Document:

Exhibit 10.19

 

SEVERANCE AGREEMENT

 

THIS SEVERANCE AGREEMENT
(the “Agreement”) is effective as of October 16, 2012 (the “Effective Date”), by and
between Chelsea Therapeutics International, Ltd., a Delaware corporation with its principal place of
business in Charlotte, North Carolina (the “Company”), and Joseph Oliveto (“Executive”).

 

W I T N E S S E T H:

 

WHEREAS, Executive
is employed by the Company as its Interim Chief Executive Officer; and

 

WHEREAS, the parties
to this Agreement desire to establish mutually satisfactory arrangements in the event there is a termination of Executive’s
employment under circumstances provided for hereinafter.

 

NOW, THEREFORE, in
consideration of the foregoing, of the mutual promises herein, and of other good and valuable consideration, including the employment
of the Executive by the Company and the compensation to be received by the Executive from the Company from time to time, and specifically
the compensation that may be received by the Executive pursuant to Section 3 and 4 hereof, the sufficiency of which are hereby
acknowledged, the parties hereto, intending legally to be bound, hereby agree as follows:

 

 

1.Term; Salary. Unless earlier
terminated as provided herein, the term of this Agreement shall commence on the Effective Date and shall continue until
terminated as provided by Section 2 hereof (the “Term”). Subject to the provisions of this Agreement, Executive’s
employment relationship with the Company will be “at will,” meaning either party can terminate the relationship at
any time, with or without cause. Executive’s Base Salary as of the Effective Date is Three Hundred Thousand Dollars ($300,000)
per year.

 

2.Termination. This Agreement
and the Executive’s employment by the Company shall or may be terminated, as the case may be, as follows:

 

(a)        Termination by the Executive without Good Reason.
During the Term, the Executive may terminate this Agreement and his employment by the Company for any or no cause or reason thirty
(30) days after providing written notice of such termination to the Company.

 

(b)        Termination by the Executive For Good Reason.
During the Term, the Executive may terminate this Agreement and his employment by the Company for “Good Reason.” For
purposes of this Agreement, Good Reason exists when without Executive’s consent (1) the Company materially reduces
Executive’s Base Salary; (2) Executive’s principal place of work is relocated by the Company to another work site more
than 50 miles from Executive’s current work location; or (3) the Company makes a material diminution in Executive’s
title or duties, except that, following the Company’s hire of a new Chief Executive Officer, Good Reason shall not be deemed
to exist if Executive reports directly to the new Chief Executive Officer and his job responsibilities are no less than those he
held prior to being named the Company’s Interim Chief Executive Officer. Provided, however, Executive may terminate his employment
and this Agreement for Good Reason only after first providing written notice within thirty (30) days of the occurrence of the circumstances
he claims constitutes Good Reason; the Company has failed to cure those circumstances within the thirty days following the written
notice; and Executive then terminates his employment and this Agreement for Good Reason within six (6) months following the Company’s
failure to cure those circumstances.

 

    	 

    	 	

    
 

(c)        Termination by the Company. During the Term,
the Company may terminate this Agreement and the Executive’s employment with the Company upon notice to the Executive (or
his personal representative):

 

(i)at any time
and for any reason;

 

(ii)upon the death
of the Executive, in which case this Agreement shall terminate immediately; provided that, such termination shall not prejudice
any benefits payable to the Executive’s spouse or beneficiaries which are fully vested as of the date of death;

 

(iii)if the Executive
is “permanently disabled” (as defined herein), in which case this Agreement shall terminate immediately; provided that,
such termination shall not prejudice any benefits payable to the Executive, the Executive’s spouse or beneficiaries which
are fully vested as of the date of the termination of this Agreement. For purposes of this Agreement, the Executive shall be considered
“permanently disabled” when a qualified medical doctor mutually acceptable to the Company and the Executive
or the Executive’s personal representative shall have certified in writing that: (A) the Executive is unable, because of
a medically determinable physical or mental disability, to perform substantially all of the Executive’s duties, with or without
a reasonable accommodation, for more than one hundred and eighty (180) calendar days measured from the last full day of work; or
(B) by reason of mental or physical disability, it is unlikely that the Executive will be able, within one hundred and eighty (180)
calendar days, to resume substantially all business duties and responsibilities in which the Executive was previously engaged and
otherwise discharge the Executive’s duties under this Agreement; provided, however, nothing herein
shall give the Company the right to terminate Executive prior to discharging its obligations to Executive, if any, under the Family
and Medical Leave Act, the Americans with Disabilities Act, or any other applicable law;

 

(iv)upon the liquidation,
dissolution or discontinuance of business by the Company in any manner or the filing of any petition by or against the Company
under any federal or state bankruptcy or insolvency laws, which petition shall not be dismissed within sixty (60) days after filing;
provided that, such termination shall not prejudice the Executive’s rights as a stockholder or a creditor of the Company;
or

 

(v)For “Cause”
(as defined herein). “Cause” shall be determined by the Company’s Board of Directors (the “Board”)
by a majority vote without the participation of the Executive in such vote and shall mean Executive’s:

 

(A)Conviction or
plea of guilt or no contest to any felony or any crime involving moral turpitude or dishonesty;

 

    	 

    	 	

    
 

(B)Commission of
a fraud or act of dishonesty against the Company as determined by the Board in good faith that causes or is likely to cause material
harm to the Company;

(C)Willful breach
of material provisions of the Company’s policies as reasonably determined by the Board that causes or is likely to cause
material harm to the Company;

 

(D)Intentional damage
to the Company’s property as reasonably determined by the Board that causes or is likely to cause material harm to the Company;

 

(E)Material breach
of this Agreement or any other agreement between Executive and the Company as reasonably determined by the Board that causes or
is likely to cause material harm to the Company; or

 

(F)Failure or refusal
in a material respect to follow the reasonable policies of the Company or directions from the Board or to carry out the duties
of his position after being provided with notice of such failure and an opportunity to cure within thirty (30) days of receipt
of such notices (and satisfactory cure as determined by the Board) that, in each case, causes or is likely to cause material harm
to the Company.

 

3.Obligations
of the Company upon Termination.

 

(a)        Upon the termination
of Executive’s employment during the Term: (i) by the Executive pursuant to Subsection 2(a); or (ii) by the Company pursuant
to Subsections 2(c)(ii), (iii), (iv), or (v), the Company shall have no further obligations hereunder other than the payment of
all compensation and other benefits payable to the Executive through the date of such termination, which shall be paid on or before
the Company’s next regularly scheduled payday unless such amount is not then-calculable, in which case payment shall be made
on the first regularly scheduled payday after the amount shall become calculable.

 

 (b)       
Provided that (i) Executive’s employment is terminated by Executive for Good Reason pursuant to Subsection 2(b) or by the
Company during the Term pursuant to Subsection 2(c)(i) (where the Company would not have grounds to terminate Executive’s
employment pursuant to Subsections 2(c)(ii), (iii), (iv), or (v)); and (ii) such termination results in Executive’s incurring
a “separation from service” within the meaning of  Internal Revenue Code § 409A(2)(A) and Treasury Regulation
§ 1.409A-1(h) (“Separation from Service”); and (iii) within sixty (60) days of the date of the Separation
from Service the Executive executes and does not revoke a release agreement in a form acceptable to the Company within the time
specified by the Company at the time of the Separation from Service, then the Company shall pay the Executive his base salary in
effect as of the date of the Separation from Service (less all applicable deductions) (the “Severance Pay”)
for a period of twelve (12) months beginning on the Separation from Service (the “Severance Period”). 
The first installment of the Severance Pay will be paid on the 60th day after termination and will include severance
pay for a period from the date of termination through the payment date.  However, to the extent the Severance Pay qualifies
as a “separation pay plan” within the meaning of Treasury Regulation § 1.409A-1(m) that is not considered nonqualified
deferred compensation within the meaning of Internal Revenue Code § 409A(a), the first installment (including severance pay
for the period from the date of termination through the payment date) will be paid as soon as possible following the end of the
revocation period following the execution of the release referred to above.  The remaining installments will be paid in semi-monthly
installments or as otherwise provided for in accordance with the Company’s normal payroll practices for its employees. 
If Executive dies prior to receiving any or all of the payments to which he is due under this Section 3, then such remaining
payments shall be payable to his estate with no change in the time or form of payment.  No provision of this Agreement is
intended to reduce or eliminate any benefits, including post-termination benefits and payments, to which Executive would otherwise
be entitled under the Company’s employee benefits practices, policies or plans.

 

    	 

    	 	

    

 

(c)         Equity
Vesting and Exercise. If Executive’s employment is terminated by Executive for Good Reason pursuant to Subsection 2(b)
or by the Company during the Term pursuant to Subsection 2(c)(i) (where the Company would not have grounds
to terminate Executive’s employment pursuant to Subsections 2(c)(ii), (iii), (iv), or (v)),
all of the Executive’s stock options, stock awards and other grants of equity compensation shall become fully vested and
will remain exercisable until the end of the Severance Period (not to exceed twelve (12) months following Executive’s Separation
from Service). Should the Company experience a Change in Control under the terms of the Company’s 2004 Stock Plan, all of
Executive’s stock options, stock awards and other grants of equity compensation will be treated no less favorably than any
other individuals’ stock options, stock awards and other grants of equity compensation.

 

4.Change
in Control. Subject to the terms of this Section 4 and provided that: (i) Executive’s employment
is terminated by Executive pursuant to Subsection 2(b) or the Company pursuant to Subsection 2(c)(i) within one (1) month prior
to or six (6) months following a Change in Control (as defined below) (where the Company would not have grounds to terminate Executive’s
employment pursuant to Subsections 2(c)(ii), (iii), (iv), or (v)); (ii) such termination results
in Executive’s incurring a Separation from Service; and (iii) within sixty (60) days of the date of the Separation
from Service the Executive executes and does not revoke a release agreement in a form acceptable to the Company within the time
specified by the Company at the time of the Separation from Service, then the Company shall pay
to Executive an additional six (6) months of his base salary in effect as of the date of the Separation from Service (less all
applicable deductions) (the “Additional Severance Pay”), for a total Severance Period of eighteen (18) months.
The Additional Severance Pay will be paid in semi-monthly installments or as otherwise provided for
in accordance with the Company’s normal payroll practices for its employees during the six (6) months following the twelve
(12) month Severance Period described in Subsection 3(b). 

 

A “Change in
Control” shall be deemed to have occurred upon the consummation of (i) a merger or consolidation in which the shareholders
of the Company immediately prior to the merger or consolidation cease to own at least 50% of the combined entity immediately following
the merger or consolidation; (ii) a sale of all or substantially all of the assets of the Company; or (iii) the acquisition by
any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities and Exchange Act of 1934,
as amended), of beneficial ownership of any capital stock of the Company, if, after such acquisition,
such individual, entity or group owns more than 50% of either (A) the then-outstanding common stock of the Company or (B) the combined
voting power of the then-outstanding securities of the Company entitled to vote in the election of directors.

 

    	 

    	 	

    
 

5.Excise Tax.
If the Executive on the date of Executive’s termination of employment is a “specified employee” (as defined in
Section 409A of the Internal Revenue Code of 1986, as amended, (the “Code”) and the Treasury Regulations and
other applicable guidance thereunder), notwithstanding the provisions of Sections 3 and 4, if and solely to the extent required
in order to avoid the imposition on the Executive of any excise tax under Section 409A of the Code, the payment of any severance
or other payments under Sections 3 and 4 shall not commence until, and shall be made on, the first business day after the date
that is six (6) months following the date of the Executive’s termination of employment, and in such event the initial payment
shall include a catch-up amount covering amounts that would otherwise have been paid during the six-month period following the
Executive’s termination date.

 

6.Resignation
as Officer. Upon termination of Executive’s employment hereunder for any reason by either party, Executive shall be deemed
to have resigned from all offices and positions the Executive may hold with the Company and any of the Company’s subsidiaries.

 

7.Payment
in Lieu of Notice Period. Upon the termination of this Agreement by the Executive pursuant to Subsection 2(a), the
Company may, at its sole election, pay the Executive an amount equal to Executive’s then-current Base Salary for all or any
portion of the applicable notice period required by Subsection 2(a) in lieu of all or any portion of such notice period within
thirty (30) days following Executive’s Separation from Service.

 

8.No Deferral
and No Acceleration. Deferral or acceleration of any payment contemplated by this Agreement which is subject to Section 409A
of the Code is strictly prohibited unless specifically permitted by Section 409A of the Code and the Treasury Regulations and other
applicable guidance thereunder.

 

9.Section
409A Provisions. To the fullest extent permitted by law, each payment hereunder shall be treated as a right to a series of
separate payments and not a single payment for purposes of Section 409A and the Treasury Regulations thereunder, including §
1.409A-2(b)(2)(iii). To the maximum extent permitted under Section 409A, the payments described in Section 3 and 4 are
intended to qualify as short-term deferrals meeting the requirements of Treas. Reg. § 1.409A-1(b)(4)) and as involuntary severance
meeting the requirements of Treas. Reg. § 1.409A-1(b)(9)(iii). To the extent applicable, the parties hereto intend that this
Agreement comply with Section 409A and all guidance or regulations thereunder, including without limitation compliance with
all applicable exemptions from Section 409A. The parties hereby agree that this Agreement shall at all times be construed
and operated in a manner to comply with Section 409A and the Treasury Regulations and other guidance thereunder.

 

10.Notices.
All notices, requests, consents, approvals, and other communications to, upon, and between the parties shall be in writing and
shall be deemed to have been given, delivered, made, and received when: (a) personally delivered; (b) deposited for next day delivery
by Federal Express, or other similar overnight courier services; or (c) three (3) days after being sent or mailed by certified
mail, postage prepaid and return receipt requested, addressed to the Company at its principal office and to the Executive at his
address shown on the Company’s records.

 

11.Effect. This Agreement
shall be binding on and inure to the respective benefit of the Company and its successors and assigns and the Executive and his
personal representatives.

 

    	 

    	 	

    
 

12.Entire Agreement. This
Agreement (inclusive of any agreement regarding confidentiality, intellectual property rights, non-competition or non-solicitation
between Executive and the Company) constitutes the entire agreement between the parties with respect to the matters set forth herein
and supersedes all prior agreements and understandings between the parties with respect to the same.

 

14.Severability. The invalidity
or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision.

 

15.Amendment and Waiver.
No provision of this Agreement, including the provisions of this Section, may be amended, modified, deleted, or waived in any manner
except by a written agreement executed by the parties.

 

16.No Assignment and Non-Transferability.
Neither this Agreement nor any interest herein may be assigned by the Executive without the consent of the Company. To the extent
this Agreement contains payments which are subject to Section 409A, the Executive’s rights to such payments are not subject
to assignment, setoff, anticipation, alienation, sale, transfer, pledge, encumbrance, attachment or garnishment and, where applicable,
may only be transferred by will or the laws of descent and distribution.

 

17.Governing Law. This Agreement
will be governed by and construed according to the laws of the State of North Carolina.

 

18.Consent to Jurisdiction and
Venue. Each of the parties agrees that any suit, action, or proceeding arising out of this Agreement may be instituted against
it in the state or federal courts located in Mecklenburg County, North Carolina. Each of the parties hereby waives any objection
that it may have to the venue of any such suit, action, or proceeding, and each of the parties hereby irrevocably consents to the
personal jurisdiction of any such court in any such suit, action, or proceeding.

 

19.Counterparts. This Agreement
may be executed in more than one counterpart, each of which shall be deemed an original, and all of which shall be deemed a single
agreement.

 

20.Headings. The headings
herein are for convenience only and shall not affect the interpretation of this Agreement.

 

[Signature Page Follows.]

  

    	 

    	 	

    

  

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the day and year first above written.

 

 

COMPANY:

 

CHELSEA THERAPEUTICS INTERNATIONAL, LTD

 

 

By: /s/ Michael Weiser

Printed Name: Michael
Weiser

Title: Chairman

 

 

 

EXECUTIVE:

 

/s/ Joseph Oliveto

Joseph OlivetoADDENDUM

THIS ADDENDUM
("Addendum"), dated as of the 15th day of October, 2012 (the "Effective Date"), is
attached to and made a part of the Employment Agreement by and between Bioanalytical Systems, Inc. (the "Company")
and Jacqueline M. Lemke ("Employee"), dated April 9, 2012 (the "Agreement"). In the event of
any inconsistency between the terms and conditions set forth in this Addendum and the terms and conditions set forth in the Agreement,
or any supplement, attachment or other addendum thereto, or in any subsequent agreement (unless explicitly agreed to in writing
by both of the parties), the terms and conditions set forth in this Addendum shall control and supersede such inconsistent terms
and conditions to the extent of such inconsistency.

 

TERMS AND CONDITIONS

		1.	Interim President and Chief Executive Officer. Beginning
on July 5, 2012, Employee shall also serve as the Interim President and Chief Executive Officer of the Company with such duties
as shall be provided in the Bylaws of the Company or assigned to her by the Board.  At any time during which Employee
continues to be Interim President and Chief Executive Officer of the Company, she shall have full responsibility and decision-making
authority for the day-to-day operations of the Company's business, subject to the general control of the Board.  On or
prior to February 4, 2013, the Board shall meet to review Employee's performance as Interim President and Chief Executive Officer
and her achievement of performance goals to be established by the Board. Based on this review, the Board will name the Employee
as President and CEO or appoint a person other than the Employee as President and CEO. If the Board names the Employee as
President and CEO, the Board will enter into a new employment contract with the Employee. If the Company
removes Employee from the position of Interim President and Chief Executive Officer and elects a person other than Employee as
President and Chief Executive Officer, the removal of Employee from the position of Interim President and Chief Executive Officer
without removing her as Chief Financial Officer shall not constitute "good reason" for any purpose under the Agreement.
If the Board decides to appoint someone other than Employee as permanent President and Chief Executive Officer and Employee provides
notice of her resignation "without cause" within thirty (30) days of such appointment, the Company shall pay the Employee
as compensation for loss of office (a) six (6) months of her annual salary at the Employee’s then current salary in equal
monthly installments over the six month period following the date Employee resigns, (b) all vacation accrued as of the date Employee
resigns; (c) an amount equal to her monthly COBRA premiums for a period of six (6) months from the effective date of Employee's
resignation; and (d) a pro-rated portion of (i) the EBITDAR Bonus and (ii) any other bonus to which Employee is entitled.

 

		2.	Bonus.

 

		a.	As
long as Employee continues to serve as Interim President and Chief Executive Officer on such date, Employee will receive a cash
bonus of $20,000 on the first regular pay date of the Company following each of October 15, 2012 and January 5, 2013. If Employee's
employment is terminated without cause, or if the Employee resigns for good reason, dies or becomes disabled prior to the date
on which the cash bonus pursuant to this section is to be paid, Employee shall receive a pro-rated portion of the cash bonus for
the period from July 5, 2012 until the date on which her employment is so terminated. 

	
         

 

 

    	2

    	 

    

 

 

		b.	During the Employment Period, Employee will receive a cash bonus, the “EBITDAR Bonus”, in
an amount equal to two percent (2%) of consolidated earnings before interest expense, income tax expense, depreciation expense,
amortization expense and restructuring charges (“EBITDAR”) of the Company (before any payment or accrual related
to the EBITDAR Bonus), which, in the first fiscal year shall be based upon consolidated earnings from the start date through the
fiscal year end. The EBITDAR Bonus shall be paid annually on the first regular pay date of the Company, after the Board has confirmed
the amount of the Company’s EBITDAR and the EBITDAR Bonus for the relevant period. The Board shall make such confirmation
promptly upon completion of the audited consolidated financial statements of the Company for each fiscal year. If Employee's employment
is terminated without cause, or if the Employee resigns for good reason, dies or becomes disabled prior to the fiscal year end
on which the EBITDAR Bonus is calculated, Employee shall receive a pro-rated portion of the EBITDAR Bonus for the period during
which she was employed which shall be payable as described above.

  

		c.	This Section 2 of this Addendum will replace Section 1.2.3 of the Agreement in its entirety.

 

		3.	Commuting Allowance. Commencing on July 5, 2012 and continuing until such time, if
ever, that Employee relocates to West Lafayette, Indiana, Employee shall be entitled to receive a commuting allowance of $1,400.00
per month.

 

		4.	Other Benefits. During the Employment Period, Employee shall be entitled to term
life insurance of two times base salary.

 

		5.	Stock Options. On the Effective Date, Employee will receive a grant of options to
purchase 50,000 Company shares under the Company's Employee Stock Option Plan (the "Option Plan") and an option
agreement to be entered into between the Company and Employee. The exercise price of the options shall be the fair market value
of the Company's common shares on the Effective Date (determined as provided in the Option Plan) and the options will vest and
become exercisable upon achievement by Employee of certain financial performance goals established by the Board of Directors of
the Company (the "Board"), subject to the conditions set forth in the Option Plan and related agreement. The Board
will determine if Employee has met such financial performance goals no later than February 4, 2013.

 

		6.	Term. The Initial Term shall be extended for successive one year periods (the "Additional
Terms" and together with the Initial Term, the "Employment Period"), except that if either Employee or
the Company gives the other party written notice at least ninety (90) days before the end of the Initial Term or any Additional
Term, then the Agreement, including this Addendum, shall expire at the end of its then current term.

 

[Signatures Begin on Following Page]

 

    	3

    	 

    

 

 

IN WITNESS WHEREOF,
the Company and Employee have caused this Addendum to be executed as of the Effective Date.

 

 

 

THE "COMPANY"

 

BIOANALYTICAL SYSTEMS, INC.

 

 

 

By: /s/ Larry S. Boulet________________

        Larry S. Boulet,
Audit Committee Chair

 

 

 

"EMPLOYEE"

 

 

/s/ Jacqueline M. Lemke

Jacqueline
M. Lemke

 

 

    	4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}]]