Document:

Exhibit 10.1

 

DIRECTOR
INDEMNIFICATION AGREEMENT

This
Indemnification Agreement (“Agreement”) is made as of November 5, 2014 by and between Anika Therapeutics,
Inc., a Massachusetts corporation (the “Company”), and ____________ (“Indemnitee”).

 

RECITALS

 

WHEREAS, the Company desires
to attract and retain the services of highly qualified individuals, such as Indemnitee, to serve the Company;

 

WHEREAS, in order to induce
Indemnitee to provide or continue to provide services to the Company, the Company wishes to provide for the indemnification of,
and advancement of expenses to, Indemnitee to the maximum extent permitted by law;

 

WHEREAS, the Articles
of Organization (as amended and in effect on the date hereof, the “Charter”) and the Bylaws (as amended and
in effect on the date hereof, the “Bylaws” and, together with the Charter, the “Organizational Documents”)
of the Company require indemnification of the directors, officers and employees of the Company, and Indemnitee may also be entitled
to indemnification pursuant to the Massachusetts Business Corporation Act (the “MBCA”);

 

WHEREAS, the Bylaws
and the MBCA expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate
that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect
to indemnification;

 

WHEREAS, the Board
of Directors of the Company (the “Board”) has determined that the increased difficulty in attracting and retaining
highly qualified persons such as Indemnitee is detrimental to the best interests of the Company’s shareholders;

 

WHEREAS, it is reasonable,
prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such
persons to the fullest extent permitted by applicable law, regardless of any amendment or revocation of the Organizational Documents
so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; and

 

WHEREAS, this Agreement
is a supplement to and in furtherance of the indemnification provided in the Organizational Documents and any resolutions adopted
pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

 

NOW, THEREFORE, in
consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

 

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Section 1. Services
to the Company. Indemnitee agrees to serve as a director of the Company. Indemnitee may at any time and for any reason resign
from such position (subject to any other contractual obligation or any obligation imposed by law), in which event the Company shall
have no obligation under this Agreement to continue Indemnitee in such position. This Agreement shall not be deemed an employment
contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee.

 

Section 2. Definitions.

 

As used in this Agreement:

 

(a)“Change in Control”
shall mean (i) the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person
or entity, (ii) a merger, reorganization or consolidation pursuant to which the holders of the Company’s outstanding voting
power and outstanding stock immediately prior to such transaction do not own a majority of the outstanding voting power and outstanding
stock or other equity interests of the resulting or successor entity (or its ultimate parent, if applicable) immediately upon completion
of such transaction, (iii) the sale of all of the capital stock of the Company to an unrelated person, entity or group thereof
acting in concert, or (iv) any other transaction in which the owners of the Company’s outstanding voting power immediately
prior to such transaction do not own at least a majority of the outstanding voting power of the Company or any successor entity
immediately upon completion of the transaction other than as a result of the acquisition of securities directly from the Company.

 

(b) “Corporate
Status” describes the status of a person as a current or former director of the Company or current or former director,
manager, partner, officer, employee, agent or trustee of any other Enterprise which such person is or was serving at the request
of the Company.

 

(c)“Enforcement
Expenses” shall include all reasonable attorneys’ fees, court costs, transcript costs, fees of experts, travel
expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other out-of-pocket
disbursements or expenses of the types customarily incurred in connection with an action to enforce indemnification or advancement
rights, or an appeal from such action. Expenses, however, shall not include fees, salaries, wages or benefits owed to Indemnitee.

 

(d)“Enterprise”
shall mean any corporation (other than the Company), partnership, joint venture, trust, employee benefit plan, limited liability
company, or other legal entity of which Indemnitee is or was serving at the request of the Company as a director, manager, partner,
officer, employee, agent or trustee.

 

(e)“Expenses”
shall include all reasonable attorneys’ fees, court costs, transcript costs, fees of experts, travel expenses, duplicating
costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other out-of-pocket disbursements
or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating,
being or preparing to be a witness in, or otherwise participating in, a Proceeding or an appeal resulting from a Proceeding. Expenses,
however, shall not include amounts paid in settlement by Indemnitee, the amount of judgments or fines against Indemnitee or compensatory,
service or similar fees, salaries, wages or benefits owed to Indemnitee.

 

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(f)“Special Legal
Counsel” means a law firm, or a partner (or, if applicable, member or shareholder) of such a law firm, that is experienced
in matters of Massachusetts corporation law and neither presently is, nor in the past has been, retained to represent: (i) the
Company, any subsidiary of the Company, any Enterprise or Indemnitee in any matter material to any such party; or (ii) any other
party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Special
Legal Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing,
would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s
rights under this Agreement. The Company agrees to pay the reasonable fees and expenses of the Special Legal Counsel referred to
above and to fully indemnify such counsel against any and all expenses, claims, liabilities and damages arising out of or relating
to this Agreement or its engagement pursuant hereto.

 

(g)The term “Proceeding”
shall include any threatened, pending or completed action, suit, alternate dispute resolution mechanism, or proceeding, whether
brought in the right of the Company or otherwise and whether of a civil, criminal, administrative, arbitrative or investigative
nature, and whether formal or informal, in which Indemnitee was, is or will be involved as a party or otherwise, by reason of the
fact that Indemnitee is or was a director of the Company or is or was serving at the request of the Company as a director, manager,
partner, officer, employee, agent or trustee of any Enterprise or by reason of any action taken by Indemnitee or of any action
taken on his or her part while acting as a director of the Company or while serving at the request of the Company as a director,
manager, partner, officer, employee, agent or trustee of any Enterprise, in each case whether or not serving in such capacity at
the time any liability or expense is incurred for which indemnification, reimbursement or advancement of expenses can be provided
under this Agreement; provided, however, that the term “Proceeding” shall not include any action, suit
or arbitration, or part thereof, initiated by Indemnitee to enforce Indemnitee’s rights under this Agreement as provided
for in Section 12(a) of this Agreement.

 

Section 3.Indemnity
in Third-Party Proceedings. The Company shall indemnify Indemnitee to the extent set forth in this Section 3 if Indemnitee
is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the
Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee shall be indemnified against all Expenses, judgments,
fines, penalties, excise taxes, and amounts paid in settlement actually and reasonably incurred by Indemnitee or on his or her
behalf in connection with such Proceeding or any claim, issue or matter therein, if (A) Indemnitee conducted himself or herself
in good faith and in a manner he or she reasonably believed to be in the best interests of the Company, or at least not opposed
to the best interests of the Company, and, in the case of a criminal proceeding, had no reasonable cause to believe that his or
her conduct was unlawful, or (B) Indemnitee engaged in conduct for which he or she shall not be liable under a provision of the
Charter as authorized by Section 2.02(b)(4) of the MBCA (or any successor provision). The conduct of Indemnitee with respect to
an employee benefit plan for a purpose Indemnitee reasonably believed to be in the best interests of the participants in, and the
beneficiaries of, the plan is conduct that satisfies clause (A) of the preceding sentence.

 

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Section 4.Indemnity
in Proceedings by or in the Right of the Company. The Company shall indemnify Indemnitee to the extent set forth in this Section
4 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company
to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be indemnified against all Expenses, judgments,
fines, penalties, excise taxes, and amounts paid in settlement actually and reasonably incurred by Indemnitee or on his or her
behalf in connection with such Proceeding or any claim, issue or matter therein, if (A) Indemnitee conducted himself in good faith
and in a manner he or she reasonably believed to be in the best interests of the Company, or at least not opposed to the best interests
of the Company, or (B) Indemnitee engaged in conduct for which he or she shall not be liable under a provision of the Charter as
authorized by Section 2.02(b)(4) of the MBCA (or any successor provision). The conduct of Indemnitee with respect to an employee
benefit plan for a purpose Indemnitee reasonably believed to be in the best interests of the participants in, and the beneficiaries
of, the plan is conduct that satisfies clause (A) of the preceding sentence.

 

Section 5.Indemnification
for Expenses of a Party Who is Successful. Notwithstanding any other provisions of this Agreement and except as provided in
Section 7, to the extent that Indemnitee is a party to or a participant in any Proceeding and is wholly successful, on the merits
or otherwise, in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred
by him or her in connection therewith. If in such Proceeding Indemnitee is successful, on the merits or otherwise, as to one or
more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses
actually and reasonably incurred by Indemnitee or on his or her behalf in connection with each successfully resolved claim, issue
or matter to the extent permitted by law. For purposes of this Section 5 and without limitation, the termination of any claim,
issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such
claim, issue or matter.

 

Section 6.Reimbursement
for Expenses of a Witness or in Response to a Subpoena. Notwithstanding any other provision of this Agreement, to the extent
that Indemnitee, by reason of his or her Corporate Status, (i) is a witness in any Proceeding to which Indemnitee is not a party
and is not threatened to be made a party or (ii) receives a subpoena with respect to any Proceeding to which Indemnitee is not
a party and is not threatened to be made a party, the Company shall reimburse Indemnitee for all Expenses actually and reasonably
incurred by him or her or on his or her behalf in connection therewith.

 

Section 7.Exclusions.
Notwithstanding any provision in this Agreement to the contrary, the Company shall not be obligated under this Agreement:

 

(a)to indemnify
for amounts otherwise indemnifiable hereunder (or for which advancement is provided hereunder) if and to the extent that Indemnitee
has otherwise actually received such amounts under any insurance policy, contract, agreement or otherwise;

 

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(b)to indemnify
for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company
within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of state statutory
law or common law;

 

(c)to indemnify
with respect to any Proceeding, or part thereof, brought by Indemnitee against the Company, any legal entity which it controls,
any director or officer thereof or any third party, unless (i) the Board has consented to the initiation of such Proceeding or
part thereof and (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company
under applicable law; provided, however, that this Section 7(c) shall not apply to (A) counterclaims or affirmative
defenses asserted by Indemnitee in an action brought against Indemnitee or (B) any action brought by Indemnitee for indemnification
or advancement from the Company under this Agreement or under any directors’ and officers’ liability insurance policies
maintained by the Company in the suit for which indemnification or advancement is being sought as described in Section 12; or

 

(d)to provide
any indemnification or advancement of expenses that is prohibited by applicable law (as such law exists at the time payment would
otherwise be required pursuant to this Agreement).

 

Section 8.Advancement
of Expenses. Subject to Section 9(b), the Company shall advance, to the extent not prohibited by law, the Expenses incurred
by Indemnitee in connection with any Proceeding, and such advancement shall be made within thirty (30) days after the receipt by
the Company of a statement or statements requesting such advances (which shall include invoices received by Indemnitee in connection
with such Expenses but, in the case of invoices in connection with legal services, any references to legal work performed or to
expenditures made that would cause Indemnitee to waive any privilege accorded by applicable law need not be included with the invoice)
from time to time, whether prior to or after final disposition of any Proceeding. Advances shall be unsecured and interest free.
Advances shall be made without regard to Indemnitee’s ability to repay the expenses and without regard to Indemnitee’s
ultimate entitlement to indemnification under the other provisions of this Agreement. Indemnitee shall qualify for advances upon
the execution and delivery to the Company of an undertaking in the form attached hereto as Exhibit A. The right to advances
under this Section 8 shall in all events continue until final disposition of any Proceeding, including any appeal therein. Nothing
in this Section 8 shall limit Indemnitee’s right to advancement pursuant to Section 12(e) of this Agreement.

 

Section 9.Procedure for Notification
and Defense of Claim.

(a)To obtain indemnification
under this Agreement, Indemnitee shall submit to the Company a written request therefor specifying the basis for the claim, the
amounts for which Indemnitee is seeking payment under this Agreement, and all documentation related thereto as reasonably requested
by the Company (a “Written Indemnification Request”).

 

(b)In the event that the
Company shall be obligated hereunder to provide indemnification for or make any advancement of Expenses with respect to any Proceeding,
the Company shall be entitled to assume the defense of such Proceeding, or any claim, issue or matter therein, with counsel approved
by Indemnitee (which approval shall not be unreasonably withheld or delayed) upon the delivery to Indemnitee of written notice
of the Company’s election to do so. After delivery of such notice, approval of such counsel by Indemnitee and the retention
of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees or expenses of separate
counsel subsequently employed by or on behalf of Indemnitee with respect to the same Proceeding; provided that (i) Indemnitee
shall have the right to employ separate counsel in any such Proceeding at Indemnitee’s expense and (ii) if (A) the employment
of separate counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee shall have reasonably concluded
that there may be a conflict of interest between the Company and Indemnitee in the conduct of such defense, or (C) the Company
shall not continue to retain such counsel to defend such Proceeding, then the reasonable fees and expenses actually and reasonably
incurred by Indemnitee with respect to his or her separate counsel shall be Expenses hereunder.

 

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(c) In the event that the
Company does not assume the defense in a Proceeding pursuant to paragraph (b) above, then the Company will be entitled to participate
in the Proceeding at its own expense.

 

(d) The Company shall not
be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding effected without its
prior written consent (which consent shall not be unreasonably withheld or delayed). The Company shall not, without the prior written
consent of Indemnitee (which consent shall not be unreasonably withheld or delayed), enter into any settlement which (i) includes
an admission of fault of Indemnitee, any non-monetary remedy imposed on Indemnitee or any monetary damages for which Indemnitee
is not wholly and actually indemnified hereunder or (ii) with respect to any Proceeding with respect to which Indemnitee may be
or is made a party or may be otherwise entitled to seek indemnification hereunder, does not include the full release of Indemnitee
from all liability in respect of such Proceeding.

Section 10.Procedure
Upon Application for Indemnification.

 

(a)Upon written request
by Indemnitee for indemnification pursuant to Section 9(a), a determination, if such determination is required by applicable law,
with respect to the permissibility thereof shall be made in the specific case: (i) if a Change in Control shall have occurred,
by Special Legal Counsel in a written opinion to the Board, or (ii) if a Change in Control shall not have occurred, by the Company
in accordance with applicable law. In the case that such determination is made by Special Legal Counsel, a copy of Special Legal
Counsel’s written opinion shall be delivered to Indemnitee and, if it is so determined that Indemnitee is entitled to indemnification,
payment to Indemnitee shall be made within thirty (30) days after such determination. Indemnitee shall cooperate with the Special
Legal Counsel or the Company, as applicable, in making such determination with respect to the permissibility of indemnification
of Indemnitee, including providing to such counsel or the Company, upon reasonable advance request, any documentation or information
which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary
to such determination. Any out-of-pocket costs or expenses (including reasonable attorneys’ fees and disbursements) actually
and reasonably incurred by Indemnitee in so cooperating with the Special Legal Counsel or the Company shall be borne by the Company
(irrespective of the determination as to the permissibility of indemnification) and the Company hereby indemnifies and agrees to
hold Indemnitee harmless therefrom.

 

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(b)If the determination
of permissibility of indemnification is to be made by Special Legal Counsel pursuant to Section 10(a), the Special Legal Counsel
shall be selected by the Company in accordance with applicable law. The Indemnitee may, within ten (10) days after written notice
of such selection, deliver to the Company a written objection to such selection; provided, however, that such objection
may be asserted only on the ground that the Special Legal Counsel so selected does not meet the requirements of “Special
Legal Counsel” as defined in Section 2 of this Agreement, and the objection shall set forth with particularity the factual
basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Special Legal Counsel. If such
written objection is so made and substantiated, the Special Legal Counsel so selected may not serve as Special Legal Counsel unless
and until such objection is withdrawn or the Massachusetts Court (as defined in Section 22) has determined that such objection
is without merit. If, within twenty (20) days after the later of (i) submission by Indemnitee of a Written Indemnification Request,
and (ii) the final disposition of the Proceeding, including any appeal therein, no Special Legal Counsel shall have been selected
without objection, Indemnitee may petition the Massachusetts Court for resolution of any objection which shall have been made by
Indemnitee to the selection of Special Legal Counsel and/or for the appointment as Special Legal Counsel of a person selected by
the court or by such other person as the court shall designate. The person with respect to whom all objections are so resolved
or the person so appointed shall act as Special Legal Counsel under Section 10(a) hereof. Upon the due commencement of any judicial
proceeding or arbitration pursuant to Section 12(a) of this Agreement, Special Legal Counsel shall be discharged and relieved of
any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

 

Section 11.Presumptions and
Effect of Certain Proceedings.

(a)To the extent
permitted by applicable law, in making a determination with respect to the permissibility of indemnification hereunder, it shall
be presumed that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a Written Indemnification
Request in accordance with Section 9(a) of this Agreement, and the Company shall have the burden of proof to overcome that presumption
in connection with the making of any determination contrary to that presumption. Neither (i) the failure of the Company or of Special
Legal Counsel to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification
is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor (ii) an actual determination
by the Company or by Special Legal Counsel that Indemnitee has not met such applicable standard of conduct, shall be a defense
to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

 

(b)The termination of any
Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere
or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of
Indemnitee to indemnification or create a presumption that Indemnitee did not meet the applicable standard of conduct for indemnification
under this Agreement.

 

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(c)The knowledge
and/or actions, or failure to act, of any director, manager, partner, officer, employee, agent or trustee of the Company, any subsidiary
of the Company, or any Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under
this Agreement.

 

Section 12.Remedies of Indemnitee.

 

(a)Subject to Section
12(f), in the event that (i) a determination is made pursuant to Section 10 of this Agreement that Indemnitee is not entitled to
indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 8 of this Agreement,
(iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10(a) of this Agreement within
sixty (60) days after receipt by the Company of the Written Indemnification Request for which a determination of permissibility
thereof is to be made other than by Special Legal Counsel, (iv) payment of indemnification or reimbursement of expenses is not
made pursuant to Section 5 or 6 or the last sentence of Section 10(a) of this Agreement within thirty (30) days after receipt by
the Company of a Written Indemnification Request therefor (which shall include any invoices received by Indemnitee but, in the
case of invoices in connection with legal services, any references to legal work performed or to expenditures made that would cause
Indemnitee to waive any privilege accorded by applicable law need not be included with the invoice) or (v) payment of indemnification
pursuant to Section 3 or 4 of this Agreement is not made within thirty (30) days after a determination has been made that Indemnitee
is entitled to indemnification, Indemnitee shall be entitled to an adjudication by the Massachusetts Court of his or her entitlement
to such indemnification or advancement. Alternatively, Indemnitee, at his or her option, may seek an award in arbitration to be
conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Indemnitee
shall commence such proceeding seeking an adjudication or an award in arbitration within one hundred and eighty (180) days following
the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 12(a); provided, however,
that the foregoing time limitation shall not apply in respect of a proceeding brought by Indemnitee to enforce his or her rights
under Section 5 of this Agreement. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award
in arbitration.

 

(b)In the event that a determination
shall have been made pursuant to Section 10(a) of this Agreement that Indemnitee is not entitled to indemnification, any judicial
proceeding or arbitration commenced pursuant to this Section 12 shall be conducted in all respects as a de novo trial, or
arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial proceeding
or arbitration commenced pursuant to this Section 12, the Company shall have the burden of proving Indemnitee is not entitled to
indemnification or advancement, as the case may be.

 

(c) If a determination shall
have been made pursuant to Section 10(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be
bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent (i) a misstatement
by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially
misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable
law.

 

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(d)The Company shall be
precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and
presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such
arbitrator that the Company is bound by all the provisions of this Agreement.

 

(e)The Company shall indemnify
Indemnitee to the fullest extent permitted by law against any and all Enforcement Expenses and, if requested by Indemnitee, shall
(within thirty (30) days after receipt by the Company of a Written Indemnification Request therefor) advance, to the extent not
prohibited by law, such Enforcement Expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought
by Indemnitee for indemnification or advancement from the Company under this Agreement or under any directors’ and officers’
liability insurance policies maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled
to such indemnification, advancement or insurance recovery, as the case may be, in the suit for which indemnification or advancement
is being sought. Such Written Indemnification Request for advancement shall include invoices received by Indemnitee in connection
with such Enforcement Expenses but, in the case of invoices in connection with legal services, any references to legal work performed
or to expenditures made that would cause Indemnitee to waive any privilege accorded by applicable law need not be included with
the invoice.

(f)Notwithstanding
anything in this Agreement to the contrary, no determination as to entitlement to indemnification under this Agreement shall be
required to be made prior to the final disposition of the Proceeding, including any appeal therein.

 

Section 13.Non-exclusivity;
Survival of Rights; Insurance; Subrogation.

 

(a)The rights of indemnification
and to receive advancement as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee
may at any time be entitled under applicable law, the Organizational Documents, any agreement, a vote of shareholders or a resolution
of directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict
any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his or her Corporate
Status prior to such amendment, alteration or repeal. To the extent that a change in Massachusetts law, whether by statute or judicial
decision, permits greater indemnification or advancement than would be afforded currently under the Organizational Documents and
this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded
by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right
and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other right or remedy.

(b)To the extent
that the Company maintains an insurance policy or policies providing liability insurance for directors, managers, partners, officers,
employees, agents or trustees of the Company or of any other Enterprise, Indemnitee shall be covered by such policy or policies
in accordance with its or their terms to the maximum extent of the coverage available for any such director, manager, partner,
officer, employee, agent or trustee under such policy or policies. If, at the time of the receipt of a notice of a claim pursuant
to the terms hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of
the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The
Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts
payable as a result of such proceeding in accordance with the terms of such policies.

 

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(c)In the event
of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery
of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of
such documents as are necessary to enable the Company to bring suit to enforce such rights.

(d)The Company’s
obligation to provide indemnification or advancement hereunder to Indemnitee who is or was serving at the request of the Company
as a director, manager, partner, officer, employee, agent or trustee of any other Enterprise shall be reduced by any amount Indemnitee
has actually received as indemnification or advancement from such other Enterprise.

Section 14. Duration
of Agreement. This Agreement shall continue until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee
shall have ceased to serve as a director of the Company or (b) one (1) year after the final termination of any Proceeding, including
any appeal, then pending in respect of which Indemnitee is granted rights of indemnification or advancement hereunder and of any
proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement relating thereto. This Agreement shall be binding upon
the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his or her heirs, executors and administrators.
The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise)
to all, substantially all or a substantial part, of the business and/or assets of the Company, by written agreement in form and
substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform if no such succession had taken place.

Section 15.Severability.
If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever:
(a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each
portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not
itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to
the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform
to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the
provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such
provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed
so as to give effect to the intent manifested thereby.

 

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Section 16.Enforcement.

 

(a)The Company expressly
confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce
Indemnitee to serve, or continue to serve, as a director of the Company, and the Company acknowledges that Indemnitee is relying
upon this Agreement in serving as a director of the Company.

(b)This Agreement
constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior
agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof;
provided, however, that this Agreement is a supplement to and in furtherance of the Organizational Documents and
applicable law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

Section 17.Modification
and Waiver. No supplement, modification or amendment, or waiver of any provision, of this Agreement shall be binding unless
executed in writing by the parties thereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute
a waiver of any other provisions of this Agreement nor shall any waiver constitute a continuing waiver. No supplement, modification
or amendment of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement
in respect of any action taken or omitted by such Indemnitee prior to such supplement, modification or amendment.

 

Section 18.Notice by
Indemnitee. Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena,
complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification,
reimbursement or advancement as provided hereunder. The failure of Indemnitee to so notify the Company shall not relieve the Company
of any obligation which it may have to Indemnitee under this Agreement or otherwise.

 

Section 19.Notices.
All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been
duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed,
(ii) mailed by certified or registered mail with postage prepaid, on the third (3rd) business day after the date on
which it is so mailed, (iii) mailed by reputable overnight courier and receipted for by the party to whom said notice or other
communication shall have been directed or (iv) sent by facsimile or e-mail transmission, with receipt of oral confirmation that
such transmission has been received:

 

(a)If to Indemnitee, at
such address as Indemnitee shall provide to the Company.

(b)If to the Company to:

 

Anika Therapeutics, Inc.

32 Wiggins Avenue

Bedford, Massachusetts 01730

Attention: Chief Financial Officer

Fax:(781) 305-9720

E-Mail:scheung@anikatherapeutics.com

    	11

    	 

    

or to any other address as may have been furnished
to Indemnitee by the Company.

 

Section 20.Contribution.
To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to
Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred
by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses,
in connection with any Proceeding in such proportion as is deemed fair and reasonable in light of all of the circumstances in order
to reflect (i) the relative benefits received by the Company and Indemnitee in connection with the event(s) and/or transaction(s)
giving rise to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents)
and Indemnitee in connection with such event(s) and/or transactions.

 

Section 21.Internal
Revenue Code Section 409A. The Company intends for this Agreement to comply with the Indemnification exception under Section
1.409A-1(b)(10) of the regulations promulgated under the Internal Revenue Code of 1986, as amended (the “Code”),
which provides that indemnification of, or the purchase of an insurance policy providing for payments of, all or part of the expenses
incurred or damages paid or payable by Indemnitee with respect to a bona fide claim against Indemnitee or the Company do not provide
for a deferral of compensation, subject to Section 409A of the Code, where such claim is based on actions or failures to act by
Indemnitee in his capacity as a service provider of the Company. The parties intend that this Agreement be interpreted and construed
with such intent.

 

Section
22.Applicable Law and Consent to Jurisdiction. This Agreement and the legal relations between the parties shall be governed
by, and construed and enforced in accordance with, the laws of the Commonwealth of Massachusetts, without regard to its conflict
of laws rules. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 12(a) of this Agreement, the
Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection
with this Agreement shall be brought only in the Business Litigation Session of the Massachusetts Superior Court
(the “Massachusetts Court”), and not in any
other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive
jurisdiction of the Massachusetts Court for purposes of any action or proceeding arising out of or in connection with this Agreement,
(iii) consent to service of process at the address set forth in Section 19 of this Agreement with the same legal force and validity
as if served upon such party personally within the Commonwealth of Massachusetts, (iv) waive any objection to the laying of venue
of any such action or proceeding in the Massachusetts Court, and (v) waive, and agree not to plead or to make, any claim that any
such action or proceeding brought in the Massachusetts Court has been brought in an improper or inconvenient forum.

 

Section 23.Headings.
The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of
this Agreement or to affect the construction thereof.

 

    	12

    	 

    

Section 24.Identical
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to
be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party
against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

 

[Remainder of Page Intentionally Left
Blank]

 

 

 

 

 

 

 

 

 

 

 

 

    	13

    	 

    

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

 

 

 

	 	ANIKA THERAPEUTICS, INC.
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	 	 
	 	 	 
	 	 	[Name of Indemnitee]

 

 

 

    	14

    	 

    

Exhibit A

 

Form of Undertaking

 

[Date]

 

Anika Therapeutics, Inc.

32 Wiggins Avenue

Bedford, Massachusetts 01730

 

Re: Request for Advancement of Expenses

 

Ladies and Gentlemen:

 

Reference is made to the Indemnification Agreement (the “Agreement”)
by and between Anika Therapeutics, Inc. (the “Company”) and the undersigned, ________ (“Indemnitee”).
Capitalized terms not defined herein shall have those meanings as set forth in the Agreement. Pursuant to Section 8 of the Agreement,
Indemnitee hereby requests advancement of Expenses incurred as a result of Indemnitee being, or being threatened to be made, a
party in the following Proceeding(s): _________________________________.

 

In accordance with Section 8 of the Agreement, Indemnitee hereby:

 

		(1)	affirms [his/her] good faith belief that [he/she] has met the relevant standard of conduct described
in Section 8.51 of the Massachusetts Business Corporation Act (“MBCA”) or the Proceeding involves conduct for which
liability has been eliminated under a provision of the Company’s articles of organization as authorized by Section 2.02(b)(4)
of the MBCA; and

 

		(2)	undertakes to repay the advancement of Expenses if [he/she] is not entitled to mandatory indemnification under Section 8.52
of the MBCA and it is ultimately determined that [he/she] has not met the relevant standard of conduct described in Section 8.51
of the MBCA.

 

Very truly yours,

 

___________, Indemnitee

 

 

 

 

15101AmendedandRestatedEmploymentAgreementOctober2014

Execution Copy

AMENDED AND RESTATED 
EMPLOYMENT AGREEMENT
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) dated October 31, 2014, by and between Kinetic Concepts, Inc. (the “Company”) and Joe Woody (the “Executive”).
WHEREAS, the Company and Executive previously entered into that certain employment agreement dated November 10, 2011 (the “Prior Agreement”) pursuant to which Executive commenced employment with the Company as of November 11, 2011 (the “Initial Commencement Date”);
WHEREAS, the Company desires to continue to employ Executive and to enter into such an amended and restated employment agreement embodying the terms of such employment as evidenced by this Agreement to supersede the Prior Agreement; and
WHEREAS, Executive desires to accept such continued employment and enter into this Agreement. 
In consideration of the premises and mutual covenants herein and for other good and valuable consideration, the parties agree as follows:
1.Term of Employment.  Subject to the provisions of Section 6 of this Agreement, the Company and Executive agree that Executive shall continue to be employed by the Company pursuant to the terms of this Agreement from the date hereof until November 11, 2018 (the “Employment Term”); provided that commencing on November 11, 2018, and on each anniversary thereof thereafter (each an “Extension Date”), the Employment Term shall be automatically extended for an additional one year period, unless the Company or Executive provides the other party hereto six (6) months prior written notice before the next Extension Date that the Employment Term shall not be so extended.  Unless this Agreement has been sooner terminated or extended, Executive and the Company shall begin discussions for the purposes of extension or nonrenewal of this Agreement no later than seven (7) months prior to the next Extension Date.  If the parties are amenable to an extension of this Agreement, they shall use their best efforts to complete a new agreement by no later than six (6) months prior to the next Extension Date.  While this Agreement is in effect, Executive's employment with the Company shall be at-will and, as such, may be terminated by Executive or the Company at any time, for any reason and with or without advance notice (except as specifically provided herein), subject to the Company’s obligations set forth herein.
2.    Position.
a.    During the Employment Term, Executive shall serve as the President and Chief Executive Officer of Acelity L.P. Inc. and its operating subsidiaries: the Company, LifeCell Corporation, Systagenix Wound Management, Limited, reporting directly to the Board of Directors of Chiron Holdings GP, Inc. (the “Board”).  In such position, Executive shall have such duties and authority as shall be reasonably determined from time to time by the Board.  Executive shall be entitled to an annual performance review by the Board.  
b.    During the Employment Term, Executive will devote Executive’s full business time and best efforts to the performance of Executive’s duties hereunder and will 

 

2

not engage in any other business, profession or occupation for compensation or otherwise which would conflict or interfere with the rendition of such services, either directly or indirectly, without the prior written consent of the Board.  Executive shall be permitted service on one or more company boards subject to Board reasonable approval, provided that such service does not violate the provisions of the Restrictive Covenants Agreement (referenced in Section 7) or materially interfere with Executive’s fulfillment of his job duties.  
c.    Executive’s principal place of employment shall be at the Company’s headquarters in San Antonio, Texas from where, unless otherwise agreed, Executive will perform his duties, subject to customary business travel consistent with Executive’s duties and responsibilities.  The Company recognizes that Executive, at his option, until the fourth anniversary of the Initial Commencement Date, may continue to maintain his principal residence in the Boston area and may, consistent with the fulfillment of his duties for the Company, travel to and work from his Boston home on an occasional basis. 
3.    Base Salary.  During the Employment Term, the Company shall pay Executive a base salary at the annual rate of $862,000, payable in regular installments in accordance with the Company’s usual payment practices.  Executive’s base salary shall be reviewed annually by the Board and shall be subject to such upward adjustments as may be determined from time to time in the sole discretion of the Board.  Executive’s annual base salary, as in effect from time to time, is hereinafter referred to as the “Base Salary.”  The Company agrees to renegotiate the Base Salary in good faith in the event of Executive’s promotion at any time.  
4.    Bonuses.  
a.    Annual Bonus.  With respect to the 2014 fiscal year (January 1, 2014 to December 31, 2014) and thereafter with respect to each full fiscal year during the Employment Term, Executive shall be eligible to earn an annual cash bonus award (an “Annual Bonus”) with a target bonus value equal to one hundred ten percent (110%) of Executive’s Base Salary (the “Target”) based upon the achievement of performance targets established by the Board in consultation with Executive, within the first 90 days of each fiscal year during the Employment Term.  The Board may, in its discretion, award Executive a bonus of less than or greater than the Target depending on Executive’s satisfaction of his performance targets, and payment of less than or greater than the Target based upon under- or over- performance against the targeted performance goals shall be applied to Executive in a manner consistent with that generally applied to other senior executives of the Company.  Subject to Executive’s continued employment through the date of payment, the Annual Bonus shall be paid to Executive no later than 75 days following the last day of the applicable fiscal year.
5.    Employee Benefits.  
a.    General Benefits.  During the Employment Term, Executive shall be entitled to participate in the Company’s employee benefit plans (other than annual bonus and incentive plans but including, inter alia, family health and dental insurance, life and disability insurance, 401(k) retirement savings plan and other retirement savings plans) as in effect from time to time (collectively, “Employee Benefits”) on the same basis as those benefits are generally made available to other senior executives of the Company.
b.    Executive Relocation.  The Company will provide Executive with the benefits of its executive relocation policy in connection with his relocation to Texas (“Relocation Benefits”) which includes:

 

3

		
	•
	Arrangement for packing, transport, storage up to 30 days (if applicable) and delivery and unpacking of Executive’s household goods by a national freight carrier.  These services will be direct billed to the Company.

		
	•
	Arrangement for transport of two personal vehicles by a contracted van line or, at Executive’s election, reimbursement of $0.55 per mile for driving Executive’s vehicle(s) from Boston, Massachusetts to San Antonio, Texas.  Executive will also be reimbursed reasonable meals and lodging expenses en route based on travel by the most direct route. 

		
	•
	Final move trip (one way airfare for Executive and eligible dependents) if Executive’s cars have been shipped, arranged through the Company’s Corporate Travel Department.

		
	•
	Boston area home closing costs (customary real estate closing costs for sale of existing home, including realtor’s commission up to 6% of the sales price), but excluding seller-paid points, pro-rated taxes, pro-rated interest and sellers’ allowances.

		
	•
	In the event that Executive is unable to sell his Boston area home, the Company will provide assistance with the final sale of Executive’s Boston area home in a manner consistent with an executive relocation pursuant to a “Customary Guaranteed Purchase Option” program administered and facilitated by a third party relocation company, and the payment or reimbursement of customary seller residential real estate closing costs, together with such other benefits, assistance or services as may be authorized by the Company’s Compensation Committee.

All of Executive’s covered Relocation Benefits listed above will be grossed up for tax purposes (if taxable to Executive) at the highest marginal rate of taxation.

c.    Business Expenses.  During the Employment Term, reasonable business expenses incurred by Executive in the performance of Executive’s duties hereunder shall be reimbursed by the Company in accordance with Company policies. 

d.    Vacation.  Executive shall be entitled to four weeks of vacation in each year during the Employment Term.  

6.    Termination.  The Employment Term and Executive’s employment hereunder may be terminated by either party at any time and for any reason as set forth below. Notwithstanding any other provision of this Agreement, the provisions of this Section 6 shall exclusively govern Executive’s rights upon termination of employment with the Company and its affiliates.

a.    By the Company For Cause or By Executive Resignation Without Good Reason.

(i)    The Employment Term and Executive’s employment hereunder may be terminated by the Company for Cause (as defined below) and shall terminate automatically upon Executive’s resignation without Good Reason (as defined in Section 6(c)); provided that Executive will be required to give the Company at least 60 days advance written notice of a resignation without Good Reason.

(ii)    For purposes of this Agreement, “Cause” shall mean conduct involving one or more of the following: (i) the substantial and continuing failure of Executive to render services to the Company or any subsidiary or affiliate in accordance with Executive’s obligations 

 

4

and position with the Company, subsidiary or affiliate; provided that the Company or any subsidiary or affiliate provides Executive with adequate notice of such failure and, if such failure is capable of cure, Executive fails to cure such failure within 30 days after such notice; (ii) gross negligence, or breach of fiduciary duty; (iii) Executive's conviction of, or no contest plea to, an act of theft, fraud or embezzlement, or a felony; or (iv) a material breach of the terms of an agreement between Executive on one hand and the Company or any subsidiary or affiliate on the other hand or a material breach of any Company policy; provided that the Company or any subsidiary or affiliate provides Executive with adequate notice of such breach and, if such breach is capable of cure, Executive fails to cure such breach within 30 days after such notice.
(iii)    If Executive’s employment is terminated by the Company for Cause, or if Executive resigns without Good Reason, Executive shall be entitled to receive:
(A)    unpaid Base Salary and vacation accrued through the date of termination, payable in accordance with the Company’s usual payment practices;
(B)    reimbursement, within 60 days following submission by Executive to the Company of appropriate supporting documentation, for any unreimbursed business expenses properly incurred by Executive in accordance with Company policy prior to the date of Executive’s termination; provided that claims for such reimbursement (accompanied by appropriate supporting documentation) are submitted to the Company within 90 days following the date of Executive’s termination of employment; and
(C)    such fully vested and non-forfeitable Employee Benefits, if any, as to which Executive may be entitled under the employee benefit plans of the Company (other than benefits in the nature of severance pay) (the amounts described in clauses (A) through (C) hereof being referred to as the “Accrued Obligations”).
Following such termination of Executive’s employment by the Company for Cause or resignation by Executive without Good Reason, except as set forth in this Section 6(a)(iii), Executive shall have no further rights to any compensation or any other benefits under this Agreement. 

 

5

b.    Disability or Death.
(i)    The Employment Term and Executive’s employment hereunder shall terminate upon Executive’s death and may be terminated by the Company if Executive becomes physically or mentally incapacitated and is therefore unable, with or without reasonable accommodation, to perform one or more essential functions of his position as an employee of the Company as the result of his incapacity due to physical or mental impairment for more than 90 days in any consecutive 180-day period (such incapacity is hereinafter referred to as “Disability”).  Any question as to the existence of the Disability of Executive as to which Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to Executive and the Company.  If Executive and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician and those two physicians shall select a third physician who shall make such determination in writing.  The determination of Disability made in writing to the Company and Executive shall be final and conclusive for all purposes of this Agreement.
(ii)    Upon termination of Executive’s employment hereunder for either Disability or death, Executive or Executive’s estate (as the case may be) shall be entitled to receive the Accrued Obligations, any Annual Bonus earned for the prior year but not yet paid, and a pro rata portion of the Annual Bonus Executive would otherwise have received with respect to the year of termination, based upon actual performance, and paid when the Annual Bonus would otherwise have been payable, equal to the amount of such Annual Bonus times the quotient of (x) the number of days in such calendar year that shall have elapsed through the date of termination, divided by (y) 365.  
Following Executive’s termination of employment due to death or Disability, except as set forth in this Section 6(b)(ii), Executive shall have no further rights to any compensation or any other benefits under this Agreement. 
c.    By the Company Without Cause or Resignation by Executive for Good Reason.  
(i)    The Employment Term and Executive’s employment hereunder may be terminated by the Company without Cause or by Executive’s resignation for Good Reason.  
(ii)    For purposes of this Agreement, “Good Reason” shall mean one or more of the following: (i) the material reduction of Executive’s title, duties, authority, responsibilities and/or reporting relationship, all from that which existed as of the date hereof, which is not cured within 30 days after Executive provides written notice to the Company; provided however, it shall not be considered Good Reason if, upon or following a Change in Control, Executive’s compensation, duties, authority and responsibilities remain the same as those prior to the Change in Control but Executive’s title is changed (provided that such title is the functional equivalent and of similar prestige to Executive’s title immediately preceding such Change in Control) (ii) the reduction of Executive’s base salary (which is not cured within 30 days after Executive provides written notice) or target bonus percentage to below 110%; (iii) the relocation of Executive to a business location in excess of 50 miles from the Company’s headquarters in San Antonio (which is not cured within 30 days after Executive provides written notice);(iv) the failure of the Company to obtain a satisfactory agreement from any successor of the Company to assume and agree to perform the Company’s obligations under this Agreement and deliver a copy thereof to Executive, unless such assumption occurs by operation of law; or (v) a material breach by the Company of any of its obligations under this Agreement and the Company’s failure to 

 

6

cure such breach within thirty (30) days after written notice thereof by Executive.  To be considered a resignation from employment on an account of Good Reason, Executive must provide written notice to the Company (stating that Executive believes one or more of the Good Reason conditions described above exists) within 90 days following the initial existence of such condition, and must resign within 30 days following the Company’s failure to cure such condition.  For the purposes of this Agreement, “Change in Control” shall mean the consummation of a transaction, whether in a single transaction or in a series of related transactions, with an independent third party or a group of independent third parties pursuant to which such party or parties (A) acquire (whether by merger, consolidation, or transfer or issuance of equity interests or otherwise) equity interests of Chiron Guernsey Holdings L.P. Inc. (or any surviving or resulting company) possessing the voting power to elect a majority of the board of directors of Chiron Holdings GP, Inc. (or such surviving or resulting company) or (B) acquire assets constituting all or substantially all of the assets of Chiron Guernsey Holdings L.P. Inc. and its subsidiaries (as determined on a consolidated basis).
(iii)    If Executive’s employment is terminated by the Company without Cause (other than by reason of death or Disability) or if Executive resigns for Good Reason, Executive shall be entitled to receive:
(A)    the Accrued Obligations; and
(B)    subject to Executive’s continued compliance with the provisions of the restrictive covenants contained in the Restrictive Covenants Agreement attached hereto as Exhibit B and to Executive’s execution, delivery and non-revocation of a general release of claims in favor of the Company and its affiliates in the form attached hereto as Exhibit A within 45 days following the termination date:
(i) a severance payment in the amount equal to the product of (x) the Severance Multiple (as defined below) times (y) the sum of Executive's (I) Base Salary plus (II) Annual Bonus at Target for the year of Executive’s termination of employment, payable as a lump sum payment within 60 days following the date of Executive’s termination of employment with the Company and its affiliates (the “Severance Amount”); provided, however, that if such 60 day period begins in one calendar year and ends in a second calendar year, then the lump sum payment shall not be paid until the second of such two calendar years (regardless of whether Executive delivers the required general release of claims in the first calendar year or in the second calendar year); and 
(ii) if Executive timely elects health insurance continuation coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), reimbursement of COBRA premiums for up to 18 months following the date of Executive’s termination of employment with the Company and its affiliates (so long as applicable law and regulations permit such Company payment without imposition of a tax or penalty on the Company or other plan participants or otherwise adversely affecting the Company, the applicable plan or other participants in such plan).  In the event that Executive becomes eligible to obtain healthcare coverage from a new employer, the Company’s obligation to reimburse COBRA premiums, as applicable, shall cease.  Executive understands and acknowledges that Executive is obligated to inform the Company (or its successor) if Executive becomes eligible to obtain healthcare coverage from a 

 

7

new employer during any period when the Company’s COBRA reimbursement obligations hereunder apply.
For the purposes of this Section 6(c)(iii), the “Severance Multiple” shall be 1.5; provided that if such termination occurs within 24 months following a Change of Control, the Severance Multiple shall be 2.0
Following Executive’s termination of employment by the Company without Cause (other than by reason of Executive’s death or Disability) or by Executive’s resignation for Good Reason, except as set forth in this Section 6(c)(iii), Executive shall have no further rights to any compensation or any other benefits under this Agreement or under any other severance or termination benefit plan sponsored or maintained by the Company. 
d.    Expiration of the Term.   In the event either party elects not to extend the Employment Term pursuant to Section 1, unless Executive’s employment is earlier terminated pursuant to paragraphs (a), (b), or (c) of this Section 6, Executive’s rights under this Agreement shall terminate on the close of business on the day immediately preceding the next scheduled Extension Date and in such event (x) if Executive elects not to extend the Employment Term, Executive shall be entitled to receive the Accrued Obligations and (y) if the Company elects not to extend the Employment Term pursuant to Section 1, Executive shall be entitled to receive the benefits described in Section 6(c)(iii).  Following such termination of Executive’s employment hereunder as a result of either party’s election not to extend the Employment Term, except as set forth in this Section 6(d), Executive shall have no further rights to any compensation or any other benefits under this Agreement; provided that the provisions of the Restrictive Covenant Agreement shall survive any termination of this Agreement or Executive’s termination of employment hereunder. 
e.    Notice of Termination.  Any purported termination of employment by the Company or by Executive (other than due to Executive’s death) shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 10(i) hereof.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of employment under the provision so indicated.
7.    Restrictive Covenants.  As a condition precedent to the Company’s entry into this Agreement, Executive has executed, or shall execute, the Restrictive Covenants Agreement attached hereto as Exhibit B, the terms of which are incorporated herein by reference.
8.    Indemnification.  Executive shall be entitled to indemnification to the maximum extent permitted by applicable law and the Company’s Articles of Incorporation or Bylaws with terms no less favorable than provided to any other Company executive officer or director and subject to the terms of any separate written indemnification agreement, other than in respect of damages arising as a consequence of Executive’s breach of the representations set forth in Section 10(m) (the “Executive Representations”).  At all times during Executive’s employment, the Company shall maintain in effect a directors and officers liability insurance policy with Executive as a covered officer.  By way of example and for avoidance of doubt, in the event of an action brought against Executive by his former employer (the “Action”) after Executive’s execution of this Agreement, the Company will fully indemnify Executive with respect to the Action, advance Executive expenses for defense fees and costs and will otherwise honor the terms of this Agreement as though no Action had been commenced; provided however, 

 

8

in the event that a court of competent jurisdiction were to find in a final judgment that Executive breached one or more of the Executive Representations (or such final judgment or a settlement between Executive and the former employer acknowledges facts indicating that such Executive Representations were breached), Executive will be liable to  the Company for reimbursement of defense fees and costs advanced and any liability incurred by the Company in connection with such Action relating to, or arising from, Executive’s breach of the Executive Representations, to a maximum reimbursable amount of $500,000.00. 
9.    Arbitration.  To ensure the rapid and economical resolution of disputes that may arise in connection with Executive’s employment with the Company, Executive and the Company agree that any and all disputes, claims, or causes of action, in law or equity, including but not limited to statutory claims, arising from or relating to the enforcement, breach, performance, or interpretation of this Agreement, Executive’s employment with the Company, or the termination of Executive’s employment, shall be resolved, to the fullest extent permitted by law, by final, binding and confidential arbitration in San Antonio, Texas conducted by JAMS, Inc. (“JAMS”) or its successor, under JAMS’ then applicable rules and procedures for employment disputes.  By agreeing to this arbitration procedure, both Executive and the Company waive the right to resolve any such dispute through a trial by jury or judge or by administrative proceeding.  Executive will have the right to be represented by legal counsel at any arbitration proceeding.  The arbitrator shall: (1) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be available under applicable law in a court proceeding; and (2) issue a written statement signed by the arbitrator regarding the disposition of each claim and the relief, if any, awarded as to each claim, the reasons for the award, and the arbitrator’s essential findings and conclusions on which the award is based.  The Company and Executive shall share equally all JAMS arbitration fees.  Each party agrees to pay its own attorneys’ fees, unless statutory law provides for fee shifting; however, the prevailing party in any arbitration will be entitled to seek an award of attorneys fees and costs from the arbitrator.  Nothing in this Agreement shall prevent either Executive or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration.  Any awards or orders in such arbitrations may be entered and enforced as judgments in the federal and state courts of any competent jurisdiction.
10.    Miscellaneous.
a.    Governing Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Texas, without regard to conflicts of laws principles thereof.  
b.    Entire Agreement/Amendments.  This Agreement contains the entire understanding of the parties with respect to the employment of Executive by the Company and supersedes any prior agreements or understandings (including verbal agreements) between the parties relating to the subject matter of this agreement, including, without limitation, any prior employment agreements or terms summaries.  There are no restrictions, agreements, promises, warranties, covenants or undertakings between the parties with respect to the subject matter herein other than those expressly set forth herein.  This Agreement may not be altered, modified, or amended except by written instrument signed by the parties hereto.  
c.    No Waiver.  The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of such party’s rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

 

9

d.    Severability.  In the event that any one or more of the provisions of this Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected thereby.
e.    Assignment.  This Agreement, and all of Executive’s rights and duties hereunder, shall not be assignable or delegable by Executive.  Any purported assignment or delegation by Executive in violation of the foregoing shall be null and void ab initio and of no force and effect.  This Agreement may be assigned by the Company to a person which is an affiliate or a successor in interest to substantially all of the business operations of the Company.  Upon such assignment, the rights and obligations of the Company hereunder shall become the rights and obligations of such affiliate or successor person.
f.    Set Off; Mitigation.  The Company’s obligation to pay Executive the amounts provided and to make the arrangements provided hereunder shall not be subject to set off, counterclaim or recoupment of amounts owed by Executive to the Company or its affiliates.
g.    Compliance with IRC Section 409A.  
(i)    The parties intend that any amounts payable hereunder that could constitute “deferred compensation” within the meaning of Section 409A of the Internal Revenue Code (“Section 409A”) shall comply with Section 409A, and this Agreement shall be administered, interpreted and construed in a manner that does not result in the imposition of additional taxes, penalties or interest under Section 409A.  The Company and Executive agree to negotiate in good faith to make amendments to the Agreement, as the parties mutually agree are necessary or desirable to avoid the imposition of taxes, penalties or interest under Section 409A.  Notwithstanding the foregoing, the Company does not guarantee any particular tax effect, and Executive shall be solely responsible and liable for the satisfaction of all taxes, penalties and interest that may be imposed on or for the account of Executive in connection with the Agreement (including any taxes, penalties and interest under Section 409A), and none of the Company or any subsidiary or affiliate of the Company shall have any liability to Executive with respect thereto.
(ii)    Notwithstanding anything in the Agreement to the contrary, in the event that Executive is deemed to be a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code and Executive is not “disabled” within the meaning of Section 409A(a)(2)(C) of the Internal Revenue Code, no payments in this Agreement that are “deferred compensation” subject to Section 409A shall be made to Executive prior to the date that is six months after the date of Executive’s “separation from service” (as defined in Section 409A) or, if earlier, Executive’s date of death.  Following any applicable six month delay, all such delayed payments shall be paid in a single lump sum on the earliest date permissible under Section 409A that is also a business day.
(iii)    For purposes of Section 409A, each of the payments that may be made under this Agreement shall be deemed to be a separate payment for purposes of Section 409A.  Amounts payable under this Agreement shall be deemed not to be a “deferral of compensation” subject to Section 409A to the extent provided in the exceptions in Treasury Regulation §§ 1.409A-1(b)(4) (“short-term deferrals”) and (b)(9) (“separation pay plans,” including the exceptions under subparagraph (iii) and subparagraph (v)(D)) and other applicable provisions of Treasury Regulation §§ 1.409A-1 through A-6.

 

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(iv)    With respect to the time of payments of any amounts under the Agreement that are “deferred compensation” subject to Section 409A, references in the Agreement to “termination of employment” (and substantially similar phrases) shall mean “separation from service” within the meaning of Section 409A.
(v)    For the avoidance of doubt, it is intended that any indemnification payment to Executive or expense reimbursement made hereunder shall be exempt from Section 409A.  Notwithstanding the foregoing, if any indemnification payment or expense reimbursement made hereunder shall be determined to be “deferred compensation” within the meaning of Section 409A, then (i) the amount of the indemnification payment or expense reimbursement during one taxable year shall not affect the amount of the indemnification payments or expense reimbursement during any other taxable year, (ii) the indemnification payments or expense reimbursement shall be made on or before the last day of Executive’s taxable year following the year in which the expense was incurred and (iii) the right to indemnification payments or expense reimbursement hereunder shall not be subject to liquidation or exchange for another benefit.
h.    Successors; Binding Agreement.  This Agreement shall inure to the benefit of and be binding upon personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.
i.    Notice.  For the purpose of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand or overnight courier or three days after they have been mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below in this Agreement, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.
If to the Company:
Kinetic Concepts, Inc.  
12930 West Interstate 10 
San Antonio, TX 78249
Attention: General Counsel
If to Executive:
Joe Woody
12 Esquire
San Antonio, TX 78257

j.    Cooperation.  Executive shall provide Executive’s reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events occurring during Executive’s employment with the Company or its affiliates.  The Company shall reimburse Executive for reasonable expenses he incurs as a result of such cooperation.  This provision shall survive any termination of this Agreement.
k.    Withholding Taxes.  The Company may deduct and withhold from any amounts payable under this Agreement such Federal, state, local, non-U.S. or other taxes as are required or permitted to be withheld pursuant to any applicable law or regulation.  

 

11

l.    Counterparts.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.
m.    Representations of Executive.  
(A)    Executive represents, warrants and covenants that as of the date hereof: (i) Executive has the full right, authority and capacity to enter into this Agreement and perform Executive’s obligations hereunder; (ii) except for the Non-Competition, Non-Solicitation, and Confidentiality Agreement dated as of April 29, 2009 (the “Former Employer Agreement”) between Executive and Tyco Healthcare Group LP d/b/a Covidien (the “Former Employer”) with respect to which Executive is making the representation and covenant set forth in clause (B) below, Executive is not bound by any agreement that conflicts with or prevents or restricts the full performance of Executive’s duties and obligations to the Company hereunder during or after the Employment Term and the execution and delivery of this Agreement shall not result in any breach or violation of, or a default under, any existing obligation, commitment or agreement to which Executive is subject; and (iii) Executive has provided Company with his Separation Agreement with Smith and Nephew dated April 30, 2009; and
(B)    Executive represents and warrants as of the date hereof, that Executive’s duties with the Former Employer in the last 24 months preceding the Initial Commencement Date did not involve responsibility for any business of the Former Employer which competes with any division of the Company for which Executive will be responsible.  Nor, has Executive gained any material Confidential Information (as defined in the Former Employer Agreement) from the Former Employer concerning any division of the Former Employer which competes with any division of the Company for which Executive will be responsible.  Executive’s employment with the Company will not be in connection with any Restricted Product or Service (as defined in the Former Employer Agreement); and
(C)    Executive acknowledges that he is here by instructed not to share with, or divulge to, or use for the Company’s benefit, any Confidential Information (as defined in the Former Employer Agreement) in connection with the performance of his duties to the Company, or otherwise, and shall not do so.
n.    Confidentiality. Except as required by applicable law, neither party shall (for any reason), directly or indirectly, for himself or itself, as the case may be, or on behalf of any other person or entity, disclose to any person or entity (except to employees or representatives of that party or spouse, legal or financial advisors, as applicable, who need to know such information and who agree to keep such information confidential), the terms of this Agreement.
o.    Survival. The covenants and agreements of the parties set forth in Sections 6, 7, 8, 9, 10(a), 10(c), 10(d), 10(h), 10(i), 10(m), 10(n) and 10(o) are of a continuing nature and shall survive the expiration, termination or cancellation of this Agreement, regardless of the reason therefore and in a manner consistent with the applicable section or subsection.

 

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

	
			
	KINETIC CONCEPTS, INC.
	 
	JOE WOODY

	 
	 
	 

	/s/ William J. Gumina_
	 
	/s/ Joe Woody

	By: William J. Gumina
	 
	 

	Title: Chairman of the Board, Chiron Holdings
	 
	 

	GP, Inc. and Authorized Signatory for Kinetic
	 
	 

	Concepts, Inc.
	 
	 

5549135.2

13

EXHIBIT A: FORM OF GENERAL RELEASE

[attached hereto]

5549135.2

14

 
EXHIBIT B: RESTRICTIVE COVENANTS AGREEMENT

[attached hereto]

5549135.2

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