Document:

Exhibit 10.2

Exhibit 10.2

REGENERX BIOPHARMACEUTICALS, INC.

 

SECURITIES PURCHASE AGREEMENT

APRIL 13, 2009

 

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	 
	SECTION 1. DEFINITIONS
	 	 	1	 
	SECTION 2. ISSUANCE AND SALE OF THE SECURITIES
	 	 	3	 
	SECTION 3. THE CLOSING
	 	 	3	 
	3.1 Closing
	 	 	3	 
	3.2 Deliveries by the Company
	 	 	4	 
	3.3 Deliveries by the Investor
	 	 	4	 
	SECTION 4. REPRESENTATIONS, WARRANTIES AND COVENANTS
	 	 	5	 
	4.1 Representations and Warranties of the Company
	 	 	5	 
	4.2 Representations and Warranties of the Investor
	 	 	7	 
	SECTION 5. RESTRICTIONS ON TRANSFER
	 	 	8	 
	SECTION 6. VOTING
	 	 	8	 
	6.1 Common Stock
	 	 	8	 
	6.2 Legend
	 	 	9	 
	6.3 Rights of the Company
	 	 	9	 
	6.4 Schedule 13D
	 	 	9	 
	SECTION 7. RESERVED
	 	 	9	 
	SECTION 8. CONDITIONS TO CLOSING
	 	 	9	 
	8.1 Conditions to Closing by the Investor
	 	 	9	 
	8.2 Conditions to Closing by the Company
	 	 	10	 
	SECTION 9. MISCELLANEOUS
	 	 	10	 
	9.1 Waivers and Amendments
	 	 	10	 
	9.2 Costs and Expenses
	 	 	10	 
	9.3 Remedies Cumulative
	 	 	11	 
	9.4 Remedies Not Waived
	 	 	11	 
	9.5 Entire Agreement
	 	 	11	 
	9.6 Specific Performance
	 	 	11	 
	9.7 Governing Law
	 	 	11	 
	9.8 Notices
	 	 	12	 
	9.9 Counterparts
	 	 	12	 
	9.10 Successors and Assigns
	 	 	12	 
	9.11 Third Parties
	 	 	13	 
	9.12 Schedules and Exhibits
	 	 	13	 
	9.13 Headings
	 	 	13	 

 

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SECURITIES PURCHASE AGREEMENT

THIS SECURITIES PURCHASE AGREEMENT (this “Agreement”), dated as of April 13, 2009, is entered
into by and between RegeneRx Biopharmaceuticals, Inc., a Delaware corporation (the “Company”), and
Chaumiere-Consultadoria & Servicos SDC Unipessoal LDA (hereinafter the “Investor”).

RECITALS

Whereas, the Company has authorized the sale and issuance of (i) an aggregate of
1,052,631 shares of its Common Stock (the “Shares”) and (ii) a warrant, in substantially the form
attached hereto as Exhibit A (the “Warrant”), to purchase an aggregate of 263,158 shares
of its Common Stock (the “Warrant Shares” and, along with the Warrant and the Shares, the
“Securities”) for an aggregate purchase amount of no more than $600,000, pursuant to the terms of
this Agreement;

Whereas, the Investor desires to purchase the Securities on the terms and conditions
set forth herein; and

Whereas, the Company desires to issue and sell the Securities to the Investor on the
terms and conditions set forth herein.

AGREEMENT

Now, Therefore, in consideration of the foregoing recitals and the mutual promises,
representations, warranties, and covenants hereinafter set forth and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

SECTION 1. DEFINITIONS

The following terms when used in this Agreement shall have the following respective meanings:

“Affiliate” has the meaning set forth in Rule 501(b) of Regulation D.

“Applicable Laws” has the meaning set forth in Section 4.1(f) hereof.

“Board of Directors” means the Board of Directors of the Company.

“Capital Stock” means (i) with respect to any Person that is a corporation, any and all
shares, interests or equivalents in capital stock (whether voting or nonvoting and whether common
or preferred) of such corporation and (ii) with respect to any Person that is not a corporation,
any and all partnership, membership, limited liability company or other equity interests of such
Person; and in each case, any and all warrants, rights or options to purchase any of the foregoing.

 

 

 

“Certificate of Incorporation” means the Certificate of Incorporation of the Company, as in
effect and on file with the Secretary of State of the State of Delaware on the date of this
Agreement.

“Closing” has the meaning set forth in Section 3.1 hereof.

“Closing Date” has the meaning set forth in Section 3.1 hereof.

“Common Stock” means the Common Stock of the Company, par value $0.001 per share.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Governmental Authority” means the United States, any state, county or municipality, the
government of any foreign country, any subdivision of any of the foregoing or any authority,
department, commission, board, bureau, agency, court or instrumentality of any of the foregoing.

“Holding Period” has the meaning set forth in Section 5 hereof.

“Knowledge of the Company,” including the terms “Know,” “Known” and other derivatives thereof,
means, with respect to the Company, the actual knowledge, after reasonable investigation, of any
Responsible Officer.

“Lien” means any mortgage, lien, pledge, security interest, easement, conditional sale or
other title retention agreement or other encumbrance of any kind except for liens relating to taxes
that have accrued but are not yet payable which do not have a Material Adverse Effect.

“Material Adverse Effect” means a material adverse effect upon (i) the condition (financial or
otherwise), operations, business, properties or assets of the Company, (ii) the ability of the
Company to perform its obligations under this Agreement or any of the other agreements or documents
contemplated hereby to which it is a party or (iii) the legality, validity or enforceability of
this Agreement or any of the other agreements or documents contemplated hereby or the rights and
remedies of the Investor and the other parties hereunder and thereunder.

“Material Agreements” has the meaning set forth in Section 4.1(e) hereof.

“Parties” refers collectively to the Company and the Investor.

“Person” means an individual, corporation, partnership, joint venture, trust, unincorporated
organization, or Governmental Authority.

“Purchase Price” has the meaning set forth in Section 2 hereof.

“Regulation D” has the meaning set forth in Section 4.2(c) hereof.

“Responsible Officer” means, with respect to the Company, the President and Chief Executive
Officer, the Chief Financial Officer, the Vice President of Clinical and Regulatory
Affairs or the Chairman of the Board of Directors.

 

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“Returns” has the meaning set forth in Section 4.1(i) hereof.

“SEC” means the U.S. Securities and Exchange Commission.

“SEC Reports” has the meaning set forth in Section 4.1(h)(i) hereof.

“Securities” has the meaning set forth in the Preamble.

“Securities Act” means the Securities Act of 1933, as amended.

“Shares” has the meaning set forth in the Preamble.

“Stockholders” has the meaning set forth in Section 4.1(b) hereof.

“Tax” or “Taxes” refers to any and all federal, state, national, local, foreign and other
taxes, assessments and other governmental charges, duties, levies, impositions and liabilities
relating to taxes, including taxes based upon or measured by gross receipts, income, profits,
sales, use and occupation, and value added, ad valorem, transfer, franchise, withholding, payroll,
recapture, employment, excise and property taxes, together with all interest, penalties and
additions imposed with respect to such amounts and any obligations under any agreements or
arrangements with any other person with respect to such amounts and including any liability for
taxes of a predecessor entity.

“Transfer” has the meaning set forth in Section 5 hereof.

“Warrant” has the meaning set forth in the Preamble.

“Warrant Shares” has the meaning set forth in the Preamble.

SECTION 2. ISSUANCE AND SALE OF THE SECURITIES

At the Closing, the Company shall issue and sell to the Investor and the Investor shall
purchase from the Company (i) 1,052,631 Shares at a purchase price equal to $0.57 per Share (the
“Purchase Price”), for aggregate gross proceeds of no more than $600,000 and (ii) a Warrant
to purchase 263,158 Warrant Shares, representing 25% of the Shares purchased, at an exercise price
of $0.91 per share.

SECTION 3. THE CLOSING

3.1 Closing 

The closing of the issuance and sale of the Securities pursuant to Section 2 hereof and
certain of the other transactions contemplated hereby (the “Closing”) shall take place at the
offices of Cooley Godward Kronish LLP, One Freedom Square, Reston Town Center, 11951 Freedom Drive,
Reston, Virginia 20190, within one business day following the satisfaction of the
conditions specified in Section 8 below, or at such other time or place as the Parties shall
mutually agree (the actual date being referred to herein as the “Closing Date”). The Parties agree
that the Closing may occur by facsimile signature and delivery and that the Parties need not appear
in person at the Closing.

 

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3.2 Deliveries by the Company

At or prior to the Closing, the Company shall deliver or cause to be delivered to the Investor
the following items:

(a) One or more stock certificates evidencing a number of Shares purchased by the Investor
hereunder, registered in the name of such Investor and subject to the legends and other
restrictions set forth herein;

(b) a Warrant, executed by the Company and registered in the name of such Investor, pursuant
to which such Investor shall have the right to acquire the Warrant Shares issuable to such Investor
pursuant to Section 2 on the terms set forth therein;

(c) a copy of the Certificate of Incorporation certified by the Secretary of State of the
State of Delaware as of a date within thirty days prior to the Closing Date;

(d) a certificate of the Secretary of State of the State of Delaware as to the good standing
of the Company dated within thirty days prior to the Closing Date;

(e) a certificate of the Secretary or Assistant Secretary of the Company, in form and
substance satisfactory to counsel for the Investor, certifying that attached thereto are true and
correct copies of (i) the bylaws of the Company, and (ii) resolutions duly and validly adopted by
the Board of Directors authorizing the allotment and issuance of the Securities to the Investor,
execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby; and

(f) a counterpart of this Agreement duly executed by the Company.

3.3 Deliveries by the Investor

At or prior to the Closing, the Investor shall deliver or cause to be delivered to the Company
the following items:

(a) payment of the Purchase Price in immediately available funds by wire transfer to an
account designated in writing by the Company prior to the Closing Date;

(b) a fully completed and duly executed Accredited Investor Certification in the form attached
hereto as Exhibit B; and

(c) a counterpart of this Agreement duly executed by the Investor.

 

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SECTION 4. REPRESENTATIONS, WARRANTIES AND COVENANTS

4.1 Representations and Warranties of the Company

In order to induce the Investor to purchase the Securities it is purchasing hereunder, the
Company represents and warrants to the Investor as of the date hereof that:

(a) Organization and Standing. The Company is duly incorporated and validly existing
under the laws of the State of Delaware and has all requisite corporate power and authority to own
or lease its properties and assets and to conduct its business as it is presently being conducted.

(b) Capitalization. Immediately subsequent to the consummation of the transactions
contemplated by this Agreement, the authorized Capital Stock of the Company shall be as set forth
on Schedule 4.1(b) hereto. The outstanding shares of Capital Stock are all duly and
validly authorized and issued, fully paid and nonassessable, and based in part on the
representations of the stockholders of the Company (the “Stockholders”) made in connection with the
issuance thereof, were issued in compliance with all applicable federal and state securities laws.

(c) Capacity of the Company; Consents; Execution of Agreements. The Company has all
requisite power, authority and capacity to enter into this Agreement and to perform the
transactions and obligations to be performed by it hereunder. The execution and delivery of this
Agreement and any agreements contemplated hereby by the Company, and the performance by the Company
of the transactions and obligations contemplated hereby and thereby, including, without limitation,
the issuance and delivery of the Securities to the Investor, has been duly authorized by all
requisite action of the Company and Stockholders. This Agreement has been duly executed and
delivered by a duly authorized officer of the Company and constitutes a valid and legally binding
agreement of the Company, enforceable in accordance with its respective terms, except as
enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws of the United States (both state and federal), affecting the enforcement of creditors’
rights or remedies in general and general equity principles.

(d) Status of the Shares and Warrant Shares; Reservation of Common Stock. The Shares
and Warrant Shares to be issued and purchased hereunder, when issued by the Company to the Investor
and paid for by the Investor pursuant to the terms of this Agreement and the Warrant, will (i) be
duly authorized, validly issued, fully paid and nonassessable, (ii) based on the Investor’s
representations in Section 4.2, have been issued in compliance with all applicable United States
federal and state securities laws and (iii) be free and clear of all Liens. The Company has
available sufficient shares of Common Stock for issuance pursuant to the terms of this Agreement.

(e) Conflicts; Defaults. The execution and delivery of this Agreement by the Company
and the performance by the Company of the transactions and obligations contemplated hereby to be
performed by it will not (i) materially violate, conflict with, or constitute a default under any
of the terms or provisions of, the Certificate of Incorporation, the bylaws, or any provisions of,
or result in the acceleration of any obligation under, any material contract, note, debt
instrument, security agreement, or other instrument to which the Company is a party or by
which the Company, or any of their assets is bound (collectively, the “Material Agreements”);
(ii) result in the creation or imposition of any Liens or claims upon the Company’s assets or upon
the Company’s Common Stock; (iii) assuming the accuracy of the Investor’s representations in
Section 4.2, constitute a material violation of any law, statute, judgment, decree, order, rule, or
regulation of a Governmental Authority applicable to the Company; or (iv) constitute an event
which, after notice or lapse of time or both, would result in any of the foregoing. The Company is
not presently in violation of its Certificate of Incorporation or bylaws.

 

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(f) Compliance with Laws. The Company is not in violation of, nor do any of its
respective operations violate in any respect, any statute, law, or regulation of any Governmental
Authority applicable to the Company (“Applicable Laws”), which violation would have a Material
Adverse Effect.

(g) Litigation. As of the date hereof: (i) the Company is not subject to any order of,
or written agreement or memorandum of understanding with, any Governmental Authority which would
have a Material Adverse Effect; (ii) there are no material actions, suits, claims, investigations,
or proceedings pending at law or in equity or before or by any Governmental Authority, or, to the
Knowledge of the Company, threatened, against the Company or any of its assets or properties or the
transactions contemplated by this Agreement, and to the Knowledge of the Company, there exist no
facts or circumstances which reasonably could be anticipated to result in any such action, suit,
claim, investigation, or proceeding; and (iii) no Person has asserted, and, to the Knowledge of the
Company, no Person has a valid basis upon which to assert, any claims against the Company that
would materially adversely affect the transactions contemplated by this Agreement or result in or
form the basis of any such action, suit, claim, investigation or proceeding. There is no material
action, suit, proceeding or investigation by the Company currently pending or which the Company
intends to initiate.

(h) Securities Laws.

(i) The Company has filed all forms, reports and documents with the SEC required to be filed
by it pursuant to the federal securities laws and the SEC rules and regulations thereunder, all of
which complied in all material respects with all applicable requirements of the Securities Act and
the Exchange Act (collectively, the “SEC Reports”). None of the SEC Reports, including, without
limitation, any financial statements or schedules included therein, at the time filed (or if
amended or superseded by a filing prior to the date of this Agreement, then on the date of such
filing) contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in light of
circumstances under which they were made, not misleading.

(ii) Based on the Investor’s representations in Section 4.2, no consent, authorization,
approval, permit, or order of or filing with any Governmental Authority is required in order for
the Company to execute and deliver this Agreement or in order for the Company to offer, issue,
sell, or deliver the Securities. Based in part on the representations of the Investor and under
the circumstances contemplated hereby and under current laws and regulations, the offer, issuance,
sale and delivery of the Securities to the Investor is exempt from the registration requirements of
the Securities Act.

 

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(iii) Taxes. The Company has timely filed or caused to be filed with the appropriate
taxing authority all federal, state, national, local and foreign returns, estimates, information
statements and reports (“Returns”) relating to Taxes required to be filed by the Company on or
prior to the Closing Date. The Returns have accurately reflected in all material respects and will
accurately reflect in all material respects all liability for Taxes of the Company for the periods
covered thereby.

4.2 Representations and Warranties of the Investor

The Investor hereby represents and warrants to the Company that as of the date hereof:

(a) Investment Intent. The Securities to be purchased by the Investor hereunder are
being purchased for its own account and not with the view to, or for resale in connection with, any
distribution or public offering thereof within the meaning of the Securities Act. The Investor
understands that the Securities have not been registered under the Securities Act by reason of
their issuance in transactions exempt from the registration and prospectus delivery requirements of
the Securities Act pursuant to Section 4(2) thereof. The Investor further understands that the
certificates representing the Shares and any Warrant Shares that may be issued pursuant to the
exercise of the Warrant will bear the following legend and the Investor agrees that it will hold
such shares subject thereto:

“THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE
SECURITIES LAWS OR BLUE SKY LAWS.”

(b) Capacity of the Investor; Execution of Agreement. The Investor has all requisite
power, authority and capacity to enter into this Agreement, deliver the Purchase Price, and to
perform the transactions and obligations to be performed by it hereunder. This Agreement has been
duly authorized, executed and delivered by them and constitutes its valid and legally binding
obligation, enforceable in accordance with its terms, except as enforcement thereof may be limited
by bankruptcy, insolvency, reorganization, moratorium or other similar laws, both state and
federal, affecting the enforcement of creditors’ rights or remedies in general from time to time in
effect and the exercise by courts of equity powers or their application of principles of public
policy.

(c) Accredited Investor. The Investor is an “accredited investor” as defined in Rule
501(a) of Regulation D promulgated under the Securities Act (“Regulation D”).

 

7

 

(d) Suitability and Sophistication. (i) The Investor has such knowledge and experience
in financial and business matters that it is capable of independently evaluating the risks and
merits of purchasing the Securities; (ii) the Investor has independently evaluated the risks and
merits of purchasing the Securities and has independently determined that the Securities are a
suitable investment for it; and (iii) the Investor has sufficient financial resources to bear the
loss of their entire investment in the Securities.

(e) Receipt of Information. The Investor believes, after due inquiry and
investigation, that it has received all of the information that it considers necessary or
appropriate for deciding whether to purchase the Securities. The Investor further represents that
it has had an opportunity to ask questions and receive answers from the Company regarding the terms
and conditions of the offering of the Securities and the business, properties, prospects and
financial condition of the Company and to obtain additional information (to the extent the Company
possessed such information or could acquire it without unreasonable effort or expense) necessary to
verify the accuracy of any information furnished to the Investor. The foregoing, however, does not
limit or modify the representations and warranties of the Company in Section 4 of this Agreement or
the right of the Investor to rely thereon.

(f) Independent Existence. The Investor was not formed for the specific purpose of
purchasing the Securities.

SECTION 5. RESTRICTIONS ON TRANSFER

The Investor agrees that the Investor shall not sell, assign, encumber, pledge, gift, transfer
or otherwise dispose of the Securities by any means, including, without limitation, any transfer or
disposition by means of a put or call option, security interest or any similar instrument
(collectively, a “Transfer”), from the date hereof through April 30, 2012 (the “Holding Period”).
Notwithstanding the foregoing, the Investor may Transfer the Securities to an Affiliate of the
Investor during the Holding Period provided that: (i) the Investor gives the Company written notice
of its intention to effect such Transfer, (ii) the Investor did not enter into this Agreement with
the intention of effecting such Transfer and (iii) the transferee becomes a party to this
Agreement. The Investor understands, acknowledges and agrees that the Company shall not be
required (y) to transfer on its books any Securities that have been sold or transferred in
violation of the provisions of this Section 5 or (z) to treat as the owner of the Securities, or
otherwise to accord voting or dividend rights to, any transferee to whom the Securities have been
transferred in contravention of this Agreement.

SECTION 6. VOTING

6.1 Common Stock. The Investor agrees to hold all Shares and any Warrant Shares
issued upon exercise of the Warrant for the term of the Holding Period subject to the voting
provisions contained herein.

 

8

 

6.2 Legend. There shall be imprinted or otherwise placed on certificates representing
the Shares and any Warrant Shares issued upon exercise of the Warrant, the following restrictive
legend (the “Legend”):

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS
OF A SECURITIES PURCHASE AGREEMENT WHICH PLACES CERTAIN RESTRICTIONS ON THE VOTING
AND DISPOSITION OF THE SHARES REPRESENTED HEREBY. A COPY OF SUCH SECURITIES PURCHASE
AGREEMENT WILL BE FURNISHED TO THE RECORD HOLDER OF THIS CERTIFICATE WITHOUT CHARGE
UPON WRITTEN REQUEST TO THE COMPANY AT ITS PRINCIPAL PLACE OF BUSINESS.”

6.3 Rights of the Company. During the Holding Period, the Company, acting by and
through its Board of Directors, shall possess and shall have the exclusive right, except as
otherwise expressly limited in this Agreement, to exercise, in person or by nominees or proxies of
the Company, all voting rights and powers in respect of the Shares and any Warrant Shares issued
upon exercise of the Warrant, for any and every purpose, and to take part in or consent to any
Company or Stockholders’ action of any kind whatsoever, as absolute owner of such Shares and any
Warrant Shares issued upon exercise of the Warrant. The Investor hereby assigns to the Company all
voting rights that it otherwise might have had arising out of ownership of the Shares and any
Warrant Shares issued upon exercise of the Warrant, whether by operation of law or agreement. The
right to vote shall include the right to vote for and against, to consent, to abstain or to refrain
from attending any meeting with respect to the election of directors or any other matter to be
acted upon by the Stockholders of the Company at any meeting or by consent.

6.4 Schedule 13D. The Investor hereby acknowledges and understands that the foregoing
voting restrictions may require the Parties to file an amended Schedule 13D pursuant to the
Exchange Act and the Parties hereby agree to provide each other with all reasonably necessary
assistance in order to effect such filing on a timely basis.

SECTION 7. Reserved.

SECTION 8. CONDITIONS TO CLOSING

8.1 Conditions to Closing by the Investor

The obligations of the Investor to consummate the purchase of the Securities pursuant to
Section 2 hereof and certain of the transactions contemplated by this Agreement are subject to the
satisfaction on or prior to the Closing Date of the following conditions, any of which may be
waived in whole or in part in writing by the Investor:

(a) all representations and warranties of the Company contained in this Agreement shall be
true and correct as of the date of this Agreement and as of the Closing Date as though made anew as
of such date (unless another date is specified);

(b) the Company shall have delivered to the Investor the items required by Section 3.2 of this
Agreement;

(c) the Company shall have performed and complied with all agreements and conditions required
by this Agreement to be performed and complied with by it prior to or as of
the Closing Date; and

 

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(d) all pre-issuance registrations, qualifications, permits and approvals required, if any,
under applicable state securities laws or stock exchange listing rules for the lawful execution and
delivery of this Agreement and the offer, sale, issuance and delivery of the Securities shall have
been obtained.

8.2 Conditions to Closing by the Company

The obligations of the Company to consummate the issuance and sale of the Securities pursuant
to Section 2 hereof and certain of the transactions contemplated by this Agreement are subject to
the satisfaction on or prior to the Closing Date of the following conditions, any of which may be
waived in whole or in part in writing by the Company:

(a) all representations and warranties of the Investor contained in this Agreement shall be
true and correct as of the date of this Agreement and as of the Closing Date as though made anew as
of such date;

(b) the Investor shall have delivered to the Company the items required by Section 3.3 of this
Agreement;

(c) all pre-issuance registrations, qualifications, permits and approvals required, if any,
under applicable state securities laws or stock exchange listing rules for the lawful execution and
delivery of this Agreement and the offer, sale, issuance and delivery of the Securities shall have
been obtained; and

(d) the Investor shall have performed and complied with all agreements and conditions required
by this Agreement to be performed and complied with by them prior to or as of the Closing Date.

SECTION 9. MISCELLANEOUS

9.1 Waivers and Amendments

This Agreement may be amended or modified in whole or in part only by a writing which makes
reference to this Agreement that is executed by the Investor and the Company. The obligations of
any Party hereunder may be waived (either generally or in a particular instance and either
retroactively or prospectively) only with the written consent of the party claimed to have given
the waiver; provided, however, that any waiver by any party of any violation of, breach of, or
default under any provision of this Agreement or any other agreement provided for herein shall not
be construed as, or constitute, a continuing waiver of such provision, or waiver of any other
violation of, breach of or default under any other provision of this Agreement or any other
agreement provided for herein.

9.2 Costs and Expenses

Each party agrees to pay its own costs and expenses in connection with the preparation,
execution and delivery of this Agreement and other instruments and documents to be delivered
hereunder and thereunder.

 

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9.3 Remedies Cumulative

No specific right, power, or remedy conferred by this Agreement shall be exclusive, and each
such right, power, or remedy shall be cumulative and in addition to every other right, power, or
remedy, whether conferred hereby or by any security of the Company or now or hereafter available,
at law or in equity, by statute or otherwise.

9.4 Remedies Not Waived

No course of dealing between the Company and the Investor, and no delay in exercising any
right, power, or remedy conferred hereby or by any security issued by the Company, or now or
hereafter available at law or in equity, by statute or otherwise, shall operate as a waiver of or
otherwise prejudice any such right, power, or remedy.

9.5 Entire Agreement

This Agreement and the other agreements and instruments expressly provided for herein,
together set forth the entire understanding of the parties hereto and supersede in their entirety
all prior contracts, agreements, arrangements, communications, discussions, representations and
warranties, whether oral or written, among the parties with respect to the subject matter hereof.

9.6 Specific Performance

The Company and the Investor acknowledge and agree that irreparable damage would occur in the
event that any of the provisions of this Agreement were not performed in accordance with the
specific terms hereof or were otherwise breached. It is accordingly agreed that, to the fullest
extent permitted by law or equity, each of the parties shall be entitled to an injunction or
injunctions to prevent or cure breaches of the provisions of this Agreement and to enforce
specifically the terms and provisions hereof, this being in addition to any other remedy to which
the parties may be entitled by law or equity.

9.7 Governing Law

This Agreement shall in all respects be governed by and construed in accordance with the
internal substantive laws of the State of Delaware without giving effect to the principles of
conflicts of law thereof.

 

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 9.8 Notices

Any notice, request or other communication required or permitted hereunder shall be in writing
and be deemed to have been duly given (a) when personally delivered or sent by facsimile
transmission (the receipt of which is confirmed in writing), (b) one business day after being sent
by a nationally recognized overnight courier service or (c) three business days after being sent by
registered or certified mail, return receipt requested, postage prepaid, to the parties at their
respective addresses set forth below.

If to the Company:

RegeneRx Biopharmaceuticals, Inc.

3 Bethesda Metro Center

Suite 630

Bethesda, MD 20814

Attention: J.J. Finkelstein

Facsimile: 301-280-1991

With a copy, which shall not constitute notice, to:

Cooley Godward Kronish LLP

One Freedom Square, Reston Town Center

11951 Freedom Drive

Reston, VA 20190

Attention: Kenneth J. Krisko, Esq.

Facsimile: 703-456-8100

If to the Investor:

To the address set forth below the Investor’s name on the signature page of this Agreement

Any party by written notice to the others may change the address or the persons to whom notices or copies thereof shall be directed.

9.9 Counterparts

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

9.10 Successors and Assigns

This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and assigns, subject to the restrictions on Transfer contained herein.
The Investor may, prior to the Closing, assign all or a portion of its right to purchase the
Securities to an Affiliate of the Investor.

 

12

 

9.11 Third Parties

Nothing expressed or implied in this Agreement is intended, or shall be construed, to confer
upon or give any Person other than the parties hereto any rights or remedies under or by reason of
this Agreement.

9.12 Schedules and Exhibits

The schedules and exhibits attached to this Agreement are incorporated herein and shall be
part of this Agreement for all purposes.

9.13 Headings

The headings in this Agreement are solely for convenience of reference and shall not be given
any effect in the construction or interpretation of this Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

13

 

IN WITNESS WHEREOF, the parties have duly executed, or have caused their duly authorized
officer or representative to execute, this Securities Purchase Agreement as of the date first above
written.

REGENERX BIOPHARMACEUTICALS, INC.

	 	 	 	 
	By:  	               /s/ J.J. Finkelstein
 	 
	 	Name:  	J.J. Finkelstein 	 
	 	Title:  	President and Chief Executive Officer 	 

CHAUMIERE-CONSULTADORIA & SERVICOS SDC UNIPESSOAL LDA

	 	 	 	 
	By:  	/s/ João Jose De Freitas Rodrigues	 
	 	Name:  	João Jose De Freitas Rodrigues	 
	 	Title:	Director	 

 

 

 

Exhibit A

FORM OF WARRANT

 

 

Exhibit B

ACCREDITED INVESTOR CERTIFICATION

The undersigned represents and warrants to RegeneRx Biopharmaceuticals, Inc. (the “Company”) that
the undersigned fits within each category marked below, and that for any category marked, he, she
or it has truthfully set forth any description required as provided for below. ALL INFORMATION
WILL BE KEPT STRICTLY CONFIDENTIAL. The undersigned agrees to furnish any additional information
that the Company deems necessary in order to verify the answers set forth below.

(PLEASE MARK EACH CATEGORY APPLICABLE TO YOU)

	 ̈	 	 The undersigned is an individual (not a partnership, corporation, etc.) whose individual net worth, or
joint net worth with his or her spouse, presently exceeds
$1,000,000.

Explanation. In calculating net worth you may include equity in personal property and real estate,
including your principal residence, cash, short-term investments, stock and securities. Equity in
personal property and real estate should be based on the fair market value of such property minus debt
secured by such property.

	 
	 ̈	 	 The undersigned is an individual (not a partnership, corporation, etc.) who had an income in excess of
$200,000 in each of the two most recent years, or joint income with his or her spouse in excess of
$300,000 in each of those years (in each case, including foreign income, tax exempt income and full
amount of capital gains and losses, but excluding any income of other family members and any unrealized
capital appreciation), and has a reasonable expectation of reaching the same income level in the
current year.

	 
	 ̈	 	 The undersigned is a director or executive officer of the Company.

	 
	 ̈ 	 	The undersigned is either: (a) a bank as defined in Section 3(a)(2) of the Securities Act of 1933, as
amended (the “Act”); (b) a savings and loan association or other institution as defined in Section
3(a)(5)(A) of the Act, whether acting in its individual or fiduciary capacity; (c) a broker dealer
registered pursuant to Section 15 of the Securities Exchange Act of 1934; (d) an insurance company as
defined in Section 2(13) of the Act; (e) an investment company registered under the Investment Company
Act of 1940 or a business development company as defined in Section 2(a)(48) of the Act; (f) a small
business investment company licensed by the U.S. Small Business Administration under Section 301(c) or
(d) of the Small Business Investment Act of 1958; (g) a plan established and maintained by a state, its
political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for
the benefit of its employees, if such a plan has total assets in excess of $5,000,000; or (h) an
employee benefit plan within the meaning of the Employee Retirement Income Security Act 

 

 

	 	 	 of 1974
(“ERISA”), if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of
ERISA, which is either a bank, savings and loan association, insurance company or registered investment
advisor, or if the employee benefit plan has total assets in excess of $5,000,000, or, if a
self-directed plan, with investment decisions made solely by persons that are accredited
investors, as defined in Rule (501)(a) promulgated under the Act.

	 	 	 

	 
	 	 	 

(describe entity)

	 ̈	 	 The undersigned is a private business development company as
defined in Section 202(a)(22) of the Investment Advisers Act of
1940.

	 
	 	 	 

	 
	 	 	 

(describe entity)

	þ 	 	The undersigned is an organization within the meaning of Section
501(c)(3) of the Internal Revenue Code, a corporation, a business
trust, or a partnership, not formed for the specific purpose of
acquiring the Securities, with total assets in excess of
$5,000,000.

	 
	 	 	 

	 
	 	 	 

(describe entity)

	 ̈	 	 The undersigned is a trust with total assets in excess of
$5,000,000, not formed for the specific purpose of acquiring the
Securities, whose investments are directed by a “sophisticated
person” as described in Rule 506(b)(2)(ii) promulgated under the
Act.

	 
	 ̈ 	 	The undersigned is an entity, all the equity owners of which are
“accredited investors” within one or more of the above categories.
If relying upon this category alone, each equity owner must
complete a separate copy of this Certificate.

	 
	 	 	 

	 
	 	 	 

(describe entity)

	 ̈ 	 	The undersigned does not meet the criteria of any of the categories listed above.

 

 

THE UNDERSIGNED UNDERSTANDS THAT THE COMPANY WILL RELY ON THE FOREGOING REPRESENTATIONS TO, AMONG
OTHER THINGS, MAINTAIN THE EXEMPTION FOR THE ISSUANCE OF THE SECURITIES FROM THE REQUIREMENT TO
REGISTER SUCH SECURITIES UNDER THE ACT.

The answers to the foregoing questions are correctly stated to the best of my knowledge,
information and belief. I hereby agree to notify the Company promptly of any changes in the
foregoing information.

	 	 	 	 	 
	Dated: April 13, 2009 	Investor: CHAUMIERE- CONSULTADORIA

& SERVICOS SDC UNIPESSOAL LDA

 
	 
	 	By:  	/s/ João Jose De Freitas Rodrigues	 
	 	 	Name:  	João Jose De Freitas Rodrigues	 
	 	 	Title:  	Director	 

 

5Exhibit 10.21

EXHIBIT 10.21

This instrument was prepared by and

after recording should be returned to:

Parker, Hudson, Rainer & Dobbs LLP

1500 Marquis Two Tower

285 Peachtree Center Avenue, N.E.

Atlanta, Georgia 30303

Attention: Mitchell M. Purvis, Esq.

DEED TO SECURE DEBT

THIS DEED TO SECURE DEBT (this “Deed”), made this 6th day of November, 2008, by Home Federal
Holdings Corporation, a Georgia corporation having a mailing address of 4271 Mundy Mill Road,
Oakwood, Georgia 30566 (“Grantor”), in favor of Peoples State Bank of Commerce, a Tennessee banking
corporation having a mailing address of 7122 Nolensville Road, Nolensville, Tennessee 37135
(“Lender”).

W I T N E S S E T H:

For and in consideration of TEN AND NO/100 ($10.00) DOLLARS in hand paid and other valuable
consideration, receipt whereof is hereby acknowledged, and to secure payment of the indebtedness
hereinafter described, Grantor does hereby bargain, sell, grant and convey to Lender and Lender’s,
its successors and assigns, all of the following described property (collectively the “Premises”),
to-wit:

(a) All that tract or parcel of land more particularly described in Exhibit A
attached hereto and made a part hereof (the “Property”);

(b) All minerals, crops, trees, timber and other emblements now or hereafter located on
or under any of the Property;

(c) All buildings, structures and other improvements now or hereafter located on the
Property;

 

 

 

(d) All and singular easements, rights-of-way, strips and gores of land, vaults,
streets, alleys, passages, water rights, sewer rights and royalties, and all estates,
rights, interests, royalties, tenements and appurtenances whatsoever, in any way and at any
time relating to any of the Property;

(e) All machinery, equipment, fixtures and appliances (whether trade, ornamental,
domestic or permanent fixtures) now or hereafter located on the Property; and

(f) All leases, rents, revenues, issues, profits, awards or judgments at any time
arising out of or relating to any of the foregoing Premises.

TO HAVE AND TO HOLD the Premises and all parts, rights, members and appurtenances thereof, to
the use, benefit and behoof of Lender, its successors and assigns, IN FEE SIMPLE forever; and
Grantor covenants that it is lawfully seized and possessed of the Premises in fee simple and has
the right to convey the same, that the same are unencumbered except as hereinafter set forth and
that Grantor will warrant and defend the title thereto against the claims of all Persons
whomsoever.

GRANTOR WARRANTS that (i) Grantor has good and marketable fee simple title to the Property,
(ii) Grantor has lawfully seized and possessed the Premises, (iii) Grantor has the right to convey
the Premises, (iv) the Premises are unencumbered except for Permitted Liens and (v) Grantor does
warrant and shall forever defend the title to the Premises unto Lender against the claims of all
Persons whomsoever except for Permitted Liens.

THIS DEED is intended to operate and be construed as a deed passing legal title to the
Premises to Lender and is made under those provisions of the existing laws of the State of Georgia
relating to deeds to secure debt, and not as a mortgage. This Deed is also a security agreement by
which Grantor does hereby grant a present and continuing security interest in and security title
to that portion of the Premises constituting fixtures, and the leases, rents, revenues, issues and
profits, and the proceeds of all of the foregoing, pursuant to the Uniform Commercial Code of the
State of Georgia. This Deed establishes a perpetual security interest in the Premises in favor of
Lender and is given to secure the payment and performance of the following indebtedness and
obligations (hereinafter collectively referred to as the “Indebtedness”):

(a) All indebtedness evidenced by that certain Term Note dated November 6, 2008, made
by Grantor to the order of Lender in the original principal amount of ONE MILLION FIVE
HUNDRED TWENTY-TWO THOUSAND FOUR HUNDRED AND NO/100 DOLLARS ($1,522,400.00) (the “Term
Note”), final payment of which Term Note is due on or before July 10, 2009, together with
any and all renewals, modifications, consolidations, replacements and extensions of all or
any portion of the indebtedness evidenced by the Term Note;

(b) Any and all advances made or expenses incurred by Lender to protect or preserve the
Premises or the security title created hereby with respect to the Premises, or for Taxes or
insurance premiums as hereinafter provided or for performance of any of Grantor’s
obligations hereunder or for any other purpose provided herein (whether or not the original
Grantor remains the owner of the Premises at the time of such advances);

 

- 2 -

 

(c) Any and all other indebtedness now owing or which may hereafter be owing by Grantor
to Lender, however and whenever incurred or evidenced, whether express or implied, direct or
indirect, absolute or contingent, or due or to become due (but only to the extent such
indebtedness is evidenced by a promissory Term Note or other instrument which makes specific
reference to this Deed as security for such indebtedness or the securing of such
indebtedness will not cause intangibles recording taxes to be due and payable unless such
taxes are paid); and

(d) All costs of collection of any of the foregoing indebtedness, including, without
limitation, reasonable attorneys’ fees and court costs if such indebtedness is collected by
or through an attorney at law.

GRANTOR COVENANTS WITH LENDER AS FOLLOWS:

ARTICLE I.

As used herein, the following terms shall have the following meanings ascribed to them (terms
defined in the singular to have the same meaning when used in the plural, and vice versa):

“Applicable Law” shall mean all state, federal, county, municipal or other
laws, rules, regulations, codes, ordinances or orders applicable to the Person, conduct,
transaction, property or matter in question.

“Business Day” shall mean any other day other than a Saturday, Sunday or bank
holiday under the laws of the State of Georgia.

“Deed” shall have the meaning ascribed to it earlier in this instrument.

“Environmental Complaint” shall have the meaning ascribed to it in Section 2.05
hereof.

“Event of Default” shall have the meaning ascribed to it in Section 3.01
hereof.

“Hazardous Discharge” shall have the meaning ascribed to it in Section 2.05
hereof.

“Hazardous Material” shall have the meaning ascribed to it in Section 2.05
hereof.

“Indebtedness” shall have the meaning ascribed to it earlier in this Deed.

“Permitted Liens” shall mean the liens and other encumbrances described on
Exhibit B attached hereto.

“Person” shall mean any individual, proprietorship, corporation, partnership,
trust, limited liability company, governmental unit or other entity.

“Premises” shall have the meaning ascribed to it earlier in this Deed.

 

- 3 -

 

“Property” shall have the meaning ascribed to it earlier in this Deed.

“Taxes” shall mean all state, federal, county, municipal or other taxes,
assessments (general or special), and other governmental charges levied on or assessed,
placed or made against or payable with respect to any of the Premises, this Deed, the
Indebtedness or any interest of Lender in any of the Premises, this Deed or the
Indebtedness, including, without limitation, all intangibles taxes and intangibles recording
taxes (if any) payable at any time in connection with this Deed or any of the Indebtedness.

“Term Loan Agreement” shall mean the Term Loan Agreement of even date herewith
between Grantor and Lender, as at any time amended.

“Term Note” shall have the meaning ascribed to it earlier in this Deed.

ARTICLE II.

2.01. Payments by Grantor. Grantor shall pay or cause to be paid as and when the same
shall become due and payable (i) the Indebtedness in accordance with the terms and conditions of
the agreements or instruments evidencing the same; (ii) all Taxes; and (iii) all premiums for
insurance required by this Deed or by any other agreement of Grantor with Lender.

2.02. Insurance. Grantor shall keep the Premises continuously insured against loss or
damage by fire, lighting, windstorm and vandalism and against such other hazards as are presently
included in so-called “extended coverage” and in such amounts as Lender shall from time to time
require, for the benefit of Lender, and Grantor shall maintain public liability insurance covering
all liabilities incident to the ownership, use and occupancy of the Premises. Grantor agrees that
all such property insurance shall be with an insurance company or companies and on terms acceptable
to Lender, with loss, if any, payable to Lender as its interest may appear, pursuant to a mortgagee
clause which shall be satisfactory to Lender, and that all liability insurance shall name Lender as
an additional insured. Forthwith upon the issuance of any such policies, Grantor shall deliver the
same and all renewals thereof to Lender and shall also deliver to Lender receipts for the premiums
paid thereon. All such policies shall become its property in the event Lender becomes the owner of
the Premises by foreclosure or otherwise. Lender is hereby authorized and empowered, at its
option, to adjust or compromise any loss under any insurance policies on the Premises, and to
collect and receive the proceeds from any such policy or policies. Each insurance company is
hereby authorized and directed to make payment for all such losses directly to Lender, instead of
to Grantor and Lender jointly. In case of loss under any such policy of insurance, Lender may
apply the net proceeds or any part thereof, at its option, (i) to the payment of the Indebtedness,
whether or not then due, (ii) to the repair or restoration of the Premises, or (iii) for any other
purpose or object for which Lender is entitled to advance funds under this Deed, all without
affecting the lien of this Deed or the Indebtedness.

2.03. Ownership, Use and Care of Premises.

(a) Grantor shall not sell, convey, transfer, mortgage or otherwise dispose of or encumber any
part of the Premises or any interest therein, and, except for Permitted Liens, Grantor shall keep
the Premises free and clear of all liens.

 

- 4 -

 

(b) Grantor shall keep the improvements now or hereafter erected on the Property in good
condition and repair, shall not commit or suffer any waste, shall not do or suffer to be done
anything which will increase the risk of fire or other hazard to the Premises or any part thereof
and shall cause the Premises and Grantor’s use thereof to be in compliance with Applicable Law.

(c) Grantor shall not remove or demolish nor alter the design or structural character of any
part of the Premises without the written consent of Lender and shall not seek or consent to any
change of zoning of or condition of use of the Premises.

(d) If the Premises or any part thereof is damaged by fire or any other cause, Grantor shall
give immediate written notice of the same to Lender and shall promptly restore the Premises to the
equivalent of its original condition; and if a part of the Premises shall be taken through
condemnation, Grantor shall promptly restore, repair or alter the remaining property in a manner
satisfactory to Lender.

(e) Lender or its representative is hereby authorized to enter upon and inspect the Premises
at any time during normal business hours.

2.04. Condemnation. If all or any part of the Premises shall be damaged or taken
through condemnation (which term when used in this Deed shall include any damage or taking by any
governmental authority and any transfer by private sale in lieu thereof), either temporarily or
permanently, the entire Indebtedness shall, at the option of Lender, become immediately due and
payable. Lender shall be entitled to all compensation, awards, and other payments or relief
thereof and is hereby authorized, at its option, to commence, appear in and prosecute, in its own
or Grantor’s name, any action or proceeding relating to any condemnation, and to settle or
compromise any claim in connection therewith. All such compensation, awards, damages, claims,
rights of action and proceeds and the right thereto are hereby assigned by Grantor to Lender, who
after deducting therefrom all its expenses, including, without limitation, attorneys’ fees, may
release any monies so received by it without affecting the lien of this Deed and may apply the same
in such manner as Lender shall determine, to the reduction of the Indebtedness, and any balance of
such monies then remaining shall be paid to Grantor. Grantor agrees to execute such further
assignment of any compensation, awards, damages, claims, rights of action and proceeds as Lender
may require.

2.05. Hazardous Materials. Grantor shall indemnify and defend Lender against and hold
Lender harmless from and against any and all losses, liabilities and expenses of any and every kind
whatsoever paid, incurred or suffered by, or asserted against Lender, with respect to the presence
on or under the Premises, or the leakage or discharge, of any hazardous, toxic or dangerous
substance or material (“Hazardous Material”) defined as such in any Applicable Law. If Grantor
receives any notice of discharge or disposal of any Hazardous Material (a “Hazardous Discharge”)
affecting Grantor or the Premises or any complaint, order, citation or notice with regard to air
emissions, water discharges, surface contaminations, noise emissions or any other environmental,
health or safety matter affecting Grantor or the Premises (an “Environmental Complaint”) from any
Person, then Grantor shall, within seven (7) Business Days after receipt of such notice give oral
and written notice of same to Lender. Without limitation of Lender’s rights under this Deed,
Lender shall have the right, but no obligation, to enter onto the Property or to
take such other actions as it deems necessary or advisable to clean up, remove, resolve or
minimize the impact of, or otherwise deal with, any such Hazardous Discharge or Environmental
Complaint upon its receipt of any notice from any Person.

 

- 5 -

 

2.06. Leases Affecting the Premises. Grantor shall perform all covenants to be
performed by the landlord under any and all leases respecting the Premises or any part thereof and
shall not, without the prior written consent of Lender, cancel, surrender or modify any lease which
Grantor has assigned to Lender. Upon demand, Grantor will furnish Lender copies of any lease
respecting the Premises or any part thereof.

2.07. Expenses. Grantor will pay or reimburse Lender for all attorneys’ fees, costs
and expenses incurred by Lender in any action, legal proceeding or dispute of any kind in which
Lender is made a party, or appears as party plaintiff or defendant, affecting the Indebtedness,
this Deed or the interest created herein, or the Premises, including, but not limited to, the
exercise of the power of sale of this Deed, any condemnation action involving any of the Premises
or any action to protect the security hereof; and any such amounts paid by Lender shall be added to
and form a part of the Indebtedness.

2.08. Subrogation. Lender shall be subrogated to the claims and liens of all Persons
whose claims or liens are discharged or paid with the proceeds of any of the Indebtedness.

2.09. Performance by Lender of Defaults by Grantor. If Grantor shall default in the
payment of any Tax; in the payment of any utility charge, whether public or private; or insurance
premium; in the procurement of insurance coverage and the delivery of the insurance policies
required hereunder; or in the performance or observance of any other covenant, condition or term of
this Deed, then Lender, at its option, may perform or pay the same, and all payments made or costs
incurred by Lender in connection therewith, shall be secured hereby and shall be, without demand,
immediately repaid by Grantor to Lender with interest thereon at the highest rate of interest in
effect from time to time under the Term Note. Lender shall be the sole judge of the legality,
validity and priority of any such Tax, claim and premium; of the necessity for any such actions;
and of the amount necessary to be paid in satisfaction thereof. Lender is hereby empowered to
enter and to authorize others to enter upon the Premises for the purpose of performing or observing
any such defaulted covenant, condition or term, without thereby becoming liable to Grantor or any
Person in possession holding under Grantor.

2.10. Further Assurances. At any time, and from time to time, upon request by Lender,
Grantor will make, execute and deliver or cause to be made, executed and delivered, to Lender, any
and all other further instruments, certificates and other documents as may, in the opinion of
Lender, be necessary or desirable in order to effectuate, complete, perfect or continue and
preserve the obligations of Grantor under the Term Note and this Deed and the priority of the lien
and security title of this Deed. Upon any failure by Grantor so to do, Lender may make, execute
and record any and all such instruments, certificates and documents for and in the name of Grantor
and Grantor hereby irrevocably appoints Lender, the agent and attorney-in-fact of Grantor so to do.

 

- 6 -

 

ARTICLE III.

3.01. Event of Default. Each of the following shall constitute an “Event of Default”
under this Deed:

(a) Failure by Grantor to pay any of the Indebtedness evidenced by the Term Note on the
due date thereof (whether due at stated maturity, on demand, by acceleration or otherwise);

(b) Failure by Grantor duly and punctually to observe, perform or discharge any
covenant or duty in this Deed; or

(c) Any claim of priority to this Deed by title, lien or otherwise is asserted by
Grantor, or is asserted and finally established as valid by any other Person (other than
with respect to Permitted Liens) in any equitable or legal proceeding, whether as a claim,
counterclaim, defense or otherwise.

3.02. Acceleration of Maturity. Upon or after an Event of Default, Lender may, at its
option, declare all or any portion of the Indebtedness to be (and the same shall thereupon become)
immediately due and payable without notice or demand, time being of the essence of this Deed; and
no omission or delay on the part of Lender to exercise such option when entitled so to do shall be
considered as a waiver of such right.

3.03. Right of Lender to Enter and Take Possession.

(a) Upon or after the occurrence of an Event of Default, Grantor, upon demand of Lender, shall
forthwith surrender to Lender the actual possession of the Premises and if, and to the extent,
permitted by Applicable Law, Lender may enter and take possession of the Premises and may exclude
Grantor and Grantor’s agents and employees wholly therefrom.

(b) Upon every such entering and taking of possession, Lender may hold, store, use, operate,
manage, control, and maintain the Premises and conduct the business thereof, and, from time to
time, (i) make all necessary and proper repairs, replacements, additions, and improvements thereto
and thereon and purchase or acquire additional fixtures, personalty and other property, (ii) insure
or keep the Premises insured, (iii) manage and operate the Premises and exercise all the rights and
powers of Grantor in its name or otherwise, with respect to the same, and (iv) enter into any and
all agreements with respect to the exercise by others of any of the powers herein granted Lender,
all as Lender may from time to time determine to be to its best advantage; and Lender may collect
and receive all of the income, rents, profits, issues and revenues of the Premises, including,
without limitation, the past due as well as those accruing thereafter and, after deducting (aa) all
expenses of taking, holding, managing and operating the Premises (including, without limitation,
compensation for services of all Persons employed for such purposes), (bb) the cost of all such
maintenance, repairs, replacements, additions, improvements, purchases, and acquisitions, (cc) the
cost of such insurance, (dd) such Taxes prior to the lien of this Deed as Lender may determine to
pay, (ee) other proper charges upon the Premises or any part thereof, and (ff) the fees and
expenses of attorneys and agents of Lender, shall apply the remainder of the money so received by
Lender to any balance of the Indebtedness outstanding.

 

- 7 -

 

(c) For the purpose of carrying out the provisions of this Section 3.03, Grantor hereby
constitutes and appoints Lender the true and lawful attorney-in-fact of Grantor with full power of
substitution, to do and perform, from time to time, in Grantor’s or Lender’s name but at Grantor’s
expense, any and all actions necessary and incidental to such purpose and does, by these presents,
ratify and confirm any and all actions of said attorney-in-fact in the premises.

3.04. Appointment of a Receiver.

(a) Upon or after the occurrence of an Event of Default, Lender, upon application to a court
of competent jurisdiction, shall be entitled, without notice and without regard to the adequacy of
any security for the Indebtedness or the solvency of any party bound for its payment, to the
appointment of a receiver to take possession of and to operate the Premises and to collect the
rents, profits, issues, and revenues thereof.

(b) Grantor will pay to Lender upon demand all expenses, including, without limitation,
receiver’s fees, attorneys’ fees, costs and agent’s compensation, incurred pursuant to this Section
3.04; and all such expenses shall constitute part of the Indebtedness and shall be secured by this
Deed.

3.05. Power of Sale. Upon or after the occurrence of an Event of Default, Lender, at
its option, may sell all or any part of the Premises at public sale or sales before the door of the
courthouse of the county in which the Premises or any part of the Premises is situated, to the
highest bidder for cash, in order to pay the Indebtedness and accrued interest thereon and all
expenses of the sale and all proceedings in connection therewith, including, without limitation,
attorneys’ fees after advertising the time, place and terms of sale once a week for four (4) weeks
in a newspaper in which sheriff’s sales are advertised in said county. Lender may bid and purchase
at such sale. At any such public sale, Lender may execute and deliver to the purchaser a
conveyance of the Premises or any part of the Premises in fee simple with full warranties of title
and to this end, Grantor hereby constitutes and appoints Lender the agent and attorney-in-fact of
Grantor to make such sale and conveyance, and thereby to divest Grantor of all right, title, equity
or other interest that Grantor may have in and to the Premises and to vest the same in the
purchaser or purchasers at such sale or sales, and all the acts and doings of said agent and
attorney-in-fact are hereby ratified and confirmed and any recitals in said conveyance or
conveyances as to facts essential to a valid sale shall be binding on Grantor. The aforesaid power
of sale and agency hereby granted are coupled with an interest and are irrevocable by death or
otherwise, are granted as cumulative of the other remedies provided by law for collection of the
Indebtedness and shall not be exhausted by one exercise thereof but may be exercised until full
payment of all sums secured hereby. Upon any such public sale pursuant to the aforementioned power
of sale and agency, the proceeds of said sale shall be applied first to the costs and expenses of
such sale and of all proceedings in connection therewith, including, without limitation, reasonable
attorneys’ fees, and the balance shall be applied to the remainder of the Indebtedness. Any excess
shall be paid to Grantor or to such other Person as may be required by Applicable Law.

3.06. Grantor as Tenant Holding Over. In the event of any such public sale pursuant
to the aforesaid power of sale and agency, Grantor shall be deemed a tenant holding over and
shall forthwith deliver possession to the purchaser or purchasers at such sale or be summarily
dispossessed according to provisions of law applicable to tenants holding over.

 

- 8 -

 

3.07. Discontinuance of Proceedings and Restoration of the Parties. If Lender shall
have proceeded to enforce any right of remedy under this Deed by foreclosure, entry or otherwise,
or if Lender commences advertising of the intended exercise of the sale under power provided
hereunder, and such proceedings or advertisement shall have been withdrawn, discontinued or
abandoned for any reason or shall have been determined adversely to Lender, then and in every such
case Grantor and Lender shall be restored to their former positions and rights hereunder, and all
rights, powers and remedies of Lender shall continue as if no such proceeding or advertisement had
been taken.

3.08. Remedies Cumulative. No right, power or remedy conferred upon or reserved to
Lender by this Deed is intended to be exclusive of any other right, power or remedy, but each and
every such right, power and remedy shall be cumulative and concurrent and shall be in addition to
any other right, power and remedy given hereunder or now or hereafter existing at law or in equity
or by statute.

ARTICLE IV.

4.01. Successors and Assigns. Whenever in this Deed one of the parties hereto is
named or referred to, the legal representatives, successors and assigns of such parties shall be
included and all covenants and agreements contained in this Deed by or on behalf of Grantor or by
or on behalf of Lender shall bind and inure to the benefit of their respective legal
representatives, successors and assigns. Whenever the singular or plural number, masculine or
feminine or neuter gender is used herein, it shall equally include the other.

4.02. Headings. The headings of the sections, paragraphs and subdivisions of this
Deed are for the convenience of reference only, are not to be considered a part hereof and shall
not limit or otherwise affect any of the terms hereof.

4.03. Severability. If any clause or provisions herein contained operates or would
prospectively operate to invalidate this Deed in whole or in part, then such clause or provision
shall be ineffective only to the extent of such invalidity, without invalidating the remaining
provisions of this Deed.

 

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4.04. Notices. All notices, requests and demands to or upon a party hereto shall be
in writing and shall be sent by certified or registered mail, return receipt requested, personal
delivery against receipt or by telecopier or other facsimile transmission and, unless otherwise
expressly provided herein, shall be deemed to have been validly served, given or delivered when
delivered against receipt or three Business Days after deposit in the U. S. mail, postage prepaid,
or, in the case of facsimile transmission, when received at the office of the noticed party, in
each case addressed as follows:

	 	 	 	 	 	 	 
	 

	 	(a)
	 	To Grantor:
	 	4271 Mundy Mill Road
	 

	 	 	 	 	 	P. O. Box 1889
	 

	 	 	 	 	 	Oakwood, Georgia 30566
	 

	 	 	 	 	 	Attention: Clyde A. McArthur, President
	 

	 	 	 	 	 	Fax No.: (707) 538-5016
	 
	 	 	 	 	 	 
	 

	 	(b)
	 	To Lender:
	 	7122 Nolensville Road
	 

	 	 	 	 	 	Nolensville, Tennessee 37135
	 

	 	 	 	 	 	Attention: Elizabeth Lowery Saffle
	 

	 	 	 	 	 	Fax No.: (615) 776-8648

Either party may specify a different address for receiving notices, requests, demands, tenders
and other communications hereunder by giving written notice of the new address to the other party
in the manner herein provided.

4.05. No Implied Waivers. No delay or omission by Lender to exercise any right, power
or remedy accruing upon any breach or Event of Default shall exhaust or impair any such right,
power or remedy or shall be construed to be a waiver of any such breach or Event of Default, or
acquiescence therein, and every right, power and remedy given by this Deed to Lender may be
exercised from time to time and as often as may be deemed expedient by Lender. No consent by
Lender or waiver, express or implied, by Lender to or of any breach or Event of Default shall be
deemed or construed to be a consent or waiver to or of any other breach or Event of Default.

4.06. Governing Law. This Deed shall be governed in all respects by and construed in
accordance with the internal laws of the State of Georgia.

4.07. Waiver of Certain Rights. GRANTOR HEREBY WAIVES ANY RIGHT GRANTOR MAY HAVE
UNDER THE CONSTITUTION OF THE STATE OF GEORGIA OR THE CONSTITUTION OF THE UNITED STATES OF AMERICA
TO NOTICE OR TO A JUDICIAL HEARING PRIOR TO THE EXERCISE OF ANY RIGHT OR REMEDY PROVIDED TO LENDER
BY THIS DEED, AND GRANTOR WAIVES GRANTOR’S RIGHTS, IF ANY, TO SET ASIDE OR INVALIDATE ANY SALE
UNDER POWER DULY CONSUMMATED IN ACCORDANCE WITH THE PROVISIONS OF THIS DEED ON THE GROUND (IF SUCH
BE THE CASE) THAT THE SALE WAS CONSUMMATED WITHOUT PRIOR NOTICE OR JUDICIAL HEARING. THE WAIVERS
MADE BY GRANTOR IN THIS SECTION AND ELSEWHERE IN THIS DEED HAVE BEEN MADE VOLUNTARILY,
INTELLIGENTLY AND KNOWINGLY BY GRANTOR AFTER GRANTOR HAS READ AND UNDERSTOOD THIS DEED AND HAS BEEN
AFFORDED AN OPPORTUNITY TO BE INFORMED BY COUNSEL OF GRANTOR’S POSSIBLE ALTERNATIVE RIGHTS, AND BY
EXECUTING THIS DEED GRANTOR ACKNOWLEDGES SO MAKING SUCH WAIVERS.

	 	 	 
	 

	 	 
 Grantor
Initial

 

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IN WITNESS WHEREOF, Grantor has caused this Deed to be signed, sealed and delivered by a duly
authorized officer on the day and year first written above.

	 	 	 	 	 	 	 
	Signed, sealed and delivered

in the presence of:	 	 	 	HOME FEDERAL HOLDINGS CORPORATION

(“Grantor”)
	 
	 	 	 	 	 	 
	/s/ J. M. Walters

	 	 	 	By:
	 	/s/ Clyde A. McArthur
	 

	 	 	 	 	 	 
	Unofficial Witness

	 	 	 	 	 	Clyde A. McArthur, President
	 
	 	 	 	 	 	 
	/s/ Cheryl Walters
 

	 	 	 	Attest:	 	/s/ Ricky D. Davis
 

	 	 
	Notary Public

	 	 	 	 	 	Ricky D. Davis, Secretary
	 
	 	 	 	 	 	 
	My Commission Expires:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	January 10, 2011
 

	 	 	 	 	 	[CORPORATE SEAL] 
	 
	 	 	 	 	 	 
	[NOTARIAL SEAL]
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	[Cheryl Walters
	 	 	 	 	 	 
	Notary Public
	 	 	 	 	 	 
	Hall County, Georgia
	 	 	 	 	 	 
	Comm Expires: Jan 10, 2011]

	 	 	 	 	 	 

 

- 11 -

 

EXHIBIT A

LEGAL DESCRIPTION

All that tract or parcel of Land lying and being in 8th Land District, Land Lot 28, City
of Oakwood, Hall Co. GA and being shown and delineated on plat of survey prepared for College
Square Office by Henderson Land Surveying, LLC dated July 4, 2007 and last revised October 1, 2007
and being more particularly described according to said survey as follows:

BEGINNING AT AN IRON PIN SET, said iron pin being located North 51 degrees 59 minutes 05 seconds
West 192.67 feet from the mitered right of way intersection of Frontage Road and Mundy Mill Road;
thence along the Northeasterly right-of-way of Mundy Mill Road, North 33 degrees 07 minutes 31
seconds West 228.33 feet to an iron pin set; thence North 43 degrees 22 minutes 30 seconds West
74.70 feet to an iron pin set; thence leaving said right-of-way and along property now or formerly
owned by Selig Enterprises, Inc., North 57 degrees 39 minutes 30 seconds East 260 feet to an iron
pin found (concrete monument); thence South 32 degrees 47 minutes 19 seconds East 298.93 feet to an
iron pin found; thence along property now or formerly owned by AKB International Investments, Inc.,
South 57 degrees 04 minutes 32 seconds West 26.37 feet to an iron pin found; thence along property
now or formerly owned by W W Construction Co., South 57 degrees 01 minutes 09 seconds West 218.56
feet to an iron pin set and being the POINT OF BEGINNING.

This is a portion of the property described in 2 Warranty Deeds into Home Federal Savings and Loan
Association of Gainesville, the first being recorded in Deed Book 435 pages 302-303 and the second
being recorded in Deed Book 436, pages 122-123, Hall County GA Deed Records.

TOGETHER WITH easement rights contained in Easement by and between Selig Enterprises, Inc. and
Trust Company Bank of North Georgia, dated May 25,1994, filed June 3,1994, recorded in Deed Book
2194, page 330, Hall County, GA Records.

 

 

 

EXHIBIT B

PERMITTED LIENS

	1.	 	Property taxes for 2009 and subsequent years which are a lien but which are not yet due and
payable.

	2.	 	Those matters expressly listed in Schedule B, Part II of First American Title Insurance
Company’s Commitment for Title Insurance (Commitment No. FATIC-205), with an effective date of
October 15, 2008, as thereafter amended and marked (and the subsequent Loan Title Policy to be
issued thereafter, with an effective date to be the date of recordation of the Deed to Secure
Debt) in favor of Peoples State Bank of Commerce, its successors and/or assigns, as named
insured.

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