Document:

Exhibit
10.54

 

PROMISSORY NOTE

 

	
  Evidencing
  amounts up to:

  $800,000.00

  	
  Made and delivered on and
  at the following:

                                 , 2009

  Ames, Iowa

  

 

FOR
VALUE RECEIVED, the undersigned (the “Company”) promises to pay to the order of
IOWA STATE UNIVERSITY RESEARCH PARK (the “Holder”) 2711 S. Loop Drive, Building
4, Suite 4050, Ames, Iowa 50010 the principal sum of EIGHT HUNDRED
THOUSAND AND NO/100 DOLLARS ($800,000.00), or so much thereof as has been
advanced hereunder as noted on the amortization schedule to be attached hereto,
with interest thereon from the date of the first advance of funds hereunder as
provided below until payment hereof in full as follows, and in accordance with
the terms and conditions set forth herein:

 

l.                                          Purpose of Note.  This Promissory Note (“Note”) evidences
amounts due and owing for certain tenant improvements made to Suite 5100
of Building 5 in the Iowa State University Research Park, Ames, Iowa (the “Leased
Premises”).  The obligations evidenced
under this Note are separate from the rent obligations of the Company under
that certain lease dated September 30, 2009 for the Leased Premises
between the Holder and the undersigned (the “Lease”) and shall not be deemed to
constitute “additional rent” thereunder.

 

2.                                       Interest Rate
and Interest and Principal Payments.  Interest only at the rate of 3.0% per annum
on the principal balance of this Note outstanding from time to time, payable
beginning the first day of the month following the date of the first advance
hereunder, and continuing on the first day of each month thereafter until the
first day of the month subsequent to the date of the final completion (the “Completion
Date”) by the undersigned of its tenant improvements at the Leased
Premises.  Thereafter, commencing on the
first day of the second month after the Completion Date, monthly payments in an
amount sufficient to amortize the outstanding principal balance of this Note as
of the Completion Date, including interest at the rate of 3.0% per annum, by
the first day of the month which is eight years after the Completion Date (the “Maturity
Date”), with such monthly payments continuing on the first day of each month
thereafter until the first day of the month five years after the Completion
Date (the “Reamortization Date”); and thereafter, commencing on the first day
of the month after the Reamortization Date, monthly payments in an amount
sufficient to amortize the remaining principal balance of this Note as of the
Reamortizreamoation Date, including interest at the rate of 5.0% per annum, by
the Maturity Date, at which time all unpaid principal and interest shall be due
and payable in full.

 

Each
payment made on this Note shall be first applied in payment of interest due on
the unpaid principal and the remainder in reduction of the principal.

 

3.                                       Collateral and
Security.  Unused.

 

4.                                       Mandatory and
Optional Prepayment.

 

(i)                                     Company shall prepay,
without penalty or premium, all obligations due and owing hereunder,
immediately upon any consensual early termination of the Lease.

 

(ii)                                  Company may prepay Company’s
obligations hereunder at any time, in whole or in part, without penalty or
premium.  Prepayment amounts shall be
applied first to payment of any reimbursable costs or expenses, then to
interest on the unpaid principal balance through the date of prepayment, and
then to the payment of principal.

 

 

(iii)                               Any prepayments shall not
reduce the amount of any amortized monthly or other scheduled payments due
under this Note until such time as the principal balance has been paid in
full.  Company agrees not to send Holder
payments marked “paid in full,” “without recourse”, or similar language.  If Company sends such a payment, Holder may
accept it without losing any of his rights under this Note, and Company will
remain obligated to pay any further amount owed to Holder.

 

5.                                       Events of
Default / Acceleration and Remedies.  Any of the following shall constitute an “Event
of Default,” in which ease all amounts payable hereunder shall automatically,
or at the option of Holder (as provided herein), become immediately due and
payable:

 

(i)                                     The failure of Company to
pay any payment due under this Note when due; or

 

(ii)                                  Company fails to perform or
observe any material term, covenant, or agreement or breach any material
representation or warranty contained herein or in the Lease and such failure,
to the extent it is capable of cure, is not remedied or corrected within
fifteen (15) calendar days after written notice thereof shall have been
received by Company.

 

(iii)                               Default by Company shall
occur with respect to any agreement, obligation, or indebtedness of Company to
its primary institutional lender and such default shall continue for more than
a period of grace, if any, specified therein and shall have a material adverse
effect on the ability of Company, in the reasonable judgment of Holder, to
perform hereunder.

 

(iv)                              Company applies for,
consents to, or acquiesces in the appointment of a trustee, receiver or other
custodian for Company or any property thereof, or makes a general assignment
for the benefit of creditors; or, in the absence of such application, consent
or acquiescence, a trustee, receiver or other custodian is appointed for
Company or for a substantial part of the property of either of them and is not
discharged within sixty (60) days; or a case under any proceeding under
bankruptcy or insolvency law, or any dissolution or liquidation proceeding, is
commenced in respect of Company, and if such case or proceeding is not
commenced by Company, it is consented to or acquiesced in by Company, or
remains undismissed for sixty (60) days; or Company takes any action to
authorize, or in furtherance of, any of the foregoing.

 

Upon
the occurrence of and during the continuance of an Event of Default, other than
an Event of Default specified in Section 5(iv), Holder may declare the
entire remaining indebtedness of Company to Holder hereunder and the Note to be
forthwith due and payable, both as to principal and interest, without
presentment, demand, protest or other notice of any kind to Company, all of
which are expressly waived, anything contained herein or in any other
agreement, document or instrument to be issued or contemplated hereunder to the
contrary notwithstanding.  Upon the
occurrence of an Event of Default specified in Section 5(iv) there
shall be an automatic acceleration of all obligations of Company to Holder with
the same force and effect as a declaration by Holder as above provided.

 

6.                                       Waiver of
Defaults.  Holder may,
by written notice to Company, at any time and from time to time, waive in whole
or in part, absolutely or conditionally, any Event of Default which shall have
occurred hereunder.  Any such waiver
shall be for such period and subject to such conditions or limitations as shall
be specified in any such notice, In the case of any such waiver, the
rights and obligations of Company and Holder under the Note shall be otherwise
unaffected, and any Event of Default so waived shall be deemed to be cured and
not continuing to the extent and on the conditions or

 

2

 

limitations
set forth in such waiver, but no such waiver shall extend to any subsequent or
other Event of Default, or impair any right, remedy or power consequent upon
any such other Event of Default.

 

7.                                       Default
Interest Rate.  Payments of
the principal and interest not made when due (whether prior to or upon demand,
by reason of default, upon acceleration or otherwise), shall accrue interest at
the rate of eight percent (8%) per annum, or at the highest rate allowable
under applicable law, whichever is less, from the date due of such payment
until paid.

 

8.                                       Attorneys’ Fees
and Costs.  Company
agrees to pay all reasonable attorneys’ fees and all costs and expenses,
including court costs, incurred by Holder in connection with any efforts to
collect, enforce or otherwise protect or realize upon the Note.

 

9.                                       Miscellaneous
Provisions.  This Note
shall be governed by, and shall he construed and enforced in accordance with,
the laws of the State of Iowa.  The parties
hereby submit to the exclusive jurisdiction of the Iowa District Court for
Story County in any action or proceeding arising out of or relating to this
Note or any agreement, document, or instrument contemplated hereby and each
party hereby agrees that all claims and counterclaims in respect of such action
or proceeding may be heard and determined in any such court.  The parties irrevocably waive any objection,
including without limitation any objection to laying of venue or based on
ground of forum non-conveniens, which it may now or hereafter have to the
bringing of any action or proceeding in such respective jurisdiction.  Each of the parties consents to the service
of any and all process in any such action or proceeding by said party sending
or delivering a copy of the process to the party to be served at the address in
the manner provided for the giving of notice herein.

 

In
the event any provision of this Note is hold to be invalid, illegal or
unenforceable, in whole or in part, the remaining provisions of this Note shall
not be affected thereby and shall continue to be valid and enforceable.  In the event any provision of this Note is
held to be invalid, illegal or enforceable as written, but valid, legal and enforceable
if modified, then such provisions shall he deemed to be amended to such extent
as shall be necessary for such provision to be valid, legal and enforceable and
it shall be enforced to that extent.

 

The
remedies provided for in this Note and any other documents and instruments
contemplated hereby are cumulative and not exclusive to any remedies that may
be available to Holder or any subsequent holder at law or equity or otherwise.

 

Company
waives presentation, demand, protest, notice of protest or other notice of
dishonor.  No amendment, modification,
supplement, termination or waiver of or to any provisions of this Promissory
Note or any agreement, document or instrument contemplated hereby, or consent
to any departure therefrom, shall be effective unless the same shall be in
writing and signed by or on behalf of the appropriate parties to this Note or
to any other particular agreement, document or instrument in question, as the
case may be.  Any amendment, modification
or supplement of or any provision of this Note or any agreement, document or
instrument contemplated hereby, any waiver of any prevision of this Note, or of
any agreement, document or instrument contemplated hereby, and any consent to
any departure from the terms of any provision of this Note or of any agreement,
document or instrument contemplated hereby, shall be effective only in the
specific instance and for the specific purpose for which any of the foregoing
is made or given.

 

IMPORTANT:  READ BEFORE SIGNING.  THE TERMS OF THIS NOTE SHOULD BE READ,
CAREFULLY BECAUSE ONLY THOSE TERMS IN THE WRITING ARE ENFORCEABLE.  NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED
IN THIS NOTE MAY BE

 

3

 

LEGALLY
ENFORCED.  YOU MAY CHANGE THE TERMS
OF THIS NOTE ONLY BY ANOTHER WRITTEN AGREEMENT.

 

Company
acknowledges the receipt of a copy of this fully executed Promissory Note at
the time of the execution hereof and copies of all other documents executed by
them in connection herewith.

 

	
   

  	
   

  	
  NEWLINK
  GENETICS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  2500
  North Loop Drive

  	
  By:

  	
  /s/
  /Gordon Link

  
	
   

  	
  Ames, Iowa
  50010

  	
  Name:

  	
  Gordon
  Link

  
	
  Phone;

  	
  515-296-8030

  	
  Title:

  	
  CFO

  

 

4Exhibit
10.55

 

ECONOMIC DEVELOPMENT

COMMUNITY INVESTMENT FUND PROGRAM

FORGIVABLE LOAN AGREEMENT

(NewLink Genetics Corporation)

 

ARTICLE 1.0 — GENERAL

 

1.1                                 Identification
of Parties.  This
Agreement is entered into by and between the City of Ames, Iowa and the
Ames Chamber of Commerce, jointly, as Lenders (hereafter referred to as the “Lenders”)
and NewLink Genetics Corporation (hereinafter referred to as the “Borrower”).

 

1.2                                 Statement of
Purpose.  WHEREAS,
as part of its policy to foster economic development, the Lenders have adopted
a program of financial assistance to selected business enterprises by means of
loans made in accordance with an adopted loan policy known as THE COMMUNITY
INVESTMENT FUND; and,

 

WHEREAS, the Lenders have agreed to loan up to the amount of
four-hundred thousand dollars ($400,000.00) to the Borrower to assist in a
certain project; and,

 

WHEREAS, the Borrower has made application to the City of
Ames, Iowa, for this loan; and

 

WHEREAS, the Borrower has qualified and been approved for
such a loan and has agreed to the conditions of the receipt of such a loan;

 

NOW, THEREFORE, the parties hereto, in consideration of the
premises, do agree as follows:

 

1.3                                 The Forgivable
Loan.  The Lenders agree, upon the
terms and conditions hereinafter set forth, to make a forgivable loan of money
to the Borrower in a total amount not to exceed $400,000.00 in order to assist
in the financing of the project described in Article 2.2 of this
Agreement.  The obligation of the
Borrower to repay the loan shall be evidenced by a Promissory Note of the
Borrower to the Lenders in the amount of $400,000, setting forth an obligation
to repay the said amount in one lump sum plus interest if the loan is not
forgiven as herein provided.  In the
event the Borrower fails to receive and/or spend the full face amount of any
loan as set out herein and in said Promissory Note, then the amount of the loan
shall be reduced accordingly.

 

1.4                                 Reports.  The Borrower shall submit the following
reports:

 

	
  Report

  	
   

  	
  Due Date

  
	
  Expenditure
  Report

  	
   

  	
  Monthly

  
	
   

  	
   

  	
   

  
	
  Quarterly
  Finance & Progress Report

  	
   

  	
  10th of month following the end of each quarter

  
	
   

  	
   

  	
   

  
	
  Final
  Progress Report

  	
   

  	
  Within
  30 days of project completion

  

 

1.5                                 Assurances.  The representations appearing in the Borrower’s
application to the 

 

1

 

Lenders for the loan are incorporated herein and
made a part of this agreement.

 

ARTICLE 2.0 —
BORROWER’S PROJECT

 

2.1                                 Statement of
Work and Services.  The
Borrower shall perform in a satisfactory and proper manner, as determined by
the Lenders, the activities described in the approved application, Attachment “B”
to this Agreement.  This Attachment is
hereby made a part of this Agreement by reference.  In addition, Borrower’s activities shall conform
to the approved Project Budget found in Attachment “B” to this Agreement, and
the approved Project Schedule in Attachment “B” to this Agreement.

 

2.2                                 Project
Description.  As more
specifically described in Borrower’s approved application to the Lenders, the
Project shall be the development, manufacture, and marketing of pharmaceutical
products for the diagnosis and treatment of human disease.  The Project shall include the following:

 

Enter
into a five-year building lease with option for extension for an additional
five years of not less than Twenty thousand (20,000) square feet within the
corporate limits of the City of Ames.

 

Create
or retain a total of one hundred fifty (150) full-time positions located in
Ames, Iowa in the course of the funded project.

 

2.3                                 Conveyance or
Disposition of Project.  The
Borrower shall not sell, transfer, convey, lease or otherwise dispose of the
Project or of any part thereof, without the consent of the Lenders until the
date on which this loan has been fully repaid.

 

2.4                                 Cost
Sufficiency.  The Lenders
do not make any warranty, either expressed or implied, that the proceeds of the
loan available for payment of the costs of the Project will be sufficient to
pay all the costs which will be incurred in that connection.  The Lenders are under no obligation to
advance funds in addition to those specified in this Agreement.

 

ARTICLE 3.0 —
BORROWER’S CONTRIBUTION TO THE PROJECT

 

3.1                                 Source(s) of Other
Contributions (as stated in Borrowers’ Loan Application).

 

3.2                                 The obligation
of the Borrower to pay the principal and interest on this loan and to perform
its other obligations as described within this loan agreement will be secured
by a security interest in and to certain property now owned or hereafter
acquired by Borrower, together with the proceeds, products, increase, issue,
accessions, attachments, accessories, parts, additions, repairs, replacements
and substitutes of, to any or all of the foregoing.

 

ARTICLE 4.0 — TERMS
OF THE LOAN

 

4.1                                 Maximum Amount
of Loan.  It is expressly understood and
agreed that the maximum amount to be loaned to the Borrower by the Lenders
shall be $400,000.00.

 

4.2                                 Loan Rate.  The Lenders and Borrower agree that all funds
loaned to Borrower shall be at an interest rate of 6.50%, with a principal and
interest payment due per the terms of this agreement.  No amount will be due if the Borrower meets
all the terms of the forgivable loan.

 

4.3                                 Loan Term.  The Lenders and Borrower agree that the term
of the loan shall be five years from the 10TH day of MARCH,
2009.10

 

2

 

4.4                                 At the end of
two years from the initial disbursement of loan proceeds, the borrower shall
provide documentation of job retention and creation in the City of Ames relate
to the project described in section in section 2.2 above.  If the Borrower has created/retained a total
of seventy (70), full-time jobs, no amount will be due.  If the Borrower has not created/retained a
total seventy (70), full-time jobs, the Borrower shall pay the Lenders $3,130.58
in principal and interest for each full-time position below the target of
seventy (70).

 

4.5                                 Loan Repayment.  If, at the end of five years following
initial disbursement of the loan proceeds, a total of one-hundred fifty (150)
full-time equivalent positions of employment have not been created as stated in
2.2 above, Borrower shall pay $3,130.58 in principal and interest for each
promised job not created.  The Lenders
shall deduct any principal and interest paid under section 4.4, total repayment
of principal and interest paid by the borrower shall not exceed $469,587.

 

ARTICLE 5.0 — CONDITIONS OF
PAYMENT OF LOAN FUNDS TO BORROWER

 

5.1                                 Requisition for
Payment.

 

a.                                       Payments to the
Borrower.  All
payments to the Borrower shall be subject to the receipt by the Lenders of a
requisition for payment.  The requisition
shall be made according to the format specified by the Lenders.  Loan proceeds shall be disbursed to the
Borrower when certain Project components are completed by the Borrower.

 

The
Lenders will fund $200,000 of the loan when the Borrower provides documentation
of a five-year lease agreement with option for a five-year extension for a
minimum of 20,000 square feet within the corporate limits of the City of Ames.

 

The
Lenders will fund $100,000 of the loan when the Borrower occupies the leased
building described in the preceding paragraph;

 

The
Lenders will fund $100,000 of the loan when the Borrower provides documentation
of 70 qualified full-time employment positions at the building described in
this project.

 

b.                                      Supporting
Evidence to Accompany Requisition.  The Borrower shall submit to the Lenders such
supporting evidence as may be reasonably required by the Lenders to
substantiate all payments which are requested and to substantiate all payments
then made with respect to the project. 
In addition, the Lenders may require the Borrower to secure and provide
evidence to the Lenders of lien waivers from any contractor or subcontractor
for all work done and for all materials furnished by them for the project.

 

5.2                                 Time of
Requisitions.  Borrower
shall requisition loan funds per the provisions of paragraph 5.1.

 

5.3                                 Use of Loan
Proceeds.  Borrower
understands and agrees that loan proceeds shall not be spent on any other
purpose(s) or projects(s) than that described in Article 2.2.

 

5.4                                 Suspension of
Payments.  The Lenders
shall have the right to suspend, withhold, or delay loan payments to the
Borrower if it is determined that the Borrower’s project has been changed,
interrupted, or significantly delayed or if the Borrower is found to be not in
compliance with any provision of this Agreement.

 

5.5                                 Promissory Note
Required.  The Lenders
shall not provide loan funds to the Borrower prior to the completion and
execution of the promissory note, Attachment “A” to this Agreement.

 

3

 

ARTICLE 6.0 — LOAN
REPAYMENT

 

6.1                                 Repayment
Schedule.  Repayment
of the loan shall be made by the Borrower to the Lenders as specified in the
terms of this agreement.

 

6.2                                 Default.  If any of the following events (“Event of
Default”) shall occur and be continuing, the Lenders may declare the Borrower
to be in default:

 

a.                                       Any
representation or warranty made by the Borrower under or in connection with
this Agreement shall prove to have been incorrect in any material respect when
made; or

 

b.                                      The Borrower
shall fail to perform or observe any other term or condition contained in this
Agreement and any such failure shall remain unremedied for thirty (30) days
after written notice thereof shall have been given to the Borrower by the
Lenders; or

 

c.                                       Execution shall
have been levied against the project or any lien creditors sued to enforce a
judgment against the project, or such other proceeding shall have been brought
and shall continue unstayed and in effect for a period of more than thirty (30)
consecutive calendar days; or

 

d.                                      The Borrower
not shall sell, transfer, lease or convey the project, or any part thereof,
except as herein provided, without the prior written consent of the Lenders.

 

e.                                       If Borrower’s
Project related business leaves Ames, Iowa before five years from the date
of this agreement, then liquidated damages in the amount of $200,000 are due
and payable to the Lenders along with the balance of principal and interest due
on the loan.  Said damages pertain to
lost economic development.

 

6.3                                 Actions Upon a
Declaration of Default.  Upon
declaration of default by the Lenders, the Lenders may:

 

a.                                       By notice to
the Borrower, declare the loan payable under the Promissory Note and this Agreement
to be forthwith due and payable, without presentment, demand, protest, or
further notice of any kind, all of which are hereby expressly waived by the
Borrower.

 

b.                                      Take whatever
action at law or in equity may appear necessary or desirable to collect the
payments and other amounts including principal, interest and liquidated damages
then due and thereafter to become due or to enforce performance and observance
of any obligation, agreement or covenant of the Borrower under this Agreement.  No remedy herein conferred upon or reserved
to the Lenders is intended to be exclusive of any other remedy or remedies, and
each and every such remedy shall be cumulative, and shall be in addition to
every other remedy given hereunder or now or hereafter existing at law or in
equity or by statute.

 

6.4                                 Form of
Payments.  All
payments of principal, interest, or penalty, hereunder, or under the promissory
note, shall be checks made payable to the City of Ames.

 

ARTICLE 7.0 —
ADMINISTRATIVE REQUIREMENTS

 

7.1                                 Accounts and
Records.  The Borrower shall maintain
books, records, documents and other evidence pertaining to all costs and
expenses incurred and revenues acquired under this Agreement to the extent and
in such detail as will properly reflect all costs, direct and indirect, of
labor, materials, equipment, supplies, services, and other costs and expenses
of whatever nature, for which payment is made with the proceeds of this loan.

 

7.2                                 Inspection of
Records.  Any time during normal
business hours and as frequently as is deemed necessary, the Borrower shall
make available to the Lenders, for their examination, 

 

4

 

all of its records, contracts, invoices, payrolls,
personnel records, conditions of employment, and all other matters covered by
this Agreement.

 

7.3                                 Monitoring by
Lenders.  The Lenders shall have the
right to make scheduled and unscheduled visits to the Borrower in order to
monitor project performance and compliance with this Agreement.

 

7.4                                 Audit
Requirements.  Borrower
shall have an audit of the project conducted by a certified public accountant,
to include all income and expenditures of loan proceeds and local cash, if and
when called for by the Lenders.

 

ARTICLE 8.0 — OTHER
CONDITIONS

 

8.1                                 This agreement
is, and the Promissory Note, other documents and agreements required by the
Agreement when delivered hereunder or pursuant thereto shall be, legal, valid
and binding obligations of the Borrower enforceable against the Borrower in
accordance with their respective terms.

 

8.2                                 Neither the
execution, delivery or performance of this Loan Agreement or the Promissory
Note, the consummation of the transactions contemplated hereby, nor the
fulfillment of or compliance with the terms and conditions of this Loan
Agreement conflicts with or results in a breach of any of the terms, conditions
or provisions of any restriction in any organizational document or any
agreement or instrument to which the Borrower is now a party or by which the
Borrower is bound, or constitutes a default under any of the foregoing, or
results in the creation or imposition of any lien, charge or encumbrance
whatsoever upon any of the property or assets of the Borrower under the terms
of any instrument or agreement, other than as provided in this Loan Agreement.

 

8.3                                 There is no
litigation or proceeding pending, or to the knowledge of the Borrower
threatened, against the Borrower affecting in any manner whatsoever the right
of the Borrower to execute this Agreement or the other agreements required to be
executed by the Borrower under the Agreement or the ability of the Borrower to
pay the payments required hereunder or to otherwise comply with the Borrower’s
obligations contained herein or therein.

 

8.4                                 The Borrower
will comply in all material respects with all applicable laws, rules,
ordinances, regulations and orders, such compliance to include, without
limitation, paying before the same become delinquent all taxes, assessments and
governmental charges imposed upon the Borrower or upon the Borrower’s property
except to the extent contested in good faith.

 

8.5                                 The Borrower
agrees that the Lenders shall have no responsibility nor incur any expense for
maintenance or preservation of the Project or for the payment of any taxes,
assessments or other governmental charges assessed or levied with respect to
the Project.

 

ARTICLE 9.0 —
MISCELLANEOUS

 

9.1                                 Agreement
Coverage.

 

a.                                       This
instrument, and any referenced attachments hereto or documents referred to
herein, contains the entire agreement between the parties and any statements,
inducements or promises not contained herein shall not be binding upon said
parties.  This Agreement shall be binding
upon the successors in interest of the respective parties.

 

b.                                      If any of the
provisions herein shall be in conflict with the laws of the State of Iowa, or
shall be declared to be invalid by any court of record of this state, such 

 

5

 

invalidity shall be construed to affect only such
portions as are declared invalid or in conflict with the law and such remaining
portion or portions of the agreement shall remain in effect and shall be
construed as if such invalid or conflicting portion of such agreement were not
contained herein.

 

9.2                                 Term of the
Agreement.  This
Agreement shall be in full force and effect from the effective date hereof and
shall continue in effect so long as the loan is outstanding and unpaid or
unforgiven.

 

9.3                                 Maintenance of
the Project and Insurance.  The
Borrower covenants that, so long as the loan is outstanding and unpaid, the
Borrower shall keep, or cause to be kept, the Project in as good repair and
condition, as same may be, or may be hereafter placed upon completion, ordinary
wear and tear only excepted; and shall not suffer or commit waste or damage
upon the Project.  In addition, the
Borrower may be required to keep in force insurance, premiums therefore to be
prepaid without notice or demand, against loss by fire, tornado, and other
hazards, casualties, and contingencies as the Lenders may require on the
Project, in an amount not less than the full insurable value of the Project, or
not less than the unpaid balance of principal on the loan with such insurance
payable to the Borrower and the Lenders as their interests may appear.  The Borrower may be required to deposit such
policies with proper riders with the Lenders.

 

9.4                                 Amendment of
this Agreement.  The Lenders
or the Borrower may, during the duration of this Agreement, deem it necessary
to make alterations to the provisions of this Agreement.  Any changes to this Agreement, which are
approved by the Lenders, shall be incorporated into this Agreement.  The provisions of the amendment shall be in
effect as of the date of the amendment unless otherwise specified within the
amendment.  A waiver of any condition of
this Agreement must be in writing from the duly authorized official of the
Lenders.

 

9.5                                 Indemnity, Fees
and Expenses.

 

a.                                       The Borrower
will indemnify and save harmless the Lenders and their officers and employees
from and against any and all losses, by it or them while it or they are acting
in good faith to carry out the transactions contemplated by this Agreement or
to safeguard its or their interests or ascertain, determine or carry out its or
their obligations under this Agreement or any law or contract applicable to
said transaction.

 

b.                                      The Borrower
shall, upon demand, pay to the Lenders the amount of any and all reasonable
expenses, including the reasonable fees and expenses of its counsel and of any
experts and agents, which the Lenders may incur in connection with the exercise
or enforcement of any of the rights of the Lenders hereunder, the failure by
the Borrower to perform or observe any of the provisions hereof, the collection
of payments due under this Agreement, and any other reasonable expenses of the
Lenders related to the Project or this financing (including reasonable attorney’s
fees) which are not otherwise expressly required to be paid by the Borrower
under the terms of this Agreement.

 

c.                                       The Borrower
agrees to pay all appraisal fees, survey fees, recording fees, license and
permit fees and insurance premiums related to Borrower’s Project.

 

d.                                      It is the
intention of the parties that the Lenders shall not incur pecuniary liability
by reason of the terms of this Agreement and the Borrower shall indemnify and
hold harmless the Lenders (including any person at any time serving as an
officer or employee of the Lenders) against all claims by or on behalf of any
person, firm or corporation, arising out of the same, and all costs and
expenses incurred in connection with any such claim or in connection with any
action or proceeding brought thereon.

 

The
obligation of the parties under this Section shall survive the termination
of this 

 

6

 

Agreement.

 

9.6                                 Binding Effect:
Governing Law.  This
Agreement shall be binding upon and inure to the benefit of the Borrower and
the Lenders and their respective successors and assigns, except that the
Borrower shall not have the right to assign its rights hereunder or any
interest herein without the prior written consent of the Lenders.  This Agreement shall also inure to the
benefit of the Lenders.  This Agreement
shall be governed by, and construed in accordance with, the laws of the State
of Iowa.

 

9.7                                 Obligations of
the Borrower Hereunder Unconditional.  The obligations of the Borrower to make the
payments required to perform and observe the other agreements contained herein
shall be absolute and unconditional and shall not be subject to any defense or
any right of set-off, counterclaim or recoupment arising out of any breach by
the Lenders of any obligation to the Borrower, whether hereunder or otherwise,
or out of any indebtedness or liability at any time owing to the Borrower by
the Lenders and until such time as the principal shall have been fully paid or
provision for the payment thereof shall have been made in accordance with the
Agreement, the Borrower (i) shall not suspend or discontinue any payments
agreed to, (ii) shall perform and observe all other agreements contained
in this Agreement, and (iii) shall not terminate this Agreement for any
cause, it being the intention of the parties that the payments required
hereunder will be paid in full when due without any delay or diminution
whatsoever.

 

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

 

9.9                                 Additional
Provisions.  The
following items or requirements are also agreed to:

 

a.                                       The Borrower
represents that it will take all actions necessary, on a best effort basis, to
secure the accomplishment of the following benefits to the Lenders:

 

To
create and retain one-hundred fifty (150) permanent full-time jobs, in
accordance with 2.2 above, before the end of the loan term, in the City of Ames, Iowa,
in addition to the current employee total.

 

b.                                      Agreement with
Business.  Loan
proceeds shall not be advanced nor shall loan proceeds be used to reimburse
project expenses prior to approval of a loan agreement between the Lenders and
Borrower.

 

9.10                           Suspension and
Termination of This Agreement

 

a.                                       Suspension.  If the Borrower fails to comply with the
conditions of this Agreement, the Lenders may, after notice to the Borrower,
suspend the Agreement and withhold further payments or prohibit the Borrower
from incurring additional obligations of funds, pending corrective action by
the Borrower or a decision to terminate. 
The Lenders may determine to allow such necessary and proper costs which
the Borrower could not reasonably avoid during the period of suspension.

 

b.                                      Termination for
Cause.  The Lenders may terminate this
Agreement in whole, or in part, at any time before the date of completion,
whenever it is determined that the Borrower has failed to comply with the
conditions of the Agreement after notice and reasonable opportunity to
cure.  The Lenders shall promptly notify
the Borrower in writing of the determination and the reasons for the termination,
together with the effective date.  Payments
made to Borrower or recoveries by the Lenders under Agreements terminated for
cause shall be in accord with the legal rights and liabilities of the
parties.  Payments and recoveries may

 

7

 

include, but are not limited to the following:
Payments may be allowed for costs determined to be in compliance with this
Agreement up to the date of termination, based on audits approved by
Lenders.  The Borrower shall return to
the Lenders all unspent funds within one week of notice of termination.  Further, any costs previously paid by the
Lenders which are subsequently determined to be unallowable through audit shall
be returned to the Lenders within thirty (30) days of such determination.

 

9.11                           Litigation.  The Borrower agrees to pay the costs of any
litigation arising from the failure of the Borrower to comply with this
Agreement or resulting from the negligence or incompetence of the
Borrower.  Furthermore, the Borrower shall
indemnify and save harmless the Lenders from suits, actions or claims of any
character brought for or on account of any injuries or damages received by any
person or property resulting from operations of the Borrower or any persons
working under him, carrying out the terms of this Agreement.

 

IN WITNESS THEREOF, the parties hereto have
executed this Agreement on the day and year last specified below:

 

	
  CITY OF AMES, IOWA

  	
   

  	
  AMES
  CHAMBER OF COMMERCE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
    /s/
  Ann H. Campbell

  	
   

  	
  By:

  	
    /s/[illegible]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  12-08-09

  	
   

  	
  Date:

  	
  12/16/09

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
    /s/
  Diane R. Voss

  	
   

  	
  Attest:

  	
    /s/
  Cindy Doolittle

  
	
   

  	
  Diane
  R. Voss, City Clerk

  	
   

  	
   

  	
   

  

 

 

	
  NEWLINK GENETICS CORPORATION

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
    /s/
  Gordon Link

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  3/10/10

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attest:

  	
    /s/
  Sandra Carroll

  	
   

  	
   

  	
   

  

 

8

 

ECONOMIC DEVELOPMENT COMMUNITY INVESTMENT FUND

 

PROMISSORY NOTE

 

FOR
VALUE RECEIVED, NewLink Genetics Corporation (the MAKER), promises to pay to
the order of the City of Ames, Story County, Iowa, and the Ames Chamber of
Commerce d/b/a Ames Economic Development Commission, jointly (the LENDERS), at
such place as may be designated from time to time by the holder of this Note,
the principal sum of $400,000 to be paid or forgiven pursuant to the terms of
the Economic Development Community Investment Fund Program Forgivable Loan
Agreement herein described.

 

In
the event the MAKER fails to requisition and spend the full face amount of the
loan as set out above and as set out in the Loan Agreement, then the amount of
each installment payment shall be reduced accordingly in equal amounts.

 

If
default is made in the payment of this Note, the entire principal shall at once
become due and payable without notice at the option of the LENDERS, and
thereupon the MAKER agrees to pay all costs of collection, including attorney
fees.  Failure to exercise this option
shall not constitute a waiver of the right to declare the entire principal
amount of this Note due and payable at once at any subsequent time.

 

If,
based on the activity of the MAKER, the LENDERS determine that their position
is insecure, LENDERS shall give notice to MAKER and MAKER shall then have up to
ten days to provide evidence to LENDERS of their secure position.  If MAKER fails to provide satisfactory
evidence to LENDERS, the entire principal shall at once become due and payable
at the option of the LENDERS, and thereupon the MAKER agrees to pay all costs
of collection, including attorney fees. 
Failure to exercise this option shall not constitute a waiver of the
right to declare the entire principal amount of this Note due and payable at
once at any subsequent time.  Activities
of the MAKER that could lead the LENDERS to determine that their position is
insecure include, but are not limited to, disposing of assets essential to
continuing business operations, nonpayment of payroll taxes, receipt of notice
of back wages owed to employees of the MAKER, or receipt of a statement by the
company auditor expressing doubts about the MAKER’S ability to continue as a
going concern.

 

MAKER
represents and warrants that the extension of credit evidenced by this Note is
for the purposes described in the Loan Agreement.

 

This
Promissory Note is the Note referred to in, and is entitled to the benefits of,
the Loan Agreement dated the 10TH day of MARCH, 200910, (the “Loan Agreement”)
between the MAKER and the LENDERS.  The
Loan Agreement, among other things, contains provisions for acceleration of the
maturity hereof upon the happening of certain stated events and also for
prepayments on account of principal hereof prior to the maturity hereof upon
the terms and conditions therein specified. 
This Note is secured by a UCC-1 Financing Statement.

 

	
   

  	
  NewLink
  Genetics Corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Gordon Link

  

 

Attachment A

 

1

 

	
  

  	
  Attachment B

  
	
  MUST
  BE FILED IN PLANNING & HOUSING

  
	
  Effective
  Date:  August 4, 2004

  
	
   

  
	
   

  
	
   

  
	
   

  

 

Revolving Loan Fund Application

Instructions for Financial Assistance

from the City of Ames, Iowa

 

1.               Application
Packet.  Be sure to complete and submit all the
required materials that are part of this Application Packet. Failure to do
so will result in a delay in accepting your application until it is complete.
Only typed applications will be accepted and reviewed.

 

The
“Application Packet” for Financial Assistance from the City of Ames Revolving
Loan Fund includes the following:

 

·                  Application Form (This form must be filled out completely for all applications.)

·                  Supporting
Information (Each listed item must be addressed.)

·                  Checklist (required submittals/attachments)

 

2.               Filing. All required
information and materials must be filed with the:

 

Department
of Planning and Housing

Room 214, City Hall

515 Clark Avenue

Ames, Iowa 50010

 

IF YOU HAVE ANY QUESTIONS WHILE COMPLETING THIS APPLICATION

PLEASE CONTACT THE DEPARTMENT OF PLANNING AND HOUSING

 

Phone: 515-239-5400

FAX: 515-239-5404

E-mail: jpietruszynski@city.ames.ia.us

 

1

 

Revolving Loan Fund Application

Application for Financial Assistance

from the City of Ames, Iowa

(This form must be filled out completely before your application will
be accepted.)

 

	
  1.               Business
  Name:

  	
  NewLink Genetics

  
	
   

  	
   

  
	
  Address:

  	
  2901 South Loop Drive, Suite 3900
  Ames, IA 50010

  
	
   

  	
  (Street)

  	
  (City)

  	
  (State)

  	
  (Zip)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone:

  	
  515-296-3530

  	
   

  	
  515-296-3556

  	
   

  
	
   

  	
  (Business)

  	
   

  	
  (Fax)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Business
  Federal ID#:

  	
  42-1491350

  	
  www
  site:

  	
  www.newlinkgenetics.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.               Company
  Officer Authorized to Obligate Business:

  	
  Dr. Charles Link

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  same as above in answer #1

  	
   

  	
   

  	
   

  
	
   

  	
  (Street)

  	
  (City)

  	
  (State)

  	
  (Zip)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone:

  	
  same as above in answer #1

  	
   

  	
   

  	
   

  
	
   

  	
  (Home)

  	
  (Business)

  	
  (Fax)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  E-mail:

  	
  clink@linkp.com

  	
   

  
									

 

	
  3.               Amount
  of Funds Requested:

  	
  $200,000 forgivable loan

  

 

I certify that I have submitted all the
required information to apply for the City of Ames Revolving Loan Fund and that
the information is factual.

 

 

	
  Signed by:

  	
    /s/Charles
  Link

  	
   

  	
  Date:

  	
   

  
	
   

  	
  (Obligator)

  	
   

  	
   

  

 

2

 

Revolving Loan Fund Application

Supporting Information for Financial Assistance

from the City of Ames, Iowa

(This form must be filled out completely before your application will
be accepted.)

 

1. Description
of Business.  Include history,
if new, proposed markets, products or services provided, management
structure.  (The applicant’s explanation
may be attached on a separate sheet if sufficient space is not provided):  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 caner, and malignant melanoma. 
The company’s lung, breast, and prostate vaccine trials are currently
enrolling patients at various trial centers.

 

2.               Project  Description.  Explain
the need for the Revolving Loan Fund Assistance being requested.  (The applicant’s explanation may be attached
on a separate sheet if sufficient space is not provided):  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 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.

 

3

 

Has any part of this project
been started? o Yes x No

 

Does the project involve
relocation of economic activity from elsewhere? o Yes x No

 

If yes, please explain:

 

 

 

3.               Job
Creation/Retention (Full Time Equivalents):

 

	
  150

  	
  Number
  of permanent jobs created as a result of this project.

  
	
   

  	
   

  
	
  11

  	
  Number
  of permanent jobs created within 12 months of loan award.

  
	
   

  	
   

  
	
  24

  	
  Number
  of permanent jobs created within 24 months of loan award.

  
	
   

  	
   

  
	
   

  	
  (Cumulative
  includes 12 month figure)

  
	
   

  	
   

  
	
  36

  	
  Number
  of permanent jobs retained as a result of the project.

  
	
   

  	
   

  
	
  150

  	
  Number
  of permanent jobs with average wages of $40,000.

  

 

What percentage of sales
will be outside the State of Iowa? 95 to 99%

 

What percentage of sales
will be within the City of Ames? 0 to 1%

 

4.               Description
of the Proposed Financial Package:

 

	
   

  	
   

  	
  Amount

  	
   

  	
  Type

  	
   

  	
  Rate

  	
   

  	
  Term

  	
   

  
	
  Business Contribution

  	
   

  	
  30,780,000

  	
   

  	
  Equity/Internal Cash flow

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  State Assistance*

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Conventional Assistance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Business Contributions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Local Participation - City

  	
   

  	
  200,000

  	
   

  	
  Forgivable Loan

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other - AEDC

  	
   

  	
  200,000

  	
   

  	
  Forgivable Loan

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

*State
has awarded the company a $6 million forgivable loan from the Iowa Values Fund.
The company has reached several milestones and has received $4 million.

 

5.               List
the Names of the Business Owners and the percent of ownership held by each:

 

Names are contained in the
business plan

 

4

 

7.               In What
Form is the Business Contribution to the Project? Please explain
clearly (i.e. Sale of Stock, Equity Investments, Subordinated Debt, etc.):
Equity Investments

 

5

 

Revolving Loan Fund Application

Checklist for Financial Assistance

from the City of Ames, Iowa

Required Submittals/Attachments

 

o            Business Plan

 

o            Profit and Loss
Statements — 3 year historical and 2 year projections

 

o            Balance Sheets —
3 year historical and 2 year projections

 

o            Spread Sheet.

 

o            Letter from
Business Committing to Project and Job Creation.

 

o            Commitment
Letter, letter of Credit from Lender.

 

o            Business
Federal Tax Returns (Past 3 years).

 

o            Individual
Federal Tax Returns of Principal Owners if required.

 

o            Resumes of
Principal Owners and Key Management Personnel.

 

o            Verification of
loans or grants from private lenders, federal, and state programs.

 

o            Letter of
commitment from borrower indicating amount of equity into project and
documentation.

 

o            Corporate
resolution authorizing the application for Revolving Loan Funds.

 

o            Corporate
signatory authorization naming an officer to execute the Application and Loan
Documents, if approved.

 

o            Others (Please
specify):

 

6

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