Document:

Exhibit 10.1

 

[ANIKA THERAPEUTICS

LETTERHEAD]

 

 

April 2, 2002

 

 

PERSONAL

& CONFIDENTIAL

 

Mr. Edward Ross, Jr. 

26 Locke Lane

Lexington, MA  02173

 

Dear Ed:

 

This letter notifies you in writing of the termination

of your employment with Anika Therapeutics, Inc. (the “Company”).  This letter also proposes an agreement

between you and the Company.

 

Your employment will terminate effective March 22,

2002.  The Company shall pay you your

current base salary through March 22, 2002. 

In addition, the Company will pay you for all accrued but unused

vacation time through March 22, 2002, which will be based on 270.91 hours of

accrued but unused vacation time.  The

Company also will provide you with the right to continue group medical and

dental insurance coverage under the terms of the law known as “COBRA”.  The termination of other benefits will be

addressed in separate correspondence. 

For further details refer to Section 3a.

 

The payment and other terms set forth above will not

be affected by whether or not you agree to the terms set forth below.  

 

The remainder of this letter proposes an agreement

(the “Agreement”) between you and the Company. 

The purpose of this Agreement is to establish an amicable arrangement

for ending your employment relationship, to release the Company and related

persons or entities from any claims to establish a brief Consultancy Period (as

defined herein) and to permit you to receive fair and reasonable separation pay

and related benefits. 

 

If you agree to the terms of this Agreement, you

acknowledge that you are entering into this Agreement voluntarily.  It is customary in employment separation

agreements that provide for severance pay for the departing employee to release

the employer from any possible claims, even if the employer believes, as is the

case here, that no such claims exist. 

You understand that you are giving up your right to bring any and all

possible legal claims against the Company. 

Neither the Company nor you want your employment relationship to end

with a legal dispute.  By entering into

this Agreement, you understand that the Company is not admitting in any way

that it violated any legal obligation that it owed to you.  To the contrary, the Company’s willingness

to enter into this Agreement demonstrates that it is continuing to deal with

you fairly and in good faith.

 

 

With those understandings, you and the Company agree

as follows:

 

1.             Termination

 

As we have discussed, you understand that your

employment with the Company as its Vice President of Sales and Marketing and

from any and all other positions that you may hold with the Company will

terminate effective March 22, 2002 (the “Termination Date”).  You agree that up to and including March 22,

2002, you shall work diligently and responsibly in performing the duties

associated with your current position as Vice President of Sales and

Marketing.  

 

2.             Severance

Pay

 

If this Agreement becomes effective, the Company will

not assert that your employment was terminated for “cause” due to

non-performance and shall agree to provide severance pay (“Severance Pay”) to

you consisting of the continuation of your current base salary rate of

$166,049.00 per year for the six-month period plus 5-week consulting period

(see paragraph 4) beginning March 23, 2002 (the “Salary Continuation Period”),

payable on the Company’s regular bi-weekly payroll dates.  The Company will suspend the payment of

Severance Pay until such time as the Agreement becomes effective in accordance

with Section 15.  If the Agreement

becomes effective, the Company will reinstate you to the payroll and shall

provide any suspended payroll payments to you no later than the second payroll

date after this Agreement becomes effective. 

 

3.             Benefits

 

a.             Medical and Dental Benefits

 

By agreeing to this Agreement, you elect to continue

your medical and dental insurance coverage under COBRA.  Your COBRA period will commence on March 23,

2002.  Provided that you remain eligible

for COBRA continuation coverage, the Company shall continue to pay the premiums

for your group medical and dental insurance coverage on the same basis as if

you continued to be employed during the Salary Continuation period.  Thereafter, you may continue coverage at

your own expense for the remainder of the COBRA period to the extent you remain

eligible.

 

b.             Stock and Stock Option Plans

 

Nothing in this Agreement is intended to reduce or

expand your rights under the Company’s Stock Option Plan dated March 3, 1993,

as amended (the “Plan”), or the agreements you entered into pursuant to the

Plan.

 

2

 

c.             Outplacement

 

The Company shall pay up to $10,000 to Stybell Peabody

& Associates to assist you in your efforts to obtain new employment,

provided that such outplacement services are provided on or prior to October 1,

2002.

 

d.             Other Benefits

 

Your eligibility to participate in any other employee

benefit plans and programs sponsored by or made available to employees of the

Company or its affiliated or related entities ceases effective on or after your

Termination Date in accordance with applicable benefit plan terms and benefit

practices.  Your rights to benefits, if

any, are governed by the terms of those benefit plans and programs.

 

4.             Consultancy

Period

 

For the six-week period commencing on Monday, March

25, 2002 (the “Consultancy Period”), you agree that you shall perform for the

Company any requested services that are reasonably performed by someone of your

knowledge and skill level, including, but not limited to, services that will

assist the Company in the transition from your position as Vice President of

Sales and Marketing, and may include the application of any factual or

scientific knowledge you may have related to the Company’s business or products

(the “Consultancy”), as follows:

 

•                  Through

April 5, 2002, you agree that you will report to the office for no fewer than

20 hours, but no more than 40 hours as requested by the Company. 

 

•                  From

April 6, 2002 through April 26, 2002, you should not report to the office

unless directed to do so by the Company. 

At its discretion, the Company will determine the number of hours to be

worked and when those hours are to be worked, provided that such times are

reasonable and do not unreasonably interfere with your search for new

employment.  

 

You agree that during the Consultancy Period, you shall perform the

Consultancy in a responsible and diligent manner and that you will not take any

actions intended to damage the Company or its products.  

 

In the event that you sign this Agreement, the Company will pay your

regular base pay as of the Termination Date for the Consultancy Period, payable

on the Company’s regular bi-weekly payroll dates after the Effective Date of

this Agreement.  If you do not sign this

Agreement, the Company will compensate you for time actually spent by you

consulting as contemplated in this paragraph 4 of the Agreement at a rate of

$80.00 per hour, rounded to the nearest half hour.

 

3

 

5.             Tax

Treatment

 

The Company shall undertake to make deductions,

withholdings and tax reports with respect to payments and benefits under this

Agreement to the extent that it reasonably and in good faith believes that it

is required to make such deductions, withholdings and tax reports.  Payments under this Agreement shall be in

amounts net of any such deductions or withholdings.  Nothing in this Agreement shall be construed to require the

Company to make any payments to compensate you for any adverse tax effect associated

with any payments or benefits or for any deduction or withholding from any

payment or benefit.

 

6.             Release

of Claims

 

In consideration for, among other terms, the payments

and benefits described in Sections 2, 3 (c) and 4, to which you otherwise would

not be entitled, you voluntarily release and forever discharge the Company, its

affiliated and related entities, its and their respective predecessors,

successors and assigns, and each of their current and former officers,

directors, shareholders, employees, attorneys, accountants and agents in their

official and personal capacities (collectively referred to as the “Releasees”)

generally from all claims, demands, debts, damages and liabilities of every

name and nature, known or unknown, that, as of the date that you sign this

Agreement, you now have, ever had, now claim to have or ever claimed to have

had against any or all of the Releasees (“Claims”).  This release includes, without limitation, all Claims relating to

your employment by and termination of employment with the Company; all Claims of

wrongful discharge; all Claims of breach of contract; all Claims of retaliation

or discrimination under federal, state or local law (including, without

limitation, Claims of age discrimination under the Age Discrimination in

Employment Act); all Claims of defamation or other torts; all Claims of

violation of public policy; all Claims for wages, bonuses, incentive

compensation, vacation pay or any other compensation or benefits; and all

Claims for damages of any sort, including, without limitation, compensatory

damages, punitive damages and attorneys fees; provided, however, that this

release shall not affect your right to enforce this Agreement.

 

You agree that you shall not seek or accept

reinstatement with any Releasees.  You

also agree that you shall not seek damages of any nature, equitable or legal

remedies, attorney’s fees, or costs from any of the Releasees with respect to

any Claim.  As a material inducement to

the Company to enter into this Agreement, you hereby represent that you have

not heretofore assigned to any third party and you have not heretofore filed

with any agency or court any Claim released by this Agreement.

 

7.             Return

of Property

 

You will return all Company property that is in your

possession, custody or control, including, without limitation, computer

equipment, software, cellular telephones, keys and access cards, credit cards,

files and any other documents (including computerized data and any 

 

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copies made of any computerized data or software) containing

information concerning the Company, its business or customer relationships (in

the latter two cases, actual or prospective), no later than the date when this

Agreement becomes effective.

 

8.             Cooperation

 

You agree that, at any time in the future, you shall

cooperate fully with the Company as reasonably requested, consistent with your

schedule, in all regulatory matters, in the gathering of information for the

Company’s annual reports, filings and statements with the Securities and

Exchange Commission and the Nasdaq Stock Market, Inc. or exchange on which the

Company’s securities are listed, and in the defense or prosecution of any legal

claims or actions that already have been brought or that may be brought in the

future against or on behalf of the Company that related to events or

occurrences that transpired during your employment with the Company.  Your full cooperation in connection with

such regulatory matters, information gathering claims, actions or disputes

shall include, without limitation, being available to meet with representatives

of the Company to prepare for regulatory processes and counsel to prepare for

discovery or trial and to testify truthfully as a witness when reasonably

requested by the Company.  The Company will

reimburse you for any reasonable out-of-pocket expenses (which shall not be

construed to include your personal attorney’s fees) that you incur in

connection with such cooperation, provided that you provide the Company

reasonable documentation of such out-of-pocket expenses.  In addition, with the exception of any time

spent by you actually testifying as a witness, the Company shall reimburse you

at a rate of $100.00 per hour for each hour that you spend cooperating with the

Company, or acting in furtherance thereof, in accordance with this Section.

 

9.             Confidentiality

of Agreement

 

You agree to keep the existence and terms of this

Agreement in the strictest confidence and to not reveal, unless legally

compelled to do so, the existence or terms of this Agreement to any persons

except your attorney and your financial advisors, provided that they also agree

to keep such information confidential. 

You shall be considered to have breached this Agreement if any of those

individuals fails to keep such information completely confidential.  Nothing in this Section 9 shall be construed

to prevent you from disclosing such matters to the extent required by a

lawfully issued subpoena or duly issued court order; provided that you

provide the Company with advance written notice as soon as is practicable and a

reasonable opportunity to contest such subpoena or court order.  Nothing contained herein shall be deemed to

limit your rights under applicable law, including 29 U.S.C. § 626(f)(4).

 

The Company agrees to keep the existence and terms of

this Agreement in the strictest confidence and to not reveal, unless legally

compelled to do so, the existence or terms of this Agreement to any persons

except its attorney and its financial advisors, provided that they also agree to

keep such information confidential.

 

5

 

10.           Validity

of Non-Disclosure and Non-Competition Agreement 

 

You acknowledge and agree that you remain bound by the

terms of the Company’s Non-Disclosure and Non-Competition Agreement that was

executed by you on December 2, 1996.

 

11.           Non-Disparagement

 

You will refrain from making any disparaging

statements, taking any actions, or conducting yourself in any way that

adversely affects the reputation or goodwill of the Company and/or its

affiliated entities and the current and former officers, directors,

shareholders, employees and agents of any of them.  These non-disparagement obligations shall not in any way affect

your obligation to testify truthfully in any legal proceeding.  

 

The Company, as represented by the Anika management

team as of the signature date of this agreement, will refrain from making any

disparaging statements, taking any actions, or conducting itself in any way

that adversely affects your reputation or goodwill.  These non-disparagement obligations shall not in any way affect

the Company’s obligation to testify truthfully in any legal proceeding.

 

12.           Treatment

of Reference Inquiries

 

The Company agrees that any inquiries regarding your

employment will be referred to the Human Resources Department which will

respond to any such inquiries by stating the dates of your employment, the

position held by you and that your termination followed changes in management. 

 

13.           Consideration

of the Agreement

 

This Agreement is a legally binding document.  Provided that you do not revoke this

Agreement in accordance with Section 15 below, your signature will commit you

to the terms of this Agreement.  You

acknowledge that you have been advised to discuss all aspects of this Agreement

with your attorney, that you have carefully read and fully understand all of

the provisions of this Agreement and that you are voluntarily entering into

this Agreement.

 

14.           Consent

to Jurisdiction

 

You and the Company hereby consent to the jurisdiction

of the Superior Court of the Commonwealth of Massachusetts and the United

States District Court for the District of Massachusetts with respect to any

claim of violation of this Agreement. 

With respect to any such court action you (a) submit to the jurisdiction

of such courts, (b) consent to service of process, and (c) waive any other

requirement (whether imposed by statute, rule of court or otherwise) with

respect to personal jurisdiction or venue.

 

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15.           Other

Provisions

 

You acknowledge that you have been given the

opportunity to consider this Agreement for twenty-one (21) days before signing

it.  You further acknowledge that any

changes made to this Agreement since it was originally issued to you on March

22, 2002 are not material and do not restart the running of any period in which

you are statutorily permitted to review this Agreement.  If you sign this Agreement within less than

twenty-one (21) days of the date of its delivery to you, you acknowledge that

such decision was entirely voluntary and that you had the opportunity to

consider this Agreement for the entire twenty-one (21) day period.  To accept this Agreement, you must provide

the fully signed Agreement to the undersigned by the end of the twenty-one (21)

day period.  For a period of seven (7)

days from the date you sign this Agreement, you have the right to revoke this

Agreement by written notice to the undersigned.  If you do not revoke this Agreement, it shall become effective on

the eighth (8th) day after you sign it. 

This Agreement shall not become effective or enforceable until the

expiration of the seven (7) day revocation period (the “Effective Date”).

 

This Agreement constitutes the entire agreement

regarding the termination of your employment with the Company.  This Agreement supersedes any previous

agreements or understandings between us, except for any agreements under the

Company’s Stock Option Plan, as described in Section 3(b) and the

Non-Disclosure and Non-Competition Agreement described in Section 10.  In signing this Agreement, you are not

relying upon any oral promises or representations made by anyone at or on

behalf of the Company. 

 

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This Agreement will be interpreted and enforced under

the laws of the Commonwealth of Massachusetts, without regard to conflict of

law principles. In the event of any dispute, this Agreement will be construed

as a whole, will be interpreted in accordance with its fair meaning, and will

not be construed strictly for or against either you or the Company.  This Agreement is executed under seal.  Please indicate your agreement to the terms

of this Agreement by signing and returning to me a copy of this letter.  You are advised to consult with an attorney

before signing this Agreement. 

 

	

   

  	

   

  	

  Sincerely,

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  ANIKA THERAPEUTICS, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:

  	

    /s/ Douglas

  R. Potter

  
	

  Accepted and agreed to:

  	

   

  	

   

  	

  Douglas R. Potter

  
	

   

  	

   

  	

   

  	

  Chief Financial Officer

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  /s/ Edward Ross, Jr.

  	

   

  	

   

  
	

  Edward Ross, Jr.

  	

   

  	

   

  
	

  Date:  April

  9, 2002

  	

   

  	

   

  
					

 

8Exhibit 10.2

 

[ANIKA THERAPEUTICS LETTERHEAD]

 

 

June 25, 2002

 

 

Mr. William J. Knight

39 Bare Hill Road

Boxford, MA 01921

 

Dear Bill:

 

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:

 

Position:

Chief Financial Officer.

 

Description of

duties: You will have responsibility for all the

financial activities of the Company including financial plans and policies,

accounting practices and procedures, and the Company’s relationship with its

shareholders and the outside financial community.

 

Reporting to:

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

 

Employment

date: Your anticipated start date is no later than

July 15, 2002.

 

Rate of pay:

$6,923.08 per bi-weekly payroll (annualized $180,000).

 

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 2002 will be prorated based on the number of months of

your employment.

 

Stock options:

75,000 options.  Options will vest over

4 years in accordance with the terms of the stock option agreement.

 

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.

 

 

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.

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:

 

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 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 “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 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

 

2

 

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/ William J.

  Knight

  	

   

  
	

  William J.

  Knight

  
	

  Date: June

  27, 2002

  
	

   

  
	

  Enclosures

  

 

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