Document:

NON-QUALIFIED STOCK OPTION AGREEMENT BETWEEN THE COMPANY AND MICHAEL DINKINS

 Exhibit 10.5 
  
 October 1, 2005 
  
 Michael Dinkins 
 [address omitted]

  
 Dear Michael : 
  
 You have been granted a nonqualified stock option to purchase 5,000 shares
of Common Stock of the Company, subject to the terms and conditions (i) in the Company’s 2000 Stock Incentive Plan, as amended from time to time (the “Plan”), and (ii) as set forth in Exhibit A, attached hereto and made a
part hereof (together, with this letter, the “Agreement”), as follows: 
  

			
	 Date of Agreement/Grant:
	    	October 1, 2005
	 Exercise Price per Share:
	    	$37.32
	 Total Exercise Price:
	    	$186,600.00
	 Expiration Date:
	    	10/1/2012
	 Vesting Schedule:
	    	25% per year for 4 years
		
	 	    	1,250 on 10/01/2006
	 	    	1,250 on 10/01/2007
	 	    	1,250 on 10/01/2008
	 	    	1,250 on 10/01/2009

  
 Please indicate your
acceptance by executing two (2) original copies of this Agreement and returning one (1) copy by U.S. Mail to Cindy Freeze. 
  
 Very truly yours, 
  
 Martin L. Vaughan, III 
 Chairman and Chief Executive Officer 
  
 By my signature below, I hereby acknowledge my Consent to Electronic Delivery, receipt of this Option, pursuant to all terms and conditions of the Plan, and electronic receipt of the Plan and Prospectus. I agree to conform to all of the
terms and conditions of the Option and the Plan. 
  

					
	 Signature:                /s/ Michael
Dinkins            
	 	 	  	Date:                                     
                                        
  
	 Michael Dinkins
	 	 	  	 

  
 Note: If there are any
discrepancies in the name or address shown above, please make the appropriate corrections on this form. 

 EXHIBIT A 
  

TERMS AND CONDITIONS 
 STOCK OPTION
AGREEMENT 
  
 1. Exercise of Option. Except as provided
in paragraphs 4, 5, 6, 11 and 12 of these Terms and Conditions, this Option shall be exercisable as set forth in the Vesting Schedule for each full year, up to a total of four (4) full years, that Optionee continues to be employed by the
Company after the date of this Agreement. Once this Option has become exercisable with respect to any portion of the total number of shares in accordance with the preceding sentence, it shall continue to be exercisable with respect to such shares
until the termination of Optionee’s rights hereunder pursuant to paragraphs 4, 5 or 6, or until the Expiration Date. A partial exercise of this Option shall not affect Optionee’s right to exercise subsequently this Option with respect to
the remaining shares that are exercisable, subject to the conditions of the Plan and this Agreement. 
  
 2. Method of Exercising and Payment for Shares. This Option may be exercised only by written notice delivered to the attention of the
Company’s Secretary at the Company’s principal office. The written notice shall specify the number of shares being acquired pursuant to the exercise of the Option when such Option is being exercised in part in accordance with the Vesting
Schedule. The exercise date shall be the date such notice is received by the Company. Such notice shall be accompanied by payment of the Option price in full for each share (a) in cash (United States dollars) or by cash equivalent acceptable to
the Company, or (b) by a cashless exercise pursuant to Section IX(2) of the Plan. 
  
 3. Nontransferability. This Option is nontransferable except, in the event of the Optionee’s death, by will or by the laws of descent and distribution subject to the terms hereof. During Optionee’s
lifetime, this Option may be exercised only by Optionee. 
  
 4.
Exercise in the Event of Death. This Option shall be exercisable in full in the event that Optionee dies while employed by the Company or an Affiliate and prior to the Expiration Date of this Option. In that event, this Option may be
exercised by Optionee’s estate, or the person or persons to whom his rights under this Option shall pass by will or the laws of descent and distribution. Optionee’s estate or such persons must exercise this Option, if at all, within one
year of the date of Optionee’s death or during the remainder of the period preceding the Expiration Date, whichever is shorter, but in no event may the Option be exercised prior to the expiration of six (6) months from the date of the
grant of the Option. 
  
 5. Exercise in the Event of Permanent
and Total Disability. This Option shall be exercisable in full if Optionee becomes Disabled while employed by the Company or an Affiliate and prior to the Expiration Date of this Option. In that event, Optionee must exercise this Option, if at
all, within one year of the date he becomes Disabled or during the remainder of the period preceding the Expiration Date, whichever is shorter, but in no event may the Option be exercised prior to the expiration of six (6) months from the date
of the grant of the Option. 
  
 6. Exercise After Termination
of Employment. In the event that the Optionee retires from employment with the Company after attaining age 62 and serving at least 10 consecutive years with the Company or an Affiliate or predecessor thereof, then this Option shall be
exercisable in full but must be exercised by the Optionee, if at all, within one year following his retirement date or during the remainder of the period preceding the Expiration Date, whichever is shorter, but in no event may the Option be
exercised prior to the expiration of six (6) months from the date of the grant of the Option. In all events other than those events addressed in paragraphs 4 or 5 or the foregoing sentence of this paragraph 6, in which Optionee ceases to be
employed by the Company: (a) Optionee may exercise the Option in whole or in part with respect to that number of shares which are exercisable by him under the Vesting Schedule on the date his employment terminated, and (b) this Option must
be exercised by Optionee, if at all, within ninety (90) days following the date upon which he ceases to be employed by the Company or during the remainder of the period preceding the Expiration Date, whichever is shorter, but in no event may
the Option be exercised prior to the expiration of six (6) months from the date of the grant of the Option. 
  

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 7. Fractional Shares. Fractional shares shall not be issuable hereunder, and when any provision
hereof may entitle Optionee to a fractional share such fraction shall be disregarded. 
  
 8. No Right to Continued Employment. This Option does not confer upon Optionee any right with respect to continuance of employment by the Company or an Affiliate, nor shall it interfere in any way with the
right of the Company or an Affiliate to terminate his employment at any time. 
  
 9. Investment Representation. Optionee agrees that, unless such shares previously have been registered under the Securities Act of 1933, as amended (the “Securities Act”): (i) any shares
purchased by him hereunder will be purchased for investment and not with a view to distribution or resale and (ii) until such registration, certificates representing such shares may bear an appropriate legend to assure compliance with the
Securities Act. This investment representation shall terminate when such shares have been registered under the Securities Act. 
  
 10. Change in Capital Structure. Subject to any required action by the shareholders of the Company, the number of shares of Common Stock covered by
this Option, and the price per share thereof, shall be proportionately adjusted by the Company for any increase or decrease in the number of issued and outstanding shares of Common Stock of the Company resulting from any stock dividend (but only on
the Common Stock), stock split, combination, reclassification, recapitalization or general issuance to holders of Common Stock of rights to purchase Common Stock at substantially below its then fair market value, or any change in the number of such
shares outstanding effected without receipt of cash or property or labor or services by the Company, or any spin-off or other distribution of assets to shareholders. 
  
 In the event of a change in the Common Stock of the Company as presently constituted, which is limited to a change of all or
a part of its authorized shares without par value into the same number of shares with a par value, or any subsequent change into the same number of shares with a different par value, the shares resulting from any such change shall be deemed to be
the Common Stock within the meaning of the Plan. 
  
 The grant of
this Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure or to merge or to consolidate or to dissolve,
liquidate or sell, or transfer all or any part of its business or assets. 
  
 11. Change of Control. Notwithstanding any other provision of this Agreement to the contrary, in the event of a Change of Control, the provisions of Section XIII(3) of the Plan shall apply to this Option.

  
 12. Forfeiture of Certain Gains. 
  
 (a) Termination for Cause. If Optionee’s
employment is terminated for “Cause” within one year of any exercise of this Option, in whole or in part, the Optionee shall pay to the Company an amount equal to the gain realized by Optionee from such exercise represented by the excess
of the Fair Market Value on the date of exercise over the Option price multiplied by the number of shares purchased, without regard to any subsequent market price increase or decrease (“Option Gain”). For purposes of this paragraph,
“Cause” shall have the meaning ascribed to it in any employment agreement between the Optionee and the Company that is in effect at the time of termination and, if no such agreement exists, it shall mean: 
  
 (i) the willful and continued failure of the Optionee to
perform substantially the Optionee’s duties with the Company or one of its affiliates (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to
the Optionee by the Company which specifically identifies the manner in which the Company believes that the Optionee has not substantially performed the Optionee’s duties, or 
  
 (ii) the willful engaging by the Optionee in illegal conduct or gross misconduct which is materially and
demonstrably injurious to the Company. 
  

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 (b) Forfeiture if Optionee Engages in Certain Activities. If Optionee engages in
any activity in competition with any activity of the Company, or inimical, contrary or harmful to the interests of the Company, including but not limited to (i) accepting employment with or serving as a consultant advisor or in any other
capacity to an employer that is in competition with or acting against the interests of the Company, (ii) disclosing or misusing any confidential information or material concerning the Company or (iii) participating in any hostile takeover
attempt, then (1) this Option shall terminate effective the date on which Optionee enters into such activity, unless terminated sooner by operation of another term on condition of this Agreement or the Plan, and (2) the Optionee shall pay
to the Company an amount equal to the Option Gain realized by Optionee from any exercise of this Option, in whole or in part, within one year of the date such activity began. 
  
 (c) Right of Set-off. Optionee hereby consents to a deduction from any amounts owed by the Company to
Optionee from time to time (including amounts owed as wages or other compensation, fringe benefits or vacation pay, to the extent of any amounts Optionee owes the Company under paragraphs 12(a) and (b). Whether or not the Company elects to make any
set-off in whole or in part, if Company does not recover by means of set-off the full amount owed by Optionee under paragraphs 12(a) and (b), Optionee agrees to immediately pay the unpaid balance to the Company. 
  
 13. Governing Law. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the Commonwealth of Virginia, except to the extent that federal law shall be deemed to apply. 
  
 14. Conflicts. In the event of any conflict between the provisions of the Plan as in effect on the date hereof and the provisions of this
Agreement, the provisions of the Plan shall govern. All references herein to the Plan shall mean the Plan as in effect on the date hereof. 
  
 15. Optionee Bound by Plan. Optionee hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all the terms and provisions
thereof. 
  
 16. Binding Effect. Subject to the limitations
stated above and in the Plan, this Agreement shall be binding upon and inure to the benefit of the legatees, distributes, and personal representatives of Optionee and the successors of the Company. 
  
 17. Gender. All pronouns used herein shall be deemed to refer to
either the male or female as appropriate. 
  
 18. Notice and
Consent to Electronic Delivery. The Company expects to deliver notices and certain documents relating to its employee benefit plans by posting the information on the Company’s web site, intranet or electronic bulletin board or
transmitting the material to employees by e-mail. These documents include employee benefits plans and any amendments thereto, election forms, prospectuses, supplements to prospectuses, annual reports to shareholders, informational brochures and
similar information. The Company will provide you with e-mail notification of the posting of any of the foregoing documents. This method of notification and access to documents relating to employee benefit plans will be in lieu of paper
delivery of the same documents. To satisfy legal requirements, your signature is an affirmative election to accept electronic notification and delivery of these documents in lieu of paper delivery, as well as all other terms of the award.

  
 19. Defined Terms. All terms used herein that are
defined in the Plan shall have the meanings given to them in the Plan. 
  

 4First Amendment to Lease Agreement, dated October 1, 2005

 Exhibit 10.1 
  
 FIRST AMENDMENT OF LEASE 
  
 THIS FIRST AMENDMENT OF LEASE (this “Amendment”) is dated as of the 1st day of October, 2005 (the “Effective Date”) by and between
NDNE 9/90 Corporate Center LLC (the “Landlord”), and GTC Biotherapeutics, Inc. (the “Tenant”). 
  
 BACKGROUND 
  

	A.	Reference is hereby made to that certain Lease, dated March 26, 1999, by and between Landlord and Tenant (then known as Genzyme Transgenics Corporation), as affected by that
certain letter agreement dated June 11, 1999 regarding term and rent commencement dates (hereinafter referred to as the “Lease”). 

  

	B.	Under the Lease, the Tenant currently leases from the Landlord 12,468 rentable square feet (the “Premises”) on the fourth floor of the building (the “Building”)
known as and numbered 175 Crossing Boulevard, Framingham, Massachusetts, more particularly described therein. 

  

	C.	Capitalized terms not defined herein shall have the same meaning ascribed to them in the Lease. 

  

	D.	The term of the Lease is currently scheduled to expire on June 30, 2006. The Landlord and the Tenant desire to amend the Lease as of the date hereof to, among other revisions,
(i) extend the term of the Lease, and (ii) provide for the amount of Annual Fixed Rent commencing October 1, 2005 and through the extended term, all on the terms and conditions set forth below. 

  
 AGREEMENT 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and for
the mutual promises contained herein, Landlord and Tenant hereby agree as follows: 
  
 1.    Extension of Term. The Term of the Lease (sometimes referred to in the Lease as the “Original Term”) is hereby extended to and including September 30, 2010, and all
references to the “Term” or “Original Term” in the Lease shall be deemed a reference to the current Term as hereby extended. 
  
 2.    Annual Fixed Rent During the Extended Term. From and after October 1, 2005, Annual Fixed Rent due and payable from
the Tenant to the Landlord under the Lease shall be as follows: 

							
	 Period

	 	 Per Sq. Ft.

	 	 Monthly Amount

	 	 Annual Amount

	 10/1/2005-9/30/2006
	 	$23.25	 	$24,156.75	 	$289,881.00
	 10/1/2006-9/30/2008
	 	$24.25	 	$25,195.75	 	$302,349.00
	 10/1/2008-9/30/2030
	 	$25.25	 	$26,234.75	 	$314,817.00

  
 3.    Annual Base Operating Costs During the Extended Term. From and after October 1, 2005, the term “Annual Base Operating Costs” under the Lease shall mean an amount equal to the Landlord’s
Operating Costs for the Property during the calendar year January 1, 2005 through December 31, 2005. 
  
 4.    Annual Base Real Estate Taxes During the Extended Term. From and after October 1, 2005, the term “Annual Base
Real Estate Taxes” under the Lease shall mean an amount equal to the Real Estate Taxes for the Property applicable to the fiscal tax year July 1, 2005 through June 30, 2006, 
  
 5.    Option to Extend. Exhibit G of the Lease is
hereby amended to provide that (i) the Term of the Lease may be extended for only one (1) additional period of five (5) years (instead of the two (2) additional periods of five (5) years each set forth therein), and all
references to a “Second Extension Period” are hereby deleted from said Exhibit G, and (ii) the reference to “97.5%” in the third paragraph of Exhibit G is hereby deleted and “100%” substituted therefor.
Accordingly, if the Term of the Lease is properly extended as set forth in Exhibit G, as hereby amended, the Lease shall expire for all purposes on September 30, 2015, and Tenant shall have no further right to extend the Lease whatsoever.

  
 6.    Landlord’s Allowance.
Upon Tenant’s written request given prior to August 31, 2006 and in the manner set forth in the Lease, Landlord agrees to fund the costs incurred by Tenant in connection with modifications to the Premises to be made by Tenant (“Tenant
Improvements”), not to exceed a maximum amount of Fifty Thousand and No/100 Dollars ($50,000) subject to the provisions hereof and the Lease (“Landlord’s Allowance”). The Landlord’s Allowance shall be paid to Tenant, or
directly to Tenant’s general contractor, within thirty (30) days after presentation by Tenant to Landlord of evidence reasonably satisfactory to Landlord of Tenant’s payment for such work (or evidence of completion of such work in the
event of any such direct payment), when finished, including, without limitation, invoices (receipted if applicable) and the like. To the extent that the cost of such work exceeds Landlord’s Allowance, Tenant shall be entirely responsible for
such excess. Tenant agrees to use the Landlord’s contractor, Cranshaw Construction of New England Limited Partnership (“Cranshaw”), as the general contractor in connection with such work. Cranshaw shall competitively bid such work,
including subcontractors recommended by Tenant, and the same shall be done on an open book basis with Tenant with a minimum of two (2) competitive bids for each trade/division of such work, to the extent feasible. Cranshaw shall earn a fee of
five percent (5%) of the total cost of the work, such cost of the work to include, without limitation, general conditions and special conditions. All such work shall be undertaken in accordance with the applicable terms and conditions of the
Lease, including, without limitation, Section 9.4 thereof. Landlord shall not charge Tenant for any supervisory or administrative fee in connection with such work. The final, actual amount of the Landlord’s Allowance paid hereunder by
Landlord, if any, shall be amortized over the remainder of the Original Term (through September 30, 2010) 

  

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on a straight line basis, plus interest at the rate of eight percent (8%) per annum, commencing from and after the date of disbursement of such amount.
If the Tenant shall fail to deliver such written request to Landlord by August 31, 2006, then the Landlord’s agreement to provide the Landlord’s Allowance set forth herein shall be void, time remaining of the essence of the Lease.
Such work shall begin within thirty (30) days after August 31, 2006, and shall be completed within sixty (60) days. 
  
 7.    Security Deposit/Letter of Credit. Within forty-five (45) days after the Effective Date, Tenant shall obtain a
replacement Letter of Credit in the amount of $249,360 reasonably satisfactory to Landlord, and in compliance with Section 13.8 of the Lease, which Letter of Credit shall apply to the entire Original Term as herein extended, and as provided in
Section 13.8 of the Lease. The parties expressly confirm and agree that if the Term of the Lease is extended in conformity with the requirements of Exhibit G of the Lease, as herein amended, a further condition of such extension shall be the
provision to Landlord of a Letter of Credit with respect to such extended period, and in conformity with the requirements of said Section 13.8. 
  
 8.    Satellite Dish. The Lease is hereby amended by adding the following as Section 13.11 thereof: 
  
 Section 13.11. Satellite Dish. Notwithstanding
anything to the contrary contained in this Lease, the Landlord hereby agrees that at any time during the Term, the Tenant shall have the Non-Exclusive right to install, on the roof of the Building, a satellite dish (the “Dish”). The Tenant
agrees and acknowledges, however, that the location of any Dish, the method of any such installation, and the type of Dish proposed to be installed shall be subject to: (i) compliance by the Tenant with all applicable laws, rules, regulations
and the like pertaining thereto; (ii) the consent by the Landlord, which consent shall not be unreasonably withheld provided that the Landlord and the Landlord’s engineers are satisfied therewith; and (iii) a determination to be made
that such Dish will not interfere with any other equipment or use thereof located in, on or in the vicinity of the Building, and that such Dish will not be visible from the exterior of the Building. If Tenant shall install such Dish, (a) the
Tenant shall do so at its own cost and expense and in accordance with all applicable laws, rules and regulations, including, without limitation, reimbursement to Landlord for its third party engineers, if applicable; (b) the Tenant shall
maintain such Dish in accordance with the Landlord’s reasonable rules and regulations; and (c) the Tenant shall install such Dish in a manner so as to maintain in full force and effect any applicable roof and/or construction related
warranties, failing which the Tenant shall promptly reimburse the Landlord for any costs and expenses incurred by the Landlord as a result of such failure. Additionally, the Tenant shall defend, indemnify and hold the Landlord harmless from and
against any claims, costs and expenses incurred by the Landlord as a result of such installation by the Tenant or in any other manner in connection with such Dish, including, without limitation, all costs and expenses relating to roof and/or wall
penetrations. If the Tenant shall install such Dish, the Tenant shall be responsible for the maintenance and repair thereof, at the Tenant’s sole cost and expense, and such Dish shall be at the sole risk of the Tenant, the Landlord having no
obligation with respect to any insurance relating thereto. Also, the Tenant hereby agrees, upon the Landlord’s notice requesting same, to remove or relocate such Dish and to repair any and all damage caused by such removal or relocation. At the
expiration or other termination 

  

 3 

 
of this lease, such Dish shall remain the property of the Tenant, and shall be removed by the Tenant at its own cost and expense, and the Tenant shall repair
any and all damage caused by such removal, at its own cost and expense, in accordance with all applicable laws, rules and regulations, and in such a manner so as to maintain in full force and effect any applicable roof and/or construction related
warranties, failing which the Tenant shall reimburse the Landlord for any costs and expenses incurred by the Landlord as a result of such failure. 
  
 9.    Miscellaneous. Tenant hereby acknowledges that, as of the date hereof: (i) Landlord has no undischarged obligations
under the Lease to perform any work or improvements to the Premises or to provide any tenant improvement allowance under the Lease except as expressly set forth herein, Tenant hereby confirming that it is now occupying the Premises, and Tenant
accepts the Premises as of the date hereof, and will accept the Premises as of the commencement of the extended term herein provided in “AS IS” condition; (ii) there are no offsets or defenses that Tenant has against the full
enforcement of the Lease by Landlord; (iii) neither Tenant, nor to Tenant’s knowledge, Landlord, is in any respect in default under the Lease; and (iv) Tenant has not assigned, transferred or hypothecated the Lease or any interest
therein or subleased all or any portion of the Premises. 
  
 10.    Brokers. Landlord and Tenant each represent that there are no brokers involved with respect to this Amendment other than The Staubach Company and Trammell Crow Company, whose fees shall be paid by Landlord,
and each party agrees to indemnify, defend and hold harmless the other with respect to any breach of such representation. 
  
 11.    Effective Date. The parties agree that this Amendment shall be effective from and after the Effective Date and not to
any period of time prior thereto. To the extent this Amendment contains language which purports to amend the Lease with respect to periods of time prior to the Effective Date, such language is for clarification purposes only and shall not be deemed
to change the obligations of the parties with respect thereto. In no event shall this Amendment be construed to impose any liability on Landlord for any period of time preceding its ownership of the Property. 
  
 12.    Ratification of Lease Provisions. Except as
otherwise expressly amended, modified and provided for in this Amendment, Tenant hereby ratifies all of the provisions, covenants and conditions of the Lease, and such provisions, covenants and conditions shall be deemed to be incorporated herein
and made a part hereof and shall continue in full force and effect. 
  
 13.    Entire Amendment. This Amendment contains all the agreements of the parties with respect to the subject matter hereof and supersede all prior dealings between the parties with respect to such subject
matter. 
  
 14.    Authority. Landlord
and Tenant each warrant to the other that the person or persons executing this Amendment on its behalf has or have authority to do so and that such execution has fully obligated and bound such party to all terms and provisions of this Amendment.

  

 4 

 15.    Binding Amendment. This Amendment shall be binding upon, and shall
inure to the benefit of the parties hereto, and their respective successors and assigns. 
  
 16.    Governing Law. This Amendment shall be governed by the laws of The Commonwealth of Massachusetts. 
  
 17.    Severability. If any clause or provision of this Amendment is or should ever be held to be
illegal, invalid or unenforceable under any present or future law applicable to the terms hereof, then and in that event, it is the intention of the parties hereto that the remainder of this Amendment shall not be affected thereby, and that in lieu
of each such clause or provision of this Amendment that is illegal, invalid or unenforceable, such clause or provision shall be judicially construed and interpreted to be as similar in substance and content to such illegal, invalid or unenforceable
clause or provision, as the context thereof would reasonably suggest, so as to thereafter be legal, valid and enforceable. 
  
 18.    No Reservation. Submission of this Amendment for examination or signature is without prejudice and does not constitute a
reservation, option or offer, and this Amendment shall not be effective until execution and delivery by all parties. 
  
 19.    Counterparts. This Amendment may be executed simultaneously in two or more counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 5 

 WITNESS the execution hereof under seal as of the day and year first above written. 
  
 Landlord: 
  
 NDNE 9/90 Corporate Center LLC 
  
         By: NDNE
9/90, Inc., its Manager 
  

			
	 
		
	By:	 	 /s/ John J. O’Neil, III

	 	 	 Name: John J. O’Neil, III
 Title: Executive Vice
President

  
 Tenant: 
  
 GTC
Biotherapeutics, Inc. 
  

			
	 
		
	By:	 	 /s/ John B. Green

	 	 	 Name: John B. Green
 Title: Senior Vice
President

  

 6

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