Document:

ttoo_Ex10_4

		

			 

		

		
			Exhibit 10.4
		

		
			 
		

		
			T2 BIOSYSTEMS, INC.
		

		
			 
		

		
			Change of Control Severance Agreement
		

		
			 
		

		
			 
		

		
			April 15, 2016
		

		
			 
		

		
			Shawn Lynch
		

		
			 
		

		
			 
		

		
			Dear Shawn,
		

		
			 
		

		
			This letter sets forth the agreement between you and T2 Biosystems, Inc. (the “Company”) regarding certain terms and conditions of your employment.  
		

		
			 
		

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

		
			 
		

			
	
			
				(a)
			the Company will pay you severance in an amount equal to 12 months of your then current annual base salary, payable in equal installments over a period of 12 months (the “Severance Period”) in accordance with the Company’s payroll practices, commencing on your termination of employment; 

		
			 
		

			
	
			
				(b)
			if you have been continuously employed by the Company for less than one year as of the date your employment terminates, the vesting schedule of any equity awards of the Company held by you shall automatically be amended to state that all of the options subject to such equity award(s) scheduled to vest within 12 months of the date of your termination shall immediately accelerate and become fully vested, provided that with respect to any such awards intended to constitute “qualified performance based compensation” under Section 162(m) of the Code, whether a Change of Control has occurred shall be determined without regard to clause (iv) of the definition of Change of Control below; 

		
			 
		

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

		
			 
		

		 

		

			 

		

		

			 

		

		

			 

		

 

			
	
			
				(d)
			If you timely elect continued group medical and dental insurance coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company will reimburse you for a portion of the applicable premiums, based on the then-current cost-sharing rates for active employees, for you and your eligible dependents during the period commencing on the date of your termination of employment and ending on the earliest to occur of (a) the final day of the Severance Period, (b) the date you and/or your eligible dependents are no longer eligible for COBRA, and (c) the date you become eligible to receive medical insurance coverage from a subsequent employer (and you agree to notify the Company of such eligibility).  Notwithstanding the foregoing, if the Company determines that it cannot provide such reimbursement of premiums to you without potentially violating applicable law, the Company shall in lieu thereof provide to you a taxable monthly payment in an amount equal to a portion of the applicable premiums, based on then-current cost-sharing rates for active employees, which payment will be made regardless of whether you elect COBRA continuation coverage and will commence in the month following the month in which your termination of employment occurs and end on the earliest to occur of (x) the final day of the Severance Period, (y) the date you and/or your eligible dependents are no longer eligible for COBRA, and (z) the date you become eligible to receive medical insurance coverage from a subsequent employer (and you agree to notify the Company of such eligibility).

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

			
	
			
				(ii)
			A consolidation or merger (in one transaction or a series of related transactions) of the Company pursuant to which the holders of the Company’s equity 

		 

		

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	securities immediately prior to such transaction or series of related transactions cease to be the holders, directly or indirectly, immediately after such transaction or series of related transactions of more than 50% of the Voting Power of the entity surviving such transaction or series of related transactions;

		
			 
		

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

		
			 
		

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

		
			 
		

			
	
			
				(b)
			“Cause” means:

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

			
	
			
				(ii)
			A material and continuing diminution by the Company in the duties, authority or responsibilities of your position which causes such position to become of less responsibility or authority than immediately prior to such material and continuing diminution, provided that such change is not in connection with a termination of your employment hereunder by the Company (for purposes of clarity, if you are not the Chief Financial Officer of the combined public company following the Change of Control, you shall be deemed to have a material diminution of your duties);

		
			 
		

		 

		

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

		
			 
		

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

		
			 
		

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

		
			 
		

			
	
			
				 3.
			Section 409A.

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

			
	
			
				 4.
			General

		
			 
		

		 

		

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

		
			 
		

			
	
			
				(b)
			This letter contains the entire and exclusive agreement between the parties with respect to the subject matter hereof and is intended to supersede and replace all previous agreements, negotiations, and representations between the parties, whether written or oral, including any provision of the employment offer letter agreement between you and the Company, dated as of April 15, 2016, to the extent such letter addresses the subject matter hereof.

		
			 
		

		
			 
		

		
			 
		

		
			Sincerely,
		

		
			 
		

		
			T2 BIOSYSTEMS, INC.
		

		
			 
		

		
			 
		

		
			 
		

		
			By:__________________________
		

		
			Name:
		

		
			Title:
		

		
			 
		

		
			Acknowledged and Agreed
		

		
			 
		

		
			 
		

		
			__________________________
		

		
			Shawn Lynch
		

		
			 
		

		 

		

			5Exhibit 10.1

 

Execution Version

FIFTH AMENDMENT TO CREDIT AGREEMENT

This FIFTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of August 5, 2016, is entered into by and among PAR TECHNOLOGY CORPORATION, a Delaware corporation (“Par”), the other Loan Parties (as defined in the Credit Agreement, and, together with Par, the “Borrowers” or the “Loan Parties”) and JPMORGAN CHASE BANK, N.A. (“Lender”).

BACKGROUND

Lender and the Loan Parties are parties to a certain Credit Agreement, dated as of September 9, 2014 (as amended, restated, renewed, supplemented, extended or otherwise modified from time to time, the “Credit Agreement”) pursuant to which Lender has agreed to make certain financial accommodations available to Loan Parties from time to time pursuant to the terms and conditions thereof.

The Loan Parties have requested that Lender agree to amend the Credit Agreement, and Lender has agreed to amend the Credit Agreement, subject to the terms and conditions set forth herein.

Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement.

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each party hereby agrees as follows:

1.          Amendment to Credit Agreement. Effective as of June 29, 2016, the definition of “Initial FCCR Compliance Date” appearing in Section 1.01 of the Credit Agreement is amended and restated in its entirety to read as follows:

“Initial FCCR Compliance Date” shall mean, commencing with the calendar month ending September 30, 2016 and the last day of each monthly period thereafter, on each of which dates, Borrowers shall have delivered a Compliance Certificate demonstrating compliance with the financial covenant set forth in Section 6.13(a).

2.          Conditions Precedent. This Amendment shall be effective as of the date of receipt by Lender of this Amendment, in form and substance satisfactory to Lender in its sole discretion, duly authorized, executed and delivered by each of the Loan Parties.

3.          Provisions of General Application.

(a)          This Amendment is a Loan Document. The Credit Agreement, as supplemented hereby, shall remain in full force and effect. This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same agreement. Delivery of an executed counterpart of this Amendment by telefacsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart of this Amendment. Any party delivering an executed counterpart of this Amendment by telefacsimile or other electronic method of transmission also shall deliver an original executed counterpart of this Amendment but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment.

 

(b)          This Amendment contains the entire agreement of the parties hereto concerning the subject matter hereof and supersedes all prior oral or written discussions, proposals, negotiations or communications concerning the subject matter hereof.

(c)          After giving effect to this Amendment, each of the representations and warranties contained in this Amendment, the Credit Agreement and the other Loan Documents is true and correct in all material respects on and as of the date hereof as if made on the date hereof (except to the extent that such representation or warranty expressly relates to an earlier date) and no Default or Events of Default shall have occurred and be continuing under the Loan Documents after giving effect to this Amendment.

(d)          The Loan Parties (a) acknowledge and agree that no right of offset, defense, counterclaim, claim or objection exists in favor of any Loan Party against Lender arising out of or with respect to the this Amendment, Credit Agreement, any other Loan Document or any other arrangement or relationship between the Loan Parties and Lender, and (b) release, acquit, remise and forever discharge Lender and its affiliates and all of their past, present and future officers, directors, employees, agents, attorneys, representatives, successors and assigns from any and all claims, demands, actions and causes of action, whether at law or in equity and whether known or unknown, arising out of or with respect to this Amendment, the Credit Agreement, any other Loan Document or any other arrangement or relationship between the Loan Parties and Lender.

4.          THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

Signature pages follow

 

2

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

	 	
PAR TECHNOLOGY CORPORATION

	 	 	 
	 	
By:

	
/s/ Karen E. Sammon

	 	
Name:

	
Karen E. Sammon

	 	
Title:

	
President & CEO

	 	 	 
	 	 	 
	 	
AUSABLE SOLUTIONS, INC.

	 	 	 
	 	
By:

	
/s/ Karen E. Sammon

	 	
Name:

	
Karen E. Sammon

	 	
Title:

	
President

	 	 	 
	 	 	 
	 	
PAR GOVERNMENT SYSTEMS CORPORATION

	 	 	 
	 	
By:

	
/s/ Matthew R. Cicchinelli

	 	
Name:

	
Matthew R. Cicchinelli

	 	
Title:

	
President

	 	 	 
	 	 	 
	 	
PAR SPRINGER-MILLER SYSTEMS, INC.

	 	 	 
	 	
By:

	
/s/ Matthew J. Trinkaus

	 	
Name:

	
Matthew J. Trinkaus

	 	
Title:

	
Treasurer

	 	 	 
	 	 	 
	 	
ROME RESEARCH CORPORATION

	 	 	 
	 	
By:

	
/s/ Matthew R. Cicchinelli

	 	
Name:

	
Matthew R. Cicchinelli

	 	
Title:

	
President

3

	 	
SPRINGER-MILLER INTERNATIONAL, LLC

	 	 	 
	 	
By:

	
/s/ Matthew J. Trinkaus

	 	
Name:

	
Matthew J. Trinkaus

	 	
Title:

	
Treasurer

	 	 	 
	 	 	 
	 	
PARTECH, INC.

	 	 	 
	 	
By:

	
/s/ Karen E. Sammon

	 	
Name:

	
Karen E. Sammon

	 	
Title:

	
President

	 	 	 
	 	 	 
	 	
BRINK SOFTWARE, INC.

	 	 	 
	 	
By:

	
/s/ Karen E. Sammon

	 	
Name:

	
Karen E. Sammon

	 	
Title:

	
President

	 	 	 
	 	 	 
	 	
SPRINGER-MILLER CANADA, ULC

	 	 	 
	 	
By:

	
/s/ Matthew J. Trinkaus

	 	
Name:

	
Matthew J. Trinkaus

	 	
Title:

	
Treasurer

	 	 	 
	 	 	 
	 	
PAR CANADA, ULC

	 	 	 
	 	
By:

	
/s/ Matthew J. Trinkaus

	 	
Name:

	
Matthew J. Trinkaus

	 	
Title:

	
Treasurer

4

	 	
JPMORGAN CHASE BANK, N.A.

	 	 	 
	 	
By:

	
/s/ Marie C. Duhamel

	 	
Name:

	
Marie C. Duhamel

	 	
Title:

	
Authorized Officer

5

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