Document:

a6283501ex10-1.htm

Courtesy Translation

 

Exhibit 10.1

 

 

 

 

 

___________________________________________________

 

PLEDGE AGREEMENT ON A QUOTA OF

 

FIDIA ADVANCED BIOPOLYMERS S.r.l.

___________________________________________________

 

 

 

 

 

 

 

 

 

 

Courtesy Translation

  

  

  

 

INDEX

 

	
1.

	
INTERPRETATION

	
1

	
2.

	
GUARANTEE

	
5

	
3.

	
PERFECTION OF PLEDGE

	
5

	
4.

	
VOTING RIGHTS; DIVIDENDS

	
6

	
5.

	
ENFORCEMENT OF PLEDGE

	
7

	
6.

	
REPRESENTATION AND WARRANTIES

	
7

	
7.

	
COVENANTS

	
8

	
8.

	
MAINTENANCE OF THE PLEDGE

	
9

	
9.

	
CANCELLATION OF PLEDGE

	
10

	
10.

	
VARIOUS

	
10

	
11.

	
APPLICABLE LAW AND JURISDICTION

	
10

 

 

 

Courtesy Translation

  

  

  

THIS PLEDGE AGREEMENT is entered in Boston, Massachusetts (U.S.A.), on March 12, 2010, by ANIKA THERAPEUTICS, INC., a company duly incorporated under the laws of Massachusetts, whose registered office is at 32 Wiggins Avenue, Bedford, Massachusetts 01730 Italian tax code number 97542640152, acting by its legal representative Dr. Charles Sherwood (the “Pledgor”), in favor of BANK OF AMERICA, N.A., bank association, incorporated under the laws of United States of America, with legal office in North Tryon Street 100, Charlotte, North Carolina (U.S.A.) (“Bank of America”);

 

WHEREAS:

 

	
(A)

	
with the agreement called “Credit Agreement” (as amended or integrated time to time, the “Financing Agreement”) entered in Boston, on January 31, 2008 between the Pledgor, as the “Borrower”, ANIKA SECURITIES, INC., as the “Guarantor”, or fidejussor, and Bank of America, as the “Administrative Agent”, or common representative, and “Lender”, which granted in favor of the Pledgor a financing for a maximum amount equal to US$ 16.000.000 (the “Financing”). The main terms of the Financing are indicated in the Attachment 1 (Main terms of the Financing);

 

	
(B)

	
the Financing Agreement is amended and integrated with the agreement called “Consent and First Amendment” and entered in Boston, Massachussets, on December 31, 2009 between the same parties of the Financing Agreement;

 

	
(C)

	
at the day hereof the Pledgor holds a quota equal to Euro 1.848.915, representing the entire corporate capital of Fidia Advanced Biopolymers S.r.l., with legal office in Abano Terme (PD), Via Ponte della Fabbrica 3/B, registered in the Companies Register of Padova, fiscal code n. 01510440744] (the “Company”);

 

	
(D)

	
pursuant to article 6.13 (“Additional Guarantors”) of the Credit Agreement and as condition of Consent and First Amendment, the Pledgor undertook to establish in favor of the Guaranteed Creditors (as defined below) a pledge on a quota equal to 65% of the corporate capital of the Company.

 

THE PARTIES COVENANT AND AGREE AS FOLLOWS:

 

	
1.

	
INTERPRETATION

 

	
1.1

	
Definitions

 

In this Agreement:

 

“Administrative Rights” means the administrative rights related to the Quota pursuant to article 2352, paragraph 6, of the civil code, included the right to intervene in Company’s meetings, the right to request the postponement of Company’s meetings and the right to challenge  the decision of Company’s meetings.

 

“Affiliate” means “Affiliate” as indicated in the Financing Agreement.

 

“Agent Bank” means:

 

	
  

	
(a)

	
bank of America; and

 

 

Courtesy Translation

  

  

  

 

	
  

	
(b)

	
any successor, universal or particular, any transferee or assignee of Bank of America, as Agent Bank;

 

“Agreement” means this agreement.

 

“Business Day” means “Business Day” indicated in Financing Agreement.

 

“Cash Management Agreement” means each “Cash Management Agreement” (as defined in the Credit Agreement) entered by the Pledgor, on one side, and by Bank of America or one of its affiliated company, on the other side.

 

“Company” means Fidia Advanced Biopolymers S.r.l., with legal office in Via Ponte della Fabbrica 3/B, Albano Terme (Padova), registered in the Companies Register of Padova, with fiscal code and Rea n. 01510440744.

 

“Counterparties Cash Management” means:

 

	
  

	
(a)

	
Bank of America or one of its Affiliate, as parties of a Cash Management Agreement; and

 

	
  

	
(b)

	
any successor, universal or particular, any transferee or assignee of Bank of America o one of its Affiliate in the Cash Management Agreement.

 

“Credit Rights” means the credit rights of the Guaranteed Creditors with respect to the Guaranteed Obligations.

 

“Decisions” means:

 

	
  

	
(a)

	
before the occurance of an Event of Default, any decision of the Company’s quotaholders (adopted in the meeting, by a written consultation, on the basis of the written consent or in any other way) related to any amendment of the corporate by-laws, included, but not limited to, any deliberation having subject the increase or reduction of the corporate capital, merger demerger, transformation or winding up; or

 

	
  

	
(b)

	
after the occurance of an Event of Default and until the Event of Default is terminated, any other decision of the Company’s quotaholders (adopted in the meeting, by a written consultation, on the basis of the consent written or in any other way).

 

“Dividends” means:

 

	
  

	
(a)

	
the dividends paid or to be paid with respect to the Quota;

 

	
  

	
(b)

	
any other distribution (in money or in kind) or any other amount paid or to be paid with respect to the Quota (included each amount paid or to be paid afterward the distribution of the corporate reserves, however denominated, or the liquidation of the Company);

 

	
  

	
(c)

	
each dividend, distribution or any other amount paid or to be paid with respect to Related Securities Rights.

 

 

Courtesy Translation

  

  

  

 

“Event of Default” means “Events of Default” as indicated in Financing Agreement.

 

“Financial Banks” means:

 

	
  

	
(a)

	
Bank of America; and

 

	
  

	
(b)

	
any successor, universal or particular, any transferee or assignee of Bank of America, as “Lender”, or lending, pursuant to the Financing Agreement.

 

“Financial Documents” means “Loan Documents” as indicated in Financing Agreement.

 

 “Financing” has the same meaning indicated in Whereas A.

 

“Financing Agreement” has the same meaning indicated in Whereas (A).

 

“Guaranteed Creditors” means the Agent Bank and the Financial Banks. Subsequently to the executions indicated in article 3.3 (Hedge Agreements and Cash Management Agreements), the Hedging Counterparties and the Cash Management Counterparties will be Guaranteed Creditors pursuant to this Agreement.

 

“Guaranteed Obligations” means:

 

	
  

	
(a)

	
all the pecuniary obligations of the Pledgor, actual or potential, toward to the Agent Bank and Financial Banks indicated in the Financing Agreement (included the “Notes”, as defined in the Financing Agreement), included, in particular, the obligations of reimburse of capital, the payment obligations with respect to the rates (included the interest on delayed payment) accrued on the financing indicated in Financing Agreement and the obligations related to payment of awards, commissions, indemnities, compensations, expenses, tax and other costs resulting from the Financing Agreement (included the costs related to the renewal, the extension, the amendment and the refinancing as well as the costs and the legal expenses supported by the Agent Bank and the Financial Banks with respect to Financing Agreement);

 

	
  

	
(b)

	
subsequently to the executions indicated in article 3.3 (Hedge Agreement and Cash Management Agreement), all the pecuniary obligations of the Pledgor, actual and potential, towards to the Hedging Counterparties pursuant to the  Hedging Agreements;

 

	
  

	
(c)

	
subsequently to the executions indicated in article 3.3 (Hedge Agreement and Cash Management Agreement), all the pecuniary obligations of the Pledgor, actual and potential, towards to the Cash Management Counterparties pursuant to the  Cash Management Agreements.

 

It being understood that if one of such obligations is declared invalid or ineffective, or if the Pledge couldn’t or couldn’t more guarantee, for any reasons, some of such obligations, the validity and the effectiveness of the Pledge will not be prejudiced and will continue to guarantee the exact execution of all other obligations as here defined.

 

 

Courtesy Translation

  

  

  

 

“Hedging Agreement” means each hedge agreement (as defined in the Financing Agreement) entered by the Pledgor and by Bank of America or one of its affiliated company.

 

“Hedging Counterparties” means:

 

	
  

	
(a)

	
Bank of America or one of its Affiliate, as parties of an Hedge Agreement; and

 

	
  

	
(b)

	
any successor, universal or particular, transferee or assignee of Bank of America or one of its Affiliate in Hedge Agreement.

 

“Increase of the Quota” has the meaning indicated in point (b) of article 2 (Guarantee).

 

“Object of Pledge” means, jointly, the Quota and the Related Rights.

 

“Parties” mean the parties of this Agreement.

 

“Pledge” means the guarantee of article 2 (Guarantee).

 

“Pledgor” means Anika Therapeutics, INC., a company duly incorporated under the law of Massachusetts, with legal office in Wiggins Avenue 32, Bedford, Massachusetts (U.S.A.), Italian fiscal n. code 97542640152].

 

 “Related Securities Rights” means any quota of participation or any other security rights or rights attributed or attributable to the Pledgor in exchange for or in relation to the Quota or part of the Quota (including, but not limited to, those obtained as a consequence of merger or demerger or transformation of the Company).

 

 “Quota” means a quota equal to the 65% of the Company’s corporate capital, the value of which is equal to Euro 1.201.794.8. It being understood that the Quota shall continue to represent the 65% of the Company’s corporate capital, such value will be increased or reduced with respect to the amendment of Company’s corporate capital.

 

“Related Rights” means:

 

	
  

	
(a)

	
each Dividend;

 

	
  

	
(b)

	
each option right related to the Quota or to Related Securities Rights; and

 

	
  

	
(c)

	
each quota or any other security right or attributed or attributable rights to the Pledgor, in change of or in relation with each Related Securities Right.

 

“Transfer” means “Assignment and Assumption” as indicated in the Financing Agreement.

 

 “Voting Rights” means the rights to vote with respect to the Quota.

 

 

Courtesy Translation

  

  

  

 

	
1.2

	
Interpretations

 

The WHEREAS clauses to this Agreement constitute an integral and essential part of the same.

 

	
1.3

	
The Agent Bank

 

The Pledgor acknowledges that the Guaranteed Creditors assigned a task to the Agent Bank in order to the Agent Bank, on behalf and on the name of Guaranteed Creditors, can:

 

	
  

	
(a)

	
exercise the rights, the powers and the faculties attributed to Guaranteed Creditors pursuant to this Agreement and, however, with respect to the Pledge;

 

	
  

	
(b)

	
enter any amendment agreement of this Agreement, any further pledge agreement which must be entered pursuant to the dispositions of this Agreement and possible amendments or integrations as well as any deed or document which will be necessary to the cancellation of the Pledge, included an approval agreement for the cancellation of the agreement; and

 

	
  

	
(c)

	
enforce the Pledge, it being understood that the Agent Bank will have the possibility to delegate one of the Guaranteed Creditors.

 

	
2.

	
GUARANTEE

 

	
(a)

	
With this Agreement the Pledgor irrevocably establishes a pledge in favor of the Guaranteed Creditors to guarantee the exact and punctual execution of the Guaranteed Obligations (the “Pledge”).

 

	
(b)

	
In case of any event, included, but not limited to, any capital increase which has as effect the increase the Company’s corporate capital (the “Increase of the Quota”), the Pledgor undertakes to sign a deed of establishment or a deed of acknowledgment which will have the similar contents of this Agreement or any other document, and the Pledgor undertakes to do all it is necessary to establish or acknowledge the existence of the pledge rights on the Quota, as increased, in favor of the Guaranteed Creditors.

 

	
3.

	
PERFECTION OF THE PLEDGE

 

	
3.1

	
Filing of Agreement and annotation of Pledge

 

	
(a)

	
Subsequently to the stipule of this Agreement, the Pledgor shall file a notarial certified copy in Companies Register of Padova, pursuant to article 2470 of civil code.

 

	
(b)

	
Should the Company keep the quotaholder’s book, the Pledgor, within five Business Days starting from the confirmation of the filing above, shall:

 

	
  

	
(i)

	
cause the Pledge to be noted in the quotaholder’s book; and

 

	
  

	
(ii)

	
deliver to the Agent Bank a certified copy of the quotaholder’s book pages reporting the Pledge annotation.

 

 

Courtesy Translation

  

  

  

 

	
(c)

	
The annotation in the quotaholder’s book of the Company, where applicable, will be effected using the formula indicated in Attachment 2 (Text of the annotation in quotaholder’s book of the Company).

 

	
3.2

	
Company’s Letter

 

The Pledgor causes the Company to, within 3 (three) Business Day after the stipule of this Agreement, will send a letter having the content indicated in Attachment 3 (Company’s Letter).

 

	
3.3

	
Hedging Agreement e Cash Management Agreements

 

	
(a)

	
Promptly, and, in any case within 5 (five) Business Day starting from the signing of any Hedging Agreement or Cash Management Agreement, the Pledgor and the counterparty of such Hedge Agreement or Cash Management Agreement shall enter in front of a Public Notary an amendment agreement which confirms the validity and the effectiveness of the Pledge also with respect to the pecuniary obligations of the Pledgor, actual or potential, resulting from such Hedging Agreement or Cash Management Agreement. In the amendment agreement of this paragraph, the previsions indicated in article 3.1 will be applied (Filing of Pledge Agreement and Pledge annotation).

 

	
(b)

	
The dispositions of this Agreement will be applied for all the additional agreement entered pursuant to this article 3.3.

 

	
4.

	
VOTING RIGHTS; DIVIDENDS

 

	
4.1

	
Voting Rights and Administrative Rights

 

Without prejudice of article 4.2 (Voting Rights and Administrative Rights exercise of the Guaranteed Creditors), the Voting Rights and the Administrative Rights shall remain to the Pledgor, it is being understood that such rights shall not be exercised by the Pledgor in order to cause a Event of Default or in order to invalidate the Pledge or the execution of it.

 

	
4.2

	
Voting Rights and of the Administrative Rights Exercise by the Guaranteed Creditors

 

	
(a)

	
Should an Event of Default occur, the Guaranteed Creditors have the right to exercise the Voting Rights and the Administrative Rights through the Agent Bank.

 

	
(b)

	
With respect to paragraph (a) above, the Agent Bank will send a notice to the Pledgor and to the Company giving them information of the occurance of the Event of Default and of the intention to exercise the Voting Rights and the Administrative Rights and, once received such notice the Pledgor will not exercise the Voting Rights and the Administrative Rights; and

 

	
  

	
(i)

	
until the Event of Default is terminated, the Guaranteed Creditors will be the sole having the right to exercise the Voting Rights and the Administrative Rights through the Agent Bank.

 

 

Courtesy Translation

  

  

  

 

	
4.3

	
Dividends

 

Without prejudice of article 4.4 (Dividends to Guaranteed Creditors), the Pledgor has the right to collect the Dividends.

 

	
4.4

	
Dividends to Guaranteed Credotors

 

	
(a)

	
If the Agent Bank sent the notice to the Pledgor giving it information related to the occurance of the Event of Default, the Dividends will be paid to Agent Bank on behalf the Guaranteed Creditors.

 

	
(b)

	
The Agent Bank will assign the Dividends received pursuant to paragraph (a) with the scope to satisfy the Guaranteed Obligations as indicated in the Financial Documents.

 

	
5.

	
ENFORCEMENT OF PLEDGE

 

	
(a)

	
Upon occurance of an Event of Default and in any subsequent moment, the Guaranteed Creditors, through the Agent Bank, without prejudice to any other right or action provided for the law, pursuant to the article 2798 of civil code, will have the rights to sell the Object of Pledge or part of it, after expiration of a 5 day period starting from the receipt from Pledgor of the intimation pursuant to article 2797, paragraph 1, of civil code.

 

	
(b)

	
The Pledgor and the Guaranteed Creditors agree that, pursuant to article 2797, last paragraph, of civil code, the Guaranteed Creditors will have the possibility to sell the Object of Pledge entirely or part of it, also in more instalments, with or without an auction through an authorized intermediary or a judicial officer or any other authorized person.

 

	
(c)

	
The Agent Bank will assign the proceeds resulting from the Pledge’s enforcement in order to satisfy the Guaranteed Obligation, pursuant to indicated in Financial Documents.

 

	
6.

	
REPRESENTATION AND WARRANTIES

 

	
(a)

	
Without any prejudice and in addition to the representations and warranties of the Financing Agreement and of the Financial Documents, the Pledgor declares and guarantees that:

 

	
  

	
(i)

	
the Pledgor is the sole holder of the Quota, which is free from security guarantees and third party rights, with exclusion of the Pledge;

 

	
  

	
(ii)

	
the Quota represents altogether the 65% of Company’s corporate capital and it was effectively issued, signed and free; the Company’s corporate capital equal to Euro 1.848.915 at this date is entirely filed;

 

	
  

	
(iii)

	
the Quota is not subject to attachment, or other enforceability action from third party or other measures which could limit the ability to dispose of the Quota or which could prejudice the execution of Pledge;

 

 

Courtesy Translation

  

  

  

 

	
  

	
(iv)

	
there are not circumstances which could legitimate the withdraw from the Company.

 

	
(b)

	
The representations of this article will be considered reiterated by the Pledgor to each date indicated in the article 5 (“Representations and Warranties”) of the Financing Agreement.

 

	
7.

	
COVENANTS

 

Until the date of Pledge’s release, the Pledgor undertakes:

 

	
(a)

	
to sign (and cause the Company to sign) and deliver to the Agent Bank the documents and the deeds and carry out any action (and cause the Company to carry out any action) which the Agent Bank can request in order to:

 

	
  

	
(i)

	
establish and perfect a valid and effective pledge in favor of the Guaranteed Creditors;

 

	
  

	
(ii)

	
keep the validity and the effectiveness of the Pledge and the rights and claims of the Guaranteed Creditors pursuant to this Agreement;

 

	
  

	
(iii)

	
allow to the Agent Bank and Guaranteed Creditors the exercise of the rights and the claims attributed pursuant to this Agreement; and

 

	
  

	
(iv)

	
perfect the extention of the Pledge on the Related Rights;

 

	
(b)

	
to transfer or dispose of the Quota, entirely or in part;

 

	
(c)

	
except with prior approval of the Agent Bank, not to exercise the rights of article 2795, paragraph 3 and 4, of civil code;

 

	
(d)

	
not to create or allow the creation of guarantees or others third’s right on the Object of Pledge;

 

	
(e)

	
not to carry out claims which can prejudice, directly or indirectly, the validity, the effectiveness and the enforcement of the Pledge or the rights of Guaranteed Creditors pursuant to this Agreement;

 

	
(f)

	
if entitled to exercise the Voting Rights, not to express its vote or consent on Decisions regarding matters which are not communicated to the Agent Bank 3 day before the date in which such Decision has been taken, except written approval from the Agent Bank;

 

	
(g)

	
to send to the Agent Bank a copy of the Company’s meeting minute or the documents from which result the quotaholders consent related to each Decision within 10 Business Day starting from the date in which the Decision has been taken;

 

	
(h)

	
in case of increase of the Company’s corporate capital, to sign such increase of Company’s corporate capital in proportion to the participation held in the Company; and

 

 

Courtesy Translation

  

  

  

 

	
(i)

	
to cooperate with the Guaranteed Creditors in order to protect the rights of the Guaranteed Creditors on the Object of the Pledge against any claim from third party.

 

	
8.

	
MAINTENANCE OF THE PLEDGE

 

	
(a)

	
Pursuant to article 1232 of civil code, the Parties agree that the Pledge will remain valid and effective in case of objective novation (change) of one or more of the Guaranteed Obligations.

 

	
(b)

	
Pursuant to 1275 of civil code, the Pledgor expressive and irrevocably gives its consent to keep the Pledge in case of subjective novation (change of creditor) of one or more of the Guaranteed Obligations.

 

	
(c)

	
The Parties expressive recognize that, with reference to the Pledge, a transfer of whole or part of the Financing Agreement (also included through Transfer) or Hedging Agreement or Cash Management Agreement and a transfer of whole or part of one or more of the Credit Rights shall be qualified as a transfer of agreement or transfer of credit and, therefore, will not cause a objective novation of the Guaranteed Obligation nor they will have a novation effect upon the Financing Agreement or upon the Hedging Agreement or Cash Management Agreements or on the Pledge.

 

	
(d)

	
Without prejudice the provisions of paragraph (a), (b) e (c) above, in case of:

 

	
  

	
(i)

	
objective novation of one or more of the Guaranteed Obligations;

 

	
  

	
(ii)

	
subjective novation of one or more of the Guaranteed Obligations;

 

	
  

	
(iii)

	
transfer of whole or part of the Financing Agreement (included through Transfer), of the Hedging Agreements or of Cash Management Agreement;

 

	
  

	
(iv)

	
transfer, entirely o in part, of one or more of the Credit Rights; or

 

	
  

	
(v)

	
amendment of some disposition of the Financing Agreement, Hedging Agreements and Cash Management Agreements or Guaranteed Obligations,

 

the Pledgor, upon request of Agent Bank, in compliance with term and timing indicated from the Agent Bank, undertakes to sign (and cause the Company to sign) any documents or deed and undertakes to carry out (and cause the Company to carry out) any action necessary or deemed reasonable appropriate by the Agent Bank to keep the validity and the effectiveness of the Pledge.

 

	
(e)

	
Pursuant to article 1407, paragraph 1 of civil code, the Pledgor gives its express and irrevocable consent to transfer from one of the Guaranteed Creditors whole or part of the own position of pledge pursuant to this Agreement in favor of any successor, transferee or assignee of such Guaranteed Creditor.

 

	
(f)

	
The Pledgor gives its consent so that any communication from the Agent Bank having as subject a Transfer will be deemed a notice of transfer of this Agreement pursuant to paragraph (e) above and article 1407, paragraph 1, of civil code.

 

 

Courtesy Translation

  

  

  

 

	
(g)

	
The Financial Banks accept that the receipt by the Agent Bank of the communication pursuant to paragraph (b)(iv) of article 11.06 (“Successors and Assigns”) of Financing Agreement shall be deemed as an appropriate notice of transfer pursuant to paragraph (e) above and article 1407, paragraph 1, of civil code.

 

	
9.

	
CANCELLATION OF PLEDGE

 

	
(a)

	
At the Date in which all the Guaranteed Obligations will be entirely fulfilled and the “Commitment” (as defined in Financing Agreement) will terminate, the Pledge will be released from the Agent Bank, upon request by and with expenses to be borne by the Pledgor.

 

	
(b)

	
The Pledgor expressive acknowledges that, before the request indicated in point (a) above, the Pledge will remain valid and effective despite all the Obligations may have been entirely and unconditionally fulfilled.

 

	
10.

	
VARIOUS

 

	
(a)

	
Any amendment to this Agreement or waiver of a right resulting from this Agreement shall be effective only if it is agreed in writing between the Parties.

 

	
(b)

	
The rights, the actions, and the remedies provided for this Agreement in favor of the Guaranteed Creditors are added and they do not exclude further rights, claims, and remedies owned or legitimated pursuant to an agreement by the Guaranteed Creditors (included, for instance, those of the Financial Documents) or pursuant to the law.

 

	
(c)

	
The Pledge established with this Agreement joins and does not prejudice in any way the further guarantees owned by the Guaranteed Creditors for the Guaranteed Obligations.

 

	
(d)

	
The invalidity or the ineffectiveness of some of the dispositions of this Agreement will not prejudice the validity or the effectiveness of the other disposition of this Agreement.

 

	
(e)

	
The Agent Bank and the Guaranteed Creditors will be not liable, except in case of fraud or gross negligence, for the damages caused to the Company or to the Pledgor as a consequence of the exercise or missed exercise of the rights, claims or remedies provided for this Agreement.

 

	
(f)

	
Taxies, duties and the expenses of this Agreement and the formalities and of the next cancellations will be borne from the Pledgor. In light of above and in compliance with for article 11.04 (“Expenses; Indemnity; Damage Waiver”) of Financing Agreement, the Pledgor undertakes to reimburse, simultaneously with the signing of this Agreement, fees and expenses of the legal council to the Agent bank for which request is done before the signing of this Agreement.

 

	
 
(g)

	
 

 

	
11.

	
APPLICABLE LAW AND JURISDICTION

 

	
(a)

	
This Agreement shall be governed by the laws of the Republic of Italy.

 

	
(b)

	
It is being understood the exclusive competences provided for law, the Court of Milan shall have exclusive competence to decide any dispute deriving from this Agreement.

 

 

Courtesy Translation

  

  

  

ATTACHEMENT 1

 

	
Main terms of the Financing

 

	
Financing

 

	
Amount:

	
US$ 16.000.000

 

	
Finance company:

	
Anika Therapeutics, INC.

 

	
Interest Rate:

	
the yearly interest rate on the financing is equal, optionally of financed company (i) to the Eurodollar Rate (as defined in the Financing Agreement) related to each Interest Period (as defined in the Financing Agreement) increased of the 0,75% or (ii) equal to the Base Rate (as defined in the Financing Agreement)

 

	
Expiration:

	
December 31, 2015

 

	
Reimbursement Modalities:

	
In 28 quarterly instalments, each one shall be paid in corrispondence to each Principal Payment Date (as defined in the Financing Agreement), to be calculated on the basis of a ten-year amortization period and in order that the last instalment is equal to the amount of the financing still to be paid at that date.

 

Courtesy Translation

  

  

  

ATTACHEMENT 2

 

Text of the annotation on the quotaholder’s book

 

 

It is acknowledged that, pursuant to the pledge’s deed on the quota entered on March 12, 2010 between Anika Therapeutics, INC., as Pledgor, Bank of America, N.A., as Guaranteed Creditor, and the Company (copy of which is filed in the Company’s books), a quota representing the 65% of corporate capital of the Company, equal to Euro 1.201.794,8, owned by Anika Therapeutics, INC., is object of pledge in favor of:

 

Bank of America, N.A., national bank association incorporated under the law of United States of America, with legal office in Norton Tryon Street 100, Charlotte, North Carolina (U.S.A.),

 

in order to guarantee the obligation of Anika Therapeutics, INC., resulting from a financing agreement for a maximum amount of equal to US Dollars 16.000.000 entered on January 3, 2008 e in order to guarantee the other Guaranteed Obligations of the mentioned pledge’s deed. The voting rights and the dividends are regulated by article 4 of the mentioned deed of pledge.

 

[Place and Date]

 

[Sign of a Director]

 

 

Courtesy Translation

  

  

  

 

ATTACHMENT 3

 

Company’s Letter

 

 

[On headed paper of the Company]

 

 

To:           Bank of America, N.A.

 

[Place and Date]

 

Pledge Agreement on Quotas

 

Mr. [•],

 

With reference to the deed of pledge (the “Deed of Pledge”) entered in Boston, Massachussets on March 12, 2010 between Anika Therapeutics, INC. (il “Pledgor”) and Bank of America, N.A., as Agent Bank and Financial Banks (i “Guaranteed Creditors”), pursuant to which the Pledgor granted in favor the Guaranteed Creditors a pledge on a quota of  the corporate capital of Fidia Advanced Biopolymers S.r.l. (the “Company”), representing the 65% of corporate capital of the Company, equal to Euro 1.201.794,8. It is being understood that the quota granted as pledge will continue to represent in any time the 65% of Company’s corporate capital, such value, will be increased or reduced pursuant to the amendment of the corporate capital of the Company.

 

With this letter we confirm the receipt of the copy of the deed of pledge and:

 

	
1.

	
we take note of the pledge resulting from the deed of pledge and we take note of obligations hired by the Pledgor pursuant to the deed of Pledge;

 

	
2.

	
we take note of the dispositions of article 4.2 (Voting Rights and Administrative Vote exercise by the Guaranteed Creditors) and article 4.4 (Dividends in favor of Guaranteed Creditors) of the Deed of Pledge and, therefore, after the receipt of a notice from the Agent Bank having as subject the a Event of default (as defined in the Deed of Pledge) is occured (and until the receipt of a notice from the Agent Bank having as subject the end of the Event of default), we will consider the Guaranteed Creditor validly legitimated to (i) exercise the voting rights and the administrative rights related to the quotas of participation given as pledge and e (ii) receive the relative dividends;

 

	
3.

	
we take note that the pledge of the Deed of Pledge will can extent with respect to any increase of the Quota and with respect to the Related Rights (as both defined in the Deed of Pledge) and will remain valid and effective in case of subjective novation or objective novation of the Guaranteed Obligations (as defined in the Deed of Pledge);

 

	
4.

	
we take note that the Agent Bank and the Guaranteed Creditors will not be liable, except in case of fraud or gross negligence, for the damages caused to the Company in case of exercise or missed exercise of the rights, claims or remedies which the Agent 

 

Courtesy Translation

  

  

  

 

	
 

	
Bank and the Guaranteed Creditors are legitimated to use pursuant ti the Deed of Pledge.

 

 

_________________________

 

Fidia Advanced Biopolymers S.r.l.

 

Represented by: [●]

 

As: [●]

 

 

 

To acknowledge and acceptance

 

 

_________________________

 

Bank of America, N.A.

 

Courtesy Translation

  

  

  

 

SIGNING PARTIES

 

 

ANIKA THERAPEUTICS, INC.

 

   /s/ Charles H. Sherwood___________________

Name:  Charles H. Sherwood

Title: President and Chief Executive Officer

 

 

BANK OF AMERICA, N.A., as Agent Bank and Financier Banks

 

       /s/ Jean S. Manthorne_______________________

Name: Jean S. Manthorne

Title: Senior Vice President

 

 

 

Courtesy TranslationExhibit 4.1

                           NORTH AMERICAN NICKEL INC.

                                STOCK OPTION PLAN

1.   PURPOSE OF THE PLAN

     The Company hereby  establishes a stock option plan for  directors,  senior
officers,  Employees,  Consultants,  Consultant  Company or  Management  Company
Employees (as such terms are defined below) of the Company and its subsidiaries,
or where the Company is an Unlisted Issuer, an Eligible Charitable  Organization
(collectively  "ELIGIBLE PERSONS"),  to be known as the "Stock Option Plan" (the
"PLAN").  The purpose of the Plan is to give to Eligible Persons,  as additional
compensation,  the  opportunity  to participate in the success of the Company by
granting to such  individuals  options,  exercisable  over  periods of up to ten
years, as determined by the board of directors of the Company,  to buy shares of
the  Company at a price  equal to the Market  Price  prevailing  on the date the
option is granted less applicable discount, if any, permitted by the policies of
the Exchanges and approved by the Board.

2.   DEFINITIONS

     In this Plan, the following terms shall have the following meanings:

2.1  "ASSOCIATE" means an "Associate" as defined in the TSX Policies.

2.2  "BOARD" means the Board of Directors of the Company.

2.3  "CHANGE OF CONTROL"  means the  acquisition  by any person or by any person
     and all Joint Actors, whether directly or indirectly,  of voting securities
     (as defined in the SECURITIES ACT) of the Company, which, when added to all
     other voting  securities  of the Company at the time held by such person or
     by such person and a Joint  Actor,  totals for the first time not less than
     fifty percent (50%) of the outstanding  voting securities of the Company or
     the votes attached to those  securities are  sufficient,  if exercised,  to
     elect a majority of the Board of Directors of the Company.

2.4  "COMPANY" means North American Nickel Inc. and its successors.

2.5  "CONSULTANT" means a "Consultant" as defined in the TSX Policies.

2.6  "CONSULTANT  COMPANY"  means a  "Consultant  Company" as defined in the TSX
     Policies.

2.7  "DISABILITY"  means any  disability  with respect to an Optionee  which the
     Board, in its sole and unfettered  discretion,  considers likely to prevent
     permanently the Optionee from:

     (a)  being employed or engaged by the Company,  its subsidiaries or another
          employer, in a position the same as or similar to that in which he was
          last employed or engaged by the Company or its subsidiaries; or

     (b)  acting as a director or officer of the Company or its subsidiaries.
<PAGE>
                                      -2-

2.8  "DISCOUNTED MARKET PRICE" of Shares means, if the Shares are listed only on
     the TSX  Venture  Exchange,  the  Market  Price less the  maximum  discount
     permitted under the TSX Policy applicable to Options.

2.9  "ELIGIBLE   CHARITABLE   ORGANIZATION"   means  an   "Eligible   Charitable
     Organization" as defined in the TSX Policies.

2.10 "ELIGIBLE PERSONS" has the meaning given to that term in section 1 hereof.

2.11 "EMPLOYEE" means an "Employee" as defined in the TSX Policies.

2.12 "EXCHANGES"  means the TSX Venture  Exchange and, if applicable,  any other
     stock exchange on which the Shares are listed.

2.13 "EXPIRY DATE" means the date set by the Board under  subsection  3.1 of the
     Plan, as the last date on which an Option may be exercised.

2.14 "GRANT DATE" means the date  specified in the Option  Agreement as the date
     on which an Option is granted.

2.15 "INSIDER" means an "Insider" as defined in the British Columbia  SECURITIES
     ACT.

2.16 "INVESTOR RELATIONS  ACTIVITIES" means "Investor  Relations  Activities" as
     defined in the TSX Policies.

2.17 "JOINT  ACTOR" means a person  acting  "jointly or in concert with" another
     person as that phrase is interpreted in  Multi-lateral  Instrument  62-104,
     TAKE-OVER BIDS AND ISSUER BIDS.

2.18 "MANAGEMENT  COMPANY  EMPLOYEE"  means a "Management  Company  Employee" as
     defined in the TSX Policies.

2.19 "MARKET PRICE" of Shares at any Grant Date means the last closing price per
     Share on the trading day immediately preceding the day on which the Company
     announces the grant of the option or, if the grant is not announced, on the
     Grant Date, or if the Shares are not listed on any stock exchange,  "Market
     Price" of Shares means the price per Share on the  over-the-counter  market
     determined by dividing the  aggregate  sale price of the Shares sold by the
     total number of such Shares so sold on the  applicable  market for the last
     day prior to the Grant Date.

2.20 "OPTION" means an option to purchase Shares granted pursuant to this Plan.

2.21 "OPTION  AGREEMENT"  means an  agreement,  in the form  attached  hereto as
     Schedule "A", whereby the Company grants to an Optionee an Option.

2.22 "OPTIONEE"  means each of Eligible  Persons  granted an Option  pursuant to
     this Plan and their heirs, executors and administrators.

2.23 "OPTION PRICE" means the price per Share specified in an Option  Agreement,
     adjusted from time to time in accordance with the provisions of section 5.
<PAGE>
                                      -3-

2.24 "OPTION SHARES" means the aggregate  number of Shares which an Optionee may
     purchase under an Option.

2.25 "PLAN" means this Stock Option Plan.

2.26 "SHARES"  means  the  common  shares  in  the  capital  of the  Company  as
     constituted on the Grant Date provided that, in the event of any adjustment
     pursuant to section 5, "Shares" shall  thereafter  mean the shares or other
     property resulting from the events giving rise to the adjustment.

2.27 "SECURITIES  ACT"  means the  SECURITIES  ACT,  R.S.B.C.  1996,  c.418,  as
     amended, as at the date hereof.

2.28 "TSX  POLICIES"  means the  policies  included in the TSX Venture  Exchange
     Corporate Finance Manual and "TSX Policy" means any one of them.

2.29 "UNISSUED  OPTION  SHARES"  means the  number of Shares  which  have,  at a
     particular time, been reserved for issuance upon the exercise of an Option,
     but which have not been issued, as adjusted from time to time in accordance
     with the provisions of section 5, such adjustments to be cumulative.

2.30 "UNLISTED ISSUER" means a company, corporation trust or limited partnership
     which has no  securities  listed or quoted on any stock  exchange,  nor has
     outstanding  securities for which trading is reported to or through a stock
     exchange or public market.

2.31 "VESTED" means that an Option has become exercisable in respect of a number
     of  Option  Shares by the  Optionee  pursuant  to the  terms of the  Option
     Agreement.

3.   GRANT OF OPTIONS

3.1  OPTION TERMS

     The Board may from time to time  authorize the issue of Options to Eligible
Persons of the Company and its subsidiaries.  The Option Price under each Option
shall be not less than the Discounted Market Price on the Grant Date. The Expiry
Date  for  each  Option  shall  be set by the  Board at the time of issue of the
Option and shall not be more than ten years after the Grant Date.  Options shall
not be assignable (or transferable) by the Optionee.

3.2  LIMITS ON SHARES ISSUABLE ON EXERCISE OF OPTIONS

     The  maximum  number of Shares  which may be  issuable  pursuant to options
granted under the Plan shall be that number equal to 10% of the Company's issued
share  capital  from time to time.  The number of Shares  reserved  for issuance
under the Plan and all of the Company's other previously established or proposed
share compensation arrangements:

     (a)  in  aggregate  shall not exceed 10% of the total  number of issued and
          outstanding shares on a non-diluted basis; and
<PAGE>
                                      -4-

     (b)  to any one  Optionee  within a 12 month  period shall not exceed 5% of
          the total  number of issued and  outstanding  shares on a  non-diluted
          basis (unless otherwise approved by the disinterested  shareholders of
          the Company).

The  number  of  Shares  which  may be  issuable  under  the Plan and all of the
Company's   other   previously   established  or  proposed  share   compensation
arrangements, within a one-year period:

     (a)  to all Insiders shall not exceed 10% of the total number of issued and
          outstanding shares on the Grant Date a non-diluted basis;

     (b)  to any one Optionee, shall not exceed 5% of the total number of issued
          and  outstanding  Shares  on the  Grant  Date on a  non-diluted  basis
          (unless otherwise  approved by the  disinterested  shareholders of the
          Company);

     (c)  to any one  Consultant  shall not  exceed 2% in the  aggregate  of the
          total number of issued and  outstanding  Shares on the Grant Date on a
          non-diluted basis; and

     (d)  to all Eligible Persons who undertake  Investor  Relations  Activities
          shall not exceed 2% in the aggregate of the total number of issued and
          outstanding  Shares on the Grant Date on a  non-diluted  basis,  which
          Options are to be vested in stages over at least a one-year period and
          no more than  one-quarter  (1/4) of such  Options may be vested in any
          three (3) month period.

3.3  OPTION AGREEMENTS

     Each Option  shall be confirmed  by the  execution of an Option  Agreement.
Each  Optionee  shall have the option to  purchase  from the  Company the Option
Shares  at the time  and in the  manner  set out in the  Plan and in the  Option
Agreement  applicable  to  that  Optionee.   For  stock  options  to  Employees,
Consultants,  Consultant Company or Management Company Employees, the Company is
representing  herein and in the applicable Option Agreement that the Optionee is
a bona fide  Employee,  Consultant,  Consultant  Company or  Management  Company
Employee, as the case may be, of the Company or its subsidiary. The execution of
an  Option  Agreement  shall  constitute  conclusive  evidence  that it has been
completed in compliance with this Plan.

4.   EXERCISE OF OPTION

4.1  WHEN OPTIONS MAY BE EXERCISED

     Subject to  subsections  4.3 and 4.4,  an Option  shall be granted as fully
Vested on the Grant Date,  and may be exercised to purchase any number of Shares
up to the number of  Unissued  Option  Shares at any time after the Grant  Date,
provided that this Plan has been previously  approved by the shareholders of the
Company,  where such prior approval is required by TSX Policies, up to 4:00 p.m.
local time on the Expiry Date and shall not be exercisable thereafter.

4.2  MANNER OF EXERCISE

     The Option  shall be  exercisable  by  delivering  to the  Company a notice
specifying  the number of Shares in  respect  of which the  Option is  exercised
together  with  payment in full of the Option  Price for each such  Share.  Upon
notice and payment there will be binding contract for the issue of the Shares in
<PAGE>
                                      -5-

respect of which the Option is exercised,  upon and subject to the provisions of
the Plan. Delivery of the Optionee's cheque payable to the Company in the amount
of the Option  Price shall  constitute  payment of the Option  Price  unless the
cheque is not honoured upon presentation in which case the Option shall not have
been validly exercised.

4.3  VESTING OF OPTION SHARES

     An Option  shall be granted  hereunder  as fully  Vested,  unless a vesting
schedule is imposed by the Board as a condition  of the grant on the Grant Date;
and provided  that if the Option is being  granted to an Eligible  Person who is
providing  Investor  Relations  Activities to the Company,  then the Option must
vest in stages  over at least a  one-year  period  and no more than  one-quarter
(1/4) of such Options may be vested in any three (3) month period.

4.4  TERMINATION OF EMPLOYMENT

     If an Optionee ceases to be an Eligible Person,  his or her Option shall be
exercisable as follows:

     (a)  Death or Disability

          If the  Optionee  ceases to be an Eligible  Person,  due to his or her
          death or Disability  or, in the case of an Optionee that is a company,
          the death or  Disability  of the person  who  provides  management  or
          consulting  services to the Company or to any entity controlled by the
          Company,  the Option then held by the Optionee shall be exercisable to
          acquire Vested  Unissued Option Shares at any time up to but not after
          the earlier of:

          (i)  365 days after the date of death or Disability; and

          (ii) the Expiry Date.

     (b)  Termination For Cause

          If the Optionee,  or in the case of a Management Company Employee or a
          Consultant Company, the Optionee's employer,  ceases to be an Eligible
          Person  as a  result  of  termination  for  cause,  as  that  term  is
          interpreted by the courts of the  jurisdiction  in which the Optionee,
          or,  in the case of a  Management  Company  Employee  or a  Consultant
          Company,  of the  Optionee's  employer,  is employed  or engaged;  any
          outstanding  Option  held  by  such  Optionee  on  the  date  of  such
          termination shall be cancelled as of that date.

     (c)  Early Retirement,  Voluntary Resignation or Termination Other than For
          Cause

          If the Optionee or, in the case of a Management  Company Employee or a
          Consultant Company, the Optionee's employer,  ceases to be an Eligible
          Person  due  to his or her  retirement  at the  request  of his or her
          employer  earlier than the normal  retirement date under the Company's
          retirement  policy then in force,  or due to his or her termination by
          the  Company  other  than for  cause,  or due to his or her  voluntary
          resignation, the Option then held by the Optionee shall be exercisable
          to acquire  Vested  Unissued  Option  Shares at any time up to but not
<PAGE>
                                      -6-

          after the  earlier  of the  Expiry  Date and the date which is 90 days
          after the Optionee or, in the case of a Management Company Employee or
          a  Consultant  Company,  the  Optionee's  employer,  ceases  to  be an
          Eligible Person.

4.5  EFFECT OF A TAKE-OVER BID

     If a BONA FIDE offer (an  "Offer") for Shares is made to the Optionee or to
shareholders  of the  Company  generally  or to a class  of  shareholders  which
includes  the  Optionee,  which  Offer,  if accepted in whole or in part,  would
result in the  offeror  becoming  a control  person of the  Company,  within the
meaning of subsection 1(1) of the SECURITIES ACT, the Company shall, immediately
upon receipt of notice of the Offer, notify each Optionee of full particulars of
the Offer,  whereupon the Option Shares  subject to such Option may be exercised
in whole or in part by the  Optionee so as to permit the  Optionee to tender the
Option Shares received upon such exercise, pursuant to the Offer. However, if:

     (a)  the Offer is not completed within the time specified therein; or

     (b)  all of the Option  Shares  tendered  by the  Optionee  pursuant to the
          Offer are not taken up or paid for by the offeror in respect thereof,

then the Option Shares received upon such exercise, or in the case of clause (b)
above,  the Option Shares that are not taken up and paid for, may be returned by
the Optionee to the Company and reinstated as authorized but unissued Shares and
with respect to such returned  Option Shares,  the Option shall be reinstated as
if it had not been  exercised.  If any Option Shares are returned to the Company
under this  subsection  4.5, the Company shall  immediately  refund the exercise
price to the Optionee for such Option Shares.

4.6  ACCELERATION OF EXPIRY DATE

     If at any time when an Option  granted  under the Plan remains  unexercised
with respect to any Unissued Option Shares, an Offer is made by an offeror,  the
Directors may, upon  notifying  each Optionee of full  particulars of the Offer,
declare all Option Shares  issuable  upon the exercise of Options  granted under
the Plan, are Vested (subject to the proviso below), and declare that the Expiry
Date for the  exercise  of all  unexercised  Options  granted  under the Plan is
accelerated so that all Options will either be exercised or will expire prior to
the date upon which Shares must be tendered pursuant to the Offer, PROVIDED THAT
where an  Option  was  granted  to a  consultant  providing  Investor  Relations
Activities,  the  Directors  declaration  that Option  Shares  issuable upon the
exercise of such Options  granted  under the Plan be Vested with respect to such
Option  Shares,  is subject to prior  approval of the  Exchanges.  The Directors
shall give each Optionee as much notice as possible of the  acceleration  of the
Options  under this  section,  except that not less than 5 business days and not
more than 35 days notice is required.

4.7  EFFECT OF A CHANGE OF CONTROL

     If  a  Change  of  Control  occurs,  all  Option  Shares  subject  to  each
outstanding Option may be exercised in whole or in part by the Optionee.
<PAGE>
                                      -7-

4.8  EXCLUSION FROM  SEVERANCE  ALLOWANCE,  RETIREMENT  ALLOWANCE OR TERMINATION
     SETTLEMENT

     If the  Optionee,  or, in the case of a  Management  Company  Employee or a
Consultant Company, the Optionee's employer,  retires,  resigns or is terminated
from employment or engagement with the Company or any subsidiary of the Company,
the loss or  limitation,  if any, by the  cancellation  of the right to purchase
Option  Shares  under the Option  Agreement  shall not give rise to any right to
damages and shall not be included in the calculation of nor form any part of any
severance  allowance,  retiring allowance or termination  settlement of any kind
whatsoever in respect of such Optionee.

4.9  SHARES NOT ACQUIRED OR EXERCISED

     Any  Unissued  Option  Shares not  acquired by an Optionee  under an Option
which has expired, and any Option Shares acquired by an Optionee under an Option
when exercised,  may be made the subject of a further Option granted pursuant to
the provisions of the Plan.

5.   ADJUSTMENT OF OPTION PRICE AND NUMBER OF OPTION SHARES

5.1  SHARE REORGANIZATION

     Whenever the Company issues Shares to all or  substantially  all holders of
Shares by way of a stock  dividend  or other  distribution,  or  subdivides  all
outstanding  Shares into a greater number of Shares, or combines or consolidates
all outstanding Shares into a lesser number of Shares (each of such events being
herein called a "Share  Reorganization")  then effective  immediately  after the
record date for such dividend or other  distribution  or the  effective  date of
such subdivision, combination or consolidation, for each Option:

     (a)  the Option  Price will be  adjusted  to a price per Share which is the
          product of:

          (i)  the Option Price in effect immediately before that effective date
               or record date; and

          (ii) a fraction,  the numerator of which is the total number of Shares
               outstanding  on that  effective date or record date before giving
               effect to the Share Reorganization,  and the denominator of which
               is the total  number of Shares  that are or would be  outstanding
               immediately after such effective date or record date after giving
               effect to the Share Reorganization; and

     (b)  the number of Unissued  Option Shares will be adjusted by  multiplying
          (i) the number of  Unissued  Option  Shares  immediately  before  such
          effective  date  or  record  date  by  (ii) a  fraction  which  is the
          reciprocal of the fraction described in subparagraph (a)(ii).

5.2  SPECIAL DISTRIBUTION

     Subject to the prior approval of the Exchanges, whenever the Company issues
by way of a  dividend  or  otherwise  distributes  to all or  substantially  all
holders of Shares:
<PAGE>
                                      -8-

     (a)  shares of the Company, other than the Shares;

     (b)  evidences of indebtedness;

     (c)  any cash or other assets,  excluding cash  dividends  (other than cash
          dividends  which the Board of Directors of the Company has  determined
          to be outside the normal course); or

     (d)  rights, options or warrants,

then to the extent that such  dividend or  distribution  does not  constitute  a
Share  Reorganization  (any of such  non-excluded  events being herein  called a
"Special  Distribution"),  and  effective  immediately  after the record date at
which holders of Shares are determined for purposes of the Special Distribution,
for each  Option the Option  Price will be  reduced,  and the number of Unissued
Option Shares will be correspondingly  increased,  by such amount, if any, as is
determined by the Board in its sole and unfettered  discretion to be appropriate
in order to properly  reflect any  diminution in value of the Option Shares as a
result of such Special Distribution.

5.3  CORPORATE ORGANIZATION

     Whenever there is:

     (a)  a  reclassification  of  outstanding  Shares,  a change of Shares into
          other shares or securities, or any other capital reorganization of the
          Company, other than as described in subsections 5.1 or 5.2;

     (b)  a  consolidation,  merger or  amalgamation of the Company with or into
          another  corporation  resulting in a  reclassification  of outstanding
          Shares  into other  shares or  securities  or a change of Shares  into
          other shares or securities; or

     (c)  a  transaction  whereby  all or  substantially  all  of the  Company's
          undertaking and assets become the property of another corporation,

(any such event being herein called a "Corporate  Reorganization")  the Optionee
will  have an option to  purchase  (at the  times,  for the  consideration,  and
subject to the terms and  conditions set out in the Plan) and will accept on the
exercise of such option,  in lieu of the Unissued  Option  Shares which he would
otherwise have been entitled to purchase, the kind and amount of shares or other
securities  or property  that he would have been entitled to receive as a result
of the Corporate  Reorganization if, on the effective date thereof,  he had been
the  holder of all  Unissued  Option  Shares  or if  appropriate,  as  otherwise
determined by the Directors.

5.4  DETERMINATION OF OPTION PRICE AND NUMBER OF UNISSUED OPTION SHARES

     If any  questions  arise at any time with  respect to the  Option  Price or
number  of  Unissued  Option  Shares  deliverable  upon  exercise  of an  Option
following   a  Share   Reorganization,   Special   Distribution   or   Corporate
Reorganization, such questions shall be conclusively determined by the Company's
auditor, or, if they decline to so act, any other firm of Chartered  Accountants
in Vancouver,  British  Columbia,  that the Directors may designate and who will
have access to all appropriate  records and such  determination  will be binding
upon the Company and all Optionees.
<PAGE>
                                      -9-

5.5  REGULATORY APPROVAL

     Any adjustment to the Option Price or the number of Unissued  Option Shares
purchasable  under the Plan  pursuant to the  operation of any one of subsection
5.1,  5.2 or 5.3 is subject to the  approval  of the  Exchanges  where  required
pursuant to their policies,  and compliance with the applicable securities rules
or regulations of any other governmental authority having jurisdiction.

6.   MISCELLANEOUS

7.1  RIGHT TO EMPLOYMENT

     Neither  this Plan nor any of the  provisions  hereof shall confer upon any
Optionee any right with respect to employment or continued  employment  with the
Company or any  subsidiary of the Company or interfere in any way with the right
of the Company or any subsidiary of the Company to terminate such employment.

7.2  NECESSARY APPROVALS

     The Plan shall be effective  immediately  upon the approval of the Board of
directors of the Company,  where the Company is a non-reporting  issuer.  If the
Company is a reporting issuer whose Shares are listed on any Exchanges, then the
Plan  shall be  effective  only upon the  approval  of the  shareholders  of the
Company  given by way of an ordinary  resolution,  where such prior  approval is
required by the policies of the Exchanges.  Any Options  granted under this Plan
before  such prior  approval  shall only be  exercised  upon the receipt of such
approval,  where it is required by the policies of the Exchanges.  Disinterested
shareholder  approval  (as required by the  Exchanges)  will be obtained for any
reduction in the  exercise  price of any Option  granted  under this Plan if the
Optionee is an Insider of the Company at the time of the proposed amendment. The
obligation of the Company to sell and deliver Shares in accordance with the Plan
is subject to  compliance  with the  policies of the  Exchanges  and  applicable
securities   rules  or  regulations  of  any   governmental   authority   having
jurisdiction.  If any Shares  cannot be issued to any  Optionee  for any reason,
including,  without limitation,  the failure to comply with such policies, rules
or  regulations,  then the  obligation of the Company to issue such Shares shall
terminate  and any Option  Price paid by an  Optionee  to the  Company  shall be
immediately refunded to the Optionee by the Company.

7.3  ADMINISTRATION OF THE PLAN

     The Directors shall,  without limitation,  have full and final authority in
their  discretion,  but  subject  to the  express  provisions  of the  Plan,  to
interpret  the Plan,  to  prescribe,  amend and  rescind  rules and  regulations
relating to the Plan and to make all other  determinations  deemed  necessary or
advisable  in respect of the Plan.  Except as set forth in  subsection  5.4, the
interpretation  and  construction  of any provision of the Plan by the Directors
shall  be  final  and  conclusive.  Administration  of  the  Plan  shall  be the
responsibility  of the  appropriate  officers  of the  Company  and all costs in
respect thereof shall be paid by the Company.
<PAGE>
                                      -10-

7.4  INCOME TAXES

     As a condition of and prior to participation of the Plan any Optionee shall
on request  authorize the Company in writing to withhold  from any  remuneration
otherwise  payable to him or her any amounts required by any taxing authority to
be withheld for taxes of any kind as a consequence  of his or her  participation
in the Plan.

7.5  AMENDMENTS TO THE PLAN

     The Directors may from time to time,  subject to applicable  law and to the
prior  approval,  if required,  of the  Exchanges or any other  regulatory  body
having authority over the Company or the Plan, suspend, terminate or discontinue
the Plan at any time,  or amend or revise the terms of the Plan or of any Option
granted under the Plan and the Option Agreement relating thereto,  provided that
no such amendment, revision, suspension,  termination or discontinuance shall in
any manner adversely affect any option  previously  granted to an Optionee under
the Plan without the consent of that  Optionee.  Any  amendments  to the Plan or
options granted thereunder will be subject to the approval of the shareholders.

7.6  FORM OF NOTICE

     A notice given to the Company  shall be in writing,  signed by the Optionee
and delivered to the head business office of the Company.

7.7  NO REPRESENTATION OR WARRANTY

     The Company  makes no  representation  or warranty as to the future  market
value of any Shares issued in accordance with the provisions of the Plan.

7.8  COMPLIANCE WITH APPLICABLE LAW

     If any provision of the Plan or any Option Agreement contravenes any law or
any order,  policy,  by-law or  regulation of any  regulatory  body or Exchanges
having  authority  over the Company or the Plan,  then such  provision  shall be
deemed to be  amended  to the  extent  required  to bring  such  provision  into
compliance therewith.

7.9  NO ASSIGNMENT

     No  Optionee  may  assign  any of his or her  rights  under the Plan or any
Option granted thereunder.

7.10 RIGHTS OF OPTIONEES

     An Optionee shall have no rights whatsoever as a shareholder of the Company
in respect of any of the Unissued Option Shares (including,  without limitation,
voting  rights or any right to receive  dividends,  warrants or rights under any
rights offering).
<PAGE>
                                      -11-

7.11 CONFLICT

     In the event of any  conflict  between the  provisions  of this Plan and an
Option Agreement, the provisions of this Plan shall govern.

7.12 GOVERNING LAW

     The Plan and each  Option  Agreement  issued  pursuant to the Plan shall be
governed by the laws of the Province of British Columbia.

7.13 TIME OF ESSENCE

     Time is of the  essence  of this  Plan  and of each  Option  Agreement.  No
extension  of  time  will be  deemed  to be or to  operate  as a  waiver  of the
essentiality of time.

7.14 ENTIRE AGREEMENT

     This Plan and the Option  Agreement sets out the entire  agreement  between
the  Company  and the  Optionees  relative  to the  subject  matter  hereof  and
supersedes all prior agreements,  undertakings and understandings,  whether oral
or written.

                       -----------------------------------

<PAGE>
                                  SCHEDULE "A"

                           NORTH AMERICAN NICKEL INC.
                                STOCK OPTION PLAN

                                OPTION AGREEMENT

[Note:  If the  Option  Price is less than the  Market  Price at the time of the
grant then insert the following  legend:]  Without prior written approval of the
TSX Venture Exchange and compliance with all applicable securities  legislation,
the securities  represented  by this  agreement and any  securities  issued upon
exercise thereof may not be sold, transferred,  hypothecated or otherwise traded
on or through the facilities of the TSX Venture  Exchange or otherwise in Canada
or to or for the benefit of a Canadian  resident  until |X|,  20|X| [four months
and one day after the date of grant].

     This Option  Agreement is entered into between North  American  Nickel Inc.
("Company")  and the Optionee  named below  pursuant to the Company Stock Option
Plan (the "Plan"), a copy of which is attached hereto, and confirms that:

1.   on |X|, 20|X| (the "Grant Date");

2.   |X| (the "Optionee");

3.   was granted the option (the  "Option") to purchase  |X| Common  Shares (the
     "Option Shares") of the Company;

4.   for the price (the "Option Price") of $|X| per share;

5.   which shall be exercisable as fully Vested from the Grant Date,  unless the
     granting of this Option is to a  consultant  providing  Investor  Relations
     Activities  in which case the Option will be vested over a 12 month  period
     from the date of grant in accordance with TSX Policy;

6.   terminating on the |X|, 20|X| (the "Expiry Date");

7.   by signing this Option  Agreement,  the Optionee  acknowledges and consents
     to:

     (a)  the  disclosure  of  Personal  Information  by the  Company to the TSX
          Venture Exchange (the "Exchange") (as defined in Exchange  Appendix 6A
          - see Appendix I hereto)  pursuant to the  Exchange  Form 4G which the
          Company is required to file in connection with this Option grant; and

     (b)  the  collection,  use and  disclosure of Personal  Information  by the
          Exchange  for the  purposes  described  in Appendix 6A or as otherwise
          identified by the Exchange, from time to time;

     (Where "Personal Information" means any information about the Optionee, and
     includes the information  contained in the tables, as applicable,  found in
     Exchange Form 4G),

all on the terms and subject to the conditions set out in the Plan.
<PAGE>
     By signing  this  Option  Agreement,  the  Optionee  acknowledges  that the
Optionee  has  read  and  understands  the  Plan and  agrees  to the  terms  and
conditions of the Plan and this Option Agreement.

     IN WITNESS  WHEREOF the parties hereto have executed this Option  Agreement
as of the |X| day of |X|, 20|X|.

                                               NORTH AMERICAN NICKEL INC.
                                               Per:

-----------------------------                  ----------------------------
OPTIONEE                                       Authorized Signatory

<PAGE>
                                   Appendix I

                                                [TSX Venture Exchange Inc. logo]

                                   APPENDIX 6A
                     ACKNOWLEDGEMENT - PERSONAL INFORMATION

TSX Venture Exchange Inc. and its affiliates,  authorized  agents,  subsidiaries
and divisions,  including the TSX Venture Exchange  (collectively referred to as
"the Exchange") collect Personal Information in certain Forms that are submitted
by the individual  and/or by an Issuer or Applicant and use it for the following
purposes:

     *    to conduct background checks,
     *    to verify the Personal  Information  that has been provided about each
          individual,
     *    to consider the  suitability  of the  individual to act as an officer,
          director,  insider,  promoter,  investor  relations  provider  or,  as
          applicable, an employee or consultant, of the Issuer or Applicant,
     *    to consider the  eligibility of the Issuer or Applicant to list on the
          Exchange,
     *    to  provide  disclosure  to  market  participants  as to the  security
          holdings of directors,  officers,  other insiders and promoters of the
          Issuer, or its associates or affiliates,
     *    to conduct enforcement proceedings, and
     *    to  perform  other   investigations  as  required  by  and  to  ensure
          compliance   with  all  applicable   rules,   policies,   rulings  and
          regulations of the Exchange,  securities  legislation  and other legal
          and  regulatory  requirements  governing the conduct and protection of
          the public markets in Canada.

As part  of  this  process,  the  Exchange  also  collects  additional  Personal
Information  from  other  sources,  including  but not  limited  to,  securities
regulatory authorities in Canada or elsewhere, investigative, law enforcement or
self-regulatory organizations,  regulations services providers and each of their
subsidiaries,  affiliates,  regulators and authorized agents, to ensure that the
purposes set out above can be accomplished.

The Personal Information the Exchange collects may also be disclosed:

(a)  to the  agencies  and  organizations  in  the  preceding  paragraph,  or as
     otherwise  permitted  or required by law,  and they may use it in their own
     investigations for the purposes described above; and

(b)  on the  Exchange's  website or through  printed  materials  published by or
     pursuant to the directions of the Exchange.

The  Exchange  may from time to time use third  parties to  process  information
and/or provide other administrative  services.  In this regard, the Exchange may
share the information with such third party service providers.

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