ANIKA THERAPEUTICS INC
EX-10.2
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit 10.2</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[ANIKA THERAPEUTICS LETTERHEAD]</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June 25, 2002</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. William J. Knight</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">39 Bare Hill Road</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Boxford, MA 01921</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear Bill:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I am pleased to present our

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

offer, subject to approval by the Compensation Committee of the Board of

Directors, are outlined below:</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Position</font></u>:

Chief Financial Officer.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Description of

duties</font></u>: You will have responsibility for all the

financial activities of the Company including financial plans and policies,

accounting practices and procedures, and the Company&#146;s relationship with its

shareholders and the outside financial community.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Reporting to</font></u>:

Charles H. Sherwood, Ph.D., President and Chief Executive Officer.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employment

date</font></u>: Your anticipated start date is no later than

July 15, 2002.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Rate of pay</font></u>:

$6,923.08 per bi-weekly payroll (annualized $180,000).</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Management

bonus plan</font></u>: 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 2002 will be prorated based on the number of months of

your employment.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stock options</font></u>:

75,000 options.&#160; Options will vest over

4 years in accordance with the terms of the stock option agreement.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Benefits</font></u>:

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.</p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>





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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vacation</font></u>:

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&#146;s policies.

Presently, the policy allows the accrual of one additional day of vacation for

each year of employment up to a maximum of four weeks.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Severance in

the event of termination</font></u>:</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt 39.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Termination without cause

(non-performance related): If Anika terminates your employment without &#147;cause&#148;

(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.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt 39.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>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 on 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 &#147;cause&#148; shall mean :</p>



<p style="margin:0in 0in .0001pt 39.0pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



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  <td width="15%" valign="top" style="padding:0in 0in 0in 0in;width:15.92%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.9%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">i.</font></p>

  </td>

  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.68%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.5%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">conviction

  of a felony involving the Company,</font></p>

  </td>

 </tr>

 <tr>

  <td width="15%" valign="top" style="padding:0in 0in 0in 0in;width:15.92%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.9%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ii.</font></p>

  </td>

  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.68%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.5%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">acting in a

  manner which is materially detrimental or materially damaging to the

  Company&#146;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&#146;s position with respect to such action; or</font></p>

  </td>

 </tr>

 <tr>

  <td width="15%" valign="top" style="padding:0in 0in 0in 0in;width:15.92%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.9%;">

  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">iii.</font></p>

  </td>

  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.68%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

  <td width="78%" valign="top" style="padding:0in 0in 0in 0in;width:78.5%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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.</font></p>

  </td>

 </tr>

</table>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Change in

Control, Bonus, and Severance Agreement</font></u>: 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.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Arbitration: In the event of

any controversy or claim arising out of or relating to this letter agreement or

otherwise arising out your employment or the termination of that employment

(including, without limitation, any claims of unlawful employment

discrimination whether based 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 (&#147;AAA&#148;) 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</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>





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<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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&#146;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.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Contingency</font></u>:

This offer is contingent upon your execution of the <i><font style="font-style:italic;">Anika Non-Disclosure and Non-Competition Agreement</font></i> as an

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

background check including verification of education.</p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the terms of this offer are

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

letter and the <i><font style="font-style:italic;">Anika Non-Disclosure and

Non-Competition Agreement </font></i>and return one copy of each to me. I am

enthusiastic about Anika&#146;s future prospects and look forward to your leadership

and contribution to the Anika team.</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sincerely,</font></p>



<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



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  <td width="25%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:25.62%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Charles

  H. Sherwood</font></p>

  </td>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.38%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

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  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charles H.

  Sherwood, Ph.D.</font></p>

  </td>

 </tr>

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  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President

  and Chief Executive Officer</font></p>

  </td>

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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

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  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

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  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agreed and

  accepted:</font></p>

  </td>

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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

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  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">

  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="25%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:25.62%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ William J.

  Knight</font></p>

  </td>

  <td width="74%" valign="top" style="padding:0in 0in 0in 0in;width:74.38%;">

  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:100.0%;">

  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">William J.

  Knight</font></p>

  </td>

 </tr>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: June

  27, 2002</font></p>

  </td>

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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>

  </td>

 </tr>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Enclosures</font></p>

  </td>

 </tr>

</table>



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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>





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