Document:

mntx-ex104_304.htm

 

Exhibit 10.4

 

EXECUTION VERSION

 

THIRD AMENDMENT
TO LOAN AND SECURITY AGREEMENT

THIS THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) entered into as of this 8th day of November, 2016 is by and among MANITEX INTERNATIONAL, INC., a Michigan corporation, (“Manitex International”), MANITEX INC., a Texas corporation (“Manitex”), MANITEX SABRE, INC., a Michigan corporation (“Sabre”), BADGER EQUIPMENT COMPANY, a Minnesota corporation (“Badger”), CRANE AND MACHINERY, INC., an Illinois corporation (“Crane and Machinery”), CRANE AND MACHINERY LEASING, INC., an Illinois corporation (“Crane and Machinery Leasing”), and MANITEX, LLC, a Delaware limited liability company (“Manitex LLC”; together with Manitex International, Manitex, Sabre, Badger, Crane and Machinery, and Crane and Machinery Leasing, collectively, the “Borrowers”), THE PRIVATEBANK AND TRUST COMPANY (in its individual capacity, “PrivateBank”), as administrative agent and sole lead arranger (in such capacity, “Administrative Agent”), and the lenders party thereto (the “Lenders”).

W I T N E S S E T H:

WHEREAS, Administrative Agent, Lenders, and Borrowers are party to that certain Loan and Security Agreement dated as of July 20, 2016, as amended by that certain First Amendment to Loan and Security Agreement dated as of August 4, 2016 and that certain Consent and Second Amendment to Loan and Security Agreement dated as of September 30, 2016 (as amended hereby and as the same may be from time to time further amended, supplemented or otherwise modified, the “Agreement”); 

WHEREAS, Administrative Agent, Lenders and Borrowers desire to enter into this Amendment to, among other items, (i) reduce the revolving credit commitment, (ii) amend certain financial and reporting covenants, and (iii) otherwise amend the Agreement in accordance with the terms herein.

NOW, THEREFORE, for and in consideration of the premises and mutual agreements herein contained and for the purposes of setting forth the terms and conditions of this Amendment, the parties, intending to be bound, hereby agree as follows:

1.Incorporation of the Agreement.  All capitalized terms which are not defined hereunder shall have the same meanings as set forth in the Agreement, and the Agreement, to the extent not inconsistent with this Amendment, is incorporated herein by this reference as though the same were set forth in its entirety.  To the extent any terms and provisions of the Agreement are inconsistent with the amendments set forth in Section 3 below, such terms and provisions shall be deemed superseded hereby.  Except as specifically set forth herein, the Agreement shall remain in full force and effect and its provisions shall be binding on the parties hereto.

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2.Amendment of the Agreement.  

(a)The definition of “Adjusted EBITDA” is hereby added to Section 1.1 of the Agreement to read in its entirety as follows:

Adjusted EBITDA means EBITDA plus actual management fees received by Borrowers in cash during such period from non-Borrower Affiliates.  Notwithstanding the foregoing, Adjusted EBITDA for the quarter ending (i) March 31, 2016 shall be $2,828,000, (ii) June 30, 2016 shall be $3,128,000 and (iii) September 30, 2016 shall be $1,632,000, all as determined in accordance with Schedule I hereto.

(b)The definition of “Third Amendment Effective Date” is hereby added to Section 1.1 of the Agreement to read in its entirety as follows:

Third Amendment Effective Date shall mean November 8, 2016.

(c)The reference to the date “December 31, 2016” in the definition of the term “Applicable Margin” is hereby replaced with the date “September 30, 2017”.

(d)The definitions of “EBITDA”, “Maximum Aggregate Loan Amount”, “Note”, “Total Revolving Loan Commitment” and “US Revolving Loan Availability” appearing in Section 1.1 of the Agreement are hereby amended and restated to read in their entirety as follows:

EBITDA shall mean, with respect to any period, Borrowers’  (i) net income after Taxes for such period (excluding any after-tax gains or losses on the sale of assets (other than the sale of Inventory in the ordinary course of business) and excluding other after-tax extraordinary gains or losses), plus (ii) tax refunds paid to Borrowers with respect to any Fiscal Year before and including Fiscal Year 2015, plus (iii) Interest Expense (whether paid or accrued), plus (iv) income tax expense (whether paid or accrued), plus (v) depreciation and plus (vi) amortization (including amortization of goodwill, debt issuance costs and amortization and any non-cash impairment of intangibles) for such period, plus (vii) upon approval by Administrative Agent, any fees, expenses or other costs incurred in connection with the sale of any Subsidiary, plus or minus (viii) any other non-cash charges or gains which have been subtracted or added in calculating net income after Taxes for such period, less (ix) management fees that are charged but unpaid by non-Borrower Subsidiaries not to exceed $500,000 per Fiscal Year.

Maximum Aggregate Loan Amount shall mean (i) Thirty Million Dollars ($30,000,000) as of the Third Amendment Effective Date; (ii) Twenty-Eight Million Five Hundred Thousand Dollars 

	
 
	
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($28,500,000) as of November 30, 2016 and (iii) Twenty-Five Million Dollars ($25,000,000) as of December 31, 2016 and at all times thereafter.

Note shall mean that certain Second Substitute Revolving Loan Note dated as of the Third Amendment Effective Date in the initial maximum principal amount of Thirty Million Dollars ($30,000,000.00) made by the Borrowers in favor of PrivateBank, as may be amended, modified or restated from time to time.

Total Revolving Loan Commitment shall mean an amount equal to (i) Thirty Million Dollars ($30,000,000) as of the Third Amendment Effective Date; (ii) Twenty-Eight Million Five Hundred Thousand Dollars ($28,500,000) as of November 30, 2016 and (iii) Twenty-Five Million Dollars ($25,000,000) as of December 31, 2016 and at all times thereafter.

US Revolving Loan Availability shall mean with respect to Borrowers an amount up to the lesser of the sum of the following sublimits: (i) up to eighty-five percent (85%) of the face amount (less maximum discounts, credits and allowances which may be taken by or granted to Account Debtors in connection therewith in the ordinary course of Borrowers’ business) of US Borrowers’ Eligible US Accounts (it being understood and agreed that such advance rate shall be reduced by one (1) percentage point for each whole or partial percentage point by which Dilution (as determined by Administrative Agent in good faith based on the results of the most recent twelve (12) month period for which Administrative Agent has conducted a field audit of Borrowers) exceeds five percent (5%)), plus (ii) up to fifty percent (50%) of the lower of cost or market value of US Borrowers’ Eligible US Inventory and Eligible Chassis Inventory up to a maximum aggregate amount of Twenty Million and No/100 Dollars ($20,000,000), which amount shall reduce to Seventeen Million Five Hundred Thousand Dollars ($17,500,000) on December 31, 2016, plus (iii) up to eighty percent (80%) of the lower of cost or market value of US Borrowers’ Used Equipment Purchased for Resale or Rent up to a maximum aggregate amount of Two Million Dollars ($2,000,000), plus (iv) lesser of (x) eighty-five percent (85%) of Eligible Bill and Hold Receivables of the US Borrowers and (y) $10,000,000, minus (z) such reserves as Administrative Agent elects, in its Permitted Discretion, determined in good faith, to establish from time to time, including, without limitation, reserves with respect to Bank Products Obligations and Hedging Obligations.

	
 
	
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(e)Section 9.1 of the Agreement is hereby amended and restated in its entirety to read as follows:

9.1Borrowing Base Reports.  Each Borrower shall deliver to Administrative Agent and each Lender an executed loan report and certificate in the form of Exhibit B hereto (a “Borrowing Base Certificate”) on a weekly basis (or more frequently to the extent requested by Administrative Agent) which shall be accompanied by copies of Borrowers’ sales journal, cash receipts journal and credit memo journal for the relevant period.  Such report shall reflect the activity of such Borrower with respect to Accounts for the immediately preceding week, and shall be in a form and with such specificity as is satisfactory to Administrative Agent and shall contain such additional information concerning Accounts and Inventory as may be requested by Administrative Agent including, without limitation, but only if specifically requested by Administrative Agent, copies of all invoices prepared in connection with such Accounts.  Notwithstanding the foregoing, the Administrative Agent may request a Borrowing Base Certificate more frequently in its Permitted Discretion.

(a)The Fixed Charge Coverage set forth in Section 14.1 will not be tested for the quarters ending September 30, 2016 or December 31, 2016.  Such covenant shall resume testing on March 31, 2017.

(b)A new Section 14.2 is hereby added to the Agreement to read as follows:

14.2  Adjusted EBITDA.  Borrowers shall maintain Adjusted EBITDA of not less than the amounts set forth below measured at the end of each period set forth below:  

	
Period
	
Amount

	
Nine months ended September 30, 2016
	
$1,500,000

	
Twelve months ended December 31, 2016, and as of each quarter thereafter determined on a trailing twelve-month basis
	
$3,500,000

 

(c)Annex I to the Agreement is hereby replaced with Annex I hereto.

3.Delivery of Documents.  The following documents and other items shall be delivered concurrently with this Amendment:

(i)this Amendment; 

(ii)that certain Second Substitute Revolving Note dated as of the date hereof in favor of Lender;

	
 
	
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(iii)such other documents and certificates as Administrative Agent shall reasonably request; and

(iv)payment of an amendment fee of $62,500, which amount shall be fully earned, payable and non-refundable as of the date hereof.

4.Representations, Covenants and Warranties; No Default.  Borrowers hereby represent and warrant to Administrative Agent as of the date hereof as follows:

(a)The execution and delivery of this Amendment and the performance by Borrowers of their obligations hereunder are within Borrowers’ powers and authority, have been duly authorized by all necessary corporate action and do not and will not contravene or conflict with the organizational documents of Borrowers;

(b)The Agreement (as amended by this Amendment) and the other Loan Documents constitute legal, valid and binding obligations enforceable in accordance with their terms by Administrative Agent against Borrowers, and Borrowers expressly reaffirm and confirm each of their obligations under the Agreement (as amended by this Amendment) and each of the other Loan Documents.  Borrowers further expressly acknowledge and agree that Administrative Agent has a valid, duly perfected, first priority and fully enforceable security interest in and lien against each item of Collateral except as otherwise set forth in the Agreement.  Borrowers agree that they shall not dispute the validity or enforceability of the Agreement (as it was stated before and after this Amendment) or any of the other Loan Documents or any of its respective obligations thereunder, or the validity, priority, enforceability or extent of Administrative Agent’s security interest in or lien against any item of Collateral, in any judicial, administrative or other proceeding;

(c)No consent, order, qualification, validation, license, approval or authorization of, or filing, recording, registration or declaration with, or other action in respect of, any governmental body, authority, bureau or agency or other Person is required in connection with the execution, delivery or performance of, or the legality, validity, binding effect or enforceability of, this Amendment; 

(d)The execution, delivery and performance of this Amendment by Borrowers does not and will not violate any law, governmental regulation, judgment, order or decree applicable to Borrowers and does not and will not violate the provisions of, or constitute a default or any event of default under, or result in the creation of any security interest or lien upon any property of Borrowers pursuant to, any indenture, mortgage, instrument, contract, agreement or other undertaking to which any Borrower is a party or is subject or by which any Borrower or any of its real or personal property may be bound; and

(e)The representations, covenants and warranties set forth in Section 11 of the Agreement shall be deemed remade as of the date hereof by Borrowers, except that any and all references to the Agreement in such representations and warranties shall be deemed to include this Amendment.  No Event of Default has occurred and is continuing and no event has occurred and is continuing which, with the lapse of time, the giving of notice, or both, would constitute such an Event of Default under the Agreement.

	
 
	
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5.Fees and Expenses.  The Borrowers agree to pay on demand all costs and expenses of or incurred by Administrative Agent, including, but not limited to, legal fees and expenses, in connection with the evaluation, negotiation, preparation, execution and delivery of this Amendment.

6.Effectuation.  The amendments to the Agreement contemplated by this Amendment shall be deemed effective immediately upon the full execution of this Amendment and without any further action required by the parties hereto.  There are no conditions precedent or subsequent to the effectiveness of this Amendment.

7.Counterparts.  This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.  A facsimile or other electronic signature to this Amendment shall be deemed an original signature hereunder.

[SIGNATURE PAGES FOLLOW]

 

 

 

	
 
	
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(Signature Page to Third Amendment to Loan and Security Agreement)

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Third Amendment to Loan and Security Agreement as of the date first above written.

 

	
BORROWERS:
	
MANITEX INTERNATIONAL, INC., a Michigan corporation
MANITEX, INC., a Texas corporation
MANITEX SABRE, INC., a Michigan corporation
BADGER EQUIPMENT COMPANY, a Minnesota corporation
CRANE AND MACHINERY, INC., an Illinois corporation
CRANE AND MACHINERY LEASING, INC., an Illinois corporation
MANITEX, LLC, a Delaware limited liability company

	
 
	
By:
	
/s/ Andrew Rooke
	
 

	
 
	
Name:
	
Andrew Rooke

	
 
	
Title:
	
President and COO

 

 

 

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(Signature Page to Third Amendment to Loan and Security Agreement)

 

 

	
ADMINISTRATIVE AGENT:
	
THE PRIVATEBANK AND TRUST COMPANY, as Administrative Agent and a Lender

	
 
	
By:
	
/s/ Todd Bernier
	
 

	
 
	
 
	
Todd Bernier, Managing Director

	
 
	
 
	
 

 

 

 

	
 
	
 
	
 

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ANNEX I – COMMITMENTS

 

		
	
Lender
	
US Revolving Loan Commitment

	
The PrivateBank and Trust Company
	
(i) Thirty Million Dollars ($30,000,000) as of the Third Amendment Effective Date; (ii) Twenty-Eight Million Five Hundred Thousand Dollars ($28,500,000) as of November 30, 2016 and (iii) Twenty-Five Million Dollars ($25,000,000) as of December 31, 2016 and at all times thereafter.

	
Total
	
(i) Thirty Million Dollars ($30,000,000) as of the Third Amendment Effective Date; (ii) Twenty-Eight Million Five Hundred Thousand Dollars ($28,500,000) as of November 30, 2016 and (iii) Twenty-Five Million Dollars ($25,000,000) as of December 31, 2016 and at all times thereafter.

 

 

	
 
	
 
	
 

CHICAGO/#2911792.4AEX-10.1

 Exhibit 10.1 

SEPARATION AND CONSULTING AGREEMENT 

This Separation and Consulting Agreement (the “Agreement”) is entered into by and between ContraFect Corporation (the
“Company”) and Dr. Michael G. Wittekind, a resident of the state of Washington (“Wittekind”), on October 3, 2016 (“Execution Date”) and shall become effective on the Effective Date (as defined below). All
exhibits hereto are hereby incorporated herein by this reference. 
 1. Resignation from Employment. Effective as of October 1,
2016 (the “Resignation Date”), Wittekind has resigned from his employment with the Company, and thereby terminated and ceased his service in any position or office with the Company as of the Resignation Date, other than as expressly set
forth herein. For the avoidance of doubt, Wittekind’s last day of employment with the Company shall be the Resignation Date. Wittekind acknowledges and agrees that Wittekind’s resignation from employment with the Company is a voluntary
resignation by Wittekind other than for Good Reason or a termination for Cause (as such terms are defined in that certain employment agreement between the Company and Wittekind dated March 6, 2012, as amended November 12, 2015 (the
“Employment Agreement”)) and that Wittekind is not entitled per the terms of such agreement, as amended, or any other agreement or arrangement with the Company, to any severance payments or benefits in connection with such resignation of
employment. 
 2. Pro-Rata Bonus. Subject to Wittekind’s execution and non-revocation of this Agreement, the Company shall
provide Wittekind with three-fourths (3/4) of his total target annual incentive bonus for 2016 (“Bonus”) through the Resignation Date, to be paid in 2017, on the same date that the officers of the Company receive their 2016 bonus. The
total target annual incentive bonus shall equal 35% of Wittekind’s annual base salary for 2016, subject to performance against mutually agreed-upon goals (70% corporate and 30% individual). For purposes of determining the incentive bonus, the
Company agrees to the full 30% individual amount. However, the corporate percentage is based on corporate goals and will be determined by the Company in 2017. 

3. Payment of Earned but Unpaid Salary and Paid Time Off. With respect to the period following the Resignation Date, Wittekind shall no
longer be entitled to any compensation or benefits from the Company, including under the Employment Agreement, except as expressly set forth herein. The Company shall pay Wittekind any earned but unpaid base salary, subject to all applicable
withholding and deductions, in a lump sum on the first payroll date that immediately follows the Resignation Date. 
 4. Consulting
Services. The Company shall engage and Wittekind agrees, for the period from the Resignation Date to December 31, 2018 (the “Consulting Period”), to provide the services to the Company specified in Appendix 1 (the
“Services”). Wittekind represents and warrants to the Company that the Services performed by him hereunder will be of professional quality, consistent with generally accepted industry standards for work of a similar nature. Wittekind shall
comply with all applicable laws in performing the Services. The Services shall be of an advisory nature and the Company shall not have any obligation to follow Wittekind’s advice or recommendations. Wittekind agrees to provide such Services as
reasonably requested by the Company during the Consulting Period at such times and at such locations as may be reasonably requested by the Company’s Chief Executive Officer and agreed to by Wittekind, whose consent will not be unreasonably
withheld. 

  
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 5. Consulting Fees. Wittekind shall be paid by the Company for the performance of the
Services as set forth in Appendix 1. The Company will only reimburse reasonable expenses incurred in performing the Services that are pre-approved by the Company in writing. Wittekind shall provide the Company with all documentation in support of
such expenses as the Company may reasonably require. Payments due to Wittekind for the Services will be made within thirty (30) days after receipt by the Company of the invoice. 

6. Vesting of Shares and Exercise of Options. Wittekind beneficially owns a certain number of shares of the Company’s common stock
and has been granted certain options to purchase shares of the Company’s common stock pursuant to certain plans of the Company as more fully described in Appendix 2, attached herein (collectively, the “Equity Awards”). The Equity
Awards were acquired during Wittekind’s tenure as an employee of the Company. Notwithstanding any provision of this Agreement or any other agreement between the parties, including but not limited to the Amended and Restated 2008 Equity
Incentive Plan of the Company, as amended, and the 2014 Omnibus Incentive Plan, as amended (collectively, the “Equity Plans”), the Equity Awards will continue to vest in accordance with and subject to their respective vesting schedules set
forth in the respective plan, as a result of Wittekind’s continued service with the Company, in his capacity as a consultant. Vesting will cease upon the expiration of the Consulting Period and such Consulting Period shall not be shortened,
regardless of whether Wittekind actually provides any Services during the Consulting Period. The period for exercising each option shall be that which is specified in the respective option grant or agreement. 

7. No Employment Relationship. During the Consulting Period, Wittekind will not be an employee of the Company, but will have the
relationship of an independent contractor to the Company. As an independent contractor, Wittekind shall have no authority to represent, act on behalf of or bind the Company. Wittekind shall have reasonable discretion as to the method of the
performance of the Services. As an independent contractor after the Resignation Date and subject to the provisions of Section 11, Wittekind may engage in other activities outside of the Services performed hereunder, unless they would materially
impair or interfere with Wittekind’s ability to perform the Services as provided in this Agreement. The parties agree that all income recognized by Wittekind in respect of compensation paid for the Services shall be self-employment income
reportable on the appropriate Internal Revenue Service Form 1099. Wittekind shall have the sole responsibility and obligation to report such self-employment income on Wittekind’s tax returns and to pay all such taxes as are required by law, and
the Company shall have no responsibility or obligation to withhold income or payroll taxes under the United States Federal Insurance Contributions Act or under state unemployment, disability or other laws or to pay employer payroll taxes thereon
under such laws or to withhold special or general funds, assessments, or taxes generally collected by employers for the use and benefit of employees. 

8. ContraFect Benefits. Following the Resignation Date and except as otherwise required under applicable law, including but not limited
to any benefits available under the Consolidated Omnibus Budget Reconciliation Act, Wittekind shall not be entitled to participate in or receive any 

  
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benefits or have any rights as an employee of the Company under any employee pension or welfare benefit plan, or any fringe benefit plan, including without limitation, any qualified or
nonqualified deferred compensation plan, any bonus or compensation plan, any stock, restricted stock or stock option plan, any severance plan, any long-term or short-term disability plan, any medical, dental or insurance plan, any personnel program
or policy, or any flexible spending arrangement sponsored or maintained by the Company (each, a “Plan”), except as specifically outlined in this Agreement. In addition, even if Wittekind’s status as an independent contractor is
reclassified by a Federal or state governmental entity, a court or a third party arbitrator to constitute an employee or a common law employee of the Company, Wittekind shall not be eligible to participate in or receive any benefits or have any
rights as an employee of the Company under any Plan, unless and until the Company consents to such eligibility in writing or as required by applicable law. Wittekind will not be covered by any Company liability insurance policies during the
Consulting Period. 
 9. Confidentiality. Wittekind acknowledges that, during the Consulting Period he may have, and during his
employment with the Company he has had, access to Confidential Information and materials not generally known outside the Company. For the purposes of this Agreement, “Confidential Information” shall mean all confidential and proprietary
information and materials (whether conceived or developed by Wittekind or others) of the Company, and Company marketing and other business plans, customers and customer information, data strategies, research, reports, copyrights and patents related
to the Company. During the Consulting Period and thereafter, Wittekind shall not, without the prior consent of the Company, communicate or divulge any Confidential Information or materials to anyone other than the Company and its partners or
affiliates and those designated by the Company, unless required by law. Wittekind acknowledges that Confidential Information is and shall remain the property of the Company. The confidentiality obligations hereunder shall not apply to Company
information that would be Confidential Information but which: (i) is, or later becomes, public knowledge other than by breach of this Agreement; (ii) is in the possession of Wittekind with the full right to disclose prior to his receipt of
such Confidential Information from the Company, as evidenced by written records; or (iii) is independently received by Wittekind from a third party with no restrictions on disclosure. Furthermore, Wittekind agrees not to use, without the
Company’s approval, Confidential Information for any purposes other than to perform duties for the Company under this Agreement. Wittekind also hereby reaffirms his obligations under the Company’s standard confidentiality agreement,
executed by Wittekind effective as of March 12, 2012 (the “Confidentiality Agreement”). For the avoidance of doubt, Wittekind’s education, general approach to management, and problem solving (i.e., trade skills) are not included
in the definition of “Confidential Information”. 
 10. Ownership of Copyrights, Patents, and Intellectual Property.
Wittekind agrees that any work prepared for the Company during his employment therewith and during the Consulting Period which is eligible for copyright and patent protection under the laws of the United States or any other country, and any
proprietary know how developed by Wittekind while rendering services for the Company in any capacity, will vest in the Company. Wittekind hereby grants, transfers, and assigns all rights, titles, interests, copyrights and patents in such work, and
all renewals and extensions thereof, to the Company, and agrees to provide all assistance reasonably requested by the Company in the establishment, preservation and enforcement of the Company’s copyrights and patents in such work. Such
assistance will be provided at the Company’s expense, 

  
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but without any additional compensation to Wittekind if during the Consulting Period, and for reasonable compensation (including, without limitation, a per diem fee no less than the ratable base
salary amount as was in effect prior to the Resignation Date) and subject to Wittekind’s reasonable availability if after the Consulting Period. If the Company cannot, after reasonable effort, secure Wittekind’s signature on any documents
needed to apply for or to prosecute any patent, copyright, or other right or protection relating to an invention, whether because of his physical or mental incapacity or for any other reason, Wittekind hereby irrevocably designates and appoints the
Company and its duly authorized officers and agents as his agent and attorney-in-fact for the limited purpose to act for and on his behalf and in his name and stead for the purpose of executing and filing any such application or applications and
taking all other lawfully permitted actions to further the prosecution and issuance of patents, copyrights, or similar protections thereon with the same legal force and effect as if executed by him. Notwithstanding anything to the contrary, the
foregoing provisions shall not apply to any work product for which no equipment, supplies, facility or Confidential Information of the Company were used and which was developed entirely on Wittekind’s own time, unless (1) such work product
relates directly to the business of the Company or to the Company’s actual or demonstrably anticipated research or development; or (2) the work product results from or directly relates to any work performed by Wittekind for the Company.

 11. Non-Competition. Wittekind agrees that, during the Consulting Period, he will not, directly or indirectly, enter into,
organize, control, engage in, be employed by, serve as a consultant to, be an officer or director of, or have any direct or indirect investment in any business, person, partnership, association, firm, corporation, or other entity engaged in any
business activity (including, but not limited to, research, development, manufacturing, selling, leasing, licensing or providing services) which is directly competitive with the business of the Company, without the prior written consent of the
Company. For the sake of clarity, a business competitive with the Company’s business is one that uses lysins for the treatment of human infections or the use of antibodies for the treatment of influenza. 

12. Non-Solicitation. Wittekind agrees that, for a period of fifteen (15) months after the Resignation Date, Wittekind shall not
divert, attempt to divert, take advantage of or attempt to take advantage of any actual or potential business or opportunities of the Company, which Wittekind became aware of as a result of his employment or consulting with the Company. Wittekind
further agrees that, during the Consulting Period, he will not directly or indirectly solicit or take any action to hire or assist in hiring, for his own benefit or the benefit of a related party, or any third party, any employee of the Company. For
purposes of this Section, an employee of the Company includes those persons who have been an employee of the Company during the preceding ninety (90) days prior to any purported solicitation. The foregoing restrictions shall not preclude
Wittekind or a third party with whom Wittekind associates from making general solicitations through a public medium, online website, or general or mass mailing. 

13. Non-Disparagement. Wittekind and the Company agree that, during the Consulting Period and for a period of five years thereafter,
Wittekind will not directly or indirectly disparage the Company and the Company will cause its officers and directors not to directly or indirectly disparage Wittekind. Nothing in this Section 13 prevents the aforementioned parties from making
truthful statements in any court proceeding or in response to any request for information from a governmental agency or pursuant to a proper subpoena. 

  
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 14. Non-Waiver of Breach. Either party may waive any breach of this Agreement by the other
party, but no such waiver shall be deemed to have been given unless such waiver be in writing, signed by the waiving party and specifically designate the breach waived, nor shall any such waiver constitute a continuing waiver of similar or other
breaches. 
 15. Non-Assignment. Neither party may assign its obligations hereunder without the prior written consent of the other
party. This Agreement shall be binding upon and inure to the benefit of the respective parties, and their legal representatives, successors, assigns and heirs. 

16. Release. 
 (a)
General Release. In consideration of the payments and benefits provided to Wittekind under this Agreement, Wittekind on behalf of himself and each of his heirs, executors, administrators, representatives, agents, successors and assigns
(collectively, the “Releasors”) hereby irrevocably and unconditionally waives, releases and forever discharges the Company and each of its subsidiaries and affiliates and each of its or their respective current and former officers,
employees, directors, partners, members, shareholders, representatives, insurers, subsidiaries, affiliates, attorneys, predecessors, successors and agents (collectively, the “Released Parties”) from any and all claims, demands, actions,
causes of action, rights, judgments, obligations, damages, demands, accountings or liabilities of whatever kind or character, whether known or unknown, suspected or unsuspected (collectively, “Claims”), that the Releasors have or may have
against the Released Parties that arise out of or are connected to: (i) Wittekind’s service relationship with the Company up to and including the Execution Date, (ii) the Employment Agreement up to and including the Execution Date, or
(iii) any event, condition, circumstance, conduct, occurrence, omission, transaction or obligation that occurred, existed or arose on or prior to the Execution Date, including, with respect to both clauses (i) and (ii) of this
Section 16(a), without limitation: (1) any Claims under all federal, state and local statutes that employees or service providers could bring employment or service-related claims under, including, without limitation, any antidiscrimination
statute, wage and hour statute, leave statute, equal pay statute, whistleblower statute and any other federal, state, local or foreign law, rule or regulation, in each case that may legally be waived and released, and (2) any tort or contract
Claims, including, without limitation, wrongful discharge, breach of contract, defamation, slander, libel, emotional distress, tortious conduct, invasion of privacy, wrongful or retaliatory discharge, violation of public policy, implied covenant of
good faith and fair dealing, negligence, fraud, personal injury or sickness or any other harm. Notwithstanding anything to the contrary, Wittekind does not release, discharge or waive: (A) any rights that Wittekind may have under this
Agreement, (B) Wittekind’s right to file a complaint with any governmental agency, provided that Wittekind understands and agrees that he is expressly waiving any right to obtain monetary damages as provided in Section 16(b)(ii)(x)
below, (C) Claims that cannot be waived by law, (D) Claims for vested benefits under the Company’s employee benefit plans, including equity compensation plans and grants thereunder to the extent vested or to be vested, (E) Claims
to indemnification, contribution, exculpation, directors and officers insurance, or other insurance (e.g., executives and officers), and (F) claims, charges, complaints, causes of action or demand that post-date the Execution Date or that are
based on factual allegations that do not arise from or relate to clauses (i), (ii) or (iii) of this Section 16(a). 

  
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 b. Proceedings. 

i. General Agreement Relating to Proceedings. Wittekind hereby represents that as of the Execution Date he has not filed, and except as
provided in Section 16(b)(ii) hereof, Wittekind agrees not to initiate or cause to be initiated on his behalf, any complaint, charge, claim or proceeding against the Released Parties before any local, state or federal agency, court or other
body relating to matters released pursuant to Section 16. 
 ii. Administrative Proceedings. Nothing in this Section 16
shall preclude Wittekind from (x) filing a charge with or participating in any administrative investigation or proceeding by the Equal Employment Opportunity Commission or another Fair Employment Practices agency, provided that Wittekind is
waiving his right to recover money in connection with any such charge or investigation or (y) or from communicating directly with, cooperating with, or providing information to, any federal, state or local government regulator or making other
disclosures that are protected under the whistleblower, anti-discrimination, or anti-retaliation provisions of federal, state or local law or regulation. 

c. Acknowledgment of Waiver of Claims under ADEA. Wittekind understands and acknowledges that he is waiving and releasing any rights he
may have under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release is knowing and voluntary. Wittekind understands and agrees that this waiver and release does not apply to any rights or claims that
may arise under the ADEA after the Execution Date. Wittekind understands and acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Wittekind was already entitled. Wittekind further
understands and acknowledges that he has been advised by this writing that: (i) he should consult with an attorney prior to executing this Agreement; (ii) he has been provided with at least twenty-one (21) days within which to
consider the terms of this Agreement; (iii) he has seven (7) days following the Execution Date to revoke this Agreement pursuant to written notice to the General Counsel of the Company (which notice must be actually received by such
individual during such 7-day period) at: 
 Address, email address, and facsimile of Legal Counsel: 

ContraFect Corporation 
 28 Wells
Avenue, 3rd Floor 
 Yonkers, New York 10701 

Attention: Natalie Bogdanos, Esq., General Counsel & Corporate Secretary 

Email: nbogdanos@contrafect.com 

Facsimile: 914-207-2399 
 (iv)
this Agreement shall become effective on the eighth (8th) day after the Execution Date (referred to for all purposes herein as the “Effective Date”), unless Wittekind has properly
revoked this Agreement; and (v) nothing in this Agreement prevents or precludes Wittekind from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent,
penalties, or costs for doing so, unless specifically 

  
 6 

 
authorized by federal law. If Wittekind revokes this Agreement in accordance with the foregoing revocation provisions, this Agreement shall be null and void in its entirety, and Wittekind will
not be entitled to receive any of the additional compensation hereunder and may continue to be subject to the terms of the Employment Agreement and any other agreements currently in effect by and between the parties in accordance with their terms.
In the event Wittekind signs this Agreement and returns it to the Company in less than the 21-day period identified above, Wittekind hereby acknowledges that he has freely and voluntarily chosen to waive the time period allotted for considering this
Agreement, but he shall retain his rights related to the 7-day period for revocation. 
 17. Severability. Provisions of this
Agreement are severable. If any provision is held to be invalid or unenforceable it shall not affect the validity or enforceability of any other provision. 

18. Entire Agreement. This Agreement (and any agreements or arrangements referenced herein) represents the sole and entire agreement
between the parties and, except as expressly stated herein, supersedes the Employment Agreement and all prior agreements, negotiations and discussions between Wittekind and the Company, with respect to the subject matters contained herein.
Notwithstanding the foregoing, the Confidentiality Agreement shall not be superseded by this Agreement and shall remain in effect in accordance with its terms. 

19. Governing Law. This Agreement shall be construed as a whole in accordance with its fair meaning and in accordance with the laws of
the State of New York. The language in the Agreement shall not be construed for or against any particular party. Venue for any court action or arbitration arising under this Agreement shall lie in Westchester County, New York. 

20. Headings. The headings used herein are for reference only and shall not affect the construction of this Agreement. 

21. Disputes. The parties agree that any and all disputes, controversies or claims arising out of or relating to this Agreement, or
breach thereof, shall be submitted to final and binding arbitration pursuant to the employment arbitration rules of the American Arbitration Association. The prevailing party or parties shall be entitled to recover from the other party reasonable
attorney’s fees and other costs incurred. 
 22. Interpretation. In the event Section 11 or Section 12 shall be
determined by any court of competent jurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, it will be
interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all
as determined by such court in such action. 
 23. Survival. Sections 9, 10, 13 and 16-27 shall survive beyond the end of the
Consulting Period. 
 24. Agreement Does Not Constitute Admission. This Agreement shall not be construed as an admission by any party
hereto, or their directors, officers, employees, representatives, affiliates, and assigns, past and present, of any wrongful act, or retaliation, or breach of contract. 

  
 7 

 25. Miscellaneous. Payments and benefits under this Agreement are not subject to
mitigation or offset. This Agreement will be binding upon and inure to the benefit of the parties’ successors and heirs. This Agreement can be executed in counterparts, which together will constitute the binding agreement of the parties, and
electronic copies shall have the effect of originals. 
 26. Voluntary Execution of Agreement. Wittekind understands and agrees that
he is executing this Agreement voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of Wittekind’s claims against the Company and any of the other
Released Parties. Wittekind acknowledges that: (i) he has read this Agreement; (ii) he has not relied upon any representations or statements made by the Company that are not specifically set forth in this Agreement; (iii) he has been
represented in the preparation, negotiation, and execution of this Agreement by legal counsel of his own choice or has elected not to retain legal counsel; (iv) he understands the terms and consequences of this Agreement and of the releases it
contains; and (v) he is fully aware of the legal and binding effect of this Agreement. 
 [The remainder of this page is intentionally
left blank.] 

  
 8 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as of the
Execution Date. 
  

					
		 		 	CONTRAFECT CORPORATION
			
	/s/ Michael G. Wittekind	 		 	/s/ Steven C. Gilman
	Michael G. Wittekind	 		 	Steven C. Gilman
		 		 	Chief Executive Officer

  
 9 

 APPENDIX 1 
  

	1.	Description of Services. As discussed in Section 4 of the Agreement, “Services” means the services described below: 

 

	 	•	 	Provide assistance and cooperation to Company as the Company reasonably requests regarding any matter, dispute or controversy with which Company is or may become involved and of which Wittekind has or may have reason to
have relevant knowledge, information or expertise. 

  

	 	•	 	Provide assistance and scientific advice regarding Company programs 

  

	2.	Fees. 

 In consideration for the performance of Services in accordance with this
Agreement, the Company shall pay to Wittekind the amount of $200.00 per whole hour of Services performed. Total fees will not exceed a total of $20,000 during any twelve (12) month period without mutual written consent of the Company and
Wittekind. 
  

	3.	Payments. 

 All payments under this Agreement shall be sent to the address below unless
otherwise directed by Wittekind and agreed to by the Company in writing: 
 Michael G. Wittekind 

9515 Olympus Beach Road NE 

Bainbridge Island, WA 98110 

Wittekind shall send invoices for Services performed hereunder to: 

Steve C. Gilman 
 Chief Executive
Officer 
 Company Corporation 

28 Wells Avenue, 3rd Floor 

Yonkers, New York 10701 
 With a
copy to accounting@contrafect.com 

 APPENDIX 2 

EQUITY AWARDS 
  

																					
	 Award Type
	 	Grant Date	 	 	Exercise Price
Per Share	 	 	Shares Subject
To Award	 	 	Vested
Shares	 	 	Note	 
	 Option
	 	 	4/1/2012	  	 	$	3.50	  	 	 	20,571	  	 	 	20,571	  	 			
	 Option
	 	 	8/11/2012	  	 	$	3.50	  	 	 	8,571	  	 	 	8,571	  	 			
	 Option
	 	 	2/27/2013	  	 	$	3.50	  	 	 	12,857	  	 	 	12,857	  	 			
	 Option
	 	 	4/29/2014	  	 	$	4.27	  	 	 	21,428	  	 	 	16,071	  	 	 	1	  
	 Option
	 	 	10/28/2014	  	 	$	2.91	  	 	 	40,000	  	 	 	20,000	  	 	 	2	  
	 Option
	 	 	2/6/2015	  	 	$	4.61	  	 	 	115,000	  	 	 	43,125	  	 	 	3	  
	 Option
	 	 	2/8/2016	  	 	$	3.29	  	 	 	80,000	  	 	 	10,000	  	 	 	4	  

 Notes 
  

	1-	subject to the terms of the applicable option agreement, 5,371 options shall vest on April 29, 2017. 

	2-	subject to the terms of the applicable option agreement, 10,000 options shall vest on each of October 28, 2016 and 2017. 

	3-	subject to the terms of the applicable option agreement, 7,187 options shall vest on the last day of each calendar quarter, ending on December 31, 2018. 

	4-	subject to the terms of the applicable option agreement, 5,000 options shall vest on the last day of each calendar quarter, ending on December 31, 2019.

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