Document:

Supplemental Cash Incentive Plan

 Exhibit 10.2 

 
 STATE STREET CORPORATION 

SUPPLEMENTAL CASH INCENTIVE PLAN 
 Effective as of January 1, 2010 

 TABLE OF CONTENTS 

 

							
	 ARTICLE I Name, Purpose and Definitions
	  	 	1	  
	 1.1
	  	 Name and Effective Date.
	  	 	1	  
	 1.2
	  	 Status of Plan
	  	 	1	  
	 1.3
	  	 Definitions.
	  	 	1	  
	 ARTICLE II Participation And Vesting
	  	 	3	  
	 2.1
	  	 Eligibility to Participate
	  	 	3	  
	 2.2
	  	 Vesting Date
	  	 	3	  
	 2.3
	  	 Termination of Participation
	  	 	3	  
	 ARTICLE III Awards and Distribution
	  	 	3	  
	 3.1
	  	 Awards
	  	 	3	  
	 3.2
	  	 Interest
	  	 	3	  
	 3.3
	  	 Form of Payment
	  	 	3	  
	 3.4
	  	 Timing of Payment
	  	 	3	  
	 3.5
	  	 Treatment of Awards following Separation of Service
	  	 	3	  
	 3.6
	  	 Forfeiture of Awards
	  	 	4	  
	 3.7
	  	 Confidentiality, Non-Solicitation and/or Non-Competition
	  	 	4	  
	 3.8
	  	 Special Rules
	  	 	5	  
	 3.9
	  	 Rehire
	  	 	5	  
	 3.10
	  	 Certain Tax Matters
	  	 	5	  
	 3.11
	  	 Distribution of Taxable Amounts
	  	 	5	  
	 ARTICLE IV Administration of Plan
	  	 	6	  
	 4.1
	  	 Plan Administrator
	  	 	6	  
	 4.2
	  	 Outside Services
	  	 	6	  
	 4.3
	  	 Indemnification
	  	 	6	  
	 ARTICLE V Amendment, Modification and Termination
	  	 	6	  
	 5.1
	  	 Amendment; Termination
	  	 	6	  
	 5.2
	  	 Modification of Plan Terms
	  	 	7	  
	 5.3
	  	 Effect of Amendment or Termination
	  	 	7	  
	 ARTICLE VI Miscellaneous Provisions
	  	 	7	  
	 6.1
	  	 Source of Payments
	  	 	7	  
	 6.2
	  	 No Warranties
	  	 	7	  
	 6.3
	  	 Inalienability of Benefits
	  	 	7	  
	 6.4
	  	 Reclassification of Employment Status
	  	 	7	  
	 6.5
	  	 Expenses.
	  	 	7	  
	 6.6
	  	 Enforceability
	  	 	7	  
	 6.7
	  	 No Right of Employment
	  	 	8	  
	 6.8
	  	 Headings
	  	 	8	  
	 6.9
	  	 Construction
	  	 	8	  

  
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 ARTICLE I 
 Name, Purpose and Definitions 
  

	1.1	Name and Effective Date. The Plan sets set forth the terms of the State Street Corporation Supplemental Cash Incentive Plan effective January 1, 2010. All
benefits under the Plan shall be subject to the terms and conditions of this Plan document. 

  

	1.2	Status of Plan. The Plan is intended to be a bonus plan which is not subject to ERISA as defined below, and Awards under the Plan are intended to fall within the
short term deferral exception to Code section 409A as set forth in Treasury Regulation Section 1.409.A-1(b)(4) to the extent applicable. If for any reason Code section 409A should at any time apply to any Awards made under this Plan, then the
provisions of this Plan applicable to such Awards are intended to comply with the requirements applicable to a “nonqualified deferred compensation plan” under Code section 409A and the regulations thereunder and shall be interpreted and
administered consistent with that intent. 

  

	1.3	Definitions. When used herein, the following words shall have the meanings indicated below. 

 

	 	(a)	“Award” means that portion of the cash bonus awarded to an Eligible Employee under the Company’s Incentive Compensation Plan, or any other cash
award to an Eligible Employee, that the Committee or Plan Administrator determines, in its discretion, is to be paid in accordance with the terms of this Plan. 

 

	 	(b)	“Beneficiary” means the person or persons designated by the Participant in writing, subject to such rules as the Plan Administrator may prescribe, to
receive benefits under the Plan in the event of the Participant’s death. In the absence of an effective designation at the time of the Participant’s death the Participant’s Beneficiary shall be his or her surviving Spouse or Domestic
Partner as defined by the policies under which the Employer then operates, or, if the Participant has no surviving Spouse or Domestic Partner, then the Participant’s estate. 

 

	 	(c)	“Code” means the Internal Revenue Code of 1986, as amended, and its implementing regulations from time to time. 

 

	 	(d)	“Company” means the State Street Corporation, its subsidiaries and affiliates as determined by the Committee in its sole discretion.

  

	 	(e)	“Committee” means the Executive Compensation Committee of the Board of Directors of State Street Corporation. 

 

	 	(f)	“Disabled” means, for any Participant, that the Participant, as determined in the sole discretion of the Plan Administrator: 

is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period of not less than 12 months, or 

  
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is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months,
receiving income replacement benefits for a period of not less than 6 months under an accident and health plan covering employees of the Employer. 
  

	 	(g)	“Eligible Employee” means any employee of an Employer. 

  

	 	(h)	“Employer” means any or all, as the context requires, of State Street Corporation and any other entity (or branch) that would be treated as a member of
the same controlled group of corporations, or as trades or business under common control, with State Street Corporation, under Code sections 414(b) and (c). 

 

	 	(i)	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and its implementing regulations from time to time.

  

	 	(j)	“Incentive Compensation Plan” means the annual incentive compensation plan under which an Eligible Employee receives a cash award, currently either the
Incentive Compensation Plan or the Senior Executive Annual Incentive Plan. 

  

	 	(k)	“Participant” means an Eligible Employee who has an unpaid Award under the Plan. 

 

	 	(l)	“Plan” means this State Street Corporation Supplemental Cash Incentive Plan, as from time to time amended and in effect. 

 

	 	(m)	“Plan Administrator” means the Plan Administrator appointed pursuant to Section 4.1. 

 

	 	(n)	“Retirement” means an Eligible Employee who is age 55 or older with five (5) or more years of service as of his or her termination date from the
Company. For this purpose, years of service shall be determined using Company records in a consistent manner by the Plan Administrator in its sole and exclusive discretion. 

 

	 	(o)	“Solicitation of Business” means the attempt through direct or indirect contact by a Participant or by any other person or entity with the
Participant’s assistance with a client with whom he or she has had or with whom persons supervised by the Participant have had significant personal contact while employed by the Company and its Subsidiaries to induce such client to:

 transfer its business from the Company and its Subsidiaries to any other person or entity; 

cease or curtail its business with the Company and its Subsidiaries; or, 

divert a business opportunity from the Company and its Subsidiaries to any other person or entity of the business with which the
Participant was actively connected during his or her employment. 
  

	 	(p)	“Separation from Service” means a separation from service, within the meaning of Treas. Regs. §1.409A-1(h), with all Employers that would be
treated as a single employer with State Street Corporation under the first sentence of Treas. Regs. §1.409A-1(h)(3). 

  
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	 	(q)	“written” “in writing” and similar terms To the extent permitted by the Plan Administrator, the terms “written,” “in
writing,” and terms of similar import shall include communications by electronic media. 

 ARTICLE II

 Participation And Vesting 
  

	2.1	Eligibility to Participate. An Eligible Employee shall become a Participant when issued an Award payable under the terms of this Plan. 

 

	2.2	Vesting Date. 

  

	 	(a)	Every Award issued to an Eligible Employee that is payable under this Plan shall vest as determined by the Committee or the Plan Administrator in writing at the time of
the issuance of the Award. 

  

	 	(b)	For the avoidance of doubt, the Committee shall determine the vesting period and criteria for all awards that are part of the Incentive Compensation Plan.

  

	2.3	Termination of Participation. Participation in the Plan shall end when all Awards issued to a Participant are either distributed or forfeited consistent with the
terms of this Plan. 

 ARTICLE III 
 Awards and Distribution 
  

	3.1	Awards. Awards shall be issued to Eligible Employees as determined by the Committee or the Plan Administrator in its sole and complete discretion.

  

	3.2	Interest. 

  

	 	(a)	The terms of the Award shall include any interest that will be credited to the Award and the manner in which it will be determined and calculated.

  

	 	(b)	When an installment is made interest will only be paid on the amount of the installment, consistent with the interest rate or formula applied to the Award.

  

	 	(c)	For the avoidance of doubt, the Committee shall determine the interest credit for all Awards that are part of the Incentive Compensation Plan. 

 

	3.3	Form of Payment. All payments under this Plan will be made in cash out of the Company’s general corporate assets. 

 

	3.4	Timing of Payment. Each payment under an Award shall be made to the Participant as soon as administratively feasible following the vesting of such payment.

  

	3.5	Treatment of Awards following Separation of Service. Following Separation from Service: 

  
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	 	(a)	A Participant shall continue to vest in any outstanding Award consistent with the vesting schedule set forth in the Statement if such Participant is:

 Retirement eligible; or 
 Is involuntarily terminated for reasons other than gross misconduct as determined by the Plan Administrator in its sole and complete discretion as set forth in Section 3.6 below. 

 

	 	(b)	A Participant shall continue to vest consistent with Section 3.8 below if such Participant either dies or terminates after becoming Disabled.

  

	 	(c)	Vesting post-separation, where applicable, shall continue in accordance with the vesting schedule determined in Section 2.2 of this Plan. 

 

	 	(d)	Distribution of the Award will be made in accordance with the distribution terms of this Plan. 

 

	3.6	Forfeiture of Awards. A Participant shall forfeit all Awards and all amounts due under any Awards subject to the terms of this Plan if: 

 

	 	(a)	He or she has a Separation from Service which meets the terms of 3.5 but and fails to comply with the terms of the Confidentiality, Non-Solicitation and/or
Non-Competition provisions set forth in 3.7 below; 

  

	 	(b)	He or she has a Separation from Service on a voluntary basis and is not Retirement eligible; or 

 

	 	(c)	Has a Separation from Service by the Employer and such Separation from Service is classified as being for gross misconduct as determined by the Employer in its sole and
complete discretion (even if the Participant is Retirement eligible at the time of such Separation from Service for gross misconduct). 

  

	3.7	Confidentiality, Non-Solicitation and/or Non-Competition. To the extent that a Participant’s Award continues to vest consistent with 3.5, the rights to
receive continue vesting shall be subject to the following conditions. A Participant shall forfeit all Awards and all amounts due under any Awards subject to the terms of this Plan if he or she shall, without the prior written consent of the
Company: 

  

	 	(a)	solicit, directly or indirectly (other than through a general solicitation of employment not specifically directed to employees of the Company and its Subsidiaries) the
employment of, hire or employ, recruit, or in any way assist another in soliciting or recruiting the employment of , or otherwise induce the termination of the employment of, any person who within the previous 12 months from receipt of the last
payment was an officer or principal of the Company or any of its Subsidiaries; 

  

	 	(b)	engage in the Solicitation of Business (as defined above) from any client on behalf of any person or entity other than the Company and its Subsidiaries; or

  

	 	(c)	violate any of the terms set forth in the Standard of Conduct, Conflict of Interest and Confidentiality Agreements. 

Any determination of a violation of this section shall be by the Plan Administrator and shall be conclusive and binding on all persons.

  
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	3.8	Special Rules. 

  

	 	(a)	Payments on account of Disability. If the Participant is determined to be Disabled, the Award shall become vested in full and the balance of a Participant’s
Award, if any, shall be distributed in a single lump sum cash payment to the Participant or the Participant’s Beneficiary or Beneficiaries as soon as practical on which the Participant becomes Disabled. 

 

	 	(b)	Payment upon death. Following a Participant’s death, the Award shall become vested in full and the balance of a Participant’s Award, if any, shall be
distributed in a single lump sum cash payment to the Participant’s Beneficiary or Beneficiaries as soon as practical following receipt of verification of the date of the Participant’s death. 

 

	 	(c)	International Awards. Notwithstanding anything in this Plan to the contrary, the Employer in its sole and complete discretion shall implement such further
restrictions on awards made to Eligible Employees working outside the United States as it may deem reasonable and prudent. Such additional restrictions shall be included in the applicable Eligible Employee’s summary of the plan terms and shall
be given full force and effect. 

  

	3.9	Rehire. No Award that was forfeited shall be reinstated in the event a Participant who has a Separation from Service is subsequently rehired.

  

	3.10	Certain Tax Matters. As determined by the Plan Administrator in its sole and exclusive discretion, the amount of the Award (including credited interest) that
vests may be reduced (and that amount distributed to the Employer) at the time of such vesting or thereafter up to the time of payment, by required tax or similar withholdings in a manner consistent with the provisions of Code Section 409A. The
distribution of any vested portion of an Award subject to Section 409A of the Code will not be accelerated or deferred unless specifically permitted or required under Section 409A of the Code. Solely to the extent that a distribution in
connection with an Award subject to Section 409A of the Code is otherwise provided for under the terms of this Plan or any Award as a result of a “Separation from Service” as defined under Section 409A of the Code and the
Participant is a “specified employee” as defined under Section 409A, any distribution due before six months and one day after such “Separation from Service” shall be delayed until the date that is six months and one day
after such “Separation from Service”. In any event, State Street Corporation makes no representations or warranty and will have no liability to any Participant or any other person, if any provisions of or payments under this Plan are
determined to constitute deferred compensation subject to Section 409A but not to satisfy the conditions of that section. 

  

	3.11	Distribution of Taxable Amounts. Notwithstanding the foregoing, if any portion of a Participant’s Award is determined by the Plan Administrator to be
includible, by reason of Section 409A of the Code, in a Participant’s or Beneficiary’s income, such portion shall be paid by the Employer (or by the Employers, on an allocated basis determined by the Plan Administrator) to such
Participant or Beneficiary. 

  
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 ARTICLE IV 
 Administration of Plan 
  

	4.1	Plan Administrator. Except as the Committee may otherwise determine, the Plan Administrator shall be the Executive Vice President-Global Human Resources as from
time to time in office, and his or her delegates, and the Senior Vice President of Global Human Resources Compensation and Benefits-. The Plan Administrator shall have complete discretionary authority to interpret the Plan and to decide all matters
under the Plan, including decisions regarding any claim for benefits under the Plan. Such interpretation and decision shall be final, conclusive and binding on all Participants and any person claiming under or through any Participant, in the absence
of clear and convincing evidence that the Plan Administrator acted arbitrarily and capriciously. However, no individual acting, directly or by delegation, as the Plan Administrator may determine his or her own rights or entitlements under the Plan.
The Plan Administrator shall establish such rules and procedures, maintain such records and prepare such reports as it considers to be necessary or appropriate to carry out the purposes of the Plan. 

 

	4.2	Outside Services. The Plan Administrator may engage counsel and such clerical, financial, investment, accounting, and other specialized services as the Plan
Administrator may deem necessary or appropriate in the administration of the Plan. The Plan Administrator shall be entitled to rely upon any opinions, reports, or other advice furnished by counsel or other specialists engaged for that purpose and,
in so relying, shall be fully protected in any action, determination, or omission made in good faith. 

  

	4.3	Indemnification. To the extent permitted by law and not prohibited by its charter and by-laws, State Street Corporation will indemnify and hold harmless every
person serving (directly or by delegation) as Plan Administrator and the estate of such an individual if he or she is deceased from and against all claims, loss, damages, liability and reasonable costs and expenses incurred in carrying out his or
her responsibilities as Plan Administrator, unless due to the gross negligence, bad faith or willful misconduct of such individual; provided, that counsel fees and amounts paid in settlement must be approved by State Street Corporation; and
further provided, that this Section 4.3 will not apply to any claims, loss, damages, liability or costs and expenses which are covered by a liability insurance policy maintained by State Street Corporation or by the individual. The
provisions of the preceding sentence shall not apply to any corporate trustee, insurance company, investment manager or outside service provider (or to any employee of any of the foregoing) unless the Company otherwise specifies in writing.

 ARTICLE V 
 Amendment, Modification and Termination 
  

	5.1	 Amendment; Termination. By action of the Committee or its delegate, the Company reserves the absolute right at any time and from time to time to
amend any or all provisions of the Plan, and to terminate the Plan at any time. In addition, the Plan 

  
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Administrator shall have the right at any time and from time to time to make amendments to the Plan (in general or with respect to one or more individual Participants or Beneficiaries) that do
not materially increase the financial obligations of the Company. 

  

	5.2	Modification of Plan Terms. For application of the issuance of Awards outside of the United States, this Plan may be amended in the sole discretion of an
Employer (with respect to an Eligible Employee of the Employer), the Plan Administrator or Committee to ensure compliance with local laws and administrative issues. 

 

	5.3	Effect of Amendment or Termination. No action under Section 5.1 shall operate to reduce the balance of a Participant’s Award compared to such balance
immediately prior to the effectiveness of such action, other than through a distribution upon a termination and liquidation of the Plan in accordance with the requirements of Treas. Regs. §1.409A-3(j)(4)(ix)). 

ARTICLE VI 

Miscellaneous Provisions 
  

	6.1	Source of Payments. All payments hereunder to Participants and their Beneficiaries shall be paid from the general assets of the Employer, including for this
purpose, if the Employer in its sole discretion so determines, assets of one or more trusts established to assist in the payment of benefits hereunder. 

  

	6.2	No Warranties. Neither the Plan Administrator nor any Employer warrants or represents in any way that the value of a Participant’s Award will increase or
not decrease other than the interest that is applied. 

  

	6.3	Inalienability of Benefits. Except as required by law, no benefit under, or interest in, the Plan shall be subject in any manner to anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt to do so shall be void. 

  

	6.4	Reclassification of Employment Status. Notwithstanding anything herein to the contrary, an individual who is not characterized or treated as a common law
employee by an Employer shall not be eligible to participate in the Plan notwithstanding any determination of employee status by the Internal Revenue Service, a court of competent jurisdiction or otherwise. 

 

	6.5	Expenses. The Employer shall pay all costs and expenses incurred in operating and administering the Plan. 

 

	6.6	Enforceability. In the event that any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, this does not affect the
validity of the remaining provisions. 

  
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	6.7	No Right of Employment. Nothing contained herein, or any action taken under the provisions hereof, shall be construed as giving any Participant the right to be
retained in the employ of an Employer. 

  

	6.8	Headings. The headings of the sections in the Plan are placed herein for convenience of reference, and, in the case of any conflict, the text of the Plan, rather
than such heading, shall control. 

  

	6.9	Construction. The Plan shall be construed, regulated, and administered in accordance with the laws of the Commonwealth of Massachusetts and applicable federal
laws. 

 IN WITNESS WHEREOF, the Company has caused this instrument to be executed by its duly respective duly authorized officer
on the 4th day of March, 2010. 
 STATE STREET CORPORATION 

By: /s/ David O’Leary 

       Executive Vice President 

  
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 FIRST AMENDMENT 

TO THE STATE STREET CORPORATION 
 SUPPLEMENTAL CASH INCENTIVE PLAN 
 (Effective January 1, 2010)

 Pursuant to Section 5.1 of the State Street Corporation Supplemental Cash Incentive Plan (the “Plan”),
State Street Corporation, acting through the undersigned, its authorized delegate, hereby amends the Plan as follows, effective January 1, 2010: 
  

	1.	Section 1.2 of the Plan is amended to read as follows: 

 “The Plan is intended to be a bonus plan which is not subject to ERISA. The provisions of the Plan are intended to comply with the requirements applicable to a “nonqualified deferred
compensation plan” under Code section 409A and the regulations thereunder and shall be interpreted and administered consistent with that intent.” 
  

	2.	Section 1.3(n) of the Plan is amended so that the first sentence thereof reads as follows: 

““Retirement Eligible” means that an Eligible Employee is age 55 or older and has five (5) or more years of
service.” 
  

	3.	Section 1.3(q) of the Plan is re-designated Section 1.3(r), and a new Section 1.3(q) is added to the Plan reading as follows: 

““Vest,” “vesting,” and terms of similar import refer to the Participant’s right to payment under an
Award becoming non-forfeitable.” 
  

	4.	Section 3.5(a) of the Plan is amended to delete the word “is” preceding the colon and to clarify subsection (i) to read as follows: “is
Retirement Eligible at the time of the Separation from Service; or”. 

  

	5.	Section 3.8 of the Plan is amended so to delete the phrase “as soon as practical on which” in subsection (a) and insert in lieu thereof the phrase
“as soon as practical following the date on which,” and to delete the words “receipt of verification of” in subsection (b). 

  

	6.	Section 3.10 of the Plan is amended so that the first sentence thereof reads as follows: 

“As determined by the Plan Administrator in its sole and exclusive discretion, the amount of any Award (including credited interest)
that is not subject to a substantial risk of forfeiture may be reduced (and that amount distributed to the Employer) at the earliest time the Award is not subject to a substantial risk of forfeiture or thereafter up to the time of payment, by the
amount of any required withholdings in a manner consistent with the provisions of Code Section 409A.” 
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of this page left intentionally blank] 

  

 IN WITNESS WHEREOF, the Company has caused this instrument to be executed by its duly
authorized officer this 14th day of December, 2010. 
 STATE STREET CORPORATION 

By: /s/ Alison Quirk 
        Executive Vice President 

  

 SECOND AMENDMENT 

TO THE STATE STREET CORPORATION 
 SUPPLEMENTAL CASH INCENTIVE PLAN 
 (Effective February 22, 2011)

 Pursuant to Section 5.1 of the State Street Corporation Supplemental Cash Incentive Plan (the “Plan”),
State Street Corporation, acting through the undersigned, its authorized delegate, hereby amends the Plan as follows, effective February 22, 2011: 
 Section 3.8 of the Plan is amended to add a new paragraph (c) (and the existing paragraph (c) is re-lettered as (d)), which reads as follows: 

“(c) Payment upon a change in control of State Street Corporation. Upon the occurrence of a “change in control event” of State
Street Corporation, as defined under Section 409A of the Code and Treasury Regulations 1.409A-3(i)(5), any Award awarded on or after February 22, 2011 shall become vested in full, and the balance of the Award, if any, shall be distributed
in a single lump sum payment to the Participant as soon as practical following the date of such change in control event.” 

[remainder of this page left intentionally blank] 

  

 IN WITNESS WHEREOF, the Company has caused this instrument to be executed by its duly authorized officer
this 28th day of April, 2011. 
 STATE STREET CORPORATION 

By: /s/ Alison Quirk 
        Executive Vice PresidentEmployment Agreement - Michael Babich

 Exhibit 10.8 
 INSYS THERAPEUTICS, INC. 

EMPLOYMENT AGREEMENT 
 This Employment Agreement (“Agreement”) is entered into as of the 29th day of April, 2011 (the “Effective Date”), by and between Michael Babich
(“Executive”) and Insys Therapeutics, Inc. (the “Company”). 

RECITALS 
 A. Executive has been serving as an executive officer of the Company since on or about November 2010. The Company desires assurance of the association and services of Executive in order to retain
Executive’s experience, skills, abilities, background and knowledge, and is willing to engage Executive’s services on the terms and conditions set forth in this Agreement. 

B. Executive desires to be in the employ of the Company, and is willing to accept such employment on the terms and conditions set
forth in this Agreement. 
 C. This Agreement supersedes any and all prior and contemporaneous oral or written employment
agreements or arrangements between Executive and the Company or its subsidiaries. 

AGREEMENT 
 In consideration of the foregoing Recitals and the mutual promises and covenants herein contained, and for other good and valuable consideration, the parties agree as follows: 

1. EMPLOYMENT BY THE COMPANY. 

1.1 Position. Subject to the terms set forth herein, the Company hereby employs Executive in the position of President and Chief
Executive Officer and Executive hereby accepts such employment. During Executive’s employment by the Company, Executive shall devote Executive’s full business energies, interest, abilities and productive time to the proper and efficient
performance of Executive’s duties under this Agreement. 
 1.2 Duties and Location. Executive shall do and perform
all services, acts or things necessary or advisable to manage and conduct the business of the Company and that are normally associated with the position of President and Chief Executive Officer. Executive shall report to the Company’s Board of
Directors (the “Board”). Executive shall work at the Company’s facility in Phoenix, Arizona, provided that the Company may from time to time require Executive to travel temporarily to other locations in connection with
the Company’s business. 
 1.3 Policies and Procedures. The employment relationship between the parties shall be
governed by this Agreement and by the policies and practices established by the Company and/or the Board. In the event that the terms of this Agreement differ from or are in conflict with the Company’s policies or practices, this Agreement
shall control. 
 1.4 Exclusive Employment. Except with the prior written consent of the Board, Executive will not during
employment with the Company undertake or engage in any other employment, occupation or business enterprise, other than ones in which Executive is a passive investor. 

  
 1 

 1.5 Agreement not to Participate in Company’s Competitors. During
Executive’s employment with the Company, Executive agrees not to acquire, assume or participate in, directly or indirectly, any position, investment or interest known by Executive to be adverse or antagonistic to the Company, its business, or
prospects, financial or otherwise, or in any company, person, or entity that is, directly or indirectly, in competition with the business of the Company or any of its Affiliates (as defined below). Ownership by Executive, in professionally managed
funds over which the Executive does not have control or discretion in investment decisions, or as a passive investment, of less than two percent (2%) of the outstanding shares of capital stock of any corporation with one or more classes of its
capital stock listed on a national securities exchange or publicly traded on a national securities exchange or in the over-the-counter market shall not constitute a breach of this Section. For purposes of this Agreement,
“Affiliate,” means, with respect to any specific entity, any other entity that, directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with such specified entity.

 1.6 Covenant not to Compete. During the term of this Agreement and for a period of one (1) year thereafter,
Executive shall not engage in competition with the Company and/or any of its Affiliates, either directly or indirectly, in any manner or capacity, in any phase of the business of developing, manufacturing and marketing of (a) products
incorporating tetrahydrocannabinol (THC) or derivatives or synthetic versions thereof, (b) spray technologies for use in drug delivery of pain medication, or (c) any new molecules which were in development at the time of departure, except
with the prior written consent of the Board. 
 2. AT-WILL EMPLOYMENT.

 Executive’s employment relationship with the Company is, and shall all times remain, at will. This means that either
Executive or the Company may terminate the employment relationship at any time, for any reason or for no reason, with or without cause or advance notice. 
 3. COMPENSATION AND BENEFITS. 

3.1 Salary. The Company shall pay Executive a base salary at the annualized rate of Three Hundred and Sixty Five Thousand Dollars
($365,000.00) (the “Base Salary”), less payroll deductions and all required withholdings, payable in regular periodic payments in accordance with the Company’s normal payroll practices. The Base Salary shall be prorated
for any partial year of employment on the basis of a 365-day fiscal year. The Base Salary may be adjusted from time to time in the Company’s discretion. 
 3.2 Performance Bonus. For the year 2011, Executive will be eligible to receive an additional cash bonus of up to 80% of his Base Salary (the “Bonus”) subject to standard
payroll deductions and applicable tax withholdings, based on Executive’s overall performance as determined by the Board and/or the compensation committee of the Board (the “Compensation Committee”), including by
reference to the attainment of milestones which may be established following the Effective Date by the Board and/or the Compensation Committee. In order to earn and receive the Bonus, Executive must remain employed by the Company as an employee in
good standing through the end of the calendar year and the payout date for the Bonus (the “Bonus Payout Date”), is to be paid no later than the end of the first quarter of 2012. The determination of whether Executive has met
any milestones, and the bonus amount (if any) that will be paid, shall be determined by the Board and/or the Compensation Committee in its sole and absolute discretion. 

  
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 3.3 Standard Company Benefits. Executive shall, in accordance with Company policy and
the terms of the applicable plan documents, be eligible to participate in benefits under any benefit plan or arrangement that may be in effect from time to time and made available to the Company’s employees. 

3.4 Expense Reimbursements. The Company will reimburse Executive for all reasonable business expenses Executive incurs in
conducting his duties hereunder, pursuant to the Company’s usual expense reimbursement policies. 
 4.
PROPRIETARY INFORMATION OBLIGATIONS. 
 As a condition of employment
Executive agrees to execute and abide by the Company’s Proprietary Information and Inventions Agreement (“PIIA”). Executive acknowledges and agrees that his obligations under the PIIA are retroactively effective to and
including his first day of employment with the Company. 
 5. COMPENSATION UPON
TERMINATION. 
 5.1 Termination Without Cause or Resignation For Good Reason. If the Company
terminates Executive’s employment without Cause (as defined below), or if Executive resigns his employment for Good Reason (as defined below), then the Company shall pay Executive any base salary and accrued and unused vacation benefits earned
through the date of termination, at the rate in effect at the time of termination, less standard deductions and withholdings. In addition, if Executive furnishes to the Company an executed waiver and release of claims in a form to be provided by the
Company (the “Release”) within the time period specified therein, but in no event later than forty-five (45) days following Executive’s termination, and if Executive allows such Release to become effective in
accordance with its terms, then Executive shall be entitled to: (1) severance in the form of continuation of Executive’s salary (at the Base Salary rate in effect at the time of termination) for a period of twelve (12) months
following the termination date; (2) an additional severance payment equal to Executive’s target bonus for the year in which the qualifying termination or resignation is effective, pro rated for the number of days Executive was employed by
the Company in such year; and (3) accelerated vesting of any unvested shares subject to any outstanding stock options and/or other equity awards, such that, on the effective date of the Release, the Executive shall be vested in one hundred
percent (100%) of the shares subject to such options and/or awards. The severance payments will be subject to standard payroll deductions and withholdings and will be made on the Company’s regular payroll cycle, provided, however, that any
payments otherwise scheduled to be made prior to the effective date of the Release shall accrue and be paid in a lump sum on the first payroll period that follows such effective date. 

5.2 Termination Other Than Without Cause or Resignation Other Than For Good Reason. If
Executive’s employment with the Company ends for any reason or in any circumstance other than those specified in Section 5.1 above, including but not limited to a termination by the Company for Cause or a resignation by Executive
without Good Reason, the Company shall pay Executive any base salary and accrued and unused vacation benefits earned through the date of termination, at the rate in effect at the time of termination, less standard deductions and withholdings. The
Company shall thereafter have no further obligations to Executive under this Agreement, except as otherwise provided by law. 

  
 3 

 6. DEFINITIONS. 

For purposes of this Agreement, the following terms shall have the following meanings: 

6.1 Cause. “Cause” shall mean the occurrence of any of the following, as determined by the Board:
(i) Executive’s conviction of any felony or any crime involving fraud or dishonesty; (ii) Executive’s participation (whether by affirmative act or omission) in a fraud, act of dishonesty or other act of misconduct against the
Company and/or its affiliates; (iii) conduct by Executive which, based upon a good faith and reasonable factual investigation by the Board, demonstrates Executive’s gross unfitness to serve; (iv) Executive’s violation of any
statutory or fiduciary duty, or duty of loyalty, owed to the Company; (v) Executive’s breach of any material term of any material contract between such Executive and the Company; (vi) Executive’s repeated violation of any
material Company policy; and/or (vii) Executive’s repeated failure to adequately perform his job duties. Whether a termination is for Cause shall be decided by the Board in its sole and exclusive judgment and discretion. 

6.2 Good Reason. “Good Reason” for Executive to terminate his employment hereunder shall mean the
occurrence of any of the following events without Executive’s consent: (i) a material reduction by the Company of Executive’s Base Salary as initially set forth herein or as the same may be increased from time to time, provided,
however, that if such reduction occurs in connection with a Company-wide decrease in Executive compensation, such reduction shall not constitute Good Reason for Executive to terminate his employment; (ii) a material breach of this Agreement by
the Company; or (iii) a material reduction that amounts to an adverse change in Executive’s duties, authority, or responsibilities relative to Executive’s duties, authority, or responsibilities in effect immediately prior to such
reduction. 
 Provided, however, that, any such termination by Executive shall only be deemed for Good Reason pursuant to this
definition if: (1) Executive gives the Company written notice of his intent to terminate for Good Reason within thirty (30) days following the first occurrence of the condition(s) that he believes constitute(s) Good Reason, which notice
shall describe such condition(s); (2) the Company fails to remedy such condition(s) within thirty (30) days following receipt of the written notice (the “Cure Period”); and (3) Executive voluntarily terminates
his employment within thirty (30) days following the end of the Cure Period. 
 7. GENERAL
PROVISIONS. 
 7.1 Representations and Warranties. Executive represents and warrants that Executive is
not restricted or prohibited, contractually or otherwise, from entering into and performing each of the terms and covenants contained in this Agreement, and that Executive’s execution and performance of this Agreement will not violate or breach
any other agreements between the Executive and any other person or entity. 
 7.2 Survival. Sections 4, 5, 6 and 7 of
this Agreement will survive the termination of this Agreement. 
 7.3 Miscellaneous. This Agreement, along with the PIIA,
constitutes the complete, final and exclusive embodiment of the entire agreement between Executive and the Company with regard to its subject matter. It is entered into without reliance on any promise or representation, written or oral, other than
those expressly contained herein, and it supersedes any other such promises, warranties or representations. This Agreement may not be modified or amended except in a writing signed by both Executive and a duly authorized officer of the Company. This
Agreement will bind the heirs, personal representatives, successors and assigns of both Executive and the Company, and inure to the benefit of both Executive and the Company, and 

  
 4 

 
to his and its heirs, successors and assigns. If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other
provision of this Agreement and the provision in question will be modified so as to be rendered enforceable. This Agreement will be deemed to have been entered into and will be construed and enforced in accordance with the laws of the State of
Arizona as applied to contracts made and to be performed entirely within Arizona. Any ambiguity in this Agreement shall not be construed against either party as the drafter. Any waiver of a breach of this Agreement shall be in writing and
shall not be deemed to be a waiver of any successive breach. This Agreement may be executed in counterparts and facsimile signatures will suffice as original signatures. 
 7.4 Section 409A. The severance benefits and other payments payable under this Agreement are intended to qualify for an exemption from application of Section 409A or comply with its
requirements to the extent necessary to avoid adverse personal tax consequences under Section 409A, and any ambiguities herein shall be interpreted accordingly. Notwithstanding anything to the contrary herein, the following provisions apply to
the extent benefits provided herein are subject to Section 409A of the Code and any state law of similar effect (collectively “Section 409A”). Severance benefits shall not commence until Executive has a
“separation from service” for purposes of Section 409A. Each installment of severance benefits is a separate “payment” for purposes of Treas. Reg. Section 1.409A-2(b)(2)(i), and the severance benefits are intended to
satisfy the exemptions from application of Section 409A provided under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9). However, if such exemptions are not available and Executive is, upon separation from
service, a “specified employee” for purposes of Section 409A, then, solely to the extent necessary to avoid adverse personal tax consequences under Section 409A, the timing of the severance benefits payments shall be delayed
until the earlier of (i) six (6) months and one day after Executive’s separation from service, or (ii) Executive’s death. 
 Executive shall receive severance benefits only if Executive executes and returns to the Company, within the applicable time period set forth therein but in no event more than forty-five (45) days
following the date of separation from service, the Release, and permits such Release to become effective in accordance with its terms (such latest permitted date, the “Release Deadline Date”). If the severance
benefits are not covered by one or more exemptions from the application of Section 409A and the Release could become effective in the calendar year following the calendar year in which Executive separates from service, the Release will not be
deemed effective any earlier than the Release Deadline Date. None of the severance benefits will be paid or otherwise delivered prior to the effective date of the Release. Except to the minimum extent that payments must be delayed because Executive
is a “specified employee” or until the effectiveness of the Release, all amounts will be paid as soon as practicable in accordance with the Company’s normal payroll practices. 

  
 5 

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

			
	INSYS THERAPEUTICS, INC.
		
	 By:
	 	 /s/ Martin McCarthy

	 Name:
	 	Martin McCarthy
	 Title:
	 	Chief Financial Officer

  

	
	 Accepted and agreed:

	
	 /s/ Michael Babich

Michael Babich

  
 6

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