Document:

atnx-ex10201_199.htm

 

Exhibit 10.20.1

Athenex Pharmaceutical Manufacturing Base Project in Chongqing

Biomedical Industrial Park

Supplementary Agreement (III)

 

Party A: Chongqing Maliu Riverside Development and Investment Co., LTD (Hereinafter referred to as ‘Party A’)

Party B: Athenex Pharmaceuticals (Chongqing)Limited (Hereinafter referred to as ‘Party B’)

Party C: Athenex, Inc. (Hereinafter referred to as ‘Party C’)

In order to facilitate the investment and construction of the Athenex pharmaceutical manufacturing base project in Chongqing Biomedical Industrial Park, and to clarify the terms regarding the construction and installation of active pharmaceutical ingredient plant in the ‘Agreement of Athenex Pharmaceutical Manufacturing Base Project in Chongqing Maliu Riverside Development Zone’ (hereafter referred to as ‘Investment Agreement’), Party A and Party C, adhering to the principle of equality and mutual benefit and development, through friendly consultations, agree to reach this supplementary agreement.

I. The article 4 of Investment Agreement provides that Party A, with the assistance of Party C, shall invest, construct and install the plant in compliance with the US cGMP standard. It is now amended that Party A is responsible for the plant infrastructure construction, and Party B is responsible for the renovation and equipment and equipment installation. Detailed standards are as follows.

Party A shall meet following standards when completing the infrastructure construction and before turning the plant to Party B for use: civil construction shall be completed; external pipe network shall be completed; external doors and windows shall be installed; stair railings shall be installed; lightning protection facilities shall be installed; main fire protection facility shall meet the acceptance standards; clear water standard of the buildings shall be fulfilled. The expenses incurred to meet the above standards shall be covered by Party A.

Party B is responsible for the renovation of the plant and the installation of the equipment, the application for corresponding permits for construction and renovation, the equipment and installation and the renovation certificate, etc. Party B is also responsible for contracting with other party (or parties) for both the design and construction of renovation, equipment and installation, sewage treatment for environment protection upgrades, etc. This costs for the above items shall be borne by Party B.

1

 

The article 4 of Investment Agreement stipulates “Completion before December 31st, 2016.” Due to the adjustment of rights and obligations hereto, Party B and Party C agree to exempt Party A from the relevant liability for breach of contract for failure to complete the project within agreed-upon time, and voluntarily relinquish relevant claims.

Party A shall provide an initial funding of RMB fifty million for the renovation project (including equipment costs and installation related to environmental protection upgrades such as sewage treatment). If the actual cost is less than RMB fifty million, Party B shall return the remaining funds to Party A within five business days upon completion of the renovation project. If the actual costs exceed RMB fifty million, the excess part of the costs shall be borne by Party B. Party B warrants that the source of funds is legitimate and compliant, otherwise Party B shall bear the relevant responsibilities such as making up and compensation to the external parties.

The renovation funds shall be used under the joint supervision by Party A and Party B. An escrow bank account shall be created. With a power of attorney provided by Party C, this account shall be created and monitored jointly by Party A and Party B, to provide funds monthly for Party B's renovation project in accordance with the project progress. When Party B needs to use the funds from the jointly monitored account for the renovation of the plant and the installation of equipment stipulated in this agreement, Party A shall cooperate; if Party A delays the relevant payments and if such delay causes the project schedule to be postponed or (and) Party B to default, Party A shall be responsible to provide compensation to Party B, and shall extend the deadline agreed in this agreement accordingly.

Party B shall reimburse the renovation costs paid by Party A with the accrued interest within three years upon the plant receiving the US cGMP certification (Three years are calculated as thirty-six months from the date of receiving the US cGMP certification). Among them, Party B shall reimburse 20% of the renovation costs with the accrued interest within twelve months, 30% of the renovation costs with the accrued interest within twenty-four months and the remaining renovation costs with the accrued interest within thirty-six month. The funds shall start to bear interest from the date when Party A transfers all the funds stipulated in this agreement to the escrow account. The interest shall be calculated according to the three-year loan interest rate of the People's Bank of China for the same period upon deposit of the full initial funding amount by Party A. The interest-bearing period shall be calculated according to the actual occupation time of the funds.

If Party B fails to obtain the cGMP certification within three years upon the completion and acceptance of the plant, Party B shall return all renovation costs with the accrued interest to Party A, in a single transaction within the first ten business days of the next day. The interests shall start to bear interest from the date when Party A transfers all the funds stipulated in this agreement to the escrow account, which is jointly managed by Party A and Party B. The interest shall be calculated according to the three-year loan interest rate of the People's Bank of China for the same period. 

2

 

Party B warrants that the source of funds is legitimate and compliant, otherwise Party B shall bear the relevant responsibilities such as making up and compensation to the external parties.

II. Other Terms

	
(1)
	
If the terms of the Investment Agreement are not consistent with this agreement, the terms of this agreement shall be used. Otherwise the terms of the original Investment Agreement shall be used. 

	
(2)
	
This agreement has six copies. Each party holds two copies. All copies have equal legal status and are effective from the date of signatures and seals of all parties. 

	
(3)
	
After being effective, this agreement becomes an inseparable part of the Investment Agreement and has the equal legal status as the Investment Agreement. 

	
(4)
	
This agreement shall become effective after being signed by the three parties. 

(There is no text below)

 

	
Party A: Chongqing Maliu Riverside
	
Party B:Athenex Pharmaceuticals

	
 
	
 

	
Development and Investment Co. Ltd.
	
(Chongqing)Limited

	
 
	
 

	
(Signature)
	
(Signature)

	
 
	
 

	
Legal Representative: /s/ Rui Li
	
Legal Representative: /s/ William Zuo

 

 

 

 

	
	
Party C: Athenex, Inc.

	
 

	
(Signature)

	
 

	
Legal Representative:  /s/ William Zuo

	
 

	
Place signed:

	
Date signed:  2019  April  1

 

3atnx-ex10291_197.htm

Exhibit 10.29.1

 

GRANT DISBURSEMENT AGREEMENT AMENDMENT by and between the New York State Urban Development Corporation d/b/a Empire State Development ("ESD" or the "Grantor") and Athenex, Inc. (the "Grantee").

ESD and the Grantee have entered into a Grant Disbursement Agreement with respect to the Project described below and desire to amend such agreement on the following terms:

 

		
	
PROJECT NAME:
	
Athenex Capital

	
 
	
 

	
PROJECT NUMBER:
	
AB127

	
 
	
 

	
ORIGINAL GRANT AMOUNT:
	
$200,000,000

	
 
	
 

	
ADDITIONAL GRANT AMOUNT:
	
N/A

	
 
	
 

	
ESD APPROVAL DATE:
	
April 17, 2017

	
 
	
 

	
PACB APPROVAL DATE:
	
May 17, 2017

 

Additional terms and conditions, if any, are set forth in Attachment A.

All other terms and conditions of the Grant Disbursement Agreement, except as modified herein, shall remain in full force and effect.

This agreement is entered into as of the latest date written below:

 

	
NEW YORK STATE URBAN DEVELOPMENT CORPORATION 
d/b/a MP STATE DEVELOPMENT
	
 
	
 

	
/s/ Edwin Lee
	
 
	
July 23, 2019

	
Name: Edwin Lee, Senior Vice President, Loans and Grants
	
 
	
(date)

	
 
	
 
	
 

	
 
	
 
	
 

	
Athenex, Inc.
	
 
	
 

	
/s/ Teresa Bair 
	
 
	
July 24, 2019

	
Name and title: Teresa Bair, Senior Vice President,
Administration and Legal Affiars
	
 
	
(date)

 

 

Attachment A

Additional Conditions: none

Revised Disbursement Terms (Exhibit E; revised as of July 23, 2019)

 

EXHIBIT E: DISBURSEMENT TERMS 
(Revised as of July 23, 2019)

Disbursement

Upon compliance with the terms of this Agreement, and receipt of the fees as set forth below, ESD shall disburse the Grant to the Grantee as follows:

Fees due:Reimbursement for out-of-pocket expenses $494.84 [PAID]

Up to $200,000,000 plus any additional funds available from the $25 million headquarters project (ESD Project No. AA725), will be deposited incrementally, as set forth below, into an ESD held account (the "Imprest Account"). Funds in the Imprest Account, from the time of deposit and until disbursed from such account in accordance with terms to be approved by the ESD Directors, will be invested in accordance with ESD's Investment Guidelines. Funds from the Imprest Account will be used for facility design and construction costs and machinery and equipment ("Project Costs"). Interest earned on the funds deposited in the lmprest Account shall be returned to ESD on a quarterly basis.

I.Initial Advance

An Initial Advance of $50,000,000 will be deposited as an advance in the lmprest Account upon ESD's receipt of an invoice and other documentation as ESD requires. The Grantee may, no more frequently than monthly unless otherwise approved by ESD, seek authorization to release funds from the Imprest Account to pay for design/construction invoices due and payable as Project Costs in compliance with ESD Design and Construction Requirements, assuming all project approvals have been completed and funds are available. Grantee may seek additional authorizations to release funds from the Imprest Account as needed to pay for Machinery and Equipment costs as Project Costs, assuming all project approvals have been completed and funds are available. Each subsequent disbursement request from the Imprest Account will include the current month's invoices and proof of payment for invoices submitted for the previous month. Expenditures must be incurred on or after September 23, 2014 to be considered eligible project costs and ESD funds may only be used to pay and/or reimburse eligible project costs incurred on or after April 17, 2017.

II.Second Advance

A Second Advance of $50,000,000 will be deposited as an additional advance in the Imprest Account upon full documentation of eligible expenditures of at least 75% of the Initial Disbursement ($37,500,000). The Grantee may, no more frequently than monthly unless otherwise approved by ESD, seek authorization to release funds from the lmprest Account to pay for design/construction invoices due and payable as Project Costs in compliance with ESD Design and Construction Requirements, assuming all project approvals have been completed and funds are available. Grantee may seek additional authorizations to release funds from the Imprest Account as needed to pay for Machinery and Equipment costs as Project Costs, assuming all project approvals have been completed and funds are available. Each subsequent payment requisition will include the current month's invoices and proof of payment for invoices submitted for the previous month.

 

EXHIBIT E: DISBURSEMENT TERMS, (Revised as of July 23, 2019)

continued

Expenditures must be incurred on or after September 23, 2014 to be considered eligible project costs and ESD funds may only be used to pay and/or reimburse eligible project costs incurred on or after April 17, 2017.

III.Third Advance

A Third Advance of $50,000,000 will be deposited as an additional advance in the Imprest Account upon full documentation of eligible expenditures of at least $82,600,000 cumulative. The Grantee may, no more frequently than monthly unless otherwise approved by ESD, seek authorization to release funds from the Imprest Account to pay for design/construction invoices due and payable as Project Costs in compliance with ESD Design and Construction Requirements, assuming all project approvals have been completed and funds are available. Grantee may seek additional authorizations to release funds from the Imprest Account as needed to pay for Machinery and Equipment costs as Project Costs, assuming all project approvals have been completed and funds are available. Each subsequent payment requisition will include the current month's invoices and proof of payment for invoices submitted for the previous month. Expenditures must be incurred on or after September 23, 2014 to be considered eligible project costs and ESD funds may only be used to pay and/or reimburse eligible project costs incurred on or after April 17, 2017.

IV.Final Advance

A Final Advance of $50,000,000 plus any additional funds available from the $25 million headquarters project will be deposited as an additional advance in the Imprest Account upon full documentation of eligible expenditures of $130,000,000 cumulative. The Grantee may, no more frequently than monthly unless otherwise approved by ESD, seek authorization to release funds from the lmprest Account to pay for invoices due and payable for Project Costs in compliance with ESD Design and Construction Requirements, assuming all project approvals have been completed and funds are available. Each subsequent payment requisition will include the current month's invoices and proof of payment for invoices submitted for the previous month. Expenditures must be incurred on or after September 23, 2014 to be considered eligible project costs and ESD funds may only be used to pay and/or reimburse eligible project costs incurred on or after April 17, 2017.

Payments will be made upon presentation to ESD of an invoice and such other documentation, as ESD may require.

The Grantee will report annually on Operational Costs and, within ten years of Manufacturing Facility Completion provide a detailed report describing the impact and effectiveness of the project containing such information and in a format as reasonably required by ESD. The Grantee will document $1.52 Billion in operational and facility costs in accordance with the Alliance Agreement.

 

EXHIBIT E: DISBURSEMENT TERMS, (Revised as of July 23, 2019)

continued

Expenditure investment goals as required in Exhibit C must be incurred on or after September 23, 2014 to be considered eligible project costs.

Within 12 months of the Final Advance, ESD will require full documentation of eligible expenditures including invoices and proof of payment of 100% of the Initial Disbursement, Second Disbursement, Third Disbursement and Final Disbursement ($200,000,000 cumulative).

ESD reserves the right to require additional documentation to support payment requisitions and/or draw down requests.

Grantee must submit all documentation for the final disbursement of the Grant by no later than April 1, 2022 or such other date as agreed to by the parties in writing.

Wire Transfer Information:

If ESD assistance is $10,000 or greater, please provide a Letter from a financial officer of the

Grantee certifying to the accuracy of the following information:

 

		
	
Bank Name:
	
#####

	
ABA#:
	
#####

	
Account Name:
	
#####

	
Account #: 
	
#####

 

 

EXHIBIT F: CAPITAL GRANT PAYMENT REQUISITION FORM

Athenex Capital, Project #AB127 Disbursement Request Amount: $50,000,000

ESD funds may be applied by Grantee in payment or reimbursement of the following costs:

 

 

	
Minimum Expense Incurred (per Exhibit E)
	
See Exh.bit E

.
	
•
	
4
	
1
	
 

	
Employment Goals

(per Exhibit E)
	
Eligible Expenses
	
A Actual Costs 
Incurred 
(this request)
	
B. ESD Share 
(this request)
	
C. Cumulative 
Amount Previously 
Received from ESD
	
0. Grant Amount 
(Cumulative if mult - 
year grant)
	
E. (D C-B) 
Grant Balance 
Remaining

	
N/A
	
Design/Build, Machinery & Equipment
	
N/A
	
N/A
	
50,000,000
	
$50,000,000
	
-

	
N/A
	
Design/Build, Machinery & Equipment
	
N/A
	
N/A
	
50,000,000
	
50,000,000
	
-

	
N/A
	
Design/Build, Machinery & Equipment
	
$82,612,904
	
50,000,000
	
 
	
50,000,000
	
 

	
N/A
	
Design/Build, Machinery & Equipment
	
N/A
	
-
	
 
	
50,000,000
	
50,000,000

	
 
	
TOTAL
	
$82,612,904
	
$50,000,000
	
$100,000,000
	
$200,000,000
	
$50,000,000

 

CERTIFICATION

I hereby warrant and represent to Empire State Development ("ESD") that:

	
 
	
1)
	
To the best of my knowledge, information and belief, the expenditures for which Athenex, Inc. is seeking payment and/or reimbursement comply with the requirements of the Agreement between ESD and Athenex, Inc., are eligible expenses, and that the payment and/or reimbursement of expenditures for which it is seeking payment and/or reimbursement from ESD does not duplicate reimbursement or disbursement of costs and/or expenses from any other source. These findings will be subject to audit by ESD's Internal Audit Department.

	
 
	
2)
	
I have the authority to submit this invoice on behalf of Athenex, Inc. The project, or portion thereof for which this invoice relates, has been completed in the manner outlined in the Agreement.

	
 
	
3)
	
I hereby attach the following documents for ESD approval, in support of this requisition (note N/A if not applicable for this request):

XExhibit B:         Design & Construction Requirements

N/A Exhibit G-2: Staffing Plan

N/A Exhibit G-3: Workforce Employment Utilization Report

tjLk Exhibit G-4: M/WBE Utilization Plan

N/A Exhibit G-5: Waiver Request Form

N/A Exhibit G-6: M/WBE Contractor Compliance and Payment Report

	
 
	
N/A Exhibit H:
	
Report of Employment & NYS-45 form including cover page and NYS-45-ATT attachment (with social security numbers blocked out and location indicated as necessary) or equivalent documentation of employees, location, status, and payroll information.

	
 
	
X
	
A copy of all current policies of insurance (or certificates thereof) in full compliance with the terms and conditions of Section 12 of the Agreement

 

EXHIBIT F: CAPITAL GRANT PAYMENT REQUISITION FORM, continued

	
 
	
4)
	
There have been no materially adverse changes in the financial condition of the Grantee, except as disclosed in writing to ESD, from the date of submission of the Application to the date hereof.

	
 
	
5)
	
The Grantee has acted responsibly from the date of submission of the Application to the date hereof in full compliance with the terms and conditions of Section 7 of the Agreement.

	
 
	
6)
	
Representations, Warranties and Covenants made in Section 8 of the Agreement are still true, complete and accurate,-- unless waived in Exhibit I of the Agreement.

 

					
	
Signature: 
	
/s/ Teresa Bair
	
 
	
Name:
	
Teresa Bair

	
 
	
 
	
 
	
 

	
Title: 
	
Senior Vice President, Administration & Legal Affairs
	
 
	
Date:
	
July 24, 2019

 

At any point in the course of your project, ESD would appreciate feedback regarding this ESD program. Please comment on the application, project approval, and/or payment reimbursement process or any other interactions with ESD related to the project. You may submit your feedback under separate cover to Edwin Lee, VP — Loans and Grants, 633 Third Avenue, NY, NY 10017. Please include your Project Nu mber and Project Name which are listed at the top of this exhibit on your submission.

Thank you.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00298-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00298-of-00352.parquet"}]]