Document:

ex10-21.htm

    
      
        
          

        

      

      Exhibit
10.21

       

      ENDORSEMENT
SPLIT-DOLLAR

       

      AGREEMENT

       

      Effective
June 1, 2006

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      TABLE OF
CONTENTS

      
        	 
      	 
      	 
      
	 
      	 
      	
                PAGE

              
	 
      	 
      
	
                AGREEMENT

              	
                1

              
	 	 	 
	
                1.

              	
                Effective
      Date

              	
                1

              
	
                2.

              	
                Purchase
      of Policy

              	
                1

              
	
                3.

              	
                Policy
      Ownership

              	
                1

              
	
                4.

              	
                Beneficiary
      Designation

              	
                1

              
	
                5.

              	
                Division
      of Cash Surrender Value

              	
                2

              
	
                6.

              	
                Division
      of Death Proceeds

              	
                2

              
	
                7.

              	
                Premium
      Payments

              	
                2

              
	
                8.

              	
                Termination
      of Agreement

              	
                2

              
	
                9.

              	
                Named
      Fiduciary

              	
                3

              
	
                10.

              	
                Funding
      Policy

              	
                3

              
	
                11.

              	
                Claims
      Procedure

              	
                3

              
	
                12.

              	
                Amendment
      and Revocation

              	
                4

              
	
                13.

              	
                Insurance
      Company Not a Party to This Agreement

              	
                4

              
	
                14.

              	
                Validity

              	
                4

              
	
                15.

              	
                Notices

              	
                4

              
	
                16.

              	
                Successors

              	
                4

              
	
                17.

              	
                Governing
      Law

              	
                5

              
	 
      	 
      	 
      
	
                SCHEDULE
      A

              	 
      
	 
      	 
      	 
      
	
                Beneficiary
      Designation

              	 
      

      

       

      
        
           

        

        
          (i)

          
            

          

        

        
           

        

      

       

      ENDORSEMENT
SPLIT-DOLLAR

       

      AGREEMENT

       

      This Endorsement, Split-Dollar
Agreement (“Agreement”) made and entered into by and between CharterBank, West
Point, Georgia (“Employer”) and David L. Strobel (“Director”);

       

      WHEREAS, Director is considered a
key person by Employer; and

       

      WHEREAS, Director has agreed to permit
Employer to purchase a life insurance policy on Director’s life;
and

       

      WHEREAS, the parties have further
agreed to divide the death benefit between the Employer and the Director’s
Beneficiary;

       

      NOW, THEREFORE, in consideration of the
premises and of the mutual promises contained herein, the parties hereto agree
as follows:

       

      1.          
  Effective Date

       

      The Effective Date of this Agreement
shall be June 1, 2006.

       

      2.          
  Purchase of Policy

       

      Employer has purchased the following
policies (“Policy”) on the life of Director which shall be subject to the terms
and conditions of this Agreement:

      
        	 
      	 
      	 
      	 
      
	
                1

                 

                Insurer

              	 
      	
                2

                Policy

                Number

              	 
      
	
                NYLIC

              	 
      	
                56612284

              	 
      
	 	 	 	 
	
                PL

              	 
      	
                VP62816880

              	 
      

      

       

      3.        
    Policy Ownership

       

      Employer shall be the sole and absolute
owner of the Policy, and may exercise all ownership rights granted to the owner
thereof by the terms of the Policy, except as may otherwise be limited by this
Agreement.

       

      4.        
    Beneficiary Designation

       

      Director shall have the right and power
to designate a person, persons or entity (“Beneficiary”) to receive Director’s
share of the proceeds payable upon his death, subject to any right or interest
the Employer may have in such proceeds, as provided in this Agreement. If no
valid Beneficiary designation has been filed with the Employer, upon Director’s
death, the Beneficiary will be deemed to be the Director’s estate.

       

      PAGE 1 -
ENDORSEMENT SPLIT-DOLLAR AGREEMENT

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      5.        
    Division of Cash Surrender Value

       

      Employer shall at all times be entitled
to all cash values under the terms of the Policy. Director shall have no right,
at any time, to the cash value of the Policy.

       

      6.        
    Division of Death Proceeds

       

      The division of the death proceeds of
the Policy is as follows:

       

      (a)           Director’s Share, Upon the death of Director,
the Beneficiary shall be entitled to one hundred thousand dollars
($100,000).

       

      (b)           Employer’s Share. The Employer shall be
entitled to the remainder of such death proceeds.

       

      (c)           Division of Interest. Employer and Beneficiary
shall share in any interest due with respect to the death proceeds on a pro-rata
basis as the proceeds due each respectively bears to the total proceeds,
excluding any such interest.

       

      7.      
      Premium Payments

       

      (a)           Subject
to Employer’s absolute right to surrender or terminate the
Policy at any time and for any reason, Employer shall pay an amount equal to the
planned premiums and any other premium payments that might become necessary to
keep the policy in force.

       

      (b)           Employer
shall annually furnish to Director a statement of the amount reportable by
Director for federal and state income tax purposes, if any, as a result of the
insurance protection provided.

       

      (c)           Director
shall have no right to make any premium payment to the Policy at any
time.

       

      8.           
 Termination of Agreement

       

      Upon the occurrence of any one (1) of
the following, the Director’s participation in this Plan shall terminate and all
death proceeds shall thereafter be paid solely to the Employer:

       

      (a)           Director
terminates service on Employer’s Board for any reason;

       

      (b)           Total
cessation of Employer’s business;

       

      (c)           Bankruptcy,
receivership or dissolution of Employer;

       

      (d)           Receipt
by Employer of written notification of a request to terminate this Agreement
from Director;

       

      (e)           Surrender,
lapse, or other termination of the Policy by Employer; or

       

      (f)           Distribution
of the death proceeds in accordance with Section 6 of this
Agreement.

       

      PAGE 2 -
ENDORSEMENT SPLIT-DOLLAR AGREEMENT

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      9.     
       Named Fiduciary

       

      Employer is hereby designated as the
named fiduciary under this Agreement. As named fiduciary, Employer shall be
responsible for and have the authority to manage the operation and
administration of this Agreement, and it shall be responsible for establishing
and carrying out a funding policy and method consistent with the objectives of
this Agreement. The named fiduciary may delegate to others certain aspects of
the management and operation responsibilities of the Agreement, including the
employment of advisors and the delegation of any ministerial duties to qualified
individuals.

       

      10.          Funding
Policy

       

      Subject to Employer’s absolute right to
surrender or terminate the Policy at any time and for any reason, the funding
policy for this Agreement shall be to maintain the Policy in force by paying,
when due, all premiums required.

       

      11.          Claims
Procedure

       

      (a)           Any
person claiming a benefit, requesting an interpretation or ruling under this
Agreement, or requesting information under this Agreement shall present the
request in writing to Employer, which shall respond in writing within a
reasonable period of time, but not later than ninety (90) days after receipt of
the request.

       

      (b)           Denial of Claim. If the claim
or request is denied, the written notice of denial shall state;

       

      (i)           The
reason for denial, with specific reference to the provisions in the Agreement on
which the denial is based;

       

      (ii)          A
description of any additional material or information required and an
explanation of why it is necessary; and

       

      (iii)         An
explanation of the Agreement’s claims review procedure.

       

      (c)           Review of Claim. Any person
whose claim or request is denied may request a review by notice given to
Employer within sixty (60) days following receipt of notification of the adverse
determination. The claim or request shall be reviewed by Employer which may, but
shall not be required to, grant the claimant a hearing. On review, the claimant
may have representation, examine pertinent documents, and submit issues and
comments in writing.

       

      (d)           Final Decision. The decision
on review shall normally be made within sixty (60) days. If an extension of time
is required for a hearing or other special circumstances, the claimant shall be
notified within such sixty (60) day period of an extension which shall not be
for more than an additional sixty (60) days. The Employer’s decision shall be
delivered in writing to Director and shall state the reason and the relevant
provisions in the Agreement for the decision. All decisions on review shall be
final and bind all parties concerned.

       

      PAGE 3 -
ENDORSEMENT SPLIT-DOLLAR AGREEMENT

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      12.          Amendment
and Revocation

       

      Subject to Employer’s absolute right to
surrender or terminate the Policy at any time and for any reason, it is agreed
by and between the parties hereto that, during Director’s lifetime, this
Agreement may be amended or revoked at any time, in whole or in part, by the
mutual written consent of the Director and Employer.

       

      13.          Insurance
Company Not a Party to This Agreement

       

      Insurer shall be fully discharged from
its obligations under the Policy by payment of the Policy death benefit to the
Beneficiary named in the Policy, subject to the terms and conditions of the
Policy. In no event shall Insurer be considered a party to this Agreement, or
any modification or amendment hereof.

       

      14.          Validity

       

      If any provision of this Agreement is
held illegal, invalid or unenforceable, the remaining provisions shall
nonetheless be enforceable according to their terms. Further, in the event that
any provision is held to be overbroad as written, such provision shall be deemed
amended to narrow its application to the extent necessary to make the provision
enforceable according to law and enforced as amended.

       

      15.          Notices

       

      All notices shall be in writing, and
shall be sufficiently given if delivered to the Employer at its principal place
of business, or to the Director at his last known address as shown in Employer’s
records, in person, by Federal Express or similar receipted delivery, or, if
mailed, postage prepaid, by certified mail, return receipt requested. The date
of such mailing shall be deemed the date of notice, demand or
consent.

       

      16.          Successors

       

      The provisions of this Agreement shall
bind and inure to the benefit of Employer and its successors and assigns, and
Director and his heirs, successors, personal representatives and
assigns.

       

      PAGE 4 -
ENDORSEMENT SPLIT-DOLLAR AGREEMENT

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      17.          Governing
Law

       

      The provisions of this Agreement shall
be construed and interpreted according to the laws of the State of Georgia,
except as preempted by federal law.

       

      IN WITNESS WHEREOF, the parties hereto
acknowledge that each has carefully read this Agreement and executed the
original thereof on the date set forth below, and that upon execution, each has
received a conforming copy.

      
        	 
      	 
      	 
      
	 
      	 
      	
                CHARTERBANK

              
	 	 	 
	 
      	
                By:

              	
                /s/
      Curtis Kollar

              
	 
      	 
      	 
      
	 
      	 
      	
                CFO

              
	 
      	 
      	
                Title

              
	 
      	 
      	 
      
	 
      	
                Date:  
      

              	
                6-13-06

              
	 	 	 
	 
      	 
      	
                DAVID
      L. STROBEL

              
	 
      	 
      	 
      
	 
      	 
      	
                /s/
      David L. Strobel

              
	 	 	 
	 
      	
                Date:

              	
                6-27-06

              

      

       

      PAGE 5 -
ENDORSEMENT SPLIT-DOLLAR AGREEMENT$7,000,000 Secured Convertible Note issued by GTC Biotherapeutics, Inc. to LFB

 Exhibit 4.1 

THIS NOTE AND THE SHARES OF CAPITAL STOCK ISSUED UPON ANY CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED BY ANY PERSON, INCLUDING A PLEDGEE, UNLESS (1) EITHER (A) A REGISTRATION WITH RESPECT THERETO SHALL BE EFFECTIVE UNDER THE
SECURITIES ACT, OR (B) THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT IS AVAILABLE, AND (2) THERE SHALL HAVE BEEN COMPLIANCE WITH ALL
APPLICABLE STATE SECURITIES OR “BLUE SKY” LAWS. 
 SECURED CONVERTIBLE NOTE 

 

			
	 US$7,000,000
	  	June 15, 2010

 Subject
to the terms and conditions of this Note, for good and valuable consideration received, GTC BIOTHERAPEUTICS, INC., a Massachusetts corporation (the “Company”), promises to pay to LFB BIOTECHNOLOGIES S.A.S., a société
par actions simplifiée established under the laws of France (the “Holder”), the principal amount of seven million dollars (US$7,000,000), plus interest which shall accrue at the rate of four percent (4%) per annum on the unpaid
principal from the date of this Note until the Maturity Date (as defined in Section 1.1) or until the full amount of principal and accrued interest under this Note is earlier paid, converted or canceled under the terms hereof, provided,
however that the Holder may, on or about January 1, 2011 and not more often than annually thereafter through the Maturity Date, elect to adjust (upwards or downwards) the interest rate applicable hereto, based on the Holder’s
then-current cost of capital, as determined by the Holder in the exercise of its commercially reasonable discretion. The Holder shall give the Company prior written notice of any such adjustment, which notice shall specify the new interest rate,
Holder’s methodology for computation of same, and the effective date for such new interest rate which shall be not less than 30 days after the Company’s receipt of such notice. The following is a statement of the rights of the Holder and
the terms and conditions to which this Note is subject, and to which the Holder hereof, by the acceptance of this Note, agrees: 

1. Payment 

1.1. Principal. The principal and all accrued interest under this Note will be paid to the Holder on June 15, 2013 (the
“Maturity Date”) to the extent it has not been earlier paid in full or fully converted or cancelled pursuant to the terms hereof. 

1.2. Payment. All payments of principal and interest under this Note will be made by wire transfer of immediately available funds
in accordance with the wire transfer instructions of Holder provided to the Company. 
 1.3. Prepayment. This Note may not
be prepaid without the written consent of the Holder. 

 1.4. Notwithstanding anything contained herein to the contrary, the Holder may, in its sole
discretion, cancel all or any portion of the principal and interest outstanding under this Note in lieu of cash payment for any shares of the Company’s Common Stock, $0.01 par value per share (“Common Stock”) or securities
convertible, exercisable or exchangeable into shares of Common Stock (“Convertible Securities”) issued and sold by the Company to the Holder in any future equity financing transaction. The number of shares of Common Stock or
Convertible Securities to be issued and sold upon such cancellation of this Note shall be equal to the quotient obtained by dividing (i) the portion of the principal amount of this Note, and if designated by the Holder, any accrued interest
thereon, to be canceled by (ii) the price per share of the Common Stock or Convertible Security to be issued and sold to the Holder by the Company. 

2. Conversion. 

2.1. Optional Conversion. The outstanding principal balance of this Note may at the sole option of the Holder be converted, in
whole or in part, into fully paid and non-assessable shares of Common Stock, at a conversion price equal to $0.42 per share (the “Conversion Price”), subject to adjustment as set forth herein. 

2.2. Mechanics of Conversion. The Holder shall notify the Company of its election to convert all or part of this Note in
accordance with Section 2.1. The Company shall, as soon as practicable but in no event later than three days following its receipt of such notice, issue and deliver to Holder a certificate or certificates for the number of shares of Common
Stock to which such holder shall be entitled, together with cash in lieu of any fractional share in accordance with Section 2.3. This Note shall be deemed to have been converted and a certificate or certificates for shares of Common Stock shall
be deemed to have been issued, and the Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes as of the date said notice is received by the Company. If this Note
shall have been converted in part, the Company shall, at the time of delivery of said certificate or certificates, deliver to the Holder a new Note evidencing the remaining outstanding principal balance of this Note, which new Note shall in all
other respects be identical with this Note. Upon conversion of this Note in full, this Note shall no longer be deemed to be outstanding and all rights with respect to this Note shall immediately cease and terminate on such conversion date, except
only the right of the Holder to receive the shares of Common Stock or other securities or property to which it is entitled as a result of the conversion. 

2.3. Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. In lieu of any
fractional shares to which the holder would otherwise be entitled, the Company shall pay cash equal to such fraction multiplied by the Conversion Price. 

2.4. Subdivision or Combination of Common Stock. If the Company at any time subdivides (by any stock split, stock dividend,
recapitalization or otherwise) its outstanding shares of Common Stock into a greater number of shares, the Conversion Price in effect immediately prior to such subdivision will be proportionately reduced, and if the Company at any time combines (by
reverse stock split, recapitalization or otherwise) its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination will be proportionately increased. 

 2.5. Merger, Consolidation or Sale of Assets. If there shall be a merger or
consolidation of the Company with or into another corporation (other than a merger or reorganization involving only a change in the state of incorporation of the Company), or the sale of all or substantially all of the Company’s capital stock
or assets to any other person, then as a part of such transaction, provision shall be made so that the Holder hereof shall thereafter be entitled to receive the number of shares of stock or other securities or property of the Company, or of the
successor corporation resulting from the merger, consolidation or sale, to which the Holder would have been entitled if the Holder had converted this Note immediately prior thereto. 

2.6. Notice of Adjustment to Conversion Price. Upon any adjustment or other change relating to the Conversion Price or the
securities issuable upon the conversion of this Note, then, and in each such case, the Company shall give written notice thereof, which notice shall state the Conversion Price resulting from such adjustment and the increase or decrease in the number
or other denominations of securities issuable at such price upon the conversion of this Note setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. 

2.7. Reservation of Shares. The Company covenants that it will at all times until this Note is paid or converted in full under the
terms hereof reserve and keep available out of its authorized and unissued Common Stock, solely for the purpose of issue upon conversion of this Note, such number of shares of Common Stock as shall then be issuable upon the conversion of this Note.

 2.8. Notice to Allow Conversion. If (A) the Company shall declare a dividend (or any other distribution in
whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock of rights or
warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any
consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, of any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property or
(E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall deliver to the Holder, at least twenty (20) calendar days prior to the
applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the
date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer
or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange. The Holder is entitled to convert this Note during the 20-day period commencing on the date of such notice through the effective date of the event
triggering such notice. 
 3. Security Documents. The obligations of the Company under this Note are secured pursuant to
the Amended and Restated Security Agreement, dated as of June 18, 2009 and 

 
effective as of December 22, 2008 with respect to certain matters, between the Company and the Holder (as the same has been, is on the date hereof, and may hereafter be amended, the
“Security Agreement”), that certain Trademark and License Security Agreement by and between the Debtor and the Secured Party dated December 22, 2008 (as the same has been and may hereafter be amended, the “Trademark
Security Agreement”), that certain Patent and License Security Agreement by and between the Debtor and the Secured Party dated December 22, 2008 (as the same has been and may hereafter be amended, the “Patent Security
Agreement”) and that certain Second Mortgage, Security Agreement and Fixture Filing granted by Debtor to Secured Lender as of December 22, 2009, (as the same has been, is on the date hereof, and may hereafter be amended, the
“Mortgage”). 
 4. Events of Default. This Note and all amounts due hereunder shall become immediately
due and payable in cash without notice or demand upon the occurrence at any time of any of the following events of default (individually, an “Event of Default” and collectively, “Events of Default”): 

(a) default in the payment when due of any principal or interest under this Note; 

(b) the liquidation, termination of existence, dissolution or the appointment of a receiver or custodian for the Company or any part of
its property if such appointment is not terminated or dismissed within sixty (60) days; 
 (c) the institution against the
Company or any endorser or guarantor of this Note of any proceedings under the United States Bankruptcy Code or any other federal or state bankruptcy, reorganization, receivership, insolvency or other similar law affecting the rights of creditors
generally, which proceeding is not dismissed within sixty (60) days of filing; 
 (d) the institution by the Company of any
proceedings under the United States Bankruptcy Code or any other federal or state bankruptcy, reorganization, receivership, insolvency or other similar law affecting the rights of creditors generally or the making by the Company or any endorser or
guarantor of this Note of a composition or an assignment or trust mortgage for the benefit of creditors; 
 (e)(i) any material
default in the performance or observance of any of the covenants, representations, warranties, agreements or conditions by the Company contained in this Note, (ii) an Event of Default, as defined in the Security Agreement, pursuant to
Section 7(a) of the Security Agreement, (iii) a Default, as defined in the Trademark Security Agreement, pursuant to Section 1(iv) of the Trademark Security Agreement, (iv) a Default, as defined in the Patent Security Agreement,
pursuant to Section 1(iv) of the Patent Security Agreement or (v) an Event of Default, as defined in the Mortgage, pursuant to Section 4.1 of the Mortgage. 

5. Rights of Action; Remedies. All rights of action with respect to this Note are vested in the Holder, and the Holder may enforce
against the Company its right to convert this Note for Common Stock in the manner provided in this Note. The Company stipulates that the remedies at law of the Holder in the event of any default or threatened default by the Company in the
performance of or compliance with any of the terms of this Note are not and will not be adequate, and that such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against
a violation of any of the terms hereof or otherwise. 

 6. Successors and Assigns. This Note, and the obligations and rights of the Company
hereunder, shall be binding upon and inure to the benefit of the Company, the holder of this Note, and their respective successors and permitted assigns. 

7. Waiver and Amendment. Any provision of this Note may be amended, waived or modified only upon the written consent of the
Company and the Holder. 
 8. Notices. Any notice, request or other communication required or permitted hereunder will be
in writing and shall be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on
file by the sending party); or (iii) upon receipt, when sent via a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. Any party hereto may by notice so given change its address
for future notice hereunder. Notice will conclusively be deemed to have been given when personally delivered or when deposited in the mail or telegraphed in the manner set forth above and will be deemed to have been received when delivered.

 9. Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Note
shall be governed by the internal laws of the Commonwealth of Massachusetts, United States of America, without giving effect to any choice of law or conflict of law provision or rule (whether of the Commonwealth of Massachusetts or any other
jurisdictions) that would cause the application of the laws of any jurisdictions other than the Commonwealth of Massachusetts. 

10. Headings; References. All headings used herein are used for convenience only and will not be used to construe or interpret
this Note. Except where otherwise indicated, all references herein to Sections refer to Sections hereof. 
 [Signature page to
follow] 

 IN WITNESS WHEREOF, the parties have caused this Note to be issued on the date first written
above. 
  

									
	HOLDER	 		 	COMPANY
			
	LFB BIOTECHNOLOGIES S.A.S.	 		 	GTC BIOTHERAPEUTICS, INC.
					
	By:	 	  
	 		 	By:	 	  

	Title:	 	  
	 		 	Title:	 	  

Secured Convertible Note Signature Page

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