Document:

EX-10.20

 Exhibit 10.20 

 
 

 
  
 

 
 AMENDMENT NO. 1 TO LOAN AGREEMENT 

This Amendment No. 1 (the “Amendment”) dated as of February 11, 2013, is between Bank of America, N.A. (the
“Bank”) and Insys Therapeutics, Inc. (the “Borrower”). 
 RECITALS 

A.    The Bank and the Borrower entered into a certain Loan Agreement dated as of February 15, 2012 (together
with any previous amendments, the “Agreement”). The current commitment amount of Facility No. 1 is $15,000,000.00. 

B.    The Bank and the Borrower desire to amend the Agreement. 

AGREEMENT 
 1.    Definitions. Capitalized terms used but not defined in this Amendment shall have the meaning given to them in the Agreement. 

2.    Amendments. The Agreement is hereby amended as follows: 

2.1.    In Paragraph 1.2 Availability Period, the “Facility No. 1 Expiration Date” is
changed to “February 15, 2014”. 
 3.    Representations and Warranties. When the
Borrower signs this Amendment, the Borrower represents and warrants to the Bank that (a) there is no event which is, or with notice or lapse of time or both would be, a default under the Agreement except those events, if any, that have been
disclosed in writing to the Bank or waived in writing by the Bank (b) the representations and warranties in the Agreement are true as of the date of this Amendment as if made on the date of this Amendment, (c) this Amendment does not conflict with
any law, agreement, or obligation by which the Borrower is bound, and (d) if the Borrower is a business entity or a trust, this Amendment is within the Borrower’s powers, has been duly authorized, and does not conflict with any of the
Borrower’s organizational papers. 
 4.    Conditions. This Amendment will be effective when the
Bank receives the following items, in form and content acceptable to the Bank. 
 4.1.    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 Amendment and any instrument or agreement required under this Amendment have
been duly authorized. 
 5.    Effect of Amendment. Except as provided in this Amendment, all of the
terms and conditions of the Agreement, including but not limited to the Waiver of Jury Trial, shall remain in full force and effect. 
 6.    Counterparts. This Amendment may be executed in counterparts, each of which when so executed shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument. 
 7.    FINAL AGREEMENT. BY SIGNING THIS DOCUMENT
EACH PARTY REPRESENTS AND AGREES THAT: (A) THIS DOCUMENT REPRESENTS THE FINAL AGREEMENT BETWEEN PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF, (B) THIS DOCUMENT SUPERSEDES ANY COMMITMENT

  
 1 

 
LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS RELATING TO THE SUBJECT MATTER HEREOF, UNLESS SUCH COMMITMENT LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE OF TERMS AND
CONDITIONS EXPRESSLY PROVIDES TO THE CONTRARY, (C) THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES, AND (D) THIS DOCUMENT MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR UNDERSTANDINGS
OF THE PARTIES. 
 This Amendment is executed as of the date stated at the beginning of this Amendment. 

 

			
	Bank of America, N.A.
		
	By	 	/s/ Alpha Meyers
		 	ALPHA MEYERS, OFFICER

  

			
	 BORROWER(S):
  

Insys Therapeutics, Inc.

		
	By	 	/s/ Michael L. Babich
		 	Michael L. Babich

  
 2EX-10.1

 Exhibit 10.1 

 
 

 
 MONOTYPE IMAGING HOLDINGS INC. 
 2013 Executive Officer Incentive Compensation Plan 
  

Overview 
 The compensation philosophy of
Monotype is to pay competitive base salaries and to provide the potential to significantly overachieve market average compensation through incentive compensation if performance of both the Company and the individual exceed expectations. Base
compensation and total compensation targets are set based on peer group data and area market survey data. 
 Incentive Compensation Goals

  

	•	 	 Provide incentive to Executive Officers to exceed annual net adjusted EBITDA and revenue targets established by the Board of Directors.

  

	•	 	 Provide incentive to Executive Officers to achieve individual goals that have a direct relationship to Monotype’s organizational success.

  

	•	 	 Motivate exceptional performance at all organizational levels. 

 

	•	 	 Pay for performance. No guarantees of bonus if performance does not warrant. 

 

	•	 	 Significant differentiation in bonus payments between less than expected performance and exceptional performance. 

Eligibility 
  

	•	 	 Officers of Monotype who are classified by the Management Development and Compensation Committee as Executive Officers. 

 

	•	 	 Executive Officers hired after January 1, 2013 will be prorated based on date of hire. 

 

	•	 	 An Executive Officer must be employed by the Company on December 31, 2013 to be eligible to receive any incentive compensation payment under this
plan. 

 Total Incentive Compensation Pool 
 The total incentive compensation pool available to Executive Officers under this plan is based on the Company’s achievement of specific net adjusted EBITDA and revenue targets established by the
Board of Directors for 2013. At each pre-determined net adjusted EBITDA and revenue percentage achievement, beginning at 90% of the applicable target, an incentive compensation pool is established and will be paid on a sliding scale, subject to the
terms of this plan and as follows: 
  

													
	 	  	Pool Based on
Revenue	 	  	Pool Based on
naEBITDA	 	  	Total Potential
Payout	 
	 At 90% Achievement of Target
	  	$	310,000	  	  	$	310,000	  	  	$	620,000	  
	 At 100% Achievement of Target
	  	$	815,000	  	  	$	815,000	  	  	$	1,630,000	  
	 At Achievement of 105% of Target
	  	$	1,222,500	  	  	$	1,222,500	  	  	$	2,445,000	  

  
  

 
  

			
	Monotype Imaging Holdings Inc. Confidential	  	Page 1

 The Total Potential Payment amount may be allocated if either (i) the Company achieves at least 105% of
the revenue target and 105% of the naEBITDA target or (ii) the Company achieves at least 100% of the revenue target and achieves 110% of the naEBITDA target with payment scaling beginning in excess of 105% up to 110% of such target. 

Calculation of the incentive compensation pool at each level is based upon the number of Executive Officers on the date this plan is approved by the
Management Development and Compensation Committee. If the Management Development and Compensation Committee determines that the total number of Executive Officers participating in this plan increased or decreased during 2013, the Management
Development and Compensation Committee may, but is not required to, adjust the incentive compensation pool at any or all levels. 

Individual Incentive Compensation for Executive Officers - Target Incentive Compensation: 

 

	•	 	 President/CEO = 100% of his or her base salary 

  

	•	 	 Executive Vice President = 55% of his or her base salary 

 

	•	 	 Sr. Vice Presidents = 50% of his or her base salary 

  

	•	 	 Other Executive Officers = 40% of his or her base salary. 

 

	•	 	 Actual incentive compensation payments to an Executive Officer will depend on (i) the satisfaction of the Company’s net adjusted EBITDA and
revenue targets, (ii) the satisfaction of the Executive Officer’s individual pre-determined performance objectives, and (iii) the Executive Officer’s overall performance during 2013. 

 

	•	 	 The satisfaction of the individual performance objectives of the President and Chief Executive Officer, and his overall performance in 2013, will be
reviewed by the Management Development and Compensation Committee. 

  

	•	 	 The satisfaction of the individual performance objectives, and overall performance in 2013, of all other Executive Officers will be reviewed by the
President and Chief Executive Officer, together with the Executive Officer’s supervisor. 

  

	•	 	 All bonus recommendations will be made by the President and Chief Executive Officer to the Management Development and Compensation Committee for
approval. 

  
  

 
  

			
	Monotype Imaging Holdings Inc. Confidential	  	Page 2

 Payments 
  

	•	 	 Payments will be made to Executive Officers following approval of such payments by the Management Development and Compensation Committee and receipt by
the Company of audited financial statements for the year ended December 31, 2013; provided, however, that such payments, if any, shall be made to Executive Officers between January 1st and March 15th of 2014. In the event that there
is a subsequent change in the Company’s audited financial statements that impacts whether the bonus targets were satisfied, Executive Officers will be required to repay to the Company any amount that was paid based solely on the satisfaction of
a bonus target that was not, after such change, satisfied. While the Management Development and Compensation Committee shall have no discretion to determine whether or not the repayment obligations shall be enforced, the final amounts to be repaid
by each Executive Officer shall be determined by the Management Development and Compensation Committee. 

 Plan Guidelines

  

	•	 	 The total Executive Officer incentive compensation pool is budgeted and accrued for plan year 2013. 

 

	•	 	 The Company must achieve 90% of the net adjusted EBITDA or revenue target in order for any incentive compensation to be paid under this plan.

  

	•	 	 The Management Development and Compensation Committee will make the final determination on all Executive Officer bonus payments.

  

	•	 	 The Executive Officer compensation pool set forth in the section entitled “Total Incentive Compensation Pool” may be increased by the
Management Development and Compensation Committee without amendment of this plan, but solely from amounts allocated by the Company to other Company incentive compensation plans in the event any such amounts are not paid or distributed under such
other plans. In addition, in the event the Executive Officer incentive compensation pool is decreased or not fully allocated or paid to the Executive Officers, such amounts may be added by the Company to other non-executive officer Company incentive
compensation plans. 

  

	•	 	 The payments to any Individual Executive Officer cannot exceed two times the annual base salary of such Executive Officer.

  

	•	 	 Although it is the intent of the Company to continue this plan through 2013, any Monotype compensation plan may be changed, amended, modified or
terminated at the sole discretion of the Management Development and Compensation Committee. 

  

	•	 	 No Monotype compensation plan represents a contract of employment, implied or otherwise. 

  
  

 
  

			
	Monotype Imaging Holdings Inc. Confidential	  	Page 3

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