Document:

ttoo-ex1063_4030.htm

Exhibit 10.63

 

January 3, 2020

 

Anthony Pare

**************
**************

 

Dear Tony:

On behalf of T2 Biosystems, Inc., (the "Company") I am delighted to offer you a promotion to the role of Chief Commercial Officer for the Company beginning on January 13, 2020.

At T2 Biosystems, our mission is to save lives and improve healthcare by empowering clinicians to get patients on the right therapy faster than ever. We invented game-changing detection technology, T2 Magnetic Resonance (T2MR@) and we come to work every day to solve critical needs in healthcare diagnostics.

We are positively impacting the lives of patients and saving hospitals millions of dollars each year. Our products are being used in more than 150 hospitals in the United States and worldwide. We have a strong pipeline of products in development for sepsis management, including bacterial resistance panels, as well as testing for the superbug Candida auris and a Lyme disease panel. There is a lot of growth ahead!

Tony, we are thrilled to extend this promotion offer to you. To make things official, you will find all of the pertinent information related to our promotion offer in the attached pages. Please read the offer carefully and, if it is acceptable, sign and return one copy to my attention (PDF copy is fine).

If you have any questions, please do not hesitate to contact me at (781) 457-1283, email at kmorgan@t2biosystems.com or just stop by my office. We are looking forward to you taking on this new role at T2!  

Sincerely,

 

 

 

Kelley Morgan

Vice President, Human Resources

 

 

OFFER OF PROMOTION

Date of Promotion: Should you accept the terms of this offer, your promotion to Chief Commercial Officer with the Company will commence on January___, 2020, or at such later date as mutually agreed to between you and the Company.

Position: You have been offered the position of Chief Commercial Officer. In this capacity, you will report to the Company’s Chief Executive Officer. Your duties and responsibilities will include all those customarily attendant to such a position, and any other such duties or responsibilities that the Chief Executive Officer or the Company may, from time to time, assign to you. You agree that you shall not enter into any employment endeavors which may conflict with your ability to devote the necessary time and energies to the Company's business interest while engaged by the Company. You further agree to comply with all applicable laws and with all Company rules and policies established by the Company from time to time.

Compensation and Tax Matters: Your salary shall be $13,541.67 (the equivalent of $325,000.00 when annualized), payable semi-monthly and subject to pro-ration for any partial initial or terminal weeks during which you are employed, in accordance with normal payroll practices and schedule of the Company.

You will be eligible for an annual bonus of 60% of your annualized base salary based on corporate and personal objectives to be determined by the Chief Executive Officer and the Company’s Board of Directors.  To the extent the Company fails to achieve a minimum of 60% of its annual global revenue plan, you will not be eligible for any bonus payout for that calendar year, and to the extent the Company achieves between 60% and 99% of its annual global revenue plan, your bonus for that calendar year will be prorated accordingly. 

All compensation amounts stated are before any deductions for FICA taxes, state and federal withholding taxes and other payroll deductions required to be made by the Company under applicable law.

Stock Options: Subject to the approval of the Compensation Committee and your execution of a Stock Option Agreement, you will be offered additional options to purchase up to 150,000 shares of T2 Biosystems common stock under the Company's 2014 Incentive Award Plan (the “Plan"). The exercise price of the options will be equal to the fair market value of the Company's common stock on the grant date, which shall be the date on which your grant is approved by the Board. The options will have a 4-year vesting schedule and will vest monthly in approximately equal amounts over 48 months. The terms and conditions of the options shall be more fully described in the Plan and applicable Stock Option Agreement.

Fringe Benefits: You will continue to have the opportunity to participate in the Company's fringe benefits program. Currently, these fringe benefits are as follows:

Active: 2020

	
 
	
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The Company currently provides contributions toward a medical and dental plan for yourself and immediate family members.
	
 

	
 
	
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Three (3) weeks paid vacation, Company designated holidays, personal holidays and sick days (see Benefits Summary for more information).
	
 

	
 
	
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The Company provides 100% contribution towards Term Life Insurance, Accidental Death and Dismemberment Insurance, and Short and Long-Term Disability Insurance;
	
 

	
 
	
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The opportunity to enroll in the Company's 401(k) Investment, Employee Stock Purchase and Section 125 Plans based on plan eligibility requirements; and
	
 

	
 
	
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Pay or reimburse you in accordance with the Company's reimbursement policies from time to time in connection with the performance of your duties for the Company subject to your submission of satisfactory documentation with respect thereto.
	
 

The Company reserves the right to amend, delete or change any of its employment policies and/or benefits at any time in its sole discretion.

Employment At Will: Accepting this promotion offer does not alter your at will employment status with the Company. This means that your employment is not guaranteed for any definite period of time, and you or the Company may terminate your employment relationship with or without notice at any time and for any or no reason or cause. The Company is not bound to follow any policy, procedure, or process in connection with employee discipline, employment termination or otherwise.

If you agree with the terms of this offer, please acknowledge your understanding and acceptance of this offer by signing where indicated below and return to me by 5:00 p.m. ET on January __, 2020. We look forward to working with you.

Sincerely,

 

T2 Biosystems, Inc.

 

By:       

              Vice President, Human Resources

 

 

I have read agree with and accept the items contained in this letter.

 

By:

 Anthony Pare            Date

Active: 2020ttoo-ex1064_4028.htm

Exhibit 10.64

 

T2 BIOSYSTEMS, INC.

 

 

 

March 11, 2019

 

Anthony Pare

**************

**************

 

 

Dear Tony,

 

This letter sets forth the agreement between you and T2 Biosystems, Inc. (the “Company”) regarding certain terms and conditions of your employment.  You are entitled to receive the following:

 

1.Severance Compensation.  If your employment is terminated either by you with Good Reason within 12 months following a Change of Control, or by the Company without Cause within 3 months preceding or within 12 months following a Change of Control, subject to your executing and delivering to the Company, and not revoking, a release of claims in a form acceptable to the Company (the “Release”) within the 30-day period following your termination of employment:

 

(a)the Company will pay you severance in an amount equal to 6 months of your then current annual base salary, payable in equal installments over a period of 6 months (the “Severance Period”) in accordance with the Company’s payroll practices, commencing on your termination of employment; 

 

(b)if you have been continuously employed by the Company for at least one year as of the date your employment terminates, all of the outstanding unvested equity awards of the Company held by you shall become fully vested and, if applicable, exercisable as of the date of your termination, provided that with respect to any such awards intended to constitute “qualified performance based compensation” under Section 162(m) of the Code, whether a Change of Control has occurred shall be determined without regard to clause (iv) of the definition of Change of Control below; and

 

(c)If you timely elect continued group medical insurance coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company will reimburse you for a portion of the applicable premiums, based on the then-current cost-sharing rates for active employees, for you and your eligible dependents during the period commencing on the date of your termination of employment and ending on the earliest to occur of (a) the final day of the Severance Period, (b) the date you and/or your eligible dependents are no longer eligible for COBRA, and (c) the date you become eligible to receive medical insurance coverage from a subsequent employer (and you agree to notify the Company of such eligibility).  Notwithstanding the foregoing, if the Company determines that it cannot provide such 

 

 

 

reimbursement of premiums to you without potentially violating applicable law, the Company shall in lieu thereof provide to you a taxable monthly payment in an amount equal to a portion of the applicable premiums, based on then-current cost-sharing rates for active employees, which payment will be made regardless of whether you elect COBRA continuation coverage and will commence in the month following the month in which your termination of employment occurs and end on the earliest to occur of (x) the final day of the Severance Period, (y) the date you and/or your eligible dependents are no longer eligible for COBRA, and (z) the date you become eligible to receive medical insurance coverage from a subsequent employer (and you agree to notify the Company of such eligibility).

 

Notwithstanding anything herein to the contrary, in the event that any compensation or benefit that constitutes “nonqualified deferred compensation” within the meaning of Section 409A (as defined below) becomes payable upon the occurrence of a Change of Control, such compensation or benefit shall not be paid unless such Change of Control constitutes a “change in control event” within the meaning of Section 409A.

 

2.Definitions.  For purposes of this letter, the terms “Change of Control,” “Cause,” and “Good Reason” shall have the following meanings.

 

(a)“Change of Control” means that any of the following events has occurred:

 

(i)Any person (as such term is used in Section 13(d) of the Securities Exchange Act of 1934 (the “Exchange Act”)), other than the Company, any employee benefit plan of the Company, or any entity organized, appointed, or established by the Company for or pursuant to the terms of any such plan, together with all “affiliates” and “associates” (as such terms are defined in Rule 12b-2 under the Exchange Act) becomes the beneficial owner or owners (as defined in Rule 13d-3 and 13d-5 promulgated under the Exchange Act), directly or indirectly (the “Control Group”), of more than 50% of the outstanding equity securities of the Company, or otherwise becomes entitled, directly or indirectly, to vote more than 50% of the voting power entitled to be cast at elections for directors (“Voting Power”) of the Company, provided that a Change of Control will not have occurred if such Control Group acquired securities or Voting Power solely by purchasing securities from the Company, including, without limitation, acquisition of securities by one or more third party investors;

 

(ii)A consolidation or merger (in one transaction or a series of related transactions) of the Company pursuant to which the holders of the Company’s equity securities immediately prior to such transaction or series of related transactions cease to be the holders, directly or indirectly, immediately after such transaction or series of related transactions of more than 50% of the Voting Power of the entity surviving such transaction or series of related transactions;

 

(iii)The sale, lease, exchange, or other transfer (in one transaction or series of related transactions) of all or substantially all of the assets of the Company; or

 

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(iv)The liquidation or dissolution of the Company or the Company ceasing to do business.

 

(b)“Cause” means:

 

(i)Your conviction of a felony, either in connection with the performance of your obligations to the Company or which otherwise materially and adversely affects your ability to perform such obligations;

 

(ii)Your willful disloyalty to the Company or deliberate material dishonesty to the Company;

 

(iii)The commission by you of an act of fraud or embezzlement against the Company;

 

(iv)Your willful, substantial failure to perform any of your duties hereunder or your deliberate failure to follow reasonable, lawful directions of the Company’s Board of Directors or your direct supervisor, which failure, if capable of being cured, is not cured within 30 days after delivery to you by the Company of written notice of such failure; or

 

(v)A material breach by you of any material provision of this letter which breach is not cured within 30 days after delivery to you by the Company of written notice of such breach.

 

(c)“Good Reason” means one or more of the following:

 

(i)A material change in the principal location at which you provide services to the Company, without your prior written consent;

 

(ii)A material and continuing diminution by the Company in the duties, authority or responsibilities of your position which causes such position to become of less responsibility or authority than immediately prior to such material and continuing diminution, provided that such change is not in connection with a termination of your employment hereunder by the Company;

 

(iii)A material reduction in your base salary or other benefits except if such a reduction is in connection with a general reduction in compensation or other benefits of all similarly situated employees of the Company;

 

(iv)Failure by the Company to obtain the assumption of this Agreement by any successor to the Company.

 

Notwithstanding the foregoing, Good Reason shall only exist if you have given written notice to the Company within 90 days of the initial existence of the Good Reason condition(s), and the Company has failed to cure such event(s) within 30 days of its receipt of said notice.

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3.Section 409A.

 

(a)Separation from Service.  Notwithstanding anything in this letter to the contrary, any compensation or benefit payable under this letter that is designated as payable upon your termination of employment shall be payable only upon your “separation from service” with the Company (a “Separation from Service”) within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance promulgated thereunder (collectively, “Section 409A”), and except as provided below, any such compensation or benefits shall not be paid, or, in the case of installments, shall not commence payment, until the 30th day following your Separation from Service.  Any installment payments that would have been made to you during the 30 day period immediately following your Separation from Service but for the preceding sentence shall be paid to you on the 30th day following your Separation from Service and the remaining payments shall be made as provided in this letter.

 

(b)Specified Employee.  Notwithstanding anything in this letter to the contrary, if you are deemed by the Company at the time of your Separation from Service to be a “specified employee” for purposes of Section 409A, to the extent delayed commencement of any portion of the benefits to which you are entitled under this letter is required in order to avoid a prohibited distribution under Section 409A, such portion of your benefits shall not be provided to you prior to the earlier of (i) the expiration of the six-month period measured from the date of your Separation from Service with the Company or (ii) the date of your death.  Upon the first business day following the expiration of the applicable Section 409A period, all payments deferred pursuant to the preceding sentence shall be paid in a lump-sum to you (or your estate or beneficiaries), and any remaining payments due to you under this letter shall be paid as otherwise provided herein.

 

(c)Installments.  Your right to receive any installment payments under this letter shall be treated as a right to receive a series of separate payments and, accordingly, each such installment payment shall at all times be considered a separate and distinct payment as permitted under Section 409A.  Except as otherwise permitted under Section 409A, no payment hereunder shall be accelerated or deferred unless such acceleration or deferral would not result in additional tax or interest pursuant to Section 409A.

 

4.General

 

(a)No provision of this letter shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by you and by an authorized officer of the Company (other than you).  No waiver by either party of any breach of, or of compliance with, any condition or provision of this letter by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.  The validity, interpretation, construction and performance of this letter shall be governed by the laws of the Commonwealth of Massachusetts without regard to conflicts of law.  The invalidity or unenforceability of any provision or provisions of this letter shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect.  

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

 

(b)This letter contains the entire and exclusive agreement between the parties with respect to the subject matter hereof and is intended to supersede and replace all previous agreements, negotiations, and representations between the parties, whether written or oral, including any provision of the employment offer letter agreement between you and the Company, dated as of March 11, 2019, to the extent such letter addresses the subject matter hereof.

 

 

 

Sincerely,

 

T2 BIOSYSTEMS, INC.

 

 

 

By:__________________________

Name:

Title:

 

Acknowledged and Agreed

 

 

__________________________

Anthony Pare

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