1. City Council
Regular Session
June 26, 2014

2.  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

3.  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

4.  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

8. 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

9. 2013
63 FTEs
$5.3 million
2018
75 FTEs
$3.75 million
2012
31 FTEs
$1.9 million
2018
100 FTEs
$6.0 million2014
74 FTEs
$5.0+ million RVP
CS