Document:

Exhibit 10.11

 

BIOPLEX SYSTEMS, INC.

343 Otis Street

West Newton, MA 02465

 

	
 
    	
July 20, 2006
    

 

Dr. Robert Langer 

98 Montvale Road 

Newton, MA 02459

 

Dear Dr. Langer:

 

We are pleased that you have agreed to become a consultant to Bioplex Systems, Inc. This Agreement is made as of the date written above (the “Effective Date”) between Bioplex Systems, Inc., a Delaware corporation (the “Company”) and Dr. Langer, at Massachusetts Institute of Technology (the “Institution”). This letter is to confirm our understanding with respect to (i) your rendering services as a consultant to the Company and (ii) your agreement to protect and preserve information and property which is confidential and proprietary to the Company or other third parties with whom the Company does business (the terms and conditions agreed to in this letter shall hereinafter be referred to as the “Agreement”). In consideration of the mutual promises and covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, we have agreed as follows:

 

1.                                      Services.  You agree to render services to the Company as an independent contractor to, and not as an employee of, the Company. You shall provide services to the Company as may be reasonably requested by the Company.

 

You acknowledge and agree that you will be an independent contractor for all purposes including, but not limited to, payroll and tax purposes, and that you shall not represent yourself to be an employee or officer of the Company unless so designated by a written agreement signed by the Company.

 

2.                                      Acknowledgments.

 

(a)                                 The Company acknowledges that you are an employee of the Institution and are subject to the Institution’s policies, including policies concerning consulting, conflicts of interest and intellectual property, and that your obligations under the Institution’s policies take priority over any obligations you may have to the Company by reason of this Agreement. The Company further acknowledges and agrees that, except as set forth in Section 11, nothing in this Agreement shall affect your obligations to perform research on behalf of the Institution.

 

 

(b)                                 You acknowledge and agree that during the course of performing services for the Company, the Company will furnish, disclose or make available to you confidential and proprietary information related to the Company’s business. You also acknowledge that such confidential information to be provided by the Company has been developed and will be developed by the Company through the expenditure by the Company of substantial time, effort and money and that all such confidential information could be used by you to compete with the Company.

 

(c)                                  You further recognize and acknowledge the competitive and proprietary nature of the Company’s business operations. You acknowledge and agree that a business will be deemed competitive with the Company if it engages in a line of business in which it performs or plans to perform any of the services, or researches, develops, manufactures or sells any products provided or offered by the Company or planned or under development by the Company in the Company’s Field of Interest. The term “Company’s Field of Interest” means products and strategies relating to the research, manufacture, and sale of in vitro diagnostics (detection) products and services and device sensors for in vivo use that utilize nanoparticle-based nuclear magnetic resonance (“NMR”) methods.

 

3.                                      Confidentiality; Protected Information.

 

(a)                                 You may disclose to the Company any information that you would normally freely disclose to other members of the scientific community at large, whether by publication, by presentation at seminars, or in informal scientific discussions. However, you shall not disclose to the Company information that is proprietary to the Institution and that is not in the public domain other than through formal technology transfer procedures.

 

(b)                                 You shall at all times, both during and after any termination of this Agreement by either the Company or you, maintain in confidence and shall not, without the prior written consent of the Company, use, except in the course of performance of your duties for the Company as a consultant hereunder, disclose, or give to others any fact or information which was disclosed to or developed by you during the course of performing services for the Company hereunder, and which is not in the public domain, including but not limited to information and facts concerning business plans, customers, future customers, suppliers, licensors, licensees, partners, investors, affiliates or other, training methods and materials, financial information, sales prospects, client lists, Inventions (as defined in Section 4), or any other scientific, technical, trade or business secret or product development plan or confidential or proprietary information of the Company or of any third party provided to you in the course of your consultancy to the Company. You also agree not to file patent applications based on the Company’s technology or confidential information, nor seek to make improvements thereon, whether in your laboratories at the Institution or elsewhere, without the Company’s prior written approval. You agree not to make any copies of such confidential or proprietary information of the Company (except when appropriate for the furtherance of the business of the Company or duly and specifically authorized to do so) and promptly upon request, whether during or after the term of this Agreement, to return to the Company any and all documentary, machine-readable or other elements or evidence of such confidential or proprietary information, and any copies that may be in your possession or under your control. In the event you are questioned by anyone not

 

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employed by the Company, in regard to any such information or any other secret or confidential work of the Company, or concerning any fact or circumstance relating thereto, you will promptly notify the President of the Company.

 

(c)                                  Such confidential or proprietary information subject to Section 3(b) does not include information generated solely by you unless the information (i) is generated as a direct result of the performance of consulting services under this Agreement and (ii) is not generated in the course of your activities as an employee of the Institution.

 

4.                                      Ownership of Ideas, Copyrights and Patents.

 

(a)                                 You agree that all ideas, discoveries, creations, materials, compounds, manuscripts and properties, innovations, improvements, know-how, inventions, designs, developments, apparatus, techniques, algorithms, software, mask works, methods, and formulae made, developed or improved by you in the Company’s Field of Interest whether or not reduced to practice and whether patentable, copyrightable, protectable as mask works or not, which you may conceive, reduce to practice or develop during the Term (as defined in Section 6) and for a period of one (1) year thereafter, alone or in conjunction with another, or others, and whether at the request or upon the suggestion of the Company, or otherwise, which (i) you develop as a direct result of performing consulting services for the Company under this Agreement and (ii) is not generated in the course of your activities as an employee of the Institution and is not owned by the Institution (all of the foregoing being hereinafter referred to as the “Inventions”), shall be the sole and exclusive property of the Company, and that you shall not publish any of the Inventions without the prior written consent of the Company. You hereby assign to the Company all of your right, title and interest in and to all Inventions. You agree to maintain and furnish to the Company complete and current records of all such Inventions and disclose to the Company in writing any such Inventions. Upon termination of your consulting arrangement with the Company, you shall provide to the Company in writing a full, signed statement of all Inventions in which you participated prior to termination of the consulting arrangement. You further represent and agree that to the best of your knowledge and belief none of the Inventions will violate or infringe upon any right, patent, copyright, trademark or right of privacy, or constitute libel or slander against or violate any other rights of any person, firm or corporation, and that you will use your best efforts to prevent any such violation.

 

(b)                                 At any time during or after the Term, you agree that you will fully cooperate with the Company, its attorneys and agents, in the preparation and filing of all papers and other documents as may be required to perfect and protect the Company’s rights in and to any of such Inventions, including, but not limited to, joining in any proceeding to obtain and enforce letters patent, copyrights, mask work registrations, trademarks or other legal rights of the United States and of any and all other countries on such Inventions, provided that the Company will bear the expense of such proceedings, and that any patent, copyright, mask work registration, trademark, or other legal right so issued to you, personally, shall be assigned by you to the Company without charge by you. You hereby designate the Company as your agent for, and grant to the Company a power of attorney with full power of substitution, which power of attorney shall be deemed coupled with an interest, for the purpose of effecting the foregoing assignments from you to the Company.

 

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5.                                      Limitations on Competition.  You hereby agree, in consideration of the Company’s agreement to engage you as a consultant hereunder and your compensation for services rendered to the Company and in view of the confidential position to be held by you, and the confidential nature and proprietary value of the information which the Company may share with you, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, as follows:

 

Except as otherwise indicated in this Agreement, you shall not, without the prior written consent of the Company:

 

(i)                                     For yourself or on behalf of any other, directly or indirectly, either as principal, agent, stockholder, employee, consultant, representative or in any other capacity, own, manage, operate or control, or be concerned, connected or employed by, or otherwise associate in any manner with, engage in or have a financial interest in any business whose primary line of business is in the Company’s Field of Interest, or in any other business in which you have any direct operating or scientific responsibility, as a consultant, employee or otherwise, in the Company’s Field of Interest anywhere in the world (hereinafter, the “Restricted Territory”), except that nothing contained herein shall preclude you from purchasing stock in any such competitive business if such stock is publicly traded, and provided that your holdings do not exceed three (3%) percent of the issued and outstanding capital stock of such business.

 

(ii)                                  Either individually or on behalf of or through any third party, solicit, divert or appropriate or attempt to solicit, divert or appropriate, for the purpose of competing in the Company’s Field of Interest with the Company or any present or future parent, subsidiary or other affiliate of the Company which is engaged in the Company’s Field of Interest, any joint venture or collaborative research partners, customers or patrons of the Company, or any prospective customers or patrons with respect to which the Company has developed or made a presentation for the use or exploitation of products or processes in the Company’s Field of Interest (or similar offering of services), located within the Restricted Territory.

 

(iii)                               Either individually or on behalf of or through any third party, directly or indirectly, solicit, entice or persuade or attempt to solicit, entice or persuade any other employees or of consultants to the Company or any present or future parent, subsidiary or affiliate of the Company to leave the services of the Company or any such parent, subsidiary or affiliate for any reason.

 

You further recognize and acknowledge that (i) the types of employment which are prohibited by this paragraph are narrow and reasonable in relation to the skills which represent your principal salable asset both to the Company and to your other prospective employers, and (ii) the specific but broad geographical scope of the provisions of this paragraph is reasonable, legitimate and fair to you in light of the Company’s need to perform its research and to develop and market its services and develop and sell its products in a large geographic area in order to have a sufficient customer base to make the Company’s business profitable and in light of the

 

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limited restrictions on the type of employment prohibited herein compared to the types of employment for which you are qualified to earn your livelihood.

 

If any part of this section should be determined by a court of competent jurisdiction to be unreasonable in duration, geographic area, or scope, then this section is intended to and shall extend only for such period of time, in such area and with respect to such activity as is determined to be reasonable.

 

The limitations on competition contained in this Section 5 shall continue during the Term, as defined in Section 6 below, and for a period of twelve (12) months following the termination of the Term.

 

6.                                      Term of Consulting Arrangement.  Your services as a consultant to the Company hereunder shall commence on the Effective Date and shall continue, unless terminated as provided below, for a period of two years thereafter (the “Term”), which Term shall automatically be extended for an additional period or periods of one year each unless either you or the Company shall have given to the other written notice to the contrary at least ninety (90) days prior to the commencement of such additional period; provided, however, that after the initial two year Term, (a) the Company may terminate this Agreement by giving not less than ninety (90) days prior written notice to you at any time, and (b) the Company shall continue to pay your compensation and expenses in accordance with Section 7 until the date six months after the date of the notice of termination.

 

7.                                      Compensation.

 

(a)                                 For such time that you provide services to the Company, the Company shall pay you annual compensation in quarterly installments in advance of the applicable quarter to which compensation applies. Such compensation shall initially be $0.00 but shall increase upon the occurrence of the following events: (i) $10,000.00 per year commencing after the Company has completed the Milestone Closing, as that term is defined in the Series A Convertible Preferred Stock Purchase Agreement dated July 25, 2006 by and between the Company and its Investors noted therein, until the Company has raised $5,000,000.00 in post-Milestone Closing equity financing, license transaction payments, corporate research/partnership or licensing deals of such value, grants of such value, sales of such value or any combination of the foregoing; (ii) $20,000.00 per year commencing after the Company has raised $5,000,000.00 in post-Milestone Closing equity financing, license transaction payments, corporate research/partnership or licensing deals of such value, grants of such value, sales of such value or any combination of the foregoing; and (iii) $40,000.00 per year commencing after the Company has raised $20,000,000.00 in post-Milestone Closing equity financing, license transaction payments, corporate research/partnership or licensing deals of such value, grants of such value, sales of such value or any combination of the foregoing. Upon the conclusion of the 12 month period following your annual compensation reaching $40,000.00, and at the conclusion of every subsequent 12 month period, your annual compensation shall increase by 8 percent, provided the Agreement is not terminated and is in full force and effect at that time.

 

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(b)                                 The Company will reimburse you for reasonable out-of-pocket expenses incurred by you in performing services hereunder at the Company’s request upon submission of an invoice with reasonable supporting documentation.

 

8.                                      Continuing Obligations.

 

(a)                                 Your obligations under this Agreement other than the provisions of Section 1 shall not be affected: (i) by any termination of this Agreement, including termination upon the Company’s initiative; nor (ii) by any change in your relationship with the Company; nor (iii) by any interruption in your consulting arrangement with the Company.

 

(b)                                 Termination of this Agreement shall not affect the Company’s obligation to pay for expenses reasonably incurred by you for which you are entitled to reimbursement under Section 7 above.

 

9.                                      Disclosure to Future Employers.  You agree that, if reasonably relevant, you will provide, and that the Company may similarly provide in its discretion, a copy of the acknowledgments and covenants contained in Sections 2, 3, 4 and 5 of this Agreement to any business or enterprise which you may directly, or indirectly, own, manage, operate, finance, join, control or participate in the ownership, management, operation, financing, control or control of, or with which you may be connected as an officer, director, employee, partner, principal, agent, representative, consultant or otherwise.

 

10.                               Records. Upon termination of your relationship with the Company, you shall deliver to the Company any property of the Company which may be in your possession including products, materials, memoranda, notes, records, reports, laboratory notebooks, or other documents or photocopies of the same, including without limitation any of the foregoing recorded on any computer or any machine readable medium.

 

11.                               No Conflicting Agreements.  You hereby represent and warrant that you have no commitments or obligations inconsistent with this Agreement. During the Term of this Agreement, you will not enter into any agreement either written or oral in conflict with this Agreement and will arrange to provide your services under this Agreement in such a manner and at times that your services will not conflict with your responsibilities under any other agreement, arrangement or understanding or pursuant to any employment relationship you have at any time with any third party. If you are a party to any agreement which may be in conflict with this Agreement, please so indicate by identifying that agreement below your signature at the end of this Agreement and attaching a copy hereto.

 

12.                               No Employment Created.  This Agreement does not constitute, and shall not be construed as constituting, an undertaking by the Company to hire you as an employee of the Company. You acknowledge that you will be working as a consultant only, and not as an employee. You will not be entitled to receive any of the benefits provided by the Company to its employees and you will be solely responsible for the payment of all federal, state and local taxes and contributions imposed or required on income, unemployment insurance, social security and any other law or regulation.

 

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13.                               Waiver of Provisions.  Failure of any party to insist, in one or more instances, on performance by the other in strict accordance with the terms and conditions of this Agreement shall not be deemed a waiver or relinquishment of any right granted hereunder or of the future performance of any such term or condition or of any other term or condition of this Agreement, unless such waiver is contained in a writing signed by or on behalf of the waiving party.

 

14.                               Notices.  Any notice or other communication required or permitted hereunder shall be deemed sufficiently given if sent by facsimile transmission, recognized courier service or certified mail, postage and fees prepaid, addressed to the party to be notified as follows: if to the Company to its address set forth above, and if to you to your address set forth above, or in each case to such other address as either party may from time to time designate in writing to the other. Such notice or communication shall be deemed to have been given as of the date sent by facsimile or delivered to a recognized courier service, or three days following the date deposited with the United States Postal Service.

 

15.                               Governing Law.  This Agreement shall be governed by and construed and enforced in accordance with the laws of the Commonwealth of Massachusetts, without application of the conflicts of law provisions thereof.

 

16.                               Entire Agreement.  This Agreement embodies the entire agreement and understanding between the parties hereto and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant or agreement of any kind not set forth in this Agreement shall affect, or be used to interpret, change or restrict, the express terms and provisions of this Agreement.

 

17.                               Invalidity.  This Agreement is intended to be performed in accordance with, and only to the extent permitted by, all applicable laws, ordinances, rules and regulations. If any provision of this Agreement, or the application thereof to any person or circumstance, shall, for any reason and to any extent, be invalid or unenforceable, the remainder of this Agreement and the application of such provisions to other persons or circumstances shall not be affected thereby, but rather shall be construed, reformed and enforced to the greatest extent permitted by law.

 

18.                               Injunctive Relief.  You hereby expressly acknowledge that any breach or threatened breach of any of the terms and/or conditions set forth in Sections 2, 3, 4 or 5 of this Agreement may result in substantial, continuing and irreparable injury to the Company. Therefore, you hereby agree that, in addition to any other remedy that may be available to the Company, the Company shall be entitled to injunctive or other equitable relief by a court of appropriate jurisdiction in the event of any breach or threatened breach of the terms of Sections 2, 3, 4 or 5 of this Agreement.

 

19.                               Assignment.  The Company may assign its rights and obligations hereunder to any person or entity who succeeds to all or substantially all of the Company’s business or that aspect of the Company’s business in which you are principally involved. Your rights and obligations under this Agreement may not be assigned without the prior written consent of the Company.

 

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20.                               Modification and Amendment.  This Agreement shall not be modified or amended except by an instrument in writing signed by or on behalf of the parties hereto. The Company and you acknowledge that any amendment of this Agreement or any departure from the terms and conditions hereof with respect to your consulting services for the Company is subject to the Institution’s prior written approval.

 

21.                               Interpretation.  The parties hereto acknowledge and agree that (i) the rule of construction to the effect that any ambiguities are resolved against the drafting party, and (ii) the terms and provisions of this Agreement, shall be construed fairly as to all parties hereto and not in favor of or against a party, regardless of which party was generally responsible for the preparation of this Agreement.

 

22.                               Parties Benefitted.  Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the Company and any parent, subsidiary or other affiliate of the Company, and their respective successors and assigns, and shall be binding upon and inure to the benefit of you and your heirs, executors and administrators.

 

23.                               Publicity.  The Company will not use your name or the Institution’s name in any commercial advertisement or similar material that is used to promote or sell products, unless the Company obtains in advance both your consent and the written consent of the Institution to such use.

 

24.                               Headings.  Section and other headings contained in this Agreement are for reference purposes only and are in no way intended to define, interpret, describe or otherwise limit the scope, extent or intent of this Agreement or any of its provisions each of which shall be deemed an original, but all of which together shall constitute one and the same document.

 

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

 

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If the foregoing accurately sets forth our agreement, please so indicate by signing and  returning to us the enclosed copy of this letter.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
BIOPLEX SYSTEMS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ W. David Lee
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
W. David Lee
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
President
    

 

	
Accepted and Approved:
    	
 
    
	
 
    	
 
    
	
Consultant
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Robert Langer 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
Robert Langer 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Professor
    	
 
    

 

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Dr. Robert Langer

98 Montvale Road

Newton, MA 02459

 

March 20, 2013

 

Mr. John McDonough 

T2 Biosystems, Inc. 

101 Hartwell Avenue 

Lexington, MA 02421

 

Dear Mr. McDonough:

 

Reference is hereby made to that certain Letter Agreement dated July 20, 2006 between me and T2 Biosystems, Inc. (formerly known as Bioplex Systems, Inc.) (the “Agreement”). This letter hereby confirms our oral agreement that for the time that I provide services to the Company, notwithstanding the compensation set forth in Section 7(a) of the Agreement, my sole compensation under the Agreement is and shall be $40,000 per year, effective as of October 4, 2010 through the date of termination of the Agreement and payable in quarterly installments in advance of the applicable quarter to which the compensation applies. This letter also confirms that the oral agreement set forth in the preceding sentence was made in connection to and in consideration of options to purchase 100,000 shares of the Company’s common stock, par value $0.001 per share, granted to me by the Company’s Board of Directors on or about September 14, 2010. All other provisions of the Agreement shall remain unchanged and in full force and effect pursuant to their terms.

 

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
/s/ Robert Langer
    
	
 
    	
Robert LangerExhibit 10.14

 

SECURITY AGREEMENT

 

1.                                      Parties. This Agreement is made as of May 9, 2011, between T2 Biosystems, Inc., a Delaware corporation with its chief executive office presently at 101 Hartwell Avenue, Lexington, Massachusetts 02421 (herein called “Borrower”), and Massachusetts Development Finance Agency, a body politic and corporate created by Chapter 289 of the Acts of 1998 and established under Massachusetts General Laws Chapter 23G, as amended, with a principal place of business and mailing address of 160 Federal Street, Boston, Massachusetts 02110 (herein called “MassDevelopment”).

 

2.                                      Security Interest.

 

(a)                                 Borrower hereby grants to MassDevelopment a continuing and exclusive (except as provided in Section 4 below) first priority security interest in certain laboratory equipment, tooling and beta units for system development and testing purchased with, and subject to the prior security interest of Silicon Valley Bank, the cost of certain leasehold improvements reimbursed from, the proceeds of the Loan (as defined below) (collectively, the “Collateral”), and additions thereto, replacements or substitutions therefor, and proceeds thereof to the extent the same are not replaced or substituted with items of equal value.

 

(b)                                 The Collateral shall secure prompt, punctual and faithful observance, payment and performance of each and every obligation, covenant and agreement of Borrower under the Loan Documents, as defined below, including, but not limited to, payment of all amounts due from time to time under that certain Promissory Note of even date herewith in the original principal amount of One Million Six Hundred Eighty-Seven Thousand Five Hundred Dollars ($1,687,500.00), payable by Borrower to MassDevelopment (the “Note”, and together with this Agreement, the “Loan Documents”) evidencing and securing a loan in the same amount from the Borrower to MassDevelopment (the “Loan”). Upon payment in full of the Note, MassDevelopment shall, at Borrower’s expense, take any reasonable steps to evidence the termination of its security interest in the Collateral, including without limitation the filing of a termination statement under the Uniform Commercial Code for the State of Delaware.

 

3.                                      Location of Collateral. Except as set forth in this Section 3, the Collateral shall be kept and used by the Borrower solely at the Borrower’s facility in Lexington, Massachusetts (the “Premises”). Other than removals for the purpose of repair or replacement in the ordinary course of any of the Collateral, or as set forth in this Section 3, the Borrower shall not remove the Collateral, nor any part thereof, from the Premises without the written consent of MassDevelopment. Notwithstanding the foregoing, (i) beta units may be taken to customer sites for short-term demonstrations in the ordinary course of Borrower’s business, and (ii) tooling related to manufacturing may be used off-Premises by Borrower’s contract manufacturers ((i) and (ii), collectively, the “Remote Site Collateral”).

 

4.                                      After-Acquired Property. All replacements of and renewals to the Collateral shall become and be immediately subject to the security interest provided herein and be covered thereby. Borrower warrants and represents that all Collateral now is, and that all replacements thereof, substitutions therefor or additions thereto will be, free and clear of liens, encumbrances or security interests of others, except for security interests junior in priority to the interest created by this Agreement and to which MassDevelopment, at its option and in its sole and absolute discretion, shall consent.

 

5.                                      Representations and Warranties. Borrower warrants and represents that:

 

(a)                                 Borrower is a corporation, duly established under the laws of the State of Delaware and qualified to conduct business in the Commonwealth of Massachusetts, and the execution by Borrower of the Loan Documents and any other instruments executed by Borrower in connection therewith constitute

 

 

representations by the individual in his capacity as a duly authorized officer of Borrower signing the Loan Documents and said instruments, and by Borrower, that such execution has received all such authorization as may be necessary to permit such execution, and the Loan Documents and said instruments are binding and in force against Borrower;

 

(b)                                 prior to the date hereof Borrower has never (i) disposed of, transported, or arranged for the transport of any hazardous material or oil without compliance with all applicable statutes, regulations, ordinances, directives, and orders; (ii) been legally responsible for any release or threat of release of any hazardous material or oil; or (iii) received notification of any potential or known release or threat of release of any hazardous material or oil from any site or vessel occupied or operated by Borrower and/or of the incurrence of any expense or loss in connection with the assessment, containment, or removal of any release or threat of release of any hazardous material or oil from any such site or vessel;

 

(c)                                  Borrower has filed any and all federal, state and local tax returns required as of the date hereof and has paid any and all taxes due thereon; and

 

(d)                                 there is no action, suit claim, proceeding, investigation or arbitration proceeding pending (or, to the knowledge of Borrower, threatened) against or otherwise involving Borrower or any of the officers, directors, former officers or directors, employees, shareholders or agents of Borrower (in their capacities as such) and there are no outstanding court orders to which Borrower is a party or by which any of its assets are bound. Borrower has no reason to believe that any such action, suit, proceeding, investigation or arbitration proceeding may be brought against Borrower.

 

(e)                                  proceeds of the Loan will be used to (i) acquire or reimburse Borrower for the acquisition of new laboratory equipment, (ii) acquire or reimburse Borrower for the acquisition of new tooling and beta units for system development and testing, and (iii) reimburse Borrower for leasehold improvement costs (the “Project”) located at its facility at 101 Hartwell Avenue, Lexington, Massachusetts.

 

6.                                      Further Covenants of Borrower. Borrower further covenants as follows:

 

(a)                                 to pay before the same become delinquent (and to provide, by such time, evidence of such payment, satisfactory to MassDevelopment) all taxes (including real estate taxes) on the Collateral; and to pay before the same become delinquent (and upon request, to provide evidence of such payment, satisfactory to MassDevelopment) all other charges, sewer use fees, water rates and assessments of every name and nature, whether or not assessed against the Borrower, if applicable or reasonably related to the Collateral, or any interest therein, or the debt, obligation or any agreement secured hereby, or the disbursement or the application or the proceeds thereof. Borrower shall have the right to contest the validity, applicability or amount of any asserted tax provided that, in MassDevelopment’s reasonable determination, such contest will not impair the validity or priority of the lien created by this Agreement and provided that the full amount of such tax is either paid to the taxing authority under protest or escrowed with MassDevelopment;

 

(b)                                 to notify MassDevelopment promptly of any accidental damage to the Collateral in excess of one hundred sixty thousand dollars ($160,000.00); to keep the Collateral in good order, repair and condition, damage from casualty expressly not excepted, and not to permit or commit waste on the Collateral nor remove nor alter anything which constitutes a part of the Collateral, except in the ordinary course of business, without the consent of MassDevelopment, such consent not to be unreasonably withheld, conditioned, or delayed, except as otherwise provided herein; and all construction on the Premises shall comply with, and each and every part of the Premises shall be maintained in accordance with, any lawful requirements or provisions, public or private, relating to the same or the use thereof;

 

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(c)                                  that all proceeds of casualty insurance policies maintained by Borrower relating to the Collateral shall be paid to MassDevelopment and shall be released to Borrower to pay for the costs of repair and restoration of the Collateral; and to the extent MassDevelopment retains any funds not required for repair and restoration, those funds shall be applied toward the indebtedness secured hereby;

 

(d)                                 that the awards of damages on account of any condemnation for public use of or injury to the Collateral shall be paid to MassDevelopment for application toward the indebtedness secured hereby; and promptly upon obtaining knowledge of the institution of any proceedings on account of any condemnation for public use of or injury to the Premises, or any portion thereof, Borrower will notify MassDevelopment of the pendency of such proceedings, and no settlement respecting such awards shall be effected without the consent of MassDevelopment;

 

(e)                                  to pay when due all reasonable out-of-pocket fees and charges incurred by MassDevelopment incident to the loan transaction evidenced by the Loan Documents, as well as any and all commitment fees remaining due thereunder;

 

(f)                                   that, from time to time, on the request of MassDevelopment, Borrower shall furnish a written statement, signed and if requested, acknowledged, setting forth the amount of the indebtedness which Borrower acknowledges to be due on the Note, specifying any claims of off-set or defense which Borrower asserts against the indebtedness secured hereby or any obligations to be paid or performed hereunder, and the then-current state of facts relative to the condition of the Collateral; and to deliver to MassDevelopment promptly copies of all junior mortgages, security agreements, assignments of leases and rents and similar instruments which Borrower may create with respect to the Premises, together with copies of any notices from any holder of such an instrument claiming that Borrower is in default in the performance or observance of any of the terms thereof;

 

(g)                                  that whether or not for additional interest or other consideration paid or payable to MassDevelopment, no forbearance on the part of MassDevelopment or extension of the time for payment of the whole or any part of the obligations secured hereby, whether oral or in writing, or any other indulgence given by MassDevelopment to Borrower or to any other party claiming any interest in or to the Collateral, shall operate except as provided by the forbearance or indulgence to release or in any manner affect the original liability of Borrower, or impair any right of MassDevelopment, including, without limitation, the right to realize, upon the security or any part thereof, for the obligations secured hereby or any of them, notice of any such extension, forbearance or indulgence being waived by Borrower and all those claiming by, through or under Borrower; and no consent or waiver, express or implied, by the holder to or of any default by the Borrower shall be construed as a consent or waiver to or of any further default in the same or any other term, condition, covenant or provision of this Agreement or of the obligations secured hereby; in case redemption is had by Borrower after foreclosure proceedings have begun, MassDevelopment shall be entitled to collect all reasonable costs, charges and expenses incurred up to the time of redemption; and in case any one or more of the provisions of this Agreement may be found to be invalid or unenforceable for any reason or in any respect, such invalidity shall not limit or impair enforcement of any other provision hereof;

 

(h)                                 that, except for real estate taxes and assessments before any delinquency thereupon (delinquency with reference to such taxes and assessments being herein defined, for the purpose of this Agreement, as meaning the time when, on the nonpayment thereof, interest or penalties commence to accrue), Borrower shall not create, permit or suffer to be created or permitted to remain (and shall discharge or promptly cause to be discharged or bonded over) any mechanics’ or laborers’ lien of record, or any attachment, on the Collateral or any part thereof or interest therein, without the consent of MassDevelopment which may be withheld in MassDevelopment’s sole and absolute discretion, even if

 

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such encumbrance is inferior to the interest secured hereby; without limitation, and except where MassDevelopment receives independent security satisfactory to MassDevelopment during the pendency of legal proceedings contesting the impositions of a governmental lien, the filing of a notice of Federal or State tax lien with MassDevelopment or the office at which, by law, such notice is to be filed to be effective against the Collateral, whether or not such lien applies, in terms, to the Collateral, shall be a breach of this condition;

 

(i)                                     that Borrower shall not transfer, whether voluntarily, by operation of law or otherwise, its interest in that certain lease agreement by and between Borrower as tenant and King 101 Hartwell LLC dated [insert date],  as amended, with respect to the Premises, including all addenda and riders thereto (the “Lease”), or any part thereof, and that no default shall occur by Borrower as tenant under the Lease which shall remain uncured beyond any applicable grace or cure period contained in the Lease;

 

(j)                                    that Borrower shall not file a petition or any application for relief, extension, moratorium or reorganization under any bankruptcy, insolvency or debtor’s relief law, or make an assignment for the benefit of creditors or enter into any trust mortgage arrangements, so-called, or consent to the appointment of a receiver of any of the property of Borrower, including the Collateral;

 

(k)                                 that Borrower shall not permit any petition under any bankruptcy, insolvency or debtor’s relief law filed against it to remain undischarged for a period of more than sixty (60) days after the filing thereof, nor shall Borrower permit the continuation of any receivership proceedings instituted against it for more than a period of sixty (60) days after the commencement thereof;

 

(l)                                     that Borrower shall not dispose of any hazardous material or oil on the land on which the Premises is located; nor store or transport or arrange for the transport of any hazardous material or oil on such property except if such disposal, storage or transport is in the ordinary course of Borrower’s business and is in compliance with all applicable statutes, regulations, ordinances, directives and orders; if Borrower obtains knowledge or notice of any potential or known release or threat of release of any hazardous material or oil at or from any site or vessel occupied or operated by Borrower, and/or upon Borrower’s obtaining knowledge of any incurrence of any expense or loss by any governmental authority in connection with the assessment, containment, or removal of any hazardous material or oil for which expense or loss Borrower may be liable, then in either of such events, Borrower shall take all such reasonable action, including without limitation the conducting of engineering tests, to confirm whether or not a potential or known release or threat of release of any hazardous material or oil exists and to undertake all necessary remediation required under Mass. Gen. Laws Ch. 21E and the Massachusetts Contingency Plan;

 

(m)                             that Borrower, at Borrower’s expense, shall furnish to MassDevelopment as soon as practicable (and in any event within forty-five (45) days) after the end of each fiscal quarter (other than the final quarter of each fiscal year), unaudited interim financial statements as of the end of such fiscal quarter (prepared on a consolidated and consolidating basis, if applicable), including balance sheet and related statements of income and cash flows all certified by Borrower’s Chief Executive Officer or Chief Financial Officer to the effect that such financial statements present fairly in all material respects the financial condition and results of operations of Borrower as of the date thereof, and otherwise in form reasonably acceptable to MassDevelopment. In addition, Borrower shall, at Borrower’s expense, provide to MassDevelopment annual audited financial statements (prepared on a consolidated and consolidating basis, if applicable) within one hundred eighty (180) days of year end, prepared and audited by a certified public accountant reasonably acceptable to MassDevelopment. MassDevelopment shall have the right, during regular business hours and upon reasonable prior notice, to inspect the Premises and the books and records of Borrower at its sole cost for the purpose of verifying the accuracy of such financial documents (or, for the purpose of conducting its own audit at Borrower’s cost of the records and books of account of

 

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Borrower if Borrower fails to furnish or cause to be furnished and delivered the aforesaid financial documents), provided, however, that MassDevelopment shall not have the right to exercise its audit rights with respect to the books and records more than once in any calendar year, except upon and during the continuance of any Event of Default;

 

(n)                                 that Borrower shall furnish to MassDevelopment as soon as practicable (and in any event within thirty (30) days) after the end of each calendar year, employment data for the Borrower’s operations in Massachusetts in a form reasonably acceptable to MassDevelopment;

 

(o)                                 that Borrower has not granted, and shall not grant after the date hereof and throughout the full term of the Note, a security interest to any third party in any of the Collateral for the Loan without the prior express written consent of MassDevelopment which it may grant or withhold in its sole discretion;

 

(p)                                 that as long as any principal remains outstanding under the Loan, Borrower shall not incur any additional indebtedness in an amount greater than $200,000.00 in the aggregate without MassDevelopment’s prior written consent, which MassDevelopment may grant or withhold in its sole discretion. MassDevelopment may require any such additional indebtedness to be subordinate to the Loan;

 

(q)                                 that Borrower shall, at all times throughout the term of the Loan, maintain a minimum balance of $300,000 in cash and/or marketable securities;

 

(r)                                    that Borrower shall abide by the terms and conditions of a certain Negative Pledge Agreement of even date herewith (the “Negative Pledge Agreement”) by and between Borrower and MassDevelopment with respect to Borrower’s Intellectual Property (as such term is defined in the Negative Pledge Agreement); and

 

(s)                                   that Borrower shall not sell or otherwise dispose of any of Borrower’s Intellectual Property (as such term is defined in the Negative Pledge Agreement) without MassDevelopment’s express written consent; provided that MassDevelopment’s written consent shall not be required for licensing of Borrower’s Intellectual Property in the ordinary course of Borrower’s business and otherwise pursuant to the terms and conditions of the Negative Pledge Agreement;

 

(t)                                    in the event that the budget and related sources and uses of funding provided by Borrower to MassDevelopment with respect to the transactions contemplated by the Loan documents change in any material respect from that which was submitted to MassDevelopment at the time of Borrower’s application for the Loan, the Borrower shall submit a revised budget and sources and uses of funding, along with revised cash flow projections, to MassDevelopment and its participants, if any, in the Loan, for approval, such approval not to be unreasonably withheld, conditioned, or delayed.

 

7.                                      Insurance.  Borrower agrees to maintain such insurance on the Collateral and its use as MassDevelopment may from time to time reasonably require and as may from time to time be required by any applicable Federal, State or local law or regulation including, without limitation, (x) a general liability insurance policy naming MassDevelopment as an additional insured with respect to the Collateral in an amount reasonably acceptable to MassDevelopment, (y) fire and extended coverage insurance against loss or damage to the Collateral by fire and any of the risks covered by insurance of the type now known as “extended coverage”, including without limitation earthquake, cost of demolition, vandalism, malicious mischief, lightning, windstorm, hail, explosion, riot, civil commotion, damage from aircraft and vehicles, smoke damage, and sprinkler damage and (z) property/casualty insurance covering the Collateral at the Premises and at locations other than the Premises, for not less than full replacement cost of the Collateral from time to time during the period of time this Agreement remains in force and effect; and certificates of

 

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insurance or insurance binders in forms satisfactory to MassDevelopment, evidencing the insurance required by MassDevelopment, together with any other insurance with respect to the Collateral maintained by Borrower, shall be deposited with MassDevelopment, and, MassDevelopment shall be added and named as an insured and loss payee, and shall be first payable to MassDevelopment in case of loss, as provided in Section 6(c) above; all renewals or replacements of such insurance from time to time in force, together with evidence of payment of premiums thereon reasonably satisfactory to MassDevelopment, shall be delivered to MassDevelopment ten (10) days at least before the expiration date of the then current insurance; all insurance required by MassDevelopment to be maintained with respect to the Collateral shall be written by such companies on such terms, in such form and for such periods and amounts as MassDevelopment shall from time to time reasonably approve and shall contain a provision requiring at least thirty (30) days’ advance written notice to MassDevelopment before any such policy may be cancelled or modified; and no settlement on account of any loss covered by such insurance shall be effected without the consent of MassDevelopment. It is hereby acknowledged that the insurance maintained by Borrower is satisfactory to MassDevelopment with respect to the Collateral financed by the Loan proceeds as of the date hereof; however, Borrower shall be responsible for insuring any and all Collateral financed by future advances under the Loan, including any and all Remote Site Collateral, in accordance with this Section 7.

 

8.                                      Remedies of MassDevelopment.

 

(a)                                 In the case of the occurrence and continuation of (i) an Event of Default under the Note or (ii) a violation by Borrower of its obligations under this Agreement not remedied within thirty (30) days after written notice thereof from MassDevelopment (except that where, for any of the foregoing, a period of grace is specifically otherwise provided or negated, such specific periods of time or negation shall govern in each case), MassDevelopment shall have all of the rights and remedies of a secured party under the UCC, including without limitation the right in accordance with applicable law to enter peaceably into and upon the Premises and any other place where the Collateral may be, and to retake the same in order to foreclose upon it in any manner permitted by applicable law.

 

(b)                                 In addition to the foregoing, and in addition to any remedies available to MassDevelopment under the Note, if there shall be any breach of the conditions of subsections (i), (j), (k), or (l) of Section 6, the representation in Section 5(b) or the provisions of Section 7, or if, in any respect other than the filing of a governmental lien, there shall be any breach of any conditions or covenants of this Agreement continuing for more than thirty (30) days after the giving of notice by MassDevelopment or an Event of Default under the Note continuing beyond any applicable grace periods (except that where, for any of the foregoing, a period of grace is specifically otherwise provided or negated, such specific periods of time or negation shall govern in each case), or if there occurs any default under any prior or subordinate security interest covering Borrower’s leasehold interest in the Premises, or under any note or other obligation secured thereby, which default may result in the acceleration of the indebtedness secured thereby, or if there shall occur the commencement of foreclosure or other enforcement proceedings under any prior or subordinate security interest covering any other asset of Borrower or Borrower’s leasehold interest in the Premises, or under any note or other obligation secured thereby, then MassDevelopment, in addition to, and not in limitation of, any and all other rights or remedies available to it by law or by any other provision of any of the instruments given to secure the Note, shall have the right, during the continuance of the default beyond any applicable grace period, and without notice, in accordance with applicable law:

 

(i)                                     to peaceably enter upon the Premises and take possession of the Collateral, or any part thereof; and to perform any acts MassDevelopment shall deem necessary or proper to conserve the Collateral, to cure any default of the Borrower under the Lease, and to manage and operate the Collateral, to collect and receive all rents, revenues, income, issues and profits from the Collateral,

 

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past-due and thereafter accruing, and to exercise all other rights of the Borrower with respect to the Collateral;

 

(ii)                                  to have a receiver appointed to enter and take possession of the Collateral, or any part thereof, and to perform any acts said receiver shall deem necessary or proper to conserve the Collateral (including, without limitation, the making of repairs, replacements and alterations), to maintain the Lease in good standing without uncured defaults, to manage and operate the Collateral, to collect and receive all rents, revenues, income, issues and profits from the Collateral, past-due and thereafter accruing, and to exercise all other rights of the Borrower with respect to the Collateral;

 

(iii)                               to declare the entire indebtedness of the Borrower under the Note forthwith due and payable;

 

(iv)                              to sell the Collateral at public auction on such terms and conditions as MassDevelopment shall determine, having first given such notice, prior to the sale, of the time and place of sale and terms and conditions of sale by publication in one (1) or more newspapers having a general circulation in the municipality in which the Premises, or part thereof, is located, all subject, however, to the requirements of this Agreement and applicable law; or to foreclose on the Collateral in any other manner permitted by law; and

 

(v)                                 to obtain judgment and execution for the indebtedness secured by this Agreement, to the extent not otherwise satisfied;

 

(c)                                  If there shall be any breach in any condition or covenant of this Agreement beyond any applicable grace period, MassDevelopment shall have the right, but without any obligation so to do, to cure such default for the account of Borrower, and, to the fullest extent permissible according to law, apply any funds credited by or due from MassDevelopment to Borrower against the same (without any obligation first to enforce any other rights of MassDevelopment, including, without limitation, any rights under the Note or this Agreement, or any guarantee thereof, and without prejudice to any such rights); to pay the premiums for any insurance required hereunder not paid when due; to incur and pay reasonable expenses in protecting its rights hereunder and the security hereby granted, including, again without limitation, all payments on account of principal, interest and such other charges as may become due to cure default under any subordinate interest, including the notes or obligations secured thereby, affecting the Collateral; to pay any balance due under any security agreement on any articles, fixtures and equipment owed by Borrower included as a part of the Collateral; and the payment of all amounts so incurred shall be secured hereby as fully and effectually as any other obligation of Borrower secured hereby; and, to the fullest extent permissible according to law, to apply to any of these purposes or to the repayment of any amounts so paid by MassDevelopment of any sums paid on the Note or this Agreement by Borrower as interest or otherwise.

 

(d)                                 At any foreclosure sale, any combination or all of the Collateral or security given to secure the indebtedness secured hereby, may be offered for sale for one total price, and the proceeds of such sale accounted for in one account without distinction between the items of security or without assigning to them any proportion of such proceeds, Borrower hereby waiving the application of any doctrine of marshalling; and, in case MassDevelopment, in the exercise of the power of sale herein given, elects to sell in parts or parcels; said sales may be held from time to time, and the power shall not be fully executed until all of the Collateral not previously sold shall have been sold.

 

(e)                                  If MassDevelopment shall exercise the right described in either subsection (b)(i) or (b)(ii) of this Section 8, the expenses (including, without limitation, reasonable receiver’s fees and reasonable attorney’s fees) incurred pursuant to the powers herein contained likewise shall be secured hereby, and

 

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MassDevelopment shall apply such rents, income, issues and profits as shall be received by it first to the payment of all costs and expenses incurred and thereafter to the indebtedness secured hereby in such order of priority as MassDevelopment, in its sole discretion, shall determine; and the exercise of such rights and disposition of such funds shall not constitute a waiver of any foreclosure, once commenced, nor preclude the later commencement or foreclosure for breach hereof.

 

(f)                                   If MassDevelopment shall exercise the right described in subsection (b)(iv) of this Section 8, MassDevelopment may adjourn, from time to time, any sale by announcement of such adjournment at the time and place appointed for such sale or such adjourned sale; and, except as otherwise provided by law, MassDevelopment may, without further notice or publication, make such sale at the time and place to which the same shall be so adjourned. Upon completion of any sale, MassDevelopment shall execute and deliver an instrument conveying, assigning and transferring all right, title and interest in the Collateral, and rights sold, in the name of MassDevelopment, or in the name of Borrower, and the same shall operate to divest all right, title and interest of Borrower in any property or right so sold and shall be a perpetual bar, both at law and in equity, against Borrower and all persons claiming under Borrower unless MassDevelopment acts with willful neglect, gross negligence or in bad faith.

 

(g)                                  The rights and remedies of MassDevelopment for any default under any of the instruments given as security for the indebtedness secured hereby are not mutually exclusive, and may be exercised successively or concurrently and from time to time for as long as any default exists, and the failure of MassDevelopment to exercise any such rights in any one or more instances, or the acceptance by MassDevelopment of partial payments of amounts in default secured hereby, shall not constitute a waiver of such default, but such right shall remain continuously in force; and acceleration of maturity, once claimed hereby by MassDevelopment, may, at MassDevelopment’s option, be rescinded by written acknowledgment to that effect without waiving the default or any rights, including the right to accelerate once again, with respect thereto; moreover, the tender and acceptance of partial payment of amounts in default after acceleration, or the commencement of any foreclosure action, shall not in any way affect, rescind or terminate such acceleration of maturity or such foreclosure action.

 

(h)                                 If at any time any law or court decree prohibits the performance of any material obligation undertaken hereby by Borrower which would impair MassDevelopment’s interest in the Collateral or its right to payment under the Note, or, at any time provides that any amount to be paid hereunder by Borrower, other than a payment on account of the principal or of interest on the indebtedness secured hereby, must be credited against Borrower’s obligations under the Note, MassDevelopment shall have the right on thirty (30) days’ prior notice to Borrower, to require payment in full of the entire indebtedness secured hereby unless Borrower reverses such prohibition or otherwise reasonably satisfies MassDevelopment within said thirty (30) day period.

 

9.                                      MassDevelopment’s Appointment as Attorney-in-Fact.

 

(a)                                 Borrower hereby irrevocably constitutes and appoints MassDevelopment and any officer or agent thereof, with full power of substitution, as their true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of Borrower and in the name of Borrower or in its own name, from time to time in MassDevelopment’s discretion, for the purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents and instruments that may be necessary or desirable to accomplish the purposes of this Agreement and, without limiting the generality of the foregoing, hereby gives MassDevelopment the power and right, on behalf of Borrower, without notice to or assent by Borrower, but only after an Event of Default has occurred and is continuing, to do the following:

 

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(i)                                     to pay or discharge taxes or liens levied or placed on or threatened against the Collateral, to effect any repairs or any insurance called for by the terms of this Agreement and to pay all or any part of the premiums therefor and the costs thereof; and

 

(ii)                                  (A) to direct any party liable for any payment to Borrower under the Collateral, to make payment of any and all moneys due and to become due thereunder directly to MassDevelopment or as MassDevelopment shall direct; (B) to receive payment of and receipt for any and all moneys, claims and other amounts due and to become due at any time in respect of or arising out of the Collateral; (C) to sign and endorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications and notices in connection with the Collateral and other documents relating to the Collateral; (D) to commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to pursue and protect MassDevelopment’s interest in the Collateral or any part thereof and to enforce any other right in respect of the Collateral; (E) to sign Borrower’s name on any proof of claim against account debtors with respect to the Collateral; (F) to defend any suit, action or proceeding brought against Borrower with respect to any Collateral; (G) to settle, compromise or adjust any suit, action or proceeding described above and, in connection therewith, to give such discharges or releases as MassDevelopment may deem appropriate, all with respect solely to the Collateral; (H) to sign Borrower’s name on and file or record any financing statement necessary to perfect MassDevelopment’s interest in the Collateral; and (I) otherwise to repair, assemble, complete, alter, supply, use, license, sell, transfer, pledge, make any agreement with respect to or otherwise deal with the Collateral as fully and completely as though MassDevelopment were the absolute owner thereof for all purposes, and to do, at MassDevelopment’s option and at Borrower’s expense, at any time or from time to time, all acts and things that MassDevelopment deems reasonably necessary to protect, preserve or realize upon the Collateral and MassDevelopment’s security interests therein, in order to effect the intent of this Agreement, all as fully and effectively as the Borrower might do.

 

The Borrower hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof. This power of attorney is a power coupled with an interest and shall be irrevocable.

 

(b)                                 The powers conferred on MassDevelopment hereunder are solely to protect the interests of MassDevelopment in the Collateral and shall not impose any duty upon MassDevelopment to exercise any such powers for the benefit of Borrower or any other person. MassDevelopment shall be accountable only for amounts that it actually receives as a result of the exercise of such powers, and neither it nor any of its officers, directors, employees or agents shall be responsible to Borrower for any act or failure to act, except for its own willful misconduct taken or omitted in bad faith.

 

(c)                                  Any expenses reasonably incurred by MassDevelopment under this Section shall be paid by Borrower on demand and until so paid shall be added to the principal amount of any Obligations secured hereby and shall bear interest (calculated on the basis of a 360-day year for the actual days elapsed) at the same rate as provided in the Loan Documents after maturity or during an Event of Default.

 

10.                               Miscellaneous.

 

(a)                                 This Agreement (i) shall be governed by the internal laws of The Commonwealth of Massachusetts; (ii) may be amended and any rights or obligations hereunder may be waived, only by a writing signed by the party against whom enforcement thereof is sought; (iii) may be enforced by an

 

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action brought in any court of competent jurisdiction, including the Massachusetts Superior Court in and for Suffolk County, to the personal jurisdiction of which court each party hereby submits, and in any such action each party hereby knowingly and irrevocably waives the right to trial by jury; and (iv) is intended to provide MassDevelopment with all rights and remedies of a secured party under the UCC.

 

(b)                                 Any notice, request, instruction or other document to be given hereunder or under the Note to either party by the other shall be in writing and delivered personally or sent by recognized overnight courier, receipt confirmed or sent by certified or registered mail, postage prepaid, to the addresses set forth in this Agreement.

 

[Signatures Appear on Following Page]

 

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Executed under seal this 9th day of May, 2011.

 

 

	
BORROWER:
    	
MASSDEVELOPMENT:
    
	
 
    	
 
    
	
T2 BIOSYSTEMS, INC.
    	
MASSACHUSETTS DEVELOPMENT
   FINANCE AGENCY
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ John McDonough
    	
 
    	
By:
    	
/s/ Laura L. Canter
    
	
 
    	
Name:
    	
John McDonough
    	
 
    	
Name:
    	
Laura L. Canter
    
	
 
    	
Title:
    	
CEO & President
    	
 
    	
Title:
    	
Executive Vice President
    
	
 
    	
Hereunto Duly Authorized
    	
 
    	
 
    	
Finance Programs
    
	
 
    	
 
    	
 
    	
Hereunto Duly Authorized
    
							

 

Signature Page to Security Agreement

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