Document:

Exhibit
10.56

 

$6,000,000

 

IOWA VALUES FUND (IVF) CONTRACT

 

BY AND BETWEEN

 

NEWLINK GENETICS CORPORATION

 

AND THE

 

IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT

 

DATED AS OF MARCH 18, 2005

 

 

TABLE OF CONTENTS

 

	
  ARTICLE 1.       IDENTITY
  OF THE PARTIES

  
	
  Article 1.1

  	
  Iowa
  Values Board

  
	
  Article 1.2

  	
  Iowa
  Department of Economic Development

  
	
  Article 1.3

  	
  NewLink
  Genetics Corporation

  
	
   

  	
   

  
	
  ARTICLE 2.       CONTRACT
  DURATION

  
	
   

  
	
  ARTICLE 3.       FUNDING

  
	
  Article 3.1

  	
  Funding
  Source

  
	
  Article 3.2

  	
  Reduction,
  Discontinuance or Alteration of Funding

  
	
   

  	
   

  
	
  ARTICLE 4.       DOCUMENTS
  INCORPORATED BY REFERENCE; ORDER OF PRIORITY

  
	
  Article 4.1

  	
  Documents
  Incorporated by Reference

  
	
  A.

  	
  IVF
  Application

  
	
  B.

  	
  Promissory
  Note

  
	
  C.

  	
  IVF
  Financing Commitment Term Sheet

  
	
  D.

  	
  The
  Project (Detailed Description of Project and Budget)

  
	
  Article 4.2

  	
  IVF
  Application on File

  
	
  Article 4.3

  	
  Order
  of Priority

  
	
   

  	
   

  
	
  ARTICLE 5.       AWARD
  TERMS

  
	
  Article 5.1.

  	
  Forgivable
  Loan

  
	
  Article 5.2

  	
  Limitation
  on Amounts Available

  
	
  Article 5.3

  	
  Milestones

  
	
  Article 5.4

  	
  Terms
  of Forgiveness of Forgivable Loan

  
	
  Article 5.5

  	
  Repayment
  Obligation

  
	
  Article 5.6

  	
  Total
  Amount

  
	
   

  	
   

  
	
  ARTICLE 6.       CONDITIONS
  TO DISBURSEMENT OF FUNDS

  
	
  Article 6.1

  	
  Satisfaction
  of Conditions in IVF Financing Commitment Term Sheet

  
	
  Article 6.2

  	
  Documents
  Submitted

  
	
   

  	
   

  
	
  ARTICLE 7.       MANNER
  AND DISBURSEMENT OF LOAN.

  
	
  Article 7.1

  	
  Prior
  Costs

  
	
  Article 7.2

  	
  Cost
  Variation

  
	
  Article 7.3

  	
  Requests
  for Disbursement

  
	
  Article 7.4

  	
  Suspension
  of Disbursement

  
	
  Article 7.5

  	
  Investment
  of Award Proceeds

  
	
   

  	
   

  
	
  ARTICLE 8.       SECURITY;
  SUBORDINATION; AND ROYALTIES

  
	
  Article 8.1

  	
  Security
  and Subordination

  
	
  Article 8.2

  	
  Royalties

  

 

2

 

	
  ARTICLE 9.       REPRESENTATIONS
  AND WARRANTIES

  
	
  Article 9.1

  	
  Organization
  and Qualifications

  
	
  Article 9.2

  	
  Authority
  and Validity of Obligations

  
	
  Article 9.3

  	
  Use
  of Proceeds

  
	
  Article 9.4

  	
  Subsidiaries

  
	
  Article 9.5

  	
  Financial
  Reports

  
	
  Article 9.6

  	
  No
  Material Adverse Change

  
	
  Article 9.7

  	
  Full
  Disclosure; IVF Application

  
	
  Article 9.8

  	
  Trademarks,
  Franchises and Licenses

  
	
  Article 9.9

  	
  Governmental
  Authority and Licensing

  
	
  Article 9.10

  	
  Litigation
  and Other Controversies

  
	
  Article 9.11

  	
  Good
  Title

  
	
  Article 9.12

  	
  Taxes

  
	
  Article 9.13

  	
  Other
  Contracts

  
	
  Article 9.14

  	
  No
  Default

  
	
  Article 9.15

  	
  Compliance
  with Laws

  
	
  Article 9.16

  	
  Effective
  Date of Representations and Warranties.

  
	
   

  	
   

  
	
  ARTICLE 10.       COVENANTS

  
	
  Article 10.1

  	
  Maintain
  Existence in Iowa

  
	
  Article 10.2

  	
  Creation
  and Maintenance of Jobs in Iowa

  
	
  Article 10.3

  	
  Performance
  Obligations

  
	
  Article 10.4

  	
  Related
  Businesses

  
	
  Article 10.5

  	
  Maintenance
  of Properties

  
	
  Article 10.6

  	
  Taxes
  and Assessments

  
	
  Article 10.7

  	
  Insurance

  
	
  Article 10.8

  	
  Reports

  
	
  Article 10.9

  	
  Inspection
  and Audit

  
	
  Article 10.10

  	
  Mergers,
  Consolidations and Sales

  
	
  Article 10.11

  	
  Formation
  and Maintenance of Subsidiaries

  
	
  Article 10.12

  	
  Compliance
  with Laws

  
	
  Article 10.13

  	
  Use
  of Award Proceeds

  
	
  Article 10.14

  	
  Changes
  in Business Ownership, Structure or Control

  
	
  Article 10.15

  	
  Notice
  of Meetings

  
	
  Article 10.16

  	
  Notice
  of Proceedings

  
	
  Article 10.17

  	
  Accounting
  Records

  
	
  Article 10.18

  	
  Restrictions

  
	
  Article 10.19

  	
  No
  Changes in Business Operations

  
	
  Article 10.20

  	
  Indemnification

  
	
   

  	
   

  
	
  ARTICLE 11.       EVENTS
  OF DEFAULT AND REMEDIES

  
	
  Article 11.1

  	
  Events
  of Default

  
	
  Article 11.2

  	
  Default
  Remedies

  
	
  Article 11.3

  	
  Default
  Interest Rate

  

 

3

 

	
  Article 11.4

  	
  Expenses

  
	
  Article 11.5

  	
  Notice
  and Cure

  
	
   

  	
   

  
	
  ARTICLE 12.       MISCELLANEOUS

  
	
  Article 12.1

  	
  Timely
  Performance

  
	
  Article 12.2

  	
  State
  of Iowa Recognition

  
	
  Article 12.3

  	
  Choice
  of Law and Forum

  
	
  Article 12.4

  	
  Governing
  Law

  
	
  Article 12.5

  	
  Contract
  Amendments

  
	
  Article 12.6

  	
  Notices

  
	
  Article 12.7

  	
  Headings

  
	
  Article 12.8

  	
  Dissolution
  of Iowa Values Fund Board

  
	
  Article 12.9

  	
  Final
  Authority

  
	
  Article 12.10

  	
  Waivers

  
	
  Article 12.11

  	
  Counterparts

  
	
  Article 12.12

  	
  Survival
  of Representations

  
	
  Article 12.13

  	
  Severability
  of Provisions

  
	
  Article 12.14

  	
  Successors
  and Assigns

  
	
  Article 12.15

  	
  Integration

  

 

4

 

CONTRACT

 

	
  BUSINESS:

  	
  NEWLINK
  GENETICS CORPORATION

  
	
   

  	
   

  
	
  CONTRACT
  NUMBER:

  	
  04-IVF-19

  
	
   

  	
   

  
	
  AWARD
  DATE:

  	
  February 19,
  2004

  
	
   

  	
   

  
	
  CONTRACT
  EFFECTIVE DATE:

  	
  March 18,
  2005

  

 

This
IOWA VALUES FUND CONTRACT (“Contract”) is made this 18th day of March,
2005 ( the “Contract Effective Date”) by and
between the Iowa Department of Economic Development
(“IDED”) and NewLink
Genetics Corporation an Iowa corporation (“Business”).

 

WHEREAS,
the Iowa Values Fund, pursuant to 2003 Iowa Acts, House File 692, was
established by the Iowa Legislature and the Governor of Iowa to expand and
stimulate the economy of Iowa, increase the population of Iowa, and increase
the wealth of Iowans; and

 

WHEREAS,
the Business submitted an application to the Iowa Values Board (“IVB)
requesting assistance in the financing of its Project as more fully described
in Exhibit D (“Project”); and

 

WHEREAS,
the IVB found the Project to meet the requirements established to receive Iowa
Values Fund financial assistance; and

 

WHEREAS,
the Iowa Values Board, on February 19, 2004 (the “Award Date”) voted to
award to Business a Six Million Dollar ($6,000,000) forgivable loan (the “Forgivable Loan” or “Award”),
subject to the terms and conditions set forth herein;

 

WHEREAS,
the Business signed an IVF Financing Commitment Term Sheet (Exhibit C to
this Contract) acknowledging acceptance of the terms and conditions of the
Award; and

 

WHEREAS,
on June 16, 2004, as a result of a ruling by the Iowa Supreme Court (Rants
v. Vilsack, 684 N.W. 2d 193 (Iowa, 2004)), House File 692 was nullified;
and

 

WHEREAS,
pursuant to 2004 Iowa Acts, First Extraordinary Session, Senate File 2311 (the “Act”),
the state legislature appropriated funds to IDED for financial assistance and
incentives to businesses under programs currently existing which are
administered by IDED; and

 

WHEREAS,
the legislature directed IDED to expend a portion of the appropriated funds for
awards made by the IVB;

 

NOW
THEREFORE, in consideration of the mutual promises contained herein

 

5

 

and
intending to be legally bound, the Business and IDED agree to the following
terms:

 

ARTICLE 1

IDENTITY OF THE PARTIES

 

1.1                                 Iowa Values
Board.  Prior to June 16, 2004,
the Iowa Values Board was a public instrumentality of the State established by
2003 Iowa Acts, House File 692, section 78. 
The Board was charged with the responsibility of managing, overseeing
and approving all awards of financial assistance from the Iowa Values
Fund.  The Board’s address was 200 East
Grand Avenue, Des Moines, IA 50309.

 

1.2                                 Iowa Department
of Economic Development.  The
IDED is a state department created by Iowa Code Chapter 15.  Prior to June 16, 2004 and pursuant to
2003 Iowa Acts, House File 692, section 78 IDED provided administrative support
to the Iowa Values Board.  Effective September 7,
2004 , IDED was authorized by 2004 Iowa Acts, First Extraordinary Session,
Senate File 2311, to enter into this Contract. 
The IDED’s address is 200 East Grand Avenue, Des Moines, IA 50309.

 

1.3                                 NewLink
Genetics Corporation.  NewLink
Genetics Corporation is an Iowa corporation. 
The company’s address is 2901 South Loop Drive, Building 3, Suite 3900,
Ames, Iowa 50010.

 

ARTICLE 2

CONTRACT DURATION

 

This
Contract shall be in effect until all of Business’s liabilities hereunder have
been satisfied in full by forgiveness or repayment as provided in this Contract.

 

ARTICLE 3

FUNDING

 

3.1                                 Funding Source.  The source of funding for this Award is 2004
Iowa Acts, First Extraordinary Session, Senate File 2311.

 

3.2                                 Reduction,
Discontinuance or Alteration of Funding.  Any termination, reduction, or delay of funds
available due, in whole or in part, to (i) lack of, reduction in, or
deappropriation of revenues previously appropriated by the legislature, or (ii) any
other reason beyond the IDED’s control may, in the IDED’s discretion, result in
the termination, reduction or delay of funds to the Business.

 

3.3                                 Reliance Upon
Availability of Funding.  The
IDED acknowledges and agrees that Four Million Dollars
($4,000,000) of the funding for the Six Million
Dollars ($6,000,000) Award is currently available, as of the Contract
Effective Date, in the amounts specified and for

 

6

 

the
state fiscal years described in Article 5.2.  The source of funding for the Two Million Dollars ($2,000,000) available in state fiscal
years 2006 and 2007 is not identified in the Act and has not yet been
received.  The Business represents that
it has negotiated this Contract in good faith and has been induced to enter
into the Contract in full reliance upon the availability of such funding,
subject to the limitations stated in this Article, applicable statutes and
terms and provisions imposed by this Contract.

 

ARTICLE 4

DOCUMENTS INCORPORATED BY REFERENCE; ORDER OF PRIORITY

 

4.1                                 Documents
Incorporated by Reference.  The
following documents are incorporated by reference and considered an integral
part of this Contract:

 

Exhibit A
- Business’s IVF Application, as approved by the Iowa Values Board.

 

Exhibit B
- Promissory Note.

 

Exhibit C
- IVF Financing Commitment Term Sheet.

 

Exhibit D
- The Project (Detailed Description of the Project and Budget)

 

4.2                                 IVF Application
on File.  Due to its size, Exhibit A
will not be attached to this Contract, but will be kept on file at the Iowa
Department of Economic Development.  It
shall, nevertheless, be considered an incorporated element of this Contract.

 

4.3                                 Order of
Priority.  In the case
of any inconsistency or conflict between the specific provisions of this
document and the exhibits, the following order of priority shall control:

 

(a)                                  Contract,
Articles 1-12

 

(b)                                 Exhibit C
- IVF Financing Commitment Term Sheet.

 

(c)                                  Exhibit D
- The Project (Detailed Description of the Project and Budget)

 

(d)                                 Exhibit A
- Business’s IVF Application, as approved by the Iowa Values Board.

 

ARTICLE 5

AWARD TERMS

 

The
Board’s award of Six Million Dollars ($6,000,000) consists of a Forgivable Loan
as detailed below:

 

5.1                                 IVF Forgivable
Loan.  The IDED agrees to make a
Forgivable Loan in the amount of Six Million Dollars ($6,000,000) on the terms
and conditions set forth in this Contract with interest at a rate of zero
percent to the Business to assist in the financing of the Project as described
in Exhibit D.

 

7

 

5.2                                 Limitation on
Amounts Available.  Subject to
the availability of funds as described in Article 3.2 and 3.3:

 

(a)                                  $2,000,000 of
the Forgivable Loan available to the Business during state fiscal year 2004 (July 1,
2003-June 30, 2004) remains available to the Business during state fiscal
year 2005.

 

(b)                                 An additional
$2,000,000 of the Forgivable Loan is available to the Business during state
fiscal year 2005 (July 1, 2004 - June 30, 2005) and remains available
to the Business until the end of the fifth (5th) year from the Contract Effective Date, plus any
additional extension periods that may be granted by IDED pursuant to Article 10.2.

 

(c)                                  An additional
$1,000,000 of the Forgivable Loan in is available to the Business during state
fiscal year 2006 (July 1, 2005 - June 30, 2006) and remains available
to the Business until the end of the fifth (5th) year from the Contract Effective Date, plus any
additional extension periods that may be granted by IDED pursuant to Article 10.2.

 

(d)                                 An additional
$1,000,000 of the Forgivable Loan in is available to the Business during state
fiscal year 2007 (July 1, 2006 - June 30, 2007) and remains available
to the Business until the end of the fifth (5th) year from the Contract Effective Date, plus any
additional extension periods that may be granted by IDED pursuant to Article 10.2.

 

5.3                                 Milestones.  Subject to verification by IDED that
milestones detailed below have been satisfactorily met, IVF funds will be
released as the Business meets product development and financial obligations
described below:

 

(a)                                 The first $2,000,000 is
available for disbursement once the following milestones are met:

 

·                 Receive Investigational New Drug (IND)
approval from the Food and Drug Administration (FDA) to initiate Phase I/II
trials on two cancer drugs.

 

·                 Submit IND applications to FDA for two
additional cancer drugs.

 

·                 Raise $2 million in additional equity (total
of $2 million from the Award Date).

 

(b)                                The second $2,000,000 is
available for disbursement once the following additional milestones are met:

 

·                 Commencement of patient enrollment in phase
II clinical trials for one of two cancer drugs approved.

 

·                 Obtain IND approval from FDA to commence
clinical trials for a third cancer drug.

 

·                 Initiate collaboration with a
pharmaceutical/biotech company for co-product development.

 

·                 Raise an additional $3 million of equity
investment (total of $5 million from the Award Date).

 

(c)                                 An additional $1,000,000 in
each of FY 2006 and FY 2007 for a total of $2,000,000 is available for
disbursement once the following additional milestones are met:

 

·                 Enter into research collaboration with a
second pharmaceutical company.

 

·                 Initiate building construction of
pharmaceutical research and development facility.

 

8

 

·                 Raise an additional $3 million of equity
investment (total of $8 million from the Award Date).

 

·                 NewLink demonstrates revenue generation of at
least $1 million from product sales calculated on a three-year average using
the Business’ three immediately preceding years.

 

5.4                                 Terms of
Forgiveness of the Forgivable Loan.

 

(a)                                 Contract Terms Satisfied.  This Forgivable Loan will be forgiven if the
Business satisfies the terms of this Contract specified in Article 10.2
and 10.3, without limiting the remedies which may be available to the IDED upon
an Event of Default (as hereinafter defined in Article 11.1).  IDED will, in its sole reasonable discretion,
determine if the Business has satisfied the terms specified in Article 10.2
and 10.3 of this Contract.

 

(b)                                Forgiveness or Repayment.  If the IDED determines that the Business has
satisfied the terms of this Contract specified in Article 10.2 and 10.3,
then repayment of the Forgivable Loan shall be waived.  Should the IDED determine that the Business
has not satisfied the terms of this Contract specified in Article 10.2 and
10.3, the Business shall be required to repay the outstanding balance of this
Forgivable Loan as provided in this Contract. 
Royalty payments submitted pursuant to Article 8.2 of this Contract
shall be credited against any amounts owed under the Forgivable Loan.

 

(i)                                     Repayment
due to shortfall in Job Creation/Retention
Obligation of Article 10.2.  If the Business does not meet is Job
Creation/Retention Obligation, the outstanding balance of the Forgivable Loan
shall be repaid as provided in this Contract. 
Repayment of any amounts due will be at the rate of $17,142 per
unfilled job plus interest at the default interest rate stated in Article 11.3.  This per job rate is calculated as follows:
$6,000,000 Award divided by 350 jobs (the “Job Creation/Retention Obligation”).

 

(ii)                                  Repayment
due to noncompliance with Performance Obligations
of Article 10.3.  Repayment
due to noncompliance with the Performance Obligations of Article 10.3 will
be based on the same percentage as the failure to comply with the Performance
Obligations.  For example, if the Project
investment is 10% less than pledged, 10% of the outstanding balance of the
Forgivable Loan must be repaid.

 

(iii)                               Repayment
amount if shortfall in Job Creation/Retention Obligation of Article 10.2
and noncompliance with Performance Obligations of Article 10.3.

 

If
the Business experiences a shortfall in its Job Creation/Retention Obligation
and does not meet its Performance Obligations, IDED will calculate the
amount owing for the job shortfall and for the nonperformance.  The higher of these two amounts shall be the
amount due.  However, this repayment
amount may be adjusted downward by IDED. 
In determining the total amount due, IDED will consider the
following factors and make adjustments as appropriate to establish the amount
to be repaid: wages paid for the created/retained jobs; the number of jobs
created; length of time the jobs were maintained; the total amount of
investment in the Project; the quality of jobs (e.g., benefits).

 

9

 

(c)                                 Method for Determining Amount of
Forgiveness or Amount Owed.  For purposes of ensuring compliance with the Job Creation/Retention Obligation, and the Performance Obligations, IDED will review the Business’s
progress toward meeting these Obligations at two times:

 

First,
when 100% of the pledged jobs have been created, which shall be by the end of
the 5th year from the Contract Effective Date.  IDED will confirm that the jobs have been
created and the 5-year Job Maintenance Period shall
begin.  The combined Job Creation Period
time frame and the Job Maintenance Period shall be a minimum of 10 years from
the Contract Effective Date plus any additional extension periods that may be
granted by IDED pursuant to Article 10.2.

 

Second,
at the end of the Job Maintenance Period which goes through the end of the 10th year from the Contract Effective Date plus any
additional extension periods that may be granted by IDED pursuant to Article 10.2.

 

The
following examples are provided to illustrate how these provisions will be
applied:

 

Example
1 (100% of the Pledged Jobs Created by the End of Year 5):

 

The
Business creates/retains 100% of the pledged jobs by the end of the 5th year. 
The Job Maintenance Period begins and the pledged jobs are retained for
an additional 5 years; resulting in a total Contract period of 10 years.  At the end of the 10th year the IDED will verify that the created
jobs have been maintained for the required time period.  Provided the Job Performance Obligations have
also been met, the Forgivable Loan will be forgiven by IDED.  Royalty payments in the amount of $3,200,000
remain due and payable pursuant to Article 8.2(c) of the Contract.

 

Example
2 (Less than 100% of the Job Creation/Retention Obligations are Met)

 

At
the end of the 5th year, the Business has created/retained 300 of
the 350 pledged new jobs.  The Business
must repay $857,100 of the Forgivable Loan. 
This amount is calculated by multiplying the $17,142 per job rate by the
job shortfall (50 jobs).  Because the
Business has made royalty payments in the amount of $500,000, the $857,100 owed
will be offset by the amount of royalty payments received.  The total amount due at this point is reduced
to $357,100.  The 5-year Job Maintenance
Period begins.

 

At
the end of the 10th year, the Business has 275 jobs.  An additional $428,550 (25 jobs at $17,142
each) must be repaid due to the loss of 25 jobs during the Job Maintenance
Period.  Because the Business has made
additional royalty payments in the amount of $200,000, the $428,550 owed will
be offset by the amount of royalty payments received.  The total additional amount due is
$228,550.  The remaining balance of the
Forgivable Loan (assuming $6,000,000 was advanced: $6,000,000-857,100-428,550=$5,171,480)
will be forgiven by IDED.  The Business
continues to make royalty payments to IDED until the total amount owed
($3,200,000) is received by IDED.

 

5.5                                Repayment
Obligation.  The
obligation to repay this Contract shall be evidenced by a

 

10

 

Promissory
Note in the form attached hereto as Exhibit B.

 

5.6                                Total Amount.  It is further understood and agreed that the
total of all payments to the Business by the IDED for Project activities shall
not exceed this Six Million Dollars ($6,000,000).  It is expressly understood and agreed that
the maximum amounts to be paid to the Business for Project activities shall
conform to the budget as presented in Exhibit D.

 

ARTICLE 6

CONDITIONS TO DISBURSEMENT OF FUNDS

 

The
obligation of IDED to make, continue or disburse funds under this Contract
shall be subject to the following conditions precedent:

 

6.1                                 Satisfaction of
Conditions in IVF Financing Commitment Term Sheet.  The Business shall meet the terms and
conditions of this Award as outlined in Exhibit C.

 

6.2                                 Documents
Submitted.  IDED shall
have received each of the following documents, properly executed and completed,
and approved by IDED as to form and substance:

 

(a)                                 The Promissory
Note in the form attached hereto as Exhibit B.

 

(b)                                Fully executed
Contract.

 

(c)                                 Copies of the
articles of incorporation of the Business, certified in each instance by its
secretary or assistant secretary.

 

(d)                                A certificate
of existence for the Business from the Office of the Secretary of State of
Iowa.

 

(e)                                 Financing
statement, tax and judgment lien search results against the Business and
Secured Property.

 

(f)                                   The UCC
financing statements to be filed against the Business.

 

(g)                                A certificate
by the Business that the milestones detailed in Article 5.3 are satisfied.

 

(h)                                IDED shall have
received such other Contracts, instruments, documents, certificates and
opinions as the IDED may reasonably request.

 

(i)                                    Hazardous waste audit.  To comply with Iowa Code section 15A.1(3)“b,”
if the Business generates solid or hazardous waste, it must either: a) submit a
copy of the Business’s existing in-house plan to reduce the amount of waste and
safely dispose of the waste based on an in-house audit conducted within the
past 3 years; or b) submit an outline of a plan to be developed in-house, or 3)
submit documentation that the Business has authorized the Iowa Department of
Natural Resources or Iowa Waste Reduction Center to conduct the audit.

 

(j)                                    Pursuant to Article 10.7(d) of
this Contract, a signed Authorization for Release of

 

11

 

Confidential
State Tax Information form, to permit IDED to receive the Business’s state tax
information directly from the Iowa Department of Revenue for purposes of
annually updating the Iowa Public Return on Investment Analysis.

 

(k)                                 A detailed list and valuation
of the Secured Property.

 

ARTICLE 7

MANNER AND DISBURSEMENT OF AWARD

 

7.1                                Prior Costs.  No expenditures made prior to the Award Date
may be included as Project costs.

 

7.2                                Cost Variation.  Without duplicating the repayment required by
Article 5.4(b)(ii), in the event that the total Project cost is less than
the amount specified in the Exhibit D, the Award shall be reduced at the
same ratio as the total actual Project cost reduction is to the total Project
Budget as shown in Exhibit D.  Any
disbursed excess above the reduced IVF participation amount shall be returned
immediately to IDED.

 

7.3                                Requests for
Disbursement.  All
disbursements of Award proceeds shall be subject to receipt by the IDED of
requests for disbursement submitted by the Business.

 

7.4                                Suspension of
Disbursement.  Upon the
occurrence of an Event of Default (as defined in this Contract) by the
Business, the IDED may suspend payments to the Business until such time as the
default has been cured to IDED’s satisfaction. 
Notwithstanding anything to the contrary in this Contract, upon a
termination of this Contract on account of an Event of Default by the Business,
Business will no longer have the right to receive any disbursements after the
effective date of default.

 

7.5                                Investment of Award
Proceeds.  In the
event that the Award proceeds are not immediately utilized, temporarily idle
Award proceeds held by the Business may be invested provided such investments
shall be in accordance with State law, including but not limited to the provisions
of Iowa Code chapter 12C concerning the deposit of public funds.  Interest accrued on temporarily idle Award
proceeds held by the Business shall be credited to and expended on the Project
prior to the expenditure of other Award proceeds.

 

All
proceeds remaining, including accrued interest, after all allowable Project
costs have been paid or obligated shall be returned to the IDED within thirty
(30) days after the Project Completion Date for the Project.  Within ten (10) days of receipt of a
written request from IDED, Business shall inform the IDED in writing of the
amount of unexpended Award funds in the Business’s possession or under the
Business’s control, whether in the form of cash on hand, investments, or
otherwise.

 

12

 

ARTICLE 8

SECURITY; SUBORDINATION;
AND ROYALTIES

 

8.1                                Security and
Subordination.

 

(a)                                 This Award will be secured
by a Blanket UCC-1 security interest granting the IDED a valid, perfected and
enforceable first priority security interest and Lien in all Property now or
hereafter owned by the Business and its Related Businesses associated with the
Project (including, but not limited to, intellectual property and licenses, all
accounts, chattel paper, documents, instruments, investment property,
inventory, deposit accounts, equipment, fixtures, leasehold interests in leased
Property, general intangibles and all proceeds thereof), (the “Secured Property”).

 

(b)                                IDED agrees to subordinate
its interest in the intellectual property (which includes patents and licenses)
covered by the blanket UCC-1 filing, provided the following conditions are met:

 

(i)                                    The
subordination is necessary for the Business to obtain debt or equity financing,
or to secure a purchase money security interest; and

 

(ii)                                 The Business
provides IDED with a detailed list and valuation of the Secured Property that
will secure the Award after the subordination; and

 

(iii)                              IDED reviews
the list and determines that the collateral value is sufficient to secure the
amount of Award funds disbursed, or to be disbursed.

 

(c)                                 If DAD determines that the
Award would remain adequately secured after subordination, IDED will
execute any subordination document, in form and content acceptable to IDED,
reasonably requested by Business.

 

8.2                                Royalties.

 

(a)                                 The Business shall pay a
royalty equal to a minimum of zero point twenty-five hundredths of a percent
(0.25%) of prior-year total Gross Revenues of the Sponsored Product(s), as
defined herein.  Royalty payments shall
continue until a total payment of $3,200,000 has been received by
IDED.  Royalty payments shall first be
applied to reduce any outstanding balance of the Forgivable Loan and then
credited towards the total payment of $3,200,000 required under this Article 8.2.

 

(b)                                “Gross Revenues” means gross
sales price actually received by the Business less trade discounts and returns.

 

(c)                                 “Sponsored Products” means
all products developed, marketed or sold by Business.

 

(d)                                Royalty payments shall be
submitted to IDED annually within 45 days after each calendar year end.

 

13

 

ARTICLE 9

REPRESENTATIONS AND
WARRANTIES.

 

The
Business represents and warrants to IDED as follows:

 

9.1                                Organization
and Qualifications.  The
Business is duly organized, validly existing and in good standing as a
corporation under the state of its incorporation.  The Business has full and adequate power to
own its property and conduct its business as now conducted, and is duly
licensed or qualified and in good standing in each jurisdiction in which the
nature of the business conducted by it or the nature of the property owned or
leased by it requires such licensing or qualifying, except where the failure to
so qualify would not have a material adverse effect on the Business’s ability
to perform its obligations hereunder.

 

9.2                                Authority and
Validity of Obligations.  The
Business has full right and authority to enter into this Contract and the other
documents required by this Contract, to make the borrowings herein provided
for, to issue its Promissory Note in evidence thereof, to secure its
obligations under this Contract, and to perform each and all of the obligations
herein.  The Contract documents delivered
by the Business have been duly authorized, executed and delivered by the
Business and constitute the valid and binding obligations of the Business and
enforceable against it in accordance with their terms.  This Contract and its related documents do
not contravene any provision of law or any judgment, injunction, order or decree
binding upon the Business or any provision of the articles of organization or
operating agreement of the Business, contravene or constitute a default under
any covenant, indenture or contract of or affecting the Business or any of its
properties.

 

9.3                                Use of Proceeds.  The Business hereby agrees to use Award
proceeds for the Project described in Exhibit D.  Use of Award proceeds shall conform to the
Budget for the Project as detailed in Exhibit D.  The Business represents that there are
legally enforceable commitments in place from the funding sources identified
for the Project in Exhibit D.

 

9.4                                Subsidiaries.  The Business has no Subsidiaries on the
Contract Effective Date.

 

9.5                                Financial
Reports.  The balance sheet of the
Business furnished to IDED as of the Contract Effective Date, fairly present
its financial condition as at said date in conformity with GAAP applied on a
consistent basis.  The Business has no
contingent liabilities which are material to it, other than as indicated on
such financial statements or, with respect to future periods, on the financial
statements furnished to IDED.

 

9.6                                No Material
Adverse Change.  Since the
Award Date, there has been no change in the condition (financial or otherwise)
or business prospects of the Business, except those occurring in the ordinary
course of business, none of which individually or in the aggregate have

 

14

 

been
materially adverse.  To the knowledge of
the Business, there is no material adverse change in the condition of the
Business (financial or otherwise) or the business prospects of the Business
which is imminent or threatened.

 

9.7                                Full
Disclosure; IVF Application.  The statements and other information
furnished to the IDED by Business in its IVF Application and in connection with
the negotiation of this Contract do not contain any untrue statements of a
material fact or omit a material fact necessary to make the material statements
contained herein or therein not misleading. 
The IDED acknowledges that as to any projections furnished to the IDED,
the Business only represents that the same were prepared on the basis of
information and estimates it believed to be reasonable.

 

9.8                                Trademarks,
Franchises and Licenses.  The
Business owns, possesses, or has the right to use all necessary patents,
licenses, franchises, trademarks, trade names, trade styles, copyrights, trade
secrets, know how and confidential commercial and proprietary information to
conduct its businesses as now conducted, without known conflict with any
patent, license, franchise, trademark, trade name, trade style, copyright or
other proprietary right of any other Person. 
As used in this Article, “Person” means an individual, partnership,
corporation, association, trust, unincorporated organization or any other
entity or organization, including a government or agency or political
subdivision thereof.

 

9.9                                Governmental
Authority and Licensing.  The
Business has received all licenses, permits, and approvals of all Federal,
state, local, and foreign governmental authorities, if any, necessary to
conduct its businesses as presently conducted, in each case where the failure
to obtain or maintain the same could reasonably be expected to have a material
adverse effect except as relating to governmental approvals of products of the
Business which are or will be in development. 
No investigation or proceeding which, if adversely determined, could
reasonably be expected to result in revocation or denial of any material
license, permit, or approval is pending or, to the knowledge of the Business
threatened except as relating to governmental approvals of products of the
Business which are or will be in development.

 

9.10                          Litigation and
Other Controversies.  There is no
litigation or governmental proceeding pending, nor to the knowledge of the
Business threatened, against the Business which if adversely determined would
result in any material adverse change in the financial condition, Properties,
business or operations of the Business, nor is the Business aware of any
existing basis for any such litigation or governmental proceeding.

 

9.11                          Good Title.  The Business has good and defensible title
(or valid leasehold interests) to all of its property (including, without
limitation, the Secured Property securing this Contract) reflected on the most
recent balance sheets furnished to the IDED (except for sales of assets in the
ordinary course business).

 

9.12                          Taxes.  All tax returns required to be filed by the
Business in any jurisdiction have, in fact, been filed, and all taxes,
assessments, fees and other governmental charges upon the Business or upon any
of its property, income or franchises, which are shown to be due and payable in
such returns, have been paid, except such taxes, assessments, fees and governmental

 

15

 

charges,
if any, as are being contested in good faith and by appropriate proceedings
which prevent enforcement of the matter under contest and as to which adequate
reserves established in accordance with GAAP have been provided.  The Business knows of no proposed additional
tax assessment against it for which adequate provisions in accordance with GAAP
have not been made on its accounts. 
Adequate provisions in accordance with GAAP for taxes on the books of
the Business have been made for all open years, and for their current fiscal
period.

 

9.13                          Other Contracts.  The Business is not in default under the
terms or any covenant, indenture or contract of or affecting either the
Business or any of its properties, which default, if uncured, would have a
material adverse effect on its financial condition, properties, business or
operations.

 

9.14                          No Default.  No Default or Event of Default has occurred
or is continuing

 

9.15                          Compliance with
Laws.  The Business is in compliance
with the requirements of all federal, state and local laws, rules and
regulations applicable to or pertaining to the business operations of the
Business and laws and regulations establishing quality criteria and standards
for air, water, land and toxic or hazardous wastes or substances,
non-compliance with which could have a material adverse effect on the financial
condition, properties, business or operations of the Business.  The Business has not received notice to the
effect that its operations are not in compliance with any of the requirements
of applicable federal, state or local environmental or health and safety
statutes and regulations or are the subject of any governmental investigation
evaluating whether any remedial action is needed to respond to a release of any
toxic or hazardous waste or substance into the environment, which
non-compliance or remedial action could have a material adverse effect on the
financial condition, properties, business or operations of the Business.

 

9.16                          Effective Date
of Representations and Warranties.  The warranties and representations of this Article are
made as of the date of this Contract and shall be deemed to be renewed and
restated by the Business at the time each request for disbursement of funds is
submitted to the IDED.

 

ARTICLE 10

COVENANTS

 

The
Business agrees that, for the duration of this Contract

 

10.1                          Maintain
Existence in Iowa.  The
Business shall at all times preserve and maintain its existence as a
corporation in good standing and maintain the Project in Iowa.  The Business will preserve and keep in force
and effect all licenses, permits, franchises, approvals, patents, trademarks,
trade names, trade styles, copyrights and other proprietary rights necessary to
the proper conduct of its business.

 

16

 

10.2                          Creation and
Maintenance of Jobs in Iowa.

 

(a)                                 By the end of the 5th year from the Contract Effective Date plus any
additional extension periods that may be granted by IDED pursuant to this Article 10.2,
the Business shall create 315 jobs and retain 35 jobs for a total
of 350 jobs (the “Job Creation/Retention
Obligation”).  One, hundred
percent (100%) of the pledged jobs shall be created by the end of the 5th year from the Contract Effective Date.  At that time, the 5-year Job
Maintenance Period shall begin. 
The combined Job Creation Period time frame and the Job Maintenance
Period shall be the end of the 10th year from the
Contract Effective Date plus any additional extension periods that may be
granted by IDED pursuant to this Article 10.2.  All Project jobs shall be created and
maintained in the State of Iowa.

 

(b)                                Related Businesses, approved
by IDED pursuant to Article 10.4 herein, can be used by the Business to
satisfy the Business’s Job Creation/Retention Obligation.

 

(c)                                 If the Business and its
Related Businesses have achieved 75% of the Job Creation/Retention
Obligation and Performance Obligations by the end of the fifth (5th) year from the Contract
Effective Date, the Business shall be entitled to a one (1) year time
extension to permit the Business time to meet its Job Creation/Retention
Obligation and Performance Obligations. 
If at the end of this one (1) time extension the Business and its
Related Businesses have achieved 85% of the Job Creation/Retention
Obligation and Performance Obligations, this Contract can be extended for an
additional one (1) year time period. 
If at the end of this second time extension the Business and its Related
Businesses have achieved 95% of the Job Creation/Retention Obligation
and Performance Obligations, this Contract can be extended for a final one (1) year
time period to allow the Business and its Related Businesses to satisfy 100%
of the Job Creation/Retention Obligation and Performance Obligations.  All time extensions shall be considered
Contract amendments and submitted in writing in conformance with the Contract
amendment provisions detailed in Article 12.5.

 

10.3                          Performance
Obligations.  The
Business and its approved Related Businesses shall complete the Project by the
Project Completion Date, meet its Job Creation/Retention
Obligation, make the total investment pledged for the Project, and
comply with all performance requirements described in this Contract and its
incorporated Exhibits (collectively referred to as the Business’s “Performance Obligations”).

 

10.4                          Related
Businesses.

 

(a)                                 Defined.  “Related Businesses”
means any businesses approved in writing by IDED, in its reasonable discretion,
in which New Link Genetics Corporation has an investment interest and/or with
which New Link Genetics Corporation has a contractual relationship and which
Related Businesses are engaged in activities that provide jobs and investments
in Iowa directly related to the Project described in this Contract.  Examples of Related Businesses include
subsidiaries and affiliates.

 

(b)                                IDED Prior Approval Required.  If the Business intends to use a Related
Business to meet all or a portion of its Job Creation/Retention
or Performance Obligations under this Contract,
the Related Business must receive IDED approval.  To request approval, the Business shall
submit

 

17

 

the
following information about a Related Business to IDED: (i) Copies of the
organizational documents (e.g., articles of incorporation, articles of
organization, operating agreement) of the Related Business, certified in each
instance by its secretary or assistant secretary; (ii) a certificate of
existence for Related Business from the Office of the Secretary of State of
Iowa or any other applicable State, along with an Authorization to Conduct
Business in the State of Iowa; and (iii) a detailed description of the how
the Related Business will meet all or a portion of its Job
Creation/Retention or Performance Obligations under this Contract.

 

10.5                          Maintenance of
Properties.  The
Business shall maintain, preserve and keep its Properties in good repair,
working order and condition (ordinary wear and tear and insured casualty
excepted) and will from time to time make all needful and proper repairs,
renewals, replacements, additions and betterments thereto so that at all times
the efficiency thereof shall be fully preserved and maintained in accordance
with prudent business practices.

 

10.6                          Taxes and
Assessments.  The
Business shall duly pay and discharge all taxes, rates, assessments, fees and
other governmental charges upon or against it or against its properties, in
each case before the same become delinquent and before penalties accrue
thereon, unless and to the extent that the same are being contested in good
faith and by appropriate proceedings and adequate reserves are provided
therefor.

 

10.7                          Insurance.  The Business shall insure and keep insured in
good and responsible insurance companies, all insurable property owned by it
which is of a character usually insured by Persons similarly situated and
operating like properties against loss or damage from such hazards or risks as
are insured by Persons similarly situated and operating like properties; and the
Business shall insure such other hazards and risks (including employers’ and
public liability risks) in good and responsible insurance companies as and to
the extent usually insured by Persons similarly situated and conducting similar
businesses.  The Business will upon
request of the IDED furnish a certificate setting forth in summary form the
nature and extent of the insurance maintained pursuant to this Article.

 

10.8                          Reports.

 

(a)                                 The Business shall prepare,
sign and submit disbursement requests and reports as specified in this Contract
in the form and content required by IDED. 
The Business shall review all reimbursement requests and verify that
claimed expenditures are allowable costs. 
The Business shall maintain documentation adequate to support the
claimed costs.

 

(b)                                Business shall submit its
annual financial statements with an audit completed by an independent CPA.  If required by the IDED, Business shall
submit more frequent unaudited financial statements such as an income, expense,
and retained earnings statement covering the period having elapsed from the
date of the last prior submission and a balance sheet which is not more than
thirty (30) days old.  Year-end
statements must be accompanied by an audit report by a Certified Public
Accountant (CPA) and must be received by IDED within ninety (90) days following
the Business’s fiscal year end.

 

(c)                                 Business shall submit to
IDED Final Performance and Audit Reports within sixty (60) 

 

18

 

days after the Project Completion Date for each
Project.

 

(d)                                Business shall execute an
Authorization for Release of Confidential State Tax Information form, to permit
IDED to receive the Business’s state tax information directly from the Iowa
Department of Revenue for purposes of annually updating the Iowa Public Return
on Investment Analysis for this Project. 
Business shall submit to IDED any other information requested by IDED to
update the Iowa Public Return on Investment Analysis for this Project.

 

(e)                                 The IDED reserves the right
to require more frequent submission of any of the above reports if, in the
opinion of the IDED, more frequent submissions would help improve the Business’s
Project performance.

 

10.9                          Inspection and
Audit.  The Business will permit the
IDED and its duly authorized representatives to visit and inspect any of the
Business’s properties, corporate books and financial records of the Business
related to the Project, to examine and make copies of the books of accounts and
other financial records of the Business, and to discuss the affairs, finances
and accounts of the Business with, and to be advised as to the same by, its
officers, and independent public accountants (and by this provision the
Business authorizes such accountants to discuss with the IDED and the IDED’s
duly authorized representatives the finances and affairs of the Business) at
such reasonable time and reasonable intervals as the IDED may designate, but at
least annually.

 

10.10                    Mergers,
Consolidations and Sales. 
Without the written consent of the IDED, which shall not be unreasonably
withheld, the Business shall not be a party to any merger or consolidation if
it would materially adversely affect the Project, or sell, transfer, lease or
otherwise dispose of all or any of the Secured Property, other than in the
ordinary course of business, if it would materially adversely affect the
Project or reduce the value of the Secured Property that is securing this
Award.

 

10.11                    Formation and
Maintenance of Subsidiaries.  The Business will not form or acquire any
subsidiary or transfer the Secured Property to any Related Business if it would
materially adversely affect the Project, without the written consent of the
IDED, which shall not be unreasonably withheld; provided, however, the Business
may form or acquire a subsidiary or affiliate or transfer all or any part of
the Secured Property to a Related Business if the security interest of the IDED
continues in the Secured Property of the Related Business and the value of the
Secured Property is not reduced.

 

10.12                    Compliance with
Laws.

 

(a)                                 The Business will comply in
all material respects with the requirements of all federal, state and local
laws, rules, regulations and orders applicable to or pertaining to its
properties or business operations non-compliance with which would have a
material adverse effect on the Business or the Project including, but not
limited to, all applicable environmental, hazardous waste or substance, toxic
substance and underground storage laws and regulations, and the Business will
obtain any permits, licenses, buildings, improvements, fixtures, equipment or
its property required by reason of any applicable environmental, hazardous
waste or substance, toxic

 

19

 

substance
or underground storage laws or regulations, the absence of which would have a
material adverse effect on the Business or the Project.

 

(b)                                The Business shall comply in
all material respects with all applicable federal, state, and local laws,
rules, ordinances, regulations and orders applicable to the prevention of
discrimination, in employment, including the administrative rules of the
Iowa Department of Management and the Iowa Civil Rights Commission which
pertain to equal employment opportunity and affirmative action.

 

(c)                                 The Business shall comply in
all material respects with all applicable federal, state and local laws, rules,
ordinances, regulations and orders applicable to worker rights and worker
safety.

 

10.13                    Use of Award
Proceeds.  The
Business will use the Award proceeds extended under this Contract solely for
the purposes set forth in Exhibit D.

 

10.14                    Changes in
Business Ownership, Structure and Control.  Without the written consent of the IDED,
which shall not be unreasonably withheld, the Business shall not materially
change the ownership, structure, or control of the Business if it would
materially adversely affect the Project. 
This includes, but is not limited to, entering into any merger or
consolidation with any person, firm or corporation if it would materially
adversely affect the Project or permitting substantial distribution,
liquidation or other disposal of Business assets directly associated with the
Project if it would materially adversely affect the Project.  Business shall provide IDED with advance
notice of any proposed changes in ownership, structure or control which may be
considered to have a material adverse effect on the Project.  The materiality of the change and whether or
not the change affects the Project shall be as reasonably determined by
IDED.  Notwithstanding anything to the
contrary in this Article 10.14, the Business shall be entitled to issue
any shares of its common or preferred stock for cash and engage in any public
or private offering of its shares for cash as determined by the Board of
Directors of the Business to be in the best interests of the Business and its
shareholders.

 

10.15                    Notice of
Meetings.  The
Business shall notify IDED at least two (2) working days in advance of all
meetings of the board of directors at which the subject matter of this Contract
or Project is proposed to be discussed. 
The Business shall provide IDED with copies if the agenda and minutes of
such meetings and expressly agrees that a representative of IDED has a right to
attend a portion of any and all such meetings for the purposes of the
discussion of the Project and this Contract.

 

10.16                    Notice of
Proceedings.  The
Business shall promptly notify IDED of the initiation of any claims, lawsuits,
bankruptcy proceedings or other proceedings brought against the Business which
would materially adversely impact the Project.

 

10.17                    Accounting
Records.  The Business is required to
maintain its books, records and all other evidence pertaining to this Contract
in accordance with generally accepted accounting principles and such other
procedures specified by IDED.  These
records shall be available to IDED, its internal or external auditors, the
Auditor of the State of Iowa, the Attorney General of

 

20

 

the
State of Iowa and the Iowa Division of Criminal Investigations at all times
during the Contract’s duration and any extension thereof, and for three (3) full
years from the expiration date.

 

10.18                     Restrictions.  The Business shall not, without prior written
disclosure to IDED and prior written consent of IDED, which shall not be
unreasonably withheld, directly or indirectly:

 

(a)                                 Assign, waive
or transfer any of Business’s rights, powers, duties or obligations under this
Contract.

 

(b)                                Except as permitted
in Articles 10.10 and 10.11, sell, transfer, convey, assign, encumber or
otherwise dispose of the Secured Property.

 

(c)                                 Except as
permitted in Articles 10.10 and 10.11, remove from the Project site or the
State all or substantially all of the Secured Property.

 

(d)                                Except for
purchase money security interests and as permitted in Article 8.1, create,
incur or permit to exist any prior Lien of any kind on the Secured Property.

 

10.19                    No Changes in
Business Operations.  The
Business shall not materially change the Project or the nature of the Business
and activities being conducted, or proposed to be conducted by Business, as
described in the Business’s approved application for funding, Exhibit A of
this Contract, unless approved in writing by IDED prior to the change.

 

10.20                    Indemnification.  The Business shall indemnify, defend and hold
harmless the IDED, the State of Iowa, its departments, divisions, agencies,
sections, commissions, officers, employees and agents from and against all
losses, liabilities, penalties, fines, damages and claims (including taxes),
and all related costs and expenses (including reasonable attorneys’ fees and
disbursements and costs of investigation, litigation, settlement, judgments,
interest and penalties), arising from or in connection with any of the
following:

 

a)                                     Any claim,
demand, action, citation or legal proceeding arising out of or resulting from
the Project;

 

b)                                    Any claim,
demand, action, citation or legal proceeding arising out of or resulting from a
breach by the Business of any representation or warranty made by the Business
in the Contract;

 

c)                                     Any claim,
demand, action, citation or legal proceeding arising out of or related to
occurrences that the Business is required to insure against as provided for in
this Contract; and

 

d)                                    Any claim,
demand, action, citation or legal proceeding which results from an act or
omission of the Business or any of their agents in its or their capacity as an
employer of a person.

 

ARTICLE 11

EVENTS OF DEFAULT AND REMEDIES

 

11.1                          Events of
Default.  Any one or more of the
following shall constitute an “Event of Default”
hereunder:

 

21

 

(a)                                 Nonpayment.  In the event the Forgivable Loan is not
forgiven and all or a portion of the Forgivable Loan must be repaid by the
Business, a default in the payment when due (whether by lapse of time,
acceleration or otherwise) of any principal on the Promissory Note(s), or
default in payment for more than ten (10) Business Days of the due date
thereof of any interest on the Promissory Note(s) or any fee or other
obligation payable by the Business shall be an Event of Default; or

 

(b)                                Noncompliance with Covenants or
Other Contract Provision. 
Default in the observance or performance of any covenant or other
Contract provision, for more than five (5) Business Days; Or

 

(c)                                 Noncompliance with Security
Documents.  Default in
the observance or performance of any term of any security documents beyond any
applicable grace period set forth therein; or

 

(d)                                Noncompliance with Contract.  Default in the observance or performance of
any other provision of this Contract; or

 

(e)                                 Material Misrepresentation.  Any representation or warranty made by the
Business in this Contract, or in any statement or certificate furnished by it
pursuant to this Contract, or made in its IVF Application, or in connection
with proves untrue in any material respect as of the date of the issuance or
making thereof; or

 

(f)                                   Lien Deficiencies.  Any of the Security Documents shall for any
reason fail to create a valid and perfected priority Lien in favor of the IDED
in any Security Property pledged by Business to secure this Contract; or

 

(g)                                Judgment Over $100,000.  Any judgment or judgments, writ or writs or
warrant or warrants of attachment, or any similar process or processes in an
aggregate amount in excess of $100,000 shall be entered or filed against the
Business or against any of its property and remains unvacated, unbonded or
unstayed for a period of 30 days; or

 

(h)                                Adverse Change in Financial
Condition.  Any change
shall occur in the financial condition of the Business which would have a
material adverse effect on the ability of the Business to perform under this
Contract; or

 

(i)                                    Bankruptcy
or Similar Proceedings Initiated.  Either the Business shall (1) have
entered involuntarily against it an order for relief under the United States
Bankruptcy Code, as amended, (2) not pay, or admit in writing its
inability to pay, its debts generally as they become due, (3) make an
assignment for the benefit of creditors, (4) apply for, seek, consent to,
or acquiesce in, the appointment of a receiver, custodian, trustee, examiner,
liquidator or similar official for it or any substantial part of its Property, (5) institute
any proceeding seeking to have entered against it an order for relief under the
United States Bankruptcy Code as amended, to adjudicate it insolvent, or
seeking dissolution, winding up, liquidation, reorganization, arrangement,
adjustment or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors or fail to file
an answer or other pleading denying the material allegations of any such
proceeding filed against it, or (6) fail to contest in good faith any

 

22

 

appointments
or proceeding described in Article 11.1(j) below; or

 

(j)                                    Appointment
of Officials.  A
custodian, receiver, trustee, examiner, liquidator or similar official shall be
appointed for either the Business or any substantial part of any of its
respective property, or a proceeding described in Article 11.1(i) shall be
instituted against either the Business and such appointment continues
undischarged or such proceeding continues undismissed or unstayed for a period
of sixty (60) days.

 

11.2                          Default
Remedies.  When an
Event of Default has occurred and is continuing, the IDED may, by written
notice to the Business:

 

(a)                                 terminate this Contract and
all of the obligations of IDED under this Contract on the date stated in such
notice, and

 

(b)                                declare the principal and
any accrued interest on the outstanding Promissory Notes to be forthwith due
and payable, including both principal and interest and all fees, charges and
other amounts payable under this Contract, shall be and become immediately due
and payable without further demand, presentment, protest or notice of any kind.

 

11.3                          Default
Interest Rate.  If an Event
of Default occurs and remains uncured, a default rate of 6% per annum shall
apply to repayment of amounts due under this Contract.  Interest shall accrue from the date of a
Notice of Default issued pursuant to Article 11.5.

 

11.4                          Expenses.  The Business agrees to pay to the IDED all
expenses reasonably incurred or paid by IDED including reasonable attorneys’
fees and court costs, in connection with any Default or Event of Default by the
Business or in connection with the enforcement of any of the terms of this Contract.

 

11.5                          Notice and Cure.  If IDED has reasonable cause to believe that
an Event of Default has occurred, IDED shall issue a written Notice of
Default to the Business, setting forth the nature of the alleged Event of
Default in reasonable specificity, and providing therein a reasonable period
time, which shall not be fewer than thirty (30) days from the date of the
Notice of Default, in which the Business shall have an opportunity to cure,
provided that cure is possible and feasible.

 

ARTICLE 12

MISCELLANEOUS

 

12.1                          Timely
Performance.  The parties
agree that the dates and time periods specified in this Contract, including the
timelines established for the Project and more fully described in Exhibit D,
are of the essence to the satisfactory performance of this Contract.

 

12.2                          State of Iowa
Recognition.  The Project
shall permanently recognize, in a manner acceptable to IDED, the financial
contribution to the Project made by the State of Iowa.  For example, a sign or plaque acknowledging
that the Project was funded in part by a loan from the

 

23

 

State
of Iowa.

 

12.3                          Choice of Law
and Forum.

 

(a)                                 In the event any proceeding
of a quasi-judicial or judicial nature is commenced in connection with this
Contract, the proceeding shall be brought in Des Moines, Iowa, in Polk
County District Court for the State of Iowa, if such court has
jurisdiction.  If however, such court
lacks jurisdiction and jurisdiction lies only in a United States District
Court, the matter shall be commenced in the United States District Court for
the Southern District of Iowa, Central Division.

 

(b)                                This provision shall not be
construed as waiving any immunity to suit or liability, in state or federal
court, which may be available to the IDED, the State of Iowa or its members,
officers, employees or agents.

 

12.4                          Governing Law.  This Contract and the rights and duties of
the parties hereto shall be governed by, and construed in accordance with the
internal laws of the State of Iowa without regard to principles of conflicts of
laws.

 

12.5                          Contract
Amendments.  Neither
this Contract nor any documents incorporated by reference in connection with
this Contract may be changed, waived, discharged or terminated orally, but only
as provided below:

 

(a)                                 Writing required.  The Contract may only be amended through
written prior approval of IDED.  Examples
of situations where amendments are required include contract time extensions,
budget revisions, significant alterations of existing activities or beneficiaries,
extensions for completion of Project activities, changes to the Project
including, but not limited to, alteration of existing approved activities or
inclusion of new activities.  No
amendment will be valid until approved by IDED.

 

(b)                                IDED review.  IDED will consider whether an amendment
request is so substantial as to necessitate reevaluating the Iowa Values Board’s
original funding decision.  An amendment
will, be denied by IDED if it substantially alters the circumstances under
which the Project funding was originally approved.

 

12.6                          Notices.  Except as otherwise specified herein, all
notices hereunder shall be in writing (including, without limitation by fax)
and shall be given to the relevant party at its address, e-mail address, or fax
number set forth below, or such other address, e-mail address, or fax number as
such party may hereafter specify by notice to the other given by United States
mail, by fax or by other telecommunication device capable of creating a written
record of such notice and its receipt. 
Notices hereunder shall be addressed:

 

To
the Business:

 

NewLink
Genetics Corporation

Attention:
Charles Link, M.D., President

2901
South Loop Drive, Building 3, Suite 3900

Ames, IA
50010

 

24

 

	
   

  	
  E-mail:

  	
  clink@newlinkgenetics.com

  
	
   

  	
  Telephone:

  	
  (515)
  296-5555

  
	
   

  	
  Facsimile:

  	
  (515)
  296-5557

  

 

To
the IDED at:

 

	
   

  	
  Iowa
  Department of Economic Development

  
	
   

  	
  Attention:
  Mike Fastenau, Business Services Team Manager

  
	
   

  	
  200
  East Grand Avenue

  
	
   

  	
  Des
  Moines, Iowa 50309

  
	
   

  	
  E-mail:

  	
  mike.fastenau@iowalifechanging.com

  
	
   

  	
  Telephone:

  	
  515/
  542-4831

  
	
   

  	
  Facsimile:

  	
  515/
  242- 4776

  

 

Each
such notice, request or other communication shall be effective (i) if
given by facsimile, when such facsimile is transmitted to the facsimile number
specified in this Article and a confirmation of such facsimile has been
received by the sender, (ii) if given by e-mail, when such e-mail is
transmitted to the e-mail address specified in this Article and a
confirmation of such e-mail has been received by the sender, (iii) if
given by mail, five (5) days after such communication is deposited in the
mail, certified or registered with return receipt requested, addressed as
aforesaid or (iv) if given by any other means, when delivered at the
addresses specified in this Article.

 

12.7                          Headings.  Article headings used in this Contract
are for convenience of reference only and are not a part of this Contract for
any other purpose.

 

12.8                          Dissolution of
Iowa Values Board.  Business
hereby acknowledges that the Iowa Values Board (IVB) is a public
instrumentality of the State of Iowa and that, in the event that the IVB is
dissolved for any reason, the State of Iowa is entitled to enforce any right,
title or interest held by the IVB and that all Business’s obligations hereunder
are also owed to the State of Iowa.

 

12.9                          Final Authority.  The IDED shall have the authority to
reasonably assess whether the Business has complied with the terms of this
Contract.  Any IDED determinations with
respect to compliance with the provisions of this Contract shall be deemed to
be final determinations pursuant to Section 17A of the Code of Iowa
(2005).

 

12.10                    Waivers.  No waiver by IDED of any default hereunder
shall operate as a waiver of any other default or of the same default on any
future occasion.  No delay on the part of
the IDED in exercising any right or remedy hereunder shall operate as a waiver
thereof.  No single or partial exercise
of any right or remedy by IDED shall preclude future exercise thereof or the
exercise of any other right or remedy.

 

12.11                    Counterparts.  This Contract may be executed in any number
of counterparts, each of which shall be deemed to be an original, but all of
which together shall constitute but one and the same instrument.

 

25

 

12.12                    Survival of
Representations.  All
representations and warranties made herein or in any other Contract documents
or in certificates given pursuant hereto or thereto shall survive the execution
and delivery of this Contract and the other Contract documents and shall
continue in full force and effect with respect to the date as of which they
were made until all of Business’s liabilities hereunder have been forgiven in
full or repaid in full.

 

12.13                    Severability of
Provisions.  Any
provision of this Contract, which is unenforceable in any jurisdiction, shall,
as to such jurisdiction, be ineffective to the extent of such unenforceability
without invalidating the remaining provisions hereof or affecting the validity
or enforceability of such provision in any other jurisdiction.  All rights, remedies and powers provided, in
this Contract and any other Contract document may be exercised only to the
extent that the exercise thereof does not violate any applicable mandatory
provisions of law, and all the provisions of this Contract and any other
Contract document are intended to be subject to all applicable mandatory
provisions of law which may be controlling and to be limited to the extent
necessary so that they will not render this Contract or any other Contract
document invalid or unenforceable.

 

12.14                    Successors and
Assigns.  This Contract shall be binding
upon the Business and its respective successors and assigns, and shall inure to
the benefit of the IDED and the benefit of their respective successors and
assigns.  The Business may not assign its
rights hereunder without the written consent of the IDED, which consent will
not be unreasonably withheld.

 

12.15                    Integration.  This Contract contains the entire
understanding between the Business and IDED relating to the Project and any
representations that may have been made before or after the signing of this
Contract, which are not contained herein, are nonbinding, void and of no
effect.  None of the Parties have relied
on any such prior representation in entering into this Contract.

 

IN
WITNESS WHEREOF in consideration of the mutual covenants set forth above and
for other good and valuable consideration, the receipt, adequacy and legal
sufficiency of which are hereby acknowledged, the parties have entered into the
above Contract and have caused their duly authorized representatives to execute
this Contract, effective as of the Contract Effective Date.

 

THIS SECTION LEFT BLANK INTENTIONALLY

SIGNATURES ON NEXT PAGE

 

26

 

FOR THE
IDED:

 

 

	
  BY:

  	
  /s/
  Michael T. Blouin

  	
   

  
	
   

  	
  Michael
  T. Blouin, Director

  	
   

  

 

 

FOR THE
BUSINESS:

 

 

	
  BY:

  	
  /s/
  Charles Link

  	
   

  
	
   

  	
  Charles
  Link, M.D., President

  	
   

  

 

27

 

LIST OF EXHIBITS

 

	
  Exhibit A
  -

  	
  Business’s
  IVF Application, as approved by the Iowa Values Board (on file with IDED.

  
	
   

  	
   

  
	
  Exhibit B
  -

  	
  Forgivable
  Loan Promissory Note.

  
	
   

  	
   

  
	
  Exhibit C
  -

  	
  IVF
  Financing Commitment Term Sheet.

  
	
   

  	
   

  
	
  Exhibit D -

  	
  The Project (Detailed
  Description of Project and Budget).

  

 

28

 

Exhibit A

 

Business’s IVF Application, as approved by the

 

IOWA
VALUES FUND APPLICATION

 

SECTION A: PROJECT INFORMATION

 

1.                                     Provide
a brief description and history of the Business including current
products/services and markets served.

 

NewLink
is a biopharmaceutical company applying innovative techniques in cancer biology
to produce new diagnostic and therapeutic agents for cancer patients.  NewLink Genetics Corporation is privately
held and was incorporated in June 1999. 
Since then it has grown to nearly 35 employees (close to half holding
doctoral degrees: M.D., Ph.D., or both).

 

The
Company’s main technology platforms are the HyperAcuteTM family of cancer
vaccines and the GenomavirTM proteomic drug and diagnostic discovery platform.

 

The
first two drugs based on the HyperAcuteTM technology are expected to enter human
clinical trials in 2003 for breast cancer and late stage non-small cell lung
cancer.  HyperAcuteTM exploits one of the
strongest known naturally acquired human immune responses, which represents an
enormous advantage over other immunostimulatory cancer drugs in
development.  The approach is well
supported by animal models and human clinical trials showing anti-tumor
activity and survival benefit for similar compounds.  The pharmacological mechanism in HyperAcuteTM
vaccine technology is believed to activate both the humoral and cellular
branches of the immune system to produce a response that enables a patient’s
immune system to destroy established tumors. 
The Company believes that HyperAcuteTM will show clinical benefits that
are superior to similar drugs in development. 
HyperAcuteTM is the only drug in development capable of triggering a
strong cell mediated immune response exploiting pre-existing naturally acquired
immunity.  While cellular immunity is one
proven way to destroy patient’s malignancies, recognition of antigen by the
naturally acquired immunity may be a critical step for inducing such effective
cellular immune responses.

 

GenomavirTM
utilizes exon donation and DNA sequencing to quantitate cellular protein
expression with high-throughput capability. 
GenomavirTM provides an integrated picture of cellular protein and gene
expression and is capable of detecting a wider range of proteins than other
techniques in widespread use today. 
NewLink is using GenomavirTM for the identification of potential
therapeutic targets and/or diagnostic markers by detailed comparative proteomic
analysis of epithelial carcinomas relative to normal tissues from which they
derive.  Its unique capabilities make it
likely that NewLink will find disease-related proteins that other researchers
cannot detect.

 

1

 

NewLink
will take HyperAcuteTM cancer vaccines from drug target to clinic in less than
three years and has developed GenomavirTM from concept to industrial scale
technology in two years.  This rapid pace
of development is indicative of the talent and motivation of NewLink’s staff.

 

2.                                     Describe
the proposed project for which assistance is being sought including any
proposed products/services, any new markets, and the project address (if
different than the address listed on page 3)

 

Four
inter-connected projects have crystallized through the formulation of our
corporate strategy that require appropriate additional financing for effective
growth of Company businesses and for meeting milestones outlined in our
business plan.  Furthermore, we propose
an additional investment component in biotechnology cluster creation.  We currently occupy nearly 7,000sq/ft of
space that is dedicated to research, drug-manufacturing and administrative
offices.  The following projects are
intended to assure that adequate capital is provided for NewLink Genetics’
expansion plans in all phases of corporate development such as laboratory space
for research, drug manufacturing and testing as well as conducting clinical
trials.  Total cost for this project is
76 million dollars.  NewLink is dedicated
to contribute 48 million dollars towards the successful execution and we are
asking 28 million dollars from the State of Iowa.

 

NewLink
has raised 11 million dollars to date and we are currently in the process to
raise additional 8 million dollars through our series BB round of financing.  Furthermore, 15 million dollars will be raised
through a private offering prepared by the Mesirow Financial Investment Banking
Group out of Chicago to complete the mezzanine round.

 

The
creation of a human pharmaceutical sector in the State of Iowa.

 

Why should the State of Iowa invest in NewLink Genetics Corporation’s
future?

 

1.              The pharmaceutical industry
has the highest rate of return of any industrial sector.

 

2.              NewLink can provide a
superior direct rate of return on Iowa’s investment over the term of the
collaboration

 

3.              The company is located in
Ames for the direct benefit to Iowa State University.  Thereby providing educational opportunities,
allowing leverage from plant and animal science into human beings, and provide
an example of knowledge-based, large company formation.

 

4.              Iowa’s investment would go
to perceived core strength in life sciences within the State.

 

5.              New Link is already in Iowa,
but is at risk to relocate.

 

Key Strengths of this Collaborative Proposal

 

1.              Strong track record of NewLink
Genetic’s clinical teams in conducting early stage clinical trials  for new cancer compounds.

 

2.              Strong management and
business support with entrepreneurs experienced in new company formation and
growth (e.g., James Linfield, J.D. has shepherded more than ten companies
through the growth stage to become public traded knowledge-based companies, Dr. Tom
Refill has aided three companies to become NASDQ traded 

 

2

 

companies most recently
Rigel Pharmaceuticals.)  See complete
Business Plan for personnel details.

 

3.              Major leverage of investment
with the project.  NewLink has an
established track record of attracting large amounts of high quality investment
(even during the worst economic downturn in the last fifty years).  NewLink will invest $48,000,000 over the
period of the collaboration with the State.

 

Risks

 

1.              The single largest risk to
the State is missing the opportunity to establish the human pharmaceutical
industry within the State.

 

2.              Technology is novel.  The core anti-cancer technology now entering
human trials has been reviewed by an expert panel at the national Institute’s
of Health and given a unanimous green-light to proceed.  Animal models have firmly established the
effectiveness of the therapy for cancer treatment.  Many key patents have already issued or
received favorable statement’s of allowance form the U.S. Patent and Trademark
Office.  Several large corporate
customers have already made commitments to buy (or have already bought) the
Bioinformatics discovery software, GeneSeeqer (e.g., Pioneer Hybrid, BASF
Corporation).

 

3.              Talent recruitment concerns.  NewLink has been very successful at finding,
recruiting and maintaining very talented people.  To date NewLink has recruited five scientists
from the National Institutes of Health in Bethesda, Maryland.  No difficulty in filling any positions once
the opportunities are presented.  Each
time job has been posted there have been many more applicants than positions.

 

4.              Making investments on too
small of an economy of scale is a significant risk.  Companies must be capitalized in a manner so
that they can compete within the U.S. Biotechnology sector.  Small investments often have greater risk
than substantial investments.

 

Key Assumptions in Support of this Collaboration between NewLink and
the State of Iowa.

 

1.              Knowledge based companies
driven by intellectual property will be the core basis of the U.S. economy in
the coming decade.

 

2.              Diversification of the Iowa
economy is key to providing a solid future for the people of the State of Iowa.

 

3.              Diversification into the
Biotechnology and Pharmaceutical sector of the economy is highly
desirable.  This sector is the fastest
growing sector with the greatest return on investment.

 

4.              The State of Iowa needs to
demonstrate several successful biotechnology companies to attract future
investment from large scale, high quality venture capital investors.

 

Summary of Project Goals

 

1.              Creation of knowledge based
industry in Iowa.

 

2.              Provide high value jobs to
Iowans and recruit top level knowledge based workers to the State.  These jobs will also allow the best and the
brightest young Iowans to superior opportunities to remain in Iowa.

 

3

 

3.              Provide superior rate of
return to State of Iowa on it’s investment through expansion of the taxes
returned to the State’s treasury, NewLink Genetics Corporation will be
providing investment of greater than $50,000,000 over the period of the project
and establish firm roots in Iowa.

 

4.              Demonstrate that Iowa
provides an environment for a high value, knowledge-based company to grow into
a strong public company.

 

5.              Establish an independent
human pharmaceutical firm with expertise in the manufacture, testing and
marketing of human biotechnology medicines.

 

6.              Provide greater
opportunities to maintain intellectual property created in Iowa to be developed
and exploited in Iowa.

 

7.              Contribute to humanity by
improving the lives of cancer patients and their families.

 

Expansion of research and pharmaceutical grade manufacturing facilities

 

As
we approach to clinical applications of our HyperAcute Cancer Vaccine
technology we are faced with the limitations of our space and manufacturing
capabilities.  This project is
particularly designed to address all the space and manufacturing concerns as
the company continues to grow and fulfill its mission of becoming a vertically
integrated pharmaceutical company.  We
recognize the significance of proper construction and maintenance of a cGMP
facility as a key factor for our growth. 
Successful completion of any clinical trial signals an achievement of
significant milestone for most biopharmaceutical companies.  However, success in clinic must be coupled
with adequate manufacturing and testing capacity to translate into proper
growth and expansion.  Accordingly, we
propose to increase our current cGMP manufacturing capabilities and position
ourselves to undertake large-scale pharmaceutical grade drug
manufacturing.  Please refer to the
appropriate tables for costs associated with this particular project.

 

Expansion of research and development facilities

 

All
Biotechnology experts agree that sequencing of the human genome will lead to an
explosive growth in development of new intellectual property rights regarding
novel pharmaceutical agents.  It is
absolutely crucial to develop a deep pipeline of novel drug candidates to
sustain growth in the pharmaceutical industry. 
We intend to generate such rich pipeline of novel drug candidates
through our patent pending, Proteomics
technology, Genomavir®.  In order to
maintain a high degree of growth in the pharmaceutical industry it is
absolutely necessary to continue to invest in research and development through
hiring of new scientists, facility expansion, as well as laboratory
equipment.  Please refer to the
appropriate tables for costs associated with this project.

 

Execution and Administration of clinical trials for HyperAcuteTM Cancer
Vaccine.

 

One
of the most important factors for a long-term success of Biotechnology Company
is its ability to conduct clinical trials and bring products to market.  It is NewLink’s primary mission to bring
novel therapeutics and diagnostics to patients. 
We have a unique advantage for a rapidly developing biotechnology
company by having the ability to produce the drugs in our own facilities, do
all the necessary testing and handle all the regulatory issues related to
FDA.  We have submitted our first two IND
(Investigational New Drug Application) to the FDA (Food and 

 

4

 

Drug
Administration) to treat refractory or recurrent Non Small Cell Lung
Cancer.  We anticipate enrolling patients
to this trial in the very near future. 
We have also submitted a pre-IND application for the treatment of
refractory or recurrent Breast cancer and we anticipate filing an IND with the
FDA for this trial in October. 
Furthermore, we plan to initiate two additional trials in the upcoming
year for Prostate and Pancreatic cancers as well.

 

Although
it is tremendously stimulating to have several key drugs in clinical trials, it
is equally important to secure proper funding to successfully complete these
trials and bring them to markets. 
Therefore, we have placed great emphasis to adequately capitalize our
clinical trials and increase the overall likelihood of long-term success as a
pharmaceutical company.

 

Bioinformatics Database & Software Sales

 

Gene
Seeger: We have recently completed licensing this software technology from Iowa
State University.  This software program
was originally written for plant genomic analysis.  We intend to continue marketing this product
and expand sales in the plant sciences. 
However our main intention is to convert this product to a tool that can
analyze human genomes.  We anticipate
making this conversion completed by the year-end and expand to human
pharmaceutical markets.

 

V-match:
is a particularly exciting software program with tremendous market
potential.  This program enables massive
amounts of data to be compressed into smaller components.  Since Human Genome is a massive amount so
biological information we view V-match is an extremely valuable tool in
manipulation of human genomes.  It was
originally written and developed by a German Scientist, computational Biologist
Dr. Stefan Kurtz.  We are in final
stages of negotiations with Dr. Kurtz to get exclusive marketing rights
for this exciting program.

 

Furthermore,
we are in the process of building a comparative database for all major cancer
types.  We intend to utilize this
database internally to identify novel drug targets.  We anticipate completing the Breast cancer
proteome project by year-end and expand to other cancer types in the
future.  We believe this database will
not only be a significant revenue source but also facilitate NewLink’s efforts
to develop major pharmaceutical company collaboration.  We believe continued investment in this
project will ensure its eventual success.

 

Cluster Creation

 

NewLink
proposes to contribute it resources and expertise in Human Pharmaceutical for
the purpose of global industrialization of this industry across Iowa.  Our staff, equipment and expertise would
provide an easy entry point or market penetration for a smaller biotechnology
companies.  This would attract other
companies to the State and contribute towards the development of Biotechnology
Cluster in Iowa.  See page 8 of the
proposal for further details of Cluster formation.

 

3.                                     Has any
part of the project started?  x Yes o  No If yes, explain.

 

Yes, refer to the complete business plan for additional information.

 

5

 

4.                                     Attachment
A1:  A business plan, which at a minimum,
include: marketing study, feasibility study, projected profit and loss
statements for three years into the future, project budget, production
operations, management structure, personnel needs, description of product or
process, status of product/process development and patent status (if
applicable).  (Any information outlined
above not included in the business plan should be submitted as supplemental
information via a separate attachment.)

 

Refer to the Business Plan submitted.

 

5.                                     Identify
the Business’ competitors and explain what impact the proposed project will
have on Iowa competitors.

 

One of the principal objectives of this proposal is to support and
create a human pharmaceutical industry in Iowa. 
NewLink has already taken very crucial steps towards this goal such as
raising the necessary capital, recruiting the talent and manufacturing of the
drugs.  Since this project involves
supporting creation of a new industry in Iowa there are not any previous
competitors.  For additional information
please refer to the Business Plan for analysis of competitive technologies
section.

 

6.                                     Attachment
A2: Copies of Business Quarterly Employer’s Contribution Payroll Report for the
past year and a copy of the most recent payroll for one pay period.

 

See attached documents.

 

7.                                     Will
any of the current employees lose their jobs if the project does not proceed?

o Yes   x No
if yes, attach an explanation regarding the total number of employees that
could be affected, their location(s), and why.

 

We anticipate an aggressive growth pattern for the next several
years.  We expect to generate high paying
jobs as a result of this aggressive growth pattern.  We do not anticipate any job loss if this
grant was not rewarded.  Rather the key
loss would be the demise of future job growth that otherwise would be
achievable.

 

8.                                     Attachment
A3: List of jobs that will be created and/or retained as the results of this
project.  For retained jobs include the
current wage rate.  For jobs created,
include the starting wage rate.

 

Please, refer to the financial review of the Business Plan for
additional information.

 

 

	
  NewLink Yearly
  Growth &

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  	
   

  	
   

  
	
  Number & Type of
  Employees

  	
   

  	
  40

  	
   

  	
  70

  	
   

  	
  120

  	
   

  	
  200

  	
   

  	
  350

  	
   

  	
  500

  	
   

  	
  Salary
  Ranges

  	
   

  
	
  Professional

  	
   

  	
  25

  	
   

  	
  35

  	
   

  	
  50

  	
   

  	
  100

  	
   

  	
  180

  	
   

  	
  250

  	
   

  	
  30-200K

  	
   

  
	
  Administrative

  	
   

  	
  5

  	
   

  	
  18

  	
   

  	
  30

  	
   

  	
  40

  	
   

  	
  50

  	
   

  	
  70

  	
   

  	
  25-50K

  	
   

  
	
  Skilled

  	
   

  	
  7

  	
   

  	
  12

  	
   

  	
  35

  	
   

  	
  50

  	
   

  	
  100

  	
   

  	
  150

  	
   

  	
  25-50K

  	
   

  
	
  Semi Killed

  	
   

  	
  3

  	
   

  	
  5

  	
   

  	
  5

  	
   

  	
  10

  	
   

  	
  20

  	
   

  	
  30

  	
   

  	
  18-30K

  	
   

  

 

6

 

	
  Cluster Yearly Growth &

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  	
   

  	
   

  
	
  Number of Employees

  	
   

  	
  0

  	
   

  	
  30

  	
   

  	
  85

  	
   

  	
  160

  	
   

  	
  270

  	
   

  	
  460

  	
   

  	
  Salary Ranges

  	
   

  
	
  Company 1

  	
   

  	
  0

  	
   

  	
  25

  	
   

  	
  40

  	
   

  	
  70

  	
   

  	
  120

  	
   

  	
  210

  	
   

  	
  30-200K

  	
   

  
	
  Company 2

  	
   

  	
  0

  	
   

  	
  5

  	
   

  	
  25

  	
   

  	
  40

  	
   

  	
  70

  	
   

  	
  130

  	
   

  	
  25-50K

  	
   

  
	
  Company 3

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  10

  	
   

  	
  25

  	
   

  	
  40

  	
   

  	
  80

  	
   

  	
  25-50K

  	
   

  
	
  Company 4

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  10

  	
   

  	
  25

  	
   

  	
  40

  	
   

  	
  80

  	
   

  	
  18-30K

  	
   

  

 

*
Average job would provide annual salary of $55,000 with an additional $12,000
in benefits

 

9.                                     What is
the estimated annual payroll for the created or retained jobs resulting form
the project?

 

See
Table below.  For additional information
please refer to the business plan.

 

Cash Flow Projections (in 000s)

 

	
   

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  
	
  Revenues

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Grants and Contracts

  	
   

  	
  $

  	
  225

  	
   

  	
  $

  	
  400

  	
   

  	
  $

  	
  600

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  2,000

  	
   

  	
  $

  	
  3,000

  	
   

  
	
  Drug Licensing/Royalties/Revenues

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  200

  	
   

  	
  $

  	
  1,500

  	
   

  	
  $

  	
  5,000

  	
   

  	
  $

  	
  15,000

  	
   

  	
  $

  	
  50,000

  	
   

  
	
  Milestone payments

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  800

  	
   

  	
  $

  	
  5,000

  	
   

  	
  $

  	
  7,500

  	
   

  	
  $

  	
  25,000

  	
   

  	
  $

  	
  35,000

  	
   

  
	
  Bioinformatics and Software Development

  	
   

  	
  $

  	
  25

  	
   

  	
  $

  	
  250

  	
   

  	
  $

  	
  330

  	
   

  	
  $

  	
  490

  	
   

  	
  $

  	
  645

  	
   

  	
  $

  	
  800

  	
   

  
	
  Proteomics Database

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  2,000

  	
   

  	
  $

  	
  3,000

  	
   

  	
  $

  	
  5,000

  	
   

  
	
  Diagnostics

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  750

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  2,000

  	
   

  
	
  Total Revenues

  	
   

  	
  $

  	
  250

  	
   

  	
  $

  	
  1,650

  	
   

  	
  $

  	
  8,430

  	
   

  	
  $

  	
  15,990

  	
   

  	
  $

  	
  45,645

  	
   

  	
  $

  	
  93,800

  	
   

  
	
  Operating Expenses

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Salaries

  	
   

  	
  $

  	
  2,289

  	
   

  	
  $

  	
  4,086

  	
   

  	
  $

  	
  7,144

  	
   

  	
  $

  	
  12,145

  	
   

  	
  $

  	
  21,679

  	
   

  	
  $

  	
  31,589

  	
   

  
	
  Payroll taxes, benefits

  	
   

  	
  $

  	
  515

  	
   

  	
  $

  	
  919

  	
   

  	
  $

  	
  1,607

  	
   

  	
  $

  	
  2,733

  	
   

  	
  $

  	
  4,878

  	
   

  	
  $

  	
  7,107

  	
   

  
	
  Laboratory supplies

  	
   

  	
  $

  	
  384

  	
   

  	
  $

  	
  672

  	
   

  	
  $

  	
  1,152

  	
   

  	
  $

  	
  1,920

  	
   

  	
  $

  	
  3,360

  	
   

  	
  $

  	
  4,800

  	
   

  
	
  Intellectual property legal/license fees

  	
   

  	
  $

  	
  533

  	
   

  	
  $

  	
  933

  	
   

  	
  $

  	
  1,600

  	
   

  	
  $

  	
  2,667

  	
   

  	
  $

  	
  5,833

  	
   

  	
  $

  	
  8,333

  	
   

  
	
  Clinical Trial Costs

  	
   

  	
  $

  	
  400

  	
   

  	
  $

  	
  3,000

  	
   

  	
  $

  	
  5,000

  	
   

  	
  $

  	
  7,000

  	
   

  	
  $

  	
  12,000

  	
   

  	
  $

  	
  25,000

  	
   

  
	
  Lease — Laboratory or Manufacturing

  	
   

  	
  $

  	
  100

  	
   

  	
  $

  	
  180

  	
   

  	
  $

  	
  180

  	
   

  	
  $

  	
  550

  	
   

  	
  $

  	
  1,100

  	
   

  	
  $

  	
  1,100

  	
   

  
	
  Capital equipment

  	
   

  	
  $

  	
  250

  	
   

  	
  $

  	
  450

  	
   

  	
  $

  	
  600

  	
   

  	
  $

  	
  1,600

  	
   

  	
  $

  	
  2,800

  	
   

  	
  $

  	
  2,800

  	
   

  
	
  Total Expenses

  	
   

  	
  $

  	
  4,471

  	
   

  	
  $

  	
  10,240

  	
   

  	
  $

  	
  17,283

  	
   

  	
  $

  	
  28,614

  	
   

  	
  $

  	
  51,650

  	
   

  	
  $

  	
  80,730

  	
   

  
	
  Net cash from operations

  	
   

  	
  $

  	
  (4,221

  	
  )

  	
  $

  	
  (8,590

  	
  )

  	
  $

  	
  (8,853

  	
  )

  	
  $

  	
  (12,624

  	
  )

  	
  $

  	
  (6,005

  	
  )

  	
  $

  	
  13,070

  	
   

  
	
  Number of Employees

  	
   

  	
  40

  	
   

  	
  70

  	
   

  	
  120

  	
   

  	
  200

  	
   

  	
  350

  	
   

  	
  500

  	
   

  

 

10.                              Does
the business operate any other facilities in Iowa?  o Yes  x No.

If yes, complete the following:  Not
applicable.

 

11.                              Attachment
A4: Employee benefits provided by the company.

 

All
full time employees are eligible to receive the following benefits:

Health Insurance with Optional Dental, life and Disability Insurance Retirement
Savings Plan with a company match up to 3%, Paid Time Off 26 days, and Employee
Stock Option Plan.

 

7

 

12.                              During
the last five years, has the Business been cited or convicted for violations of
any laws, including environmental or safety regulations?

o Yes   x No.

 

13.                              Summary
of Proposed Costs and Proposed Financing Sources

 

Refer
to the Business Plan for any additional information.  Total investment in State of Iowa for this
project is 76 million dollars.  NewLink
will invest 48 million dollars.  The sate
of Iowa will contribute 23 million dollars as a direct investment into NewLink
and 5 million dollars for the biotechnology cluster.

 

	
  Investment Component

  	
   

  	
  State of Iowa Participation (000’s)

  	
   

  
	
  Expansion Of Clinical Trials

  	
   

  	
  $

  	
  2,000

  	
   

  	
  $

  	
  4,000

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  6,000

  	
   

  
	
  Expansion Of R&D Operations

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  2,000

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  3,000

  	
   

  
	
  Expansion Of Space/Building/Equipment

  	
   

  	
  $

  	
  8,000

  	
   

  	
  $

  	
  2,000

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  11,000

  	
   

  
	
  Bioinformatics/Database

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  2,000

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  3,000

  	
   

  
	
  Total Investment in NewLink

  	
   

  	
  $

  	
  12,000

  	
   

  	
  $

  	
  10,000

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  23,000

  	
   

  
	
  Cluster Creation*

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  2,000

  	
   

  	
  $

  	
  5,000

  	
   

  

 

*Investment goes directly to recruited company

 

	
  Investment Component

  	
   

  	
  NewLink Participation (000’s)

  	
   

  
	
  Expansion Of Clinical Trials

  	
   

  	
  $

  	
  4,000

  	
   

  	
  $

  	
  6,000

  	
   

  	
  $

  	
  6,000

  	
   

  	
  $

  	
  6,000

  	
   

  	
  $

  	
  6,000

  	
   

  	
  $

  	
  28,000

  	
   

  
	
  Expansion Of R&D Operations

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  5,000

  	
   

  
	
  Expansion Of Space/Building/Equipment

  	
   

  	
  $

  	
  2,000

  	
   

  	
  $

  	
  2,000

  	
   

  	
  $

  	
  2,000

  	
   

  	
  $

  	
  2,000

  	
   

  	
  $

  	
  2,000

  	
   

  	
  $

  	
  10,000

  	
   

  
	
  Bioinformatics/Database

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  1,000

  	
   

  	
  $

  	
  5,000

  	
   

  
	
  Total NewLink Investment in
  Iowa

  	
   

  	
  $

  	
  8,000

  	
   

  	
  $

  	
  10,000

  	
   

  	
  $

  	
  10,000

  	
   

  	
  $

  	
  10,000

  	
   

  	
  $

  	
  10,000

  	
   

  	
  $

  	
  48,000

  	
   

  
	
  Total Investment in Iowa Human
  Pharmaceutical Cluster

  	
   

  	
  $

  	
  20,000

  	
   

  	
  $

  	
  21,000

  	
   

  	
  $

  	
  12,000

  	
   

  	
  $

  	
  11,000

  	
   

  	
  $

  	
  12,000

  	
   

  	
  $

  	
  76,000

  	
   

  
	
   

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  	
  Totals

  	
   

  

 

Clinical
Trials & Drug Development 2003-2008

 

	
  Clinical Trial Stage

  	
   

  	
  Phase I/II

  	
   

  	
  Phasae II

  	
   

  	
  Phase III

  	
   

  
	
  Number of Trials

  	
   

  	
  10

  	
   

  	
  7

  	
   

  	
  4

  	
   

  
	
  Number of Patients/Trial

  	
   

  	
  50

  	
   

  	
  200

  	
   

  	
  400

  	
   

  
	
  Total Number of Patients

  	
   

  	
  500

  	
   

  	
  1,400

  	
   

  	
  1,600

  	
   

  
	
  Cost/Patient

  	
   

  	
  $

  	
  8,000

  	
   

  	
  $

  	
  10,000

  	
   

  	
  $

  	
  10,000

  	
   

  
	
  Sub Total

  	
   

  	
  $

  	
  4,000,000

  	
   

  	
  $

  	
  14,000,000

  	
   

  	
  $

  	
  16,000,000

  	
   

  
	
  Total Cost

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  34,000,000

  	
   

  

 

Expansion of Facilities and Equipment: 2003-2008

 

	
   

  	
   

  	
  Sq ft

  	
   

  	
  Cost/Sq/ft

  	
   

  	
  Total Cost

  	
   

  
	
  Clinical Grade Good Manufacturing c-GMP

  	
   

  	
  20,000

  	
   

  	
  $

  	
  500

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  Wet Laboratories

  	
   

  	
  23,000

  	
   

  	
  $

  	
  300

  	
   

  	
  $

  	
  6,900,000

  	
   

  
	
  Office and General Space

  	
   

  	
  7,000

  	
   

  	
  $

  	
  200

  	
   

  	
  $

  	
  1,400,000

  	
   

  
	
  Research & Laboratory Equipment

  	
   

  	
  NA

  	
   

  	
  NA

  	
   

  	
  $

  	
  2,700,000

  	
   

  
	
  TOTALS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  21,000,000

  	
   

  

 

8

 

14.                              Discuss
each of the following items with respect to the proposed project:

 

a)             The current employment
conditions in the community, including any business closures, unemployment
rates, etc. and if applicable, the community’s need for assistance in
attracting the Business.

 

Ames, Iowa is where Iowa State University is located.  A great need exists to develop a job base
that can retain highly trained biotechnology scientists within the community
and the State of Iowa.  Currently, the vast
majority graduates with Ph.D. and Masters Degrees are unable to find suitable
employment within the State.  This is
secondary to the limited scope of the biotechnology and almost non-existent
pharmaceutical industry within Iowa. 
This results in a net immigration of scientific and technical talent
from Iowa to other States.

 

b)            Impact of the proposed
project on the community and the state, include projections that reflect the
impact on local and state tax revenue and any additional costs the community
will incur as a result of the project;

 

See the proposal document.

 

c)             Impact the proposed project
will have on current employees, including the potential for increased skills
and wages;

 

Current employees will obtain very significant opportunities for
advancement as the company grows and expands. 
See Business Plan for additional details.

 

d)            Impact the investment will
have on the ability of the business to expand, upgrade, or modernize its
capabilities;

 

See detailed description in proposal and Business Plan.

 

e)             The extent to which the
investment will increase the Business’ productivity and competitiveness; and

 

See detailed description in proposal and Business Plan.

 

f)               The potential for future
growth in the industry

 

See Business Plan.

 

15.                              Is the
business actively considering locations outside of Iowa? x Yes o  No

If yes, where:

 

California, Michigan, Arizona

 

9

 

16.                               Indicate
the amount of financial assistance being requested from the State of Iowa:
$28,000,000      What type/form of
financial assistance is preferred (e.g, loans, forgivable loans, tax incentives, etc.)

 

Preference is for 50% direct grants and 50% forgivable loans with
repayment in the event the company relocates its major operations outside of
Iowa.

 

17.                               There are three
general justifiable reasons for assistance. 
Check which reason financial assistance is being sought to overcome and
indicate what measures were analyzed in determining the amount and form of
assistance needed:

 

x           Financing Gap — The Business can only
raise a portion of the debt and equity necessary to complete the project.  A gap between sources and uses exists and
state and/or CDBG funds are needed to fill the gap.

 

o            Rate of Return Gap — The Business
can raise sufficient debt and equity to complete the project, but the returns
are inadequate to motivate an “economic person” to proceed with the
project.  Project risks outweigh the rewards.

 

o            Locational Disadvantage (Incentive)
— The Business is deciding between a site in Iowa (site A) and a site in
another state (site B) for its project. 
The Business argues that the project will cost less at site B and will
require subsidy to equalize costs in order to locate at site A.  The objective here is to quantify the cost
differential between site A and site B.

 

The amount of assistance needed is delineated in detail in the proposal
with exact projected costs and revenues. 
Further details of the entire growth plan are provided in the Business
Plan as well.

 

18.                               Identify
which targeted industry cluster(s) this project fits into and explain why
t fits into that cluster.

 

	
  x       Advanced
  Manufacturing

  	
   

  	
  x       Information
  Solutions

  
	
   

  	
   

  	
   

  
	
  x       Life
  Sciences

  	
   

  	
  o       Other:

  

 

NewLink Genetics Corporation is a human pharmaceutical company using
advanced biotechnology manufacturing technology to provide novel drugs for
patients with cancer, NewLink first sales agreements have been for Bioinformatics
Software that provides genome analysis (customers include BASF Corporation and
Biogemma, Inc.)  The chief sector is
Life Sciences.  The business plan
provided explains the market sector in detail.

 

10

 

19.                               Please
indicate what financial assistance program(s) the Business is applying to:

 

	
  o

  	
  CEBA

  	
   

  	
  (Complete
  Section B)

  
	
  o

  	
  Enterprise
  Zone Program

  	
   

  	
  (Complete
  Section C)

  
	
  o

  	
  New
  Capital Investment Program

  	
   

  	
  (Complete
  Section D)

  
	
  o

  	
  New
  Jobs and Income Program

  	
   

  	
  (Complete
  Section E)

  
	
  x

  	
  Iowa
  Values Fund

  	
   

  	
  (Complete
  Section F)

  
	
  o

  	
  Entrepreneurial
  Ventures Assistance Program

  	
   

  	
  (Complete
  Section G)

  
	
  o

  	
  Value
  Added agricultural Products & Processes Financial Assistance Program

  	
   

  	
  (Complete
  Section H)

  
	
  o

  	
  Economic
  Development Set-Aside Program

  	
   

  	
  (Complete
  Section I)

  

 

11

 

Exhibit B

 

Form of Promissory Note — Forgivable Loan

 

 

EXHIBIT B - IVF Forgivable Loan

 

PROMISSORY NOTE

 

	
  $6,000,000

  	
   

  	
  March 18, 2005

  

 

FOR
VALUE RECEIVED, the undersigned promises, in the event this Forgivable Loan is
not forgiven, to pay to the order of the IOWA DEPARTMENT OF
ECONOMIC DEVELOPMENT, at its office at 200 East Grand, Des Moines, Iowa
50309, the sum of SIX MILLION DOLLARS
($6,000,000) without interest thereon except upon default at the
default rate set forth in IVF Contract number 04-IVF-19 (“Contract”).  The terms and conditions by which advances,
repayment and forgiveness of this Promissory Note may occur are as specified in
the Contract.  This Promissory Note may
be prepaid in whole or in part at any time without penalty.

 

Interest
shall first be deducted from the payment and any balance shall be applied on
principal.  Upon default in payment of
any interest, or any installment of principal, the whole amount then unpaid
shall become immediately due and payable at the option of the holder.

 

The
undersigned, in case of suit on this note, agrees to pay on demand all costs of
collection, maintenance of collateral, legal expenses, and attorneys’ fees
incurred or paid by the holder in collecting and/or enforcing this Note on
default.

 

This
note shall be secured by the Security specified in the Contract.

 

Makers,
endorsers and sureties waive demand of payment, notice of non-payment, protest
and notice, Sureties, endorsers and guarantors agree to all of the provisions
of this note, and consent that the time or times of payment of all or any part
hereof may be extended after maturity, from time to time, without notice.

 

	
   

  	
  NEWLINK
  GENETICS CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Charles Link, M.D., President

  
	
   

  	
   

  
	
  Address:

  	
  2901
  South Loop Drive, Building 3, Suite 3900

  
	
   

  	
  Ames, IA
  50010

  

 

 

Exhibit C

 

IVF Financing Commitment Term Sheet

 

 

 

IVF FINANCING COMMITMENT TERM
SHEET

 

 

	
  Business:

  	
   

  	
  NewLink
  Genetics, Inc.  

  2901 South Loop Drive, Building 3, Suite 3900 

  Ames, Iowa
  50010

  	
  (#
  04-IVF-19)

  

 

At
its meeting on February 19, 2004 the Iowa Values
Board approved a financing commitment to Business on the terms and
conditions detailed herein.  The
following is a summary of the principal terms and conditions for the proposed
financial assistance (“Investment”).  To
acknowledge acceptance of these terms and conditions please sign and return
this document no later than March 29, 2004
to the Iowa Department of Economic Development (“IDED”) to the contact person
at the address stated in the cover letter transmitting this Term Sheet.  Following receipt, IDED will prepare and
send a contract to the Business for this IVF Investment Award.

 

	
  THE
  PARTIES:

  Business:

  Lender:

  	
   

  	
   

  NewLink
  Genetics, Inc.

  State of Iowa, Iowa Values Board

  	
  

  
	
  THE
  PROJECT:

  Total Project Cost:

  Project Type:

  	
   

  	
   

  $185,650,000

  Life
  Sciences/Pharmaceutical Cluster

  
	
   

  	
   

  	
   

  
	
  Number of Jobs Pledged:

   

  	
   

  	
  350
  jobs to be retained/created over five (5) years and maintained for an
  additional five (5) years

  
	
   

  	
   

  	
   

  
	
  Average Annual Wage:

  	
   

  	
  $51,890

  
	
   

  	
   

  	
   

  
	
  THE
  INVESTMENT:

  	
   

  	
   

  
	
  Principal Amount:

  	
   

  	
  $6.0
  million

  
	
   

  	
   

  	
   

  
	
  Interest Rate:

  	
   

  	
  0%
  unless the Business is in default. In that event, the interest rate will
  increase to the default rate stated in the IVF Investment Contract.

  
	
   

  	
   

  	
   

  
	
  Form of Investment:

  	
   

  	
  $6.0
  million Forgivable Loan, with a $3.2 million royalty repayment over 10
  years.

  
	
   

  	
   

  	
   

  
	
  Term:

  	
   

  	
  Funds
  will be disbursed according to Special Conditions described below. $3.2
  million royalty repayment terms shall be established to provide payment to be
  complete within 10 years of award.

  
	
   

  	
   

  	
   

  
	
  Availability of Funds:

  	
   

  	
  Up
  to $ 2,000,000 in FY ‘04

  Up
  to $ 2,000,000 in FY ‘05

  Up
  to $ 1,000,000 in FY ‘06

  Up
  to $ 1,000,000 in FY ‘07

  

 

1

 

	
  Terms of Loan Forgiveness:

  	
   

  	
  This
  Forgivable Loan will be forgiven if the company completes the construction of
  a research and development facility and pharmaceutical manufacturing plant in
  the state, employs at least 350 individuals within 5 years of the award,
  maintains the positions 10 years from the award date, and satisfies the terms
  and conditions detailed in the IVF Investment Contract.

  
	
   

  	
   

  	
   

  
	
  Security:

  	
   

  	
  This
  Investment will be secured by a Priority position on Intellectual property
  and licenses.

  
	
   

  	
   

  	
   

  
	
  General Conditions:

  	
   

  	
  No
  funds will be disbursed until the following general conditions have been met
  to the satisfaction of the Due Diligence Committee:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1) The Business has signed
  and returned this Term Sheet to IDED within the time period stated.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2) The IDED staff prepares
  and submits to the Due Diligence Committee, for its prior approval, a
  contract for negotiation with the Business that conforms to this Term Sheet
  and includes enforceable repayment provisions in the event the project does
  not go forward, the project is not completed within the time frame
  established, or the Business is in default of the IVF Investment Contract.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4) The Business and IDED
  execute a final contract. The extension of this financial assistance is
  subject to the execution of a contract and all related documents deemed
  advisable and acceptable to IDED and its legal counsel.

  
	
   

  	
   

  	
   

  
	
  Special Conditions:

  	
   

  	
  The
  following special conditions must be met by the Business as a condition of
  Lender entering into an IVF Investment Contract with Business. Release of IVF
  funds to be staged as NewLink Genetics, Inc. meets product development
  and financial obligations cited below:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $2,000,000
  — released to NewLink once the following are met:

  a) Receive Investigational
  New Drug (IND) approval from the Food and Drug Administrative (FDA) to
  initiate Phase I/II trials on two cancer drugs.

  
	
   

  	
   

  	
  b)
  Submit IND applications to FDA for two additional cancer drugs.

  
	
   

  	
   

  	
  c)
  Raise $2 million in additional equity.

  

 

2

 

	
   

  	
   

  	
  $2,000,000 — released to NewLink upon meeting these
  additional obligations:

  a) Complete enrollment in
  phase II clinical trials for one of two cancer drugs approved.

  
	
   

  	
   

  	
  b) Obtain IND approval
  from FDA to commence clinical trials for a third cancer drug.

  
	
   

  	
   

  	
  c) Initiate collaboration
  with a pharmaceutical/biotech company for co-product development.

  
	
   

  	
   

  	
  d) Raise an additional $3
  million of equity investment.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $2,000,000
  — release to NewLink upon
  demonstration of the accomplishment of following:

  a) Enter into research
  collaboration with a second pharmaceutical company.

  
	
   

  	
   

  	
  b) Initiate building
  construction of pharmaceutical research and development facility.

  
	
   

  	
   

  	
  c) Raise an additional $3
  million of equity investment.

  
	
   

  	
   

  	
  d) NewLink demonstrates
  revenue generation at least $1 million per year from product sales.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Royalties.

  Royalty
  repayment not to exceed $3,200,000. Royalty repayments will apply to any
  disallowance/default repayments.

  
	
   

  	
   

  	
   

  
	
  Rule Waiver:

  	
   

  	
  The
  Iowa Values Board approved the Business’s rule waiver request. A copy of
  the Waiver Order is attached.

  

 

If
you agree to the above terms and conditions, please acknowledge your agreement
as provided below.

 

	
  NEWLINK GENETICS INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By

  	
  /s/
  Charles Link

  	
   

  
	
   

  	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Charles
  Link, M.D., President and Chairman

  	
   

  
	
   

  	
  Print
  name, title

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date

  	
  3/31/04

  	
   

  

 

3

 

Exhibit D

 

THE PROJECT

(DETAILED DESCRIPTIONS OF THE PROJECT AND BUDGET)

 

 

 

GROW IOWA VALUES FUNDS PROGRAM

PROJECT DESCRIPTION AND BUDGET

(EXHIBIT D)

 

	
   

  	
                             To
  be filled in by DED: 

  
	
   

  	
   

  
	
  Name
  of Recipient:

  	
  NewLink
  Genetics

  	
   

  	
                                            Original    

  
	
   

  	
   

  	
   

  	
   

  
	
  Contract #:

  	
  04-IVF-19

  	
   

  	
                                     Amendment
  # 

  

 

PROJECT DESCRIPTION

 

NewLink
Genetics, Inc. will develop and bring to market cancer drugs, diagnostic
applications and software databases. The project involves bringing at least 3
cancer drugs to clinical trials, initiating collaborative product development
with another pharmaceutical/biotech companies, building a pharmaceutical
research and development facility, and constructing a pharmaceutical
manufacturing plant.

 

PERFORMANCE TARGETS

 

NewLink
Genetics will invest at least $189,862,500 in research and development of
cancer drugs; acquisition of equipment; construction of a R & D
facility and product manufacturing facility. 
NewLink Genetics will retain 35 employees and create 315 positions
within 5 years of the Contract Effective Date.

 

PROJECT
COMPLETION DATE:  5 Years from Contract
Effective Dale

PROJECT
MAINTENANCE DATE:  10 Years From Contract
Effective Date

 

AMOUNT BUDGETED

 

	
  USE OF FUNDS

  ACTIVITY

  	
   

  	
  Cost

  	
   

  	
  Source A

  	
   

  	
  Source B

  	
   

  	
  Source C

  	
   

  	
  Source D

  	
   

  	
  Source E

  	
   

  	
  Source F

  	
   

  
	
  Clinical
  Trials

  	
   

  	
  $

  	
  55,300,000

  	
   

  	
   

  	
   

  	
  $

  	
  55,300,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Product
  Devel./Testing

  	
   

  	
  $

  	
  2,500,000

  	
   

  	
  $

  	
  1,507,500

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  992,500

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Research &
  Development

  	
   

  	
  $

  	
  78,750,000

  	
   

  	
  $

  	
  2,000,000

  	
   

  	
  $

  	
  76,250,000

  	
   

  	
   

  	
   

  	
  $

  	
  500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital
  Equipment Acq.

  	
   

  	
  $

  	
  12,100,000

  	
   

  	
  $

  	
  1,600,000

  	
   

  	
  $

  	
  10,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Building
  Construction

  	
   

  	
  $

  	
  20,300,000

  	
   

  	
  $

  	
  492,500

  	
   

  	
  $

  	
  19,300,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  507,500

  	
   

  	
   

  	
   

  
	
  Bioinformation
  Equipment/

  	
   

  	
  $

  	
  5,750,000

  	
   

  	
  $

  	
  400,000

  	
   

  	
  $

  	
  5,350,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Database
  Development

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee
  Training (260E)

  	
   

  	
  $

  	
  1,930,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,930,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other
  Capital Investment

  	
   

  	
  $

  	
  13,232,500

  	
   

  	
   

  	
   

  	
  $

  	
  8,950,000

  	
   

  	
   

  	
   

  	
  $

  	
  4,282,500

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUB TOTAL

  	
   

  	
  $

  	
  189,862,600

  	
   

  	
  $

  	
  6,000,000

  	
   

  	
  $

  	
  175,650,000

  	
   

  	
  $

  	
  1,930,000

  	
   

  	
  $

  	
  5,775,000

  	
   

  	
  $

  	
  507,500

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUB TOTAL

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  
	
  TOTAL ALL FUNDS

  	
   

  	
  $

  	
  189,862,500

  	
   

  	
  $

  	
  6,000,000

  	
   

  	
  $

  	
  175,650,000

  	
   

  	
  $

  	
  1,930,000

  	
   

  	
  $

  	
  5,775,000

  	
   

  	
  $

  	
  507,500

  	
   

  	
  $

  	
  0

  	
   

  

 

TERMS OF PROPOSED FINANCING

 

	
  Source
  of Funds

  	
   

  	
  Amount

  	
   

  	
  Type

  	
   

  	
  Rate

  	
   

  	
  Term

  	
   

  	
  Collateral

  
	
  Source
  A: Iowa Values Fund

  	
   

  	
  $

  	
  6,000,000

  	
   

  	
  Fgl/Royalty

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1st
  position on Intellectual property, $3.2 million royally repayment to be paid
  back within ten years.

  
	
  Source
  B: NewLink Genetics Inv/Equity

  	
   

  	
  $

  	
  175,650,000

  	
   

  	
  Tax
  Refund

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Source
  C: New Jobs Training Fund

  	
   

  	
  $

  	
  1,930,000

  	
   

  	
  Grant

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Source
  D: NCIP/NJIP

  	
   

  	
  $

  	
  5,775,000

  	
   

  	
  Tax
  Credits

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Source
  E: NCIP/NJIP

  	
   

  	
  $

  	
  507,500

  	
   

  	
  Sales
  Tax Refund

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Source
  F:

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  189,862,500

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

ADDITIONAL PERFORMANCE TARGETS

 

	
  Number of Jobs to be Created:

  	
   

  	
  315

  	
   

  	
  Total of other Funds in Project:

  	
   

  	
     $183,862,500

  
	
  Number Jobs to be Retained:

  	
   

  	
  35

  	
   

  	
   

  	
   

  	
   

  
	
  Total GIVF for Project:

  	
   

  	
  $6,000,000

  	
   

  	
  Total GIVF for Project:

  	
   

  	
        $6,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GIVF per Job Affected:

  	
   

  	
  $17,142.86

  	
   

  	
  Ratio of $1.00 of GIVF to:

  	
   

  	
  $30.64 of “Other” FundsExhibit
10.57

 

CONTRACT AMENDMENT

 

	
  BUSINESS:

  	
   

  	
  NewLink
  Genetics Corporation

  
	
  MASTER
  CONTRACT #:

  	
   

  	
  04-IVF-019

  
	
  AMENDMENT
  #:

  	
   

  	
  One

  
	
  EFFECTIVE
  DATE:

  	
   

  	
  August 19,
  2010

  

 

THIS
CONTRACT AMENDMENT is made by and between the IOWA DEPARTMENT OF ECONOMIC
DEVELOPMENT, (hereafter “Department” or “IDED”), 200 East Grand Avenue, Des
Moines, Iowa 50309, an agency of the State of Iowa and NewLink Genetics Corporation (hereafter “Business”), a Delaware corporation, 2901 South Loop Drive, Suite 3900, Ames, Iowa
50010.

 

WHEREAS,
Business requested an extension of the Project Completion Date, and

 

WHEREAS,
the IDED Board approved a one (1) year
extension, effective as of the Effective Date stated above, and

 

NOW,
THEREFORE, the Contract referenced above is amended as follows:

 

1.              REVISION
OF ARTICLE 10.2, “COVENANTS.”  Article 10.2 is amended as follows:

 

10.2                Creation and Maintenance of Jobs in Iowa.

(a)  By March 18,
2011  the end of the 5th year from
the Contract Effective Date plus any additional extension periods that may be
granted by IDED pursuant to this Article 10.2, the Business shall create 315 jobs
and retain 35 jobs for a total of 350 jobs (the “Job
Creation/Retention Obligation”). 
One hundred percent (100%) of the pledged jobs shall be created by March 18, 2011
the end of the 5th year from the Contract Effective Date.  At that time, the 5-year Job
Maintenance Period shall begin, ending March 18, 2016. The
combined Job Creation Period time frame and the Job Maintenance Period shall be
the end of the 10th year from the Contract Effective Date plus any additional
extension periods that may be granted by IDED pursuant to this Article 10.2.  All Project jobs shall be created and
maintained in the State of Iowa.

 

2.              REVISION
OF EXHIBIT D,  “DESCRIPTION OF THE
PROJECT AND AWARD BUDGET.”  Exhibit D
is amended to revise the Project Completion Date.  Details of this change are reflected in the
attached Revised Exhibit C which is hereby incorporated by this reference
and made a part of this Contract Amendment.

 

This section left blank intentionally; signature page follows.

 

 

Except
as otherwise revised above, the terms, provisions, and conditions of Contract
Number 04-IVF-019 remain unchanged and are in full force and effect:

 

 

	
  FOR
  BUSINESS:

  	
   

  	
  FOR
  IDED:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Brett
  Mills, Director

  	
  DATE

  
	
  SIGNATURE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PRINT/TYPE
  NAME, TITLE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FOR
  COMMUNITY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNATURE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PRINT/TYPE
  NAME, TITLE

  	
   

  	
   

  

 

 

GROW IOWA VALUE FUNDS PROGRAM

PROJECT DESCRIPTION AND BUDGET

(EXHIBIT D)

 

	
   

  	
  To be filled in by DED:                  

  
	
   

  	
   

  
	
   

  	
   

  	
  Original                      

  
	
   

  	
   

  	
   

  
	
  Name
  of Recipient:

  	
  NewLink
  Genetics

  	
  Amendment
  #                    

  
	
   

  	
   

  	
   

  
	
  Contract #:

  	
  04-IVF-19

  	
   

  

 

PROJECT DESCRIPTION

 

NewLink
Genetics, Inc. will develop and bring to market cancer drugs, diagnostic
applications and software databases. The project involves bringing at least 3
cancer drugs to clinical trials, initiating collaborative product development
with another pharmaceutical/biotech companies, building a pharmaceutical
research and development facility, and constructing a pharmaceutical
manufacturing plant.

 

PERFORMANCE TARGETS

 

NewLink
Genetics will invest at least $189,862,500 in research and development of
cancer drugs; acquisition of equipment; construction of a R & D
facility and product manufacturing facility. 
NewLink Genetics will retain 35 employees and create 315 positions within 5 years
of the Contract Effective Date  by the Project
Completion Date.

 

PROJECT
COMPLETION DATE: 5 Years from Contract Effective Date  March 18,
2011

PROJECT
MAINTENANCE DATE: 10
Years From Contract Effective Date March 18, 2016

 

AMOUNT BUDGETED

 

	
  USE OF FUNDS

  ACTIVITY

  	
   

  	
  Cost

  	
   

  	
  Source A

  	
   

  	
  Source B

  	
   

  	
  Source C

  	
   

  	
  Source D

  	
   

  	
  Source E

  	
   

  	
  Source F

  	
   

  
	
  Clinical
  Trials

  	
   

  	
  $

  	
  55,300,000

  	
   

  	
   

  	
   

  	
  $

  	
  55,300,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Product
  Devel/Testing

  	
   

  	
  $

  	
  2,500,000

  	
   

  	
  $

  	
  1,507,500

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  992,500

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Research &
  Development

  	
   

  	
  $

  	
  78,750,000

  	
   

  	
  $

  	
  2,000,000

  	
   

  	
  $

  	
  76,250,000

  	
   

  	
   

  	
   

  	
  $

  	
  500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital
  Equipment Acq.

  	
   

  	
  $

  	
  12,100,000

  	
   

  	
  $

  	
  1,600,000

  	
   

  	
  $

  	
  10,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Building
  Construction

  	
   

  	
  $

  	
  20,300,000

  	
   

  	
  $

  	
  492,500

  	
   

  	
  $

  	
  19,300,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  507,500

  	
   

  	
   

  	
   

  
	
  Bioinformatics
  Equipment/

  	
   

  	
  $

  	
  5,750,000

  	
   

  	
  $

  	
  400,000

  	
   

  	
  $

  	
  5,350,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Database
  Equipment

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee
  Training (260E)

  	
   

  	
  $

  	
  1,930,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,930,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other
  Capital Investment

  	
   

  	
  $

  	
  13,232,000

  	
   

  	
   

  	
   

  	
  $

  	
  8,950,000

  	
   

  	
   

  	
   

  	
  $

  	
  4,282,500

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL

  	
   

  	
  $

  	
  189,862,500

  	
   

  	
  $

  	
  6,000,000

  	
   

  	
  $

  	
  175,650,000

  	
   

  	
  $

  	
  1,930,000

  	
   

  	
  $

  	
  5,775,000

  	
   

  	
  $

  	
  507,500

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  	
  $

  	
  0

  	
   

  
	
  TOTAL ALL FUNDS

  	
   

  	
  $

  	
  189,862,500

  	
   

  	
  $

  	
  6,000,000

  	
   

  	
  $

  	
  175,650,000

  	
   

  	
  $

  	
  1,930,000

  	
   

  	
  $

  	
  5,775,000

  	
   

  	
  $

  	
  507,500

  	
   

  	
  $

  	
  0

  	
   

  

 

TERMS OF PROPOSED FINANCING

 

	
  Source of Funds

  	
   

  	
  Amount

  	
   

  	
  Type

  	
   

  	
  Rate

  	
   

  	
  Term

  	
   

  	
  Collateral

  
	
  Source A: Iowa Values Fund

  	
   

  	
  $

  	
  6,000,000

  	
   

  	
  Fgl/Royalty

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1st position on
  Intellectual Property, $3.2 million royalty repayment to be paid back 

  
	
  Source B: NewLink Genetics Inv/Equity

  	
   

  	
  $

  	
  175,650,000

  	
   

  	
  Tax Refund

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Source C: New Jobs Training Fund

  	
   

  	
  $

  	
  1,930,000

  	
   

  	
  Grant

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Source D: NCIP/NJIP

  	
   

  	
  $

  	
  5,775,000

  	
   

  	
  Tax Credits

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  within ten years.

  
	
  Source E: NCIP/NJIP

  	
   

  	
  $

  	
  507,500

  	
   

  	
  Sales Tax Refund

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Source F:

  	
   

  	
  $

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL:

  	
   

  	
  $

  	
  189,862,500

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

ADDITIONAL PERFORMANCE TARGETS

 

	
  Number of Jobs to be Created:

  	
   

  	
  315

  	
   

  	
  Total of other Funds in Project:

  	
   

  	
  $183,862,500

  
	
  Number of Jobs to be Retained:

  	
   

  	
  35

  	
   

  	
   

  	
   

  	
   

  
	
  Total GIVF for Project:

  	
   

  	
  $6,000,000

  	
   

  	
  Total GIVF for Project:

  	
   

  	
      $6,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GIVF per Job Affected:

  	
   

  	
  $17,142.86

  	
   

  	
  Ratio of $1.00 of GIVF to:

  	
   

  	
  $30.64
  of “Other” Funds

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]