTION
4.02. Specific
Performance.
The
parties hereto agree that irreparable damage would occur in the event any
provision of this Agreement was not performed in accordance with the terms
hereof and that any Investor (without being joined by any other Investor) shall
be entitled to specific performance of the terms hereof, in addition to any
other remedy at law or in equity. Any Investor shall be entitled to its
reasonable attorneys' fees in any action brought to enforce this Agreement
in
which it is the prevailing party.
3
SECTION
4.03. Entire
Agreement.
This
Agreement constitutes the entire agreement among the Company and the
Stockholders with respect to the subject matter hereof and supersedes all prior
agreements and understandings, both written and oral, among the Company and
the
Stockholders with respect to the subject matter hereof.
SECTION
4.04. Amendment.
This
Agreement may not be amended except by an instrument in writing signed by the
parties hereto and with the consent of the Investors.
SECTION
4.05. Severability.
If any
term or other provision of this Agreement is invalid, illegal or incapable
of
being enforced by any rule of law, or public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and effect
so long as the economic or legal substance of this Agreement is not affected
in
any manner materially adverse to any party. Upon such determination that any
term or other provision is invalid, illegal or incapable of being enforced,
the
parties hereto shall negotiate in good faith to modify this Agreement so as
to
effect the original intent of the parties as closely as possible in a mutually
acceptable manner in order that the terms of this Agreement remain as originally
contemplated to the fullest extent possible.
SECTION
4.06. Governing
Law.
All
questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of New
York, without giving effect to any choice of law or conflict of law provision
or
rule (whether of the State of New York or any other jurisdictions) that would
cause the application of the laws of any jurisdictions other than the State
of
New York. The parties hereby agree that all actions or proceedings arising
directly or indirectly from or in connection with this Agreement shall be
litigated only in the Supreme Court of the State of New York or the United
States District Court for the Southern District of New York located in New
York
County, New York. The parties consent to the jurisdiction and venue of the
foregoing courts and consent that any process or notice of motion or other
application to any of said courts or a judge thereof may be served inside or
outside the State of New York or the Southern District of New York by registered
mail, return receipt requested, directed to the party being served at its
address set forth on the signature ages to this Agreement (and service so made
shall be deemed complete three (3) days after the same has been posted as
aforesaid) or by personal service or in such other manner as may be permissible
under the rules of said courts. Each of the Company and each Stockholder
irrevocably waives, to the fullest extent permitted by law, any objection which
it may now or hereafter have to the laying of the venue of any such suit,
action, or proceeding brought in such a court and any claim that suit, action,
or proceeding has been brought in an inconvenient forum. EACH
PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.
SECTION
4.07. Third-Party
Beneficiaries.
The
Investors shall be intended third party beneficiaries of this Agreement to
the
same extent as if they were parties hereto, and shall be entitled to enforce
the
provisions hereof.
4
SECTION
4.08. Termination.
This
Agreement shall terminate immediately following the occurrence of the
Stockholder Approval or upon the mutual consent of each Stockholder and the
Investors.
[Signature
Page Follows]
5
IN
WITNESS WHEREOF, each Stockholder and the Company has duly executed this
Agreement.
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THE
COMPANY:
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CLEVELAND
BIOLABS, INC.
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By:
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/s/ Xxxxxxx Xxxxxxxx | |||
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Name:
Xxxxxxx Xxxxxxxx
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Title:
Chief Executive Officer and President
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Dated:
Xxxxx 00, 0000
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Xxxxxxx:
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00000
Xxxxx Xxx., Xxxxx 000
Xxxxxxxxx,
Xxxx 00000
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STOCKHOLDER:
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XXXXXXX
XXXXXXXX
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/s/
Xxxxxxx Xxxxxxxx
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|||
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Xxxxxxx
Xxxxxxxx
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Dated:
March 16, 2007
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Address:
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STOCKHOLDER:
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|||
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XXXXXX
XXXXXX
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|||
| /s/ Xxxxxx Xxxxxx | |||
| Xxxxxx Xxxxxx | |||
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Dated:
March 16, 2007
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|||
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Address:
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STOCKHOLDER:
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|||
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XXXXX
XXXXX
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|||
| /s/ Xxxxx Xxxxx | |||
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Dated:
March 16, 2007
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Xxxxx Xxxxx | ||
|
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|||
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Address:
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STOCKHOLDER:
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THE
CLEVELAND CLINIC FOUNDATION
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|||
| /s/ Xxxxxxx X' Xxxxx | |||
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Dated:
March 16, 2007
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Xxxxxxx X' Xxxxx | ||
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|
Chief Operating Officer | ||
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Address:
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0000 Xxxxxx Xxxxxx
Xxxxxxxxx, XX
00000
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STOCKHOLDER:
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CHEMBRIDGE
CORPORATION
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|||
| /s/ Xxxxxx Xxxxxxxx | |||
| Xxxxxx Xxxxxxxx | |||
| Chief Executive Officer | |||
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Dated:
March 8, 2007
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Address:
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00000 Xxx Xxxxx, Xxxxx X
Xxx Xxxxx, XX
00000
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STOCKHOLDER:
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SUNRISE
SECURITIES CORP.
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| /s/ Xxxxxx Xxxxxx | |||
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Dated:
Xxxxx 00, 0000
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Xxxxxx Xxxxxx | ||
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|||
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Address:
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000
Xxxxxxxxx Xxxxxx, 00xx Xxxxx
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Xxx
Xxxx, XX 00000
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STOCKHOLDER:
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SUNRISE
EQUITY PARTNERS, LP
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| By: LEVEL COUNTER, LLC. | |||
| Its: General Partner | |||
| /s/ Xxxxxxx Xxxxx | |||
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Dated:
March 14, 2007
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Name: Xxxxxxx Xxxxx | ||
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Title: Manager | ||
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Address:
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000
Xxxxxxxxx Xxxxxx, 00xx Xxxxx
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Xxx
Xxxx, XX 00000
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APPENDIX
A
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Stockholder
|
Common
Stock
Owned
|
Percentage
of Stock
Outstanding
|
Voting
Percentage
of
Stock
Outstanding
|
|
Xxxxxxx
Xxxxxxxx
|
1,311,200
|
11.03
%
|
11.03
%
|
|
Xxxxxx
Xxxxxx
|
1,549,600
|
13.03
%
|
13.03
%
|
|
Xxxxx
Xxxxx
|
715,200
|
6.02
%
|
6.02
%
|
|
The
Cleveland Clinic Foundation
|
1,341,000
|
11.28
%
|
11.28
%
|
|
ChemBridge
Corporation
|
622,224
|
5.23
%
|
5.23
%
|
|
Sunrise
Equity Partners, LP together with Sunrise Securities Corp.
|
1,436,548
|
12.08 %
|
12.08 %
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