Document:

exv10w19

Exhibit
10.19

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of July 8, 2010,
by and between NuPathe Inc. (the “Employer”), a Delaware corporation, and Ezra H. Felker (the
“Employee”), but is effective as of the effective date of the registration statement relating to
the Employer’s initial public offering (the “Effective Date”).

Recitals

     WHEREAS, the Employer and the Employee previously entered into that certain Change of Control
Agreement dated June 15, 2009 (the “Change of Control Agreement”); and

     WHEREAS, the Employer and the Employee desire to terminate the Change of Control Agreement and
enter into this Agreement; and

     WHEREAS, this Agreement shall supersede and replace the Change of Control Agreement in all
respects; and

     WHEREAS, the Employer desires to continue to employ the Employee and the Employee desires to
continue to be employed by the Employer upon the terms and conditions hereinafter set forth.

     NOW, THEREFORE, in consideration of the premises and covenants set forth herein, and
intending to be legally bound hereby, the parties to this Agreement hereby agree as follows:

     1. Duties. The Employer agrees that the Employee shall continue to serve as Vice President,
Business Development of the Employer. The Employee shall report to the Chief Executive Officer of
the Employer. The Employee agrees to be so employed by the Employer and to devote his best efforts
and substantially all of his business time to advance the interests of the Employer and to perform
such executive, managerial, administrative and financial functions as are required to develop the
Employer’s business and to perform other duties assigned to the Employee by the Chief Executive
Officer that are consistent with the Employee’s position. Nothing set forth herein shall prohibit
the Employee from engaging in personal investing activities. The Employee shall be permitted to
serve on the boards of directors of other entities whose businesses are not competitive with the
Employer in accordance with Employer policy.

     2. Term. This Agreement is effective as of the Effective Date, and, from and after the
Effective Date, will govern the Employee’s employment by the Employer until that employment ceases
in accordance with the terms of this Agreement.

     3. Compensation.

          (a) Salary. The Employee shall be paid a base salary at the annual rate of $225,000 (the
“Base Salary”) in accordance with the Employer’s regular payroll practices. The Board of Directors
of the Employer (the “Board”) or the Compensation Committee of the Board (the “Compensation
Committee”) shall review the Base Salary for appropriate increases at least annually at the end of
each calendar year pursuant to the normal performance review policies for senior level executives.

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          (b) Incentive Compensation. The Employee shall participate in short-term and long-term
incentive programs, including equity compensation programs, established by the Employer for its
senior level executives generally, at levels determined by the Board or the Compensation Committee.
The Employee’s incentive compensation shall be subject to the terms of the applicable plans and
shall be determined based on the Employee’s individual performance and Employer performance as
determined by the Board or the Compensation Committee. Any annual incentive compensation earned by
the Employee shall be paid on or after January 1, but not later than March 15 of the fiscal year
following the fiscal year for which the annual incentive compensation is earned.

          (c) Retirement and Welfare Benefits. The Employee shall participate in employee retirement
and welfare benefit plans made available to the Employer’s senior level executives as a group or to
its employees generally, as such retirement and welfare plans may be in effect from time to time
and subject to the eligibility requirements of the plans. Nothing in this Agreement shall prevent
the Employer from amending or terminating any retirement, welfare or other employee benefit plans
or programs from time to time as the Employer deems appropriate.

          (d) Reimbursement of Expenses; Vacation. The Employee shall be reimbursed for all normal
items of travel, entertainment and miscellaneous business expenses reasonably incurred by the
Employee on behalf of the Employer, provided that such expenses are documented and submitted in
accordance with the reimbursement policies of the Employer as in effect from time to time. The
Employee shall be entitled to vacation and sick leave in accordance with the Employer’s vacation,
holidays and other pay for time not worked policies

     4. Termination.

          (a) Death. This Agreement shall automatically terminate effective as of the date of the
Employee’s death, in which event the Employer shall have no further obligation or liability under
this Agreement except that the Employer shall pay to the Employee’s estate: (i) any portion of the
Employee’s Base Salary for the period up to the Employee’s date of death that has been earned but
remains unpaid; and (ii) any benefits that have been earned, accrued and are due to the Employee
under the terms of the employee benefit plans of the Employer, which benefits shall be paid in
accordance with the terms of those plans; and (iii) the amount of the Earned Bonus as defined
herein. The Earned Bonus shall be paid at the same time bonuses are paid to employees of the
Employer generally in accordance with the terms of the Employer’s annual bonus plan.

          (b) Total Disability. In the event of the Employee’s Total Disability (as defined below), the
Employer may terminate the employment of the Employee, to the extent permitted by law, immediately
upon written notice to the Employee, in which event, the Employer shall have no further obligation
or liability under this Agreement except that the Employer shall pay to the Employee: (i) any
portion of the Employee’s Base Salary for the period up to the date of termination that has been
earned but remains unpaid; (ii) any benefits that have been earned, accrued and are due to the
Employee under the terms of the employee benefit plans of the Employer, which benefits shall be
paid in accordance with the terms of those plans; and (iii) the amount of the Earned Bonus as
defined herein. The Earned Bonus shall be

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paid at the same time bonuses are paid to employees of the Employer generally in accordance
with the terms of the Employer’s annual bonus plan.

          (c) Termination by the Employer for Cause. Subject to any applicable right to cure under
Section 4(f)(i), the Employer may terminate the Employee’s employment at any time, effective
immediately, for Cause upon written notice to the Employee. In the event that the Employer
terminates the Employee pursuant to this Section 4(c), the Employer shall have no further
obligation or liability under this Agreement, except that the Employer shall pay to the Employee:
(i) any portion of the Employee’s Base Salary for the period up to the Termination Date that has
been earned but remains unpaid; and (ii) any benefits that have been earned, accrued and are due to
the Employee under the terms of the employee benefit plans of the Employer, which benefits shall be
paid in accordance with the terms of those plans.

          (d) Termination by the Employer Without Cause; Termination by the Employee for Good Reason.
The Employer may terminate the employment of the Employee for any reason other than those specified
in Section 4(b) or 4(c), including, without limitation, on or after a Change of Control, upon
thirty (30) days written notice (or Base Salary and benefit continuation in lieu of such thirty
(30) day notice) to the Employee. In addition, the Employee may terminate his employment at any
time, including, without limitation, on or after a Change of Control, upon written notice to the
Employer for Good Reason in accordance with the requirements of Section 4(e)(v).

In the event the Employer terminates the employment of the Employee for any reason other than those
specified in Section 4(b) or 4(c) hereof or the Employee terminates his employment for Good Reason,
the Employer shall pay to the Employee:

          (i) any portion of the Employee’s Base Salary for the period up to the Termination Date that
has been earned but remains unpaid;

          (ii) any benefits that have been earned, accrued and are due to the Employee under the terms
of any employee benefit plans of the Employer, which benefits shall be paid in accordance with the
terms of those plans; and

          (iii) subject to the execution and nonrevocation by the Employee of a release satisfactory to
the Employer and on reasonable, market level terms (the “Release”) and the Employee’s compliance
with all terms and provisions of this Agreement that survive the termination of the Employee’s
employment by the Employer, the Employer shall provide the Employee with the payments and benefits
set forth below. Notwithstanding any provision of this Agreement to the contrary, in no event
shall the timing of the Employee’s execution of the Release, directly or indirectly result in the
Employee designating the calendar year of payment and to the extent payment could be made in more
than one taxable year, payment shall be made in the later taxable year.

               (A) Severance in an amount equal to 0.5 times the Employee’s Base Salary at the rate in effect
at the time of the Employee’s termination. The severance amount shall be paid in equal monthly
installments in accordance with the Employer’s regular payroll

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practices over a period of six (6) months, beginning within sixty (60) days following the
Termination Date;

               (B) the amount of the Earned Bonus which shall be paid at the same time bonuses are paid to
employees of the Employer generally in accordance with the terms of the Employer’s annual bonus
plan;

               (C) continued medical and dental coverage at the same level in effect at the Termination Date
(or generally comparable coverage) for a period of twelve (12) months following the Termination
Date for himself and, where applicable, his spouse and dependents, at the same premium rates as may
be charged from time to time for employees generally, as if the Employee had continued in
employment during such twelve (12) month period. The COBRA health care continuation period shall
run concurrently with the foregoing twelve (12) month period; and

               (D) vesting of all outstanding unvested stock options and other equity-based awards held by
the Employee as of the Termination Date that would have vested had the Employee remained employed
until the end of the calendar quarter in which the Termination Date occurs; provided, further, that
any outstanding unvested stock option or other equity-based award that vests based upon attainment
of performance criteria (each, a “Performance Award”) shall vest upon termination of the Employee’s
employment in accordance with the terms of the award agreement evidencing such Performance Award.

          (e) Effect of a Change of Control. Notwithstanding any provision of Section 4(d) to the
contrary, if the Employee’s employment is terminated pursuant to Section 4(d) within the ninety
(90) day period preceding a Change of Control or on or within twelve (12) months following a Change
of Control, the Employee shall be entitled to the same payments and benefits described in Section
4(d) above, subject to execution and nonrevocation of the Release and the Employee’s compliance
with all terms and provisions of this Agreement that survive the termination of the Employee’s
employment by the Employer; provided that (i) the severance multiplier in Section 4(d)(iv)(A) above
shall be 1.0 times the Employee’s Base Salary at the rate in effect at the time of the Employee’s
termination plus 1.0 times the Employee’s targeted annual bonus for the year in which the
Termination Date occurs, without regard to whether the relevant Employee and Employer goals have
been achieved, (ii) the period of continued medical and dental coverage in Section 4(d)(iv)(B)
above shall be twelve (12) months following the Termination Date and (iii) one hundred percent
(100%) of all outstanding unvested stock options and other equity-based awards held by the Employee
as of the Termination Date shall become fully vested and exercisable (to the extent applicable) as
of the Termination Date; provided, further, that any Performance Award shall vest upon termination
of the Employee’s employment in accordance with the terms of the award agreement evidencing such
Performance Award.

          Notwithstanding anything set forth in this Agreement to the contrary, if any payment or
benefit, including severance benefits, that the Employee would receive from the Employer in
connection with a Change of Control or otherwise (“Payment”) would (i) constitute a “parachute
payment” within the meaning of section 280G of the Code and (ii) but for this sentence, be subject
to the excise tax imposed by section 4999 of the Code (the “Excise Tax”), then such Payment shall
be reduced to the Reduced Amount. The “Reduced Amount” shall be

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either (A) the largest portion of the Payment that would result in no portion of the Payment being
subject to the Excise Tax or (B) the largest portion, up to and including the total, of the
Payment, whichever amount, after taking into account all applicable federal, state and local
employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal
rate), results in the Employee’s receipt, on an after-tax basis, of the greater amount of the
Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax.
If a reduction in payments or benefits (or a cancellation of the acceleration of vesting of stock
options or equity awards) constituting “parachute payments” is necessary so that the Payment equals
the Reduced Amount, such reduction and/or cancellation of acceleration shall occur in the order
that provides the maximum economic benefit to the Employee. In the event that acceleration of
vesting of a stock option or equity award is to be reduced, such acceleration of vesting also shall
be canceled in the order that provides the maximum economic benefit to the Employee.

          The Employer shall appoint a nationally recognized accounting firm with appropriate subject
matter expertise to make the determinations required under this Section 4(e).

          The Employer shall bear all expenses with respect to the making of the determinations by such
accounting firm required to be made under this Section 4(e). The accounting firm engaged to make
the determinations under this Section 4(e) shall provide its calculations, together with detailed
supporting documentation, to the Employer and the Employee as soon as practicable after the date on
which the Employee’s right to a Payment is triggered (if requested at that time by the Employer or
the Employee) or such other time as requested by the Employer or the Employee. If the accounting
firm determines that no Excise Tax is payable with respect to a Payment, either before or after the
application of the Reduced Amount, it shall furnish the Employer with an opinion reasonably
acceptable to the Employee that no Excise Tax will be imposed with respect to such Payment. Any
good faith determinations of the accounting firm made under this Section 4(e) shall be final,
binding, and conclusive upon the Employer and the Employee.

          (f) Definitions.

	 	(i)	 	“Cause” shall be deemed to exist with respect
to any termination of employment by the Employer for any of the
following reasons:

	 	(1)	 	the Employee’s engagement in
conduct constituting breach of fiduciary duty, gross negligence
or willful misconduct relating to the Employer or the
performance of the Employee’s duties; provided that no act or
failure to act shall be deemed “willful” unless done, or omitted
to be done, by the Employee not in good faith or without
reasonable belief that the Employee’s action or omission was in
the best interest of the Employer;
	 
	 	(2)	 	the Employee’s substantial and
continued failure to perform the Employee’s material duties in a
satisfactory manner after written notice specifying the areas in
which

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	 	 	 	performance is unsatisfactory and, if subject to cure, the
Employee’s failure to perform within thirty (30) days after
such notice;
	 
	 	(3)	 	the Employee’s commission of any
act of fraud with respect to the Employer;
	 
	 	(4)	 	the Employee’s violation of any
covenants or agreements in favor of the Employer regarding
confidentiality, non-competition and/or non-solicitation; or
	 
	 	(5)	 	the Employee’s conviction of a
felony or a crime involving moral turpitude under the laws of
the United States or any state or political subdivision thereof.

	 	 	 	Any notice required to be provided to the Employee under clause (2)
of this definition of “Cause” shall state that failure to
cure within the applicable period will result in termination for
Cause.
	 
	 	(ii)	 	“Change of Control” shall have the same
meaning ascribed to such term under the Employer’s 2010 Omnibus Equity
Compensation Plan, as in effect on the date hereof and as it may be
amended from time to time.
	 
	 	(iii)	 	“Code” shall mean the Internal Revenue Code of
1986, as amended, and the regulations promulgated thereunder.
	 
	 	(iv)	 	“Earned Bonus” means the actual annual bonus
earned by the Employee for the fiscal year in which the Employee’s
Termination Date occurs; pro rated to reflect the portion of the fiscal
year during which the Employee was employed by the Employer, determined
by multiplying the full year bonus that would otherwise have been
payable to the Employee based upon the achievement of applicable
performance objectives by a fraction, the numerator of which is the
number of days during which the Employee was employed by the Employer
in the year of termination and the denominator of which is three
hundred sixty-five (365).
	 
	 	(v)	 	“Good Reason” shall be deemed to exist with
respect to any termination of employment by the Employee for any of the
following reasons:

	 	(1)	 	prior to or on or after a Change
of Control, a material reduction in the Employee’s duties and
responsibilities, which for purposes of this Agreement means the
assignment to Employee of any duties or responsibilities which
are materially inconsistent with or adverse to the

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	 	 	 	Employee’s then current duties, responsibilities, positions
and/or titles with the Employer;
	 
	 	(2)	 	a material reduction of the
Employee’s then-current base salary or target bonus opportunity;
	 
	 	(3)	 	the requirement that the Employee
regularly report to work at a location that is more than fifty
(50) miles from the location of the Employee’s employment as of
the Effective Date;
	 
	 	(4)	 	a material breach of this
Agreement by the Employer; or
	 
	 	(5)	 	in the event of the assignment of
this Agreement to a third party, the failure of the assignee or
successor entity to agree to be bound to the terms of this
Agreement;

	 	 	 	provided, however, that for any of the foregoing to
constitute Good Reason, the Employee must provide written
notification of his intention to resign within ninety (90) days after
the Employee first knows or first has reason to know of the
occurrence of any such event or condition, and, the Employer must
have thirty (30) business days from the date of receipt of such
notice to effect a cure of the event or condition constituting Good
Reason. If the Employer fails to effect a cure of the event or
condition constituting Good Reason, the Employee must actually resign
from employment within thirty (30) days following the expiration of
the foregoing cure period. In the event of a cure of such event or
condition constituting Good Reason by the Employer, such event or
condition shall no longer constitute Good Reason.
	 
	 	(vi)	 	“Termination Date” shall mean the date on which
the Employee’s employment with the Employer terminates in accordance
with the applicable provisions of this Agreement.
	 
	 	(vii)	 	“Total Disability,” shall mean an illness,
incapacity or a mental or physical condition that renders the Employee
unable, despite the provision, if requested, of a reasonable
accommodation as that term is defined in the Americans with
Disabilities Act, to perform the essential functions of his employment
position for a continuous period of six (6) months or more.

          (g) No Mitigation. The Employee shall not be required to mitigate the amount of any payment
provided for in this Section 4 by seeking other employment or otherwise, nor shall the amount of
any payment or benefit provided for in this Section 4 be reduced by any compensation earned by the
Employee as the result of employment by another employer or self-employment, by retirement
benefits, by offset against any amounts (other than loans or advances

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to the Employee by the Employer) claimed to be owed by the Employee to the Employer, or
otherwise.

     5. Non-Disclosure; Non-Competition and Prior Agreements.

          (a) Non-Disclosure. The Employee acknowledges that in the course of performing services for
the Employer, the Employee will obtain knowledge of the Employer’s business plans, products,
processes, software, know-how, trade secrets, formulas, methods, models, prototypes, discoveries,
inventions, improvements, disclosures, names and positions of employees and/or other proprietary
and/or confidential information (collectively the “Confidential Information”). The Employee agrees
to keep the Confidential Information secret and confidential and not to publish, disclose or
divulge to any other party, and the Employee agrees not to use any of the Confidential Information
for the Employee’s own benefit or to the detriment of the Employer without the prior written
consent of the Employer, whether or not such Confidential Information was discovered or developed
by the Employee. The Employee also agrees not to divulge, publish or use any proprietary and/or
confidential information of others that the Employer is obligated to maintain in confidence.

          (b) Non-Competition. The Employee agrees that, during his employment by the Employer
hereunder and for an additional period of six (6) months after the termination of the Employee’s
employment hereunder for any reason, except for a termination in connection with a Change of
Control pursuant to Section 4(e) in which case the foregoing six (6) month period shall instead be
the twelve (12) month period after the termination of the Employee’s employment, neither the
Employee nor any corporation or other entity in which the Employee may be interested as a partner,
trustee, director, officer, employee, agent, shareholder, lender of money or guarantor, or for
which he performs services in any capacity (including as a consultant or independent contractor)
shall at any time during such period be engaged, directly or indirectly, in any Competitive
Business (as that term is hereinafter defined). The Employee shall not solicit or, if the Employee
owns or has the right to acquire more than five percent (5%) of the fully-diluted equity of the
employing entity or its affiliates, hire, directly or indirectly, any person that was employed by
Employer during the six (6) month period immediately preceding the Employee’s termination of
employment with the Employer. For purposes of this Section 5(b) the term “Competitive Business”
shall mean any job, role, or specific responsibilities within a firm, company, or business
organization that competes directly with the Employer’s business as in effect at the time of the
Employee’s termination of employment with the Employer or in a business area planned in writing by
the Employer before the Termination Date for entry within twelve (12) months of the Termination
Date at the time of the Employee’s termination of employment with the Employer. The foregoing
prohibition shall not prevent any employment or engagement of the Employee, after termination of
employment with the Employer, by any firm, company, or business organization engaged in a
Competitive Business as long as the activities of any such employment or engagement, in any
capacity, do not involve work on matters related to any business, product or service being
developed, manufactured, marketed, distributed or planned in writing by the Employer at the time of
the Employee’s termination of employment with the Employer. The Employee’s ownership of no more
than one percent (1%) of the outstanding voting stock of a publicly traded company shall not
constitute a violation of this Section 5(b). The Employee is entering into this covenant not to
compete in consideration of the agreements of the Employer in this Agreement, including but not
limited to, the agreement of the

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Employer to pay severance to the Employee upon a termination of employment pursuant to Section
4(d) hereof and the agreement of the Employer to accelerate the vesting of the Employee’s stock
options and other equity-based awards upon a Change of Control in accordance with the terms of
Section 4(d).

          (c) Prior Agreements. The Employee represents and warrants to the Employer that there are no
restrictions, agreements or understandings whatsoever to which the Employee is a party that would
prevent or make unlawful the Employee’s execution of this Agreement or the Employee’s employment
hereunder, is or would be inconsistent or in conflict with this Agreement or the Employee’s
employment hereunder, or would prevent, limit or impair in any way the performance by the Employee
of the obligations hereunder.

     6. Inventions and Discoveries.

          (a) Disclosure. The Employee shall promptly and fully disclose to the Employer, with all
necessary detail, all developments, know-how, discoveries, inventions, improvements, concepts,
ideas, formulae, processes and methods (whether copyrightable, patentable or otherwise) made,
received, conceived, acquired or written by the Employee (whether or not at the request or upon the
suggestion of the Employer, solely or jointly with others), during the period of his employment
with the Employer that (i) result from, arise out of, or relate to any work, assignment or task
performed by the Employee on behalf of the Employer, whether undertaken voluntarily or assigned to
the Employee within the scope of his responsibilities to the Employer, or (ii) were developed
using the Employer’s facilities or other resources or in Employer time, or (iii) result from the
Employee’s use or knowledge of the Employer’s Confidential Information, or (iv) relate to the
Employer’s business or any of the products or services being developed, manufactured or sold by the
Employer or that may be used in relation therewith (collectively referred to as “Inventions”). The
Employee hereby acknowledges that all original works of authorship that are made by the Employee
(solely or jointly with others) within the above terms and that are protectable by copyright are
“works made for hire,” as that term is defined in the United States Copyright Act. The Employee
understands and hereby agrees that the decision whether or not to commercialize or market any
Invention developed by the Employee solely or jointly with others is within the Employer’s sole
discretion and for the Employer’s sole benefit and that no royalty shall be due to the Employee as
a result of the Employer’s efforts to commercialize or market any such Invention.

          (b) Assignment and Transfer. The Employee agrees to assign and transfer to the Employer all
of the Employee’s right, title and interest in and to the Inventions, and the Employee further
agrees to deliver to the Employer any and all drawings, notes, specifications and data relating to
the Inventions, and to sign, acknowledge and deliver all such further papers, including
applications for and assignments of copyrights and patents, and all renewals thereof, as may be
necessary to obtain copyrights and patents for any Inventions in any and all countries and to vest
title thereto in the Employer and its successors and assigns and to otherwise protect the
Employer’s interests therein. The Employee shall not charge the Employer for time spent in
complying with these obligations. If the Employer is unable because of the Employee’s mental or
physical incapacity or for any other reason to secure the Employee’s signature to apply for or to
pursue any application for any United States or foreign patents or copyright registrations covering
Inventions or original works of authorship assigned to the Employer as above, then the

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Employee hereby irrevocably designates and appoints the Employer and its duly authorized
officers and agents as the Employee’s agent and attorney in fact, to act for and in the Employee’s
behalf and stead to execute and file any such applications and to do all other lawfully permitted
acts to further the prosecution and issuance of letters patent or copyright registrations thereon
with the same legal force and effect as if executed by the Employee.

          (c) Records. The Employee agrees that in connection with any research, development or other
services performed for the Employer, the Employee will maintain careful, adequate and
contemporaneous written records of all Inventions, which records shall be the property of the
Employer.

     7. Employer Documentation. The Employee shall hold in a fiduciary capacity for the benefit of
the Employer all documentation, disks, programs, data, records, drawings, manuals, reports,
sketches, blueprints, letters, notes, notebooks and all other writings, electronic data, graphics
and tangible information and materials of a secret, confidential or proprietary information nature
relating to the Employer or the Employer’s business that are in the possession or under the control
of the Employee.

     8. Injunctive Relief. The Employee acknowledges that his compliance with the agreements in
Sections 5, 6, and 7 hereof is necessary to protect the good will and other proprietary interests
of the Employer and that he is one of the principal executives of the Employer and conversant with
its affairs, its trade secrets and other proprietary information. The Employee acknowledges that a
breach of any of his agreements in Sections 5, 6 and 7 hereof will result in irreparable and
continuing damage to the Employer for which there will be no adequate remedy at law; and the
Employee agrees that in the event of any breach of the aforesaid agreements, the Employer and its
successors and assigns shall be entitled to injunctive relief and to such other and further relief
as may be proper.

     9. Application of Section 409A of the Internal Revenue Code.

          (a) Compliance. This Agreement shall be interpreted to avoid any penalty sanctions under
section 409A of the Code. If any payment or benefit cannot be provided or made at the time
specified herein without incurring sanctions under section 409A of the Code, then such benefit or
payment shall be provided in full at the earliest time thereafter when such sanctions will not be
imposed. For purposes of section 409A of the Code, all payments to be made upon a termination of
employment under this Agreement may only be made upon a “separation from service” under section
409A of the Code, each payment made under this Agreement shall be treated as a separate payment,
and the right to a series of installment payments under this Agreement is to be treated as a right
to a series of separate payments. In no event shall the Employee, directly or indirectly,
designate the calendar year of payment. All reimbursements provided under this Agreement shall be
made or provided in accordance with the requirements of section 409A of the Code, including, where
applicable, the requirement that (i) any reimbursement is for expenses incurred during the
Employee’s lifetime (or during a shorter period of time specified in this Agreement), (ii) the
amount of expenses eligible for reimbursement during a calendar year may not affect the expenses
eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible
expense will be made on or before

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the last day of the calendar year following the year in which the expense is incurred, and
(iv) the right to reimbursement is not subject to liquidation or exchange for another benefit.

          (b) Payment Delay. Notwithstanding any provision in this Agreement to the contrary, if at
the time of the Employee’s termination of employment with the Employer, the Employer has securities
which are publicly-traded on an established securities market and the Employee is a “specified
employee” (as defined in section 409A of the Code) and it is necessary to postpone the commencement
of any severance payments otherwise payable pursuant to this Agreement as a result of such
termination of employment in order to prevent any accelerated or additional tax under section 409A
of the Code, then the Employer shall postpone the commencement of the payment of any such payments
or benefits hereunder (without any reduction in such payments or benefits ultimately paid or
provided to the Employee) that are not otherwise paid within the short-term deferral exception
under section 409A of the Code and are in excess of the lesser of two (2) times (i) the Employee’s
then-annual compensation or (ii) the limit on compensation then set forth in section 401(a)(17) of
the Code, until the first payroll date that occurs after the date that is six (6) months following
the Employee’s “separation from service” with the Employer (as defined under section 409A of the
Code). If any payments are postponed due to such requirements, such postponed amounts shall be
paid in a lump sum to the Employee, and any installment payments due to the Employee shall
recommence, on the first payroll date that occurs after the date that is six (6) months following
the Employee’s “separation from service” with the Employer. If the Employee dies during the
postponement period prior to the payment of the postponed amount, the amounts withheld on account
of section 409A of the Code shall be paid to the personal representative of the Employee’s estate
within sixty (60) days after the date of the Employee’s death.

     10. Supersedes Other Agreements. This Agreement supersedes and is in lieu of any and all
other employment arrangements between the Employee and the Employer, including, but not limited to,
the Change of Control Agreement.

     11. Amendments. Any amendment to this Agreement shall be made in writing and signed by the
parties hereto.

     12. Enforceability. If any provision of this Agreement shall be invalid or unenforceable, in
whole or in part, then such provision shall be deemed to be modified or restricted to the extent
and in the manner necessary to render the same valid and enforceable, or shall be deemed excised
from this Agreement, as the case may require, and this Agreement shall be construed and enforced to
the maximum extent permitted by law as if such provision had been originally incorporated herein as
so modified or restricted or as if such provision had not been originally incorporated herein, as
the case may be.

     13. Governing Law. This Agreement shall be governed in all respects by the laws of the
Commonwealth of Pennsylvania without regard to the conflicts of laws principles of any
jurisdiction. Any legal proceeding arising out of or relating to this Agreement shall be
instituted in the United States District Court for the Eastern District of Pennsylvania, or if such
court does not have jurisdiction or will not accept jurisdiction, in the Court of Common Pleas in
and for the County in which the Employer’s principal place of business is located, and the Employee
hereby consents to the personal and exclusive jurisdiction of such court and hereby waives any
objection

11

 

that the Employee may have to the laying of venue of any such proceeding and any claim or
defense of inconvenient forum.

     14. Assignment.

          (a) By the Employer. The rights and obligations of the Employer under this Agreement shall
inure to the benefit of, and shall be binding upon, the successors and assigns of the Employer.
This Agreement may be assigned by the Employer without the consent of the Employee. The Employer
shall require any successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the Employer to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the
Employer would be required to perform it if no such succession had taken place. Unless expressly
provided otherwise, “Employer” as used herein shall mean the Employer as defined in this
Agreement and any successor to its business and/or assets as aforesaid.

          (b) By the Employee. This Agreement and the obligations created hereunder may not be assigned
by the Employee, but all rights of the Employee hereunder shall inure to the benefit of and be
enforceable by his heirs, devisees, legatees, executors, administrators and personal
representatives.

     15. Notices. All notices required or permitted to be given hereunder shall be in writing and
shall be deemed to have been given when mailed by certified mail, return receipt requested, or
delivered by a national overnight delivery service addressed to the intended recipient as follows:

If to the Employer:

NuPathe Inc.

227 Washington Street, Suite 200

Conshohocken, PA 19428

Attention: Chairman of the Board

If to the Employee:

Ezra H. Felker

802 Llanelly Lane

Berwyn, PA 19312

Any party may from time to time change its address for the purpose of notices to that party by a
similar notice specifying a new address, but no such change shall be deemed to have been given
until it is actually received by the party sought to be charged with its contents.

     16. Waivers. No claim or right arising out of a breach or default under this Agreement shall
be discharged in whole or in part by a waiver of that claim or right unless the waiver is supported
by consideration and is in writing and executed by the aggrieved party hereto or his or its duly
authorized agent. A waiver by any party hereto of a breach or default by the other party hereto of
any provision of this Agreement shall not be deemed a waiver of future compliance therewith, and
such provisions shall remain in full force and effect.

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     17. Survival of Covenants. The provisions of Sections 5, 6, 7 and 8 hereof shall survive the
termination of this Agreement. Furthermore, any other provision of this Agreement that, by its
terms, is intended to continue beyond the termination of the Employee’s employment shall continue
in effect thereafter.

[space intentionally left blank; signature page follows]

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     IN WITNESS WHEREOF, this Agreement has been executed by the parties as of the date
first above written.

	 	 	 	 	 
	 	NUPATHE INC.

 	 
	 	By:  	/s/  Jane H. Hollingsworth
 	 
	 	 	Title: 	Chief Executive Officer
 	 
	 
	 	EMPLOYEE

 	 
	 	/s/ Ezra H. Felker
 	 
	 	Ezra H. Felker 	 
	 	 	 
	 

14exv10w20

Exhibit 10.20

FORM
OF

DIRECTOR INDEMNIFICATION AGREEMENT

NUPATHE INC.

     THIS DIRECTOR INDEMNIFICATION AGREEMENT (this “Agreement”) is made as of
          , by and among NuPathe Inc., a Delaware corporation (the “Company”), and the Director of the
Company who is a signatory hereto (the “Indemnitee”).

RECITALS:

     A. The Indemnitee has been elected to serve as a Director of the Company and the Company
wishes such Indemnitee to serve in such capacity.

     B. Section 145 of the General Corporation Law of the State of Delaware, under which law the
Company is organized, empowers corporations to indemnify a person serving as a director, officer,
employee or agent of the corporation and a person who serves at the request of the corporation as a
director, officer, employee or agent of another corporation, partnership, joint venture, trust, or
other enterprise, and said Section 145 and the Bylaws of the Company (the “Bylaws”) specify that
the indemnification set forth in said Section 145 and in the Bylaws, respectively, shall not be
deemed exclusive of any other rights to which those seeking indemnification may be entitled under
any bylaw, agreement, vote of stockholders or disinterested directors or otherwise.

     C. The Board of Directors has determined that contractual indemnification as set forth herein
is not only reasonable and prudent but necessary to promote the best interests of the Company and
its stockholders.

     D. The Company desires and has requested the Indemnitee to serve or continue to serve as a
Director of the Company free from undue concern for claims for damages arising out of or related to
such services to the Company.

     E. The Indemnitee is willing to serve, or to continue to serve, the Company, only on the
condition that the Company furnish the indemnity provided for herein.

     NOW, THEREFORE, in consideration of the Indemnitee’s continued service as a Director of the
Company, the parties hereto agree as follows:

1. Agreement to Serve. The Indemnitee shall serve and/or continue to serve as a director
of the Company, at the will of the Company at the election of its stockholders, in the capacity
such Indemnitee currently serves, so long as such Indemnitee is duly appointed or elected and
qualified in accordance with the applicable provisions of the Bylaws of the Company or until such
time as such Indemnitee tenders a resignation in writing; provided, however, that nothing contained
in this Agreement is intended to create any right to continued employment, if any, by such
Indemnitee in any capacity.

 

 

2. Indemnity.

     (a) The Company will indemnify the Indemnitee, the Indemnitee’s executors, administrators or
assigns, for any Expenses (as defined below), which such Indemnitee is or becomes legally obligated
to pay in connection with any Proceeding (as defined below); provided, that in each such case such
Indemnitee has acted in good faith and in a manner, which such Indemnitee reasonably believed to be
in or not opposed to the best interests of the Company, and, in the case of a criminal proceeding,
in addition, had no reasonable cause to believe that the conduct at issue was unlawful. The
termination of any action, suit or proceeding by judgment, order, settlement or conviction, or upon
a plea of nolo contendere or its equivalent, shall not, of itself, create a
presumption that such Indemnitee did not act in good faith and in a manner which such Indemnitee
reasonably believed to be in or not opposed to the best interests of the Company, or, with respect
to any criminal action or proceeding, had reasonable cause to believe that the conduct at issue was
unlawful.

     (b) As used in this Agreement the term “Proceeding” shall include any threatened, pending or
completed claim, action, suit or proceeding, whether brought by or in the right of the Company or
by a third party or otherwise and whether of a civil, criminal, administrative or investigative
nature, in which the Indemnitee may be or may have been involved as a party or otherwise, by reason
of the fact that such Indemnitee is or was a director or officer of the Company, by reason of any
actual or alleged error or misstatement or misleading statement or omission made or suffered by
such Indemnitee, by reason of any action taken by or any inaction on the part of the Indemnitee
while acting as such director or officer, or by reason of the fact that such Indemnitee was serving
at the request of the Company as a director, trustee, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise.

     (c) For purposes of this Agreement the term “subsidiary” means any corporation of which more
than 50% of the outstanding voting securities are owned directly or indirectly by the Company, by
the Company and one or more other subsidiaries or by one or more other subsidiaries.

     (d) As used in this Agreement, the term “other enterprise” shall include (without limitation)
employee benefit plans and administrative committees thereof, and the term “fines” shall include
(without limitation) any excise tax assessed with respect to any employee benefit plan.

     (e) References to “serving at the request of the Company” shall include any service as a
director, officer, employee or agent of the Company which imposes duties on, or involves services
by, such director, officer, employee or agent with respect to an employee benefit plan, its
participants or beneficiaries, and if the Indemnitee acted in good faith and in a manner such
Indemnitee reasonably believed to be in the interest of the participants and beneficiaries of an
employee benefit plan, such Indemnitee shall be deemed to have acted in a manner “not opposed to
the best interests of the Company” as referred to above.

3. Expenses. As used in this Agreement, the term “Expenses” shall include, without
limitation, damages, judgments, fines, penalties, settlements and costs, attorneys’ fees and
disbursements and costs of attachment or similar bonds, investigations, and any expenses of
establishing a right to indemnification under this Agreement.

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4. Primacy of Insurance/Subrogation.

     (a) If and to the extent that Indemnitee has rights to indemnification, advancement of
expenses and/or insurance provided by or through its investment fund(s), partnership(s) or
employer(s) (“Fund Indemnitors”) that is applicable to Indemnitee’s service as a director of the
Company, the Company hereby agrees (i) that it is the indemnitor of first resort (i.e., its
obligations to Indemnitee are primary and any obligation of the Fund Indemnitors to advance
expenses or to provide indemnification for the same expenses or liabilities incurred by Indemnitee
are secondary), (ii) that it shall be required to advance the full amount of expenses incurred by
Indemnitee and shall be liable for the full amount of all Expenses, judgments, penalties, fines and
amounts paid in settlement to the extent legally permitted and as required by the terms of this
Agreement and the Certificate of Incorporation or Bylaws of the Company (or any other agreement
between the Company and Indemnitee), without regard to any rights Indemnitee may have against the
Fund Indemnitors, and, (iii) that it irrevocably waives, relinquishes and releases the Fund
Indemnitors from any and all claims against the Fund Indemnitors for contribution, subrogation or
any other recovery of any kind in respect thereof. The Company further agrees that no advancement
or payment by the Fund Indemnitors on behalf of Indemnitee with respect to any claim for which
Indemnitee has sought indemnification from the Company shall affect the foregoing and the Fund
Indemnitors shall have a right of contribution and/or be subrogated to the extent of such
advancement or payment to all of the rights of recovery of Indemnitee against the Company. The
Company and Indemnitee agree that the Fund Indemnitors are express third party beneficiaries of the
terms of this Section 14(b).

     (b) Except as provided in paragraph (a), above, in the event that the Company pays any
Expenses under this Agreement, the Company shall be subrogated to the extent of such payment to all
of the rights of recovery of the Indemnitee (other than against the Fund Indemnitors), who shall
execute all papers required and shall do everything that may be necessary to secure such rights,
including the execution of such documents necessary to enable the Company effectively to bring suit
to enforce such rights.

5. Exclusions. Notwithstanding the foregoing, the Company shall not be liable under this
Agreement to pay any Expenses in connection with any Proceeding:

     (a) to the extent that payment of such Expenses is actually made to the Indemnitee under a
valid, enforceable and collectible insurance policy;

     (b) to the extent that the Indemnitee is indemnified and actually paid other than pursuant to
this Agreement;

     (c) in connection with a judicial action by or in the right of the Company, in respect of any
claim, issue or matter as to which the Indemnitee shall have been adjudged to be liable to the
Company unless and only to the extent that the Court of Chancery of the State of Delaware or the
court in which such Proceeding was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case, the Indemnitee is
fairly and reasonably entitled to indemnity for such Expenses as such court shall deem proper;

     (d) if it is proved by final judgment in a court of law or other final adjudication that the
Indemnitee had in fact gained any personal profit or advantage to which the Indemnitee was not
legally entitled;

     (e) for a disgorgement of profits made from the purchase and sale by the Indemnitee of
securities pursuant to Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto
or similar provisions of any state statutory law or common law;

     (f) if it is proved by final judgement in a court of law or other final adjudication that the
Indemnitee breached the duty of loyalty owed to the Company or its stockholders, acted in bad
faith, failed to act where such failure to act was in bad faith, or engaged in intentional
misconduct or knowing violation of the law; or

     (g) for any Expenses which the Company is prohibited by applicable law from paying as
indemnity.

6. Indemnification of Expenses of Successful Party. Notwithstanding any other provision of
this Agreement, to the extent that the Indemnitee has been successful on the merits or otherwise in
defense of any Proceeding or in defense of any claim, issue or matter therein, including dismissal
without prejudice, such Indemnitee shall be indemnified against any and all Expenses actually and
reasonably incurred in connection therewith.

7. Partial Indemnification. If the Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of Expenses, but not, however,
for the total amount thereof, the Company shall nevertheless indemnify such Indemnitee for the
portion of such Expenses to which the Indemnitee is entitled.

3

 

8. Advance of Expenses. Expenses incurred by the Indemnitee in connection with any
Proceeding shall be paid by the Company in advance of the final disposition thereof upon request of
such Indemnitee that the Company pay such Expenses. The Indemnitee hereby undertakes to repay to
the Company the amount of any Expenses theretofore paid by the Company to the extent that it is
ultimately determined that such Expenses were not reasonable or that such Indemnitee is not
entitled to indemnification therefor. The advances to be made hereunder shall be paid by the
Company to or on behalf of the Indemnitee within 30 days following delivery of a written request
therefor by such Indemnitee to the Company.

9. Approval of Payment of Expenses. No payment of Expenses for which indemnity shall be
sought under this Agreement, other than those in respect of judgments and verdicts actually
rendered, shall be incurred without the prior consent of the Company, which consent shall not be
unreasonably withheld.

10. Notice of Claim. The Indemnitee, as a condition precedent to any indemnification under
this Agreement, shall give to the Company notice in writing as soon as reasonably practicable of
any Proceeding for which indemnity will or could be sought under this Agreement. Notice to the
Company shall be given at its principal office and shall be directed to the Secretary of the
Company (or such other address as the Company shall designate in writing to the Indemnitee); notice
shall be deemed given on the earlier of the date of receipt or the seventh day after it is sent by
properly addressed, prepaid registered or certified mail, return receipt requested. In addition,
the Indemnitee shall give the Company such information and cooperation as it may reasonably require
and as shall be within such Indemnitee’s power.

11. Changes in Law/Amendments. The entitlement to payment hereunder of the Indemnitee
shall not be affected or diminished by any amendment, termination or repeal of the General
Corporation Law of the State of Delaware or the Bylaws of the Company with respect to any
Proceeding arising out of or relating to any actions, transactions or facts occurring prior to the
final adoption of any such amendment, termination or repeal.

12. Enforcement. In the event that the Company shall fail or refuse to make payment of any
amounts due the Indemnitee under Section 2 hereof within the time periods provided in Section 8,
the parties shall then engage in arbitration in the city of Philadelphia, Pennsylvania in
accordance with the commercial arbitration rules then in effect of the American Arbitration
Association, before a panel of three arbitrators, one of whom shall be selected by the Company and
one by Indemnitee, and the third of whom shall be selected by the other two arbitrators. Each
arbitrator selected as provided herein is required to be serving or to have served as a director or
an executive officer of a corporation whose shares of common stock, during at least one year of
such service, were quoted in the Nasdaq National Market System or listed on the New York Stock
Exchange. It is expressly understood and agreed by the parties that a party may compel arbitration
pursuant to this Section 12 through an action for specific performance and any award entered by the
arbitrators shall be final, binding and nonappealable and judgment may be entered thereon by either
party in accordance with applicable law in any court of competent jurisdiction. The arbitrators
shall have no authority to modify any provision of this Agreement or to award a remedy for dispute
involving this Agreement other than a benefit specifically provided under or by virtue of the
Agreement. If the Indemnitee prevails on at least one material issue which is the subject of such
arbitration, the Company shall be responsible for all of the fees

4

 

of the American Arbitration Association and the arbitrators and any expense relating to the conduct
of the arbitration (including reasonable attorneys’ fees and expenses). Otherwise, each party
shall be responsible for its own expenses relating to the conduct of the arbitration (including
reasonable attorneys’ fees and expenses) and shall equally share the fees of the American
Arbitration Association.

13. Counterparts. This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one instrument.

14. Indemnification Hereunder Not Exclusive. Nothing herein shall be deemed to diminish or
otherwise restrict the Indemnitee’s right to indemnification under any provision of the Certificate
of Incorporation, as may be amended or restated from time to time, or the Bylaws of the Company and
amendments thereto or under law.

15. Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of Delaware.

16. Saving Clause. Wherever there is conflict between any provision of this Agreement and
any applicable present or future statute, law or regulation contrary to which the Company and the
Indemnitee have no legal right to contract, the latter shall prevail, but in such event the
affected provisions of this Agreement shall be curtailed and restricted only to the extent
necessary to bring them within applicable legal requirements.

17. Coverage. The provisions of this Agreement shall apply with respect to the
Indemnitee’s service as a Director of the Company prior to the date of this Agreement (if any) and
with respect to all periods of such service after the date of this Agreement, even though such
Indemnitee may have ceased to be a Director of the Company and shall inure to the benefit of the
heirs, executors and administrators of such Indemnitee.

18. Survival of Agreement. For purposes of this Agreement, any reference to the “Company”
shall include, in addition to the resulting or surviving corporation, any constituent corporation
(including any constituent of a constituent) absorbed in a consolidation or merger which, if its
separate existence had continued, would have had power and authority to indemnify its directors,
officers, employees or agents, so that any person who is or was a director, officer, employee or
agent of such constituent corporation, or is or was serving at the request of such constituent
corporation as a director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, shall stand in the same position under the provisions of this
Agreement with respect to the resulting or surviving corporation as such person would have with
respect to such constituent corporation if its separate existence had continued.

[Signature Page to Follow]

5

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
signed as of the day and year first above written.

	 	 	 	 	 
	 	NUPATHE INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

INDEMNITEE:

	 	 	 	 	 

	 	 	 
	Name:

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