Document:

exv10w46

Exhibit 10.46

EMPLOYMENT AGREEMENT

This
employment agreement is made and entered into as of this 26 day of July, 2010, by and between
Unilife Corporation (“Unilife”) and Dennis Pyers (“Pyers”). The term “Unilife” shall include its
subsidiaries, affiliates, assigns and successors in interest under Sections 7, 8, and 13.

WHEREAS, Unilife wishes to employ Pyers as Vice President and Controller, and Pyers wishes to enter
into this agreement to formalize his employment agreement; and

WHEREAS, Unilife is engaged in the business of designing, developing, manufacturing and supplying
innovative healthcare safety products for medical device and pharmaceutical industries; and

WHEREAS, Pyers will develop valuable relationships by virtue of his employment with Unilife, and
Pyers will have access to valuable confidential and proprietary information and trade secrets
belonging to Unilife; and

WHEREAS, Unilife and Pyers desire to set forth the terms of their employment relationship in this
agreement;

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

1. Term. This agreement shall be effective upon the counter-execution of this agreement
and is for an initial multi-year term commencing on the effective date and expiring on June 30,
2012. This agreement will automatically renew for one-year periods annually thereafter, unless
either party gives the other party thirty (30) days written notice in advance of the relevant
expiration date of its intention not to renew the agreement. Upon expiration or earlier
termination of this employment relationship, the parties will be relieved of their duties and
obligations under this agreement, except that the rights and obligations of Unilife under Section 6
below shall remain in full force and effect until all appropriate payments have been made to Pyers
and the rights and obligations of Pyers set forth in Sections 7 and 8 below shall remain in full
force and effect and shall survive the expiration or termination of this agreement, regardless of
the reason(s) for termination.

2. Position and Duties.

     (a) Unilife will employ Pyers as Vice President and Controller, and Pyers agrees to serve in
such capacity for Unilife with responsibility for Unilife’s accounting department and such other
duties as are assigned to him by the Chief Financial Officer of Unilife, and shall have vested in
him the authority and duties typically held by an employee in such position. Pyers shall report to
the Chief Financial Officer, with respect to the performance of these duties. In the performance
of these duties, Pyers shall devote his knowledge, skill, attention, energies and all of his
business time, and shall

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comply with all of Unilife’s policies, rules, and procedures, as they may be amended from time
to time. Pyers shall not engage in any endeavor that would conflict with the rendition of his
services to Unilife, either directly or indirectly, without the prior written consent of Unilife;
provided, however, Pyers may participate in civic, charitable, educational, industry and
professional organizations, to the extent that such participation does not interfere with the
performance of his duties hereunder; and Pyers may also serve on corporate boards and committees,
but only with the prior written consent of Unilife.

     (b) Notwithstanding the responsibilities and duties contained in Section 2(a) above, Pyers
acknowledges that all material decisions relating to the management of Unilife’s business will be
made by the Board of Directors of Unilife. In addition, any decisions which have the capacity to
affect significantly the financial standing of Unilife must be referred to the Board of Directors
of Unilife which will have ultimate control in respect of these matters.

3. Compensation.

     (a) Base Salary. Pyers shall be paid an annual base salary of One Hundred Eighty-Five
Thousand Dollars ($185,000.00) payable in accordance with Unilife’s standard payroll practices.
Pyers’ base salary will be subject to the customary withholding and employment taxes, as required
by law, with respect to compensation paid by an employer to an employee. At the discretion of the
Board of Directors of Unilife, Pyers shall be eligible for increases in base salary. Further,
Unilife will not reduce Pyers’ base salary to less than what is agreed to herein.

     (b) Bonus. Pyers shall be eligible to participate in Unilife’s Incentive Bonus Plan
in amounts and percentages as annually determined by Unilife’s Board of Directors and Chief
Executive Officer. For calendar year 2010, the potential cash bonus amount will be twenty-five
percent (25%) of base salary, prorated based on the number of days employed in 2010. For calendar
years 2011 and 2012, Pyers’ annual target cash bonus shall be a minimum of twenty-five percent
(25%) of base salary. Bonuses are subject to achievement of such goals and objectives as the
Compensation Committee of the Board of Directors, upon recommendation of the Chief Executive
Officer, determines in a set of Key Performance Indicators. Any bonus payable for a calendar year
shall be paid in a lump-sum payment in the following calendar year on or before March 15. Pyers’
bonuses will be subject to the customary withholding and employment taxes, as required by law, with
respect to compensation paid by an employer to an employee.

4. Benefits.

     (a) Benefits Generally Available to Unilife Employees. Pyers shall be eligible to
participate in Unilife’s benefits programs (including any equity incentive plan of Unilife or its
affiliates), as they may change from time to time. The benefits provided to Pyers will be the same
as the benefits provided to other similarly situated Unilife employees, and may be changed upon
expiration or other termination of the current benefits

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contracts. For further information, Pyers should review any applicable benefit plan
documents, which will govern the terms of the benefits.

     (b) Vacation. Pyers shall also receive four (4) weeks of paid vacation per calendar
year. Any unused vacation days may be carried over or paid in lieu thereof, to the extent allowed
by Unilife’s policy for similarly situated employees.

     (c) Equity Plans. All incentive compensation and stock-based compensation that Pyers
may receive from Unilife shall be subject to any policy adopted by Unilife, now or hereafter
existing, that imposes on Pyers’ stock ownership requirements, stock holding requirements, stock
liquidation restrictions or recoupment provisions provided that such requirements, restrictions and
recoupment provisions also apply to similarly situated members of senior management. Any stock
options and other stock-based awards that Pyers may receive from Unilife shall be governed by the
applicable, underlying award agreement.

     (d) Expenses. Unilife shall reimburse Pyers for all reasonable and necessary expenses
incurred by him in carrying out his duties under this Agreement in accordance with Unilife’s
business expense policies, including without limitation, requirements with respect to
reporting, documentation and payment of such expenses. All such expenses shall be paid no later
than December 31st of the calendar year following the year in which such expenses were
incurred.

5. Indemnification. Unilife agrees to provide Pyers with indemnification equivalent to
that provided to other members of senior management and pursuant to Unilife’s Directors and
Officers insurance policies, as amended from time to time.

6. Termination and Pay Upon Termination.

     (a) General Rule. In the event that Unilife terminates this agreement and Pyers’
employment without Cause as defined herein, including employment termination due to Unilife’s
election not to renew this agreement where Pyers was willing and able to continue performing
services under the terms of this agreement, Unilife will pay Pyers:

     (i) his base salary, at the rate in effect immediately before the date that Pyers’
employment terminates, for six (6) months, in accordance with Unilife’s standard payroll
practices then in effect, commencing on the fifteenth (15th) day after the date
that Pyers’ employment terminates and the General Release provided for in Section 10 of this
Agreement becomes irrevocable; and

     (ii) provided that Pyers is eligible for and timely elects to receive COBRA health care
continuation coverage, the cost of Pyers’ COBRA health care continuation coverage premiums
for six (6) months, commencing on the first of the month immediately after the month which
includes the date that Pyers’

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employment terminates and the General Release provided for in Section 10 of this
Agreement becomes irrevocable.

In the event that Pyers terminates this agreement for any reason, including Pyers’ election not to
renew the agreement, Pyers shall not receive any compensation or benefits from the time that he
ceases to devote full time and attention to Unilife’s business. In addition, Pyers agrees to
provide Unilife with thirty (30) days advance written notice of his intent to terminate his
employment, whether during the initial term or any renewal thereof. Upon termination of this
agreement, the parties will be relieved of their duties and obligations, except that the rights and
obligations of Unilife under this Section 6(a) shall remain in full force and effect until all
appropriate payments have been made to Pyers and the rights and obligations of Pyers set forth in
Sections 7 and 8 below shall remain in full force and effect and shall survive the expiration or
termination of this agreement, regardless of the reason(s) for termination. Upon termination of
this agreement, Pyers shall not have any further contact with any customers of Unilife until the
expiration of the conditions of Section 8 of this Agreement.

     (b) Termination Following a Change in Control.

     (i) Termination Pay. Notwithstanding paragraph (a) immediately above, in the
event that Pyers’ employment is terminated coincident with a Change in Control as defined in
subparagraph (iii) immediately below, then Unilife in lieu of and not in duplication of the
severance compensation provided for in paragraph (a) immediately above, shall pay Pyers:

     (A) his base salary, at the rate in effect immediately before the date that
Pyers’ employment terminates, for eighteen (18) months, in accordance with Unilife’s
standard payroll practices then in effect, commencing on the fifteenth
(15th) day after the date that Pyers’ employment terminates and the
General Release provided for in Section 10 of this Agreement becomes irrevocable,

     (B) provided that Pyers is eligible for and timely elects to receive COBRA
health care continuation coverage, the cost of Pyers’ COBRA health care continuation
coverage premiums for eighteen (18) months, commencing on with the first of the
month immediately after the month which includes the date that Pyers’ employment
terminates and the General Release provided for in Section 10 of this Agreement
becomes irrevocable,

     (C) payment of a lump-sum amount, equal to the amount of the bonus, if any,
earned by and paid to Pyers for the last completed fiscal year prior to the year in
which his employment terminates, which will be payable on the fifteenth
(15th) day after the date that Pyers’ employment terminates and the
General Release provided for in Section 10 of this Agreement becomes irrevocable,
and

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     (D) notwithstanding anything to the contrary, all of his outstanding and
unvested options and other stock-based awards shall vest immediately upon such
termination of employment following the Change in Control.

     (ii) Definition of “Cause”. “Cause” will mean any one or more of the
following:

     (A) material neglect of assigned duties, willful misconduct in connection with
the performance of duties, or refusal to perform assigned duties (other than by
reason of disability) which continues uncured for thirty (30) days following receipt
of written notice of such deficiency from the Chief Financial Officer, specifying
the scope and nature of the deficiency;

     (B) an act of dishonesty or any act that results in the loss of status as a
Certified Public Accountant;

     (C) engaging in illegal conduct;

     (D) committing a crime relating to an act of dishonesty or fraud;

     (E) engaging in any act of moral turpitude that causes material harm to Unilife
or its reputation;

     (F) breaching, in any material respect, the terms of any agreement with
Unilife; or

     (G) commencement of employment with any other employer while an employee of
Unilife without the prior written consent of the Chief Executive Officer.

Any determination of “Cause” as used herein will be made in good faith by the Chief
Executive Officer.

     (iii) Definition of “Change in Control”. “Change in Control” means a: (i)
Change in Ownership of Unilife Corporation, (ii) Change in Effective Control of Unilife
Corporation, or (iii) Change in the Ownership of Assets of Unilife Corporation, all as
described herein and construed in accordance with section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”).

     (A) A Change in Ownership of Unilife Corporation shall occur on the date that
any one Person acquires, or Persons Acting as a Group (or Group) acquire, ownership
of the capital stock of Unilife Corporation that, together with the stock held by
such Person or Group, constitutes more

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than fifty percent (50%) of the total fair market value or total voting power
of the capital stock of Unilife Corporation. However, if any one Person is, or
Persons Acting as a Group are, considered to own more than fifty percent (50%) of
the total fair market value or total voting power of the capital stock of Unilife
Corporation, the acquisition of additional stock by the same Person or Persons
Acting as a Group is not considered to cause a Change in Ownership of Unilife
Corporation or to cause a Change in Effective Control of Unilife Corporation. An
increase in the percentage of capital stock owned by any one Person, or Persons
Acting as a Group, as a result of a transaction in which Unilife Corporation
acquires its stock in exchange for property will be treated as an acquisition of
stock.

     (B) A Change in Effective Control of Unilife Corporation shall occur on the
date a majority of members of the Board of Directors of Unilife Corporation is
replaced during any twelve (12)-month period by directors whose appointment or
election is not endorsed by a majority of the members of the Board of Directors of
Unilife Corporation before the date of the appointment or election.

     (C) A Change in the Ownership of Assets of Unilife Corporation shall occur on
the date that any one Person acquires, or Persons Acting as a Group acquire (or has
or have acquired during the twelve (12)-month period ending on the date of the most
recent acquisition by such Person or Persons), assets (including tangible/real
property and intangible property (such as goodwill)) from Unilife Corporation the
total gross fair market value of which is more than fifty percent (50%) of the total
gross fair market value of all of the assets of Unilife Corporation immediately
before such acquisition or acquisitions. For this purpose, gross fair market value
means the value of the assets of Unilife Corporation, or the value of the assets
being disposed of, determined without regard to any liabilities associated with such
assets.

     (D) The following rules of construction apply in interpreting the definition of
Change in Control:

     (I) A Person means any individual, entity or group within the meaning
of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as
amended, other than employee benefit plans sponsored or maintained by
Unilife Corporation and by entities controlled by Unilife Corporation or an
underwriter of the capital stock of Unilife Corporation in a registered
public offering.

     (II) Persons will be considered to be Persons Acting as a Group if they
are owners of a corporation that enters into a merger, consolidation,
purchase or acquisition of stock, or similar business transaction with the
corporation. If a Person owns stock in both

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corporations that enter into a merger, consolidation, purchase or
acquisition of stock, or similar transaction, such shareholder is considered
to be acting as a Group with other shareholders only with respect to the
ownership in that corporation before the transaction giving rise to the
change and not with respect to the ownership interest in the other
corporation. Persons will not be considered to be acting as a Group solely
because they purchase assets of the same corporation at the same time or
purchase or own stock of the same corporation at the same time, or as a
result of the same public offering.

     (III) For purposes of this Section 6(b), fair market value shall be
determined in accordance with Code Section 409A.

     (IV) A Change in Control shall not include a transfer to a related
person as described in Code section 409A or a public offering of capital
stock of Unilife Corporation.

     (E) For purposes of this Section 6(b), Code section 318(a) applies to determine
stock ownership. Stock underlying a vested option is considered owned by the
individual who holds the vested option (and the stock underlying an unvested option
is not considered owned by the individual who holds the unvested option). For
purposes of the preceding sentence, however, if a vested option is exercisable for
stock that is not substantially vested (as defined by Treasury Regulation §1.83-3(b)
and (j), the stock underlying the option is not treated as owned by the individual
who holds the option.

7. Confidential Information.

     (a) Pyers acknowledges that Unilife has a valuable property interest in all aspects of its
business relationships with its customers, clients, vendors and suppliers. In the course of Pyers’
work with Unilife, Pyers has become aware of and familiar with secret and confidential information
of Unilife relating to its customers, clients, vendors and suppliers, and its internal business
operations. Secret and confidential information includes, but is not limited to, Unilife’s
business plans, customer lists, customer data, marketing plans, supplier and vendor lists and cost
information, software and computer programs, data processing systems and information contained
therein, financial statements, financial data, acquisition and divestiture plans, and any other
trade secrets or confidential or proprietary information, documents, reports, plans, or data, of or
about Unilife that is not already available to the public.

     (b) Pyers agrees that he will not, without the written consent of Unilife, during the term of
this agreement or thereafter, disclose or make any use of secret and confidential information,
except as may be required in the performance of his duties under Section 2 of this agreement.
Pyers agrees that, following the termination of his

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employment with Unilife for any reason, he will never use secret and confidential information to
compete with Unilife in any manner, and he will never disclose any secret and confidential
information to any other business or individual, unless such secret or confidential information is:
(i) publicly known through no breach of the provisions of this Section 7 by either party, (ii)
lawfully disclosed by a third party, or (iii) disclosed pursuant to legal requirement or court
order. In no event shall any disclosure made to investment banking firms or private equity firms
at the request of Unilife and as part of Pyers’ duties ever be considered a violation of this
Section 7.

     (c) Upon termination of this agreement, Pyers shall surrender to Unilife all records and all
paper and/or electronic copies made of those records that pertain to any aspect of the business of
Unilife, including all secret and confidential information.

8. Agreement Not To Compete.

     (a) In consideration for continued employment by Unilife and the benefits of this agreement,
Pyers agrees to be bound by the covenant not to compete as set forth in Section 8 of this agreement
below.

     (b) Pyers agrees that during the term of this agreement and for a period of two (2) years
following the termination of this agreement for any reason, he will not, directly or indirectly:

     (i) render services to, become employed by, be engaged as a consultant by, own, or
have a financial or other interest in (either as an individual, partner, joint venture,
owner, manager, employee, partner, officer, director, independent contractor, or other
similar role) any business that is engaged in any business activity that is in competition
with the activities of Unilife.

     (ii) induce, offer, assist, encourage, or suggest that another business or enterprise
offer employment to or enter into a consulting arrangement with any individual who is
employed by Unilife, or induce, offer, assist, encourage, or suggest that any Unilife
employee terminate her or her employment with Unilife, or accept employment with any other
business or enterprise.

     (c) In the event that Pyers commits any breach of Section 8(b) above, Pyers acknowledges that
Unilife would suffer substantial and irreparable harm and damages. Accordingly, Pyers hereby
agrees that in such event, Unilife shall be entitled to temporary and/or permanent injunctive
relief, without the necessity of proving damage, to enforce the provisions of this Section, all
without prejudice to any and all other remedies that Unilife may have at law or in equity and that
Unilife may elect or invoke. Pyers agrees that if any of the provisions of this Section are or
become unenforceable, the remainder hereof shall nevertheless remain binding upon him to the
fullest extent possible, taking into consideration the purposes and spirit of this agreement. Any
invalid or unenforceable provision is to be reformed to the maximum time, geographic

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and/or business limitations permitted by applicable laws, so as to be valid and enforceable.

     (d) Pyers expressly acknowledges and agrees that the restrictive covenants set forth in
Sections 7 and 8 above are absolutely necessary to protect the legitimate business interests of
Unilife, because he is employed in a position of trust and confidence and is provided with
extensive access to Unilife’s most confidential and proprietary trade secrets, and has significant
involvement in important business relationships, which constitute the goodwill of Unilife. Pyers
further agrees and acknowledges that these restrictive covenants are reasonable, will not restrict
him from earning a livelihood following the termination of employment, and are intended by the
parties to be enforceable following termination of employment for any reason.

     (e) In the event that Unilife must bring legal action to enforce or seek a remedy for any
breach of the provisions of Sections 7 or 8 of this agreement and Pyers is found by a court to have
breached any of these provisions, Pyers agrees to reimburse Unilife for any and all expenses,
including attorneys’ fees and court costs, incurred by it in enforcing the terms of these Sections
of the agreement.

9. Continuing Education and Membership Reimbursement. Unilife agrees to reimburse Pyers
for all the costs associated with maintaining his Certification as a Certified Public Accountant,
including but not limited to licensing fees, membership fees, the cost of continuing education (and
time off with pay to attend such seminars).

10. General Release. As a condition of receiving the severance compensation and benefits
described in Section 6, Unilife and Pyers will execute a mutual general release of claims (which is
in a form acceptable to Unilife). Such general release would not include rights to previously
vested options or claims for any compensation earned (including, without limitation, accrued
vacation), or reimbursement of expenses incurred, through the date of termination. Such release
must be agreed to, executed and irrevocable no later than 30 days following Pyers’ termination
date.

11. Dispute Resolution. Any controversy, claim or dispute involving the parties (or their
affiliated persons) directly or indirectly concerning this agreement shall be finally settled by
binding arbitration held in Harrisburg, Pennsylvania by one arbitrator (who is mutually acceptable
to both parties, as well as licensed to practice law in the Commonwealth of Pennsylvania) in
accordance with the rules of employment arbitration then followed by the American Arbitration
Association or any successor to the functions thereof. The arbitrator shall apply Pennsylvania law
in the resolution of all controversies, claims and disputes and shall have the right and authority
to determine how his or her decision or determination as to each issue or matter in dispute may be
implemented or enforced. Any decision or award of the arbitrator shall be final and conclusive for
both Pyers and Unilife (and its affiliates), and there shall be no appeal there from other than
causes of appeal allowed by the Federal Arbitration Act. Unilife shall bear all costs of the
arbitrator in any action brought under this agreement. The arbitrator shall have the power to
award attorney’s fees and arbitration costs to the prevailing party, if the award

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of attorney’s fees and litigation costs would be permitted by a court. The parties hereto agree
that any action to compel arbitration may be brought in the appropriate Pennsylvania state or
federal court, and in connection with such action to compel, the laws of the Commonwealth of
Pennsylvania and the Federal Arbitration Act shall control. Application may also be made to such
court for confirmation of any decision or award of the arbitrator, for an order of the enforcement
and for any other remedies, which may be necessary to effectuate such decision or award. The
parties hereto hereby consent to the jurisdiction of the arbitrator and of such court and waive any
objection to the jurisdiction of such arbitrator and court.

12. Non-waiver. A waiver of any provision of this agreement by either party shall not
prevent either party from enforcing that provision or any other provision hereof.

13. Assignment. This agreement is personal and may not be assigned by Pyers. Any
assignment of this agreement between Unilife (or its successor) and its affiliates (and their
successors) shall not constitute a termination of Pyers’ employment hereunder. This agreement
(including the Restrictive Covenants set forth in Sections 7 and 8) shall inure to the benefit of
and be binding upon any successor to Unilife. The parties specifically understand and agree that
the non-compete provisions of Section 8 will inure to the benefit of a successor and that Pyers
will remain bound by these provisions in the event of a sale or corporate reorganization of
Unilife.

14. Severability. Each provision of this agreement is severable and distinct from, and
independent of, every other provision hereof. If one provision hereof is declared void, the
remaining provisions shall remain in effect. Any provision of this agreement which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the
extent of such prohibition or unenforceability without invalidating or affecting the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.

15. Entire Agreement. This agreement contains the entire agreement of the parties
concerning the employment relationship and supersedes any prior agreements or understandings
between the parties concerning the terms and conditions of Pyers’ employment, whether oral or
written; provided, however, that Pyers’ equity grants shall be governed by the equity grant
documents and will be in such amounts as stated in Pyers’ offer letter dated July 14, 2010;
provided further, that any stock options or other stock-based awards provided to Pyers shall be
governed by Unilife’s stock incentive plans as they are amended from time to time, except as
provided herein. The parties acknowledge, in entering into this agreement that they have not
relied upon any promise or inducement not specifically set forth herein. Any changes to this
agreement must be in writing and signed by both parties.

16. Section 409A.

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     (a) This agreement is intended to comply with, or otherwise be exempt from, Code section 409A
and any regulations and Treasury guidance promulgated thereunder, and Unilife shall be required to
interpret the terms of this agreement as necessary to comply with the requirements of Code section
409A.

     (b) Unilife shall undertake to administer, interpret, and construe this agreement in a manner
that does not result in the imposition on Pyers of any additional tax, penalty, or interest under
Code section 409A.

     (c) Unilife and Pyers agree that they will execute any and all amendments to this agreement
permitted under applicable law as they mutually agree in good faith may be necessary to ensure
compliance with the distribution provisions of Code section 409A or as otherwise needed to ensure
that this agreement complies with that section.

     (d) The preceding provisions, however, shall not be construed as a guarantee by Unilife of any
particular tax effect to Pyers under this agreement. Unilife shall not be liable to Pyers for any
payment made under this agreement that is determined to result in an additional tax, penalty, or
interest under Code section 409A, nor for reporting in good faith any payment made under this
agreement as an amount includible in gross income under that section.

     (e) For purposes of Code section 409A, the right to a series of installment payments under
this agreement shall be treated as a right to a series of separate payments.

     (f) With respect to any reimbursement of future expenses of, or any provision of in-kind
benefits to, Pyers, as specified under this agreement, such reimbursement of expenses or provision
of in-kind benefits shall be subject to the following conditions: (i) the expenses eligible for
reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the
expenses eligible for reimbursement or the amount of in-kind benefits provided in any other taxable
year, except for any medical reimbursement arrangement providing for the reimbursement of expenses
referred to in Code section 105(b); (ii) the reimbursement of an eligible expense shall be made no
later than the end of the year after the year in which such expense was incurred; and (iii) the
right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for
another benefit. Any tax gross-up payment shall be made by no later than the end of the calendar
year following the year in which Pyers remits the taxes.

     (g) “Termination of employment,” “resignation,” or words of similar import, as used in this
agreement means, for purposes of any payments under this agreement that are payments of deferred
compensation subject to Code section 409A, Pyers’ “separation from service” as defined in that
section.

     (h) If a payment obligation under this agreement arises on account of Pyers’ separation from
service while Pyers is a “specified employee” (as defined under Code

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section 409A and determined in good faith by the Unilife), any payment of “deferred
compensation” (as defined under Treasury regulation section 1.409A-1(b)(1), after giving
effect to the exemptions in Treasury regulation sections 1.409A-1(b)(3) through (b)(12)) that is
scheduled to be paid within six (6) months after such separation from service shall accrue without
interest and shall be paid within 15 days after the end of the six-month period beginning on the
date of such separation from service or, if earlier, within 15 days after the appointment of the
personal representative or executor of Pyers’ estate following his death.

17. Excise Tax on Parachute Payments. Pyers shall bear all expense of, and be
solely responsible for, all federal, state, local or foreign taxes due with respect to any payment
received hereunder, including, without limitation, any excise tax imposed by Code section 4999;
provided, however, that any payment or benefit received or to be received by Pyers in connection
with a Change in Control or the termination of Pyers’ employment (whether payable pursuant to the
terms of this Agreement (“Contract Payments”) or any other plan, arrangements or agreement with
Unilife or any affiliate (collectively with the Contract Payments, the “Total Payments”) shall be
reduced to the extent necessary so that no portion thereof shall be subject to the excise tax
imposed by Code section 4999 but only if, by reason of such reduction, the net after-tax benefit
received by Pyers shall exceed the net after-tax benefit that would be received by Pyers if no such
reduction was made.

     For purposes of this Section 17, “net after-tax benefit” shall mean (i) the total of all
payments and the value of all benefits which Pyers receives or is then entitled to receive from
Unilife that would constitute “excess parachute payments” within the meaning of Code section 280G,
less (ii) the amount of all federal, state, local and foreign income taxes payable with respect to
the foregoing calculated at the maximum marginal income tax rate for each year in which the
foregoing shall be paid to Pyers (based on the rate in effect for such year as set forth in the
Code or other applicable tax law as in effect at the time of the first payment of the foregoing),
less (iii) the amount of excise taxes imposed with respect to the payments and benefits described
in (i) above by Code section 4999.

     The foregoing determination shall be made by a nationally recognized accounting firm (the
“Accounting Firm”) selected by Unilife and reasonably acceptable to Pyers (which may be, but will
not be required to be, Unilife’s independent auditors). The Accounting Firm shall submit its
determination and detailed supporting calculations to both Pyers and Unilife within fifteen (15)
days after receipt of a notice from either Unilife or Pyers that Pyers may receive payments which
may be “parachute payments.” If the Accounting Firm determines that a reduction is required by
this Section 17, the Contract Payments consisting of cash severance shall be reduced to the extent
necessary so that no portion of the Total Payments shall be subject to the excise tax imposed by
Code section 4999, and Unilife shall pay such reduced amount to Pyers in accordance with the terms
of this agreement. If the Accounting Firm determines that none of the Total Payments, after taking
into account any reduction required by this Section 17, constitutes a “parachute payment” within
the meaning of Code section 280G, it will, at

Page 12 of 13

 

the same time as it makes such determination, furnish Pyers and Unilife an opinion that
Pyers has substantial authority not to report any excise tax under Code section 4999 on his
federal income tax return.

     Pyers and Unilife shall each provide the Accounting Firm access to and copies of any books,
records, and documents in the possession of Pyers or Unilife, as the case may be, reasonably
requested by the Accounting Firm, and otherwise cooperate with the Accounting Firm in connection
with the preparation and issuance of the determinations and calculations contemplated by this
Section 17. The fees and expenses of the Accounting Firm for its services in connection with the
determinations and calculations contemplated by this Section 17 shall be borne by Unilife.

18. Counterparts. This agreement may be executed on separate counterparts, each of which
is deemed to be an original and all of which taken together constitute one and the same agreement.

19. Interpretation. The captions and headings of this agreement are not part of the
provisions hereof and shall have no force or effect.

20. Notices. Any notices, requests, demands and other communications provided for by this
agreement shall be sufficient if in writing and if hand delivered, sent by overnight courier, or
sent by registered or certified mail to Pyers at the last address he has filed in writing with
Unilife or, in the case of Unilife, to Unilife’s Chief Financial Officer at Unilife’s principal
executive offices.

21. Governing Law. The terms of this agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Pennsylvania without giving effect to provisions
thereof regarding conflict of laws.

22. Representation. Pyers represents and warrants to Unilife that he is not bound by any
restrictive covenants and has no prior or other obligations or commitments of any kind that would
in any way prevent, restrict, hinder or interfere with Pyers’ acceptance of employment or the
performance of all duties and services hereunder to the fullest extent of Pyers’ ability and
knowledge.

     IN WITNESS WHEREOF, and wishing to be legally bound, the parties have executed this agreement
as of the date first above written.

	 	 	 	 	 	 	 	 	 

	UNILIFE CORPORATION:	 	 	 	Dennis Pyers:	 	 
	 
	 	 	 	 	 	 	 	 
	By: 

Name:

	 	/s/ Alan Shortall
 

Alan Shortall
	 	 
	 	/s/ Dennis P. Pyers
 

	 	 
	Title:

	 	Chief Executive Officer	 	 	 	 	 	 

Page 13 of 13exv10w47

Exhibit 10.47

NON-REVOLVING CREDIT AND SECURITY AGREEMENT

THIS NON-REVOLVING CREDIT AND SECURITY AGREEMENT (the “Agreement”), dated as of August
13, 2010, is by and between UNILIFE CROSS FARM LLC, a Pennsylvania limited liability company
(“Borrower”), and UNIVEST NATIONAL BANK AND TRUST CO. (“Bank”);

NOW, THEREFORE, for and in consideration of the premises and of the mutual covenants herein
contained, and to induce Bank to extend credit to Borrower, the parties hereby agree as follows:

1. Definitions. Capitalized terms that are not otherwise defined herein shall have
the meanings set forth in Exhibit 1 hereto.

2. The Loan.

2.1. Non-Revolving Loan. Bank agrees, on the terms and conditions set forth in this
Agreement, to make Advances to Borrower from time to time during the Credit Period in amounts such
that the aggregate principal amount of Advances at any one time outstanding will not exceed the
lesser of (i) the Maximum Loan Amount or (ii) the Borrowing Base (the “Loan”). Within the
foregoing limit, Borrower may borrow and prepay Advances at any time during the Credit Period.
Amounts may not be reborrowed once prepaid.

2.2. Note. The Loan shall be evidenced by a non-revolving promissory note in the
face amount of Seven Million Dollars ($7,000,000.00) of even date herewith (the “Note”) and
shall be payable in accordance with the terms of the Note and this Agreement. Notwithstanding
anything contained herein or in the Note to the contrary, the principal amount outstanding under
the Note shall not exceed an aggregate amount equal to the Maximum Loan Amount.

2.3. Intentionally Omitted.

2.4. Advances.

(a) Each request for an Advance shall be made on telephonic notice or written request from the
Borrower to the Bank no later than 2:00 P.M. (local time in Philadelphia, Pennsylvania) on the date
of the requested Advance. Bank’s acceptance of such a request shall be indicated by its making the
Advance requested. Such an Advance shall be made available to Borrower in immediately available
funds at Bank’s address referred to in Section 10.4.

(b) Notwithstanding the foregoing, Bank may, in its sole and absolute discretion, make or
permit to remain outstanding Advances under the Loan in excess of the original principal amount of
the Note, and all such amounts shall (i) be part of the Indebtedness
evidenced by the Note, (ii) bear interest as provided herein, (iii) be payable upon demand by
Bank, and (iv) be entitled to all rights and security as provided under the Loan Documents.

 

 

2.5. Repayment of Loan.

(a) Borrower shall make monthly payments of all interest accrued on the Loan as provided in
the Note. The Loan shall mature, and the principal amount thereof and all unpaid interest, fees,
expenses and other amounts payable under the Loan Documents shall be due and payable as provided in
the Note.

(b) Bank may make Advances to Borrower (whether or not in excess of the lesser of the
Maximum Loan Amount and the Borrowing Base) and apply such amounts to the payment of interest,
fees, expenses and other amounts to which Bank may be entitled from time to time and Bank is hereby
irrevocably authorized to do so without the consent of Borrower.

(c) Borrower shall make each payment of principal of and interest on the Loan and fees
hereunder not later than 12:00 noon (local time Philadelphia, PA) on the date when due, without set
off, counterclaim or other deduction, in immediately available funds to Bank at its address
referred to in Section 10.4. Whenever any payment of principal of, or interest on, the Loan or of
fees shall be due on a day which is not a Business Day, the date for payment thereof shall be
extended to the next succeeding Business Day. If the date for any payment of principal is extended
by operation of law or otherwise, interest thereon shall be payable for such extended time.

(d) To the extent that the aggregate amount of all Advances exceeds the lesser of the
Maximum Loan Amount or the Borrowing Base, the amount of such excess will be paid immediately to
Bank upon Bank’s demand.

2.6. Overdue Amounts. Any payments not made as and when due shall bear interest from
the date due until paid at the Default Rate, in Bank’s discretion. In addition, in the event any
payments are fifteen (15) days or more beyond their due date, Borrower shall pay Bank a “late
charge” equal to $500.00 or five percent (5.00%) of the amount due on the due date, whichever is
less.

2.7. Calculation of Interest. All interest under the Note or hereunder shall be
calculated on the basis of the Actual/360 Computation, as defined in the Note.

2.8 Sales Tax. Borrower shall notify Bank if any Account includes any sales or other
similar tax and Bank may, but shall not be obligated to, remit any such taxes directly to the
taxing authority and make Advances therefor. In no event shall Bank be liable for any such taxes.

2.9 Fees. Borrower shall remit to Bank a commitment fee of Seventy Thousand Dollars
($70,000.00) on the date hereof.

 

2

 

2.10 Statement of Account. If Bank provides Borrower with a statement of account on a
periodic basis, such statement will be presumed complete and accurate and will be definitive and
binding on Borrower, unless objected to with specificity by Borrower in writing within forty-five
(45) days after receipt.

3. Conditions Precedent to Borrowing. Prior to any Advance, the following conditions
shall have been satisfied, in the sole opinion of Bank and its counsel:

3.1. Conditions Precedent to Initial Advance. In addition to any other requirement
set forth in this Agreement, Bank will not make the initial Advance under the Loan unless and until
the following conditions shall have been satisfied:

(a) Loan Documents. Borrower and each other party to any Loan Document, as
applicable, shall have executed and delivered this Agreement, the Note, and other required Loan
Documents, all in form and substance satisfactory to Bank.

(b) Supporting Documents. Borrower shall cause to be delivered to Bank the following
documents:

(i) A copy of the governing instruments of Borrower and the Surety, and a good
standing certificate of Borrower the Surety, certified by the appropriate official of its
state of incorporation and the State of Pennsylvania, if different;

(ii) Certified resolutions of the board of directors (or other appropriate Persons)
of Borrower and each other Person executing any Loan Documents, including, without
limitation, the Surety, signed by the Secretary or another authorized officer of Borrower or
such other Person, including, without limitation, the Surety, authorizing the execution,
delivery and performance of the Loan Documents;

(iii) Satisfactory evidence of payment of all fees due and reimbursement of all costs
incurred by Bank, and evidence of payment to other parties of all fees or costs which
Borrower is required under this Agreement to pay by the date of the initial Advance;

(iv) UCC searches and other Lien searches showing no existing security interests in
or Liens on the Collateral.

(c) Reserve Account. The Reserve Account, as defined in the Security and Control
Agreement Regarding Reserve Account executed by the Surety in favor of the Bank of even date
herewith, shall have been established and funded in a manner acceptable to the Bank.

(d) Perfection of Liens. UCC-1 financing statements and, if applicable, certificates
of title covering the Collateral shall duly have been recorded or filed in the manner and places
required by law to establish, preserve, protect and perfect the interests and rights
created or intended to be created by the Security Agreement; and all taxes, fees and other
charges in connection with the execution, delivery and filing of the Security Agreement and the
financing statements shall duly have been paid.

 

3

 

(e) Additional Documents. Borrower shall have delivered to Bank all additional
opinions, documents, certificates and other assurances that Bank or its counsel may require.

(f) Payment of Fees. Borrower shall have paid all fees, costs and expenses as
required by the Loan Documents in connection with the Closing.

3.2. Conditions Precedent to Each Advance. The following conditions, in addition to
any other requirements set forth in this Agreement, shall have been met or performed by the Advance
Date with respect to any Advance Request and each Advance Request (whether or not a written Advance
Request is required) shall be deemed to be a representation that all such conditions have been
satisfied:

(a) Advance Request. Borrower shall have delivered to Bank an Advance Request and
other information, as required under Section 2.4(a).

(b) No Default. No Default shall have occurred and be continuing or could occur upon
the making of the Advance in question and, if Borrower is required to deliver a written Advance
Request, Borrower shall have delivered to Bank an officer’s certificate to such effect, which may
be incorporated in the Advance Request.

(c) Correctness of Representations. All representations and warranties made by
Borrower and any Surety herein or otherwise in writing in connection herewith shall be true and
correct in all material respects with the same effect as though the representations and warranties
had been made on and as of the proposed Advance Date, and, if Borrower is required to deliver a
written Advance Request, Borrower shall have delivered to Bank an officer’s certificate to such
effect, which may be incorporated in the Advance Request.

(d) No Adverse Change. There shall have been no change which could have a Material
Adverse Effect on the condition, financial or otherwise, of Borrower, any Subsidiary or any Surety
from such condition as it existed on the date of the most recent financial statements of such
Person delivered prior to date hereof.

(e) Limitations Not Exceeded. The proposed Advance shall not cause the outstanding
principal balance of the Loan to exceed the lesser of the Maximum Loan Amount or the Borrowing
Base.

(f) No Termination. Bank shall not have received notice from any Surety or any
surety terminating or repudiating such Person’s guaranty of the Indebtedness incurred by Borrower.

 

4

 

(g) Further Assurances. Borrower shall have delivered such further documentation or
assurances as Bank may reasonably require.

4. Representations and Warranties. In order to induce Bank to enter into this
Agreement and to make the Loan provided for herein, Borrower makes the following representations
and warranties, all of which shall survive the execution and delivery of the Loan Documents.
Unless otherwise specified, such representations and warranties shall be deemed made as of the date
hereof and as of the Advance Date of any Advance by Bank to Borrower:

4.1. Valid Existence and Power. Each of Borrower and the Surety is a corporation or
limited liability company duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization and is duly qualified or licensed to transact business in all
places where the failure to be so qualified would have a Material Adverse Effect on it. Each of
Borrower and each other Person which is a party to any Loan Document (other than Bank) has the
power to make and perform the Loan Documents executed by it and all such instruments will
constitute the legal, valid and binding obligations of such Person, enforceable in accordance with
their respective terms, subject only to bankruptcy and similar laws affecting creditors’ rights
generally.

4.2. Authority. The execution, delivery and performance thereof by Borrower and each
other Person (other than Bank) executing any Loan Document have been duly authorized by all
necessary action of such Person, and do not and will not violate any provision of law or
regulation, or any writ, order or decree of any court or governmental or regulatory authority or
agency or any provision of the governing instruments of such Person, and do not and will not, with
the passage of time or the giving of notice, result in a breach of, or constitute a default or
require any consent under, or result in the creation of any Lien upon any property or assets of
such Person pursuant to, any law, regulation, instrument or agreement to which any such Person is a
party or by which any such Person or its respective properties may be subject, bound or affected.

4.3. Financial Condition. Other than as disclosed in financial statements delivered
on or prior to the date hereof to Bank, neither Borrower nor any Subsidiary nor (to the knowledge
of Borrower) any Surety has any direct or contingent obligations or liabilities (including any
guarantees or leases) or any material unrealized or anticipated losses from any commitments of such
Person. All such financial statements have been prepared in accordance with GAAP and fairly
present the financial condition of Borrower, Subsidiary or Surety, as the case may be, as of the
date thereof. Borrower is not aware of any material adverse fact (other than facts which are
generally available to the public and not particular to Borrower, such as general economic or
industry trends) concerning the conditions or future prospects of Borrower or any Subsidiary or any
Surety which has not been fully disclosed to Bank, including any adverse change in the operations
or financial condition of such Person since the date of the most recent financial statements
delivered to Bank. Each of Borrower and the Surety is Solvent, and after consummation of the
transactions set forth in this Agreement and the other Loan documents, Borrower and the Surety will
be Solvent.

 

5

 

4.4. Litigation. There are no suits or proceedings pending, or to the knowledge of
Borrower threatened, before any court or by or before any governmental or regulatory authority,
commission, bureau or agency or public regulatory body against or affecting Borrower, any
Subsidiary or any Surety, or their assets, which if adversely determined would have a Material
Adverse Effect on the financial condition or business of Borrower, such Subsidiary or such Surety.

4.5. Agreements, Etc. Neither Borrower nor any Subsidiary is a party to any
agreement or instrument or subject to any court order, governmental decree or any charter or other
corporate restriction, adversely affecting its business, assets, operations or condition (financial
or otherwise), nor is any such Person in default in the performance, observance or fulfillment of
any of the obligations, covenants or conditions contained in any agreement or instrument to which
it is a party, or any law, regulation, decree, order or the like.

4.6. Authorizations. All authorizations, consents, approvals and licenses required
under applicable law or regulation for the ownership or operation of the property owned or operated
by Borrower or any Subsidiary or for the conduct of any business in which it is engaged have been
duly issued and are in full force and effect, and it is not in default, nor has any event occurred
which with the passage of time or the giving of notice, or both, would constitute a default, under
any of the terms or provisions of any part thereof, or under any order, decree, ruling, regulation,
closing agreement or other decision or instrument of any governmental commission, bureau or other
administrative agency or public regulatory body having jurisdiction over such Person, which default
would have a material adverse effect on such Person. Except as noted herein, no approval, consent
or authorization of, or filing or registration with, any governmental commission, bureau or other
regulatory authority or agency is required with respect to the execution, delivery or performance
of any Loan Document.

4.7. Intentionally Omitted.

4.8. Collateral. The security interests granted to Bank herein and pursuant to any
other Security Agreement (a) constitute and, as to subsequently acquired property included in the
Collateral covered by the Security Agreement, will constitute, security interests under the Code
entitled to all of the rights, benefits and priorities provided by the Code and (b) are, and as to
such subsequently acquired Collateral will be, fully perfected, superior and prior to the rights of
all third persons, now existing or hereafter arising.

4.9. Taxes. Borrower, Surety and each Subsidiary have filed all federal and state
income and other tax returns which are required to be filed, and have paid all taxes as shown on
said returns and all taxes, including withholding, FICA and ad valorem taxes, shown
on all assessments received by it to the extent that such taxes have become due. None of Borrower,
Surety, nor any Subsidiary is subject to any federal, state or local tax Liens nor has such Person
received any notice of deficiency or other official notice to pay any taxes. Borrower, Surety and
each Subsidiary have paid all sales and excise taxes payable by it.

4.10. Intentionally Omitted.

 

6

 

4.11. Intentionally Omitted.

4.12. Judgment Liens. Neither Borrower, nor Surety, nor any Subsidiary, nor any of
their assets, are subject to any unpaid judgments (whether or not stayed) or any judgment liens in
any jurisdiction.

4.13.  Subsidiaries. Borrower has provided Bank with a list of its Subsidiaries.

4.14. Intentionally Omitted.

4.15. Intentionally Omitted.

4.16. Investment Company Act. Neither Borrower nor any Subsidiary is an “investment
company” as defined in the Investment Company Act of 1940, as amended.

4.17. Insider. Borrower is not, and no Person having “control” (as that term is
defined in 12 U.S.C.. 375(b)(5) or in regulations promulgated pursuant thereto) of Borrower is,
an “executive officer,” “director,” or “principal shareholder” (as those terms are defined in 12
U.S.C.. 375(b) or in regulations promulgated pursuant thereto) of Bank, of a bank holding company
of which Bank is a subsidiary, or of any subsidiary of a bank holding company of which Bank is a
subsidiary.

4.18. Compliance with Covenants; No Default. Borrower is, and upon funding of the
Loan will be, in compliance with all of the covenants hereof. No Default has occurred, and the
execution, delivery and performance of the Loan Documents and the funding of the Loan will not
cause a Default.

4.19. Full Disclosure. There is no material fact which is known or which should be
known by Borrower that Borrower has not disclosed to Bank which could have a Material Adverse
Effect. No Loan Document, nor any agreement, document, certificate or statement delivered by
Borrower to Bank, contains any untrue statement of a material fact or omits to state any material
fact which is known or which should be known by Borrower necessary to keep the other statements
from being misleading.

5. Affirmative Covenants of Borrower. Borrower covenants and agrees that from the
date hereof and until payment in full of the Indebtedness and the formal termination of this
Agreement, Borrower, Surety and each Subsidiary:

5.1. Use of Loan Proceeds. Shall use the proceeds of the Loan only to provide
interim funding for construction at its new global headquarters in York, Pennsylvania, and shall
furnish Bank all evidence that it may reasonably require with respect to such use.

5.2. Intentionally Omitted.

 

7

 

5.3. Insurance. Shall maintain such liability insurance, workers’ compensation
insurance, business interruption insurance and casualty insurance as may be required by law.

5.4. Notice of Default. Shall provide to Bank immediate notice of (a) the occurrence
of a Default and what action (if any) Borrower is taking to correct the same, (b) any material
litigation or material changes in existing litigation or any judgment against it or its assets, or
Surety or Surety’s assets, (c) any material damage or loss to property, and (d) any notice from
taxing authorities as to claimed deficiencies or any tax lien with respect to Borrower or Surety.

5.5. Intentionally Omitted.

5.6. Additional Information. Shall furnish to Bank the following periodic
information:

(a) No Default Certificates. Together with each request for an Advance, a
certificate of an authorized officer of Borrower that no Default or event of default then exists or
if a Default or event of default exists, the nature and duration thereof and Borrower’s intention
with respect thereto; and

(b) Other Information. Such other information reasonably requested by Bank from time
to time concerning the business, properties or financial condition of Borrower, Surety and any
Subsidiaries.

5.7. Maintenance of Existence and Rights. Shall preserve and maintain its corporate
existence, authorities to transact business, rights and franchises, trade names, patents,
trademarks and permits necessary to the conduct of its business.

5.8. Payment of Taxes, Etc. Shall pay before delinquent all of its debts and taxes,
except that Bank shall not unreasonably withhold its consent to nonpayment of taxes being actively
contested in accordance with law (provided that Bank may require bonding or other assurances).

5.9. Further Assurances. Shall take such further action and provide to Bank such
further assurances as may be reasonably requested to ensure compliance with the intent of this
Agreement and the other Loan Documents.

6. Negative Covenants of Borrower. Borrower covenants and agrees that from the date
hereof and until payment in full of the Indebtedness and the formal termination of this Agreement,
Borrower and each Subsidiary:

6.1. No Change in Name, Offices. Shall not, unless it shall have given 60 days’
advance written notice thereof to Bank, change its name or the location of its chief executive
office or other office where books or records are kept.

 

8

 

6.2. Margin Stock. Shall not use any proceeds of the Loan to purchase or carry any
margin stock (within the meaning of Regulation U of the Board of Governors of Federal Reserve
System) or extend credit to others for the purpose of purchasing or carrying any margin stock.

6.3. Change of Trade or Fictitious Name. Shall give Bank thirty (30) days prior
written notice of any new trade or fictitious name. Borrower’s use of any trade or fictitious name
shall be in compliance with all laws regarding the use of such names.

6.4. Liquidation, Mergers, Consolidations and Dispositions of Substantial Assets.
Shall not dissolve or liquidate, or become a party to any merger or consolidation, or acquire by
purchase, lease or otherwise, all or a substantial part (more than 10% in the aggregate during the
term hereof) of the assets of any Person, or sell, transfer, lease or otherwise dispose of all or a
substantial part (more than 10% in the aggregate during the term hereof) of its property or assets,
or sell or dispose of any equity ownership interests in any Subsidiary.

7. Intentionally Omitted.

8. Default.

8.1. Events of Default. Each of the following shall constitute an Event of Default:

(a) There shall occur any default by Borrower in the payment, when due, of any principal of or
interest on the Note, any amounts due hereunder or any other Loan Document, or any other
Indebtedness; or

(b) There shall occur any default by Borrower or any other party to any Loan Document or other
loan document or agreement between Borrower or any Surety and the Bank (other than Bank) in the
performance of any agreement, covenant or obligation contained in this Agreement or such Loan
Document or other document or agreement not provided for elsewhere in this Section 8; or

(c) Any representation or warranty made by Borrower or any other party to any Loan Document
(other than Bank) herein or therein or in any certificate or report furnished in connection
herewith or therewith shall prove to have been untrue or incorrect in any material respect when
made; or

(d) Any other obligation now or hereafter owed by Borrower or any Subsidiary or Surety to Bank
shall be in default and not cured within the grace period, if any, which default entitles the
obligee to accelerate any such obligations or exercise other remedies with respect thereto; or

 

9

 

(e) Borrower or any Subsidiary or Surety shall (A) voluntarily dissolve, liquidate or
terminate operations or apply for or consent to the appointment of, or the taking of possession by,
a receiver, custodian, trustee or liquidator of such Person or of all or of a substantial part of
its assets, (B) admit in writing its inability, or be generally unable, to pay its debts as the
debts become due, (C) make a general assignment for the benefit of its creditors, (D) commence a
voluntary case under the federal Bankruptcy Code (as now or hereafter in effect), (E) file a
petition seeking to take advantage of any other law relating to bankruptcy, insolvency,
reorganization, winding-up, or composition or adjustment of debts, (F) fail to controvert in a
timely and appropriate manner, or acquiesce in writing to, any petition filed against it in an
involuntary case under Bankruptcy Code, or (G) take any corporate action for the purpose of
effecting any of the foregoing; or

(f) An involuntary petition or complaint shall be filed against Borrower or any Subsidiary or
any Surety seeking bankruptcy relief or reorganization or the appointment of a receiver, custodian,
trustee, intervenor or liquidator of Borrower or any Subsidiary or any Surety, of all or
substantially all of its assets, and such petition or complaint shall not have been dismissed
within sixty (60) days of the filing thereof; or an order, order for relief, judgment or decree
shall be entered by any court of competent jurisdiction or other competent authority approving or
ordering any of the foregoing actions; or

(g) A judgment in excess of $10,000 shall be rendered against the Borrower or any Subsidiary
or Surety and shall remain undischarged, undismissed and unstayed for more than ten days (except
judgments validly covered by insurance with a deductible of not more than $10,000) or there shall
occur any levy upon, or attachment, garnishment or other seizure of, any material portion of the
Collateral or other assets of Borrower, any Subsidiary or any Surety by reason of the issuance of
any tax levy, judicial attachment or garnishment or levy of execution; or

(h) Borrower, any Subsidiary or any Surety shall fail to pay, on demand, any returned or
dishonored draft, check, or other item which has been presented to Bank and for which Borrower has
received provisional credit; or

(i) Any Surety shall repudiate or revoke any Surety Agreement; or

(j) The making of any levy, seizure or attachment upon any assets of the Borrower or Surety;
or

(k) There shall occur any change in the condition (financial or otherwise) of Borrower and/or
any Surety which, in the reasonable opinion of Bank, could have a Material Adverse Effect.

8.2. Remedies. If any Default shall occur, Bank may, without notice to Borrower, at
its option, withhold further Advances to Borrower. If an Event of Default shall have occurred and
be continuing, Bank may at its option, declare any or all Indebtedness to be immediately due and
payable (if not earlier demanded), terminate its obligation to make Advances to Borrower, bring
suit against Borrower to collect the Indebtedness, exercise any
remedy available to Bank hereunder or at law and take any action or exercise any remedy
provided herein or in any other Loan Document or under applicable law. No remedy shall be
exclusive of other remedies or impair the right of Bank to exercise any other remedies.

 

10

 

8.3. Receiver. In addition to any other remedy available to it, Bank shall have the
absolute right, upon the occurrence of an Event of Default, to seek and obtain the appointment of a
receiver to take possession of and operate and/or dispose of the business and assets of Borrower
and any costs and expenses incurred by Bank in connection with such receivership shall bear
interest at the Default Rate, at Bank’s option.

8.4 Deposits; Insurance. After the occurrence of an Event of Default, Borrower
authorizes Bank to collect and apply against the Indebtedness when due any cash or deposit accounts
in its possession, and irrevocably appoints Bank as its attorney-in-fact to endorse any check or
draft or take other action necessary to obtain such funds.

9. Intentionally Omitted.

10. Miscellaneous.

10.1. No Waiver, Remedies Cumulative. No failure on the part of Bank to exercise,
and no delay in exercising, any right hereunder or under any other Loan Document shall operate as a
waiver thereof, nor shall any single or partial exercise of any right hereunder preclude any other
or further exercise thereof or the exercise of any other right. The remedies herein provided are
cumulative and are in addition to any other remedies provided by law, any Loan Document or
otherwise.

10.2. Survival of Representations. All representations and warranties made herein
shall survive the making of the Loan hereunder and the delivery of the Note, and shall continue in
full force and effect so long as any Indebtedness is outstanding, there exists any commitment by
Bank to Borrower, and until this Agreement is formally terminated in writing.

10.3. Indemnity By Borrower; Expenses. In addition to all other Indebtedness,
Borrower agrees to defend, protect, indemnify and hold harmless Bank and its Affiliates and all of
their respective officers, directors, employees, attorneys, consultants and agents from and against
any and all losses, damages, liabilities, obligations, penalties, fees, costs and expenses
(including, without limitation, attorneys’ and paralegals’ fees, costs and expenses) incurred by
such indemnitees, whether prior to or from and after the date hereof, as a result of or arising
from or relating to (i) the due diligence effort (including, without limitation, public record
search, recording fees, examinations and investigations of the properties of Borrower and
Borrower’s operations), negotiation, preparation, execution and/or performance of any of the Loan
Documents or of any document executed in connection with the transactions contemplated thereby,
maintenance of the Loan by Bank, and any and all amendments, modifications, and supplements of any
of the Loan Documents or restructuring of the Indebtedness, (ii) any suit, investigation, action or
proceeding by any Person (other than Borrower), whether threatened or initiated, asserting a claim
for any legal or

 

11

 

equitable remedy against any Person under any statute, regulation or common law principle, arising from or in connection with Bank’s
furnishing of funds to Borrower under this Agreement, (iii) Bank’s preservation, administration and
enforcement of its rights under the Loan Documents and applicable law, including fifteen percent
(15%) of the outstanding Indebtedness as attorneys fees if collected by or through an attorney at
law and disbursements of counsel for Bank in connection therewith, whether suit be brought or not
and whether incurred at trial or on appeal; and/or (iv) any matter relating to the financing
transactions contemplated by the Loan Documents or by any document execution in connection with the
transactions contemplated thereby, other than for such loss, damage, liability, obligation,
penalty, fee, cost or expense arising from such indemnitee’s gross negligence or willful
misconduct. In addition, Borrower agrees to pay and save Bank harmless against any liability for
payment of any state documentary stamp taxes, intangible taxes or similar taxes (including interest
or penalties, if any) which may now or hereafter be determined to be payable in respect to the
execution, delivery or recording of any Loan Document or the making of any Advance, whether
originally thought to be due or not, and regardless of any mistake of fact or law on the part of
Bank or Borrower with respect to the applicability of such tax. Borrower’s obligation for
indemnification for all of the foregoing losses, damages, liabilities, obligations, penalties,
fees, costs and expenses of Bank shall be part of the Indebtedness, chargeable against Borrower’s
loan account, and shall survive termination of this Agreement.

10.4. Notices. Any notice or other communication hereunder under the Note to any
party hereto or thereto shall be by hand delivery, overnight delivery, facsimile, telegram, telex
or registered or certified mail and unless otherwise provided herein shall be deemed to have been
given or made when delivered, telegraphed, telexed, faxed or three (3) Business Days after having
been deposited in the mails, postage prepaid, addressed to the party at its address specified below
(or at any other address that the party may hereafter specify to the other parties in writing):

	 	 	 	 	 
	 

	 	Bank:
	 	Univest National Bank and Trust Co.
	 

	 	 	 	14 N. Main Street
	 

	 	 	 	P.O. Box 64197
	 

	 	 	 	Souderton, PA 18964-0197
	 

	 	 	 	Attn: William D. Maeglin, Executive Vice President

 

12

 

	 	 	 	 	 
	 

	 	with a copy to:	 	 
	 

	 	 	 	Fox Rothschild LLP
	 

	 	 	 	10 Sentry Parkway, suite 200
	 

	 	 	 	P.O. Box 3001
	 

	 	 	 	Blue Bell, PA 19422-3001
	 

	 	 	 	Attn: Marc B. Davis, Esquire
	 
	 	 	 	 
	 

	 	Borrower:
	 	Unilife Cross Farm LLC
	 

	 	 	 	637 Lowther Road
	 

	 	 	 	Lewisberry, PA 17339
	 

	 	 	 	Attn: Chief Financial Officer

10.5. Governing Law. This Agreement and the Loan Documents shall be deemed contracts
made under the laws of the Commonwealth of Pennsylvania and shall be governed by and construed in
accordance with the laws of said state (excluding its conflict of laws provisions if such
provisions would require application of the laws of another jurisdiction).

10.6. Successors and Assigns. This Agreement shall be binding upon and shall inure
to the benefit of Borrower and Bank, and their respective successors and assigns; provided, that
Borrower may not assign any of its rights hereunder without the prior written consent of Bank, and
any such assignment made without such consent will be void.

10.7. Counterparts. This Agreement may be executed in any number of counterparts and
by different parties hereto in separate counterparts, each of which when so executed and delivered
shall be deemed an original and all of which when taken together shall constitute but one and the
same instrument.

10.8. No Usury. Regardless of any other provision of this Agreement, the Note or in
any other Loan Document, if for any reason the effective interest should exceed the maximum lawful
interest, the effective interest shall be deemed reduced to, and shall be, such maximum lawful
interest, and (i) the amount which would be excessive interest shall be deemed applied to the
reduction of the principal balance of the Note and not to the payment of interest, and (ii) if the
loan evidenced by the Note has been or is thereby paid in full, the excess shall be returned to the
party paying same, such application to the principal balance of the Note or the refunding of excess
to be a complete settlement and acquittance thereof.

 

13

 

10.9. Powers. All powers of attorney granted to Bank are coupled with an interest
and are irrevocable.

10.10. Approvals. If this Agreement calls for the approval or consent of Bank, such
approval or consent may be given or withheld in the discretion of Bank unless otherwise specified
herein.

10.11. Litigation. BORROWER CONSENTS TO THE JURISDICTION OF THE COURTS OF THE
COMMONWEALTH OF PENNSYLVANIA AND THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF
PENNSYLVANIA IN CONNECTION WITH ANY CLAIM OR DISPUTE ARISING UNDER OR IN CONNECTION WITH THIS
AGREEMENT OR THE OTHER LOAN DOCUMENTS. IF ANY ACTION IN CONNECTION WITH ANY SUCH CLAIM IS
COMMENCED BY THE BANK AGAINST THE BORROWER IN ANY SUCH COURT, THE BORROWER ALSO AGREES THAT SERVICE
OR PROCESS MAY BE MADE ON THE BORROWER BY CERTIFIED OR REGISTERED MAIL ADDRESSED TO THE BORROWER AT
ITS ADDRESS SPECIFIED IN SECTION 10.4.

THE BORROWER WAIVES TRIAL BY JURY AND THE RIGHT TO INTERPOSE ANY DEFENSE BASED ON ANY STATUTE
OF LIMITATIONS OR CLAIM OF LACHES IN ANY ACTION BY OR AGAINST THE BORROWER IN CONNECTION WITH ANY
CLAIM OR DISPUTE ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS.

10.12. Participations. Bank shall have the right to enter into one or more
participation with other lenders with respect to the Indebtedness. Upon prior notice to Borrower
of such participation, Borrower shall thereafter furnish to such participant any information
furnished by Borrower to Bank pursuant to the terms of the Loan Documents. Nothing in this
Agreement or any other Loan Document shall prohibit Bank from pledging or assigning this Agreement
and Bank’s rights under any of the other Loan Documents, including collateral therefor, to any
Federal Reserve Bank in accordance with applicable law.

10.13. Multiple Borrowers. If more than one Person is named as Borrower hereunder,
all Indebtedness, representations, warranties, covenants and indemnities set forth in the Loan
Documents to which such Person is a party shall be joint and several. Bank shall have the right to
deal with any individual of any Borrower with regard to all matters concerning the rights and
obligations of Bank hereunder and pursuant to applicable law with regard to the transactions
contemplated under the Loan Documents. All actions or inactions of the officers, managers, members
and/or agents of any Borrower with regard to the transactions contemplated under the Loan Documents
shall be deemed with full authority and binding upon all Borrowers hereunder. Each Borrower hereby
appoints each other Borrower as its true and lawful attorney-in-fact, with full right and power,
for purposes of exercising all rights of such Person hereunder and under applicable law with regard
to the transactions contemplated under the Loan Documents. The foregoing is a material inducement
to the agreement of Bank to enter into the terms hereof and to consummate the transactions
contemplated hereby.

 

14

 

10.14. Waiver of Certain Defenses. To the fullest extent permitted by applicable
law, upon the occurrence of any Event of Default, neither Borrower nor anyone claiming by or under
Borrower will claim or seek to take advantage of any law requiring Bank to attempt to realize upon
any Collateral or collateral of any surety or guarantor, or any appraisement, evaluation, stay,
extension, homestead, redemption or exemption laws now or hereafter in force in order to prevent or
hinder the enforcement of this Agreement. Borrower, for itself and all who may at any time claim
through or under Borrower, hereby expressly waives to the fullest extent permitted by law the
benefit of all such laws. All rights of Bank and all obligations of Borrower hereunder shall be
absolute and unconditional irrespective of (i) any change in the time, manner or place of payment
of, or any other term of, all or any of the Indebtedness, or any other amendment or waiver of or
any consent to any departure from any provision of the Loan Documents, (ii) any exchange, release
or non-perfection of any other collateral given as security for the Indebtedness, or any release or
amendment or waiver of or consent to departure from any guaranty for all or any of the
Indebtedness, or (iii) any other circumstance which might otherwise constitute a defense available
to, or a discharge of, Borrower or any third party, other than payment and performance in full of
the Indebtedness.

10.15. Time of the Essence. Time is of the essence of this Agreement.

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

	 	 	 	 	 	 	 	 	 
	 	 	 	 	UNIVEST NATIONAL BANK AND TRUST CO.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ William D. Maeglin	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name/Title: William D. Maeglin, Executive Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	UNILIFE CROSS FARM LLC, by its sole member,

UNILIFE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ J. Christopher Naftzger	 	By:	 	/s/ R. Richard Wieland	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name/Title: J. Christopher
Naftzger
                    Secretary
	 	 	 	Name/Title: R. Richard Wieland
                   
Executive VP and CFO	 	 
	 
	 	 	 	 	 	 	 	 
	(CORPORATE SEAL)	 	 	 	 	 	 

 

15

 

SCHEDULE OF EXHIBITS

(If any exhibit is omitted, the information called for therein

shall be considered “None” or “Not Applicable”)

	 	 	 	 	 
	Exhibit	 	Section Reference	 	Title
	 
	1

	 	1     (“Definitions”)
	 	Definitions

 

16

 

EXHIBIT 1

Definitions

1.1 Defined Terms:

“Advance” means an advance of proceeds of the Loan to Borrower pursuant to this
Agreement.

“Advance Date” means the date on which an Advance is made.

“Advance Request” means the written request for an Advance under the Loan as
identified in Subsection 2.5(a) hereof and shall also include presentments triggering an automatic
Advance under the Services Agreement.

“Affiliate” of a Person means (a) any Person directly or indirectly owning 5% or more
of the voting stock or rights of such named Person or of which the named Person owns 5% or more of
such voting stock or rights; (b) any Person controlling, controlled by or under common control with
such named Person; (c) any officer, director or employee of such named Person or any Affiliate of
the named Person; and (d) any family member of the named Person or any Affiliate of such named
Person.

“Borrowing Base” means, at any time, the sum held in the reserve account established
by Surety with Bank and subject to the terms of a Security Agreement Regarding Reserve Account of
even date herewith made by Surety in favor of Bank, less $100,000; provided, however, that only
such monies as are otherwise available for withdrawal (and not subject to any hold) shall be
included in the definition of Borrowing Base.

“Business Day” means a weekday on which commercial banks are open for business in
Philadelphia, Pennsylvania.

“Code” means the Uniform Commercial Code, as in effect in Pennsylvania from time to
time.

“Collateral” shall have the meaning given to it in the Security and Control Agreement
Regarding Reserve Account executed by the Surety in favor of the Bank of even date herewith.

“Default Rate” means the highest lawful rate of interest per annum specified in any
Note to apply after a default under such Note or, if no such rate is specified, a rate equal to the
lesser of (a) the rate of interest provided under the Note plus two percent (2%) per annum and (b)
the highest rate of interest allowed by law.

“Disputes” has the meaning set forth in Section 10.11.

 

17

 

“Event of Default” means any event specified as such in Section 8.1 hereof
(“Events of Default”), provided that there shall have been satisfied any requirement in
connection with such event for the giving of notice or the lapse of time, or both;
“Default” or “default” means any of such events, whether or not any such requirement for
the giving of notice or the lapse of time or the happening of any further condition, event or act
shall have been satisfied.

“GAAP” means generally accepted accounting principles as in effect in the United
States from time to time.

“Indebtedness” means all obligations now or hereafter owed to Bank by Borrower or any
Surety, whether related or unrelated to the Loan, including, without limitation, amounts owed or to
be owed under the terms of the Loan Documents, or arising out of the transactions described
therein, including, without limitation, the Loan, sums advanced to pay overdrafts on any account
maintained by Borrower with Bank, together with all interest accruing thereon, all obligations
under any swap agreements as defined in 11 U.S.C.. 101 between Bank and Borrower whenever executed,
all fees, all costs of collection, attorneys’ fees and expenses of or advances by Bank which Bank
pays or incurs in discharge of obligations of Borrower or to inspect, repossess, protect, preserve,
store or dispose of any Collateral, whether such amounts are now due or hereafter become due,
direct or indirect and whether such amounts due are from time to time reduced or entirely
extinguished and thereafter re-incurred.

“Lien” means any mortgage, pledge, statutory lien or other lien arising by operation
of law, security interest, trust arrangement, security deed, financing lease, collateral assignment
or other encumbrance, conditional sale or title retention agreement, or any other interest in
property designed to secure the repayment of Indebtedness, whether arising by agreement or under
any statute or law or otherwise.

“Loan” means the non-revolving loan identified in Section 2.1 hereof.

“Loan Documents” means this Agreement, any Security Agreement, any Note, any Surety
Agreement, the Advance Requests, UCC-1 financing statements and all other documents and instruments
now or hereafter evidencing, describing, guaranteeing or securing the Indebtedness contemplated
hereby or delivered in connection herewith or therewith, as they may be modified.

“Material Adverse Effect” means any (i) material adverse effect upon the validity,
performance or enforceability of any of the Loan Documents or any of the transactions contemplated
hereby or thereby, (ii) material adverse effect upon the properties, business, prospects or
condition (financial or otherwise) of Borrower and/or any other Person obligated under any of the
Loan Documents, or (iii) material adverse effect upon the ability of Borrower or any other Person
to fulfill any obligation under any of the Loan Documents.

“Maximum Loan Amount” means $7,000,000.

 

18

 

“Note” shall have the meaning set forth in Section 2.2 and any other promissory note
now or hereafter evidencing any Indebtedness, and all modifications, extensions and renewals
thereof.

“Person” means any natural person, corporation, unincorporated organization, trust,
joint-stock company, joint venture, association, company, limited or general partnership, any
government or any agency or political subdivision of any government, or any other entity or
organization.

“Credit Period” means the period from and including the date of this Agreement to but
not including the Termination Date.

“Security Agreement” means security agreement or similar instrument now or hereafter
executed by Borrower or other Person granting Bank a security interest in any collateral to secure
the Indebtedness.

“Solvent” means, as to any Person, that such Person has capital sufficient to carry on
its business and transactions in which it is currently engaged and all business and transactions in
which it is about to engage, is able to pay its debts as they mature, and has assets having a fair
valuation greater than its liabilities, at fair valuation.

“Subsidiary” means any corporation, partnership or other entity in which Borrower,
directly or indirectly, owns more than fifty percent (50%) of the stock, capital or income
interests, or other beneficial interests, or which is effectively controlled by such Person.

“Surety” means Unilife Corporation and any other Person now or hereafter guaranteeing,
endorsing or otherwise becoming liable for any Indebtedness.

“Surety Agreement” means any guaranty instrument now or hereafter executed and
delivered by any Surety to Bank, as it may be modified.

“Termination Date” means February 13, 2011.

1.2. Financial Terms. All financial terms used herein shall have the meanings assigned
to them under GAAP unless another meaning shall be specified.

 

19

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