Document:

EX-10.18

 Exhibit 10.18 
 ***Text Omitted and Filed Separately 
 with the Securities and Exchange
Commission. 
 Confidential Treatment Requested 
 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 

Index of Contents 
  

							
			
	 1.
	  	DEFINITIONS	  	 	1	  
			
	 2.
	  	MANUFACTURE AND SALE	  	 	3	  
			
	 3.
	  	EXCLUSIVITY	  	 	3	  
			
	 4.
	  	RIGHT OF FIRST REFUSAL	  	 	4	  
			
	 5.
	  	FORECASTS, ORDERS AND DELIVERY	  	 	5	  
			
	 6.
	  	PRICES AND PAYMENT	  	 	6	  
			
	 7.
	  	REGULATORY RESPONSIBILITY	  	 	7	  
			
	 8.
	  	QUALITY CONTROL REQUIREMENTS	  	 	8	  
			
	 9.
	  	REJECTION	  	 	9	  
			
	 10.
	  	WARRANTY	  	 	10	  
			
	 11.
	  	INDEMNIFICATION	  	 	12	  
			
	 12.
	  	REPRESENTATIONS	  	 	12	  
			
	 13.
	  	TERM AND TERMINATION	  	 	13	  
			
	 14.
	  	MISCELLANEOUS	  	 	14	  
		
	 EXHIBIT A: DEVICE SPECIFICATION
	  	 	18	  
		
	 EXHIBIT B: SELLER CERTIFICAT OF ANALYSIS + SELLER STANDARD SPECIFICATION
	  	 	19	  
		
	 EXHIBIT C: PURCHASE PRICE
	  	 	20	  
		
	 EXHIBIT D: EXCLUSIVITY
	  	 	23	  
		
	 EXHIBIT E: STANDARD TERMS AND CONDITIONS
	  	 	25	  
		
	 EXHIBIT F: STANDAR PACKAGING AND PACKING SPECIFICATIONS
	  	 	27	  

 SUPPLY AGREEMENT 

This SUPPLY AGREEMENT (the “Agreement”), effective as of the seventh day of March, 2011 (the “Effective
Date”), is made and entered into by and between Insys Therapeutics, Inc., a Delaware corporation having its principal place of business at 10220 South 51st St., Suite 2, Phoenix, AZ 85044-5231 (hereinafter called
“PURCHASER”) and Aptargroup, Inc., a Delaware corporation having its principal place of business at 475 West Terra Cotta, Suite E, Crystal Lake, IL, 60014-9695 (hereinafter called “SELLER”). PURCHASER and SELLER
being hereinafter called individually the “Party” and collectively the “Parties”. 
 WHEREAS SELLER is engaged
in the development and manufacture of dispensing systems for medical use, with particular reference to nasal and oral devices; 
 WHEREAS
PURCHASER desires to purchase the Device (defined below) for Purchaser’s own use with Drug Product (defined below), subject to the terms and conditions herein; and 
 WHEREAS SELLER desires to sell the Device to PURCHASER subject to the terms and conditions herein. 

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the Parties agree as follows: 

 

	1.	DEFINITIONS 

 As used herein, the
following terms and expressions shall have the meanings set forth below: 
  

	 	1.1	“Affiliate” means any person or entity that directly or indirectly through one or more intermediaries’ Controls, is Controlled by, or is under
common Control with a Party, where “Control” means the direct or indirect, legal or beneficial ownership of more than fifty percent (50%) of the outstanding voting rights in a company. 

 

	 	1.2	“cGMP” means the current good manufacturing practices stipulated or promulgated from time to time by the Regulatory Authorities that are applicable to
the manufacture of the Device. 

  

	 	1.3	“Cumulative Yearly Quantity” means the cumulative total Minimum Yearly Quantity amount of the Device PURCHASER must procure from the SELLER to maintain
pricing levels as defined in Exhibit C. 

  

	 	1.4	“Development Activities” means all research and development activities related to the development of a drug (including alternative delivery systems)
through preclinical and clinical stages. 

  

	 	1.5	“Device” means the device described in the Device Specifications. 

  
 1 

	 	1.6	“Device Equipment” means the moulds and assembly machines required at SELLER’s premises to manufacture the Device in commercial quantities.

  

	 	1.7	“Device Equipment Contribution” means the PURCHASER’s [...***...] reimbursement of research and development costs of SELLER related to, but
not limited to, the Device Equipment as described in Exhibit C. 

  

	 	1.8	“Design” means any combination of outer shape and color of the Device. 

 

	 	1.9	“Device Specifications” means the Device’s specifications as described in Exhibit A. 

 

	 	1.10	“Drug Product” means the sublingual formulation of Fentanyl owned by PURCHASER and currently known as “Fentanyl SL”.

  

	 	1.11	“Effective Date” means the day inserted on the introductory clause of this Agreement. 

 

	 	1.12	“FDA Approval” means the approval of the new drug application (NDA) for the Finished Product by the Food and Drug Administration in the United States
of America (FDA). 

  

	 	1.13	 “Fentanyl” means the compound with molecular formula C22H28
N2O and IUPAC name N-(1-2-phenlyethyl)-4-piperidinyl)-N-phenylpropanamide . 

  

	 	1.14	“Fentanyl Market” means the total unit sales of all non-extended release pharmaceutical products containing Fentanyl as an active pharmaceutical
ingredient. 

  

	 	1.15	“Finished Product” means the Drug Product in conjunction with the Device. 

 

	 	1.16	“Intellectual Property” means all present and future intellectual property rights and information, material and trade secrets that relate to the Device
or the Drug Product, as the case may be, whether or not patentable, including any know-how. 

  

	 	1.17	“Marketing Approval” means, with respect to any country, the approval of any marketing application for the Finished Product by the appropriate
Regulatory Authority in such country, including (a) FDA Approval, (b) approval of a marketing authorization application by the EU Medicines Agency and (c) approval of other product registration application with respect to any other
territory. 

  

	 	1.18	“Minimum Yearly Quantity” means the minimum amount of the Device PURCHASER must procure from the SELLER per year as defined in Exhibit C.

  

	 	1.19	“Purchase Price” shall have the meaning set forth in Exhibit C. 

 

	 	1.20	“Regulatory Authority” or “Regulatory Authorities” means the United States Food and Drug Administration and any divisions thereof, any
equivalent agency of any other country and any division thereof, and any other applicable regulatory body. 

  
 ***Confidential
Treatment Requested 
 2 

	 	1.21	“Success Fee” means the fee to be paid by PURCHASER to SELLER as specified in Exhibit D upon successful FDA Approval. 

 

	2.	MANUFACTURE AND SALE 

  

	 	2.1	Supply and Purchase Obligations. SELLER agrees to manufacture and sell to PURCHASER, and PURCHASER agrees to purchase from SELLER, such quantities of the Device
as PURCHASER may order from SELLER in accordance with the terms and conditions of this Agreement. 

  

	 	2.2	Device Equipment. Seller will utilize Device Equipment for the manufacture of the Device. Ownership of Device Equipment shall remain with SELLER. In case
PURCHASER wants to obtain ownership of Device Equipment, it shall purchase from SELLER Device Equipment at a price to be agreed between Parties and pay the applicable German VAT at the time of transfer of ownership. No such purchase shall occur
without SELLER’s prior written consent. In no case shall Device Equipment leave SELLER’s premises. 

  

	 	2.3	cGMP Compliance. SELLER shall assemble and package the Device in accordance with the Device Specifications and applicable cGMP as of the Effective Date.

  

	 	2.4	Intellectual Property. Any Intellectual Property owned or controlled as of the Effective Date by PURCHASER, SELLER, or their Affiliates shall remain the absolute
unencumbered property of SELLER and PURCHASER respectively. SELLER shall own all arising Intellectual Property rights related to the Device. SELLER reserves the right to prosecute, maintain and defend SELLER’s Intellectual Property, at
SELLER’s discretion and expense. SELLER’s IP is broadly drafted and includes trade secrets and patents related to the Device. SELLER may have strategic reasons to defend or not such IP and will need flexibility to exercise in its own
discretion, particularly any IP that has applications to other SELLER’s products. 

  

	3.	EXCLUSIVITY 

  

	 	3.1	SELLER is willing to supply the Device to PURCHASER on an exclusive basis per the conditions and limitations set forth in Exhibit D. For the avoidance of doubt,
such Exclusivity does not contain any license for patents or technologies. Neither Party grants any licenses to the other party. 

  

	 	3.2	The SELLER agrees to that the PURCHASER has Design exclusivity to the Device. 

 

	 	3.3	The exclusivity rights granted to PURCHASER hereunder shall be valid for the duration of the Exclusivity Term (as defined in Exhibit D); provided, that,
if the exclusivity provisions in this Agreement are challenged by a third party or any governmental authority, PURCHASER shall, at SELLER’s option, either (i) defend, indemnify and hold harmless the SELLER, its Affiliates and their
directors, officers, 

  
 3 

	 	
employees and agents from and against any losses suffered or resulting from such challenge, or (ii) convert the exclusive rights herein to non-exclusive rights. 

 

	4.	RIGHT OF FIRST REFUSAL 

  

	 	4.1	Grant of Right of First Refusal. PURCHASER hereby grants SELLER the exclusive option (but not the obligation) to supply to PURCHASER all of its requirements of a
Drug Delivery System (as defined below) for any Alternate Route of Administration (as defined below) in accordance with the terms of this Article 4. For the avoidance of doubt, PURCHASER may not purchase from a Third Party, or develop and
manufacture internally, a Drug Delivery System for any Alternate Route of Administration, unless (a) SELLER does not exercise its right of first refusal in accordance with Section 4.4 or (b) the feasibility study referred to in
Section 4.5 below is not successful unless (c) PURCHASER is engaged in active development of such Drug Delivery System prior to the Effective Date. 

 

	 	4.2	Alternate Route of Administration Drug Development. PURCHASER agrees to notify SELLER in accordance with Section 4.4 about all Development Activities of any
“Alternate Route of Administration” for a new drug that occur after the Effective Date. “Alternate Route of Administration” means any route of administration for a drug including, but not limited to the current sublingual
route of administration, intranasal, pulmonary, buccal, topical, ophthalmic, and otic drug delivery but excluding oral solid dosing. 

  

	 	4.3	Alternate Route of Administration Drug Delivery Systems. PURCHASER agrees to notify SELLER about all Development Activities that would utilize any “Drug
Delivery System” for any Alternate Route of Administration. “Drug Delivery Systems” used for Alternate Route of Administration includes but are not limited to all forms of spray devices, metered pumps, metered valves,
continuous valves, dry powder inhalers, unit and bi dose devices, and dispensing closures. 

  

	 	4.4	 Exercise of Right of First Refusal. PURCHASER shall deliver a written notice informing the SELLER of any Development Activities for a new drug
involving an Alternate Route of Administration within [...***...] of starting any such activities, which notice shall include information describing such Development Activities and specify whether any Drug Delivery System is preferred or is
then being researched or assessed. Within [...***...] following SELLER’s receipt of such notice, SELLER shall notify PURCHASER of its intention to exercise the right of first refusal set forth in Section 4.1. If SELLER decides to
exercise such right, then (a) PURCHASER shall provide to SELLER all information related to the applicable Development Activities relevant for the design or manufacture of the Drug Delivery System and (b) SELLER shall have [...***...]
from the date all necessary information and materials are provided by PURCHASER to present a Drug Delivery 

  
 ***Confidential
Treatment Requested 
 4 

	 	
System for such Alternate Route of Administration to the PURCHASER, but in no event later than [...***...] from the date of SELLER’s notice unless PURCHASER is responsible for any
delays. 

  

	 	4.5	Feasibility Studies. If SELLER provides to PURCHASER within the allotted time a Drug Delivery System for use with any such Alternate Route of Administration
Development Activities, PURCHASER shall perform a feasibility study with SELLER’s Drug Delivery System in accordance with the terms of a feasibility agreement to be negotiated by the Parties in good faith. If such feasibility study is
successful (as defined in the feasibility agreement), PURCHASER will be required to move forward with SELLER’s Drug Delivery System and the Parties shall then negotiate a supply agreement under terms similar to this Agreement. If the
feasibility study is unsuccessful, PURCHASER is free to seek alternate partners for such Drug Delivery System. 

  

	5.	FORECASTS, ORDERS AND DELIVERY 

  

	 	5.1	Estimates and Forecasts. Prior to FDA Approval and upon SELLER’s request, beginning on the first day of each calendar quarter, PURCHASER shall provide
SELLER a non-binding written rolling estimate of purchases of the Device for the [...***...] following the calendar quarter in which such estimate is submitted (the “Estimate”). The Estimate shall specify the desired delivery
dates for each month submitted. PURCHASER shall use its best efforts to assure that each Estimate is accurate, provided however, that the Parties agree that such Estimate shall not constitute an obligation of PURCHASER to purchase the estimated
quantities contained in the Estimate. 

 Following FDA Approval, on the first day of each calendar quarter,
PURCHASER shall provide SELLER a written rolling forecast of purchases of the Device for the [...***...] following the calendar quarter in which such forecast is submitted (the “Forecast”). The Forecast shall specify the
desired delivery dates for each month submitted. PURCHASER shall use its best efforts to assure that each Forecast is accurate, provided however, that the Parties agree that such Forecast (other than the quantities set forth in the Purchase Order)
shall not constitute an obligation of PURCHASER to purchase the estimated quantities contained in the Forecast and that SELLER may charge PURCHASER for otherwise un-reimbursed charges incurred due to reasonable commitments made by SELLER to
suppliers based on such Forecast. PURCHASER agrees that the first [...***...] of each Forecast shall be a firm purchase order of the Device by PURCHASER for which SELLER is authorized to commence production, and which PURCHASER shall purchase
(the “Purchase Order”). 
  

	 	5.2	 Delivery. SELLER shall manufacture, package and deliver ordered quantities of the Device as long as such orders are within the scope of
confirmed Purchase Orders. SELLER shall promptly notify PURCHASER if it will be unable to deliver any part of an order exceeding the quantities set forth on the confirmation of the Purchase Order. SELLER shall not be obligated to supply in any month
any quantity of the 

  
 ***Confidential
Treatment Requested 
 5 

	 	
Device exceeding [...***...] of the Purchase Order, and PURCHASER shall purchase at least [...***...] of the quantities set forth in the Purchase Order. SELLER will use its reasonable
commercial efforts to deliver the Device within the time schedule set forth in the confirmation of the Purchase Order. 

  

	 	5.3	Terms of Delivery. Unless otherwise specified in the Purchase Order, SELLER of the Device to PURCHASER shall be via truck, and shall be delivered EXW Congers, NY
manufacturing site (INCOTERMS 2010) to the place of destination in the United States of America named in the Purchase Order. In the event PURCHASER requests SELLER to transport the Device to PURCHASER via air, PURCHASER shall bear all additional
costs of such air transportation. SELLER shall arrange for transportation of the Device by insured common carrier, or SELLER’s truck to PURCHASER’s specified plant or other designated destination in the United States of America. In the
event PURCHASER requires delivery to destination outside the United States of America, new delivery terms shall be negotiated. The Purchase Price for the Device is based on EXW Congers, NY manufacturing site (INCOTERMS 2010). If the Device is
manufactured outside the United States, SELLER and PURCHASER shall negotiate in good faith to agree on appropriate terms. 

  

	 	5.4	Shipment. SELLER shall ship the Device in multiples of full production lots, as defined in Exhibit C. SELLER shall deliver with each lot a Certificate of
Analysis substantially in the form attached hereto as Exhibit B. 

  

	6.	PRICES AND PAYMENT 

  

	 	6.1	Purchase Price. The Purchase Price for the Device is set forth in Exhibit C. 

 

	 	6.2	Payment for the Device. Payment related to the Device shall be made in full within [...***...] of the date of SELLER’s invoice. SELLER shall date and
send invoices for the Device upon shipment of the Device. 

  

	 	6.3	Taxes. The Purchase Price for the Device does not include any property, license, privilege, sales, service, use, excise, value added, gross receipts, or other
like taxes. PURCHASER agrees to pay or reimburse SELLER for any such taxes that SELLER is required to pay or collect or that are required to be withheld. 

  

	 	6.4	Payment of Success Fee. PURCHASER shall pay the Success Fee within [...***...] of the date of the SELLER’s invoice. SELLER shall date and send
invoices for the Success Fee upon the terms defined in Exhibit D. 

  

	 	6.5	Device Equipment Contribution. PURCHASER shall pay the Device Equipment Contribution within [...***...] of the date of the SELLER’s invoice. SELLER
shall date and send invoices upon the milestones defined in Exhibit C. 

  

	 	6.6	Currency. All payments hereunder shall be made in United States Dollars (USD). 

  
 ***Confidential
Treatment Requested 
 6 

	 	6.8	Interest. If PURCHASER fails to pay the full invoiced amount for the Device, or any part thereof, within [...***...] after the due date, SELLER shall be
entitled (without prejudice to any other right or remedy it may have whether under the terms of this Agreement or otherwise) to charge, in addition to any monies due hereunder, interest on the outstanding amount at the rate of [...***...] or
the highest applicable rate allowed by law, whichever is less, calculated on a daily basis from such date until the date actual payment is made. 

  

	 	6.8	Price Revision Due to Changes in Device Specifications. 

  

	 	6.8.1	By PURCHASER. 

 PURCHASER may
request a change, in writing, to the Device Specifications, the manufacturing procedures or control procedures. SELLER will use commercially reasonable efforts to implement the change subject to pricing adjustments, which will be negotiated in good
faith by SELLER and PURCHASER. 
  

	 	6.8.2	By SELLER. 

 SELLER will notify
PURCHASER in writing prior to implementing any change affecting the chemical, biological or physical aspects of the Device. SELLER will not make any changes to the Device Specifications without PURCHASER’s prior written consent shall not be
unreasonably withheld or delayed. SELLER will implement the change subject to pricing adjustments, which will be negotiated in good faith by SELLER and PURCHASER. 
  

	 	6.8.3	By Regulatory Authorities. 

 In
the event of changes required by cGMP’s or other applicable laws or regulations, or in the requirements for the Device, whether written or un-written, by the Regulatory Authorities, SELLER shall have the right to adjust the Purchase Price, such
adjustment being negotiated in good faith by SELLER and PURCHASER. 
  

	7.	REGULATORY RESPONSIBILITY 

  

	 	7.1	Regulatory Responsibility. SELLER shall be responsible, at its sole expense, for complying with applicable regulatory requirements relating to the manufacture of
the Device as applicable in SELLER’s facilities where the Device is manufactured and, shall use commercially reasonable efforts to perform all of its responsibilities and obligations, including applicable design, development, manufacture,
testing, quality control and documentation activities relating to the Device under or contemplated by this Agreement substantially in accordance with all relevant quality standards that must be met to secure regulatory approval worldwide.

 PURCHASER shall be responsible, at its sole expense, for complying with all other applicable regulatory
requirements relating to the use and sale or resale of the Finished Product. 

  
 ***Confidential
Treatment Requested 
 7 

	 	7.2	Import and Export Laws. PURCHASER shall comply, at its sole expense, with all export and import regulations and laws necessary to export and import components of
the Device to and from PURCHASER’s premises, including without limitation, procuring and maintaining all import and export licenses necessary to ship from the point of manufacture to PURCHASER’s premises in accordance herewith and the
payment of all duties, tariffs, surcharges and other customs and other governmental fees levied in connection with the exportation and importation of components of the Device from SELLER to PURCHASER’s premises, or such other location as
designated by PURCHASER. 

  

	8.	QUALITY CONTROL REQUIREMENTS 

  

	 	8.1	Quality 

  

	 	8.1.1	The Parties shall agree upon reasonable release tests to be performed by SELLER prior to shipment of the Device in accordance with applicable regulatory requirements
and subject to pricing conditions. Results of such testing will be supplied in the Certificate of Analysis with each shipment as seen in Exhibit B. 

  

	 	8.1.2	PURCHASER shall send prior written notice of any change requested to be made to Drug Product being delivered by the Device that PURCHASER suspects may affect the Device
Specifications. 

  

	 	8.1.3	Notwithstanding any provision to the contrary in this Agreement, SELLER shall not assign or otherwise delegate any of its obligations to ensure the Device’s
quality or compliance with Device Specifications to any third party other than an Affiliate without consent from the PURCHASER. 

  

	 	8.2	PURCHASER’s Inspections. 

  

	 	8.2.1	The Device shall be subjected to a quality control inspection by PURCHASER in accordance with the Device Specifications set forth in Exhibit A, within
[...***...] as from delivery of the Device to the location designated by PURCHASER in the applicable Purchase Order. 

  

	 	8.2.2	Upon reasonable prior notice, SELLER shall permit PURCHASER to review SELLER’s quality control procedures and records related to the Device for the purpose of
assuring satisfactory compliance with the Device Specifications and compliance with the provisions of the Quality Agreement. That review shall be conducted in a reasonable manner, during SELLER’s business hours, in the presence of a SELLER
representative and at PURCHASER’s own expense. 

  

	 	8.2.3	 Upon reasonable prior notice, SELLER may permit PURCHASER’s quality assurance personnel to visit SELLER’s production facility, to the extent
that such visit is reasonably required to assure compliance with regulatory requirements or to the extent a review of records alone is not adequate to 

  
 ***Confidential
Treatment Requested 
 8 

	 	
assure satisfaction with such quality control requirements. Such visit shall be conducted in a reasonable manner, during SELLER’s business hours, in the presence of a SELLER representative,
at PURCHASER’s own expense and shall be limited to the equipment, records or production actually used in the manufacture of the Device. 

  

	 	8.2.4	SELLER shall (i) participate and cooperate with PURCHASER’s personnel who may visit SELLER’s production facility as provided in this Section 8,
(ii) take corrective action in a timely manner as may be reasonably required by PURCHASER to comply with the provisions of this Agreement and with cGMP requirements when applicable, subject to pricing conditions in Sections 4 and Exhibit
C, and (iii) when requested by PURCHASER, describe in writing, any appropriate corrective action planned or taken. 

  

	 	8.3	Regulatory Inspections. 

  

	 	8.3.1	In the event that any of SELLER’s products, facilities and/or processes that are used for the manufacture of the Device are the subject of an inspection related to
PURCHASER by any Regulatory Authority or any other duly authorized agency of any national, state, or local government, SELLER shall promptly notify PURCHASER of such inspection and shall supply PURCHASER with copies of any correspondence or portions
of correspondence that relate to the Device, as well as SELLER’s proposed response, if any. 

  

	 	8.3.2	In the event that any of PURCHASER’s facilities that are used for the storage of the Device or the manufacturing of the Finished Product are the subject of an
inspection by any Regulatory Authority or any other duly authorized agency of any national, state, or local government, PURCHASER shall promptly notify SELLER of such inspection and shall supply SELLER with copies of any correspondence or portions
of correspondence that relate to the Device, as well as PURCHASER’s proposed response, if any. 

  

	 	8.3.3	In the event that either Party receives any written communications from any Regulatory Authority in connection with the manufacture, use, or sale of the Device for
PURCHASER, it shall provide the other Party with a copy of each such communication and the proposed response, if any. 

  

	 	8.3.4	Records. SELLER shall retain samples of the Device, batch and other manufacturing and analytical records, records of shipments of the Device and validation data
relating to the Device for a minimum of [...***...] and shall make such data available to PURCHASER and Regulatory Authorities upon PURCHASER’s reasonable request or if required by law. 

 

	9.	REJECTION 

  

	 	9.1	 General. In the event that any portion of the Device delivered to PURCHASER by SELLER shall fail to conform with the Device Specifications,
PURCHASER may 

  
 ***Confidential
Treatment Requested 
 9 

	 	
reject that portion by giving written notice within [...***...] following receipt of Products and sending, at SELLER’s expense, the defective samples to SELLER after SELLER’s
acceptance of rejection. Failure to report claim within that period, PURCHASER shall be considered as having accepted delivery and SELLER shall not be held liable with respect to the defective Device. 

 

	 	9.2	Unattributed Defects. In case the Device does not comply with the Device Specifications due to hidden or latent defects that were not noticeable at the time of
inspection by PURCHASER pursuant to Section 8.2, PURCHASER shall immediately inform SELLER of its claims in this respect, at the latest within the later period of [...***...] following the discovery of the defect or any third party or
regulatory claim or liability arising from the defect. Failing any claims within [...***...] in this respect, it shall not be possible to engage SELLER’s liability. Notwithstanding the foregoing, SELLER shall not be liable for any defect
appearing more than [...***...] after the Device (stored and handled in accordance with commercially reasonable standards) is received at PURCHASER’s premises. 

 

	 	9.3	Claims. Any and all claims shall be substantiated and explained in reasonable detail as to the nature of the defects or failure of the Device to comply with the
Device Specifications. PURCHASER shall reasonably provide SELLER with any and all substantiation regarding the reality of the anomalies recorded, notably with defective samples and shall ensure that SELLER has reasonable means of confirming the
existence of such anomalies. 

  

	 	9.4	Rejected Device. If PURCHASER rejects the Device in accordance with this Section 9, and after SELLER’s formal acceptance of such rejection, then, at
SELLER’s expense and discretion, PURCHASER shall return to SELLER any such shipment, or any part thereof, that does not comply with the Device Specifications, and receive in exchange therefore at the option of PURCHASER or SELLER, either
(i) a complete refund of the Purchase Price, taxes paid and not recoverable, and shipping costs associated with the Device in form of a credit note, or (ii) fully compliant replacement Device. If the Parties so agree, PURCHASER shall
destroy any non-conforming Device, at SELLER’s expense and in accordance with all applicable legal requirements. While SELLER is investigating the rejection, payments of purchased goods subject to such rejection shall be put on hold until claim
response is given. 

  

	 	9.5	Disputes. If SELLER disputes PURCHASER’s rejection, the Parties shall submit samples of the rejected Device to a mutually acceptable independent laboratory
for analysis, whose decision in the matter shall be final and binding. The costs of such analysis shall be borne by SELLER unless such analysis shows that the Device conforms to the Device Specifications, in which case PURCHASER shall bear the cost
of such analysis. 

  

	10.	WARRANTY 

  

	 	10.1	SELLER’s Warranty. 

  
 ***Confidential
Treatment Requested 
 10 

	 	10.1.1	SELLER warrants to PURCHASER that the Device, at the time of delivery to PURCHASER as provided in Section 5.2, will conform in all respects to the Device
Specifications. 

  

	 	10.1.2	SELLER does not warrant that the Device may be suitable for the manufacture of any intermediate or finished product (including the Finished Product).

  

	 	10.1.3	It is the exclusive responsibility of PURCHASER to ensure that (i) the Device shipped from SELLER according to the Device Specifications is adapted to the use
which it is intended for, (ii) that the Device Specifications are adapted to the storage of the Device, (iii) that the Device is compatible with the Drug Product, and (iv) that the Drug Product and the Finished Product (other than the
Device) comply with all applicable laws. 

  

	 	10.1.4	SELLER may, but is not required to, perform tests for compatibility between the Device and the Drug Product. SELLER MAKES NO REPRESENTATION OR WARRANTY THAT ANY TESTS
PERFORMED BY OR ON BEHALF OF SELLER ARE ADEQUATE OR SUFFICIENT FOR PURCHASER’S PURPOSES. PURCHASER AGREES NOT TO HOLD SELLER RESPONSIBLE FOR THE ADEQUACY OR SUFFICIENCY OF SUCH TESTS, OR THE RESULTS DERIVED FROM SUCH TESTS.

  

	 	10.2	Exclusions. The warranty provided under Section 10.1(a) shall not apply to any Device that (i) has been tampered with or otherwise altered by
PURCHASER, its Affiliates or their customers, distributors agents; (ii) has been subjected to misuse, negligence, malice or accident by PURCHASER, its Affiliates or their customers, distributors agents; or (iii) has been stored, handled or
used by PURCHASER, its Affiliates or their customers, distributors agents in a manner contrary to the Device Specifications and the Device Specifications or SELLER’s written instructions which can, among others, define maximum periods for the
use of the Device. 

  

	 	10.3	Limitations on Warranty. THE FOREGOING WARRANTIES ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES OF QUALITY AND PERFORMANCE, WRITTEN, ORAL OR IMPLIED, AND ALL
OTHER WARRANTIES, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT, ARE HEREBY DISCLAIMED BY SELLER. 

 

	 	10.4	LIMITATION OF LIABILITY 

  

	 	10.4.1	 No Consequential Damages. IN NO EVENT SHALL SELLER BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, whether in warranty,
contract, negligence, tort, strict liability, or otherwise including, but not limited to, loss of profits or revenue, delays, or 

  
 11 

	 	
claims of customers of PURCHASER or its Affiliates or other third parties for such or other damages. This limitation of liability shall not apply to claims of liability for death or personal
injury caused by SELLER’s gross negligence, willful act, or omission. 

  

	 	10.4.2	Limitation of Liability. Each Party’s cumulative liability to the other Party for all claims relating to the Device and this Agreement, including any cause
of action based on any theory of contract, tort, or strict liability, shall not exceed One Million US Dollars ($1,000,000). This limitation of liability shall not apply to claims of liability for death or personal injury caused by either
Party’s gross negligence, willful act, or omission. In this respect, PURCHASER expressly undertakes to inform all of its customers, Affiliates or other third parties of the conditions and maximum periods defined for the use of the Device, by
any appropriate means making it possible to inform the said customers, Affiliates or other third parties, prior to use of the Device. 

  

	11.	INDEMNIFICATION 

  

	 	11.1	SELLER. Subject to the liability limitations set forth in clause 10.4, SELLER shall defend, indemnify and hold PURCHASER and its Affiliates, and their
shareholders, directors, officers, employees and agents harmless from and against any and all liability, loss, damage, recalls, causes of action, suits, claims, demands, settlements, costs and expenses or judgments arising from injury or death to
persons or damage to property, of any nature whatsoever, resulting from the failure of the Device to conform to the warranty set forth under Section 10.1, provided that PURCHASER shall have given prompt notice in writing to SELLER of any such
claim. 

  

	 	11.2	PURCHASER. PURCHASER shall defend, indemnify and hold SELLER and its Affiliates, their shareholders, directors, officers, employees and agents harmless from and
against any and all liability, loss, damage, expense, causes of action, suits, claims, demands, settlements, costs and expenses or judgments of any nature whatsoever, resulting from the Finished Product or its marketing, sale, clinical testing,
clinical use or other use or misuse, including any defect, failure to warn or other Device liability claims, except to the extent SELLER is required to indemnify PURCHASER under Section 10.1 of this Agreement, provided that SELLER shall have
given prompt notice in writing to PURCHASER of any such claim. 

  

	 	11.3	Insurance. Each of SELLER and PURCHASER will use its best efforts, by itself or through its Affiliates’ group insurance policies and at its sole cost and
expense, to procure and maintain adequate General & Products Liability Insurance. In addition, SELLER will use its best efforts, by itself or through its Affiliates’ group insurance policies and at its sole cost and expense, to procure
and maintain adequate Property All Risks Insurance in order to cover the value of the Device Equipment and any components thereof in SELLER’s possession or for which SELLER bears the risk of loss. 

 

	12.	REPRESENTATIONS 

  
 12 

	 	12.1	Each Party hereby represents and warrants that it has the full power and authority to enter into and perform this Agreement, and each Party knows of no contract,
agreement, promise, undertaking or other fact or circumstance that would prevent the full execution and performance of this Agreement. 

  

	13.	TERM AND TERMINATION 

  

	 	13.1	Term. This Agreement shall, unless otherwise terminated, remain in full force and effect for a period of five (5) years from the Effective Date (the
“Initial Term”), at which time, the Parties shall discuss in good faith negotiations an extension of this Agreement. 

  

	 	13.2	Early Termination. Without prejudice to any other rights it may have hereunder or at law or in equity, either Party may terminate this Agreement:

  

	 	13.2.1	immediately if the other Party makes an assignment for the benefit of its creditors or a receiver or custodian is appointed for it or its business is placed under
attachment, garnishment or other process involving a significant portion of its business; 

  

	 	13.2.2	after [...***...] written notice from the terminating Party specifying an alleged material breach (including payment breach) and stating its intent to so
terminate, if the other Party fails to commence and diligently pursue to remedy any such material breach of this Agreement; 

  

	 	13.2.3	immediately if the other Party becomes insolvent, an order for relief is entered against the other Party under any bankruptcy or insolvency laws or laws of similar
import; or 

  

	 	13.2.4	upon [...***...] written notice from the terminating Party if the Device does not receive FDA Approval by January 1, 2013. 

 

	 	13.3	Effect of Termination. Neither termination nor non-renewal of this Agreement shall release either Party from fulfilling any obligations it may have incurred
prior to any such termination, nor prejudice any other rights or remedies that either Party may have at law or in equity. 

 In case of early termination by PURCHASER not due to a breach by SELLER, PURCHASER will compensate SELLER for any costs directly related to the value of the goods or components already incurred by SELLER
on the basis of the Purchase Orders received from PURCHASER according to Section 5.1 above. PURCHASER will also compensate SELLER for any costs associated with stock at SELLER’s or at SELLER’s sub suppliers, including, but not limited
to, rubber stoppers, glass vials, and steel needles; provided SELLER and SELLER’s sub suppliers shall be obligated to take all commercially reasonable measures to mitigate the damages resulting from such remaining inventory. 

  
 ***Confidential
Treatment Requested 
 13 

	 	13.4	Surviving Clauses. Notwithstanding any such termination, any provision set forth in this Agreement remaining to be performed in whole or in part, capable of
taking effect following termination, or which by its nature is contemplated to survive the termination of this Agreement shall survive and continue in full force and effect despite termination. 

 

	14.	MISCELLANEOUS 

  

	 	14.1	Notices. All notices, requests, demands, waivers, consents, approvals or other communications to any Party hereunder shall be in writing and shall be deemed to
have been duly given if delivered personally to such Party or sent to such Party by facsimile transmission, overnight courier or by registered or certified mail, postage prepaid, to the addresses set forth below (or to such other address as the
addressee may have specified in notice duly given to the sender as provided herein): 

 If to SELLER:

 AptarGroup, Inc. 
 475 West Terra Cotta, Suite E 
 Crystal Lake, IL 60014-9695 USA 

Attn: Chief Operating Officer 
 Phone No.: (815) 477 -0424 
 Fax No.: (815) 477-0481 

    With cc to: 
 Aptar Congers, a division of AptarGroup, Inc. 
 250 North Route 303 

Congers, NJ 10920-1408 USA 
 Attn: President, Aptar Pharma North America 
 Phone No.: (845) 639-3700

 Fax No: (845) 639-3900 
 If to PURCHASER: 
 Name: INSYS 

10220 South 51st Street, Suite 2 
 Pheonix, AZ 85044 USA 
 Attn: President 

Phone No.: (602) 910 2617 x9021 
 Fax No.: (602) 910-2627 
 Such notice, request, demand, waiver, consent,
approval or other communications will be deemed to have been given as of the date so delivered, sent by facsimile transmission with receipt confirmed, or [...***...] after so mailed. 

 

	 	14.2	Choice of Law. This Agreement, along with the Schedules and Exhibits attached, incorporated and referenced herein and all Purchase Orders issued hereunder shall
be governed and interpreted, and all rights and obligations of the Parties shall be determined, in accordance to the laws of the State of New York. 

  
 ***Confidential
Treatment Requested 
 14 

	 	14.3	Force Majeure. Neither Party shall be responsible or liable in any way for failure or delay in carrying out the terms of this Agreement resulting from any cause
or circumstance beyond that Party’s reasonable control, including, but not limited to, fire, flood, other natural disasters, war, labor difficulties, interruption of transit, accident, explosion, civil commotion, and acts of any governmental
authority; nor shall SELLER be responsible or liable in any way for failure or delay in carrying out the terms of this Agreement if due to any shortage or inability to obtain any raw materials (including energy), equipment or transportation;
provided, in each case, that the affected Party shall give prompt notice thereof to the other Party. No such failure or delay shall terminate this Agreement, and each Party shall complete its obligations hereunder as promptly as reasonably
practicable following cessation of the cause or circumstances of such failure or delay; provided, that if any of the above conditions continues to exist for more than [...***...] after the date of any notice given with regard thereto, either
Party may terminate this Agreement forthwith upon notice to the other. 

  

	 	14.4	Severability. In the event that any provision of this Agreement shall be found in any jurisdiction to be in violation of public policy or illegal or
unenforceable at law or in equity, such finding shall in no event invalidate any other provision of this Agreement in that jurisdiction, and this Agreement shall be deemed amended to the minimum extent required to comply with the law of such
jurisdiction, such provision being adjusted rather than voided if possible. 

  

	 	14.5	Entire Agreement. This Agreement, including any Schedules and Exhibits attached, incorporated or referenced herein, the Quality Agreement, and the
confidentiality agreement referenced in Section 14.9 set forth the entire agreement reached between the Parties with respect to the transactions contemplated hereby. This Agreement (including all Schedules and Exhibits) may not be amended or
modified except by written instrument duly executed by the Parties hereto stating that it is an amendment to this Agreement. 

 With the reservation of the specific provisions of this Agreement and of the Quality Agreement, SELLER’s general conditions of sales, attached as Exhibit E, shall apply to all sales closed in the
framework of this Agreement, to the exclusion of any and all general conditions of purchase which may be communicated by PURCHASER. 
 The terms of this Agreement shall take precedence over the Qualtiy Agreement, the confidentiality agreement referenced in Section 14.9 or the standard terms and conditions set forth in Exhibit E if
there is any conflict between them. 
  

	 	14.6	No Waiver. The failure of either Party hereto to enforce at any time, or for any period of time, any provision of this Agreement shall not be construed as a
waiver of such provision or of the right of such Party thereafter to enforce each and every provision. Any waiver by a Party of any of its rights under this Agreement in one or more instances shall be in a writing signed by such Party and shall not
be construed as constituting a continuing waiver or as a waiver in other instances. 

  
 ***Confidential
Treatment Requested 
 15 

	 	14.7	Assignment, Binding Effect. Neither Party shall assign this Agreement nor any of its respective rights or obligations hereunder without the prior written consent
of the other Party, which consent will not be unreasonably withheld, except to any Affiliate of the assigning Party or by operation of law or as otherwise permitted hereunder. Any such attempted assignment without such consent shall be void. This
Agreement and the rights herein granted shall be binding upon and shall inure to the benefit of PURCHASER and SELLER and their respective successors and permitted assigns. 

 

	 	14.8	Arbitration. Any dispute, controversy or claim arising out of or in connection with this Agreement, or the breach, termination or invalidity hereof, that the
Parties are unable to resolve between themselves, shall be settled by arbitration in accordance with the Rules of Arbitration of the International Chamber of Commerce, and judgment upon the award rendered by the arbitrator(s) may be entered in any
court having jurisdiction thereof. Such proceedings shall take place in New York, USA, and shall be conducted in English. The decision of the arbitration proceeding shall be final and binding upon the Parties. This clause shall not be construed to
limit the right of either Party to apply to any court of competent jurisdiction for injunctive relief for unauthorized use of confidential information. 

  

	 	14.9	Confidentiality. A separate agreement signed April 16, 2010 relating to confidentiality has been entered into by the Parties and that agreement constitutes
the entire agreement and understanding of the Parties relating to the subject matter of confidentiality and supersedes any previous agreement or understanding between the Parties in relation to such subject matter. 

[Signature page follows]. 

  
 16 

 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered as of the day and year first above
written. 
  

					
	/s/ Stephen J. Hagge	 		 	/s/ Michael Babich
	 APTARGROUP, INC.
 Name: Stephen
J. Hagge
 Title: Exec. V.P. & Chief Operating Officer
 Date: May 26, 2011
	 		 	 INSYS THERAPEUTICS, INC.

Name: Michael Babich
 Title: President and
CEO
 Date: 5/31/11

 [Signature page of Supply Agreement between AptarGroup, Inc. and Insys Therapeutics, Inc.]

  
 17 

 EXHIBIT A: DEVICE SPECIFICATION 

[...***...] 

  
 ***Confidential
Treatment Requested 
 18 

 EXHIBIT B: SELLER CERTIFICAT OF ANALYSIS + SELLER STANDARD 

SPECIFICATION 
 [...***...] 

  
 ***Confidential
Treatment Requested 
 19 

 EXHIBIT C: PURCHASE PRICE 
 [The purchase price for the Device (“Purchase Price”) is based on the procured annual quantities of the Device in accordance with Table C1 below: 

Table C.1 Device Purchasing Price Levels 
  

					
	 Price Level
	  	 Quantities (pieces)
	  	 Price ([...***...])

	 1
	  	[...***...]	  	$[...***...]
	 2
	  	[...***...]	  	$[...***...]
	 3
	  	[...***...]	  	$[...***...]
	 4
	  	[...***...]	  	$[...***...]
	 5
	  	[...***...]	  	$[...***...]

 Notwithstanding the above, SELLER grants PURCHASER a Purchase Price equal to Price Level [...***...] subject to
PURCHASER’s procurement of the yearly quantity of units of the Device from the SELLER as described below in Table C.2. Year 1 is defined as the time period leading up to FDA Approval and the first year from the date of FDA Approval of the
Finished Product. For this time period a price of $[...***...] will be offered as long as Year 1 Minimum Yearly Quantity is met. Year 2 is defined as the second year from the date following FDA Approval. For this time period a price of
$[...***...] will be offered as long as Year 2 Minimum Yearly Quantity is met. Year 3 is defined as the third year from the date following FDA Approval of the Finished Product. For this time period a price of $[...***...] will be offered
as long as Year 3 Minimum Yearly Quantity is met. Year 4 is defined as the fourth year from the date following FDA Approval of the Finished Product. For this time period a price of $[...***...] will be offered as long as Year 4 Minimum Yearly
Quantity is met. 
 Table C.2 Minimum Yearly Quantities 
  

							
	 Year
	  	 Minimum Yearly
Quantity
	  	 Cumulative Yearly
Quantity
	  	 Price ([...***...])

	 1
	  	[...***...]	  	[...***...]	  	$[...***...]
	 2
	  	[...***...]	  	[...***...]	  	$[...***...]
	 3
	  	[...***...]	  	[...***...]	  	$[...***...]
	 4
	  	[...***...]	  	[...***...]	  	$[...***...]

 In case PURCHASER has not met the Minimum Yearly Quantities set forth in Table C.2 for any reason other than for
SELLER’s fault, pricing for the quantities purchased will be adjusted to the appropriate pricing level as outlined in Table C.1 above and a supplemental invoice will be issued for the difference retroactively at the end of Year 1, Year 2, Year
3 and Year 4 and PURCHASER will pay the resulting difference to SELLER. At the end of the then current Year, SELLER shall calculate the Minimum Yearly Quantities based on the quantities of the Device delivered to PURCHASER pursuant to Purchase
Orders placed for such year. At such time, if PURCHASER has not met the Minimum Yearly Quantities, then SELLER shall send an invoice setting forth (i) a calculation of the actual shipped quantities of the Device at the applicable Purchase Price
and (ii) the difference between such due amount and any amounts paid by 

  
 ***Confidential
Treatment Requested 
 20 

 
PURCHASER as of such date. PURCHASER shall pay such invoiced amount in full within [...***...] of the date of SELLER’s invoice. 

In the event that Purchaser fails to fulfill the Minimum Yearly Quantities for [...***...] and [...***...], SELLER retains the right to
reevaluate the Price Levels as set forth above in Schedule C.1, taking into account the Producer Price Index (“All Other Plastics Product Manufacturing”) from the US Bureau of Labor Statistics. 

The Parties agree to meet in good faith to discuss extension of supply no later than [...***...] prior to the end of the Year 4 as set forth in
this Agreement. SELLER agrees to extend the supply term in one-year increments, beginning Year 5, provided, SELLER and PURCHASER find an agreement on terms and conditions similar to the ones set forth in this Agreement. In particular prices need to
be agreed by SELLER prior to any extension of this Agreement. Year 5 is defined as the fifth year following FDA Approval of the Finished Product. 
 The Parties agree that prices may be adjusted annually based on the Producer Price Index (“All Other Plastics Product Manufacturing”) from the US Bureau of Labor Statistics. 

The lot size for the Device is no less than [...***...] units and no more than [...***...] units. 

The SELLER’s standard packaging and packing specifications are attached in Exhibit F. 

Currency Adjustments. 
 SELLER shall
calculate the impact of such evolution and inform PURCHASER accordingly. For purposes of clarity, this mechanism is designed for the parties to share the risk of currency fluctuations. 
 Currency adjustments only apply for products related to the Device made and imported from Europe (“Imported Products”). As of the Effective Date, two (2) components of the device are
imported from Europe. 
 [...***...] 
 [...***...] 
 On [...***...] of each year of this Agreement (the
“Currency Adjustment Date”), the Purchase Price of Imported Products only will be revised to reflect fluctuation of the currency exchange rate between the US Dollar and the Euro, compared to the initial base exchange rate on
December 31st, 2009, which shall be [€1
=US$1.40] (the “Base Rate”). On each Currency Adjustment Date, the average exchange rate of the Euro to the US Dollar shall be calculated since the Effective Date or for the prior twelve (12) months. If such floating average
differs from the Base Rate then in effect by at least [...***...] then, and only then, will the percentage change (positive or negative) to the exchange rate over such twelve (12) month period shall be computed and [...***...] of
such percentage change shall be multiplied by the then current US Price to determine the actual US Price that SELLER will invoice to PURCHASER 

  
 ***Confidential
Treatment Requested 
 21 

 for all Devices shipped to PURCHASER for after such Currency Adjustment Date. Examples of the
calculation of the currency adjustment described herein are set forth below. 
 Sample Calculation for Currency Pricing Adjustment

 1) If the Floating Average Rate as of [...***...] = [...***...], then NO CHANGE ([...***...] g 1.40 < [...***...]). 
 2) If the Floating Average Rate as of [...***...] =
[...***...], the Price will be adjusted as follows: 
 [...***...] 
 Device Equipment Contribution 
 The Device Equipment Contribution to be paid by PURCHASER to
SELLER is US-$ [...***...]. This contribution includes SELLER’s standard validation process. Any extra work, such as, but not limited to, analytical testing, performance studies or extractable studies, shall be subject to reasonable
commercial terms. 
 Invoice Milestones for Device Equipment Costs 
 First Payment: US-$[...***...] 
 Milestone: the Effective Date. 

Second Payment: US-$[...***...] 

Milestone: first available samples of all components out of moulds. 
 Third payment: US-$[...***...] 
 Milestone: qualified components within specification.

 Fourth payment: US-$[...***...] 
 Milestone: Operational Qualification, Installation Qualification, Performance Qualification of assembly equipment. 
 All prices for Device Equipment are calculated using an exchange rate of 1€ = 1.40 US-$. On any day that any milestone payment for the Device Equipment is invoiced by SELLER to PURCHASER, the US-$
amount shall be calculated utilizing an exchange rate equal to the final daily exchange rate as published in the Wall Street Journal, or if the Wall Street Journal ceases to publish an exchange rate, such comparable publication. 

  
 ***Confidential
Treatment Requested 
 22 

 EXHIBIT D: EXCLUSIVITY 

SELLER is willing to supply the Device to PURCHASER on an exclusive basis (“Exclusivity”) for the specific application defined below and
in accordance with the following terms: 
  

	 	1.	Application, Drug molecule 

For sublingual/buccal unit dose application of liquid formulations of Fentanyl. 

 

	 	2.	Exclusivity Payments 

Notwithstanding the provisions set forth in Exhibit C or further provisions set forth in this Exhibit D, to retain the
exclusive rights to the Device globally will be as follows. 
 Upon receipt of FDA Approval of the Finished Product, a Success
Fee of [...***...] will be paid by the PURCHASER to the SELLER. The Success Fee will be paid by the PURCHASER in [...***...], with [...***...]. This will grant PURCHASER Exclusivity from the date of NDA submission of the Finished
Product to end of the first year from the date following FDA Approval of the Finished Product, Year 1. 
 To maintain Exclusivity
in the United States for all subsequent years, an annual purchase and delivery requirement of the Device shall be a minimum of [...***...] (the “Exclusivity Quantity or Exclusive Quantities”). Commercially available IMS data
will be purchased by the PURCHASER and distributed to the SELLER on a [...***...] basis of the non-extended release Fentanyl products. This includes the currently existing non-extended release Fentanyl products and future launched non-extended
release Fentanyl products. To maintain Exclusivity in the rest of the world, PURCHASER, in addition to the purchase of the minimum Exclusive Quantities, must actively seek Marketing Approval (e.g. public press release, European clinical trials, or
public licensing announcements) for the Finished Product in one or more major markets in Europe (e.g. France, Germany and the United Kingdom) within [...***...] of the FDA Approval of the Finished Product. 

In the event that the PURCHASER has not purchased the Exclusivity Quantity, Purchaser will pay shortfall compensation to Seller in the
amount of [...***...] of Devices not procured, with payment in full due within fifteen (15) days of notification from SELLER (the “Shortfall Fee”). In the event that Purchaser fails to fulfill the Exclusivity Quantity
requirement for [...***...] consecutive [...***...], SELLER retains the right to terminate any and all Exclusivity terms previously granted to Purchaser and reevaluate the pricing set forth in Exhibit C of this Agreement.

  
 ***Confidential
Treatment Requested 
 23 

 The SHORTFALL FEE shall be calculated on [...***...] basis, starting with
[...***...] with the issue of the first purchase order by PURCHASER. If the number of Devices per [...***...] exceeds the Exclusivity Quantity for the previous [...***...], such exceeding quantities shall not be taken into
consideration for the following [...***...]. In no event shall SHORTFALL FEE be due or owing in the event of a failure or inability of Seller to supply the Device during such [...***...] period. 

Exclusivity expires immediately, should regulatory approval be revoked or should the Finished Product be withdrawn from the market in the
US. 
  

	 	3.	Territory 

 To the extent
permitted by applicable law and as otherwise provided herein, the territory 
 of Exclusivity granted by SELLER is valid
worldwide. 
  

	 	4.	Timeline 

 Based on
payment of the Success Fee and on the minimum quantities purchased set forth above, Seller is willing to grant Exclusivity to Purchaser commencing upon date of NDA submission of the Finished Product, unless by the date of signature of this contract
SELLER has entered into other obligations with third parties which may be adversely affected by granting such Exclusivity. Exclusivity terms as stated in this Exhibit D are granted until the end of [...***...] or [...***...], whichever
comes first (“Exclusivity Term”). The Parties agree to meet in good faith to discuss extension of Exclusivity no later than [...***...] prior to the end of the Exclusivity term as set forth in this Agreement. 

  
 ***Confidential
Treatment Requested 
 24 

 EXHIBIT E: STANDARD TERMS AND CONDITIONS 

 

  
 25 

 

 

  
 26 

 EXHIBIT F: STANDARD PACKAGING AND PACKING SPECIFICATIONS 

 

	1.	Packing 

	1.1.	Bag Preparation 

	 	1.1.1.	[...***...] 

  

	 	1.1.2.	[...***...] 

  

	 	1.1.3.	[...***...] 

  

	 	1.1.4.	[...***...] 

  

	1.2.	Carton Sealing 

  

	 	1.2.1.	[...***...] 

	1.3.	Carton filling/ Pharmaceutical Packaging Area 

  

	 	1.3.1.	[...***...] 

  

	 	1.3.2.	[...***...] 

  

	 	1.3.3.	[...***...] 

  

	 	1.3.4.	[...***...] 

  

	 	1.3.5.	[...***...] 

  

	1.4.	Labeling and closing of carton 

  

	 	1.4.1.	[...***...] 

  

	 	1.4.2.	[...***...] 

  

	 	1.4.3.	[...***...] 

  

	 	1.4.4.	[...***...] 

  

	1.5.	Packaging Records 

  

	 	1.5.1.	[...***...] 

  

	1.6.	Palletization 

  

	 	1.6.1.	[...***...] 

  

	 	1.6.2.	[...***...] 

  

	1.7.	Shipment preparation 

  

	 	1.7.1.	[...***...] 

  
 ***Confidential
Treatment Requested 
 27 

	 	1.7.2.	[...***...] 

  

	 	1.7.3.	[...***...] 

  

	 	1.7.4.	[...***...] 

  

	 	1.7.5.	[...***...] 

  

	 	1.7.6.	[...***...] 

  

	 	1.7.7.	[...***...] 

  

	1.8.	Stretch Wrap 

  

	 	1.8.1.	[...***...] 

  

	 	1.8.2.	[...***...] 

  

	 	1.8.3.	[...***...] 

  

	1.9.	Paperwork 

  

	 	1.9.1.	[...***...] 

  

	 	1.9.2.	[...***...] 

  

	 	1.9.3.	[...***...] 

  

	1.10.	Bill of Lading 

  

	 	1.10.1.	[...***...] 

  

	 	1.10.2.	[...***...] 

  

	1.11.	Pick up by carrier 

  

	 	1.11.1.	[...***...] 

  
 ***Confidential
Treatment Requested 
 28 

	 	1.11.2.	[...***...] 

  

	 	1.11.3.	[...***...] 

  

	1.12.	Communication of Shipment 

  

	 	1.12.1.	[...***...] 

  

	 	1.12.2.	[...***...] 

  

	 	1.12.3.	[...***...] 

  

	1.13.	Palletization of Finished Products: 

  

	 	1.13.1.	[...***...] 

  

	 	1.13.2.	[...***...] 

  

	 	1.13.3.	[...***...] 

  

	 	1.13.4.	[...***...] 

  

	 	1.13.5.	[...***...] 

  

	 	1.13.6.	[...***...] 

  

	 	1.13.7.	[...***...] 

  

	 	1.13.8.	[...***...] 

  

	 	1.13.9.	[...***...] 

  
 ***Confidential
Treatment Requested 
 29EX-10.19

 Exhibit 10.19 

 

					
	

	  		  	

 LOAN AGREEMENT 
 This Agreement dated as of February 17, 2012, is between Bank of America, N.A. (the “Bank”) and Insys Therapeutics, Inc. (the “Borrower”). 

1. FACILITY NO. 1: LINE OF CREDIT AMOUNT AND TERMS 
 1.1 Line of Credit Amount. 
  

	(a)	During the availability period described below, the Bank will provide a line of credit to the Borrower. The amount of the line of credit (the “Facility No. 1
Commitment”) is Fifteen Million and 00/100 Dollars ($15,000,000.00). 

  

	(b)	This is a revolving line of credit. During the availability period, the Borrower may repay principal amounts and reborrow them. 

 

	(c)	The Borrower agrees not to permit the principal balance outstanding to exceed the Facility No. 1 Commitment. If the Borrower exceeds this limit, the Borrower will
immediately pay the excess to the Bank upon the Bank’s demand. 

 1.2 Availability Period. The line of credit is
available between the date of this Agreement and February 15, 2013, or such earlier date as the availability may terminate as provided in this Agreement (the “Facility No. 1 Expiration Date”). 

1.3 Repayment Terms. 
  

	(a)	The Borrower will pay interest on March 31, 2012, and then on the last day of each month thereafter until payment in full of any principal outstanding under this
facility. 

  

	(b)	The Borrower will repay in full any principal, interest or other charges outstanding under this facility no later than the Facility No. 1 Expiration Date.

 1.4 Interest Rate. 
  

	(a)	The interest rate is a rate per year equal to the BBA LIBOR Daily Floating Rate plus 1 percentage point(s). 

 

	(b)	The BBA LIBOR Daily Floating Rate is a fluctuating rate of interest which can change on each banking day. The rate will be adjusted on each banking day to equal the
British Bankers Association LIBOR Rate (“BBA LIBOR”) for U.S. Dollar deposits for delivery on the date in question for a one month term beginning on that date. The Bank will use the BBA LIBOR Rate as published by Reuters (or other
commercially available source providing quotations of BBA LIBOR as selected by the Bank from time to time) as determined at approximately 11:00 a.m. London time two (2) London Banking Days prior to the date in question, as adjusted from time to
time in the Bank’s sole discretion for reserve requirements, deposit insurance assessment rates and other regulatory costs. If such rate is not available at such time for any reason, then the rate will be determined by such alternate method as
reasonably selected by the Bank. A ‘‘London Banking Day” is a day on which banks in London are open for business and dealing in offshore dollars. 

 1.5 Optional Interest Rates. Instead of the interest rate based on the rate stated in the paragraph entitled “Interest Rate” above, the Borrower may elect the optional interest rates
listed below for this Facility No. 1 during interest periods agreed to by the Bank and the Borrower. The optional interest rates shall be subject to the terms and conditions described later in this Agreement. Any principal amount bearing
interest at an optional rate under this Agreement is referred to as a “Portion.” The following optional interest rates are available: 
  

	(a)	The LIBOR Rate plus 1 percentage point(s). 

  
 - 1 -

 1.6 Letters of Credit. 

 

	(a)	During the availability period, at the request of the Borrower, the Bank will issue standby letters of credit with a maximum maturity of three hundred sixty-five
(365) days but not to extend more than three hundred sixty-five (365) days beyond the Facility No. 1 Expiration Date. The standby letters of credit may include a provision providing that the maturity date will be automatically
extended each year for an additional year unless the Bank gives written notice to the contrary. Any letters of credit outstanding as of the Facility No. 1 Expiration Date shall be cash collateralized on terms and conditions acceptable to the
Bank. 

  

	(b)	The amount of the letters of credit outstanding at any one time (including the drawn and unreimbursed amounts of the letters of credit) may not exceed Two Million and
00/100 Dollars ($2,000,000.00). 

  

	(c)	In calculating the principal amount outstanding under the Facility No. 1 Commitment, the calculation shall include the amount of any letters of credit outstanding,
including amounts drawn on any letters of credit and not yet reimbursed. 

  

	(d)	The Borrower agrees: 

  

	 	(i)	Any sum drawn under a letter of credit may, at the option of the Bank, be added to the principal amount outstanding under this Agreement. The amount will bear interest
and be due as described elsewhere in this Agreement. 

  

	 	(ii)	If there is a default under this Agreement (that is not cured within any applicable cure period), to immediately prepay and make the Bank whole for any outstanding
letters of credit. 

  

	 	(iii)	The issuance of any letter of credit and any amendment to a letter of credit is subject to the Bank’s written approval and must be in form and content satisfactory
to the Bank and in favor of a beneficiary acceptable to the Bank. 

  

	 	(iv)	To sign the Bank’s form Application and Agreement for Commercial Letter of Credit or Application and Agreement for Standby Letter of Credit, as applicable.

  

	 	(v)	To pay any issuance and/or other fees that the Bank notifies the Borrower will be charged for issuing and processing letters of credit for the Borrower.

  

	 	(vi)	To allow the Bank to automatically charge its checking account for applicable fees, discounts, and other charges. 

 

	 	(vii)	To pay the Bank a non-refundable fee equal to 1% per annum of the outstanding undrawn amount of each standby letter of credit, payable annually in advance,
calculated on the basis of the face amount outstanding on the day the fee is calculated. If there is a default under this Agreement, at the Bank’s option, the amount of the fee shall be increased to 6% per annum, effective starting on the
day the Bank provides notice of the increase to the Borrower. 

 2. OPTIONAL INTEREST RATES 

2.1 Optional Rates. Each optional interest rate is a rate per year. Interest will be paid on March 31, 2012, and then on the last day of each
month thereafter until payment in full of any principal outstanding under this Agreement. No Portion will be converted to a different interest rate during the applicable interest period. Upon the occurrence of an event of default under this
Agreement, the Bank may terminate the availability of optional interest rates for interest periods commencing after the default occurs. At the end of each interest period, the interest rate will revert to the rate stated in the paragraph(s) entitled
“Interest Rate” above, unless the Borrower has designated another optional interest rate for the Portion. 
 2.2 LIBOR Rate.
The election of LIBOR Rates shall be subject to the following terms and requirements: 
  

	(a)	 The interest period during which the LIBOR Rate will be in effect will be one month, two months or three months. The first day of the interest period
must be a day other than a Saturday or a Sunday on which banks are open for business in New York and London and dealing in offshore dollars (a “LIBOR Banking Day”). The last day of the

  
 - 2 -

	 	
interest period and the actual number of days during the interest period will be determined by the Bank using the practices of the London inter-bank market. 

 

	(b)	Each LIBOR Rate portion will be for an amount not less than One Hundred Thousand and 00/100 Dollars ($100,000.00). 

 

	(c)	A LIBOR Rate may be elected only for the entire principal amount outstanding under the applicable facility. 

 

	(d)	The “LIBOR Rate” means the interest rate determined by the following formula. (All amounts in the calculation will be determined by the Bank as of the first
day of the interest period.) 

  

							
		  	LIBOR Rate =	  	
London Inter – Bank Offered Rate
	  	
		  	  	(1.00 – Reserve Percentage)	  	

 Where, 
  

	 	(i)	“London Inter-Bank Offered Rate” means for any applicable interest period, the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA
LIBOR”), as published by Reuters (or other commercially available source providing quotations of BBA LIBOR as selected by the Bank from time to time) at approximately 11:00 a.m. London time two (2) London Banking Days before the
commencement of the interest period for U.S. Dollar deposits (for delivery on the first day of such interest period) with a term equivalent to such interest period. If such rate is not available at such time for any reason then the rate for
that interest period will be determined by such alternate method as reasonably selected by the Bank. A “London Banking Day” is a day on which banks in London are open for business and dealing in offshore dollars. 

 

	 	(ii)	“Reserve Percentage” means the total of the maximum reserve percentages for determining the reserves to be maintained by member banks of the Federal Reserve
System for Eurocurrency Liabilities, as defined in Federal Reserve Board Regulation D, rounded upward to the nearest 1/100 of one percent. The percentage will be expressed as a decimal, and will include, but not be limited to, marginal, emergency,
supplemental, special, and other reserve percentages. 

  

	(e)	The Borrower shall irrevocably request a LIBOR Rate Portion no later than 12:00 noon Central time on the LIBOR Banking Day preceding the day on which the London
Inter-Bank Offered Rate will be set, as specified above. For example, if there are no intervening holidays or weekend days in any of the relevant locations, the request must be made at least three days before the LIBOR Rate takes effect.

  

	(f)	The Bank will have no obligation to accept an election for a LIBOR Rate Portion if any of the following described events has occurred and is continuing:

  

	 	(i)	Dollar deposits in the principal amount, and for periods equal to the interest period, of a LIBOR Rate Portion are not available in the London inter-bank market; or

  

	 	(ii)	The LIBOR Rate does not accurately reflect the cost of a LIBOR Rate Portion. 

 

	(g)	Each prepayment of a LIBOR Rate Portion, whether voluntary, by reason of acceleration or otherwise, will be accompanied by the amount of accrued interest on the amount
prepaid and a prepayment fee as described below. A “prepayment” is a payment of an amount on a date earlier than the scheduled payment date for such amount as required by this Agreement. 

 

	(h)	The prepayment fee shall be in an amount sufficient to compensate the Bank for any loss, cost or expense incurred by it as a result of the prepayment, including any
loss of anticipated profits and any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Portion or from fees payable to terminate the deposits from which such funds were obtained. The Borrower shall
also pay any customary administrative fees charged by the Bank in connection with the foregoing. For purposes of this paragraph, the Bank shall be deemed to have funded each Portion by a matching deposit or other borrowing in the applicable
interbank market, whether or not such Portion was in fact so funded. 

  
 - 3 -

 3. COLLATERAL 
 3.1 Kapoor Trust Letter of Credit. The Kapoor Trust Letter of Credit issued by Bank of America, N.A., with John N. Kapoor Trust, as applicant, dated on or before the date hereof in an aggregate
principal amount equal to $15,500,000.00 (the “Kapoor Trust Letter of Credit”) will secure the Borrower’s obligations to the Bank under this Agreement. All personal property collateral securing any other present or future obligations
of the Borrower to the Bank shall also secure this Agreement. The Bank acknowledges and agrees that the Bank will, at the Borrower’s written request, provide notice of termination of the Kapoor Trust Letter of Credit to Bank of America, N.A.,
as issuer of the Kapoor Trust Letter of Credit, on or before the date that is thirty (30) days after the obligations of this Agreement have been paid in full and terminated. 
 4. FEES AND EXPENSES 
 4.1 Fees. 

 

	(a)	Waiver Fee. If the Bank, at its discretion, agrees to waive or amend any terms of this Agreement, the Borrower will, at the Bank’s option, pay the Bank a
fee for each waiver or amendment in an amount advised by the Bank at the time the Borrower requests the waiver or amendment. Nothing in this paragraph shall imply that the Bank is obligated to agree to any waiver or amendment requested by the
Borrower. The Bank may impose additional requirements as a condition to any waiver or amendment. 

  

	(b)	Late Fee. To the extent permitted by law, the Borrower agrees to pay a late fee in an amount not to exceed four percent (4%) of any payment that is more
than fifteen (15) days late. The imposition and payment of a late fee shall not constitute a waiver of the Bank’s rights with respect to the default. 

 4.2 Expenses. The Borrower agrees to immediately repay the Bank for expenses that include, but are not limited to, filing, recording and search fees, appraisal fees, title report fees, and
documentation fees. 
 4.3 Reimbursement Costs. The Borrower agrees to reimburse the Bank for any expenses it incurs in the preparation
of this Agreement and any agreement or instrument required by this Agreement. Expenses include, but are not limited to, reasonable attorneys’ fees, including any allocated costs of the Bank’s in-house counsel to the extent permitted by
applicable law. 
 5. DISBURSEMENTS, PAYMENTS AND COSTS 
 5.1 Disbursements and Payments. 
  

	(a)	Each payment by the Borrower will be made in U.S. Dollars and immediately available funds, without setoff or counterclaim. Payments will be made by debit to a deposit
account, if direct debit is provided for in this Agreement or is otherwise authorized by the Borrower. For payments not made by direct debit, payments will be made by mail to the address shown on the Borrower’s statement, or by such other
method as may be permitted by the Bank. 

  

	(b)	The Bank may honor instructions for advances or repayments given by the Borrower (if an individual), or by any one of the individuals authorized to sign loan agreements
on behalf of the Borrower, or any other individual designated by any one of authorized signers (each an “Authorized Individual”). 

  

	(c)	For any payment under this Agreement made by debit to a deposit account, the Borrower will maintain sufficient immediately available funds in the deposit account to
cover each debit. If there are insufficient immediately available funds in the deposit account on the date the Bank enters such debit authorized by this Agreement, the Bank may reverse the debit. 

 

	(d)	Each disbursement by the Bank and each payment by the Borrower will be evidenced by records kept by the Bank. In addition, the Bank may, at its discretion, require the
Borrower to sign one or more promissory notes. 

  

	(e)	 Prior to the date each payment of principal and interest and any fees from the Borrower becomes due (the “Due Date”), the Bank will send to
the Borrower a statement of the amounts that will be due on that Due Date (the “Billed Amount”). The calculations in the bill will be made on the assumption that no new extensions of credit or payments will be made between the date of the
billing statement and the Due Date, and that there will be no 

  
 - 4 -

	 	
changes in the applicable interest rate. If the Billed Amount differs from the actual amount due on the Due Date (the “Accrued Amount”), the discrepancy will be treated as follows:

  

	 	(i)	if the Billed Amount is less than the Accrued Amount, the Billed Amount for the following Due Date will be increased by the amount of the discrepancy. The Borrower will
not be in default by reason of any such discrepancy. 

  

	 	(ii)	If the Billed Amount is more than the Accrued Amount, the Billed Amount for the following Due Date will be decreased by the amount of the discrepancy.

 Regardless of any such discrepancy, interest will continue to accrue based on the actual amount of principal
outstanding without compounding. The Bank will not pay the Borrower interest on any overpayment. 
 5.2 Telephone and Telefax
Authorization. 
  

	(a)	The Bank may honor telephone or telefax instructions for advances or repayments and telefax requests for the issuance of letters of credit given, or purported to be
given, by any one of the Authorized Individuals. 

  

	(b)	Advances will be deposited in and repayments will be withdrawn from account number
                         owned by Insys Therapeutics, Inc. or such other of the Borrowers accounts with the Bank as designated in
writing by the Borrower. 

  

	(c)	The Borrower will indemnify and hold the Bank harmless from all liability, loss, and costs in connection with any act resulting from telephone or telefax instructions
the Bank reasonably believes are made by any Authorized Individual. This paragraph will survive this Agreement’s termination, and will benefit the Bank and its officers, employees, and agents. 

5.3 Direct Debit. 
  

	(a)	The Borrower agrees that on the Due Date the Bank will debit the Billed Amount from deposit account number
                         owned by Insys Therapeutics, Inc. or such other of the Borrower’s accounts with the Bank as
designated in writing by the Borrower (the “Designated Account”). 

  

	(b)	The Borrower may terminate this direct debit arrangement at any time by sending written notice to the Bank at the address specified at the end of this Agreement. If the
Borrower terminates this arrangement, then the principal amount outstanding under this Agreement will at the option of the Bank bear interest at a rate per annum which is 0.5 percentage point(s) higher than the rate of interest otherwise provided
under this Agreement. 

 5.4 Banking Days. Unless otherwise provided in this Agreement, a banking day is a day other than a
Saturday, Sunday or other day on which commercial banks are authorized to close, or are in fact closed, in the state where the Bank’s lending office is located, and, if such day relates to amounts bearing interest at an offshore rate (if any),
means any such day on which dealings in dollar deposits are conducted among banks in the offshore dollar interbank market. All payments and disbursements which would be due on a day which is not a banking day will be due on the next banking day. All
payments received on a day which is not a banking day will be applied to the credit on the next banking day. 
 5.5 Interest Calculation.
Except as otherwise stated in this Agreement, all interest and fees, if any, will be computed on the basis of a 360-day year and the actual number of days elapsed. This results in more interest or a higher fee than if a 365-day year is used.
Installments of principal which are not paid when due under this Agreement shall continue to bear interest until paid. 
 5.6 Default
Rate. Upon the occurrence of any default or after maturity or after judgment has been rendered on any obligation under this Agreement, all amounts outstanding under this Agreement, including any unpaid interest, fees, or costs, will at the
option of the Bank bear interest at a rate which is 6.0 percentage point(s) higher than the rate of interest otherwise provided under this Agreement. This may result in compounding of interest. This will not constitute a waiver of any default.

 5.7 Additional Costs. 

  
 - 5 -

 The Borrower will pay the Bank, on demand, for the Bank’s costs or losses arising from any Change in
Law which are allocated to this Agreement or any credit outstanding under this Agreement. The allocation will be made as determined by the Bank, using any reasonable method. The costs include, without limitation, the following: 

 

	(a)	any reserve or deposit requirements (excluding any reserve requirement already reflected in the calculation of the interest rate in this Agreement); and

  

	(b)	any capital requirements relating to the Bank’s assets and commitments for credit. 

 “Change in Law” means the occurrence, after the date of this Agreement, of the adoption or taking effect of any new or changed law, rule, regulation or treaty, or the issuance of any request,
rule, guideline or directive (whether or not having the force of law) by any governmental authority; provided that (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives issued
in connection with that Act, and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor authority) or the United States regulatory
authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law,” regardless of the date enacted, adopted or issued. 
 6. CONDITIONS 
 Before the Bank is required to extend any credit to the Borrower under this
Agreement, it must receive any documents and other items it may reasonably require, in form and content acceptable to the Bank, including any items specifically listed below. 
 6.1 Authorizations. If the Borrower or any guarantor is anything other than a natural person, evidence that the execution, delivery and performance by the Borrower and/or such guarantor of this
Agreement and any instrument or agreement required under this Agreement have been duly authorized. 
 6.2 Governing Documents. If
required by the Bank, a copy of the Borrower’s organizational documents. 
 6.3 Kapoor Trust Letter of Credit. The Bank shall have
received the Kapoor Trust Letter of Credit, which shall be in form and substance satisfactory to the Bank. 
 6.4 Good Standing.
Certificates of good standing for the Borrower from its state of formation and from any other state in which the Borrower is required to qualify to conduct its business. 
 6.5 Insurance. Evidence of insurance coverage, as required in the “Covenants” section of this Agreement. 
 7. REPRESENTATIONS AND WARRANTIES 
 When the Borrower signs this Agreement, and until the Bank is
repaid in full, the Borrower makes the following representations and warranties. Each request for an extension of credit constitutes a renewal of these representations and warranties as of the date of the request: 

7.1 Formation. If the Borrower is anything other than a natural person, it is duly formed and existing under the laws of the state or other
jurisdiction where organized. 
 7.2 Authorization. This Agreement, and any instrument or agreement required hereunder, are within the
Borrower’s powers, have been duly authorized, and do not conflict with any of its organizational papers. 
 7.3 Enforceable
Agreement. This Agreement is a legal, valid and binding agreement of the Borrower, enforceable against the Borrower in accordance with its terms, and any instrument or agreement required hereunder, when executed and delivered, will be similarly
legal, valid, binding and enforceable. 
 7.4 Good Standing. In each state in which the Borrower does business, it is properly licensed,
in good standing, and, where required, in compliance with fictitious name statutes. 
 7.5 No Conflicts. This Agreement does not conflict
with any law, agreement, or obligation by which the Borrower is bound. 

  
 - 6 -

 7.6 Financial Information. All financial and other information that has been or will be supplied to
the Bank is sufficiently complete to give the Bank accurate knowledge of the Borrower’s (and any guarantor’s) financial condition, including all material contingent liabilities. Since the date of the most recent financial statement
provided to the Bank, there has been no material adverse change in the business condition (financial or otherwise), operations, properties or prospects of the Borrower (or any guarantor). If the Borrower is comprised of the trustees of a trust, the
foregoing representations shall also pertain to the trustor(s) of the trust. 
 7.7 Lawsuits. There is no lawsuit, tax claim or other
dispute pending or threatened against the Borrower which, if lost, would impair the Borrower’s financial condition or ability to repay the loan, except as have been disclosed in writing to the Bank. 

7.8 Intentionally Omitted. 
 7.9
Permits, Franchises. The Borrower possesses all permits, memberships, franchises, contracts and licenses required and all trademark rights, trade name rights, patent rights, copyrights and fictitious name rights necessary to enable it to
conduct the business in which it is now engaged. 
 7.10 Other Obligations. The Borrower is not in default on any obligation for borrowed
money, any purchase money obligation or any other material lease, commitment, contract, instrument or obligation, except as have been disclosed in writing to the Bank. 
 7.11 Tax Matters. The Borrower has no knowledge of any pending assessments or adjustments of its income tax for any year and all taxes due have been paid, except as have been disclosed in writing
to the Bank. 
 7.12 No Event of Default. There is no event which is, or with notice or lapse of time or both would be, a default under
this Agreement. 
 7.13 Insurance. The Borrower has obtained, and maintained in effect, the insurance coverage required in the
“Covenants” section of this Agreement. 
 7.14 ERISA Plans. 

 

	(a)	Each Plan (other than a multiemployer plan) is in compliance in all material respects with the applicable provisions of ERISA, the Code and other federal or state law.
Each Plan has received a favorable determination letter from the IRS and to the best knowledge of the Borrower, nothing has occurred which would cause the loss of such qualification. The Borrower has fulfilled its obligations, if any, under the
minimum funding standards of ERISA and the Code with respect to each Plan, and has not incurred any liability with respect to any Plan under Title IV of ERISA. 

 

	(b)	There are no claims, lawsuits or actions (including by any governmental authority), and there has been no prohibited transaction or violation of the fiduciary
responsibility rules, with respect to any Plan which has resulted or could reasonably be expected to result in a material adverse effect. 

  

	(c)	With respect to any Plan subject to Title IV of ERISA: 

  

	 	(i)	No reportable event has occurred under Section 4043(c) of ERISA tor which me PBUU requires 30-day notice. 

 

	 	(ii)	No action by the Borrower or any ERISA Affiliate to terminate or withdraw from any Plan has been taken and no notice of intent to terminate a Plan has been filed under
Section 4041 of ERISA. 

  

	 	(iii)	No termination proceeding has been commenced with respect to a Plan under Section 4042 of ERISA, and no event has occurred or condition exists which might
constitute grounds for the commencement of such a proceeding. 

  

	(d)	The following terms have the meanings indicated for purposes of this Agreement: 

 

	 	(i)	“Code” means the Internal Revenue Code of 1986, as amended from time to time. 

 

	 	(ii)	“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. 

  
 - 7 -

	 	(iii)	“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with the Borrower within the meaning of Section 414(b)
or (c) of the Code. 

  

	 	(iv)	“PBGC” means the Pension Benefit Guaranty Corporation. 

  

	 	(v)	“Plan” means a pension, profit-sharing, or stock bonus plan intended to qualify under Section 401(a) of the Code, maintained or contributed to by the
Borrower or any ERISA Affiliate, including any multiemployer plan within the meaning of Section 4001(a)(3) of ERISA. 

 8.
COVENANTS 
 The Borrower agrees, so long as credit is available under this Agreement and until the Bank is repaid in full: 

8.1 Financial Information. To provide the following financial information and statements in form and content acceptable to the Bank, and such
additional information as requested by the Bank from time to time. The Bank reserves the right, upon written notice to the Borrower, to require the Borrower to deliver financial information and statements to the Bank more frequently than otherwise
provided below, and to use such additional information and statements to measure any applicable financial covenants in this Agreement. 
  

	(a)	Within 150 days of the fiscal year end, the annual financial statements of the Borrower, certified and dated by an authorized financial officer. These financial
statements must be audited (with an opinion satisfactory to the Bank) by a Certified Public Accountant acceptable to the Bank. 

  

	(b)	Within 45 days of the period’s end, quarterly financial statements of the Borrower, certified and dated by an authorized financial officer. These financial
statements may be company prepared. 

 8.2 Bank as Principal Depository. To maintain the Bank or one of its affiliates as
its principal depository bank, including for the maintenance of business, cash management, operating and administrative deposit accounts. 
 8.3
Intentionally Omitted. 
 8.4 Intentionally Omitted. 
 8.5 Intentionally Omitted. 
 8.6 Intentionally Omitted. 

8.7 Change of Management. Not to make any substantial change in the present executive or management personnel of the Borrower. 

8.8 Change of Ownership. Not to cause, permit, or suffer any change in capital ownership such that there is a change of more than 25% in the
direct or indirect capital ownership of the Borrower. 
 8.9 Additional Negative Covenants. Not to, without the Bank’s written
consent: 
  

	(a)	Enter into any consolidation, merger, or other combination, or become a partner in a partnership, a member of a joint venture, or a member of a limited liability
company. 

  

	(b)	Acquire or purchase a business or its assets. 

  

	(c)	Engage in any business activities substantially different from the Borrower’s present business. 

 

	(d)	Liquidate or dissolve the Borrower’s business. 

  

	(e)	Voluntarily suspend the Borrower’s business. 

 8.10 Notices to Bank. To promptly notify the Bank in writing of: 
  

	(a)	Any lawsuit over Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) against the Borrower or any Obligor. 

  
 - 8 -

	(b)	Any substantial dispute between any governmental authority and the Borrower or any Obligor. 

 

	(c)	Any event of default under this Agreement, or any event which, with notice or lapse of time or both, would constitute an event of default. 

 

	(d)	Any material adverse change in the Borrower’s or any Obligor’s business condition (financial or otherwise), operations, properties or prospects, or ability to
repay the credit. 

  

	(e)	Any change in the Borrower’s or any Obligor’s name, legal structure, principal residence (for an individual), state of registration (for a registered entity),
place of business, or chief executive office if the Borrower or any Obligor has more than one place of business. 

  

	(f)	Any actual contingent liabilities of the Borrower or any Obligor, and any such contingent liabilities which are reasonably foreseeable. 

For purposes of this Agreement, “Obligor” shall mean any guarantor, or any party pledging collateral to the Bank, or, if the Borrower is
comprised of the trustees of a trust, any trustor. 
 8.11 Insurance. To maintain insurance satisfactory to the Bank as to amount, nature
and carrier covering property damage (including loss of use and occupancy) to any of the Borrower’s properties, business interruption insurance, public liability insurance including coverage for contractual liability, product liability and
workers’ compensation, and any other insurance which is usual for the Borrower’s business. Each policy shall provide for at least 30 days prior notice to the Bank of any cancellation thereof. 

8.12 Compliance with Laws. To comply with the laws (including any fictitious or trade name statute), regulations, and orders of any government
body with authority over the Borrower’s business. The Bank shall have no obligation to make any advance to the Borrower except in compliance with all applicable laws and regulations and the Borrower shall fully cooperate with the Bank in
complying with all such applicable laws and regulations. 
 8.13 ERISA Plans. Promptly during each year, to pay and cause any
subsidiaries to pay contributions adequate to meet at least the minimum funding standards under ERISA with respect to each and every Plan; file each annual report required to be filed pursuant to ERISA in connection with each Plan for each year; and
notify the Bank within ten (10) days of the occurrence of any Reportable Event that might constitute grounds for termination of any capital Plan by the Pension Benefit Guaranty Corporation or for the appointment by the appropriate United States
District Court of a trustee to administer any Plan. “ERISA” means the Employee Retirement income Security Act of 1974, as amended from time to time. Capitalized terms in this paragraph shall have the meanings defined within ERISA.

 8.14 ERISA Plans-Notices. With respect to a Plan subject to Title IV of ERISA, to give prompt written notice to the Bank of:

  

	(a)	The occurrence of any reportable event under Section 4043(c) of ERISA for which the PBGC requires 30-day notice. 

 

	(b)	Any action by die Borrower or any ERISA Affiliate to terminate or withdraw from a Plan or the tiling of any notice of intent to terminate under Section 4041 of
ERISA. 

  

	(c)	The commencement of any proceeding with respect to a Plan under Section 4042 of ERISA. 

 8.15 Books and Records. To maintain adequate books and records. 
 8.16 Audits. To
allow the Bank and its agents to inspect the Borrower’s properties and examine, audit, and make copies of books and records at any reasonable time. If any of the Borrower’s properties, books or records are in the possession of a third
party, the Borrower authorizes that third party to permit the Bank or its agents to have access to perform inspections or audits and to respond to the Bank’s requests for information concerning such properties, books and records. 

8.17 Use of Proceeds. To only use the Facility No. 1 Commitment for general corporate purposes. 

  
 - 9 -

 8.18 Cooperation. To take any action reasonably requested by the Bank to carry out the intent of this
Agreement. 
 9. DEFAULT AND REMEDIES 

If any of the following events of default occurs, the Bank may do one or more of the following: declare the Borrower in default, stop making any
additional credit available to the Borrower, and require the Borrower to repay its entire debt immediately and without prior notice. If an event which, with notice or the passage of time, will constitute an event of default has occurred and is
continuing, the Bank has no obligation to make advances or extend additional credit under this Agreement. In addition, if any event of default occurs, the Bank shall have all rights, powers and remedies available under any instruments and agreements
required by or executed in connection with this Agreement, as well as all rights and remedies available at law or in equity. If an event of default occurs under the paragraph entitled “Bankruptcy,” below, with respect to the Borrower, then
the entire debt outstanding under this Agreement will automatically be due immediately. 
 9.1 Failure to Pay. The Borrower fails to make
(a) a principal payment under this Agreement when due, (b) any interest payment required under this Agreement during the first ninety (90) days after the date of this Agreement within five (5) days of the due date of such
interest payment (the “Interest Cure Period”); provided that the Bank, at its sole option, may draw on the Kapoor Trust Letter of Credit within the Interest Cure Period to cure such default, (c) any interest payment required
under this Agreement after the first ninety (90) days after the date of this Agreement within the Interest Cure Period; provided that any draw made by the Bank on the Kapoor Trust Letter of Credit to pay any interest not paid within such
Interest Cure Period shall not waive any event of default caused by the failure to pay any interest payment required under this Agreement and not paid within the Interest Cure Period and (d) any other payment required under this Agreement when
due. 
 9.2 Other Bank Agreements. Any default occurs under any other agreement the Borrower (or any Obligor) or any of the
Borrower’s related entities or affiliates has with the Bank or any affiliate of the Bank. 
 9.3 Cross-default. Any default occurs
under any agreement in connection with any credit the Borrower (or any Obligor) or any of the Borrower’s related entities or affiliates has obtained from anyone else or which the Borrower (or any Obligor) or any of the Borrower’s related
entities or affiliates has guaranteed. 
 9.4 False Information. The Borrower or any Obligor has given the Bank false or misleading
information or representations. 
 9.5 Bankruptcy. The Borrower, any Obligor, or any general partner of the Borrower or of any Obligor
files a bankruptcy petition, a bankruptcy petition is filed against any of the foregoing parties, or the Borrower, any Obligor, or any general partner of the Borrower or of any Obligor makes a general assignment for the benefit of creditors.

 9.6 Receivers. A receiver or similar official is appointed for a substantial portion of the Borrowers or any Obligor’s business,
or the business is terminated, or, if any Obligor is anything other than a natural person, such Obligor is liquidated or dissolved. 
 9.7
Revocation or Termination. If the Borrower is comprised of the trustee(s) of a trust, the trust is revoked or otherwise terminated or all or a substantial part of the Borrower’s assets are distributed or otherwise disposed of.

 9.8 Lion Priority. The Bank fails to have an enforceable first lien (except for any prior liens to which the Bank has consented in
writing) on or security interest in any property given as security for this Agreement (or any guaranty). 
 9.9 Lawsuits. Any lawsuit or
lawsuits are filed on behalf of one or more trade creditors against the Borrower or any Obligor in an aggregate amount of Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) or more in excess of any insurance coverage. 

9.10 Judgments. Any judgments or arbitration awards are entered against the Borrower or any Obligor, or the Borrower or any Obligor enters into
any settlement agreements with respect to any litigation or arbitration, in an aggregate amount of Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) or more in excess of any insurance coverage. 

9.11 Material Adverse Change. A material adverse change occurs, or is reasonably likely to occur, in the Borrower’s (or any Obligor’s)
business condition (financial or otherwise), operations, properties or prospects, or ability to repay the credit; or the Bank determines that it is insecure for any other reason. 

  
 - 10 -

 9.12 Government Action. Any government authority takes action that the Bank believes materially
adversely affects the Borrowers or any Obligor’s financial condition or ability to repay. 
 9.13 Default under Related Documents.
Any default occurs under any guaranty, subordination agreement, security agreement, deed of trust, mortgage, or other document required by or delivered in connection with this Agreement or any such document is no longer in effect, or any guarantor
purports to revoke or disavow the guaranty. 
 9.14 ERISA Plans. Any one or more of the following events occurs with respect to a Plan of
the Borrower subject to Title IV of ERISA, provided such event or events could reasonably be expected, in the judgment of the Bank, to subject the Borrower to any tax, penalty or liability (or any combination of the foregoing) which, in the
aggregate, could have a material adverse effect on the financial condition of the Borrower: 
  

	(a)	A reportable event shall occur under Section 4043(c) of ERISA with respect to a Plan. 

 

	(b)	Any Plan termination (or commencement of proceedings to terminate a Plan) or the full or partial withdrawal from a Plan by the Borrower or any ERISA Affiliate.

 9.15 Other Breach Under Agreement. A default occurs under any other term or condition of this Agreement not specifically
referred to in this Article. This includes any failure or anticipated failure by the Borrower (or any other party named in the Covenants section) to comply with the financial covenants set forth in this Agreement, whether such failure is evidenced
by financial statements delivered to the Bank or is otherwise known to the Borrower or the Bank. 
 9.16 Kapoor Trust Letter of Credit.
The Kapoor Trust Letter of Credit shall become unenforceable or shall otherwise be terminated or is no longer in effect. 
 10. ENFORCING THIS
AGREEMENT; MISCELLANEOUS 
 10.1 GAAP. Except as otherwise stated in this Agreement, all financial information provided to the Bank and
all financial covenants will be made under generally accepted accounting principles, consistently applied. 
 10.2 Governing Law. This
Agreement is governed by and shall be interpreted according to federal law and the laws of Delaware. If state or local law and federal law are inconsistent, or if state or local law is preempted by federal law, federal law governs. If the Bank has
greater rights or remedies under federal law, whether as a national bank or otherwise, this paragraph shall not be deemed to deprive the Bank of such rights and remedies as may be available under federal law. 

10.3 Successors and Assigns. This Agreement is binding on the Borrower’s and the Bank’s successors and assignees. The Borrower agrees
that it may not assign this Agreement without the Bank’s prior consent. The Bank may sell participations in or assign this loan, and may exchange information about the Borrower (including, without limitation, any information regarding any
hazardous substances) with actual or potential participants or assignees. If a participation is sold or the loan is assigned, the purchaser will have the right of set-off against the Borrower. 

10.4 WAIVER OF JURY TRIAL  

THE PARTIES TO THIS AGREEMENT WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH THEY MAY BE PARTIES, ARISING OUT OF, IN CONNECTION WITH OR IN
ANY WAY PERTAINING TO, THIS AGREEMENT. IT IS AGREED AND UNDERSTOOD THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTION OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS
AGREEMENT. THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE. 
 10.5 Severability Waivers. If any part of this Agreement is
not enforceable, the rest of the Agreement may be enforced. The Bank retains all rights, even if it makes a loan after default. If the Bank waives a default, it may enforce a later default. Any consent or waiver under this Agreement must be in
writing. 
 10.6 Attorneys’ Fees. The Borrower shall reimburse the Bank for any reasonable costs and attorneys’ fees, not in
excess of the highest amount of attorneys’ fees permitted by law, incurred by the Bank in connection with the enforcement or preservation of any rights or remedies under this Agreement and any other documents executed in connection with this
Agreement, and in connection with any amendment, waiver, “workout” or restructuring under this Agreement. In the event of a lawsuit or arbitration proceeding, the prevailing party is entitled to recover costs and reasonable attorneys’
fees incurred in connection with the lawsuit or arbitration proceeding, as determined by the court or arbitrator. In the event that any case is commenced by or against the Borrower under the Bankruptcy Code (Title 11, United States Code) or any

  
 - 11 -

 
similar or successor statute, the Bank is entitled to recover costs and reasonable attorneys’ fees, not in excess of the highest amount of attorneys’ fees permitted by law, incurred by
the Bank related to the preservation, protection, or enforcement of any rights of the Bank in such a case. As used in this paragraph, “attorneys’ fees” includes the allocated costs of the Bank’s in-house counsel. 

10.7 Set-Off. 
  

	(a)	In addition to any rights and remedies of the Bank provided by law, upon the occurrence and during the continuance of any event of default under this Agreement, the
Bank is authorized, at any time, to set off and apply any and all Deposits of the Borrower or any Obligor held by the Bank or its affiliates against any and all Obligations owing to the Bank. The set-off may be made irrespective of whether or not
the Bank shall have made demand under this Agreement or any guaranty, and although such Obligations may be contingent or unmatured or denominated in a currency different from that of the applicable Deposits and without regard for the availability or
adequacy of other collateral. Any Deposits may be converted, sold or otherwise liquidated at prevailing market prices in order to effect such set-off. 

  

	(b)	The set-off may be made without prior notice to the Borrower or any other party, any such notice being waived by the Borrower (on its own behalf and on behalf of each
Obligor) to the fullest extent permitted by law. The Bank agrees promptly to notify the Borrower after any such set-off and application; provided, however, that the failure to give such notice shall not affect the validity of such
set-off and application. 

  

	(c)	For the purposes of this paragraph, “Deposits” means any deposits (general or special, time or demand, provisional or final, individual or joint) as well as
any money, instruments, securities, credits, claims, demands, income or other property, rights or interests owned by the Borrower or any Obligor which come into the possession or custody or under the control of the Bank or its affiliates.
“Obligations” means all obligations, now or hereafter existing, of the Borrower to the Bank under this Agreement and under any other agreement or instrument executed in connection with this Agreement, and the obligations to the Bank of any
Obligor. 

  

	10.8	One Agreement. This Agreement and any related security or other agreements required by this Agreement, collectively: 

 

	(a)	represent the sum of the understandings and agreements between the Bank and the Borrower concerning this credit; 

 

	(b)	replace any prior oral or written agreements between the Bank and the Borrower concerning this credit; and 

 

	(c)	are intended by the Bank and the Borrower as the final, complete and exclusive statement of the terms agreed to by them. 

In the event of any conflict between this Agreement and any other agreements required by this Agreement, this Agreement will prevail. Any reference in
any related document to a “promissory note” or a “note” executed by the Borrower and dated as of the date of this Agreement shall be deemed to refer to this Agreement, as now in effect or as hereafter amended, renewed, or
restated. 
 10.9 Indemnification. The Borrower will indemnify and hold the Bank harmless from any loss, liability, damages, judgments,
and costs of any kind relating to or arising directly or indirectly out of (a) this Agreement or any document required hereunder, (b) any credit extended or committed by the Bank to the Borrower hereunder, and (c) any litigation or
proceeding related to or arising out of this Agreement, any such document, or any such credit. This indemnity includes but is not limited to attorneys’ fees (including the allocated cost of in-house counsel). This indemnity extends to the Bank,
its parent, subsidiaries and all of their directors, officers, employees, agents, successors, attorneys, and assigns. This indemnity will survive repayment of the Borrower’s obligations to the Bank. All sums due to the Bank hereunder shall be
obligations of the Borrower, due and payable immediately without demand. 
 10.10 Notices. Unless otherwise provided in this Agreement or
in another agreement between the Bank and the Borrower, all notices required under this Agreement shall be personally delivered or sent by first class mail, postage prepaid, or by overnight courier, to the addresses on the signature page of this
Agreement, or sent by facsimile to the fax numbers listed on the signature page, or to such other addresses as the Bank and the Borrower may specify from time to time in writing. Notices and other communications shall be effective (i) if
mailed, upon the earlier of receipt or five (5) days after deposit in the U.S. mail, first class, postage prepaid, (ii) if telecopied, when transmitted, or (iii) if hand-delivered, by courier or otherwise (including telegram,
lettergram or mailgram), when delivered. 

  
 - 12 -

 10.11 Headings. Article and paragraph headings are for reference only and shall not affect the
interpretation or meaning of any provisions of this Agreement. 
 10.12 Counterparts. This Agreement may be executed in as many
counterparts as necessary or convenient, and by the different parties on separate counterparts each of which, when so executed, shall be deemed an original but all such counterparts shall constitute but one and the same agreement. Delivery of an
executed counterpart of this Agreement (or of any agreement or document required by this Agreement and any amendment to this Agreement) by telecopy or other electronic imaging means shall be as effective as delivery of a manually executed
counterpart of this Agreement; provided, however, that the telecopy or other electronic image shall be promptly followed by an original if required by the Bank. 
 10.13 Borrower Information; Reporting to Credit Bureaus. The Borrower authorizes the Bank at any time to verify or check any information given by the Borrower to the Bank, check the Borrower’s
credit references, verify employment, and obtain credit reports. The Borrower agrees that the Bank shall have the right at all times to disclose and report to credit reporting agencies and credit rating agencies such information pertaining to the
Borrower and/or all guarantors as is consistent with the Bank’s policies and practices from time to time in effect. 

  
 - 13 -

 The Borrower executed this Agreement as of the date stated at the top of the first page, intending to create
an instrument executed under seal. 
  

					
	Bank:
	
	Bank of America, N.A.
		
	By:	 	/s/ Erin Frey
		 	Erin Frey, Vice President

					
	
	Borrower:
	
	Insys Therapeutics, Inc.
			
	By:	 	/s/ Michael L. Babich	 	(Seal)
		 	Michael L. Babich, Vice President

  

			
	Address where notices to Insys Therapeutics, Inc. are to be sent:	  	Address where notices to the Bank are to be sent:
	  
 10220 S 51 St

Ste 2
 Phoenix, AZ 80544

 
 Telephone:        (847)
887-0800
	  	  
 Doc Retention – GCF

MO1-800-08-11
 800 Market Street, 8th
Floor
 St. Louis, MO 63101-2510
  

Facsimile:        (866) 255-9922

 Federal law requires Bank of America, N.A. (the “Bank”) to provide the following notice. The notice is
not part of the foregoing agreement or instrument and may not be altered. Please read the notice carefully. 
  

	(1)	USA PATRIOT ACT NOTICE 

 Federal law
requires all financial institutions to obtain, verify and record information that identifies each person who opens an account or obtains a loan. The Bank will ask for the Borrower’s legal name, address, tax ID number or social security number
and other identifying information. The Bank may also ask for additional information or documentation or take other actions reasonably necessary to verify the identity of the Borrower, guarantors or other related persons. 

  
 - 14 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00213-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00213-of-00352.parquet"}]]