Document:

Exhibit 10.33

 

[Anika Therapeutics, Inc. Letterhead]

 

 

February 21, 2003

 

Mr. Roger C. Stikeleather

6166 Stover’s Mill Road

Doylestown, PA 18901

 

Dear Roger:

 

I am pleased to present our

offer to you to join Anika Therapeutics, Inc. as an employee. The terms of our

offer are outlined below:

 

Position:

Vice President Sales and Marketing.

 

Description of

duties: You will have responsibility for the sales and

marketing activities of the Company including the design and direction of all

commercial and product line strategies. You will be responsible for attaining

the sales and market share objectives as defined by the Company’s annual

operating budget. You will have total responsibility for all commercialization

activities including product management, marketing services, business

development, market research, sales and sales management, national accounts,

distributor relationships, contract administration, and customer service.

 

Reporting to:

Charles H. Sherwood, Ph.D., President and Chief Executive Officer.

 

Employment

date: Your anticipated start date is no later than

March 17, 2003.

 

Rate of pay:

$7,115.39 per bi-weekly payroll (annualized $185,000).

 

Management

bonus plan: 

Target 20% of salary at plan. Bonus is payable shortly after year-end

based on Company performance and personal performance against key objectives.

In accordance with the Management Bonus Plan, your bonus for 2003 will be

prorated based on the number of months of your employment.

 

Stock options:

You will be granted an option on 75,000 shares of common stock of the Company,

subject to approval by the Compensation Committee of the Board of Directors.

 

Benefits:

You will be eligible to participate in the Anika employee benefit programs upon

commencement of employment. This program currently covers comprehensive medical

and dental benefits, life and disability insurance, supplemental disability

insurance, and a Section 125 Plan. You will be eligible to participate in our

401(k) Savings and Investment Plan at the first enrollment date following your

date of hire. Under the current terms, the 401(k) plan entitles you to

contribute up to the maximum limit established by the IRS. The Company will

match 100% of your contribution up to 5% of your salary. Your participation in

the benefit plans will be governed by and subject to the plan terms as

described in the official documents and Summary Plan Descriptions.

 

 

Roger C. Stikeleather

 

Vacation:

You will accrue three weeks of vacation during your first year of employment

and are subject to the terms of accrual and use set forth in Anika’s policies.

Relocation:

Anika will pay you a lump-sum relocation of $50,000 to be used in any manner

that you choose. You will be responsible for paying all necessary taxes.

 

Severance in

the event of termination:

 

1)              Termination

without cause (non-performance related): If Anika terminates your employment

without “cause” (as construed under Massachusetts common law for employment

contracts), Anika will continue your base salary at its then current rate for

six months, subject to your compliance with your obligations under your other

agreements with the Company and your cooperation with any other reasonable

requests by Anika for assistance during that period. In addition, in such

circumstances the Company will also pay the premiums for continuation of

medical and dental benefits under COBRA for you and your family for six months

after termination of your employment (or until the end of COBRA eligibility, if

earlier), subject to your premium payment of the active employee share of

premium payments for such coverage.

 

2)              Termination

for cause: Anika may terminate your employment at any time for cause by

delivering to you a certified copy of a resolution of the Board of Directors of

Anika finding that you committed an act of omission constituting cause

hereunder and specifying the particulars thereof in detail, adopted at a

meeting called and held for that purpose and of which you were provided not

less than seven days advance notice, including notice of the agenda of such meeting.

As used herein, the term “cause” shall mean :

i.                  conviction

of a felony involving the Company,

ii.               acting

in a manner which is materially detrimental or materially damaging to the

Company’s reputation or business operations other than actions which involve

your bad judgment or a decision which was taken in good faith, provided that

you shall have failed to remedy such action within ten days after receiving

written notice of the Company’s position with respect to such action; or

iii.            committing

any material breach of this agreement, provided that, if such breach is capable

of being remedied, you shall have failed to remedy such breach within ten days

after your receipt of written notice requesting that you remedy such breach.

 

Change in

Control, Bonus, and Severance Agreement: Subject to

the approval of the Compensation Committee of the Board of Directors, an

Agreement (attached) between you and Anika Therapeutics, Inc. shall be executed

providing terms pertaining to a Change in Control. The purpose of this

Agreement is to reinforce and encourage your continued attention and dedication

to your assigned duties without distraction in the face of potentially

disturbing circumstances arising from the possibility of a Change in Control.

 

Arbitration:

In the event of any controversy or claim arising out of or relating to this

letter agreement or otherwise arising out of your employment or the termination

of that employment (including, without limitation, any claims of unlawful

employment discrimination whether based 

 

2

 

on age or otherwise), that

controversy or claim shall, to the fullest extent permitted by law, be settled

by arbitration under the auspices of the American Arbitration Association

(“AAA”) in Boston, Massachusetts in accordance with the Employment Dispute

Resolution Rules of the AAA, including, but not limited to, the rules and

procedures applicable to the selection of arbitrators (or alternatively, in any

other forum or in any other form agreed upon by the parties). In the event that

any person or entity other than you or Anika may be a party with regard to any

such controversy or claim, such controversy or claim shall be submitted to

arbitration subject to such other person or entity’s agreement. Judgment upon

the award rendered by the arbitrator may be entered in any court having

jurisdiction thereof. This provision shall be specifically enforceable.

Notwithstanding the foregoing, this provision shall not preclude either party

from pursuing a court action for the sole purpose of obtaining a temporary

restraining order or a preliminary injunction in circumstances in which such

relief is appropriate; provided that any other relief shall be pursued through

an arbitration proceeding pursuant to this provision.

 

Contingency:

This offer is contingent upon your execution of the Anika Non-Disclosure and Non-Competition Agreement as an

employee of Anika Therapeutics. In addition, all employees are subject to a

background check including verification of education.

 

You, like everyone else at

Anika, will be an at-will employee. The terms of your employment will be

interpreted in accordance with and governed by the laws of the Commonwealth of

Massachusetts.

 

Finally, this offer is

conditioned on your representation that you are not subject to any

confidentiality or non-competition agreement or any other similar type of

restriction that would affect your ability to devote full time and attention to

your work at Anika Therapeutics, Inc. Upon commencement of your employment, you

will be required to provide evidence that you are a U.S. citizen or national, a

lawful permanent resident, or an alien authorized to work in the U.S.

 

If the terms of this offer are

acceptable, please indicate your acceptance by signing both copies of this

letter and the Anika Non-Disclosure and

Non-Competition Agreement and return one copy of each to me. I am

enthusiastic about Anika’s future prospects and look forward to your leadership

and contribution to the Anika team.

 

Sincerely,

 

	

  /s/ Charles

  H. Sherwood

  	

   

  
	

   

  
	

  Charles H.

  Sherwood, Ph.D.

  
	

  President

  and Chief Executive Officer

  

 

 

Agreed and accepted:

 

 

	

  /s/ Roger C.

  Stikeleather

  	

   

  
	

  Roger C.

  Stikeleather

  
	

  Date:                  

  

  

 

Enclosures

 

3Exhibit 10.34

 

ANIKA THERAPEUTICS, INC.

 

Form
of Change in Control, Bonus and Severance Agreement

 

 

AGREEMENT made as
of March 17, 2003 by and among Anika Therapeutics, Inc., a Massachusetts
corporation with its principal place of business in Woburn, Massachusetts (the
“Company”), and Roger C. Stikeleather, of Doylestown, Pennsylvania (the
“Executive”), an individual presently employed as the Vice President Sales and
Marketing of the Company.

 

1.             Purpose.  The Company considers it essential to the
best interests of its stockholders to foster the continuous employment of key
management personnel.  The Board of
Directors of the Company (the “Board”) recognizes, however, that, as is the
case with many publicly held corporations, the possibility of a Change in Control
(as defined in Section 2 hereof) exists and that such possibility, and the
uncertainty and questions which it may raise among management, may result in
the departure or distraction of management personnel to the detriment of the
Company and its stockholders. 
Therefore, the Board has determined that appropriate steps should be
taken to reinforce and encourage the continued attention and dedication of
members of the Company’s management, including the Executive, to their assigned
duties without distraction in the face of potentially disturbing circumstances
arising from the possibility of a Change in Control.  Nothing in this Agreement shall be construed as creating an
express or implied contract of employment and, except as otherwise agreed in
writing between the Executive and the Company, the Executive shall not have any
right to be retained in the employ of the Company.

 

2.             Change in Control.  A “Change in Control” shall mean the
occurrence of any one of the following events:

 

(a)           any “person,” as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Act”)
(other than the Company, any of its subsidiaries, any trustee, fiduciary or
other person or entity holding securities under any employee benefit plan or
trust of the Company or any of its subsidiaries), together with all
“affiliates” and “associates” (as such terms are defined in Rule 12b-2 under
the Act) of such person, shall become the “beneficial owner” (as such term is
defined in Rule 13d-3 under the Act), directly or indirectly, of securities of
the Company representing 51% or more of the combined voting power of the
Company’s then outstanding securities having the right to vote in an election
of the Company’s Board of Directors (“Voting Securities”); or

 

(b)           persons who, as of the date hereof,
constitute the Company’s Board of Directors (the “Incumbent Directors”) cease
for any reason, including, without limitation, as a result of a tender offer,
proxy contest, merger or similar transaction, to constitute at

 

1

 

Change
in Control, Bonus and Severance Agreement — Roger C. Strikeleather

 

least a majority of the Board, provided that any
person becoming a director of the Company subsequent to the date hereof whose
election or nomination for election was approved by a vote of at least a
majority of the Incumbent Directors shall, for purposes of this Agreement, be
considered an Incumbent Director; or

 

(c)           the stockholders of the Company shall
approve (A) any consolidation or merger of the Company where the shareholders
of the Company, immediately prior to the consolidation or merger, would not,
immediately after the consolidation or merger, beneficially own (as such term
is defined in Rule 13d-3 under the Act), directly or indirectly, shares
representing in the aggregate 51% of the voting shares of the corporation
issuing cash or securities in the consolidation or merger (or of its ultimate
parent corporation, if any), (B) any sale, lease, exchange or other transfer
(in one transaction or a series of transactions contemplated or arranged by any
party as a single plan) of all or substantially all of the assets of the
Company or (C) any plan or proposal for the liquidation or dissolution of the
Company.

 

Notwithstanding
the foregoing, a “Change in Control” shall not be deemed to have occurred for
purposes of the foregoing clause (a) solely as the result of an acquisition of
securities by the Company which, by reducing the number of shares of Voting
Securities outstanding, increases the proportionate voting power represented by
the Voting Securities beneficially owned by any person to 51% or more of the
combined voting power of all then outstanding Voting Securities; provided,
however, that if any person referred to in this sentence shall
thereafter become the beneficial owner of any additional shares of Voting
Securities (other than pursuant to a share split, stock dividend or similar
transaction or direct purchase from the Company), then a “Change in Control”
shall be deemed to have occurred for purposes of the foregoing clause (a).

 

3.             Terminating Event.  A “Terminating Event” shall mean any of the
events provided in this Section 3 occurring within twelve (12) months
subsequent to a Change in Control as defined in Section 2:

 

(a)           termination by the Company of the
employment of the Executive with the Company for any reason other than for
Cause or the death of the Executive. 
“Cause” shall mean, and shall be limited to, the occurrence of any one
or more of the following events:

 

(i)            a willful act of dishonesty by the
Executive with respect to any matter involving the Company;

 

(ii)           conviction of the Executive of a
crime involving moral turpitude; or

 

(iii)          the deliberate or willful failure by
the Executive (other than by reason of the Executive’s physical or mental
illness, incapacity or disability) to

 

2

 

substantially
perform the Executive’s duties with the Company and the continuation of such
failure for a period of 30 days after delivery by the Company to the Executive
of written notice specifying the scope and nature of such failure and its
intention to terminate the Executive for Cause.

 

A
Terminating Event shall not be deemed to have occurred pursuant to this
Section 3(a) solely as a result of the Executive being an employee of any
direct or indirect successor to the business or assets of the Company, rather
than continuing as an employee of the Company following a Change in Control.

 

(b)           termination by the Executive of the
Executive’s employment with the Company for Good Reason.  “Good Reason” shall mean the occurrence of
any of the following events:

 

(i)            a substantial adverse change in the
nature or scope of the Executive’s responsibilities or duties from the
responsibilities or duties exercised by the Executive immediately prior to the
Change in Control, it being understood by the parties hereto, that so long as
the Executive retains primary sales and marketing responsibilities for the
business conducted by Anika immediately prior to the Change in Control, Good
Reason shall not exist under this Section 3(b)(i); or

 

(ii)           a reduction in the Executive’s annual
base salary and/or benefits as in effect on the date hereof or as the same may
be increased from time to time except for across-the-board salary and/or
benefits reductions similarly affecting all or substantially all management
employees.

 

For purposes of
this Section 3, unless the context otherwise requires, Company shall mean the
Company or any successor thereto or to the business thereof in a transaction
involving a Change in Control.

 

4.             Special Termination Payments.  In the event a Terminating Event occurs
within twelve (12) months after a Change in Control in lieu of any payments
under the Employment Letter (as hereinafter defined),

 

(a)           the Company shall pay to the
Executive, in addition to the payment, if any, required by Section 5, an
amount equal to 100% of the Executive’s annual salary as in effect immediately
prior to the Change in Control, said amount shall be paid in one lump sum
payment no later than thirty-one (31) days following the Date of Termination
(as such term is defined in Section 9(b)); and

 

(b)           the Company shall continue to provide
health, dental, long-term disability, life insurance and other fringe benefits
to the Executive, on the same terms and

 

3

 

conditions
(including any required co­-payments) as though the Executive had remained an
active employee, for twelve (12)  months; and

 

(c)           the Company shall provide COBRA
benefits to the Executive following the end of the period referred to in
Section 4(c) above, such benefits to be determined as though the Executive’s
employment had terminated at the end of such period.

 

5.             Payment Upon Effective Date of
Change in Control.  Upon the
effective date of a Change in Control, regardless of whether a Terminating
Event has occurred, in addition to any other payment required by
Section 4, the Company shall pay the Executive an amount in cash
representing fifty percent (50%) of the Executive’s annual salary as in effect
immediately prior to the Change in Control. 
Said amount shall be paid in one lump sum payment no later than
thirty-one (31) days following the effective date of a Change in Control.

 

6.             Certain Limitations.  It is the intention of the Executive and of
the Company that no payments by the Company to or for the benefit of the
Executive under this Agreement or any other agreement or plan, if any, pursuant
to which the Executive is entitled to receive payments or benefits shall be
nondeductible to the Company by reason of the operation of Section 280G of the
Code relating to parachute payments or any like statutory or regulatory
provision.  Accordingly, and
notwithstanding any other provision of this Agreement or any such agreement or
plan, if by reason of the operation of said Section 280G or any like statutory
or regulatory provision, any such payments exceed the amount which can be
deducted by the Company, such payments shall be reduced to the maximum amount
which can be deducted by the Company. 
To the extent that payments exceeding such maximum deductible amount
have been made to or for the benefit of the Executive, such excess payments
shall be refunded to the Company with interest thereon at the applicable
Federal rate determined under Section 1274(d) of the Code, compounded annually,
or at such other rate as may be required in order that no such payments shall
be nondeductible to the Company by reason of the operation of said Section 280G
or any like statutory or regulatory provision. 
To the extent that there is more than one method of reducing the
payments to bring them within the limitations of said Section 280G or any
like statutory or regulatory provision, the Executive shall determine which
method shall be followed, provided that if the Executive fails to make such
determination within forty-five (45) days after the Company has given notice of
the need for such reduction, the Company may determine the method of such
reduction in its sole discretion.

 

7.             Term.  This Agreement shall take effect on the date
first set forth above and shall terminate upon the earliest of (a) the
termination by the Company of the employment of the Executive for Cause; (b)
the cessation of the Executive’s employment with the Company for any reason or
the resignation or termination of the Executive for any reason, in each case,
prior to a Change in Control; or (c) the resignation of the Executive after a
Change in Control for any reason other than for Good Reason.

 

8.             Withholding.  All payments made by the Company under this
Agreement shall be net of any tax or other amounts required to be withheld by
the Company under applicable law.

 

4

 

9.             Notice and Date of Termination;
Disputes; Etc.

 

(a)           Notice of Termination.  After a Change in Control and during the
term of this Agreement, any purported termination of the Executive’s employment
(other than by reason of death) shall be communicated by written Notice of
Termination from one party hereto to the other party hereto in accordance with
this Section 9.  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
the Date of Termination.  Further, a
Notice of Termination for Cause is required to include a copy of a resolution
duly adopted by the affirmative vote of not less than a majority of the entire
membership of the Board (exclusive of the Executive) at a meeting of the Board
(after reasonable notice to the Executive and an opportunity for the Executive,
accompanied by the Executive’s counsel, to be heard before the Board) finding
that, in the good faith opinion of the Board, the termination met the criteria
for Cause set forth in Section 3(a) hereof.

 

(b)           Date of Termination.  “Date of Termination,” with respect to any
purported termination of the Executive’s employment after a Change in Control
and during the term of this Agreement, shall mean the date specified in the
Notice of Termination.  In the case of a
termination by the Company other than a termination for Cause (which may be
effective immediately), the Date of Termination shall not be less than 30 days
after the Notice of Termination is given. 
In the case of a termination by the Executive, the Date of Termination
shall not be less than 15 days from the date such Notice of Termination is
given.  Notwithstanding
Section 3(a) of this Agreement, in the event that the Executive gives a
Notice of Termination to the Company, the Company may unilaterally accelerate
the Date of Termination and such acceleration shall not result in a second
Terminating Event for purposes of Section 3(a) of this Agreement.

 

(c)           No Mitigation.  The Company agrees that, if the Executive’s
employment by the Company is terminated during the term of this Agreement, the
Executive is not required to seek other employment or to attempt in any way to
reduce any amounts payable to the Executive by the Company pursuant to Sections
4 and 5 hereof.  Further, the amount of
any payment provided for in this Agreement shall not be reduced by any
compensation earned by the Executive as the result of employment by another
employer, by retirement benefits, by offset against any amount claimed to be
owed by the Executive to the Company, or otherwise.

 

(d)           Mediation of Disputes.  The parties shall endeavor in good faith to
settle within 90 days any controversy or claim arising out of or relating to
this Agreement or the breach thereof through mediation with J.A.M.S./Endispute
or similar organizations.  If the
controversy or claim is not resolved within 90 days, the parties shall be free
to pursue other legal remedies in law or equity.

 

5

 

10.           Assignment; Prior Agreements; Non-Solicitation.  Except for an assignment by the Company in
connection with a Change in Control in which the successor, if other than the
Company, shall assume and agree to perform this Agreement in writing, neither
the Company nor the Executive may make any assignment of this Agreement or any
interest herein, by operation of law or otherwise, without the prior written
consent of the other party, and without such consent any attempted transfer
shall be null and void and of no effect. 
This Agreement shall inure to the benefit of and be binding upon the
Company and the Executive, their respective successors, executors,
administrators, heirs and permitted assigns. 
In the event of the Executive’s death after a Terminating Event but
prior to the completion by the Company of all payments due him under
Sections 4 and 5 of this Agreement, the Company shall continue such
payments to the Executive’s beneficiary designated in writing to the Company
prior to his death (or to his estate, if the Executive fails to make such
designation).  This Agreement supercedes
all prior Agreements, whether written or oral with respect to the subject
matter hereof.  Notwithstanding the
foregoing that certain Non-Disclosure and Non-Competition Agreement of March
17, 2003, by and between Executive and the Company shall remain in full force
and effect in accordance with its terms.

 

Executive
covenants to the Company that during his employment with the Company and until
one (1) year from the date he is no longer employed by the Company, any
affiliate thereof or any successor thereto, he will not in any manner, on his
own behalf, or as a partner, officer, director, employee, agent or entity,
directly or indirectly, induce or attempt to influence any person serving as an
employee of the Company or any successor thereto to leave its employ or hire
any such person.

 

11.           Enforceability.  If any portion or provision of this
Agreement shall to any extent be declared illegal or unenforceable by a court
of competent jurisdiction, then the remainder of this Agreement, or the
application of such portion or provision in circumstances other than those as
to which it is so declared illegal or unenforceable, shall not be affected
thereby, and each portion and provision of this Agreement shall be valid and enforceable
to the fullest extent permitted by law.

 

12.           Waiver.  No waiver of any provision hereof shall be
effective unless made in writing and signed by the waiving party.  The failure of any party to require the
performance of any term or obligation of this Agreement, or the waiver by any
party of any breach of this Agreement, shall not prevent any subsequent
enforcement of such term or obligation or be deemed a waiver of any subsequent
breach.

 

13.           Notices.  Any notices, requests, demands, and other communications
provided for by this Agreement shall be sufficient if in writing and delivered
in person or sent by registered or certified mail, postage prepaid, to the
Executive at the last address the Executive has filed in writing with the
Company, or to the Company at its main office, attention of the Board of
Directors.

 

6

 

14.           Effect on Other Plans.  Except as provided in Section 10
hereof, nothing in this Agreement shall be construed to limit the rights of the
Executive under the Company’s benefit plans, programs or policies.

 

15.           Amendment.  This Agreement may be amended or modified
only by a written instrument signed by the Executive and by a duly authorized
representative of the Company.

 

16.           Governing Law.  This is a Massachusetts contract and shall
be construed under and be governed in all respects by the laws of the
Commonwealth of Massachusetts.

 

17.           Obligations of Successors.  In addition to any obligations imposed by
law upon any successor to the Company, the Company will use its commercially
reasonable efforts to require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of
the business or assets of the Company to expressly 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.

 

7

 

IN WITNESS
WHEREOF, this Agreement has been executed as a sealed instrument by the Company
by their duly authorized officers and by the Executive, as of the date first
above written.

 

	
   

  	
  COMPANY:

  	
   

  
	
   

  	
   

  
	
   

  	
  ANIKA THERAPEUTICS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles H. Sherwood

  	
   

  
	
   

  	
   

  	
  Charles H. Sherwood,
  Ph.D.

  
	
   

  	
   

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Roger C.
  Stikeleather

  	
   

  
	
   

  	
  Roger C. Stikeleather

  
					

 

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