Kalon BiotherapeuticsCity Council

Regular SessionJune 26, 2014

Private company formed in Spring 2011◦ TAMUS & OOG-ETF

Commercial Development and Manufacturing Organization (CDMO)◦ Chemical, biological, radiological, and nuclear (CBRN) vaccines and

medical countermeasures

Texas A&M CIADM◦ Headquarters◦ Live Virus Vaccine Facility◦ Pandemic Influenza Facility

Background

Corporate headquarter expansion

Pandemic Influenza Facility◦~120,000 SF current good manufacturing practice (cGMP)◦ Can produce up to 50m vaccine doses within four months

Live Virus Vaccine Facility◦~50,000 SF biosafety level 3 (BSL3)◦ Process development, clinical supply, and commercial

production facility capable of undertaking multiple projects

One Health Plus Biocorridor

Incentives:◦ Seven year incentive schedule◦ Not to exceed $1,093,548.61 over term of the agreement◦ Incentive calculated as a percentage of property taxes paid

Kalon’s Obligations:◦ $70 million real and personal property valuation◦ 100 FTEs with an annual payroll of $6 million beginning 2018

City’s Clawbacks:◦ No obligation to approve disbursement for any year in default

Condition Precedent◦ City of Bryan Economic Development Agreement: $411,451.39

Economic Development Agreement

Questions / Direction

2015 - Year 0: Completion of Construction

2016 - Year 1: $196,838.75

2017 - Year 2: $174,967.78

2018 - Year 3: $153,096.81

2019 - Year 4: $153,096.81

2020 - Year 5: $153,096.81

2021 - Year 6: $153,096.81

2022 - Year 7: $109,354.86

$70 million property valuation

100 FTEs w/$6 million payroll

201363 FTEs

$5.3 million2018

75 FTEs$3.75 million

201231 FTEs

$1.9 million

2018100 FTEs

$6.0 million201474 FTEs

$5.0+ millionRVP

CS