Document:

EXHIBIT 10.10

                             GEORGETOWN SAVINGS BANK
                           Change-in-Control Agreement

         THIS  CHANGE-IN-CONTROL  AGREEMENT (the  "Agreement") is made effective
this 19th day of January 2007 (the "Effective Date"), between Georgetown Savings
Bank,  a  federally   chartered  savings  bank  with  its  principal  office  in
Georgetown,  Massachusetts (the "Bank"),  and Charles R. Shediac  ("Executive").
For purposes of this  Agreement,  any  references  to the  "Company"  shall mean
Georgetown Bancorp, Inc., the stock holding company of the Bank.

                                   WITNESSETH

         WHEREAS,  Executive  has  accepted  employment  with  the  Bank  in the
position of Senior Vice President/Chief Loan Officer (the "Executive Position");

         WHEREAS,   the  Bank  desires  to  be  ensured  of  Executive's  active
participation in the business of the Bank; and

         WHEREAS,  in order to induce  Executive to accept  employment  with the
Bank and to provide  further  incentive to achieve the financial and performance
objectives of the Bank,  the parties  desire to specify the  severance  benefits
which shall be due Executive in the event that his  employment  with the Bank is
terminated  under  specified  circumstances  in  connection  with or following a
change in control of the Bank and/or the Company.

         NOW  THEREFORE,  in  consideration  of  the  mutual  agreements  herein
contained,  and upon the other terms and conditions  hereinafter  provided,  the
parties hereby agree as follows:

         1.  Definitions.  The following words and terms shall have the meanings
set forth below for the purposes of this Agreement:

         (a) Annual Base Salary.  Executive's "Base Salary" for purposes of this
             ------------------
Agreement  shall mean the base salary paid to  Executive  by the Bank (i) during
the calendar  year in which the Date of  Termination  occurs  (determined  on an
annualized basis), or (ii) the calendar year immediately  preceding the calendar
year in which the Date of Termination occurs, whichever is greater.

         (b) Cause. Termination of Executive's employment for "Cause" shall mean
             -----
termination  because  of  personal  dishonesty,  willful  misconduct,  breach of
fiduciary duty involving personal profit,  intentional failure to perform stated
duties,  willful  violation of any law, rule or  regulation  (other than traffic
violations or similar  offenses) or final  cease-and-desist  order.  Executive's
employment shall not be terminated for "Cause" in accordance with this paragraph
for any act or action  or  failure  to act which is  undertaken  or  omitted  in
accordance  with a  resolution  of the  Bank's  board of  directors  ("Board  of
Directors") or upon advice of the Bank's counsel.

         (c)  Change in  Control.  "Change  in  Control"  shall mean a change in
              ------------------
control of a nature that:

         (i) would be  required  to be  reported in response to Item 5.01 of the
current report on Form 8-K, as in effect on the date hereof, pursuant to Section
13 or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act"); or

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         (ii)  results in a Change in Control of the Bank or the Company  within
the meaning of the Home Owners' Loan Act, as amended  ("HOLA"),  and  applicable
rules and regulations  promulgated  thereunder,  as in effect at the time of the
Change in Control; or

         (iii)  without  limitation  such a Change in Control shall be deemed to
have  occurred at such time as (a) any "person" (as the term is used in Sections
13(d) and 14(d) of the Exchange  Act) is or becomes the  "beneficial  owner" (as
defined in Rule 13d-3  under the  Exchange  Act),  directly  or  indirectly,  of
securities of the Company  representing 25% or more of the combined voting power
of Company's  outstanding  securities except for any securities purchased by the
Bank's employee stock ownership plan or trust; or (b) individuals who constitute
the Board on the date hereof  (the  "Incumbent  Board")  cease for any reason to
constitute  at least a majority  thereof,  provided  that any person  becoming a
director  subsequent to the date hereof whose election was approved by a vote of
at least  three-quarters  of the directors  comprising the Incumbent  Board,  or
whose nomination for election by the Company's  stockholders was approved by the
same  Nominating  Committee  serving  under an  Incumbent  Board,  shall be, for
purposes  of this  clause  (b),  considered  as  though  he were a member of the
Incumbent Board; or (c) a plan of reorganization, merger, consolidation, sale of
all or  substantially  all the  assets  of the Bank or the  Company  or  similar
transaction  in  which  the Bank or  Company  is not the  surviving  institution
occurs;  or  (d) a  proxy  statement  is  distributed  soliciting  proxies  from
stockholders of the Company, by someone other than the current management of the
Company,  seeking  stockholder  approval of a plan of reorganization,  merger or
consolidation   of  the  Company  or  similar   transaction  with  one  or  more
corporations,  as a result  of which  the  outstanding  shares  of the  class of
securities  then subject to the Plan are exchanged for or converted into cash or
property or securities not issued by the Company;  or (e) a tender offer is made
for 25% or more of the voting  securities  of the Company  and the  shareholders
owning  beneficially or of record 25% or more of the  outstanding  securities of
the  Company  have  tendered  or offered to sell their  shares  pursuant to such
tender offer and such tendered  shares have been accepted by the tender offeror.
Notwithstanding anything in this subsection to the contrary, a Change in Control
shall not be deemed to have occurred upon the conversion of the Company's mutual
holding company parent to stock form, or in connection  with any  reorganization
used to effect such a conversion.

         (d) Code.  "Code"  shall mean the  Internal  Revenue  Code of 1986,  as
             ----
amended.

         (e)  Date of  Termination.  "Date  of  Termination"  shall  mean (i) if
              --------------------
Executive's  employment is terminated for Cause, the date on which the Notice of
Termination is given,  and (ii) if Executive's  employment is terminated for any
other reason, the date specified in the Notice of Termination.

         (f) Good Reason. Termination by Executive of Executive's employment for
             -----------
"Good Reason" shall mean termination by Executive  following a Change in Control
based on:

         (i) the  failure  to  elect  or  reelect  or to  appoint  or  reappoint
Executive to the Executive Position, unless consented to by Executive;

         (ii) a substantial adverse and material change in Executive's function,
duties, or responsibilities;

         (iii) a substantial  and material  reduction in Annual  Compensation or
fringe benefits of Executive from those being provided  immediately prior to the
Change in Control  (except for any  reduction  that is part of an  employee-wide
reduction in pay or benefits);

         (iv) a liquidation or dissolution of the Bank;

         (v) material breach of this Agreement by the Bank; or

         (vi) a relocation of Executives principal place of employment more than
twenty  five (25) miles  from its  location  immediately  prior to the Change in
Control.

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         (g) Notice of  Termination.  Any purported  termination  of Executive's
             ----------------------
employment in  connection  with or following a Change in Control for any reason,
including  without  limitation  for  Cause,  or by  Executive  for  any  reason,
including  without  limitation  due to Retirement  or for Good Reason,  shall be
communicated by written  "Notice of Termination" to the other party hereto.  For
purposes of this Agreement,  a "Notice of Termination" shall mean a dated notice
which (i) indicates the specific reasons for termination, (ii) in the event of a
termination  for Good  Reason  sets  forth in  reasonable  detail  the facts and
circumstances  claimed  to  provide  a  basis  for  termination  of  Executive's
employment,  and (iii) specifies a Date of Termination,  which shall be not less
than thirty (30) nor more than ninety (90) days after such Notice of Termination
is given, except in the case of the Bank's termination of Executive's employment
for Cause, which shall be effective immediately; and (iv) is given in the manner
specified in Section 11 hereof.

         (h)  Retirement.  "Retirement"  shall mean  termination  of Executive's
              ----------
employment at age 65 or in accordance  with any  retirement  policy  established
with Executive's consent with respect to him. Upon termination of Executive upon
Retirement,  no amounts or benefits shall be due Executive under this Agreement,
and Executive shall be entitled to all benefits under any retirement plan of the
Bank and other plans to which Executive is a party.

         (i)   Separation   from  Service.   "Separation   from  Service"  means
               --------------------------
Executive's death, Retirement, or other termination of employment by the Bank.

         No  Separation  from  Service  shall be deemed to occur due to military
leave,  sick  leave or other  bona fide  leave of  absence if the period of such
leave does not exceed six months or, if longer,  so long as Executive's right to
reemployment is provided by law or contract. If the leave exceeds six months and
Executive's  right to reemployment  is not provided by law or by contract,  then
Executive  shall have a Separation  from  Service on the first date  immediately
following such six-month period.

         Executive  shall not be treated as having a Separation  from Service if
Executive  provides  more than  insignificant  services  for the Bank  following
Executive's  actual  or  purported  termination  of  employment  with the  Bank.
Services  shall be  treated  as more than  insignificant  if such  services  are
performed  at an  annual  rate  that is at least  equal  to 20% of the  services
rendered  by the  Executive  for the Bank,  on average,  during the  immediately
preceding  three full  calendar  years of  employment  (or if employed less than
three years, such shorter period of employment) and the annual base compensation
for such  services  is at least equal to 20% of the  average  base  compensation
earned during the final three full calendar  years of employment (or if employed
less than three years, such shorter period of employment).

         Where Executive continues to provide services to a previous employer in
a capacity  other than as an  employee,  a  Separation  from Service will not be
deemed to have  occurred if Executive  is  providing  services at an annual rate
that is 50% or more of the services rendered,  on average,  during the immediate
preceding  three full  calendar  years of  employment  (or if employed less than
three  years,  such lesser  period) and the annual  base  compensation  for such
services is 50% or more of the annual base compensation  earned during the final
three full calendar years of employment (or if less, such lesser period).

         (j) Specified  Employee.  "Specified  Employee" means a key employee of
             -------------------
the Bank within the meaning of Code Section 416(i) without regard to paragraph 5
thereof,  determined  in  accordance  with Code Section 409A and any proposed or
final regulations promulgated thereunder.

         2. Term of Agreement.  The term of this  Agreement  shall be for twelve
(12)  months,  commencing  on  the  Effective  Date.  Commencing  on  the  first
anniversary of the Effective  Date, and on each annual  anniversary  thereafter,
the term of this Agreement shall  automatically  extend for an additional twelve
(12)  months,  unless

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the Board of Directors of the Bank gives  notice in  accordance  with Section 11
hereof of a determination not to extend the term of this Agreement. Such written
notice of the  election  not to extend  must be given not less than  thirty (30)
days prior to any such  anniversary  date and such termination of this Agreement
shall take effect 12 months from such anniversary date. References herein to the
term of this  Agreement  shall  refer both to the  initial  term and  successive
terms.

         3. Benefits Upon Termination.  If Executive's employment by the Bank is
terminated  subsequent  to a  Change  in  Control  and  during  the term of this
Agreement by (i) the Bank for any reason other than Cause, or Executive's  death
or (ii) Executive for Good Reason, then the Bank shall:

         (a) pay to Executive,  in a lump sum as of the Date of  Termination,  a
cash severance amount equal to one (1) times Executive's Annual Base Salary, and

         (b) provide, at the Bank's expense,  coverage of Executive (and family,
if applicable) under all life,  medical and dental insurance offered by the Bank
in which Executive  participated  immediately  prior to the Date of Termination,
except to the extent such coverage may be changed in its application to all Bank
employees.  Such coverage  shall cease twelve (12) months  following the Date of
Termination.  In the alternative,  the Bank shall pay to Executive a cash amount
equal to Executive's  cost of obtaining  such benefits on his own,  adjusted for
any federal or state income taxes Executive has to pay on the cash amount.

         (c)  Notwithstanding  any provision to the contrary herein,  and to the
extent  necessary to comply with Code Section  409A, if  applicable,  no payment
shall  be made to  Executive  pursuant  to this  Agreement  until  such  time as
Executive has a Separation  from Service.  Further,  if Executive is a Specified
Employee as of the Date of Termination, and if required by Code Section 409A, no
payments  will be made to  Executive  hereunder  prior to the  first  day of the
seventh month following his Separation from Service.

         4. Limitation of Benefits under Certain Circumstances.  If the payments
and benefits  pursuant to Section 3 hereof,  either alone or together with other
payments and benefits  which  Executive  has the right to receive from the Bank,
would  constitute  a "parachute  payment"  under  Section 280G of the Code,  the
payments and benefits  payable by the Bank pursuant to Section 3 hereof shall be
reduced, in the manner determined by Executive,  by the amount, if any, which is
the  minimum  necessary  to result in no portion of the  payments  and  benefits
payable by the Bank under Section 3 being non-deductible to the Bank pursuant to
Section  280G of the Code and  subject to the excise tax imposed  under  Section
4999 of the  Code.  The  determination  of any  reduction  in the  payments  and
benefits  to be made  pursuant  to Section 3 shall be based upon the  opinion of
independent  counsel selected by the Bank's  independent  public accountants and
paid by the Bank.  Such counsel shall prepare the foregoing  opinion in no event
later  than  thirty  (30)  days  from the Date of  Termination,  and may use any
actuaries as such counsel deems necessary or advisable. Nothing contained herein
shall result in a reduction of any payments or benefits to which  Executive  may
be entitled upon termination of employment under any circumstances other than as
specified  in this  Section  4, or a  reduction  in the  payments  and  benefits
specified in Section 3 below zero.

         5. No Mitigation; Exclusivity of Benefits.

         (a)  Executive  shall not be  required  to  mitigate  the amount of any
benefits  hereunder by seeking  other  employment  or  otherwise.  The amount of
severance to be provided pursuant to Section 3(a) hereof shall not be reduced by
any  compensation  earned by  Executive  as a result of  employment  by  another
employer after the Date of Termination or otherwise.

         (b) The specific arrangements referred to herein are in addition to and
not intended to exclude any other  benefits  which may be available to Executive
upon a  termination  of employment  with the Bank  pursuant to employee  benefit
plans of the Bank or otherwise.

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         6. Withholding.  All payments required to be made by the Bank hereunder
to  Executive  shall be  subject to the  withholding  of such  amounts,  if any,
relating  to tax  and  other  payroll  deductions  as the  Bank  may  reasonably
determine should be withheld pursuant to any applicable law or regulation.

         7. Nature of Employment and Obligations.

         (a) Nothing  contained  herein  shall be deemed to create  other than a
terminable at will employment  relationship between the Bank and Executive,  and
the Bank may terminate Executive's  employment at any time, subject to providing
any payments specified herein in accordance with the terms hereof.

         (b) Nothing contained herein shall create or require the Bank to create
a trust of any kind to fund any benefits which may be payable hereunder,  and to
the extent that  Executive  acquires a right to receive  benefits  from the Bank
hereunder,  such  right  shall be no  greater  than the  right of any  unsecured
general creditor of the Bank.

         8. Source of  Payments.  It is intended by the parties  hereto that all
payments  provided  in this  Agreement  shall be paid in cash or check  from the
general funds of the Bank.

         9. No Attachment.

         (a) Except as required by law, no right to receive  payments under this
Agreement shall be subject to anticipation,  commutation,  alienation, reach and
apply action, sale, assignment,  encumbrance,  charge, pledge, or hypothecation,
or to execution, attachment, levy, or similar process or assignment by operation
of law, and any attempt,  voluntary  or  involuntary,  to affect any such action
shall be null, void, and of no effect.

         (b) This Agreement  shall be binding upon, and inure to the benefit of,
Executive, the Bank, and their respective successors and assigns.

         10.  Assignability.  The Bank may assign this  Agreement and its rights
and obligations hereunder in whole, but not in part, to any corporation, bank or
other entity with or into which the Bank may hereafter  merge or  consolidate or
to which the Bank may transfer all or substantially all of its assets, if in any
such case said  corporation,  bank or other  entity  shall  expressly in writing
assume  all  obligations  of the  Bank  hereunder  as  fully  as if it had  been
originally made a party hereto,  but may not otherwise  assign this Agreement or
their rights and obligations hereunder. The Executive may not assign or transfer
this Agreement or any rights or obligations hereunder.

         11. Notice.  For the purposes of this Agreement,  notices and all other
communications  provided for in this Agreement  shall be in writing and shall be
deemed  to have been duly  given  when  delivered  or  mailed  by  certified  or
registered mail,  return receipt  requested,  postage prepaid,  addressed to the
respective addresses set forth below:

                  To the Bank:             Georgetown Savings Bank
                                           2 East Main Street
                                           Georgetown, Massachusetts 01833

                  To Executive:            Charles R. Shediac
                                           33 Sleeper Street, Suite 505
                                           Boston, MA 02210

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12. Amendment;  Waiver. No provisions of this Agreement may be modified,  waived
or  discharged  unless such  waiver,  modification  or discharge is agreed to in
writing  and  signed  by  Executive  and  such  officer  or  officers  as may be
specifically  designated by the Board of Directors of the Bank to sign on behalf
of the Board of  Directors.  No  waiver  by any party  hereto at any time of any
breach by any other  party  hereto of, or  compliance  with,  any  condition  or
provision of this  Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time.

13. Governing Law. The validity, interpretation, construction and performance of
this  Agreement   shall  be  governed  by  the  laws  of  the   Commonwealth  of
Massachusetts.

14. Headings. The section headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or  interpretation  of
this Agreement.

15.  Validity.  The  invalidity  or  unenforceability  of any  provision of this
Agreement  shall  not  affect  the  validity  or  enforceability  of  any  other
provisions of this Agreement, which shall remain in full force and effect.

16.  Counterparts.  This Agreement may be executed in one or more  counterparts,
each of which shall be deemed to be an original but all of which  together  will
constitute one and the same instrument.

17. Miscellaneous Provisions.

   (a)   This  Agreement  does not create any obligation on the part of the Bank
         to make payments to (or to employ) Executive unless a Change in Control
         of the Bank or the Company shall have  occurred.  Following a Change in
         Control,  Executive's employment may be terminated at any time, but any
         termination,  other than  termination  for Cause,  shall not  prejudice
         Executive's   right  to  compensation  or  other  benefits  under  this
         Agreement.   The  Executive   shall  not  have  the  right  to  receive
         compensation  or other  benefits for any period after  termination  for
         Cause as defined in Section 1(b) hereof.

   (b)   The Bank's Board may terminate Executive's  employment at any time, but
         any termination by the Bank's Board other than termination for Cause as
         defined in Section 1(b) hereof shall not prejudice Executive's right to
         compensation  or other benefits under this  Agreement.  Executive shall
         have no right to receive  compensation or other benefits for any period
         after termination for Cause.

   (c)   If Executive is suspended  from office  and/or  temporarily  prohibited
         from  participating  in the  conduct of the Bank's  affairs by a notice
         served under Section 8(e)(3) (12 U.S.C.  ss.1818(e)(3))  or 8(g)(1) (12
         U.S.C.  ss.1818(g)(1))  of the Federal Deposit  Insurance Act ("FDIA"),
         the Bank's obligations under this contract shall be suspended as of the
         date of  service,  unless  stayed by  appropriate  proceedings.  If the
         charges in the notice are dismissed, the Bank may in its discretion (i)
         pay  Executive  all or  part of the  compensation  withheld  while  its
         contract  obligations were suspended and (ii) reinstate (in whole or in
         part) any of its obligations which were suspended.

   (d)   If   Executive   is  removed   and/or   permanently   prohibited   from
         participating  in the conduct of the Bank's  affairs by an order issued
         under Section 8(e)(4) (12 U.S.C.  ss.1818(e)(4))  or 8(g)(1) (12 U.S.C.
         ss.1818(g)(1))  of the FDIA,  all  obligations  of the Bank  under this
         contract  shall  terminate as of the effective  date of the order,  but
         vested rights of the contracting parties shall not be affected.

   (e)   If the Bank is in default as  defined  in  Section  3(x)(1)  (12 U.S.C.
         ss.1813(x)(1))  of the FDIA,  all  obligations  of the Bank  under this
         contract shall terminate as of the date of default,  but this paragraph
         shall not affect any vested rights of the contracting parties.

                                       25
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   (f)   All obligations under this contract shall be terminated,  except to the
         extent  determined  that  continuation of the contract is necessary for
         the continued  operation of the Bank, (i) by the Director of the OTS or
         his or her  designee,  at the time the FDIC enters into an agreement to
         provide  assistance  to or on  behalf of the Bank  under the  authority
         contained in Section 13(c) (12 U.S.C.  ss.1823(c)) of the FDIA; or (ii)
         by  Executive  or his  designee at the time  Executive  or his designee
         approves a supervisory  merger to resolve problems related to operation
         of the Bank or when the Bank is  determined  by  Executive  to be in an
         unsafe  or  unsound  condition.  Any  rights of the  parties  that have
         already vested, however, shall not be affected by such action.

   (g)   Notwithstanding  any other provision of this Agreement to the contrary,
         any  payments  made  to  Executive  pursuant  to  this  Agreement,   or
         otherwise,  are subject to and conditioned  upon their  compliance with
         Section 18(k) of the FDIA (12 U.S.C.  ss.  1828(k)) and the regulations
         promulgated thereunder, including 12 C.F.R. Part 359.

18.  Reinstatement  of Benefits Under Section 17(g).  In the event  Executive is
suspended and/or temporarily prohibited from participating in the conduct of the
Bank's  affairs by a notice  described in Section  17(c)  hereof (the  "Notice")
during the term of this  Agreement and a Change in Control,  as defined  herein,
occurs,  the Bank  will  assume  its  obligation  to pay and  Executive  will be
entitled to receive all of the termination benefits provided for under Section 3
of this  Agreement  upon the  Bank's  receipt of a  dismissal  of charges in the
Notice.

19. Arbitration.  Any dispute or controversy arising under or in connection with
this Agreement shall be settled  exclusively by arbitration,  conducted before a
panel of three  arbitrators  sitting in a location  selected  by the Bank within
fifty (50) miles from the location of the Bank's main office, in accordance with
the rules of the American Arbitration  Association then in effect.  Judgment may
be entered on the arbitrator's award in any court having jurisdiction; provided,
however,  that Executive  shall be entitled to seek specific  performance of his
right to be paid  until  the Date of  Termination  during  the  pendency  of any
dispute or controversy arising under or in connection with this Agreement, other
than in the case of a termination for Cause.

20. Payment of Costs and Legal Fees. All reasonable costs and legal fees paid or
incurred by  Executive  pursuant  to any  dispute or question of  interpretation
relating to this Agreement  shall be paid or reimbursed by the Bank if Executive
is  successful  on the  merits  pursuant  to a legal  judgment,  arbitration  or
settlement.

21. Confidentiality. Executive recognizes and acknowledges that the knowledge of
the  business  activities  and plans  for  business  activities  of the Bank and
affiliates  thereof,  as it may exist from time to time, is a valuable,  special
and unique  asset of the  business of the Bank.  Executive  will not,  during or
after the term of his employment,  disclose any knowledge of the past,  present,
planned or considered  business  activities of the Bank or affiliates thereof to
any  person,  firm,  corporation,  or other  entity  for any  reason or  purpose
whatsoever  (except for such disclosure as may be required to be provided to the
Office of Thrift  Supervision,  the Federal Deposit  Insurance  Corporation,  or
other bank  regulatory  agency with  jurisdiction  over the Bank or  Executive).
Notwithstanding the foregoing,  Executive may disclose any knowledge of banking,
financial and/or economic principles, concepts or ideas which are not solely and
exclusively  derived from the business  plans and  activities of the Bank or its
affiliates, and Executive may disclose any information regarding the Bank or its
affiliates which is otherwise publicly available or which Executive is otherwise
legally  compelled  to  disclose.  In the event of a breach by  Executive of the
provisions of this Section 21, the Bank or its affiliates will be entitled to an
injunction  restraining  Executive  from  disclosing,  in whole or in part,  the
knowledge of the past, present, planned or considered business activities of the
Bank or affiliates thereof, or from rendering any services to any person,  firm,
corporation,  other entity to whom such knowledge, in whole or in part, has been
disclosed or is threatened to be disclosed.  Nothing herein will be construed as
prohibiting  the  Bank  or its  affiliates  from  pursuing  any  other  remedies
available to the Bank or its  affiliates  for such breach or threatened  breach,
including the recovery of damages from Executive.

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22. Entire Agreement.  This Agreement  embodies the entire agreement between the
Bank and  Executive  with  respect to the  matters  agreed to herein.  All prior
agreements  between the Bank and Executive with respect to the matters agreed to
herein are hereby superseded and shall have no force or effect, except that this
Agreement  shall not affect or operate  to reduce  any  benefit or  compensation
inuring  to  Executive  of a kind  elsewhere  provided.  No  provision  of  this
Agreement  shall be  interpreted  to mean that Executive is subject to receiving
fewer benefits than those available to him without reference to this Agreement.

         IN WITNESS  WHEREOF,  this  Agreement is made  effective as of the date
first above written.

                                           GEORGETOWN SAVINGS BANK
Attest:

         /s/ Wendy Girroir                 By:      /s/ Robert E. Balletto
------------------------------------           ---------------------------------
Wendy Girroir                                  Robert E. Balletto, President/CEO

Attest:                                    EXECUTIVE

         /s/ Wendy Girroir                 By:      /s/ Charles R. Shediac
------------------------------------           ---------------------------------
Wendy Girroir                                  Charles R. Shediac, SVP/CLO

                                       27BUSINESS LOAN CONTRACT

EXHIBIT 10.1

 

BUSINESS LOAN CONTRACT-CORPORATION

(Letter of commitment and acceptance of conditions for entering into a loan)

CREDIT LINE NO:

APPROVAL:

Between us: VICTOR ALVAREZ BRAVO, WITH IDENTIFICATION NUMBER 5-0196-0682. married once, Manager of the Bagaces Branch, Guanacaste in my capacity as General Representative without limitation of amount of the national Bank of Costa Rica with Juridical Identification Number 4-000-001021, as stated in the Business Section of the Public Registry, Volume: 547, Page: 12, Line: 3923, hereinafter called for matters relative to this contract, the CREDITOR and CORPORATIONS as Borrower and Debtor: SABILA INDUSTRIAL S.A., with Juridical Identification
 Number 3-101-123588-00 and as Codebtor: FINCA SABILA S.A. with Juridical Identification
 Number 3-101-104967-00, both with address 4.0 kilometers south of the main entrance to Liberia, Guanacaste, on Inter-American Highway, identified for purposes relative to this contract as DEBTOR, REPRESENTED
 BY CARLTON EDGAR TURNER, of age, married, businessman, with Passport Number [ deleted for confidentiality ], A NATIONAL OF THE UNITED STATES OF AMERICA. With address in the Sabila Industrial Plant located 4.0 kilometers south of the main entrance to Liberia, Guanacaste, we hereby agree to enter into this business loan contract, which shall be ruled by legal provisions and the following clauses:

FIRST: THE OBJECT: The first party grants the second party a loan in the amount of TWO MILLION NINE HUNDRED NINETY THOUSAND DOLLARS NET. This loan shall operate as a rotating credit line, enabling the interested party to use such a line by following the investment project already approved, and every time that for reasons of cancellation of any one of the budget items used, there remains an available balance, they may use it again, provided they do not, at any time, exceed the limit established for said approved line of credit.

As users of the loan, they may use it by means of one or several disbursements or sub-loans, for the purposes stipulated in the corresponding investment plan and whose amount shall be approved by the Bank within the approved limit. Amortizations paid to each sub-loan shall automatically generate new availability.

In case the National Bank or the General Superintendent
 of Financial Entities verifies the existence of irregularities in the
 handling of the Credit Opening, the obligation enters into default or there is in general terms a failure to comply with any provision of the regulations or rulings governing this type of credits, the national Bank shall have the right to declare the loan canceled and demand full and immediate payment, by whatever means it considers appropriate.

SECOND: THE TERM: The term for use of the credit line shall be THIRTY SIX MONTHS FOR THE LINE AND UP TO ONE HUNDRED EIGHTY DAYS FOR EACH SUB-LOAN WITHOUT EXCEEDING THE TERM OF THE LINE as of the date of signature of this contract (which may be extended, if the Bank approves, for equal periods of time until completion of five years). Operations derived from this line of credit shall have their own date of maturity and said date will not be extended under any circumstances.

The term for the line of credit and the operations derived from it is independent, operations may be carried out during the entire period of validity of the line of credit, provided, and whenever, none of them has exceeded the maximum term granted to the line.

By reason of the fact that the money generated by this line of credit shall be provided by the creditor Bank to the debtor by means of sub-loans or partial disbursements, the creditor Bank retains the right, and the debtor so accepts it, to retain or stop the delivery of one or several such sub-loans or partial disbursements, if the debtor is not up to date in servicing the loan, both in this and
 in any other credit operations, direct or indirect, that the debtor may have with the creditor Bank, at the time said disbursements or transfers must be made, without responsibility of any kind falling on the creditor Bank.

The debtor hereby accepts that disbursements under the loan shall be made according to availability of funds on the part of the Creditor or possible government restrictions. The entire proceeds
 from this loan, must be invested in the approved investment plan.

For operations derived the term shall be of UP TO ONE HUNDRED EIGHTY DAYS FOR EACH SUB-LOAN WITHOUT EXCEEDING THE
 TERM OF THE LINE OF CREDIT, independently from that granted for the line of credit.

Notwithstanding the term stipulated and due to possible restrictions in, funds available originated by measures established by the Central Bank of Costa Rica or due to other reasons that in its opinion considers convenient to its interests, the Bank may, at its discretion, suspend in a temporary or definitive manner the validity of the Line of Credit based on which sub-loans are formalized, with any responsibility on its, part with the sole obligation of having to notify the holder of the credit, of the situation described above, one month in advance of interruption of funding for matters relative to the credit opening.

The Bank retains the right to suspend in whole or in part the use of the line of credit, when it considers it is convenient to its interests or when the client has changed the destination of funds for which they were granted, without receiving prior approval from the bank, and may cause the loan to become due and payment of the balance may be required immediately, without prejudice to the remaining responsibilities that the debtor may have entered into.

Sub-loans entered into under this line of credit, shall be paid in the Bank's Offices. in the same currency in which the loan was agreed upon, on the date established according to provisions of the corresponding artic1es of the Commerce Code and the Penal Code.

THIRD: INTEREST RATES: The debt shall generate annual ordinary interest rates, that may be adjusted periodically, on the balances due of the capital lent, payable on a QUARTERLY basis. in advance, as of the date in which the document has been duly constituted, at the LIBOR rate for SIX months
 plus 3.00% (11 and See Note), which in no case shall be lower than 6.00%. This rate is the result of a combination of two factors, one the fixed rate of 3.00% PERCENTAGE POINTS according to the BN-PIMEX program This rate is the result of a combination of two factors, one fixed 3.00% percentage points and one variable composed by the international LIBOR 6-MONTH rate valid at the time of formalization, whose quotation appears daily in the MONEY RATES section of the U.S. newspaper the Wall Street Journal and copies of said news medium shall constitute in any case sufficient evidence for confirmation of this rate The National Bank of Cost Rica, obtains the information relative to the above-mentioned interest rate from the Reuters International System and artic1e four hundred ninety seven of the Commerce Code Adjustments to the interest rate shall be made initially on a quarterly basis, but the debtor accepts expressly, formally and irrevocably that the Bank may in the future make adjustments on a monthly, bimonthly, quarterly,
 semi-annually or annually. The interest rate will never be below the bottom rate of 6% percentage points, interest for default: 2% percentage points above the amounts due and additional to the current rate In case of default more than ONE day $10.00 will be charged

FOURTH: CHANGES IN CURRENT INTEREST RATES:
 The debtor understands and accepts expressly that the loan will be formalized with the above described interest rate, due to its credit history with the Bank. Thereby, the debtor also accepts that, if during the. term of the loan and for causes exc1usively of its responsibility, it were to fail to comply with the Credit Regulations established by the General Superintendent of Financial Entities and based on analysis by the SUGEF of the Internal Audit Department of the National Bank, all of which are an integral part of the conditions of this credit for legal matters, which may imply a rating to a credit risk category that is higher than the category "A" initially assigned, the current interest rate to be paid shall be the following: (In case the credit is in dollars inc1ude the following text) One) in risk category "B ONE" or B TWO" it shall pay an interest rate of the Prime Rate plus (Fixed Factor agreed upon plus 0.50 (one half additional point) percentage points; three) in risk category "C ONE, C TWO and C THREE" shall pay an interest rate composed of the Prime Rate plus (Fixed Factor agreed plus 0.75 percentage points; three) in risk category "D" shall pay an interest rate composed of the Prime Rate plus (Fixed Factor agreed upon plus 1.0 (one additional percentage point) percentage points; and four) in risk category "E" it shall pay an interest rate composed of the Prime Rate plus (Fixed Factor agreed upon plus 1.5 (one and a half additional points) percentage points. The debtor expressly recognizes that in no case shall the interest rate be lower than the current bottom rate

FIFTH: INTERESTS FOR DELAYED PAYMENT: they shall be charged on the amortization in default with respect to the capital, at rates than may be higher even by two percentage points than the current rate agreed upon for the loan.

In case the debtor is delayed in payment of its quotas as established in the corresponding loan documents, for more than one working day, it must pay in addition to the interests for delay the amount of $10.00 or its equivalent in colones utilizing the exchange rate for sale for the day of payment, as a commission for administrative expenditures by my (our) default. This payment shall be made every time the delay is repeated. Likewise we accept the collection of the corresponding administrative expenditures relative to the possible collection of the loan by judicial means, in case such a procedure is called for due to delays in servicing the debt, according to current rules.

SIX: RELATIVE TO THE GUARANTEE: As guarantee for this loan. Type TRUST FUND ON THE FOLLOWING PROPERTIES, registered in GUANACASTE: PROPERTY ON PAGE NUMBER 5-23033B-000. SALABLE VALUE: C 2.034.788.821,56 equivalent in dollars to $3,905,544.76 with a RESPONSIBILITY OF 70% OF C 1.424.532.175,09 equivalent in dollars to $2,733,881.33 and FINCA REAL PAGE NUMBER 5-25237-000 SALABLE VALUE: c 195.144.000,00 equivalent in dollars to $374,556.62 with a RESPONSIBILITY FOR 70% OF C 136.600.800,00 equivalent in dollars to $262,189.64 IN A GENERAL TOTAL: SALABLE VALUE IN THE AMOUNT OF C 2.229.932.821,64 equivalent in dollars to $4,280,101.38 WITH A RESPONSIBILITY OF 70% if c 1.560.952.975,09 equivalent in dollars to $2,996,070.97 AND SOLIDARY BOND BY MISTER CARLTON EDGAR TURNER IN HIS CAPACITY AS LEGAL REPESENTATIVE. 

POLICIES: IT MUST PAY INSURANCE POLICIES AGAINST FIRE AND EARTHQUAKE IN AN AMOUNT NO LOWER THAN THE VALUE OF THE BUILDINGS AND MUST POINT OUT THE NATIONAL BANK AS CREDITOR IN THE FIRST DEGREE.

SEVENTH:  FAILURE TO COMPLY: The parties agree that failure to comply with payment of any of the QUOTAS shall give the creditor Bank the right to consider the entire debt due, and it shall have the authority to request forec1osure of the document that serves as guarantee for this loan by judicial means.

EIGHTH: RELATIVE TO COMMISSIONS: Commissions for administrative expenditures shall be paid at the time each sub-loan is finalized. in the following manner: AT SIX MONTH TERM THE COMMISSION SHALL BE 1.25% on balances as specified in the Commissions Manual currently in force.

NINTH:  FULFILLMENT OF OBLIGATIONS.  The Debtor compromised to fulfill all and everyone of the obligations acquired in this document and to fulfill all conditions that the document imposes on his position.

TENTH: NON-FULFILLMENT OF OBLIGATIONS: Non compliance on the part of the DEBTOR of any one of the conditions established in this document duly verified by the National Bank of Cost Rica or by the General Superintendent of Financial Entities, shall give the Bank the right to declare the loan due ahead of the date of expiration and demand full payment of the loan by whatever legal means are appropriate. Likewise, the creditor bank shall consider due and payable in advance the totality of the debt if the debtor fails to pay one of the quotas previously established, or if it fails to maintain the property placed in trust in good state of maintenance and care or if it fails to comply with the services required, or if it fails to comply with any other condition contained in this contract and in no case will it be necessary to meet requirements or any other prior requisites which it has waived.

ELEVENTH: EARLY COLLECTION BY JUDICIAL MEANS: In accordance with Art.203 of the Penal Code, 1; CARLTON EDGAR TURNER, WITH UNITED STATES PASSPORT NUMBER [ deleted for confidentiality ], LEGAL REPRESENTATIVE OF THE DEBTOR CORPORATION SABILA INDUSTRIAL S.A. WITH JURIDICAL IDENTIFICATION NUMBER 3-101-123588-00 AND THE CODEBTOR CORPORATION, FINCA SABILA S.A. WITH JURIDICAL IDENTIFICATION NUMBER 3-101-104967-00 debtor and codebtor of the loan finalized and described above in this contract, in the initial amount of EXACTLY TWO MILLION NINE HUNDRED NINETY THOUSAND DOLLARS: hereby state that I know and accept that in case a delay of more than 15 days in payment of interest, amortization, quotas or balances of the loan in reference, the Bank has the power to turn over for early collection by judicial means to any of the corporations contracted for such service, and it must cover the cost of payment of legal fees which such a proceeding may generate and in accordance with the following scheme: If the amount in default is equal or less than US $500.00 (five hundred dollars or its
 equivalent in colones), it must pay of a commission of 3% over the amount in default, with a minimum amount of US $10.00 (ten dollars); if the amount in default is more than US $500 and less or equal to US $1,000.00 (One thousand dollars or its equivalent in colones), it must pay a commission of 2% over the amount in default; and if the amount in default is more than US $1,000.00 (or its equivalent in colones) it must pay a commission of 1% over the amount in default, with a maximum amount of $100.00.

TWELFTH: RELATIVE TO REFUNDS: Refunds shall be made by means of one single payment upon expiration of each loan operation derived herein. And the credit line must keep its balance duly paid for a period of no less than two weeks at least once every twelve months.

The contract must clearly stipulate that failure to pay or
 a delay in any one of the sub-loans derived from the credit line. authorizes the Bank to consider the entire line of credit due and to request that the guarantee be executed.

The debtor is hereby expressly committed, in a formal and irrevocable manner during the lifetime of the loan, to maintain the credit line with a zero balance for at least two consecutive weeks within each twelve month period Failure to comply with this condition shall give the Bank the right to consider the entire debt due and to require that it be paid by whatever means it deems appropriate.

THIRTEENTH: RELATIVE TO DELIVERY: Delivery of checks or disbursements shall be made by means of a written order du1y signed by the MANAGER OR HEAD OF CREDIT, or by whoever is du1y authorized to substitute for them, jointly, in accordance with the needs of the investment plan.

I (we) hereby authorize also the National Bank of Costa Rica so that, at the time any of the corporations I (we) represent requires one or several sub-loans, within the limitations established to that effect, the corresponding funds be deposited in the current account we have opened in said bank to that effect.

For that purpose the corporations I (we) represent will send a note requesting each sub-loan duly signed by the person who has the authority to do so.

I (we) hereby exempt expressly and irrevocably the creditor Bank from any error or irregularity that the corporations I (we) represent may incur upon in the letter sent requesting any specific sub-loan.

FOURTEENTH: THE INVESTMENT PLAN: The funds generated by this loan shall be used in a REVOLVING LINE OF CREDIT, TO BE USED AS WORKING CAPITAL, IN THE PROCESSING, PRODUCTION AND INDUSTRIALIZATION OF THE ALOE LEAF FOR EXPORT.

The entire proceeds of this loan, must be invested in the investment plan approved herewith and it is understood that the investment of loan funds in items other than those approved in this document shall give the Bank the right to consider this obligation due and payable and may proceed to request payment immediately.

If the debtor uses these funds in other activities besides those established herein, this will give the creditor Bank the power to declare early expiration of the loan terms and to demand payment in full of the loan by executing the guarantee.

FIFTEENTH: RELATIVE TO THE EXECUTION OF THE CONTRACT: Once deductions have been of the amounts for formalization expenditures. the creditor Bank shall disburse the amount of the credit in the following manner: SHALL DEPOSIT IN THE CURRENT ACCOUNT OPENED IN THE NATIONAL BANK OF COSTA RICA.

SIXTEENTH: RELATIVE TO OBLIGATIONS OF THE DEBTOR (AND CO SIGNERS, IF ANY): The debtor is committed hereby in an irrevocable manner to submit to the Bank, during the entire life of the loan, un-audited financial statements on a quarterly basis, audited financial statements and consolidated audited statements (as the case may be) on an annual basis; these latter reports must be submitted to the Bank within a period of no more than three months after the end of the fiscal year.

The debtor is hereby committed to present to the Bank, during the entire life of the loan, the necessary accounting information to provide a truthful and opportune follow up of the administrative and financial situation of the corporation, and also to provide the information necessary for creditor Bank officials to conduct adequately their control duties of the credit and its guaranties.

The debtor corporation is hereby committed to comply unconditionally with all of the clauses and terms specified in this Line of Credit, in case of failure to comply with any of them, the totality of the debt shall become due and payable and its full payment shall be demanded by whatever is the corresponding legal means.

The debtor corporation hereby states expressly that it is in agreement, by this action, in accordance with the provisions of Artic1e 17 of the Organic Law of the National Banking System, that in case of a possible collection of the loan by judicial means, generated by failure to pay on its part, the creditor Bank be designated as judicial depository of the assets given in guarantee for this loan.

Notwithstanding a possible waiver of address, for matters relative to Article 4 of the Notifications Law No. 7637 the debtor and cosigners of this loan, hereby state that the addresses indicated in this document will serve to receive personal notifications or notifications in writing. Likewise, should the address change, or if it is unclear or non-existent, without it being an obligation in the document, they may be notified by means of an edict to be published in the Judicial Bulletin or a newspaper with nation-wide circulation. .

In case extensions are granted on the balance of this loan, the debtor and all others shall accept the interest rate and commission for administrative proceedings in force at the time such an action is formalized.

The debtor hereby authorizes the National Bank of Costa Rica to request from any intermediary of the National Banking System or the General Superintendent of Financial Entities any information relative to the level of its debt burden. Likewise, it states that it knows and accepts any false data that may be deduced between credit information provided by the Bank and information corroborated by it before the above mentioned entities, shall be sufficient motive for the National Bank of Costa Rica to have the right to consider the obligation due and payable and demand immediate payment of the loan without any responsibility on the part of the Bank.

EIGHTEENTH: RELATIVE TO POWERS OF THE CREDITOR. The creditor Bank is hereby authorized to demand whatever changes it deems necessary, opportune and convenient when the economic financial results of the debtor, makes it impossible to service this obligation.

The Bank reserves the right to consider the loan term due and payable in advance and to demand full payment of the loan in case the debtor corporation refuses to adopt administrative measures that, during the life of the loan, the creditor Bank has imposed upon it, designed to help the development of good administrative management and to obtain satisfactory economic and financial results.

The creditor Bank may demand of the debtor, in addition to submission of audited financial statements, an opinion issued by an auditing firm that may evaluate the impact caused by this loan upon its economic and financial situation and certify the correct application of the funds according to the approved investment plan.

If a review of the financial statements conc1udes that the corporation's financial situation jeopardizes repayment of the debt or the condition of the guaranties, in accordance with Article 504 of the Commerce Code and Articles 776, 777 and 848 of the Civil Code, the Bank shall declare the debt due and payable and shall execute the guaranties.

If for causes that are determining or unexpected, upon approval of the investment project that Bank arrives at the conclusion that it may freely consider that one or more of the investment sectors approved is not going to produce the desired effect, or is going to result in damage to the Bank' s interests or the interests of the debtor it may temporarily or permanently suspend delivery of funds destined to such purpose or purposes without the Bank incurring in any responsibility with respect to the debtor.

NINETEENTH: STATEMENT OF MUTUAL BENEFIT: The creditor Bank and the debtor corporation and the solidary cosigner (or cosigners) hereby expressly state that the conditions agreed in this contract are the result of negotiations and mutual concessions which favor and benefit both directly and indirectly all parties concerned. The parties state that they know, understand and accept without reservation the legal validity and importance of waivers and stipulations.

TWENTIETH: PROVISIONS CURRENTLY IN FORCE: The debtor states that it knows the provisions currently in force that govern this type of credits and constitute an integral part of this contract and that it is required to comply with them, as well as to provide the necessary facilities to officials that the Bank may designate to exercise supervision and control of the guarantee.

TWENTY FIRST: OTHER CONTRACTED OBLIGATIONS: The debtor hereby authorizes the Bank to act before any intermediary of the National Banking System and of the General Superintendent of Financial Entities and request information on the level of its debt burden. Likewise it states and accepts that any false data that may be deduced from information provided, corroborated before the above mentioned entities, shall be sufficient cause for the National Bank of Costa Rica to suspend disbursement or disbursements under this loan if they have not been made and if they have been made this shall cause the loan to become due and payable in advance of the approved term. In addition, the debtor accepts that such an event shall cause it to lose any expenditures it may have incurred in processing the loan.

TWENTY SECOND: VERIFYING THE FINANCIAL SITUATION. In order
 for the Bank to verify the debtor's financial situation" the debtor is required to supply during the life of this loan the necessary accounting information to provide a truthful and opportune supervision of the administrative and financial situation, and to provide all the facilities necessary for Bank loan officials to exercise an adequate control of the loan. The Bank is hereby authorized to demand changes that it may consider necessary, opportune and convenient when economic and financial results of the debtor make it difficult to exercise adequate supervision of this loan. The Bank reserves the right to declare the loan term due in advance and to demand payment in full of the loan in case the debtor refuses to adopt administrative measures, that during the life of this loan, the Bank has indicated, designed to develop an administrative management that will generate satisfactory economic and financial results.

IN WITNESS WHEREOF WE SIGN IN THE CITY OF BAGACES, GUANACASTE ON TUESDAY THE THIRTEENTH OF FEBRUARY OF THE YEAR TWO THOUSAND AND SEVEN

FOR THE NATIONAL BANK OF COSTA RICA

CREDITOR

FOR SABILA INDUSTRIAL S.A. WITH JURIDICAL IDENTIFICATION NUMBER 3-101-123588

FINCA SABILA S.A. JURIDICAL IDENTIFICATION NUMBER 3-101-104967

	
DEBTOR
	
I.D.NO.

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