Document:

Exhibit 10.2

 

ANIKA THERAPEUTICS, INC.

SENIOR EXECUTIVE INCENTIVE COMPENSATION PLAN

 

1.                                       Purpose

 

This Senior Executive Incentive Compensation Plan (the
“Incentive Plan”) is intended to provide an incentive for superior work and to
motivate eligible executives of Anika Therapeutics, Inc. (the “Company”)
and its subsidiaries toward even higher achievement and business results, to
tie their goals and interests to those of the Company and its stockholders and
to enable the Company to attract and retain highly qualified executives.  The Incentive Plan is for the benefit of
Covered Executives (as defined below).

 

2.                                       Covered
Executives

 

From time to time, the Compensation Committee of the
Board of Directors of the Company (the “Compensation Committee”) may select certain
key executives (the “Covered Executives”) to be eligible to receive bonuses
hereunder.

 

3.                                       Administration

 

The Compensation Committee shall have the sole
discretion and authority to administer and interpret the Incentive Plan.

 

4.                                       Bonus
Determinations

 

(a)           A Covered Executive may be eligible
to receive a bonus payment under the Incentive Plan based upon the attainment
of performance targets that are established by the Compensation Committee and
relate to financial and operational metrics with respect to the Company or any
of its subsidiaries (the “Performance Goals”), including, but not limited to,
the following:  revenue, EBITDA and
specific strategic and development milestones.

 

(b)           Except as otherwise set forth in this
Section 4(b):  (i) any bonuses
paid to Covered Executives under the Incentive Plan shall be based upon bonus
formulas that tie such bonuses to one or more performance targets relating to
the Performance Goals, (ii) bonus formulas for Covered Executives shall be
adopted in each performance period by the Compensation Committee, and (iii) no
bonuses shall be paid to Covered Executives unless and until the Compensation
Committee makes a determination with respect to the attainment of the
performance objectives.  Notwithstanding
the foregoing, (A) the Company may increase or decrease bonuses payable
under the Incentive Plan based on achievement of individual performance goals
or pay bonuses (including, without limitation, discretionary bonuses) to
Covered Executives under the Incentive Plan based upon such other terms and
conditions as the Compensation Committee may in its sole discretion determine,
and (B) the Compensation Committee may in its sole discretion determine
not to pay any bonus regardless of the attainment of performance objectives by
a Covered Executive.

 

 

(c)           Each Covered Executive shall have a
targeted bonus opportunity for each performance period.  The maximum bonus payable to a Covered
Executive under the Plan is 150% of the Covered Executive’s bonus opportunity.

 

(d)           The payment of a bonus to a Covered
Executive with respect to a performance period shall be conditioned upon the
Covered Executive’s employment by the Company on the date that the Compensation
Committee determines that the Performance Goals have been achieved and
determines the amount of the bonus payable, if any, to such Covered Employee;
provided, however, that the Compensation Committee may make exceptions to this
requirement, in its sole discretion, including, without limitation, in the case
of a Covered Executive’s termination of employment, retirement, death or
disability.

 

5.                                       Timing
of Payment

 

The Performance Goals will be measured at the end of
each fiscal year after the Company’s financial reports have been
published.  If the Performance Goals are
met, payments will be made within 30 days thereafter, but not later than March 15.

 

6.                                       Amendment
and Termination

 

The Company reserves the right to amend or terminate
the Incentive Plan at any time in its sole discretion.

 

2Exhibit 10.3

 

FORM OF
PERFORMANCE SHARE AWARD AGREEMENT

 

UNDER THE
ANIKA THERAPEUTICS, INC.

2003 STOCK OPTION AND INCENTIVE PLAN

 

Name
of Grantee:

No. of Target
Shares:                                    
(assuming 100% attainment of the Performance Measures (as defined below))

Final
Acceptance Date:
                          
      , 20

 

Pursuant to Anika Therapeutics, Inc. 2003 Stock Option and
Incentive Plan (the “Plan”) as amended through the date hereof, Anika
Therapeutics, Inc. (the “Company”) hereby makes a Performance Share Award
(an “Award”) consisting of a number of shares of Restricted Stock to the
Grantee named above as determined in accordance with the terms of this Award
Agreement.  No shares of Restricted Stock
shall be issued unless the provisions of Paragraph 2 are satisfied.

 

1.             Acceptance
of Award.  The Grantee shall have no
rights with respect to this Award unless he or she shall have accepted this
Award prior to the close of business on the Final Acceptance Date specified
above by signing and delivering to the Company a copy of this Award Agreement.

 

2.             Issuance
of Restricted Stock.

 

(a)           The
actual number of shares of Restricted Stock to be issued to Grantee will vary
(from         % to
        % of the number of Target
Shares) depending upon the Company’s EBITDA and Revenue Annual Growth for the
fiscal year ending December 31, 20       (“Performance
Period”) as set forth on Exhibit A to this Award (“Performance
Measures”).  The Committee shall review
the Company’s audited financial statements promptly after their preparation
each year to determine the percentage of the Target Shares to be issued, if
any, based upon achievement of the Performance Measures for such Performance
Period.  Where achievement of the
Performance Measures is between two end points of the Performance Measures, the
percentage of Target Shares to be issued shall be rounded up to the next higher
category.

 

(b)           Upon
the date (“Grant Date”) on which the Committee makes a determination and
certification that the Company has achieved the Performance Measures at the
levels set forth on Exhibit A for the Performance Period, the
number of shares of Restricted Stock determined pursuant to this Paragraph 2
shall be issued and delivered to the Grantee, either via book entry or actual
stock certificates, provided that the Grantee is an employee of the Company or
a Subsidiary on such Grant Date.  The
Grantee’s name shall be entered as the stockholder of record on the books of
the Company.  Thereupon, the Grantee
shall have all the rights of a shareholder with respect to such shares,
including voting and dividend rights, subject, however, to the restrictions and
conditions specified in Paragraph 3 below.

 

 

3.             Restrictions
and Conditions.

 

(a)           Any
book entries or certificates evidencing the shares of Restricted Stock granted
herein shall bear an appropriate legend, as determined by the Administrator in
its sole discretion, to the effect that such shares are subject to restrictions
as set forth herein and in the Plan.

 

(b)           Shares
of Restricted Stock granted herein may not be sold, assigned, transferred,
pledged or otherwise encumbered or disposed of by the Grantee prior to vesting.

 

(c)           If the Grantee’s
employment with the Company and its Subsidiaries is voluntarily or
involuntarily terminated for any reason (including death) prior to vesting of
shares of Restricted Stock granted herein, any shares that have not vested
shall automatically be forfeited to the Company.

 

4.             Vesting
of Restricted Stock.  Subject to the
issuance of Restricted Stock pursuant to Paragraph 2, the restrictions and
conditions in Paragraph 3 of this Agreement shall lapse on the Vesting
Date or Dates specified in the following schedule so long as the Grantee is an
employee of the Company or a subsidiary on the relevant Vesting Date.  If a series of Vesting Dates is specified,
then the restrictions and conditions in Paragraph 3 shall lapse only with
respect to the number of shares of Restricted Stock specified as vested on such
date.

 

	
  Percentage
  of Shares

  of Restricted Stock Vested

  	
   

  	
  Vesting
  Date

  
	
   

  	
   

  	
   

  
	
  33

  	
  %

  	
  Grant Date

  
	
   

  	
   

  	
   

  
	
  66

  	
  %

  	
  First
  Anniversary of Grant Date

  
	
   

  	
   

  	
   

  
	
  100

  	
  %

  	
  Second
  Anniversary of Grant Date

  

 

Subsequent to such Vesting Date or Dates, the shares of Stock on which
all restrictions and conditions have lapsed shall no longer be deemed
Restricted Stock.  The Administrator may
at any time accelerate the vesting schedule specified in this Paragraph 4.

 

If on any Vesting Date all or some of the shares of Restricted Stock do
not vest because the conditions of Paragraph 3 are not satisfied, then such
unvested shares of Restricted Stock shall automatically and without notice
terminate, be forfeited and become null and void, and neither the Grantee nor
any of his or her successors, heirs, assigns or personal representatives will
thereafter have any further rights or interests in such forfeited shares of
Restricted Stock.

 

5.             Dividends.  Dividends on shares of Restricted Stock shall
be paid currently to the Grantee.

 

6.             Change
in Control.  Notwithstanding anything
to the contrary elsewhere herein, if a Change of Control (as defined in the
Plan) shall occur during the Performance Period, the Performance Measures shall
be deemed to have been met such that the Grantee shall be entitled to receive
100% of the Target Shares if the Grantee is employed by the Company or a
subsidiary 

 

2

 

on the date the Change of Control occurs.  Such Target Shares shall not be subject to
any risks of forfeiture.  If a Change of
Control shall occur after the Grant Date, the risks of forfeiture shall lapse
with respect to all outstanding shares of Restricted Stock.

 

7.             Incorporation
of Plan.  Notwithstanding anything
herein to the contrary, this Agreement shall be subject to and governed by all
the terms and conditions of the Plan, including the powers of the Administrator
set forth in Section 2(b) of the Plan.  Capitalized terms in this Agreement shall
have the meaning specified in the Plan, unless a different meaning is specified
herein.

 

8.             Transferability.  This Agreement is personal to the Grantee, is
non-assignable and is not transferable in any manner, by operation of law or
otherwise, other than by will or the laws of descent and distribution.

 

9.             Tax
Withholding.  The Grantee shall, not
later than the date as of which the receipt of this Award becomes a taxable
event for Federal income tax purposes, pay to the Company or make arrangements
satisfactory to the Administrator for payment of any Federal, state, and local
taxes required by law to be withheld on account of such taxable event.  The Grantee may elect to have the required
minimum tax withholding obligation satisfied, in whole or in part, by
authorizing the Company to withhold from shares of Stock to be issued.

 

10.           Miscellaneous.

 

(a)           Notice
hereunder shall be given to the Company at its principal place of business, and
shall be given to the Grantee at the address set forth below, or in either case
at such other address as one party may subsequently furnish to the other party
in writing.

 

(b)           This Agreement does not confer upon
the Grantee any rights with respect to continuation of employment by the
Company or any Subsidiary.

 

	
   

  	
  ANIKA THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  

 

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The foregoing Agreement is hereby accepted and the
terms and conditions thereof hereby agreed to by the undersigned.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  Grantee’s Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Grantee’s name and address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

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