So, has the 4 Chinese companies paid the billed $1

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On February 28, 2020, we entered into a Collaboration Agreement (the “COVID-19 Collaboration Agreement”) with Beijing Zhonghua Investment Fund Management Co., LTD and Sinotek-Advocates International Industry Development (Shenzhen) Co., Ltd. (an affiliate of China Technology Exchange) (the “CTE Parties”), to develop a COVID-19 vaccine using the Ii-Key Peptide vaccine technology of Generex’s majority owned subsidiary, NGIO. Under the COVID-19 Collaboration Agreement, we will make the Ii-Key Peptide vaccine technology available to the CTE Parties. The Chinese parties will provide facilities and personnel for the development of the COVID-19 vaccine under Generex/NGIO technical guidance. The development will include synthesis, analysis and human trials through Phase III, if warranted, in China. The Chinese parties will have exclusive rights to use and commercialize the COVID-19 technology and products in China.



The CTE Parties have agreed to set-aside $1,000,000 for Generex/NGIO expenses during development and human clinical trials. If development and testing are successful, the parties will enter into further collaboration and technology transfer agreements. In this event, the CTE Parties will pay, for the benefit of NGIO, the following:



• A technology transfer fee of $5 million.


• A 20% royalty.


• Its accumulated cost for development of the technology.


The COVID-19 Collaboration Agreement provides Generex will receive a $2,000,000 breakup fee if China develops a cure for COVID-19. If we cease our participation, we would be required to repay all amounts paid by the CTE Parties on our behalf. The parties’ activities under this Agreement, including the clinical trials, are subject to approval under China Technology Import Contract Management Regulations as well as the Chinese version of the FDA. Please see Exhibit 10.30 for a copy of the COVID-19 Collaboration Agreement filed with this Registration Statement on Form S--1, of which this prospectus forms a part.

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