Document:

October
25, 2013

 

 

VIA E-MAIL and HAND DELIVERY

 

Lori Payne, PhD. (Via Hand Delivery)

 

	 	Re:	Severance Agreement and Release of All Claims

 

Dear Lori:

 

You have indicated
that you intend to resign from your position as Vice President of Bioanalytical Services of Bioanalytical Systems, Inc. ("BASi"
or "Company"). This letter will confirm certain agreements between you and the Company concerning the resolution of all
contractual and other matters between the parties.

 

Upon your resignation,
BASi is prepared to offer you a severance package with the terms detailed below. Although you will have the full time period spelled
out in paragraph 16 below to consider this Agreement, your employment will end effective November 15, 2013. Thereafter, you will
not be entitled to any additional compensation or to participate in any of BASi's benefit plans (except as otherwise specifically
provided herein) from BASi other than what may be agreed to by the parties in the Agreement below.

 

Even if you do not
sign this Agreement, BASi will (a) pay you at your normal weekly salary through November 15, 2013; (b) pay you for any accrued
but unused vacation days in accordance with Company policy; and (c) reimburse you for previously incurred but unreimbursed business
expenses in accordance with Company policy. Unless you notify BASi of a different bank account, your final pay will be deposited
in the bank account that you have previously designated for direct deposit. Similarly, even if you do not sign this Agreement,
you will be offered benefits to which you are entitled under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”),
as modified below.

 

		A.	Terms

 

		1.	Definitions. The terms “you” and “your”
and “Payne” mean Lori Payne, and anyone who has or obtains any legal right or claims through her. “BASi”
and “Company” mean Bioanalytical Systems, Inc. and include its past and present officers, directors, employees, agents,
related corporations and entities, affiliates, principals, insurers, shareholders, attorneys, trustees, subsidiaries, predecessors,
successors and assigns, any and all employee benefit plans (and any fiduciary of such plans) sponsored by BASi. “Agreement”
means this letter agreement which contains the terms of the severance package and which includes a release of all claims arising
out of Payne's employment relationship with BASi and the termination of the employment relationship. “The Parties”
means Payne and BASi.

 

    	 

    	 

    

 

		2.	Resignation. Pursuant to this Agreement, Payne will be
deemed to have resigned her employment with BASi effective November 15, 2013 (the Effective Date). 

 

		3.	Payments and Benefits to be Provided to Payne. In exchange
for and in consideration of Payne's agreement to release all claims against BASi as described in paragraph 4 and in consideration
of the other promises contained in this Agreement, BASi agrees as follows:

 

		a.	BASi agrees to pay you a severance benefit in the form of salary continuation through the payroll
period ending January 15, 2014 ("Severance Period"), in the amount of $13,333.33 per month. Unless you notify BASi’s
payroll department of a different bank account, this amount will be deposited in the bank account that you have previously designated
for direct deposit;

 

		b.	Additionally, following the Release Effective Date, if you are eligible for and timely elect to
continue health insurance coverage under BASi's group health care program pursuant to the federal law known as COBRA, then, BASi
will reimburse you through January 15, 2014, for the amount of COBRA premiums paid by you to maintain such coverage upon presentation
by you to the Company of evidence that you have made such payments. Any month for which you receive such reimbursement from BASi
will count toward the eighteen (18) month COBRA continuation period.

 

		c.	After the period referenced in paragraph 3(b) ends, you and your family will have the option of
continuing to participate in BASi’s group health care program pursuant to COBRA for any remaining period of COBRA continuation
coverage to the extent required under COBRA, but you will be responsible for the entire premium.

 

		d.	Payne agrees that all of her stock options, including vested and unvested stock options, shall
be irrevocably terminated and of no further effect as of the termination date. Payne further agrees that she will not be eligible
for any bonuses, commissions, or other incentive compensation paid by BASi following her termination date with the exception of
bonuses earned under the Annual Incentive Bonus Program before the termination date.

 

    	 

    	 

    

 

		4.	Claims released by Payne. By signing this Agreement, Payne
unconditionally and fully releases and forever discharges BASi from (a) any and all possible claims, known or unknown, arising
out of or from her employment with BASi under any and all possible legal, equitable, tort, contract or statutory theories, including
but not limited to any claims for constructive or wrongful discharge or breach of contract, except for any claims relating to accrued
and vested rights under a retirement plan; (b) any and all claims arising on or before the date Payne signs this Agreement, including
but not limited to any charges, claims, demands or actions under Title VII of the Civil Rights Act of 1964 and the Equal Pay
Act, 42 U.S.C. § 2000e et seq., Section 1981 of the Civil Rights Act of 1866, 42 U.S.C. § 1981,
the Age Discrimination in Employment Act, the Older Workers’ Benefit Protection Act, the Americans with Disabilities Act,
42 U.S.C. § 12101 et seq., the Indiana Civil Rights Law, the Employee Retirement Income Security Act, 29 U.S.C.
§ 1001 et seq., the United States Constitution, the Indiana Constitution, any and all amendments to said statutes,
and any other federal, state or local statute or law, ordinance or regulation, dealing in any way with employment or employment-related
benefits and all claims for costs and attorneys’ fees; and (c) all claims Payne may have against BASi arising out of Payne's
employment and/or termination of employment with BASi, including any claims arising out of her Employment Agreement dated March
15, 2012. Payne agrees and understands that any claims she may have under the aforementioned laws, statutes or any other federal,
state or local law, ordinance, rule or regulation are effectively waived by this Agreement. Payne understands that the signing
of this Agreement prevents her from making any further claims against BASi in connection with her employment and the termination
of her employment with BASi. Payne agrees to give up, release and waive all claims against BASi and not to bring any lawsuits against
BASi relating to the claims she has given up, released and waived, nor will she allow any suit to be brought on her behalf. BASi
represents that it is not aware of the existence of any claims it may have against Payne and has not discussed the possibility
of litigation against her. BASi affirms and acknowledges that it is unaware of any potential claims it may have against Payne and
has no present intention of asserting any such claims against her once the agreement is signed.

 

		5.	No Admission of Liability; Waiver. This
Agreement shall not in any way be construed as an admission by BASi that it has acted wrongfully with respect to Payne or any other
person, or that Payne has any rights whatsoever against BASi. Payne waives any right or claim of reinstatement to employment with
BASi and agrees not to seek further employment with BASi. If Payne does seek employment with BASi, BASi is under no obligation
to consider her for employment. 

 

		6.	Acknowledgement. Payne acknowledges that she is not entitled
to any of the payments and benefits listed in paragraph 3(a)-(b) of this Agreement unless she signs this Agreement and does not
revoke it within the revocation period stated in paragraph 16 below.

  

    	 

    	 

    

 

		7.	Non-Disparagement. In consideration of the promises made
in this Agreement, Payne and BASi each agrees not to make any false, negative or disparaging remarks or comments to any person
and/or entity about the other party to this Agreement, nor shall Payne or BASi make any statement that may subject the other party
to potential embarrassment, humiliation or any other negative consequence. In addition, Payne agrees that she shall not make any
public statement, including but not limited to, any statement to the media or to BASi employees, regarding the termination of her
employment with BASi with the exception of stating that she has resigned to pursue other opportunities.

 

		8.	Consultation with Attorney. Payne agrees that she has
read this Agreement and the releases contained herein, that she understands all of the terms hereof, that she has not been coerced,
threatened or intimidated into signing this Agreement, and that she executes this Agreement voluntarily and with full knowledge
of its meaning and consequences and that she has had sufficient opportunity to consult with her attorney regarding this Agreement.
Payne further acknowledges that BASi hereby advises her that she should consult with an attorney before executing this Agreement.

 

		9.	Violation of Agreement and Severability. Payne agrees
that if she breaches any obligation set forth in this Agreement, BASi shall cease all payments to her, as described in this Agreement,
and it shall also cease providing all benefits to her, as described in this Agreement. Payne also understands and agrees that in
the event that this Agreement is ever held to be invalid or unenforceable, in whole or in part, as to any particular type of claim
or charge or as to any particular circumstances, this Agreement shall remain fully valid and enforceable as to all other claims,
charges and circumstances.

 

		10.	Confidentiality and Non-Solicitation. Payne agrees and
understands that she remains subject to the Confidentiality and Non-Solicitation obligations stated in Sections 3.1 and 3.3 of
her Employment Agreement dated March 15, 2012.

 

		11.	Payne's Representations. Payne represents and warrants
that in the making and execution of this Agreement, she is not relying on any representation, statement, or assertion of fact or
opinion made by any agent, attorney, employee, or representative of the persons, parties, or corporations being released herein,
and she hereby waives any right to rely upon all prior agreements and/or oral representations made by any agent, attorney, employee,
or representative of such persons, parties, or corporations even though made for the purpose of inducing her to enter into this
Agreement.

 

		12.	Return of BASi’s Property. Payne hereby represents
and warrants that she will return to BASi all of BASi’s property that is in her possession or control as of the Effective
Date. This includes, but is not limited to, keys, credit cards, phone cards, cellular telephones, pages, directories, computer
hardware and software, books, documents, memoranda, and all other records, and copies thereof.

 

		13.	Cooperation and Transition Assistance. Payne agrees that
she will be available to provide reasonable assistance to BASi with transitional matters relating to her former duties with BASi,
without additional compensation, for the Severance Period discussed in paragraph 3(a), above. 

 

    	 

    	 

    

 

		14.	Miscellaneous. The Parties agree that this Agreement is
deemed made and entered into in the State of Indiana and in all respects shall be interpreted, enforced and governed under the
laws of the State of Indiana, unless otherwise preempted by federal law. Jurisdiction and venue for litigation of any dispute,
controversy, or claim arising out of or in connection with this Agreement shall lie exclusively in the federal or state courts
in Tippecanoe County, Indiana, and the Parties hereby consent to service of process from said courts. This Agreement shall inure
to the benefit of and may be enforced by, and shall be binding on The Parties and their heirs, executors, administrators, personal
representatives, assigns, and successors in interest. The language of all parts of this Agreement shall be in all cases construed
as a whole, according to its fair meaning, and not strictly for or against the drafter.

 

		15.	Disclosures by Payne. As a condition precedent to her
eligibility for the severance benefits described in paragraph 3(a)-(b) above, Payne affirms
and attests that she has disclosed during the course of her employment all employment and other agreements she has signed on behalf
of BASi in her capacity as Vice President of Bioanalytical Services to appropriate Company officials.

 

		16.	Time to Consider this Agreement. Payne understands that
she has twenty-one (21) days from the date of delivery of this Agreement to consider the terms of this Agreement. Payne understands
that she may sign this Agreement at any time during the twenty-one (21) day period. Payne understands that she may revoke this
Agreement if she so chooses until seven (7) days after the date of execution. Payne further understands that this Agreement will
not become effective or enforceable and that BASi’s obligations in paragraph 3 of this Agreement to make payments and provide
benefits will not become effective or enforceable until seven (7) days from the date of Payne’s execution of this Agreement
and provided that the Agreement is not revoked during such seven day period ("Release Effective Date").

 

 

	 	Sincerely,	 
	 	Bioanalytical Systems, Inc.	 
	 	 	 
	 	 	 
	 	Jacqueline Lemke	 
	 	 	 
	 	President & CEO	 

 

    	 

    	 

    

 

My signature below represents my unconditional
acceptance of all terms and conditions contained in this Agreement.

 

 

 

 

	 	 	 	 
	Lori Payne, Ph.D.	 	 	Date
	 	 	 	 
	 	 	 	 
	 STATE OF INDIANA	)	 	 
	 	)  SS:	 	 
	COUNTY OF _________	)	 	 
	 	 	 	 
	Subscribed to and sworn before me, a Notary Public, in and for said County and State, this _____ day of                     , 2013.

 

 

	 	 	 
	 	 	Signature
	 	 	 
	 	 	 
	 	 	Printed                                      Notary Public
	 	 	 
	 	 	 
	My Commission Expires:	 	County of Residence:ENTREPRENEUER GROWTH CAPITAL
	 
	
        505 PARK AVENUE NEW YORK, NY 10022

         

         

 

 

 

January 29, 2014

 

 

 

Jacqueline M. Lemke

Vice President Finance

Chief Financial Officer

Bioanalytical Systems lnc.

Purdue Research Park

2701 Kent A venue

West Lafayette, IN 47906

 

 

 

Re:      Waiver- Net Worth Covenant

 

Dear Ms. Lemke:

 

We
refer you to that certain Loan and Security Agreement between Bioanalytical Systems, Inc. ("Borrower") and Entrepreneur
Growth Capital, LLC ("Lender") dated on or about January 11, 2010 (the "Agreement").
All capitalized terms used herein and not otherwise defined shall have the meaning ascribed to them in the Agreement.

 

This letter shall serve
to confirm that Lender hereby waives Borrower's compliance with the tangible net worth covenant set forth in Section 4.15
of the Loan Agreement for the period ending December 31, 2013. Borrower understands that the
waiver set forth herein shall apply only for the stated period.

 

Borrower
agrees to pay Lender a fee in the amount of $500.00 as consideration for the aforesaid waiver
and documentation of this letter agreement, which fee will be
automatically charged to Borrower's revolving loan account.

 

Except
as hereby or heretofore amended or supplemented, the Agreement shall remain in full force
and effect in accordance with its original terms and conditions.

 

If
the foregoing correctly sets forth you and our understanding, please execute the enclosed
copy of this letter in the spaces provided below and return such fully executed copy to the
undersigned as soon as possible.

 

    	Page 1 of 2

    	 

    

 

 

This
Amendment may be executed in one or more counterparts, each of which when so executed shall be deemed to be an original, but all
of which when taken together shall constitute one and the same instrument. An executed facsimile of this Amendment shall be deemed
to be a valid and binding agreement between the parties hereto.

 

Very tru1y yours,

 

ENTREPRENEUR GROWTH

CAPITALLLC

as Lender

 

 

By: _____________________________

Name:Charles L. Bert

Title:  Vice President

 

 

 

 

	   BJOANALYTICAL SYSTEMS, INC.
	   as Borrower
	 	 
	 	 
	By:  _____________________________
	Name:	Jacqueline M. Lemke
	Title:	Vice President - Finance
	        	Chief Financial Officer

 

    	Page 2 of 2

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