Document:

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                                                                  EXHIBIT 10.5

March 30, 2000

Douglas R. Potter
193 Mystic Street
Arlington, MA 02474-1147

Dear Doug,

I am pleased to present our offer to you to join Anika Therapeutics, Inc. as an
employee. The terms of our offer for your employment with the Company, subject
to approval by the Compensation Committee of the Board of Directors, are
outlined below:

Position: Vice President, Finance and Chief Financial Officer

Description of Duties: You will have full, direct control, authority, and
responsibility for the implementation of the portions of the Anika Therapeutics
Strategic Plan directly related to the financial operations of the Company. You
will have shared responsibility for implementation of the Company's Information
System strategies. You will direct budgeting, audit, insurance, banking, and
legal efforts for Anika. You will be responsible for financial plans and
policies, accounting practices and procedures, and SEC compliance. You will be
responsible for investor and public relations at the Company.

Reporting to: Mel Engle, Chairman and Chief Executive Officer

Employment Date: April 1, 2000

Work Week: The standard work week is Monday through Friday.

Rate of Pay: $13,750 per month to be reviewed annually. It is understood that
paychecks will be issued on alternating Fridays.

Sign-On Bonus: You will receive a $10,000 signing bonus when you join the
Company. You agree to repay this amount if you resign from Anika within 12
months of your first day of employment.

Management Bonus Plan: The Management Bonus Plan provides for 20% of salary for
an "at Plan" performance. Bonuses are paid based upon successful accomplishment
of Company and personal performance objectives ("MBO's"). In accordance with the
Management Bonus Plan, you will be eligible for a pro rata bonus for the year
2000, payable in January 2001. The bonus payment is at the sole discretion of
Anika's Board of Directors. A copy of the 1999 Bonus Formula for Senior Team is
included in your offer package.

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Douglas R. Potter
March 30, 2000
Page 2

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. The stock option grant vests in equal installments over four years,
subject to your continued employment. The exercise price of the option will be
determined on the earliest date provided for in the Company's stock option plan,
usually the date of your hire.

Benefits: You will be eligible to participate in the Anika employee benefit
program upon completion of 30 days of active regular employment. This program
currently covers comprehensive medical and dental benefits, life and disability
insurances, 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 to the plan 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 plan documents and the
Summary Plan Descriptions.

Vacation: You will accrue three weeks of vacation during your first year of
employment and are subject to the terms for accrual and use set forth in Anika'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.

Severance in the Event of Termination:

      Termination without Cause (non-performance related): (1) Anika may
terminate your employment without cause at any time and for any reason by giving
you written notice at least thirty (30) days in advance of the date on which the
termination is to become effective. (2) If Anika terminates your employment
without "cause", 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 payment of the active employee share of premium
payments for such coverage.

      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 or 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 (7) days advance notice, including notice of the agenda of such
meeting. As used herein, the term "cause" shall mean: (1) conviction of a felony
involving the Company; (2) 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
(10) days after receiving written notice of the Company's position with respect
to such action; or (3) 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 (10) days after your receipt of written
notice requesting that you remedy such breach.

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Douglas R. Potter
March 30, 2000
Page 3

      Change in Control, Bonus, and Severance Agreement: Subject to approval by
the Compensation Committee of the Board of Directors, an agreement between you
and Anika Therapeutics, Inc. shall be executed providing terms pertaining to
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 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 Company's
Non-Disclosure and Non-Competition Agreement as an employee of Anika
Therapeutics.

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.

This offer is premised 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 your full time and
attention to your work at Anika Therapeutics, Inc. 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. Proof of eligibility for
employment will be required upon employment.

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Douglas R. Potter
March 30, 2000
Page 4

If the terms of this offer are acceptable, please indicate your acceptance by
signing both copies of this letter and the non-disclosure agreement and return
one copy of each to Claudia McNair, Director of Human Resources. I am
enthusiastic about Anika's future prospects and look forward to your leadership
and contribution to the Anika team.

Sincerely,

J. Melville Engle
Chairman and Chief Executive officer

Agreed and accepted:

/s/ Douglas R. Potter
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Douglas R. Potter
Date: 3/31/00
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Enclosures

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                                                                  EXHIBIT 10.6

                            ANIKA THERAPEUTICS, INC.
                  NON-DISCLOSURE AND NON-COMPETITION AGREEMENT
                                    EMPLOYEE

    I, Douglas R. Potter, (the "Employee"), in consideration of my employment,
the continuation of my employment, and the salary and wages to be paid to me, do
hereby agree with Anika Therapeutics, Inc., a Massachusetts corporation (the
"Company"), as follows:

    1. All documents including, but not limited to, correspondence, memoranda,
       plans, proposals, customer lists, marketing and sales plans, reports and
       drawings, formulations, designs, samples, prototypes, tools and
       equipment, and all other tangible and intangible materials whatsoever,
       that concern the Company's business and that come into my possession are
       the property of the Company and shall be used by me only in the
       performance of my duties for the Company. I will not remove from the
       Company's premises any such tangible items or copies thereof except as
       the Company permits and, upon the earlier of the termination of my
       employment or a request by the Company, any and all such items in my
       custody or possession and all copies thereof will be returned to the
       Company.

    2. For the purposes of this agreement:

       a.  "Inventions" shall include, but not be limited to, any procedures,
           systems, machines, methods, processes, uses, apparatuses,
           compositions of matter, designs, drawings, configurations, software
           and works of authorship of any kind, and any improvements to them
           which are discovered, conceived, reduced to practice, developed, made
           or produced, and shall not be limited by the meaning of "invention"
           under the laws of any country concerning patents.

       b.  "Proprietary Information" means all information and know-how, whether
           or not in writing, of a private, secret, or confidential nature
           concerning the Company's business or financial affairs, including,
           without limitation, inventions, products, processes, methods,
           techniques, formulas, compositions, compounds, projects,
           developments, plans, research data, clinical data, financial data,
           personnel data, computer programs, and customer and supplier lists.

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       c.  "Competing Products" means any products or processes of any person or
           organization other than the Company in existence or under
           development, which are substantially the same, may be substituted
           for, or applied to substantially the same end use as the products or
           processes with which I work during the time of my employment with the
           Company or about which I acquire confidential information through my
           work with the Company.

       d.  "Competing Organization" means any person or organization engaged in,
           or about to become engaged in, research or development, production,
           distribution, marketing, or selling of a Competing Product.

    3. I agree that all Proprietary Information is and shall be the exclusive
       property of the Company. I will regard and preserve as confidential all
       Proprietary Information which may be obtained by me. I will not, at any
       time, without express written authority from the Company, use for any
       unauthorized purposes, or disclose to others, either during my employment
       or thereafter, except as required by my employment with the Company, any
       Proprietary Information, unless and until such Proprietary Information
       has become public knowledge without fault by me.

    4. I agree that my obligation not to disclose or to use information,
       know-how, and records of the types set forth in paragraphs 1 and 3 above,
       and my obligation to return records and tangible property, set forth in
       paragraph 1 above, also extends to such types of information, know-how,
       records, and tangible property of customers of the Company or suppliers
       to the Company or other third parties who may have disclosed or entrusted
       the same to the Company or to me in the course of the Company's business.

    5. All Inventions, whether patentable or not, which are related to the
       present or planned business of the Company conceived or reduced to
       practice by me, either alone or with others, during the period of my
       employment with the Company or during a period of ninety (90) days after
       termination of such employment, whether or not done during my regular
       working hours, are the exclusive property of the Company.

    6. I will disclose promptly, in writing, to the Company all such
       inventions, whether patentable or not, and I agree to assign and do
       hereby assign to the Company or its nominee my entire right, title, and
       interest in and to such Inventions. Except to the extent that I may be
       authorized by the Company, I will not disclose any such Inventions to
       others without the prior written consent of the Company.

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    7. I will, at any time during or after my employment on request of the
       Company, execute specific assignments in favor of the Company or its
       nominee of my interest in any such Inventions, as well as execute all
       papers, including, without limitation, copyright applications, patent
       applications, declarations, oaths, formal assignments, assignments of
       priority rights, and powers of attorney, render all assistance, and
       perform all lawful acts the Company considers necessary or advisable for
       the protection of its rights and interests in any Invention.

    8. I have disclosed to the Company on the attached Schedule A any
       continuing obligations I have with respect to the assignment of
       Inventions to any previous employers, and I claim no previous unpatented
       Inventions as my own, except as shown on a schedule attached hereto and
       signed by me (if none, so state). I further represent that, except as I
       have disclosed in writing to the Company or Schedule A hereto, I am not
       bound by the terms of any agreement with any previous employer or other
       party to refrain from using or disclosing any trade secret or
       confidential or proprietary information in the course of my employment
       with the Company or to refrain from competing, directly or indirectly,
       with the business of such previous employer or any other party. I further
       represent that my performance of all the terms of this agreement and as
       an employee of the Company does not and will not breach any agreement to
       keep in confidence proprietary information, knowledge, or data acquired
       by me in confidence or in trust prior to my employment with the Company,
       and I will not disclose to the Company or induce the Company to use any
       confidential or proprietary information or material belonging to any
       previous employer or others.

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    9. I understand that information regarding the Company and its affiliates
       including, without limitation, Proprietary Information, is considered
       confidential to the Company and is of substantial commercial value to the
       Company. Any entrusting of such confidential information to me by the
       Company is done so in reliance upon the confidential relationship arising
       from the terms of my employment with the Company. Therefore, in
       consideration of my employment with the Company, I agree that I will not
       render services of any nature, directly or indirectly, to any Competing
       Organization in connection with any Competing Product within such
       geographic territory as the Company and such Competing Organization are
       or would be in actual competition, for a period of one year, commencing
       on the date of termination of my employment. I understand that services
       rendered to such Competing Organization may have the effect of supporting
       actual competition in various geographic areas, and may be prohibited by
       this agreement regardless of the geographic area in which such services
       are physically rendered. The Company may, in its sole discretion, elect
       to waive, in whole or in part, the obligation set forth in the previous
       sentence, such waiver to be effective only if given in writing by the
       Company.

   10. I understand that the misappropriation of Proprietary Information may be
       theft as defined by law punishable by a fine or imprisonment or both and
       could make me liable for damages or subject to an injunction in a civil
       lawsuit.

   11. The provisions of this agreement shall be severable and in the event
       that any provision hereof shall be found by any court to be
       unenforceable, in whole or in part, the remainder of this agreement shall
       nevertheless be enforceable and binding on the parties.

   12. I understand that this agreement does not constitute a contract of
       employment and does not imply that my employment will continue for any
       period of time.

   13. This agreement will be binding upon my heirs, executors, and
       administrators and will inure to the benefit of the Company and its
       successors and assigns.

   14. No delay or omission by the Company in exercising any right under this
       agreement will operate as a waiver of that or any other right. A waiver
       or consent given by the Company on any one occasion is effective only in
       that instance and will not be construed as a bar to or waiver of any
       right on any other occasion.

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   15. I expressly consent to be bound by the provisions of this agreement for
       the benefit of the Company or any subsidiary or affiliate thereof to
       whose employ I may be transferred without the necessity that this
       agreement be re-signed at the time of such transfer.

   16. I understand and agree that this agreement shall be interpreted under
       and governed by the laws of the Commonwealth of Massachusetts.

   17. The foregoing sets forth the entire agreement between the parties and
       the signatories acknowledge that no representations, written or oral,
       have been made in addition to, or in derogation of, the terms hereof.

                                        /s/ Douglas R. Potter
                                        ---------------------
                                          Douglas R. Potter

ACCEPTED BY:
    Anika Therapeutics, Inc.
    At Woburn, Massachusetts
    This 3rd day of April, 2000

FOR ANIKA THERAPEUTICS, INC.
/s/ Claudia J. McNair
---------------------
   Representative

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                            ANIKA THERAPEUTICS, INC.
                  NON-DISCLOSURE AND NON-COMPETITION AGREEMENT

                                   SCHEDULE A

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