Document:

ttoo_Ex10_25

		

			

		

		
			 
		

		
			 
		

		
			 
		

		
			October 14, 2015
		

		
			 
		

		
			David Harding
		

		
			 
		

		
			 
		

		
			Dear David:
		

		
			 
		

		
			On behalf of T2 Biosystems, Inc., (the “Company”) I am delighted to make this offer of employment to you to join us in the role of Chief Commercial Officer for the Company beginning November 2, 2015.  
		

		
			 
		

		
			At T2 Biosystems, our mission is to lower mortality rates, improve patient outcomes and reduce the cost of healthcare by empowering medical professionals to make targeted therapeutic treatment decisions earlier.  As we proceed with the commercial launch of our first products, you are joining us at a very exciting time!  In September 2014, we received FDA clearance to sell our first two products, the T2Dx Instrument and T2Candida Panel, which provide sensitive detection of specific sepsis-causing pathogens directly from a whole blood specimen in 3-5 hours versus 2-5 days for competitive detection methods.  Published data has demonstrated that this improvement in time to detection may reduce the current mortality rate of 40% for those infections to 11%.  We are truly excited to bring this product to market.
		

		
			 
		

		
			This speed and detection capability is made possible by our proprietary magnetic resonance-based diagnostic technology platform, called T2MR, which has been in development since our inception in 2006.  Our next clinical applications for our T2MR technology will target bacterial sepsis, lyme disease and hemostasis, areas of significant unmet medical need where existing therapies could be more effective with improved diagnostics.
		

		
			 
		

		
			David, we are excited to extend this offer of employment to you.  We think you can help us fulfill our mission and we believe you will be a great fit with our team.  To kick things off, you will find all of the pertinent information related to our offer of employment in the attached pages.  Please read the offer carefully and, if it is acceptable, sign and return one copy to my attention (PDF copy is fine).    
		

		
			 
		

		
			If you have any questions, please do not hesitate to contact me at (781) 457-1220 or email at jmcdonough@t2biosystems.com. We are looking forward to having you on our team!
		

		
			 
		

		
			 
		

		
			Sincerely,
		

		
			 
		

		
			 
		

		
			 
		

		
			John McDonough
		

		
			CEO & President
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

OFFER OF EMPLOYMENT
		

		
			 
		

		
			 
		

		
			Date of employment:  Should you accept the terms of this offer, your employment with the Company will commence on November 2, 2015.
		

		
			 
		

		
			Background check:  Your employment is contingent upon your successful completion of a background check, which is required for all employees of the Company. The Company will forward you the appropriate documents, and such documents shall be required to be submitted to the Company by no later than one week prior to your start date. 
		

		
			 
		

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

		
			 
		

		
			Compensation and Tax Matters:    Your base salary shall be $14,583.34, payable semi-monthly (the equivalent of $350,000 when annualized) (your “Base Salary”) and subject to pro-ration for any partial initial or terminal week during which you are employed, in accordance with the normal payroll practices and schedule of the Company.
		

		
			 
		

		
			You will be eligible  to receive an annual bonus (the "Annual Bonus") based upon the achievement of specific company and individual milestones as determined by the Board of Directors.  The target amount of your Annual Bonus will be 40% of your Base Salary, subject to adjustment by the Board of Directors. Payment of the Annual Bonus will in all events be subject to your continued employment with the Company through the date of payment.  Your bonus eligibility for calendar year 2015 shall be pro-rated based on the actual number of days you are employed by the Company in 2015. 
		

		
			 
		

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

		
			 
		

		
			Stock Options:  Subject to the approval of the Board of Directors and your execution of the Company’s Stock Option Agreement, you will be offered options to purchase 146,600 shares of T2 Biosystems common stock, which represents .62% of the fully diluted shares outstanding, under the Company’s 2014 Incentive Award Plan (the “2014 Plan”).  The exercise price of the options will be equal to their fair market value on the date of grant (determined in accordance with the 2014 Plan). The stock options will have a 4-year vesting schedule with 25% of the options vesting one year from the vesting commencement date (your start date) and the remaining options vesting in equal monthly installments over the following 36 months.  The terms and conditions of such stock option grant are more fully described in the 2014 Plan.
		

		
			 
		

		
			 
		

		
			Change of Control Severance Agreement:  Subject to the approval of the Board of Directors and your execution of the attached Change of Control Severance Agreement (the “Change in Control Agreement”), you will be offered certain benefits in the event of a change in control of the Company, as set forth in more detail and defined in the Change in Control Agreement, including severance compensation and the 

		 

		

			Active: 2015

		

 

acceleration of certain stock options, each such benefit to be subject to the terms of the Change in Control Agreement. 
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

			
	
			
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			The opportunity to enroll in the Company’s 401(k) Investment and Section 125 Plans based on plan eligibility requirements; and

		
			 
		

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

		
			 
		

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

		
			 
		

		
			Non Competition/Non-Disclosure/Invention Assignment Agreement:  No later than on the first day of your employment with the Company you will be required to sign the enclosed Non-Competition/Non-Disclosure/Inventions Assignment Agreement (“Obligations Agreement”) which includes nondisclosure, inventions ownership, and other provisions that are necessary to protect the Company’s confidential information, intellectual; property, trade secrets, and customer relationships.    As you may be given access to such protectable interests, your employment is contingent upon your signing the Obligations Agreement.  The terms of the Obligations Agreement will survive termination, for whatever reason, of the employment relationship.
		

		
			 
		

		
			Prior Agreements: You acknowledge and confirm that you have provided/disclosed to the Company all restrictive covenants and agreements, including nondisclosure and confidentiality agreements, to which you are a party.  You agree that you shall not disclose to the Company or use while an employee of the Company any confidential or trade secret information obtained by you from other persons or employers and shall not bring any property upon the Company premises which has been misappropriated by others.  You also acknowledge that the Company expects you to honor any prior obligations to former employers to which you remain bound.
		

		
			Employment At Will:    Although you are being hired as an employee commencing on or about November 2, 2015,  your employment with the Company shall be at will.  This means that your employment is not guaranteed for any definite period of time, and you or the Company may terminate your employment relationship with or without notice at any time and for any or no reason or cause.  Other than as required by applicable laws, the Company is not bound to follow any policy, procedure, or process in connection with employee discipline, employment termination or otherwise.    
		

		
			

		 

		

			Active: 2015

		

 

Entire Agreement:  This letter (together with the attached Obligations Agreement and Change in Control Agreement) sets forth the entire understanding between the Company and yourself with respect to your employment by the Company.  All prior discussions, negotiations, correspondence and other understandings between you and the Company are superseded, and there are no representations, warranties or undertakings by the Company or you with respect to your employment by the Company, which are not set forth in this letter.    
		

		
			If you agree with the terms of this offer, please acknowledge your understanding and acceptance of this offer by signing where indicated below and return to me by October 16,  2015. We look forward to working with you.
		

		
			 
		

		
			 
		

		
			 
		

		
			Sincerely,
		

		
			 
		

		
			T2 Biosystems, Inc.
		

		
			 
		

		
			 
		

		
			By: ___________________________________________
		

		
			John McDonough          Date
		

		
			CEO & President
		

		
			 
		

		
			 
		

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

		
			 
		

		
			 
		

		
			By: ___________________________________________
		

		
			David Harding           Date
		

		
			 
		

		
			 
		

		
			The Immigration Control and Reform Act of 1986 requires that all new employees complete the I-9 form and submit proof of employment eligibility to work in the United States within the first three days of their start date.  If accepting employment the Company will provide you the I-9 form and requests that you present appropriate documents when you report to the Company and a representative of the Company will complete the I-9 form with you.  Accordingly, you will have three days from your start date to submit proof of your eligibility to work in the United States.
		

		 

		

			Active: 2015ttoo_Ex10_26

		
			Execution Copy
		

		
			 
		

		
			SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT
		

		
			 
		

		
			THIS SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (this    “Amendment”),
		

		
			dated as of October 30, 2015, is made among T2 Biosystems, Inc., a Delaware corporation (the “Borrower”), Solar Capital Ltd., a Maryland corporation, in its capacity as collateral agent (in such capacity, “Collateral Agent”) and  as a lender, and Comerica Bank (each a “Lender” and, collectively, the “Lenders”).
		

		
			 
		

		
			The Borrower, the Lenders and the Collateral Agent are parties to a Loan and Security Agreement dated as of July 11, 2014, as amended by the First Amendment to Loan and Security Agreement dated May 27, 2015 (the “Loan and Security Agreement”).  The Borrower has requested that the Lenders agree to certain amendments to  the Loan and Security Agreement. The Lenders have agreed to such request, subject to the terms and conditions hereof.
		

		
			 
		

		
			Accordingly, the parties hereto agree as follows:
		

		
			 
		

		
			SECTION 1        Definitions; Interpretation.
		

		
			 
		

			
	
			
				 (a)
			Terms Defined in Loan and Security Agreement. All capitalized terms used in  this  Amendment (including in the recitals hereof) and not otherwise defined herein shall have the meanings assigned to them in the Loan and Security Agreement.

		
			 
		

			
	
			
				 (b)
			Interpretation. The rules of interpretation set forth in Section 1.1 of the Loan and Security Agreement shall be applicable to this Amendment and are incorporated herein by this reference.

		
			 
		

		
			SECTION 2 Amendments to the Loan and Security Agreement. The Loan and Security Agreement shall be amended as follows, effective as of the date of satisfaction of the conditions set forth in Section 4 (such date being the “Amendment Effective Date”):
		

		
			 
		

			
	
			
				 (a)
			Definition of “Permitted Indebtedness”.

		
			 
		

			
	
			
				 (i)
			The definition of “Permitted Indebtedness” in Section 1.3 of the Loan and Security Agreement is hereby amended as follows:

		
			 
		

			
	
			
				 (1)
			In clause (e), “Five Hundred Thousand Dollars ($500,000.00)” is deleted and replaced with “Two Million Dollars ($2,000,000.00)”;

		
			 
		

			
	
			
				 (2)
			In clause (f), “Ten Million Dollars ($10,000,000.00)” is deleted and replaced with “Eight Million, Five Hundred Thousand Dollars ($8,500,000.00)”; and

		
			 
		

			
	
			
				 (3)
			

			
	
			
			the following sentence is inserted at the end of the definition:

		
			 
		

			
	
			
				 (ii)
			“The aggregate amounts permitted under subclauses (e) and (f) above shall be reduced, without duplication, by the aggregate purchase price received in connection with any sale leaseback transactions not prohibited by Section 7.13 then in existence. The Borrower shall elect how such reductions will be allocated between the limits on subclause (e) and subclause (f).”

		
			 
		

			
	
			
				 (b)
			Dispositions. Section 7.1 of the Loan and Security Agreement shall be amended by deleting the word “or” prior to clause (d) and adding a new clause (e) at the end thereof as follows:

		
			 
		

		
			“; or (e) sales of equipment and other personal property in connection with sale leaseback transactions to the extent not prohibited by Section 7.13.”
		

		
			 
		

			
	
			
				 (c)
			

			
	
			
			Sale Leaseback Transactions. The following new negative covenant is added as Section 7.13:

		
			 
		

		
			

		 

		

			

		

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“Sale Leaseback Transactions. Enter into sale leaseback transactions in an aggregate amount greater than Ten Million Thousand Dollars ($10,000,000.00), provided that this aggregate amount shall be reduced, without duplication, by (i) any capitalized lease obligations and purchase money Indebtedness under subclause (e) of the “Permitted Indebtedness” definition, and (ii) any Indebtedness secured by a Lien on specific equipment under subclause (f) of the “Permitted Indebtedness” definition.”
		

		
			 
		

			
	
			
				 (d)
			References Within Loan and Security Agreement. Each reference in the Loan and Security Agreement to “this Agreement” and the words “hereof,” “herein,” “hereunder,” or words of like import, shall mean and be a reference to the Loan and Security Agreement as amended by this Amendment.

		
			 
		

		
			SECTION 3    Lender Directions to Collateral Agent. The Lenders hereby (a) direct the Collateral Agent to    enter into the Agreement Regarding Equipment and Leases among the Collateral Agent, the Borrower and Essex Capital Corporation, a California corporation (“Essex”), in substantially the form attached as Exhibit A hereto,   and
		

			
	
			
				 (b)
			

			
	
			
			agree that the certain Master Lease Agreement dated on or about the date hereof between Essex and the Borrower and the documents related thereto are permitted under the Loan and Security Agreement; provided that the consent in this Section 3(b) is not an exclusion from the limitation in or meant to be an addition to the provisions of Section 7.13 of the Loan and Security Agreement.

		
			 
		

		
			SECTION 4      Conditions of Effectiveness.  The effectiveness of Section 2 of this Amendment shall be subject   to the satisfaction of each of the following conditions precedent:
		

		
			 
		

			
	
			
				 (a)
			Fees and Expenses. The Borrower shall have paid (i) all invoiced costs and expenses then due in accordance with Section 6(d), and (ii) all other fees, costs and expenses due and payable as of the Amendment Effective Date under or in connection with this Amendment and the Loan and Security Agreement.

		
			 
		

			
	
			
				 (b)
			This Amendment. The Collateral Agent shall have received this Amendment, executed by the Lenders and the Borrower.

		
			 
		

			
	
			
				 (c)
			Representations and Warranties; No Default. On the Amendment Effective Date, after giving effect to the amendment of the Loan and Security Agreement contemplated hereby:

		
			 
		

			
	
			
				 (i)
			The representations and warranties contained in Section 5 shall be true and correct on and as of the Amendment Effective Date as though made on and as of such date; and

		
			 
		

			
	
			
				 (ii)
			There exists no Events of Default or events that with the passage of time would result in an Event of Default.

		
			 
		

		
			SECTION 5 Representations and Warranties. To induce the Lenders to enter into this Amendment,  the  Borrower hereby confirms, as of the date hereof, that the representations and warranties made by it in Section 5 of the Loan and Security Agreement and in the other Loan Documents are true and correct in all material respects; provided,  however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof. For the purposes of this Section 5, (i) each reference in Section 5 of the Loan and Security Agreement to “this Agreement,” and the words “hereof,” “herein,” “hereunder,” or words of like import in such Section, shall mean and be a reference to the Loan and Security Agreement as amended by this Amendment, and (ii) any representations and warranties which relate solely to an earlier date shall not be deemed confirmed and restated as of the date hereof (provided that such representations and warranties shall be true, correct and complete as of such earlier date).
		

		
			 
		

		
			SECTION 6       Miscellaneous.
		

		
			 
		

			
	
			
				 (a)
			Loan Documents Otherwise Not Affected. Except as expressly amended pursuant hereto, the Loan and Security Agreement and the other Loan Documents shall remain unchanged and in full force and effect and is hereby ratified and confirmed in all respects. The Lenders’ and the Collateral Agent’s execution and delivery of, or acceptance of, this Amendment shall not be deemed to create a course of dealing or otherwise create any

		
			 
		

		
			

		 

		

			

		

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express or implied duty by any of them to provide any other or further amendments, consents or waivers in the future.
		

		
			 
		

			
	
			
				 (b)
			Conditions. For purposes of determining compliance with the conditions specified in Section 4, each Lender that has signed this Amendment shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Collateral Agent shall have received notice from such Lender prior to the Amendment Effective Date specifying its objection thereto.

		
			 
		

			
	
			
				 (c)
			No Reliance. The Borrower hereby acknowledges and confirms to the Collateral Agent and the Lenders that the Borrower is executing this Amendment on the basis of its own investigation and for its own reasons without reliance upon any agreement, representation, understanding or communication by or on behalf of any other Person.

		
			 
		

			
	
			
				 (d)
			Costs and Expenses. The Borrower agrees to pay to the Collateral Agent on demand the reasonable out-of-pocket costs and expenses of the Collateral Agent and the Lenders party hereto, and the  reasonable fees and disbursements of counsel to the Collateral Agent and the Lenders party hereto (including allocated costs of internal counsel), in connection with the negotiation, preparation, execution and delivery of this Amendment and any other documents to be delivered in connection herewith.

		
			 
		

			
	
			
				 (e)
			Binding Effect. This Amendment binds and is for the benefit of the successors and permitted assigns of each party.

		
			 
		

			
	
			
				 (f)
			Governing Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES OF SUCH STATE), INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, REGARDLESS OF THE LOCATION OF THE COLLATERAL.

		
			 
		

			
	
			
				 (g)
			Complete Agreement; Amendments. This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements with respect to such subject matter. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Agreement and the Loan Documents.

		
			 
		

			
	
			
				 (h)
			Severability of Provisions. Each provision of this Amendment is severable from every other provision in determining the enforceability of any provision.

		
			 
		

			
	
			
				 (i)
			Counterparts. This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement.

		
			 
		

			
	
			
				 (j)
			Loan Documents. This Amendment and the other documents related hereto shall constitute Loan Documents.

		
			 
		

		
			[Balance of Page Intentionally Left Blank; Signature Pages Follow]
		

		
			 
		

		
			

		 

		

			

		

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			IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment, as of the date first above written.
		

		
			BORROWER:
		

		
			 
		

		
			T2 BIOSYSTEMS, INC.
as Borrower
		

		
			 
		

		
			 
		

		
			By: /s/ Maurice Castonguay___________________________________________________________________________________________________
		

		
			Title: Chief Financial Officer
		

		
			 
		

		
			 
		

		
			 
		

		
			COLLATERAL AGENT AND LENDERS:
		

		
			 
		

		
			SOLAR CAPITAL LTD.,
as Collateral Agent and a Lender
		

		
			 
		

		
			 
		

		
			By: /s/ Anthony Storino_______________________________________________________________________________________________________
		

		
			Name: Anthony Storino _______________________________________________________________________________________________________
		

		
			Title: Authorized Signatory
		

		
			 
		

		
			 
		

		
			 
		

		
			COMERICA BANK,
as a Lender
		

		
			 
		

		
			 
		

		
			By /s/ Garth Gorrall___________________________________________________________________________________________________________
		

		
			Name: Garth Gorrall_________________________________________________________________________________________________________
		

		
			Title:  SVP
		

		
			 
		

		
			

		 

		

			Second Amendment to Loan and Security Agreement

		

		

			 

		

 

		

			 

		

Exhibit A – Agreement regarding Equipment and Leases
		

		
			 
		

		
			

		 

		

			

		

			Exhibit A

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