Document:

Exhibit 10.58

 

MASTER CONTRACT

 

BY AND BETWEEN

 

NEWLINK GENETICS CORPORATION

 

AND THE

 

IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT

 

CONTRACT NUMBER:   06-54

 

Table of Contents

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  	
  MASTER
  CONTRACT DURATION; FUNDING AGREEMENTS DURATION

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
  FUNDING

  	
  1

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Funding
  Sources

  	
  1

  
	
   

  	
  2.2

  	
  Reduction,
  Discontinuance or Alteration of Funding

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
  CONTRACT
  STRUCTURE AND DEFINITIONS; DOCUMENTS INCORPORATED BY REFERENCE; AND ORDER OF
  PRIORITY

  	
  2

  
	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Contract
  Structure and Definitions

  	
  2

  
	
   

  	
  3.2

  	
  Documents
  Incorporated by Reference

  	
  3

  
	
   

  	
  3.3

  	
  Business’s
  Financial Assistance Application on File

  	
  3

  
	
   

  	
  3.4

  	
  Order
  of Priority

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
  AWARD

  	
  3

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Description
  of the Project and Award Budget

  	
  3

  
	
   

  	
  4.2

  	
  Job
  Obligations

  	
  4

  
	
   

  	
  4.3

  	
  Repayment
  Obligation

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
  CONDITIONS
  TO DISBURSEMENT OF FUNDS; DISBURSEMENT TERMS

  	
  4

  
	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Documents
  Submitted

  	
  4

  
	
   

  	
  5.2

  	
  Prior
  Costs

  	
  5

  
	
   

  	
  5.3

  	
  Cost
  Variation

  	
  5

  
	
   

  	
  5.4

  	
  Suspension
  of Disbursement

  	
  5

  
	
   

  	
  5.5

  	
  Investment
  of Award Proceeds

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
  SECURITY;
  CROSS-COLLATERALIZATION

  	
  6

  
	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Security

  	
  6

  
	
   

  	
  6.2

  	
  Value
  of Collateral

  	
  6

  
	
   

  	
  6.3

  	
  Additional
  or Substitute Collateral

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
  6

  
	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  Organization
  and Qualifications

  	
  6

  
	
   

  	
  7.2

  	
  Authority
  and Validity of Obligations

  	
  6

  
	
   

  	
  7.3

  	
  Use
  of Proceeds

  	
  7

  
	
   

  	
  7.4

  	
  Subsidiaries

  	
  7

  
	
   

  	
  7.5

  	
  Financial
  Reports

  	
  7

  
	
   

  	
  7.6

  	
  No
  Material Adverse Change

  	
  7

  
	
   

  	
  7.7

  	
  Full
  Disclosure; Business’s Financial Assistance Application

  	
  7

  
	
   

  	
  7.8

  	
  Trademarks,
  Franchises and Licenses

  	
  7

  
	
   

  	
  7.9

  	
  Governmental
  Authority and Licensing

  	
  7

  
	
   

  	
  7.10

  	
  Litigation
  and Other Controversies

  	
  7

  
	
   

  	
  7.11

  	
  Good
  Title

  	
  8

  
	
   

  	
  7.12

  	
  Taxes

  	
  8

  
	
   

  	
  7.13

  	
  Other
  Contracts

  	
  8

  
	
   

  	
  7.14

  	
  No
  Default

  	
  8

  
	
   

  	
  7.15

  	
  Compliance
  with Laws

  	
  8

  
	
   

  	
  7.16

  	
  Effective
  Date of Representations and Warranties

  	
  8

  

 

i

 

Table of Contents

(continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
  COVENANTS

  	
  8

  
	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Maintain
  Existence in Iowa

  	
  8

  
	
   

  	
  8.2

  	
  Job
  Obligations

  	
  9

  
	
   

  	
  8.3

  	
  Performance
  Obligations

  	
  9

  
	
   

  	
  8.4

  	
  Maintenance
  of Properties

  	
  9

  
	
   

  	
  8.5

  	
  Taxes
  and Assessments

  	
  9

  
	
   

  	
  8.6

  	
  Insurance

  	
  9

  
	
   

  	
  8.7

  	
  Required
  Reports

  	
  9

  
	
   

  	
  8.8

  	
  Inspection
  and Audit

  	
  10

  
	
   

  	
  8.9

  	
  Mergers,
  Consolidations and Sales

  	
  10

  
	
   

  	
  8.10

  	
  Formation
  and Maintenance of Subsidiaries

  	
  10

  
	
   

  	
  8.11

  	
  Compliance
  with Laws

  	
  11

  
	
   

  	
  8.12

  	
  Use
  of Award Proceeds

  	
  11

  
	
   

  	
  8.13

  	
  Changes
  in Business Ownership, Structure and Control

  	
  11

  
	
   

  	
  8.14

  	
  Notice
  of Meetings

  	
  11

  
	
   

  	
  8.15

  	
  Notice
  of Proceedings

  	
  11

  
	
   

  	
  8.16

  	
  Accounting
  Records

  	
  11

  
	
   

  	
  8.17

  	
  Restrictions

  	
  12

  
	
   

  	
  8.18

  	
  No
  Changes in Business Operations

  	
  12

  
	
   

  	
  8.19

  	
  Indemnification

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
  EVENTS
  OF DEFAULT AND REMEDIES

  	
  12

  
	
   

  	
   

  	
   

  
	
   

  	
  9.1

  	
  Events
  of Default

  	
  12

  
	
   

  	
  9.2

  	
  Default
  Remedies

  	
  14

  
	
   

  	
  9.3

  	
  Default
  Interest Rate

  	
  14

  
	
   

  	
  9.4

  	
  Expenses

  	
  14

  
	
   

  	
  9.5

  	
  Notice
  of Default and Opportunity to Cure

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
  MISCELLANEOUS

  	
  14

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1

  	
  Timely
  Performance

  	
  14

  
	
   

  	
  10.2

  	
  State
  of Iowa Recognition

  	
  15

  
	
   

  	
  10.3

  	
  Choice
  of Law and Forum

  	
  15

  
	
   

  	
  10.4

  	
  Governing
  Law

  	
  15

  
	
   

  	
  10.5

  	
  Master
  Contract/Funding Agreement Amendments

  	
  15

  
	
   

  	
  10.6

  	
  Notices

  	
  15

  
	
   

  	
  10.7

  	
  Headings

  	
  16

  
	
   

  	
  10.8

  	
  Final
  Authority

  	
  16

  
	
   

  	
  10.9

  	
  Waivers

  	
  16

  
	
   

  	
  10.10

  	
  Counterparts

  	
  16

  
	
   

  	
  10.11

  	
  Survival
  of Representations

  	
  16

  
	
   

  	
  10.12

  	
  Severability
  of Provisions

  	
  16

  
	
   

  	
  10.13

  	
  Successors
  and Assigns

  	
  17

  
	
   

  	
  10.14

  	
  Termination

  	
  17

  
	
   

  	
  10.15

  	
  Integration

  	
  17

  

 

ii

 

MASTER CONTRACT

 

	
  BUSINESS:

  	
  NewLink
  Genetics Corporation

  
	
  MASTER
  CONTRACT NUMBER:

  	
  06-54

  
	
  AWARD
  DATE:

  	
  December 29,
  2005

  

 

This
FINANCIAL ASSISTANCE CONTRACT (the “Master Contract”)
is made by and between the Iowa Department of
Economic Development (“IDED”), 200
East Grand Avenue, Des Moines, IA 50309 and NewLink
Genetics Corporation a Delaware Corporation (“Business”),
2901 South Loop Drive, Suite 3900, Ames, Iowa 50010.

 

WHEREAS,
the Business submitted an application to IDED requesting financial assistance
in the financing of its Project as more fully described in Exhibit C,
Description of the Project and Award Budget, (the “Project”);
and

 

WHEREAS,
the IDED found the Project to meet the requirements established to receive
financial assistance; and

 

WHEREAS,
the IDED and/or the Iowa Department of Economic Development Board (“IDED Board”)
have awarded the Business financial assistance from one or more
IDED-administered programs for the Project, all of which are subject to the
terms and conditions set forth herein and collectively referred to as the “Award”; and

 

NOW
THEREFORE, in consideration of the mutual promises contained herein and
intending to be legally bound, the Business and IDED agree to the following
terms:

 

ARTICLE 1

MASTER CONTRACT DURATION;
FUNDING AGREEMENTS DURATION

 

This
Master Contract shall be in effect until all of Business’s obligations and
liabilities under this Master Contract and all of the Funding Agreements
executed in connection with this Master Contract have been satisfied.  The duration of each Funding Agreement will
be as described in the Funding Agreement.

 

ARTICLE 2

FUNDING

 

2.1                                 Funding Sources.  The sources of funding for this Award are
appropriations to IDED for financial assistance programs administered by the
IDED and tax credit programs that IDED is authorized to administer.

 

2.2                                 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 a deappropriation of revenues previously
appropriated by the legislature for this Award, 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.

 

 

ARTICLE 3

CONTRACT STRUCTURE AND
DEFINITIONS;

DOCUMENTS INCORPORATED BY
REFERENCE; AND ORDER OF PRIORITY

 

3.1                                 Contract
Structure and Definitions.

 

(a)                                  This Award
shall be governed by this Master Agreement and the individual funding
agreements (the “Funding Agreements”) for each
source of program assistance for this Award. 
This Award has been provided to the Business to fund the Project
described in Exhibit C, Description of the Project and Award Budget.  The Articles of this Master Contract apply to
each Funding Agreement unless a Funding Agreement specifically states
otherwise.

 

(b)                                 The following
terms apply to this Master Contract and each of the Funding Agreements, unless
otherwise specified in a Funding Agreement:

 

“Award Date”  means the date
first stated in this Master Contract and is the date the IDED and/or the IDED
Board approved the awarding of financial assistance to the Business for the
Project.

 

“Business’ Employment Base”
means the number of jobs as stated in Exhibit D, Job Obligations
that the Business and IDED have established as the job base for this
Project.  The number of jobs the Business
has pledged to create/retain shall be in addition to the Business’s Employment
Base.

 

“Created Jobs” means the
number of new FTE Jobs the Business will add over and above the Business’s
Employment Base and, if applicable, Statewide Employment Base.

 

“Forgivable Loan” means
a form of an award made by the IDED to the Business under a Funding
Agreement(s) for which repayment is eliminated in part or entirely if the
Business satisfies the terms of this Contract and the Funding Agreement(s).

 

“Full-time Equivalent (FTE) Job”
means the employment of one person:

 

(a)                                  For 8 hours per day for a
5-day, 40-hour workweek for 52 weeks per year, including paid holidays,
vacations and other paid leave, or

(b)                                 For the number of hours or
days per week, including paid holidays, vacations and other paid leave,
currently established by schedule, custom, or otherwise, as constituting a week
of full-time work for the kind of service an individual performs for an
employing unit.

 

“fob Maintenance Period”
means the date two (2) years from the Project Completion Date as
stated in Exhibit C, Description of the Project and Award Budget.  The Business shall maintain the Project, and
the created/retained jobs through the Job Maintenance Period.

 

“Job Obligations”
means the Created Jobs, Retained Jobs, Qualifying Jobs and
Non-qualifying Jobs associated with the Project that pay the wages and
benefits, all as outlined in Exhibit D, Job Obligations.

 

“Loan”  means form of
an award made by the IDED to the Business under a Funding Agreement(s) for
which full repayment is expected.

 

“Non-qualifying jobs”
are those jobs created or retained by the project that do not qualify
for funding, but would not be created or retained if the Project did not
proceed.

 

2

 

“Project”  means the
description of the work and activities to be completed by the Business as
outlined in Exhibit C, Description of the Project and Award Budget, and Exhibit A,
Business’s Financial Assistance Application:

 

“Project Completion Date”
means the date three (3) years from the Award Date as stated in Exhibit C,
Description of the Project and Award Budget. 
The Project Completion Date is the date by which all Project activities
shall be satisfactorily completed.

 

“Statewide Employment Base”
means the number of jobs as stated in Exhibit D, Job Obligations
that the Business and IDED have determined as those jobs that will be retained
at other facilities in the state.  The
number of jobs the Business has pledged to create/retain shall be in addition
to the Statewide Employment Base.

 

“Qualifying jobs”
are those created or retained jobs that qualify for program funding.

 

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

 

Exhibit A
-                                        Business’s
Financial Assistance Application, Application # 06-HQJC-017

Exhibit B
-                                          Funding
Agreements:

B5-
HQJCP Funding Agreement

Exhibit C
-                                          Description of
the Project and Award Budget

Exhibit D
-                                         Job Obligations

 

“Retained Job”  means an
existing job that would be eliminated or moved to another state if the project
did not proceed in Iowa.

 

3.3                                 Business’s
Financial Assistance Application on File.  Due to its size, Exhibit A will not be
attached to this Master Contract, but will be kept on file at the Iowa
Department of Economic Development.  It
shall, nevertheless, be considered an incorporated element of this Master
Contract and the Funding Agreements.

 

3.4                                 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)                                  Master
Contract, Articles 1-10

 

(b)                                 Exhibit B
- Funding Agreements

 

(c)                                  Exhibit C
- Description of the Project and Award Budget

 

(d)                                 Exhibit D
- Job Obligations

 

(e)                                  Exhibit A
- Business’s Financial Assistance Application

 

ARTICLE 4

AWARD

 

4.1                                 Description of
the Project and Award Budget.  The IDED and/or the IDED Board have approved
an Award to the Business from the programs and in the amounts identified in Exhibit C,

 

3

 

Description of the Project and Award Budget.  The Project Budget for this Award is as
detailed in Exhibit C.

 

4.2                                 Job Obligations.  The IDED and/or the IDED Board have approved
an Award to the Business and the Business’ obligations for FTE Created Jobs,
Retained Jobs, Qualifying Jobs and Non-qualifying Jobs are outlined in Exhibit D,
Job Obligations.

 

4.3                                 Repayment
Obligation.  The
obligation to repay the direct financial assistance components of this Award
shall be evidenced by Promissory Notes executed in connection with the Funding
Agreements.

 

ARTICLE 5

CONDITIONS TO DISBURSEMENT
OF FUNDS; DISBURSEMENT TERMS

 

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

 

5.1                                 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)                                  Master
Contract. 
Fully executed Master Contract.

 

(b)                                 Funding
Agreements. 
Fully executed Funding Agreements.

 

(c)                                  Promissory
Notes. 
The Promissory Notes required by the Funding Agreements.

 

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

 

(e)                                  Certificate
of Corporate Existence.  A certificate of existence
for the Business from the Office of the Secretary of State of Iowa.

 

(f)                                    Results
of Lien and Tax Search.  Financing statement, tax and
judgment lien search results, in the Business’s state of
incorporation/organization, against the Business and Secured Property.

 

(g)                                 Security
Documents. 
The fully executed Security Documents required in Article 6.0.

 

(h)                                 Other
Required Documents.  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)                                     Release
Form — Confidential Tax Information.  A signed 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.

 

4

 

(k)                                  Satisfactory
Credit History.  Documentation of
satisfactory credit history of the Business and guarantors, as applicable, with
no judgments or unsatisfied liens or similar adverse credit actions.

 

(l)                                     Project
Financial Commitments.  The
Business shall have submitted a letter from the funding sources identified in Exhibit C
committing to the specified financial involvement in the Project and received
the IDED’s approval of the letters of commitment.  Each letter shall include the amount, terms
and conditions of the financial commitment, as well as any applicable
schedules.

 

(m)                               Requests
for Disbursement.  All disbursements of Award
proceeds shall be subject to receipt by the IDED of requests for disbursement,
in form and content acceptable to IDED, submitted by the Business.  All requests shall include documentation of
costs that have been paid or costs to be paid immediately upon receipt of Award
proceeds.

 

(n)                                 Funding
Agreements Disbursement Requirements.  Satisfaction of all
disbursement requirements outlined in the specific program Funding Agreements.

 

5.2                                 Prior Costs.  No expenditures made prior to the Award Date
may be included as Project costs.  This
restriction applies to the direct financial assistance portions of this Award,
not the tax credit benefits included in this Award.

 

5.3                                 Cost Variation.  In the event that the total Project cost is
less than the amount specified in the Exhibit C, the Funding Agreements
shall be reduced at the same ratio to the total Project cost reduction as the
ratio of the Funding Agreement amount to the total amount of funds provided by
the Business and all funding sources requiring a proportional reduction of
their financial contribution to the Project. 
Any disbursed excess above the reduced IDED participation amount shall
be returned immediately to IDED.

 

5.4                                 Suspension of
Disbursement.  Upon the
occurrence of an Event of Default (as defined in this Master Contract or any of
the Funding Agreements) by the Business, the IDED may suspend payments and tax
credit program benefits to the Business until such time as the default has been
cured to IDED’s satisfaction. 
Notwithstanding anything to the contrary in this Master Contract or the
Funding Agreements, upon a termination of this Master Contract on account of an
Event of Default by the Business, Business will no longer have the right to
receive any disbursements or any tax credit program benefits after the
effective date of default.  All Award
funds may also be suspended, in IDED’s sole discretion, in the event the
Business experiences a layoff within the state of Iowa or closes any of its
Iowa facilities.

 

5.5                                 Investment of
Award Proceeds.

 

(a)                                  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.

 

(b)                                 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. 
Within ten (10) days of receipt of a written request from IDEA
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.

 

5

 

ARTICLE 6

SECURITY;
CROSS-COLLATERALIZATION

 

The
Business shall execute in favor of the IDED all security agreements, financing
statements, mortgages, personal and/or corporate guarantees (the “Security Document”)  as required by
the IDED.

 

6.1                                 Security.  This Award shall be secured by:  None required (the “Secured Property”)]

 

6.2                                 Value of
Collateral.  The value,
as reasonably determined by IDED, of the Secured Property shall meet or exceed
the amount of Award funds disbursed.

 

6.3                                 Additional or
Substitute Collateral.  In
case of a decline in the market value of the Secured Property, or any part
thereof, IDED may require that additional or substitute collateral of
quality and value satisfactory to IDED be pledged as Secured Property for this
Award.  The Business shall provide such
additional or substitute collateral Secured Property within 20 days of the date
of the request for additional or substitute collateral to secure this Award in
an amount equal to or greater than the amount of outstanding Award funds.

 

ARTICLE 7

REPRESENTATIONS AND
WARRANTIES

 

The
Business represents and warrants to IDED as follows:

 

7.1                                 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.

 

7.2                                 Authority and
Validity of Obligations.  The
Business has full right and authority to enter into this Master Contract and
the Funding Agreement and to make the borrowings herein provided for.  The person signing this Master Contract and
the Funding Agreements has full authority to:

 

(a)                                  sign this
Master Contract and the Funding Agreements, and

 

(b)                                 issue
Promissory Notes on behalf of the Business, and

 

(c)                                  secure Business’s
obligations under this Master Contract and the Funding Agreements, and

 

(d)                                 perform each
and all of the obligations under the Master Contract and its Funding Agreement.

 

The
Master Contract and Funding Agreement 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 Master
Contract, the Funding Agreements and 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 

 

6

 

or
effecting the Business or any of its properties.

 

7.3                                 Use of Proceeds.  The Business hereby agrees to use Award
proceeds only for the Project and for the activities described in Exhibit C,
Description of the Project and Award Budget, this Master Contract and the
Funding Agreements.  Use of Award
proceeds shall conform to the Budget for the Project as detailed in Exhibit C.
The Business represents that there are legally enforceable commitments in place
from the funding sources identified for the Project in Exhibit C.

 

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

 

7.5                                 Financial
Reports.  The balance sheet of the
Business furnished to IDED as of the Contract Effective Date, fairly presents
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.

 

7.6                                 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 been
materially adverse.  To the knowledge of
the Business, there has been no material adverse change in the condition of the
Business (financial or otherwise) or the business prospects of the Business.

 

7.7                                 Full
Disclosure; Business’s Financial Assistance Application.  The statements and other  information furnished to the IDED by Business
in its Financial Assistance Application and in connection with, the negotiation
of this Master Contract and the Funding Agreements 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.

 

7.8                                 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 Master Contract, “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.

 

7.9                                 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, in each case where the failure to obtain or maintain
the same could reasonably be expected to have a material adverse effect.  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.

 

7.10                           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.

 

7

 

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

 

7.12                           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 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.

 

7.13                           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.

 

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

 

7.15                           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.

 

7.16                           Effective Date
of Representations and Warranties.  The warranties and representations of this Article are
made as of the Contract Effective Date 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 8

COVENANTS

 

The
Business agrees that, for the duration of this Master Contract and the Funding
Agreements:

 

8.1                                 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 affect all licenses, permits, franchises, approvals, patents, trademarks,
trade names, trade styles, copyrights and other proprietary rights necessary to
the proper conduct of its respective business.

 

8

 

8.2                                 Job Obligations.

 

(a)                                  Jobs
and Wages.  By the
Project Completion Date, the Business shall create/retain the number of FTE
Created Jobs, Retained Jobs, Qualifying Jobs and Non-qualifying Jobs above the Business’ Employment Base  and, if applicable, the Statewide Employment Base, and maintain the jobs through the Job Maintenance Period, all as detailed in Exhibit D. The
Business shall pay the wage rates identified in Exhibit D.

 

(b)                                 Benefits.  The Business shall provide and pay for the
eligible benefits described in Exhibit A, Business’s Financial Assistance
Application, with an Average
Benefit Value  calculated
by IDED and shown in Exhibit D. During the Contract period the Business
may adjust the benefit package provided the Average Benefit Value is not
decreased and provided the benefit package includes eligible benefits.  For purposes of this Contract, “Eligible benefits”  means, medical and dental insurance
plans, pension and profit—sharing plans, child care services, life insurance
coverage, vision insurance plan, and disability coverage.

 

8.3                                 Performance
Obligations.  By the
Project Completion Date, Business shall complete the Project, make the total
investment pledged for the Project, and comply with all other performance
requirements described in this Master Contract and the Funding Agreements.  The Business shall promptly provide IDED with
written notice of any major changes that would impact the success of the
Project.

 

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

 

8.5                                 Taxes and
Assessments.  The
Business shall duly pay and discharge all taxes, rates, assessments, fees and
governmental charges upon or against it 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 therefore.

 

8.6                                 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.

 

8.7                                 Required
Reports.

 

(a)                                  Review
of Disbursement Requests and Reports.  The Business shall prepare, sign and submit
disbursement requests and reports as specified in this Master 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.

 

9

 

(b)                                 Reports.  The Business shall prepare, sign and submit
the following reports to the IDED throughout the Contract period:

 

 

	
  Report

  	
   

  	
  Due Date

  
	
   

  	
   

  	
   

  
	
  Mid-Year
  Status Report

  	
   

  	
  July 10th for the period ending June 30th

  
	
   

  	
   

  	
   

  
	
  End-of-Year
  Status Report Includes.

  ·             Public Return on Investment (ROI) Update

  ·             Payroll Register with all created and/or
  retained jobs highlighted and indicate the Project Jobs paying the required
  wage

  ·             “Employer’s Contribution and Payroll
  Report”

  ·             For Enterprise Zone awards, annual
  certification of compliance with the requirements of Iowa Code 15E.193, as required
  by 15E.195(6),

  	
   

  	
  January 31st for the period ending Dec. 31st

  
	
   

  	
   

  	
   

  
	
  End
  of Project Report

  Report
  content: same items as End-of-Year Report

  	
   

  	
  Within 30 days of Project Completion Date

  
	
   

  	
   

  	
   

  
	
  End
  of Job Maintenance Period Report

  Report
  Content: same items as End-of-Year Report

  	
   

  	
  Within 30 days of the end of the Job Maintenance
  Period

  

 

(c)                                  Additional
Reports, Financials as Requested by IDED.  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, or if necessary in order to meet requests from the Iowa General
Assembly, the Department of Management or the Governor’s office.  At the request of IDED, Business shall submit
its annual financial statements completed by an independent CPA, or other
financial statements including, but not limited to, income, expense, and
retained earnings statements.

 

8.8                                 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
feast annually.

 

8.9                                 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, or
sell, transfer, lease or otherwise dispose of all or any part of the Secured
Property.

 

8.10                           Formation and
Maintenance of Subsidiaries.  The Business will not form or acquire any
Subsidiary or transfer assets pledged as security for this Master Contract to
any subsidiary or affiliate without the written consent of the IDED, which
shall not be unreasonably withheld.

 

10

 

8.11                           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 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 substance or underground storage laws or regulations.

 

(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.

 

(d)                                 The Business
shall comply with IDED’s administrative rules for each program funding
source, as identified in the Funding Agreements.

 

8.12                           Use of Award
Proceeds.  The
Business will use the Award proceeds extended under this Master Contract and
the Funding Agreements solely for the purposes set forth in Exhibit C.

 

8.13                           Changes in
Business Ownership, Structure and Control.  The Business shall not materially change the
ownership, structure, or control of the Business if it would adversely affect
the Project.  This includes, but is not
limited to, entering into any merger or consolidation with any person, firm or
corporation or permitting substantial distribution, liquidation or other
disposal of Business assets directly associated with the Project.  Business shall provide IDED with advance
notice of any proposed changes in ownership, structure or control.  The materiality of the change and whether or
not the change affects the Project shall be as reasonably determined by IDED.

 

8.14                           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 Master
Contract, the Funding Agreements, or the 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 those portions of any and
all such meetings where the Project; this Master Contract or the Funding
Agreements are discussed.

 

8.15                           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 adversely impact the Project.

 

8.16                           Accounting
Records.  The Business is required to
maintain its books, records and all other evidence pertaining to this Master
Contract and it Funding Agreements 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 the State of Iowa and the Iowa Division of Criminal Investigations
at all times during the Master Contract’s and the Funding Agreements’ duration
and any extensions thereof, and for three (3) full years from the
Agreement Expiration Date.

 

11

 

8.17                           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
Master Contract or the Funding Agreements.

 

(b)                                 Sell, transfer,
convey, assign, encumber or otherwise dispose of any of the Secured Property or
the Project.

 

(c)                                  Place or permit
any restrictions, covenants or any similar limitations on the Secured Property
or the Project.

 

(d)                                 Remove from the
Project site or the State all or substantially all of the Secured Property.

 

(e)                                  Create, incur
or permit to exist any Lien of any kind on the Secured Property.

 

8.18                           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 Master Contract, unless approved in writing by IDED prior to the change.

 

8.19                           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 this Master Contract or the Funding Agreements;

 

(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 Master Contract or the Funding Agreements; 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 9

EVENTS OF DEFAULT AND REMEDIES

 

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

 

(a)                                  Nonpayment.  In the event of a missed payment under a Loan
or in the event a 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 

 

12

 

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.  Default in the observance or
performance of any covenant set forth in Article 8, 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 Master Contract.  Default in the observance or
performance of any other provision of this Master Contract; or

 

(e)                                  Noncompliance
with Funding Agreements, Cross-Default.  Default in the observance or
performance of any other provision of any of the Funding Agreements, including
Events of Default identified in any of the Funding Agreements; IDED may elect
to declare the Business in default of this Master Contract and any or all of
the Funding Agreements if there is a default under any one of the Funding
Agreements; or

 

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

 

(g)                                 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 Secured Property
pledged by Business; or

 

(h)                                 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

 

(i)                                     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 Master Contract or
the Funding Agreements; or

 

(j)                                     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
appointments or proceeding described in Article 9.1(k) below; or

 

(k)                                  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, 

 

13

 

or a proceeding described in Article 9.1(j) 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; or

 

(l)                                     Insecurity.  IDED shall in good faith deem itself insecure
and reasonably believes, after consideration of all the facts and circumstances
then existing, that the prospect of payment and satisfaction of the obligations
under this Master Contract and/or the Funding Agreements, or the performance of
or observance of the covenants in this Master Contract and/or the Funding
Agreements, is or will be materially impaired.

 

(m)                               Failure
to Submit Required Reports.  The Business fails to submit
complete reports by the required due dates as outlined in Article 8.7.

 

(n)                                 Layoffs,
Relocation, or Closure.  The Business experiences a
substantial layoff, relocates a substantial portion of its business or its
offices outside of Iowa, or closes its operations during the term of this
Contract.

 

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

 

(a)                                  terminate this
Master Contract, the Funding Agreements and all of the obligations of IDED
under this Master Contract and the Funding Agreements 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 Master Contract and the Funding
Agreements, shall be and become immediately due and payable without further
demand, presentment, protest or notice of any kind.

 

9.3                                 Default
Interest Rate.  If an Event
of Default occurs and remains uncured, a default rate of 6% shall apply to
repayment of amounts due under this Master Contract and the Funding
Agreements.  The default interest rate
shall accrue from the first date Award funds are disbursed,

 

9.4                                 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
Master Contract and the Funding Agreements.

 

9.5                                 Notice of
Default and Opportunity to Cure.  If IDED has reasonable cause to believe that
and Event of Default has occurred under this Master Contract and/or the Funding
Agreements, IDED shall issue a written Notice of Default to the Business,
setting forth the nature of the alleged 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 10

MISCELLANEOUS.

 

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

 

14

 

10.2                           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 an Award from the State of Iowa, Iowa
Department of Economic Development.

 

10.3                           Choice of Law
and Forum.

 

(a)                                  In the event
any proceeding of a quasi-judicial or judicial nature is commenced in
connection with this Master Contract or the Funding Agreements, 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.

 

10.4                           Governing Law.  This Master Contract and the Funding
Agreements 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.

 

10.5                           Master
Contract/Funding Agreement Amendments.  Neither this Master Contract nor any
documents incorporated by reference in connection with this Master Contract,
including the Funding Agreements, may be changed, waived, discharged or
terminated orally, but only as provided below:

 

(a)                                  Writing
required. 
The Master Contract and the Funding Agreements may only be amended if
done so in writing and signed by the Business and IDED; and for those Funding
Agreements in which the Community is a signatory, by the Community, the
Business and IDED. Examples of situations requiring an amendment include, but
are not limited to, time extensions, budget revisions, and significant
alterations of existing activities or beneficiaries.  No amendment will be valid until approved in
writing by IDED.

 

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

 

10.6                           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

Dr. Charles
Link, President and CEO

2901
South Loop Drive, Suite 3900

Ames, IA
50010

 

15

 

Telephone:              515-296-3530

Facsimile:                 515-296-3556

 

To
the IDED at:

Iowa
Department of Economic Development

Business
Services

200
East Grand Avenue

Des
Moines, Iowa 50309

Attention:
Mike Johansen, Business Services Project Manager

 

E-mail:  mike,johansen@iowalifechanging.com

Telephone:              515/ 242-4870

Facsimile:                 515/ 242-4832

 

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.

 

10.7                           Headings.  Article headings used in this Master
Contract and the Funding Agreements are for convenience of reference only and
are not a part of this Master Contract or the Funding Agreements for any other
purpose.

 

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

 

10.9                           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 or under the Funding Agreements 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.

 

10.10                     Counterparts.  This Master 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.

 

10.11                     Survival of
Representations.  All
representations and warranties made herein or in any other Master
Contract/Funding Agreement document or in certificates given pursuant hereto or
thereto shall survive the execution and delivery of this Master Contract and
the Funding Agreements and the other Master Contract/Funding Agreement
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 obligations or liabilities
under this Master Contract and the Funding Agreements have been satisfied.

 

10.12                     Severability of
Provisions.  Any
provision of this Master Contract or the Funding Agreements, which is
unenforceable in any jurisdiction, shall, as to such jurisdiction, be
ineffective to the 

 

16

 

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 Master Contract and or
the Funding Agreements or any other Master 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 Master Contract and
the Funding Agreements and any other Master 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 Master Contract or the Funding Agreements or any other Master
Contract document invalid or unenforceable.

 

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

 

10.14                     Termination.  This Master Contract and any of the Funding
Agreements can be terminated upon mutual, written agreement of the Business and
IDED and, for amendments to Funding Agreements to which the Community is a
signatory, the Community.

 

10.15                     Integration.  This Master Contract and the Funding
Agreements 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 Master Contract and the Funding Agreements, 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 Master Contract and its Funding
Agreement.

 

17

 

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 save entered into
this Master Contract and have caused their duly authorized representatives to
execute this Master Contract, effective as of the latest date stated below (the
“Contract Effective Date”).

 

 

	
  FOR THE IOWA DEPARTMENT OF
  ECONOMIC DEVELOPMENT:

  
	
   

  
	
   

  
	
  BY:

  	
  /s/
  Vincent C. Lintz, Deputy Director

  	
   

  
	
   

  	
  Vincent
  C. Lintz, Deputy Director

  
	
   

  	
   

  
	
   

  	
  /s/
  9/20/07

  	
   

  
	
   

  	
  Date

  
	
   

  	
   

  
	
   

  	
   

  
	
  FOR THE BUSINESS:

  
	
   

  
	
   

  
	
  BY:

  	
  /s/
  Nicholas N. Vahanian

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
  Nicholas
  Nuron Vahanian M.D., Chief Medical Operations Officer

  
	
   

  	
  Typed
  name and Title

  
	
   

  	
   

  
	
   

  	
  /s/
  9/24/07

  	
   

  
	
   

  	
  Date

  

 

18

 

LIST OF EXHIBITS

 

	
  Exhibit A
  -

  	
  Business’s
  Financial Assistance Application (on file with IDED), Application # 06-HQJC-017

  
	
   

  	
   

  
	
  Exhibit B
  -

  	
  Funding
  Agreements B5-HQJCP Funding Agreement

  
	
   

  	
   

  
	
  Exhibit C
  -

  	
  Description
  of the Project and Award Budget

  
	
   

  	
   

  
	
  Exhibit D
  -

  	
  Job
  Obligations

  

 

19

 

ATTACHMENT B

 

 

	
  

  	
   

  
	
   

  
	
   

  
	
  Mary Lawyer, Acting Director

  
	
  Iowa Department of Economic Development

  
	
   

  
	
   

  
	
   

  

 

Application
for Financial Assistance

Section A
— Applicant & Project Information

 

Business
Development Division

Iowa
Department of Economic Development

200
East Grand Avenue

Des
Moines, Iowa 50309

www.iowalifechanging.com

 

7/20/2005

 

 

Instructions

 

1.                                       All applicants
shall complete Section A of the Application for Financial Assistance and
attach only those section(s) for the program(s) to which the
applicant is applying,

 

	
  Program

  	
   

  	
  Download and Complete

  
	
   

  	
   

  	
   

  
	
  Community
  Economic Bettermeant Account (CEBA)

  	
   

  	
  Section B

  
	
   

  	
   

  	
   

  
	
  Enterprise
  Zone Program (EZ)

  	
   

  	
  Section C

  
	
   

  	
   

  	
   

  
	
  High
  Quality Job Creation Program (HQJC)

  	
   

  	
  Section D

  
	
   

  	
   

  	
   

  
	
  Entrepreneurial
  Ventures Assistance Program (EVA)

  	
   

  	
  Section E

  
	
   

  	
   

  	
   

  
	
  Value
  Added Agricultural Products & Processes Financial Assistance Program
  (VAAPFAP)

  	
   

  	
  Section F

  
	
   

  	
   

  	
   

  
	
  Economic
  Development Set-Aside Program (EDSA)

  	
   

  	
  Section G

  

 

2.                                       Please visit
the IDED Web site,
http://www.lowalifechanging.com/applications/bus_dev/index.html or contact IDED
at (515) 242-4819 to see if this version of the application is still current.

 

3.                                       Before filling
out this application form, please read all applicable sections of the 2005 Iowa
Code and Iowa Administrative 

Code (rules). http://www4.legis.state.ia.us/lAChtml/261.htm

 

4.                                       Only typed
or computer-generated applications will be accepted and reviewed. Any material change to the format, 

questions, or wording of questions presented in this application, will render
the application invalid and it will not be 

accepted.

 

5.                                       Complete the
applicable sections of the application fully; if questions are left unanswered
or required attachments are not submitted, an explanation must be included.

 

6.                                       Use clear and
concise language. Attachments should only be used when requested or as
supporting documentation.

 

7.                                       Any inaccurate
information of a significant nature may disqualify the application from
consideration.

 

8.                                       Upon completion
of the application, please submit the following to the Business Finance Team at
IDED:

 

·                  The original, signed application form and ail
required attachments

·                  One copy of the application form and all
required attachments from which additional copies can easily be made.

 

If
electronic copies of the application and required attachments are available,
please e-mail these documents to businessfinance@lowalifechanging.com in addition
to submitting the original plus one copy.

 

Business
Finance Team

Iowa
Department of Economic Development

200
East Grand Avenue

Des
Moines IA 50309

 

Application
Due Dates

 

	
  IDED Board Meeting

  	
   

  	
  Application Due Date

  
	
  July 21,
  2005

  	
   

  	
  June 27,
  2005

  
	
  August 18,
  2005

  	
   

  	
  July 25,
  2005

  
	
  September 15,
  2005

  	
   

  	
  August 22,
  2005

  
	
  October 20,
  2005

  	
   

  	
  September 26,
  2005

  
	
  November 17,
  2005

  	
   

  	
  October 24,
  2005

  
	
  December 15,
  2005

  	
   

  	
  November 21,
  2005

  

 

2

 

*
EVA applications will be acted upon every other month starting in March.

 

Public
Records Policies

 

Information
Submitted to IDED. The Iowa Department of Economic Development (IDED)
is subject to the Open Records law (Iowa Code, Chapter 22). Treatment of
information submitted to IDED in this application is governed by the provisions
of the Open Records law. All public records are available for public
inspection. Some public records are considered confidential and will not be
disclosed to the public unless ordered by a court, the lawful custodian of the
record, or by another person duly authorized to release the information.

 

Confidential
Records. IDED automatically treats the following records as
confidential and they are withheld from public disclosure:

 

·      Tax Records

·      Quarterly Iowa Employer’s Contribution and Payroll Report prepared for the
Iowa Workforce Development Department

·      Payroll Registers

·      Business Financial
Statements and Projections

·      Personal Financial
Statements

 

Other
information supplied to IDED as part of this application may be treated as
confidential under Iowa Code section 22.7. Following are the classifications of
records which are recognized as confidential under Iowa law and which are most
frequently applicable to business information submitted to IDED:

 

·                  Trade secrets [Iowa Code §22.7(3)]

·                  Reports to governmental agencies which, if
released, would give advantage to competitors and serve no public purpose.
[Iowa Code §22.7(6)]

·                  Information on an industrial prospect with
which the IDED Is currently negotiating. [Iowa Code §22.7(8)]

·                  Communications not required by law, rule or
regulation made to IDED by persons outside the government to the extent that
IDED could reasonably believe that those persons would be discouraged from
making them to the Department if they were made available for general public
examination. [Iowa Code §22.7(18)]

 

Information
supplied to IDED as part of this application that is material to the
application and/or the state program to which the applicant is applying
including, but not limited to the number and type of jobs to be created, wages
for those jobs, employee benefit information, and project budget, are
considered open records and will not be treated as confidential.

 

Additional
Information Available. Copies of Iowa’s Open Record law and IDED’s
administrative rules relating to public records are available from the
Department upon request or at
http://www.iowalifechanging.com/downloads/chap169openrecords.doc.

 

3

 

Applicant
Information

 

1.                                       Name of
Business: NewLink Genetics Corporation

Address:
2901 South Loop Drive, Suite 3900

City,
State & Zip Code: Ames, IA, 50010

Contact Person: Dr. Charles Link, Jr.              Title:
President and CEO

Phone:  (515) 296-3530     Fax:  (515) 296-3556       Email:  clink@linkp.com

 

2.                                       SIC or NAICS
Code:

 

3.                                       Federal ID
Number:

Does the Business file a consolidated tax return under a different tax
ID number?        ̈  Yes       x  No

If yes, please also provide that tax ID number:

 

4.                                       Is the contact
person listed above authorized to obligate the Business?      x      Yes          ̈  No

If
no, please provide the name and title of a company officer authorized to
obligate the Business:

 

Dr. Charles
Link, President and CEO

 

5.                                       If the
application was prepared by someone other than the contact person listed above,
please complete the following:

 

Name:  David Maahs       Title:
Executive Director

Organization:
Ames Economic Development Commission

Address:
1601 Golden Aspen Drive, Suite 110

City,
State, & ZIP Code: Ames, IA 50010

 

Phone:
515.232.2310    Fax: 515.232.6716       Email:
dmaahs@ameschamber.com

 

Sponsor
Information

 

Please
review the following table to determine who needs to sponsor this application.
Depending on the programs being applied for, more than one sponsor may be
necessary.

 

	
  Program

  	
   

  	
  Acceptable Sponsor

  
	
  CEBA

  	
   

  	
  City
  or County or Community College in which the Project Site is Located

  
	
  EZ

  	
   

  	
  Local
  Enterprise Zone Commission

  
	
  HQJC

  	
   

  	
  City
  or County in which the Project Site is Located

  
	
  EVA

  	
   

  	
  City
  or County in which the Project Site is Located; Local Development Entity;
  John Pappajohn Entrepreneurial Center; a Small Business Development Center;
  Business Accelerator; or similar entity

  
	
  VAAPFAP

  	
   

  	
  City
  or County in which the Project Site is Located or Local Development
  Entity

  
	
  EDSA

  	
   

  	
  City
  or County in which the Project Site is Located

  

 

1.                                       Sponsor
Organization: City of Ames

Official Contact (e.g. Mayor, Chairperson, etc.): Ted Tedesco                Title:
Mayor

Address:
515 Clark Avenue

City,
State & ZIP Code: Ames, IA 50010

Phone:515.239.5105         Fax:             E-mail:

 

2.                                       If IDED needs
to contact the sponsor organization with questions, should we contact the
person listed above?

 ̈  Yes               x  No, please contact the following person:

 

4

 

Name:
Duane Pitcher          Title: Finance
Director, City of Ames

Address:
515 Clark Avenue

City,
State & ZIP Code: Ames, IA 50010

Phone:
515.239.5114          Fax:            E-mail:
dpitcher@city.ames.ia.us

 

If
necessary, please list information on additional sponsors in an attachment.

 

Certification &
Release of Information

 

I
hereby give permission to the Iowa Department of Economic Development (IDED) to
research the Business’ history, make credit checks, contact the Business’
financial institutions, insurance carriers, and perform other related
activities necessary for reasonable evaluation of this application. I also
hereby authorize the Iowa Department of Revenue to provide to IDED state tax
information pertinent to the Business’ state income tax, sales and use tax, and
state tax credits claimed.

 

I
understand that all information submitted to IDED related to this application
is subject to Iowa’s Open Record Law (Iowa Code, Chapter 22).

 

I
understand this application is subject to final approval by IDED and the
Project may not be initiated until final approval is secured. (High Quality Job
Creation Program applications may be submitted up to 12 months following the
completion of the project.)

 

I
understand that IDED reserves the right to negotiate the financial assistance.
Furthermore, I am aware that financial assistance is not available until
an agreement is executed within a reasonable time period following approval.

 

I
hereby certify that all representations, warranties, or statements made or
furnished to IDED in connection with this application are true and correct in
all material respect. I understand that it is a criminal violation under Iowa
law to engage in deception and knowingly make, or cause to be made, directly or
indirectly, a false statement in writing for the purpose of procuring economic
development assistance from a state agency or subdivision.

 

For the
Business:

 

	
  /s/
  Charles Link

  	
   

  	
   

  
	
  Signature

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
  Dr.
  Charles Link, President and CEO

  	
   

  	
   

  
	
  Name
  and Title (typed or printed)

  	
   

  	
   

  

 

For the
Sponsor(s):

 

	
  /s/
  Ted Tedesco

  	
   

  	
  /s/
  Nov 4, 2005

  
	
  Signature

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
  Mayor
  Ted Tedesco, City of Ames

  	
   

  	
   

  
	
  Name
  and Title (typed or printed)

  	
   

  	
   

  

 

Please
use the following if more than one sponsor is required. (For example, use this
if a signature from the local Enterprise Zone Commission is required in
addition to the signature from the Mayor of the sponsoring city.)

 

5

 

	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name
  and Title (typed or printed)

  	
   

  	
   

  

 

IDED
will not provide assistance in situations where it is determined that any
representation, warranty, or statement made in connection with this application
is incorrect, false, misleading or erroneous in any material respect. If
assistance has already been provided prior to discovery of the incorrect,
false, or misleading representation, IDED may initiate legal action to
recover incentives and assistance awarded to the Business.

 

6

 

Protect
Information

 

1.             Provide a brief description
and history of the Business. Include information about the Business’ products
or services and its markets and/or customers.

 

NewLink
Genetics Corporation is a biopharmaceutical company developing novel drugs and
functional genomics solutions with a primary focus on cancer.

 

The
successful completion of the Human Genome Project signals a new age in medical
discovery centered around protein research. The rapidly growing knowledge base
of the human genome provides an unprecedented opportunity to launch a
revolutionary paradigm for drug discovery based on protein analysis.

 

NewLink
remains steadfast in its primary focus to take novel treatments and diagnostics
through the clinical trials process and bringing products to market. The
company is currently conducting Phase I/II clinical trials with its proprietary
HyperAcuteTM vaccine technology. The Food and Drug Administration has accepted
NewLink’s investigational New Drug applications for the HyperAcuteTM vaccine
technology allowing us to proceed with clinical trials treating patients with
advanced lung cancer, breast cancer, prostate cancer, pancreatic cancer, and
malignant melanoma. The company’s lung, breast, and prostate vaccine trials are
currently enrolling patients at various trial centers.

 

2.             Business Structure:

	
   ̈ Cooperative

  	
   

  	
  x Corporation

  	
   

  	
   ̈ Limited
  Liability Company

  	
   

  	
   ̈ Not for
  Profit

  
	
   ̈ Partnership

  	
   

  	
   ̈
  S-Corporation

  	
   

  	
   ̈ Sole
  Proprietorship

  	
   

  	
   

  

 

3.             Identify the Business’
owners.

 

More
than 150 shareholders

 

4.             List the Business’ Iowa
Locations and the Current Number of Employees at each Location.

 

34
employees in Ames, Iowa

 

5.             What is the
Business’ worldwide employment? (Please include employees of parent company,
subsidiaries, and other affiliated entities in this figure.)

 

41
employees worldwide, with employees located in Chicago, Maryland, Pennsylvania,
and China.

 

6.     Briefly
describe the proposed project for which assistance is being sought. (Include
project timeline with dates, facility size, infrastructure improvements,
proposed products/services, any new markets, etc.)

 

The
company plans to buy or have options on approximately 20 acres of land at the
ISU Research Park.  NewLink Genetics
plans to develop a campus for its operations at the ISU Research Park.  Over the next five years, the company plans
to construction two facilities for its expanding manufacturing, office and R &
D operations and for its affiliated companies. 
The company plans to begin construction in the fall/winter of 2005 a
25,000 to 28,000

 

7

 

sq.
ft. building.  Anticipated completion date
is the fall of 2006.  In 2010, the
company anticipates to begin construction on an additional 25,000 sq. ft.
building.

 

7.             Project
Address:  Lot 4. Phase Il Development
of the ISU Research Park.  The company
plans to have an option to buy the two adjacent parcels (lots 5 and 6).

 

8.             Type of
Business Project:  Pharmaceutical

	
   ̈ Startup

  	
   

  	
  x Expansion of
  Iowa Company

  	
   ̈ New Location
  in Iowa

  

 

8

 

 ̈  Relocation from another State

 

9.             Please identify the
management at the project location and his/her/their experience.

 

Check business plan for resumes of top personnel

 

10.           Has any part of
the project started?                  ̈  Yes                   x No

If
yes, please explain.

 

9

 

11.           Project Budget:

 

AMOUNT BUDGETED

 

	
  Use of Funds

  	
   

  	
  Cost

  	
   

  	
  Source A

  	
   

  	
  Source B

  	
   

  	
  Source C

  	
   

  	
  Source D

  	
   

  	
  Source E

  	
   

  	
  Source F

  	
   

  	
  Source G

  	
   

  	
  Source H

  	
   

  
	
  Land Acquisition

  	
   

  	
  $

  	
  580,000

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
  580,000

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
  Site Preparation

  	
   

  	
  $

  	
  200,000

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
  200,000

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
  Building Acquisition

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
  Building Construction

  	
   

  	
  $

  	
  8,000,000

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
  8,000,000

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
  Building Remodeling

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
  Mfg. Machinery & Equip.

  	
   

  	
  $

  	
  2,000,000

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
  200,000

  	
   

  	
  $

  	
  1,600,000

  	
   

  	
  $

  	
  200,000

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
  Other Machinery & Equip.

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
  Racking, Shelving, Etc.(1)

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
  Computer Hardware

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
  Computer Software

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
  Furniture & Fixtures

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
  Working Capital

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
  Research & Development

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
  Job Training

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  30,780,000

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
  200,000

  	
   

  	
  $

  	
  30,380,000

  	
   

  	
  $

  	
  200,000

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  

 

(1) 
Racking, Shelving and Conveyor Equipment used in Warehouse or Distribution
Center Projects

 

Does
the Business plan to lease the facility? 
x  Yes     ̈  No   
If yes, please provide the Annual Base Rent Payment (lease payment minus
property taxes, insurance, and operating/maintenance expenses) and the length
of the lease agreement.

 

PROPOSED FINANCING

 

	
  Source of Funds

  (List tax benefits separately; not as a

  source of funds)

  	
   

  	
  Amount

  	
   

  	
  Form of Funds

  (Loan, Grant, In-Kind Donation, etc.)

  	
   

  	
  Rate

  	
   

  	
  Term

  	
   

  	
  Conditions / Additional Information

  Include when funds will be disbursed; if loan,

  whether payments are a level term, balloon, etc.

  	
   

  
	
  Source
  A: IDED

  	
   

  	
  $

  	
   

  	
   

  	
  Prior
  state funding from Iowa Values Fund

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Source
  B: Other State (e.g. Community College, DOT, etc.)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Source
  C: Local Government

  	
   

  	
  $

  	
  200,000

  	
   

  	
  Forgivable
  loan

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Source
  D: Business

  	
   

  	
  $

  	
  30,380,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Source
  E: Other - AEDC

  	
   

  	
  $

  	
  200,000

  	
   

  	
  Forgivable
  loan

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Source
  F:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

10

 

	
  Source
  G:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Source
  H:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  30,780,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
													

 

Please
list below any tax benefits (e.g. Investment Tax Credit, Sales Tax Refund,
R&D Tax Credit, New Jobs Tax Credit, Property Tax Exemption/Abatement, etc.)
that the Business expects to receive and included the estimated value of each
tax benefit:

 

11

 

12.           Employee Benefits: Please
identify all employee benefits provided by and paid for (in full or in
part) by the Business.

 

	
  Employee

  Benefits

  Provided by the

  	
   

  	
  Total Annual Cost 

  (show on a per 

  employee basis)

  	
   

  	
  Portion of Total 

  Annual Cost Paid 

  by the Business*

  	
   

  	
  Plan Provisions 

  (Include deductibles, coinsurance %,

  office visit co-payments, annual out-of-

  
	
  Business

  	
   

  	
  Employee

  	
   

  	
  Family

  	
   

  	
  Employee

  	
   

  	
  Family

  	
   

  	
  pocket maximums, face amounts, etc.)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Medical/Health Insurance

  	
   

  	
  $

  	
  3,000

  	
   

  	
  $

  	
  9,840

  	
   

  	
  92

  	
  %

  	
  85

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dental Insurance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Voluntary,
  paid by employee

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vision Insurance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Part of
  Medial/Health Insurance Plan

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Life Insurance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Voluntary,
  paid by employee

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Short Term Disability (STD)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Voluntary,
  paid by employee

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long Term Disability (LTD)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Voluntary,
  paid by employee

  
													

 

*
If the business’s plan is self-insured, please use the amount paid by the
business for costs associated with employee and family coverage during the past
three years and then, determine the business’ average annual contribution per
employee for that three year period.

 

Does
the Business offer a pension plan, 401(k) plan, and/or retirement-plan?          x           Yes          ̈            No

If
yes, please indicate the amount contributed on a per employee basis by the
Business to the plan.  For 401(k) plans,
please provide information on the company match and indicate the average annual
match per employee (show average as a percentage of salary).

 

Need
amount contributed per employee

 

Does the Business offer a profit-sharing plan?                               ̈   Yes                                  x    No

If
yes, please indicate total amount paid out each year for the past three years
and then, determine the average annual bonus or contribution per employee for
that three year period.

 

Does the Business offer child care services?                                   ̈    Yes                                 x    No

Child
care services include child care services on-site at the facility In which the
project will occur or off-site child care subsidized by the business at the
rate of 50% or more of the costs incurred by an employee.

 

12

 

13.                                 Identify the Business’
competitors. If any of these competitors have Iowa locations, please explain
the nature of the competition (e.g. competitive business segment, estimated
market share, etc.) and explain what impact the proposed, project may have
on the Iowa competitor.

 

All
of the company’s competitors are located outside of Iowa. Competitors are
Cellgenesys, Cancervax and Dendreon.

 

14.                                 Will any of the current Iowa
employees lose their jobs if this project does not proceed in Iowa?

x    Yes
           ̈    No

If
yes, please explain why and identify those jobs as “retained jobs” in the
following question.

 

Company
needs to construct facilities for the continued growth of its operations in
Iowa and to continue its research and development activities, including
clinical trials. The company currently has approximately 35 employees at its’
offices in the ISU Research Park, with an average annual salary of $40,000.

 

13

 

15.           List the jobs that will be
retained and/or created as the result of this project.  (A retained job is an existing job that would
be eliminated or moved to another state if the project does not proceed
in Iowa.)  For retained jobs, include the
current hourly wage rate.  For
jobs to be created, including the starting hourly wage rate.

 

	
  Job Title

  	
   

  	
  Skills, Education, or

  Experience Required

  	
   

  	
  Number of

  Jobs

  	
   

  	
  Retained (R) or

  Created (C)

  	
   

  	
  Starting or Current Hourly

  Wage Rate

  
	
  Year
  1 of the Project

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Laboratory
  Technician

  	
   

  	
   

  	
   

  	
  5

  	
   

  	
  C

  	
   

  	
  $25,000
  to $35,000

  
	
  Senior
  Research Scientist

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  C

  	
   

  	
  $50,000
  to $80,000

  
	
  Research
  Scientist

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
  C

  	
   

  	
  $40,000
  to $50,000

  
	
  Office
  Assistant

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  C

  	
   

  	
  $25,000
  to $35,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Year 1 Subtotal

  	
   

  	
  11

  	
   

  	
   

  	
   

  	
   

  
	
  Year
  2 of the Project

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Laboratory
  Technician

  	
   

  	
   

  	
   

  	
  8

  	
   

  	
  C

  	
   

  	
  $25,000
  to $35,000

  
	
  Senior
  Research Scientist

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  C

  	
   

  	
  $50,000
  to $80,000

  
	
  Research
  Scientist

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  C

  	
   

  	
  $40,000
  to $50,000

  
	
  Office
  Assistant

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  C

  	
   

  	
  $25,000
  to $35,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Year 2 Subtotal

  	
   

  	
  13

  	
   

  	
   

  	
   

  	
   

  
	
  Year
  3 of the Project

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Laboratory
  Technician

  	
   

  	
   

  	
   

  	
  15

  	
   

  	
  C

  	
   

  	
  $25,000
  to $35,000

  
	
  Senior
  Research Scientist

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
  C

  	
   

  	
  $50,000
  to $80,000

  
	
  Research
  Scientist

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
  C

  	
   

  	
  $40,000
  to $50,000

  
	
  Office
  Assistant

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
  C

  	
   

  	
  $25,000
  to $35,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Year 3 Subtotal

  	
   

  	
  21

  	
   

  	
   

  	
   

  	
   

  

 

Total
Number of Retained jobs:         36

 

Total
Number of Created jobs:           45

 

14

 

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

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

 

One
of the economic development goals for the community of Ames is to become a
leading biotechnology center. The growth of NewLink Genetics in to a major
pharmaceutical firm will greatly assist the community in achieving this goal.

 

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 the result of the proposed project;

 

The
annual payroll of $3.8 million from the jobs created and retained will provide
a significant boost to the local economy. In addition, the Ames Community
School District has been losing enrollment over the last few years. These new
jobs will assist the community in stabilizing the school district’s enrollment
levels.

 

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

 

Without
additional manufacturing capacity, the company can not produce enough drugs for
its phase II and phase III clinical trials.

 

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

 

The
new facilities will provide a state of the art manufacturing setting for the
company utilizing the latest and most efficient processes for drug
manufacturing.

 

17.           Is the Business
actively considering locations outside of Iowa?                 ̈    Yes                 x    No

If
yes, where and what assistance is being offered?

 

18.                                 There are three general
justifiable reasons for assistance. Check the box next to the reason why
assistance is needed to complete this project

 

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 federal funds
are needed to fill the gap.

 

 ̈            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.

 

 ̈            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 a 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.

 

15

 

What
measures were analyzed to determine the amount and form of assistance needed?

 

Estimated
cost to bring a drug to market is over $200 million, producing a significant
financing gap for the company. The state and local assistance will enable the
company to stretch its private equity as its drugs move through clinical
trials.

 

19.           What amount of
state assistance is requested based on the above-identified need?  $

 

16

 

What
type/form of assistance is preferred (e.g. loans, forgivable loans, tax
incentives, etc.)?

 

The
company previously received an Iowa Values grant of $6 million. The company
research and development activities have progressed far enough that the company
has achieved the necessary milestones to draw down $4 million of its Iowa
Values fund award.

 

20.           Please indicate what program(s) the
Business is applying to and download and submit those applicable sections:

 

	
   ̈

  	
  CEBA

  	
   

  	
  (Complete
  Section B)

  
	
   ̈

  	
  EZ

  	
   

  	
  (Complete
  Section C)

  
	
  x

  	
  HQJC

  	
   

  	
  (Complete
  Section D)

  
	
   ̈

  	
  EVA

  	
   

  	
  (Complete
  Section E)

  
	
   ̈

  	
  VAAPFAP

  	
   

  	
  (Complete
  Section F)

  
	
   ̈

  	
  ESA

  	
   

  	
  (Complete
  Section G)

  

 

The
Department reserves the right to review this application and determine, based
on the proposed project and available program funds, which financial assistance
program(s) is best suited for the Business’ project. The actual program(s) utilized
may vary from the programs indicated above.

 

17

 

21.           Return on Investment
Information — Business Taxes

 

IDED is
required to calculate the return on state and local government investments in
this project. Data from other parts of the application will be combined with
the estimates requested below to calculate the required return on investment
information.

 

Instructions
for Question 21

·                  IDED is asking for a best estimate on
the increase in taxes associated with this project.

 

·                  Estimates should only include the expected increase
in tax liability resulting from this project.

 

·                  At minimum, IDED needs estimates for the
first three years of the project.

 

·                  Show data as if no tax
abatements or tax credits awarded for this project were taken.

 

·                  For partnership forms of ownership (e.g.
limited partnerships, s-corporations, LLC, etc.), please estimate the
partners’ increase in Iowa tax liability due to this project.

 

·                  Sales and use taxes refer to the taxes paid
on materials, etc. that the Business purchases, not taxes you
collect from safes to your customers.

 

·                  Applicants will not be held to these numbers
with respect to any award from or contract with IDED.

 

·                  This page of the application will
automatically be treated as confidential.

 

Increase in Tax Collections Associated with this
Project

 

	
  State Business Taxes

  	
   

  	
  Year 1

  	
   

  	
  Year 2

  	
   

  	
  Year 3

  	
   

  	
  Year 4

  	
   

  	
  Year 5

  	
   

  
	
  State Corporate Income Tax*

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
  State Business Sales and Use Tax

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  

 

*   Insurance Companies: Provide State Insurance
Premium Tax

 

	
  Local Business Taxes

  	
   

  	
  Year 1

  	
   

  	
  Year 2

  	
   

  	
  Year 3

  	
   

  	
  Year 4

  	
   

  	
  Year 5

  	
   

  
	
  Local Real Estate Property Tax

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
  55,080

  	
   

  
	
  Local Option Sales Tax

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  
																	

 

18

 

Attachments

 

Please
attach the following documents:

 

A1           Business Plan

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,

·      descriptions 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.)

 

A2                                Copies of the
Business’ Quarterly Iowa Employer’s Contribution and Payroll Report Summary Page (Page 1)
for the past year and a copy of the most recent payroll report for one
pay period.

 

A3                                Affidavit that
states the Business has not, within the last five years, violated state or
federal statutes, rules, and regulations, including environmental and worker
safety regulations, or, if such violations have occurred, that there were
mitigating circumstances or such violations did not seriously affect public
health or safety or the environment.

 

A4                                Financial Information
(Existing Businesses Only)

·      Profit and loss statements
and balance sheets for past three year-ends;

·      Current YTD profit and loss
statement and balance sheet;

·      Schedule of aged accounts
receivable;

·      Schedule of aged accounts
payable; and

·      Schedule of other debts.

 

Application
Checklist

 

19

 

	
  

  	
   

   

   

   

   

  Application Checklist

  

 

For
each section the Business is required to submit, please indicate with a ‘‘ that items
needed for that section are included when submitting the application to IDED.

If
an item listed is not included, please indicate in the corresponding box the
date on which IDED can expect to receive it or explain in the space provided
below why it has not been included:

 

	
   

  	
   

  	
  Section A

  	
   

  	
  Section B

  CEBA

  	
   

  	
  Section C 

  EZ

  	
   

  	
  Section D

  HCJC

  	
   

  	
  Section

  E

  EVA

  	
   

  	
  Section F

  VAAPFAP

  	
   

  	
  Section

  G

  EDSA

  
	
  Original plus 1 Copy

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
  Signed by the Business

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
  Signed by the Sponsor(s)

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
  Business Plan w/3-year Projections

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
  Quarterly Employer’s Contribution and Payroll
  Reports

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
  Current Payroll Report

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
  Affidavit re: Violations

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
  P/L statements & Balance Sheets (3 years)

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
  Current YTD Financials

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
  Aged Accounts Receivables

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
  Aged Accounts Payable

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
  Schedule of Other Debts

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
  Resolution from Sponsor

  	
   

  	
  N/A

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
  Legal Description of Project Site

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
  Map

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Meeting / Public Hearing Notice

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
   

  

 

1

 

	
  Meeting Minutes

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
   

  
	
  Technical Assistance Budget

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
   

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
  Bids, Quotes, & Estimates

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
   

  
	
  Employer Certification Form

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
   

  
	
  Commitment Letters

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
   

  
	
  Comm. Development & Housing Needs
  Assessment

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
   

  
	
  Assurances Page

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
   

  
	
  Applicant/Recipient Disclosure/Update form

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
   

  

 

Explanation for Items Not Included:

 

2

 

EXHIBIT B - 5

 

HQJCP FUNDING AGREEMENT

 

	
  BUSINESS

  	
   

  	
  NewLink
  Genetics Corporation

  
	
  COMMUNITY:

  	
   

  	
  City
  of Ames

  
	
   

  	
   

  	
   

  
	
  MASTER
  CONTRACT NUMBER:

  	
   

  	
  06-54

  
	
  FUNDING
  AGREEMENT NUMBER:

  	
   

  	
  06-54-HQJCP-017

  
	
   

  	
   

  	
   

  
	
  AGREEMENT
  EXPIRATION DATE:

  	
   

  	
  December 31,
  2010

  
	
   

  	
   

  	
   

  

 

THIS
HIGH QUALITY JOB CREATION PROGRAM (HQJCP) FUNDING AGREEMENT is made by and
among the IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT, 200 East Grand Avenue, Des
Moines, Iowa 50309 (“IDED”), the business identified above (“Business”),
and the community identified above (“Community”), effective as of the Contract
Effective Date stated in the Master Contract identified above.

 

WHEREAS,
the Department has found the Business’ application to be consistent with the
requirements of the Act and the administrative rules adopted by the
Department for the HQJCP — 261 Iowa Administrative Code, Chapter 68; and

 

WHEREAS,
the Business has been approved by the Department to receive certain tax
incentives and assistance; and

 

WHEREAS,
the Business has executed the Master Contract described above with the IDED
pursuant to an Award on the Award Date stated in the Master Contract to the
Business for the Project; and

 

WHEREAS,
the Master Contract specifies that for each program funding source the IDED and
the Business shall enter into a Funding Agreement; and

 

WHEREAS,
this HQJCP Funding Agreement contains additional terms and conditions for the
award of HQJCP benefits; and

 

NOW,
THEREFORE, the Business and Community accept the terms and conditions set forth
in this HQJCP Funding Agreement and the Master Contract for the funding of the
Project.  In consideration of the mutual
promises contained in the Master Contract and this HQJCP Funding Agreement and
other good and valuable consideration, it is agreed as follows:

 

1.0          Master
Contract.  Unless otherwise
specified in this HQJCP Funding Agreement, the definitions, terms, conditions,
and provisions contained in the Master Contract are applicable to this HQJCP
Funding Agreement.  The following
provisions in the Master Contract do not apply to this HQJCP Funding
Agreement:

 

	
  Article 3.1(b) –

  	
   

  	
  Definition
  of “Project Completion Date” and “Job Maintenance Period.” [The EZ program
  has different time periods for these activities.]

  
	
   

  	
   

  	
   

  
	
  Article 4.3 –

  	
   

  	
  Repayment
  obligation. [No promissory note required for tax credits.]

  

 

 

	
  Article 5.1(c) –

  	
   

  	
  Promissory
  Notes. [Execution of note is not a condition precedent to receipt of tax
  credit benefits]

  
	
   

  	
   

  	
   

  
	
  Article 5.1(g) –

  	
   

  	
  Security
  Documents. [Execution of Security Documents is not a condition precedent to
  receipt of tax credit benefits].

  
	
   

  	
   

  	
   

  
	
  Article 5.1(m) –

  	
   

  	
  Requests
  for disbursement. [Not required for tax credit program benefits.]

  
	
   

  	
   

  	
   

  
	
  Article 5.2 –

  	
   

  	
  Prior
  costs. [Not applicable to tax credit program benefits.]

  
	
   

  	
   

  	
   

  
	
  Article 5.3 –

  	
   

  	
  Cost
  variation. [Not applicable to tax credit program benefits.]

  
	
   

  	
   

  	
   

  
	
  Article 5.5 –

  	
   

  	
  Investment
  of Award Proceeds. [No proceeds in tax credit programs.]

  
	
   

  	
   

  	
   

  
	
  Article 6 –

  	
   

  	
  Security,
  Cross-collateralization. [Not applicable to tax credit program benefits.]

  
	
   

  	
   

  	
   

  
	
  Article 9.1(a) –

  	
   

  	
  Nonpayment
  as an Event of Default. (Not applicable because there are no loan payments in
  tax credit programs].

  
	
   

  	
   

  	
   

  
	
  Article 9.1(c) –

  	
   

  	
  Noncompliance
  with Security Documents as an Event of Default. [Not applicable because there
  are no Security Documents required in tax credit programs].

  
	
   

  	
   

  	
   

  
	
  Article 9.1(g)

  	
   

  	
  Lien Deficiencies as an Event of Default. [Not applicable because
  there are no Security Documents required in tax credit programs.]

  

 

2.0          Definitions.  As used in this HQJCP Funding Agreement, the
following terms shall apply:

 

2.1           Agreement Expiration Date.  Expiration of this HQJCP Funding Agreement
occurs upon the happening of one of the following events, whichever occurs
first:

 

(a)           IDED’s determination that
the Business has fully met the requirements of the HQJCP Funding Agreement,
including meeting its job creation and maintenance requirements, and IDED
closes out this HQJCP Funding Agreement.

 

(b)           An Event of Default occurs
that is not remedied within the time period allowed under the Master Contract.

 

(c)           This HQJCP Funding Agreement
is terminated upon mutual, written agreement of the Business, the Community and
IDED.

 

2.2           HQJCP.  “HQJCP” means the High Quality Job Creation
Program.  The HQJCP is authorized by 2005
Iowa Acts, House File 868.

 

2.3           HQJCP Award.  “HQJCP Award” means IDED’s approval of the
Business’s Financial Assistance Application for the Project.  This HQJCP Award authorizes the Business to
receive HQJCP Program benefits.

 

2.4           Average County Wage.  “Average County Wage” means the average the
Department calculates using the most current four quarters of wage and
employment information as provided in the Quarterly Covered Wage and Employment
Data report as provided by the Iowa department of workforce development.  Agricultural/mining and governmental employment
categories are deleted in compiling the wage information.

 

2

 

2.5           “Annual Base Rent”.  “Annual Base Rent” means the Business’ annual
lease payment minus taxes, insurance, and operating or maintenance expenses.

 

2.6           Full-time Equivalent (FTE)
Job.  “Full-time Equivalent (FTE)
Job” means the employment of one person:

 

(a)           For 8 hours per day for a
5-day, 40-hour workweek for 52 weeks per year, including paid holidays,
vacations and other paid leave, or

 

(b)           For the number of hours or
days per week, including paid holidays, vacations and other paid leave,
currently established by schedule, custom, or otherwise, as constituting a week
of full-time work for the kind of service an individual performs for an
employing unit.

 

2.7           High Quality Jobs.  “High Quality Jobs” means created jobs that,
at minimum, have a starting wage including benefits equal to or greater than $
17.31, as shown in Master Contract Exhibit D, Job Obligations.

 

2.8           Project.  “Project” means the detailed description of
the work, services, and other obligations to be performed or accomplished by
the Business and Community as described in the Master Agreement Exhibit C
(Description of Project and Award Budget) and Master Agreement Exhibit A (Business’s
Financial Assistance Application) for which the Business has been approved to
receive certain tax credit benefits.

 

2.9           Project Completion Date.  “Project Completion Date” means (1) for
new manufacturing facilities, the first date upon which the average annualized
production of finished product for the preceding ninety-day period at the
manufacturing facility operated by the Business is at least fifty percent of
the initial design capacity of the facility; or (2) for existing or
non-manufacturing facilities, the date of completion of all improvements
necessary for the start-up, location, expansion or modernization of
business.  This definition of “Project
Completion Date” is only used for purposes of claiming the refund of sales,
service and use taxes or the corporate tax credit for certain sales taxes paid,
if applicable.

 

2.10         “Project Jobs” means the
number of new Full-time Equivalent (FTE) Jobs created by the location or
expansion of the Business in the High Quality Job Creation Program, as shown in
Master Contract Exhibit D.

 

3.0          High
Quality Job Creation Program Benefits.

 

3.1           Benefits Available.  The following High Quality Job Creation
Program benefits are available to the Business under this HQJCP Funding
Agreement:

 

(a)           Additional Research Activities
Credit.  The
Business is eligible to claim an additional research activities credit as
provided in Iowa Code section 15,335. 
This benefit is a tax credit for increasing research activities in this
state during the period the Business is participating in the program.  The credit may equal up to six and one-half
percent (6.5%) of the State’s apportioned share of the qualifying expenditures,
up to $414,200, for increasing research activities and is in addition to the
credit authorized in Iowa Code sections 422.10 and 422.33(5).  Any tax credit in excess of the tax liability
may be refunded to the Business with interest or, at its election, credited to
its tax liability the following year.

 

3.2           Benefits Not Available.  The following High Quality Job Creation
Program benefits are not available to the Business under this agreement:

 

3

 

3.3

 

(a)           Investment Tax or insurance
Premium Tax Credit.

 

(b)           Refund Of Sales, Service And Use
Taxes Paid To Contractors Or Subcontractors.

 

(c)           Refund of Taxes Attributable to
Racks, Shelving, and Conveyor Equipment

 

(d)           Corporate tax credit for certain
sales taxes paid by third party developer

 

(e)           Value-Added Property Tax
Exemption.

 

4.0          Conditions
to Receipt of High Quality Job Creation Program Benefits.

 

The
High Quality Job Creation Program Benefits authorized under this HQJCP Funding
Agreement are available to the Business provided the Business, (and where
applicable, the Community) satisfies each of the following conditions:

 

4.1           Job Obligations.  The Business’s Job Obligations are as
detailed in Master Contract Exhibit D, “Job Obligations.’ The Business
shall create the Project Jobs within 3 years (the “Project
Creation Period’) of the Effective Date (defined in the Master
Contract).  The Business shall maintain
the Project Jobs for a period of at least two (2) years beyond the Project
Creation Period, for a total contract duration of 5 years.

 

4.2           Qualifying Investment.  Within three (3) years of the Effective
Date (as defined in the Master Agreement), the Business shall make a qualifying
Investment of $2,000,000, A “qualifying investment” means an investment in real
property including the purchase price of land and existing buildings and
structures; site preparation; improvements to real property; building
construction; long-term lease costs; and/or depreciable assets.

 

4.3           Required Elements.

 

(a)           Offer a pension or profit
sharing plan to full-time employees.

 

(b)           Produce or manufacture high
value-added goods or service or be in one of the state’s targeted Industries*:
Drugs and Pharmaceuticals

 

(c)           Invest annually no less than
1% of pretax profits from the facility located to Iowa or expanded under the
program in research and development in Iowa.

 

(d)           Have an active productivity
and safety improvement program(s) involving management and worker
participation and cooperation.  The
program(s) shall include benchmarks for gauging compliance.

 

4.4           Business Retention.  The Business shall have and maintain Project
operations contemplated by this Agreement within the Community at least through
the Agreement Expiration Date.

 

4.5           Additional Conditions.  Even though the 25,000-28,000 build-to-suit
facility is not being included in the project, NewLink Genetics will be
required to finalize the lease terms and occupy the facility by December 31,
2008.  Failure to do so will result in an
event of non-compliance and NewLink Genetics will be required to re-pay all or
a part of the benefits received through the High Quality Job Creation Program
award.

 

4

 

5.0          Events
of Default; Notice of Default; Repayment Provisions.

 

5.1           Events of Default.  The terms of the Master Contract regarding
Events of Default and Remedies govern this HQJCP Funding Agreement.

 

5.2           Notice of Default.  The following Notice of Default provisions
supersede the Notice of Default provisions specified in the Master Contract:

 

(a)           From Department.  If, through the annual certification report
or other means, the IDED has reason to believe the Business is in default of
the terms of this Agreement, the IDED will issue a written notice of default to
the Business, setting forth the nature of the default in reasonable
specificity, and providing therein a reasonable period of time, which shall not
be less than 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, A copy of any Notice of Default will also be provided to the
Community and Department of Revenue.

 

(b)           From Community.  If, through monitoring, auditing or other
means, the Community has reason to believe the Business is in default of the
terms of this Agreement, the Community will issue a written notice of default
to the Business, setting forth the nature of the default in reasonable
specificity, and providing therein a reasonable period of time, which shall not
be less than 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.  A copy of any Notice of
Default will also be provided to the IDED and Department of Revenue.

 

5.3           Repayment Provisions.  If the Business has received incentives or
assistance under the HQJCP Program and fails to meet and maintain any one of
the requirements of the HQJCP Program, the HQJCP Program Administrative Rules or
any term of this HQJCP Funding Agreement, the Business is subject to repayment
of all or a portion of the incentives and assistance that it has received, as
detailed below:

 

(a)           Job maintenance.  If the approved Business fails to maintain
the required number of created or retained jobs or both as defined in Master
Contract Exhibit D and the final award documentation, the Business shall
repay a percentage of the tax incentives and assistance that it has
received.  The repayment percentage will
be equal to the percentage of jobs that the approved Business failed to
maintain.

 

(b)           Required elements.  If the approved Business fails to meet the
four required elements stated in Article 4.4 in any one year, the Business
must meet that requirement in the following year or repay all the tax
incentives and assistance that it has received.

 

(c)           Selling, disposing, or razing of
property.  If, within
five years of purchase, the approved Business sells, disposes of, razes, or
otherwise renders unusable all or a part of the land, building, or other
existing structures far which an investment tax credit or insurance premium tax
credit was claimed, the income tax liability of the approved Business for the
year in which all or part of the property is sold, disposed of, razed, or
otherwise rendered unusable shall be increased by one of the following amounts:

 

(1)           One hundred percent of the
tax credit claimed if the property ceases to be approved for the tax credit
within one full year after being placed in service.

 

(2)           Eighty percent of the tax
credit claimed if the property ceases to be approved for the tax credit within
two full years after being placed in service.

 

5

 

(3)           Sixty percent of the tax
credit claimed if the property ceases to be approved for the tax credit within
three full years after being placed in service.

 

(4)           Forty percent of the tax
credit claimed if the property ceases to be approved for the tax credit within
four full years after being placed in service.

 

(5)           Twenty percent of the tax
credit claimed if the property ceases to be approved for the tax credit within
five full years after being placed in service.

 

(d)           Layoffs or closures.  If an approved Business experiences a layoff
within the state or closes any of its facilities within the state prior to
receiving the tax incentives and assistance, the Department may reduce or
eliminate all or a portion of the tax incentives and assistance.  If an approved Business experiences a layoff
within the state or doses any of its facilities within the state after
receiving tax incentives and assistance, the Business may be subject to
repayment of all or a portion of the tax incentives and assistance that it has
received.

 

(e)           Department of Revenue; Community
Recovery.  Once it has
been established, through the Business’ annual certification, monitoring, audit
or otherwise, that the Business is required to repay all or a portion of the
incentives received, the Department of Revenue and the Community shall collect
the amount owed.  The Community has the
authority, pursuant to the HQJCP Program, to take action to recover the value of
taxes not collected as a result of the exemption provided by the Community to
the Business.  Department of Revenue has
the authority, pursuant to the HQJCP Program, to recover the value of state
taxes or incentives provided under the HQJCP Program.  The value of state incentives provided under
the HQJCP Program includes applicable interest and penalties.

 

6.0          Final
Award Amount.

 

6.1           Submit Final Numbers Within
12 Months.  The
approved Business shall, upon satisfaction of the requirements stated in Article 4.0,
submit to the Department information on the final created jobs, including
starting wages and benefit values, and the final qualifying investment.  This submission must be in writing on the
form provided by the Department and must be received by the Department within
12 months of completion of the project and the creation of the jobs.  Upon receipt of the completed form, the
Department shall review and confirm the information and shall prepare the final
award amounts based on the final results. 
Final award amounts may still be subject to certain limitations put in
place when the initial award was made.

 

6.2           Repayment If Claimed Credits
Exceed Final Award Amount.  If,
upon receipt of the final award amount from the Department, the Department of
revenue determines that the approved Business has claimed tax incentives and
assistance in amounts that exceed the amounts stipulated in the final award,
the approved Business shall be required to repay any tax credits and refunds it
received in excess of the final award amounts. 
The Department of Revenue shall have the authority to collect the amount
to be repaid to the state including interest and penalties.

 

7.0          Incorporated
documents.  The
following documents are hereby incorporated by this reference:

 

1.                                       The Master
Contract number and its Exhibits.

 

2.                                       HQJCP Funding
Agreement Exhibit A, “Investment Tax Credit Amortization Schedule
Examples.”

 

6

 

IN
WITNESS WHEREOF, the parties have executed this HQJCP Funding Agreement:

 

 

	
  BUSINESS:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BY:

  	
  /s/
  Nicholas N. Vahanian

  	
   

  
	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Nicholas
  Vahanian M.D., Chief Medical Operations Officer

  	
   

  
	
   

  	
  Typed
  Name and Title

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  8/24/07

  	
   

  
	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  IOWA DEPARTMENT OF ECONOMIC
  DEVELOPMENT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BY:

  	
  /s/
  Vincent C. Lintz, Deputy Director

  	
   

  
	
   

  	
  Vincent
  C. Lintz, Deputy Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  9/20/07

  	
   

  
	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  COMMUNITY:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BY:

  	
  /s/
  Ann H. Campbell

  	
   

  
	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Ann
  H. Campbell, Mayor

  	
   

  
	
   

  	
  Typed
  Name and Title

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  9/18/07

  	
   

  
	
   

  	
  Date

  	
   

  

 

7

 

DESCRIPTION OF THE PROJECT AND AWARD BUDGET

(EXHIBIT C)

 

Name of Business:                   NewLink Genetics Corporation

 

Contract Number:                        06-54

 

PROJECT DESCRIPTION

 

NewLink
Genetics Corporation will develop a campus for its operations at the ISU
Research park in Ames, Iowa.  The
project involves purchases of manufacturing machinery and equipment and
research and development.  NewLink
Genetics Corp. will create 45 full-time equivalent (FTE) jobs as a result of
this project.

 

	
  Project Completion Date:

  	
  December 31, 2008

  
	
   

  	
   

  
	
  Job
  Maintenance Period:

  	
  December 31,
  2010

  

 

AWARD
BUDGET

 

	
  SOURCE OF FUNDS

  	
   

  	
  Amount

  	
   

  	
   

  	
  USE OF FUNDS

  	
   

  	
  Cost

  
	
  IDED
  Programs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HQJC Program Benefits

  	
   

  	
  *see below

  	
   

  	
   

  	
  *Mfg
  Machinery and Equipment

  	
   

  	
  $2,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Research
  and Development

  	
   

  	
  $20,000,000

  
	
  City
  of Ames

  	
   

  	
  $200,000

  	
   

  	
  Forgivable
  loan

  	
   

  	
   

  	
   

  
	
  AEDC

  	
   

  	
  $200,000

  	
   

  	
  Forgivable
  loan

  	
   

  	
   

  	
   

  
	
  NewLink
  Genetics Corp.

  	
   

  	
  $21,600,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL

  	
   

  	
  $22,000,000

  	
   

  	
   

  	
  SUBTOTAL

  	
   

  	
  $22,000,000

  
	
   

  	
   

  	
   

  	
  *included as capital investment if awarded tax credit program

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUB TOTAL

  	
   

  	
  $0

  	
   

  	
   

  	
  SUB TOTAL

  	
   

  	
  $0

  
	
  TOTAL
  ALL FUNDS

  	
   

  	
  $22,000,000

  	
   

  	
   

  	
   

  	
   

  	
  $22,000,000

  

 

	
  *HQJC
  Program Benefits

  	
   

  	
  $414,200

  	
   

  	
  (estimated
  value)

  

 

Jan. 06

 

 

AUTHORIZATION FOR RELEASE OF CONFIDENTIAL STATE TAX INFORMATION AND
CONFIDENTIAL UNEMPLOYMENT INSURANCE INFORMATION

 

The
undersigned (noted below as “Taxpayer”) is an applicant for or a recipient of
an award by the Iowa Department of Economic Development and has entered into
contract number 06-54.

 

The
undersigned hereby authorizes the Department of Revenue to provide to (Awarding
Agency) state tax information in the file pertinent to this contract or tax
credit certificate(s).  This
Authorization for Release of Confidential State Tax Information shall be valid
for all tax periods either 1) for a 3-year period following completion of the
contract or 2) for a 3-year period following completion of tax credit claims
using the above tax credit certificate number(s), whichever is longer.

 

In
the case of pass-through business entities (such as partnerships, limited
liability companies, cooperatives, S corporations, etc.), data for members
of the business entity will be aggregated and released at the business level to
the Awarding Agency with this signed release from the business entity, The signature of a business representative on this Authorization form
authorizes the Iowa Department of Revenue to release tax information at the
business entity level.

 

State
tax information authorized for release includes tax information pertinent to
the taxpayer for individual income tax, corporate income tax, franchise tax,
insurance premiums tax, sales and use tax, withholding tax, moneys and credits
tax, and the replacement tax on utilities that is requested by the Awarding
Agency in the administration of tax credit programs and other state financial
assistance programs.

 

The
undersigned hereby authorizes the Iowa Department of Workforce Development to
provide to the Iowa Department of Revenue and to the Awarding Agency the
Employment Contribution and Payroll Tax Report (form 65-5300) and Multiple
Worksite Report (ELS 3020) and information from these forms for the Employer
Identification Number (EIN) number pertinent to the above specified contract or
tax credit certificate(s).  Iowa
Workforce Development may provide the information without providing the
report.  The confidential unemployment
insurance information will be released, pursuant to this authorization only to
the Iowa Department of Economic Development
and/or The Department of Revenue for the purpose of evaluation and
administration of tax credit programs and other state financial assistance
programs.  This Authorization for Release
of Confidential Unemployment Insurance information shall be valid for all
periods either 1) for a 3-year period following completion of the contract or
2) for a 3-year period following completion of tax credit claims using the
above tax credit certificate number(s), whichever is longer.

 

	
  Name
  of Taxpayer:

  	
   

  
	
   

  	
   

  
	
  Street
  Address:

  	
   

  
	
   

  	
   

  
	
  City,
  State, Zip

  	
   

  
	
   

  	
   

  
	
  Telephone
  Number:

  	
   

  
	
   

  	
   

  
	
  Email
  Address:

  	
   

  
	
   

  	
   

  
	
  Social
  Security Number (for individuals):

  	
   

  
	
   

  	
   

  
	
  Employer
  Identification Number (for businesses):

  	
   

  
	
   

  	
   

  
	
  Unemployment
  Insurance Number (for businesses):

  	
   

  
	
   

  	
   

  
	
  Type of Entity:  ̈
  Individual/Sole Proprietorship  ̈ Partnership  ̈ S Corp  ̈ C Corp

  
	
   

  	
   

  
	
   ̈ LLC  ̈ Cooperative  ̈ Other (specify)

  	
   

  
	
   

  	
   

  
	
  Signature
  of Taxpayer:

  	
   

  
	
   

  	
   

  
	
  Title
  (Required for partnerships and corporations(1)):

  	
   

  
	
   

  	
   

  
	
  Date
  signed:

  	
   

  
								

 

(1)          Partnerships —
Only partners can authorize release of information.  

                        Corporations —
Only corporate officers can authorize release of information.

 

 

 

EXHIBIT D - JOB OBLIGATIONS

 

	
  Jobs
  Created or Retained through this Project

  	
  NewLink
  Genetics Corporation 

  06-54

  

 

Below
is a list of the jobs that must be retained and/or created as a result of this
Project.  A “retained job”
is an existing job that would be eliminated or moved to another state if the
project did not proceed in Iowa.  A “created job” means the number of new FTE Jobs the Business
will add over and above the Business’s Employment Base
and, if applicable, Statewide Employment Base.  “Qualifying jobs”
are those created or retained jobs that qualify for program funding.  “Non-qualifying jobs”
are those jobs created or retained by the project that do not qualify for
funding, but would not be created or retained if the Project did not proceed.

 

	
  PROJECT JOBS

  	
   

  	
  HQJC Program

  $17.31

  	
   

  
	
  Job Title

  	
   

  	
  # of Jobs

  	
   

  	
  Type of Job:

  Created (C) or 

  Retained (R)

  	
   

  	
  Starting or 

  Current Hourly 

  Wage

  	
   

  	
  Avg. Benefit 

  Value

  	
   

  	
  Qualifying

  	
   

  	
  Non-Qualifying

  	
   

  
	
  Laboratory
  Technician

  	
   

  	
  28

  	
   

  	
  C

  	
   

  	
  $

  	
  14.42

  	
   

  	
  $

  	
  1.91

  	
   

  	
   

  	
   

  	
  28

  	
   

  
	
  Senior
  Research Scientist

  	
   

  	
  6

  	
   

  	
  C

  	
   

  	
  $

  	
  36.06

  	
   

  	
  $

  	
  1.91

  	
   

  	
  6

  	
   

  	
   

  	
   

  
	
  Research
  Scientist

  	
   

  	
  8

  	
   

  	
  C

  	
   

  	
  $

  	
  26.44

  	
   

  	
  $

  	
  1.91

  	
   

  	
  8

  	
   

  	
   

  	
   

  
	
  Administrative
  Assistant

  	
   

  	
  3

  	
   

  	
  C

  	
   

  	
  $

  	
  14.42

  	
   

  	
  $

  	
  1.91

  	
   

  	
   

  	
   

  	
  3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Jobs Created:

  	
   

  	
  45

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Jobs Retained:

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Totals:

  	
   

  	
  45

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  14

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Business
  Employment Base

  	
  34

  	
   

  	
  Statewide Employment Base:

  	
  0

  	
   

  
																		

 

Job Performance Obligations  

 

As
a result of this project, NewLink Genetics Corporation will create 45 new
full-time equivalent (FTE) jobs above a base employment of 34 FTE jobs at the
Ames location.  14 of the 45 created
project jobs will meet the definition of “high-quality” jobs.  High-quality jobs, for purposes of this
project in Story County are defined as created jobs with a starting wage
including benefits equal to or greater than $17.31.

 

Dec-05Exhibit
10.59

 

CONTRACT AMENDMENT

 

	
  BUSINESS:

  	
  NewLink
  Genetics Corporation

  
	
  MASTER
  CONTRACT #:

  	
  06-54

  
	
  FUNDING
  AGREEMENT#

  	
  06-HQJC-017

  
	
  AMENDMENT
  #:

  	
  One

  
	
  EFFECTIVE
  DATE:

  	
  April 21,
  2009

  

 

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 by correspondence dated December 8, 2008 an extension
of the Project Completion Date from December 31, 2008 to March 18,
2010, and

 

WHEREAS,
the IDED DIRECTOR approved the Business’s
request, effective as of the Effective Date stated above, and

 

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

 

1.              REVISION
OF ARTICLE 3.1, “PROJECT COMPLETION DATE.”  The definition of “Project Completion Date”
in Article 3.1 is amended as follows:

 

“Project
Completion Date” means the date three (3) years
from the Award Date  March 18, 2010 as stated in Exhibit C,
Description of the Project and Award Budget. The Project Completion Date is the
date by which all Project activities shall be satisfactorily completed.

 

2.              REVISION
OF HQJC FUNDING AGREEMENT ARTICLE 4.1 “JOB OBLIGATIONS.” 

Article 4.1 is amended as follows:

 

The Business’s Job
Obligations are as detailed in Master Contract Exhibit D, “Job
Obligations.” The Business shall create the Project Jobs within 3 years (the “Project Creation Period”)
of the Effective Date (defined in the Master Contract)  by March 18,
2010.  The Business shall maintain
the Project Jobs for a period of at least two (2) years beyond the Project
Creation Period, for a total contract duration of 57
years.

 

3.              REVISION
OF HQJC FUNDING AGREEMENT ARTICLE 4.2 “QUALIFYING INVESTMENT.”  Article 4.2 is amended
as follows:

 

Within three (3) years
of the Effective Date (as defined in the Master Agreement)By
March 18, 2010, the Business shall make a qualifying investment of
$2,000,000. A “qualifying investment” means an investment in real property
including the purchase price of land and existing buildings and structures;
site preparation; improvements to real property; building construction; long-term
lease costs; and/or depreciable assets.

 

 

4.              REVISION
OF HQJC FUNDING AGREEMENT ARTICLE 4.5 “ADDITIONAL CONDITIONS.”  Article 4.5 is amended as follows:

 

Even though the
25,000-28,000 build-to-suit facility is not being included in the project,
Newlink Genetics will be required to finalize the lease terms and occupy the
facility by December 31, 2008  March 18, 2010.  Failure to do so will result in an event of
non-compliance and NewLink Genetics will be required to re-pay all or a part of
the benefits received through the High Quality Job Creation Program award.

 

5.              REVISION
OF EXHIBIT C, “DESCRIPTION OF THE PROJECT AND AWARD BUDGET.” Exhibit C
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.

 

Except
as otherwise revised above, the terms, provisions, and conditions of Contract
Number 06-54 remain unchanged and are in full force and effect:

 

 

	
  FOR BUSINESS:

  	
   

  	
  FOR
  IDED:

  
	
   

  	
   

  	
   

  
	
  /s/Gordon
  Link

  	
   

  	
  /s/Vincent
  C. Lintz

  
	
  SIGNATURE

  	
   

  	
  SIGNATURE

  
	
   

  	
   

  	
   

  
	
  Gordon Link/CFO

  	
   

  	
  Vincent
  C. Lintz, Deputy Director

  
	
  PRINT/TYPE
  NAME, TITLE

  	
   

  	
  PRINT/TYPE
  NAME, TITLE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FOR
  COMMUNITY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/Ann
  H. Campbell

  	
   

  	
   

  
	
  SIGNATURE

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Ann
  H. Campbell, Mayor

  	
   

  	
   

  
	
  PRINT/TYPE
  NAME, TITLE

  	
   

  	
   

  

 

 

DESCRIPTION OF THE PROJECT AND AWARD BUDGET

(Exhibit C)

 

	
  Name of
  Business:

  	
  NewLink
  Genetics Corporation

  
	
   

  	
   

  
	
  Contract
  Number:

  	
  06-54

  

 

PROJECT DESCRIPTION

 

NewLink
Genetics Corporation will develop a campus for its operations at the ISU
Research park in Ames, Iowa. The project involves purchases of
manufaturing machinery and equipment and research and development. NewLink
Genetics Corp. will create 45 full-time equivelant (FTE) jobs as a result of this
project.

 

	
  Project
  Completion Date:

  	
  December 31,
  2008March 18, 2010

  
	
  Job
  Maintenance Period:

  	
  December 31,
  2010March 18, 2012

  

 

AWARD BUDGET

 

	
  SOURCE OF FUNDS

  	
   

  	
  Amount

  	
   

  	
   

  	
  USE OF FUNDS

  	
   

  	
  Cost

  
	
  IDED
  Programs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HQJC Program Benefits

  	
   

  	
  *see below

  	
   

  	
   

  	
  *Mfg
  Machinery and Equipment

  	
   

  	
  $2,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Research
  and Development

  	
   

  	
  $20,000,000

  
	
  City
  of Ames

  	
   

  	
  $200,000

  	
   

  	
  Forgivable
  loan

  	
   

  	
   

  	
   

  
	
  AEDC

  	
   

  	
  $200,000

  	
   

  	
  Forgivable
  loan

  	
   

  	
   

  	
   

  
	
  NewLink
  Genetics Corp.

  	
   

  	
  $21,600,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUB TOTAL

  	
   

  	
  $22,000,000

  	
   

  	
   

  	
  SUBTOTAL

  	
   

  	
  $22,000,000

  
	
   

  	
   

  	
  * included as capital investment if aw arded tax credit program 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUB TOTAL

  	
   

  	
  $0

  	
   

  	
   

  	
  SUB TOTAL

  	
   

  	
  $0

  
	
  TOTAL
  ALL FUNDS

  	
   

  	
  $22,000,000

  	
   

  	
   

  	
   

  	
   

  	
  $22,000,000

  

 

	
  *HQJC Program Benefits

  	
   

  	
  $414,200
  (estimated value)

  

 

Jan. 06Apr. 09

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