Document:

*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                                                                    EXHIBIT 10.1

                                SUPPLY AGREEMENT

      THIS AGREEMENT is made effective as of Effective Date between Anika
Therapeutics, Inc., a Massachusetts corporation (the "Seller"), and Bausch &
Lomb Surgical, Inc., a Delaware corporation (the "Buyer" and together with the
Seller, the "Parties"). Unless the context otherwise requires, all references to
Buyer and Seller shall include their respective Affiliates (as defined below).

                                   BACKGROUND

      A. Seller is engaged in the business of manufacturing Products, as defined
in Section 1.16, and Buyer would like to purchase Products from Seller.

      B. Seller and Buyer were parties to a Supply Agreement dated August 1,
1994, as amended, ("1994 Supply Agreement") and a Distribution Agreement
(defined in Section 1.8) each of which are intended to be superceded by this
Agreement; and

      C. The parties hereby agree to the early termination of the 1994 Supply
Agreement and acknowledge that, subject to the terms of this Agreement, Seller
shall (i) become the exclusive supplier of Products to Buyer in the Territory,
(ii) subject to certain restrictions, be permitted to sell products containing
hyaluronic acid within the Ophthalmic Field, and (iii) be relieved of all of the
noncompetition covenants in the 1994 Supply Agreement and only be subject to the
noncompetition covenants in this Agreement.

      NOW, THEREFORE, in consideration of the mutual promises, covenants and
agreements hereinafter set forth, the parties hereto agree as follows:

1. DEFINITIONS

      The following terms shall, except where the context otherwise requires,
have the meanings set forth below:

      1.1 "Affiliate" shall mean, with respect to any Person, any other Person
controlling, controlled by or under common control with, such Person. The term
"control" of a Person shall mean beneficial ownership of securities or other
interests in such Person constituting fifty percent (50%)(or, if lower, any
applicable maximum foreign ownership percentage allowed under the laws of any
jurisdiction) or more of the Voting Power in such Person. "Beneficial Ownership"
shall be determined in compliance with Rule 13d-3 of the Securities Exchange Act
of 1934.

      1.2 "Amvisc" shall refer to the medical device meeting the specifications
described on Exhibit A attached hereto or as otherwise changed in accordance
with Section 4.5.
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*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

      1.3 "Amvisc Plus" shall refer to the medical device meeting the
specifications described on Exhibit A attached hereto or as otherwise changed in
accordance with Section 4.5.

      1.4 "Amvisc Products" shall mean Amvisc and Amvisc Plus in the form of a
clear viscous organic material used in the human eye as an aid in the surgical
implantation of intraocular lenses as a substitute for human vitreous or in
other ophthalmic applications, including, except as provided in Section 4.6, any
subsequent combinations, improvements or modifications of Amvisc or Amvisc Plus
for ophthalmic applications. Amvisc Products shall include Amvisc and Amvisc
Plus sold by Buyer under different brand names in the Territory.

      1.5 "Anika Manufactured Ophthalmic HA Product" shall mean those ophthalmic
products containing HA (defined below) where the HA is manufactured by Seller
and where such products are first commercially sold by Seller after the
Effective Date, but this definition shall exclude the Amvisc Products sold to
Buyer.

      1.6 "Current Product Specifications" shall mean the product specifications
for Amvisc and Amvisc Plus attached as Exhibit "A" to this Agreement or as
otherwise changed in accordance with Section 4.5. Seller shall have *** days
from the Effective Date to begin manufacturing Amvisc Products in accordance
with the Current Product Specifications contained in Exhibit A; prior to that
time, Seller shall continue to manufacture Amvisc Products in accordance with
the Current Product Specifications under the 1994 Supply Agreement.

      1.7 "Current Manufacturing Processes" shall mean the manufacturing
processes utilized by Seller on the Effective Date for Amvisc and Amvisc Plus
(including but not limited to, quality control/quality assurance procedures and
packaging) or as otherwise changed in accordance with Section 4.5.

      1.8 "Distribution Agreement" shall mean the Distribution Agreement dated
as of November 17, 1981, as amended, between Medchem Products, Inc. ("Medchem")
and Iolab Corporation. Seller's obligations under the Distribution Agreement
were assigned to Seller by Medchem and Iolab's obligations were assumed by Buyer
in Buyer's acquisition of Chiron Vision Corporation in December 1997.

      1.9 "Effective Date" shall mean the date the last party executed this
Agreement.

      1.10 "HA" shall mean hyaluronic acid.

      1.11 "Health Care Market" shall mean the worldwide human health care
industry, including without limitation, the medical, surgical, dental, nursing
professions and practices, as well as research and teaching relating to these
professions and practices. Any products used in and for the diagnosis,
monitoring, treatment or prevention of disease, sickness or other physical
condition shall be considered products intended for use

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SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

in the Health Care Market, provided, however, that the Health Care Market shall
exclude, for all purposes of this Agreement, products used for "cosmetic"
applications, as such term is defined under applicable laws and regulations of
the U.S Food and Drug Administration.

      1.12 ***

      1.13 "Nine Month Anniversary Date" shall mean the date that falls nine (9)
months after the Effective Date of this Agreement.

      1.14 "Non-Anika Manufactured Ophthalmic HA Product" shall mean those
ophthalmic products containing HA where the HA is manufactured by a party other
than Seller and where the products are first commercially sold anywhere in the
Territory by Seller after the Effective Date.

      1.15 "Ophthalmic Field" shall mean that part of the Health Care Market
dealing with the structure, functions, diseases and conditions of the eye.

      1.16 "Parent" shall mean a business enterprise that owns directly or
indirectly at least 50% of the capital stock of the Buyer or Seller, as the case
may be.

      1.17 "Person" means an individual, partnership, limited liability company,
business association, trust, corporation or other entity, whether de jure or
defacto.

      1.18 "Products" shall mean Amvisc, Amvisc Plus, and all other ophthalmic
HA containing products manufactured by Seller for Buyer and included as
"Products" in accordance with Section 4.5.

      1.19 "Territory" shall mean all countries and territories of the world.

      1.20 "Testing Methods" shall mean the laboratory methods used to determine
whether Products meet the Current Product Specifications.

      1.21 "Units" shall mean the single use packages of Amvisc and Amvisc Plus
that are marketed on the Effective Date or other approved sizes that may be
introduced from time to time as mutually agreed upon.

      1.22 "Voting Power" means (i) if the Person is a corporation, the right to
vote in the election of directors of the corporation in the ordinary course,
(ii) if the Person is a trust, the right to appoint trustees of the trust, (iii)
if the Person is a limited liability

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SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

company, the right to name managing members of the limited liability company and
(iv) if the Person is any other type of entity, any concepts similar to the
foregoing relating to the power to control the business and affairs of such
Person.

2. MANUFACTURE AND SALE OF PRODUCTS

      2.1 Supply. The Seller agrees to manufacture and supply all of Buyer's
requirements of Products for sale to the Buyer in the Territory for the
Ophthalmic Field on the terms and conditions hereinafter set forth.

      2.2 Purchase Obligations. Commencing January 1, 2001, and except as
otherwise provided in this Agreement, Buyer shall be obligated to purchase from
Seller all of Buyer's requirements for Amvisc Products in the Territory for the
Ophthalmic Field, provided, however, Buyer may purchase viscoelastic products
containing HA from other suppliers for any country where Seller's product has
not already received regulatory approval, provided that, Buyer shall have
notified Seller in writing of its intent to sell in each such country and shall
have advised Seller of any special regulatory requirements which became known to
Buyer in the regulatory process for Amvisc Products. Buyer shall use reasonable
commercial efforts to obtain regulatory approvals for the Amvisc Products in
such countries. Buyer shall use reasonable commercial efforts to avoid entering
into contractual supply arrangements that exceed the anticipated time for
regulatory approval in those countries with these other suppliers; however,
Buyer shall be permitted to purchase from these suppliers for the duration of
any such contractual relationship, regardless of when regulatory approval for
Sellers Product is received. Notwithstanding the above, through December 31,
2000, Buyer may continue to purchase Products from all of Buyer's current
suppliers as of the Effective Date and may, after January 1, 2001, continue to
sell existing inventory from those suppliers until such inventory is exhausted.

      2.3 Sale of HA Products by Seller. Seller shall have the nonexclusive
right to manufacture and sell products containing HA for use in any market
including within the Health Care Market; provided, however, that Seller shall
not, either directly or indirectly manufacture or sell or take any steps
designed to lead to the active manufacturing or sale, for use within the
Ophthalmic Field, of products containing HA that fall within the following
specifications: ***

      2.4 Royalty Payments. Seller shall pay Buyer a royalty of *** percent
(***%) of *** to customers other than Buyer for use in the Ophthalmic Field for
the duration of the term of this Agreement (regardless of termination, other
than by breach of Buyer, in which case no such royalty shall be payable), or for
the life of any Buyer patent relating to the Amvisc Products, whichever is
longer. In the event an Anika Manufactured Ophthalmic HA Product is commercially
sold on or before December 31, 2001, the royalty payable to Buyer shall be

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*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

*** percent (***%) through and including *** and shall decrease to *** percent
(***%) thereafter. Within *** days after the end of each calendar quarter,
Seller shall pay to Buyer the royalty payment due for such quarter in U.S.
dollars ("Royalty Payment"). For any sales made in currencies other than the
U.S. dollar, such Royalty Payment shall be converted from the currency in which
the sale was made into U.S. dollars at the exchange rate published in the Wall
Street Journal for the last business day of the calendar quarter during which
such sale occurs. Together with the delivery of each such Royalty Payment,
Seller shall deliver to Buyer a written accounting showing its computation of
royalties due under this Agreement for such quarter. Such accounting shall set
forth *** and, the exchange rate applied, if any, and the total royalties due
for the quarter in question. Buyer shall have the right, at its expense, on a
periodic basis, but no more frequently than once in any twelve (12) month
period, to appoint an independent certified public accountant to audit the sales
records of Seller for the purpose of confirming the accuracy of Seller's Royalty
Payment computation. In the event Buyer's audit is not consistent with the
accounting provided by Seller, Seller shall have thirty (30) days to dispute
Buyer's figures. If Seller does not dispute such figures, Seller shall
immediately remit any underpayment to Buyer or Buyer shall return any
overpayment to Seller. If Seller disputes Buyer's figures and the parties are
unable to resolve any discrepancies, the parties shall submit the dispute to the
process in Section 10.13.

3. ORDERS AND DELIVERY

      3.1 Forecasts. Forecasts provided hereunder shall be updated if there is a
material change in any information on which the forecast is based.

            3.1.1 Annual Forecasts. The Buyer shall furnish the Seller with a
      written general order forecast for each Product on or before each *** for
      the following calendar year, such forecast to be broken down by months
      ("Annual Forecast"). The first Annual Forecast shall be provided within
      ten (10) days after the Effective Date.

            3.1.2 Quarterly Forecasts. At least *** days in advance of each
      quarter, Buyer shall advise Seller in writing of (a) its binding forecast
      for such quarter (the "Quarterly Forecast") setting forth the expected
      order date(s), quantity on each order, the "Put-Up" Mix (as defined in
      Section 3.2)of Units and expected shipping date(s) and (b) its nonbinding
      forecast for the *** months thereafter ("the Rolling Annual Forecast").
      The Seller shall have *** days after receipt of each such Quarterly
      Forecast to object in writing that it is unable to manufacture the
      quantities specified and shall provide demonstrable evidence that the
      production cycle cannot accommodate the quantities specified. Failure to
      object shall be deemed to constitute acceptance of the Quarterly Forecast.
      If the Seller so objects to a Quarterly Forecast, the parties shall
      negotiate in good faith to resolve their differences.

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*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

            3.1.3. Purchases Against Forecasts. The Buyer shall, subject to the
      provisions of Section 10.10, be required to purchase from the Seller
      during each quarterly period not less than *** percent (***%) of the total
      number of Units of each Product (not broken down by size) contained in the
      Quarterly Forecast. If, subject to the provisions of Section 10.10, within
      *** days prior to the end of any quarterly period, Seller shall not have
      received orders from Buyer for at least *** percent (***%) of the total
      number of Units of each Product (but not broken down by size) contained in
      the applicable Quarterly Forecast, Seller shall notify Buyer of such fact.
      If, within *** days prior to the end of such quarterly period, Seller
      shall not have received orders from Buyer for delivery during such
      quarterly period of at least *** percent (***%) of the total number of
      Units of each Product (but not broken down by size) contained in the
      applicable Quarterly Forecast and Seller and Buyer shall not have reached
      a mutually acceptable agreement with respect to such shortfall, Seller may
      ship such number of Units as shall equal the difference between the number
      of Units of each Product ordered by Buyer for delivery during such
      quarterly period as of the date *** days prior to the end of the quarterly
      period and the number of Units of each Product equaling *** percent (***%)
      of Buyer's Quarterly Forecast. The Product sizes for any Product so
      shipped shall be in the same proportion as specified in the Quarterly
      Forecast. In any such event, Buyer shall be obligated to pay for such
      Units shipped by Seller but not ordered by Buyer on the same terms and
      conditions as if such Units had been ordered by Buyer on the date *** days
      prior to the end of the quarterly period. Upon *** working days notice
      prior to shipment, Seller may ship up to *** percent (***%) in additional
      Units against any order. Buyer shall be invoiced at the actual number of
      Units shipped.

      3.2 Orders. The Buyer shall issue firm, noncancelable purchase orders for
Products to the Seller from time to time, which orders shall be consistent, to
the extent practicable and subject to Section 3.1.3, with the applicable
Quarterly Forecast. The Seller agrees to fill such orders for Products submitted
by the Buyer up to the amount stated in the applicable Quarterly Forecast and to
use its *** efforts to fill all orders for Products in excess of the quantity
stated in the Quarterly Forecast. Seller shall not be required to sell in excess
of *** percent (***%) of the amounts forecasted in the most recent Quarterly
Forecast set forth in the Rolling Forecast. Any amounts exceeding *** percent
(***%) of the most recent Quarterly Forecast shall require notice to and
confirmation of Seller. Buyer shall place orders such that the scheduled
delivery date indicated in a Purchase Order (the Purchase Order Delivery Date)
is at least *** days from the date of the placement of the order, provided, that
Buyer may change the Put-Up Mix of the Units with respect to such order (but not
the total Unit quantity) at least *** days prior to the Purchase Order Delivery
Date by providing a written change order to Seller within such period (a "Change
Order"). "Put Up Mix" shall mean the Unit packaging sizes (***) within each
category of Amvisc Products. If Buyer provides Seller with a Change Order less
than *** days prior to the Purchase Order Delivery Date, Seller and Buyer shall
have first agreed upon the additional amount, if any, to be paid by Buyer to
Seller to

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THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

offset any increased incremental costs (including materials, labor and variable
overhead) incurred by Seller in order to comply with the Change Order.

      3.3 Inventory Maintenance. Commencing January 1, 2001, Seller shall use
commercially reasonable efforts to maintain, based on the number of Units
estimated in the updated Quarterly Forecasts, work in progress ("WIP") inventory
of bulk HA in an amount sufficient ***.

      3.4 Delivery and Inspection. Seller shall be responsible for delivering
the Products to a carrier specified by Buyer, F.O.B. Seller's plant. Buyer shall
have the right to inspect all Products delivered by Seller and to reject (by
batch, lot or Unit) any Products which fail to conform to the purchase order
thereof or to be in the condition warranted under this Agreement, which failure
to conform is determined not to be due to damage to the Products caused
subsequent to delivery of the Products to a carrier at the Seller's plant. The
Buyer shall notify the Seller and confirm in writing if any nonconforming
Products are rejected and shall hold the rejected Products until receipt of the
Seller's written instructions for the disposal or return to the Seller of the
rejected Products which written instruction shall be given promptly by the
Seller. The Buyer shall be entitled to receive a refund of the purchase price or
any portion thereof actually paid to the Seller for the rejected Products (plus
applicable freight). The costs of any agreed upon reworking by the Buyer of
nonconforming Products shall be borne by the Seller. Any Products not rejected
within *** days after the Seller's delivery to the Buyer shall be deemed to be
accepted by the Buyer. At Seller's request, Buyer shall provide a sample of the
Product alleged to be defective together with a copy of the records pertaining
to Buyer's testing of the Product, which records shall have been made at the
direction of Buyer's quality control group using the Testing Methods. If, after
its own analysis of the sample, which analysis shall be completed within ***
days of receipt of the sample, Seller confirms such non-conformity, Seller shall
replace such shipment at its expense. If, after its own analysis, Seller does
not confirm such non-conformity, the Parties shall agree to retest the shipment
or otherwise attempt in good faith to agree upon a settlement of the issue. In
the event that the Parties cannot resolve the issue, the Parties shall submit
the disputed Product to an independent testing laboratory, to be mutually agreed
upon by the Parties, for testing using the Testing Methods. The findings of such
laboratory shall be binding on the Parties, absent manifest error. Expenses of
such laboratory testing shall be borne by the Party adversely affected by such
findings. In the event that any such shipment or batch thereof is ultimately
agreed or found not to meet the Current Product Specifications, Seller shall
replace such shipment at *** expense, including charges incurred by Buyer for
shipping and/or storage, if applicable. If instructed by Seller, Buyer shall
return any such rejected shipment to Seller at *** expense. In the event that
any such shipment or batch thereof is ultimately agreed or found to meet the
Current Product Specifications, Buyer shall retain such shipment or

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SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

batch, and all the terms and conditions of this Agreement shall continue to
apply to such Product.

      3.5 Title and Risk of Loss. Title and ownership to the Products shall pass
to the Buyer upon delivery of the Products to a carrier F.O.B. Seller's
manufacturing plant. The Seller shall cooperate with the reasonable request of
the Buyer in processing all claims for loss or damage to the Products. The Buyer
shall be responsible for and shall pay for any and all demurrage, storage and
other charges accruing after the arrival of any shipment at the Buyer designated
destination. Except as provided in section 3.4, if the Buyer shall fail or
refuse for any reason to accept delivery of any of the Products ordered by it,
the Buyer shall pay Seller the amount of all expenses incurred by Seller in
returning the Products to the original shipping point or diverting them to
another destination as the case may be.

      3.6 On Time Delivery.

            3.6.1                  ***

            3.6.2 In the event *** consecutive quarters, then, immediately upon
      written notice to Seller, Seller shall become a nonexclusive supplier of
      Products for the remainder of the term of this Agreement and Buyer may
      immediately begin to purchase Products from a second source of supply. The
      provisions of this Section

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SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

      shall apply regardless of whether Buyer actually chooses to *** upon a
      triggering event.

      3.7 Second Source of Supply. In addition to the triggering event in
Section 3.6.2, in the event Seller fails to deliver *** percent (***%) of
ordered Products for *** business days beyond any Purchase Order Delivery Date,
Buyer shall, immediately upon written notice to Seller, have the option of
purchasing Products from a second source of supply and Seller shall
automatically become a nonexclusive supplier of Products to Buyer for the
remainder of the term of this Agreement. Buyer may, at any time after the
Effective Date, begin qualifying a second source of supply for producing the
Products. In order to assist Buyer in qualifying a second source of supply,
Seller shall, upon Buyer's written request, within *** days of receiving the
written agreement of Buyer's proposed second source of supply to confidentiality
provisions substantially similar to those contained in Section 7 of this
Agreement, deliver to Buyer copies of technical, manufacturing, and other
written information, including but not limited to process sheets, process
specifications, manuals, vendor lists, equipment information, and other writings
required in order for Buyer to qualify a second source to manufacture and
package Products according to the Current Product Specifications and Current
Manufacturing Processes. Notwithstanding the foregoing, Seller shall only be
required to deliver materials in its actual possession and shall not be required
to produce or create any additional materials. Seller shall also be required to
provide such assistance to Buyer or its designees as might be reasonably
necessary to instruct Buyer or its designees in the manufacturing technique and
procedures to manufacture Products for the validation of the first three (3)
lots of Products by the proposed second source supplier. Notwithstanding the
foregoing, Seller shall not be required to provide information listed in this
Section to Buyer unless a triggering event in either Section 3.6.2, this Section
3.7, or Section 4.5 is implicated.

      3.8 Equivalent Product. In the event Seller fails to deliver ordered
Products to Buyer for *** consecutive business days beyond any Purchase Order
Delivery Date, Seller shall supply, at no cost to Buyer, equivalent commercially
available ophthalmic HA products acceptable to Buyer within *** business days of
Buyer's request until the outstanding purchase orders are fulfilled.

4. PRICE, PAYMENT, AND SPECIFICATION CHANGES

      4.1 General. Commencing April 1, 2000, the price to the Buyer for each
Unit of an Amvisc Product throughout the term of this Agreement shall be
determined in accordance with Sections 4.2, 4.3 and 4.5 below.

      4.2 Price.

            4.2.1 Pricing Schedule. The purchase price for the current put-ups
      of Amvisc and Amvisc Plus shall be based on total Unit volume per calendar
      year

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THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

      and, subject to the provisions of Sections 4.3 and 4.5 below, shall be
      subject to the following Pricing Schedule:

                                       ***

            Prices for the first quarter in any calendar year shall be based
      upon the Annual Forecast. Thereafter, prices for each quarter of each
      calendar year shall be determined based on the cumulation of the Confirmed
      Purchase Orders, the Quarterly Forecast, and the Rolling Annual Forecast
      for the remaining months of the calendar year (together, "Volume
      Forecast"). The forecasts and orders shall be made pursuant to Sections
      3.1 and 3.2. At such time as ***, Seller shall issue a credit to Buyer
      equal to the difference between the actual price per Unit paid for the
      Products and the new per Unit purchase price, multiplied by the total
      Units purchased to date. Except as set forth in Section 4.2.2 with respect
      to guaranteed Unit volume levels, if, at the end of the calendar year, the
      Unit volumes fall short of the Volume Forecast and would justify higher
      pricing under the Pricing Schedule, Buyer shall issue a rebate to Seller
      equal to the difference between the actual price per Unit paid for the
      Products and the higher per Unit purchase price, multiplied by the total
      Units purchased at the end of the calendar year. The rebate shall be
      payable within *** days of the end of the calendar year. For purposes of
      determining Unit prices for Units shipped during the period from the
      Effective Date to December 31, 2000, the pricing set forth in *** shall
      apply; however, such pricing shall be adjusted up or down based on the
      total number of Units ordered for all of calendar year 2000.

            4.2.2 Anika Manufactured Ophthalmic HA Products and Non-Anika
      Ophthalmic Manufactured Ophthalmic HA Products. ***

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THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                                       ***

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THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

      Ophthalmic HA Product. The following example is intended for clarification
      purposes:

      Example:

      Year "n" Scenario

                                       ***

      Year "n Subsequent" Scenario

                                       ***

            4.2.3. ***

      4.3 Price Adjustments. The prices set forth in Section 4.2 shall remain in
effect for calendar year 2000. The prices shall thereafter be subject to
increase or

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THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

decrease if the Producer Price Index for Finished Goods published by the U.S.
Bureau of Labor Statistics (the "Index") increases by more than *** percent
(***%) above the 1999 ("Base Year") level. Prices shall increase or decrease by
an amount equal to ***.

      4.4 Invoice and Payment. The Seller shall issue an invoice accompanying
each shipment of Products to the Buyer, which invoice shall set forth the Unit
price in accordance with the provisions of this Section 4. The Buyer shall pay
such invoices in U.S. dollars in full within *** days after receipt of such
invoice.

      4.5 Changes to Product Specifications; Bacterial Fermented HA Product.

            4.5.1. pH Changes. On or before the Nine Month Anniversary Date,
      Seller shall be able to demonstrate to Buyer's reasonable satisfaction,
      including the production of accelerated stability data for three validated
      batches each of Amvisc and Amvisc Plus, that Seller is capable of
      manufacturing buffered Amvisc Products meeting the specifications set
      forth in Exhibit A1. Seller shall provide validation and stability data to
      Buyer for regulatory submission on or before the Nine Month Anniversary
      Date. Thereafter, once Buyer notifies Seller it has received regulatory
      approval for the Amvisc Products as specified in Exhibit A1, the
      specifications in Exhibit A1 shall be considered the Current Product
      Specifications, which may be changed in accordance with this Section 4.5.
      In the event Seller is unable, as of the later of the Nine Month
      Anniversary Date, or the date Buyer notifies Seller it has received
      regulatory approval for the Amvisc Products as specified on Exhibit A1, to
      manufacture Product for commercial sale that meets the specifications set
      forth on Exhibit A1, Buyer shall have the option, on *** days notice to
      Seller, to make this Agreement nonexclusive and, at the end of the *** day
      notice period, immediately begin purchasing Products from a second source
      of supply.

            4.5.2 Product Specification/Manufacturing Process Changes. In the
      event Buyer requests changes be made (a) to the Current Manufacturing
      Processes to the extent such changes do not unreasonably impair Seller's
      manufacturing process for other hyaluronic acid products, or (b) to the
      Current Product Specifications, Buyer and Seller shall in good faith
      discuss such requested changes and Seller shall, to the extent
      technologically feasible, accommodate Buyer's requested changes, provided
      that Buyer shall reimburse Seller for any one-time incremental costs
      associated exclusively with such changes which are agreed upon in writing
      by Seller and Buyer. In addition, the per Unit price for such Products
      shall be revised to reflect all ongoing incremental variable material
      and/or direct labor costs (and variable overhead costs) due exclusively to
      such change and agreed upon in writing by Seller and Buyer. Buyer shall be
      the owner of and take title to any machinery or equipment that were part
      of incremental one-time costs referred to above which were funded solely
      by Buyer. Buyer shall have

                                      -13-
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SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

      the right once during each calendar year (or more often in the event of a
      dispute) to have independent auditors audit Seller's one-time incremental
      and ongoing variable costs and direct labor costs. In the event of a
      dispute regarding such costs, the dispute shall be submitted to the
      dispute resolution process in Section 10.13. Seller shall not make any
      changes to or deviate from the Current Manufacturing Processes or the
      Current Product Specifications (as either may be revised from time to time
      by mutual agreement of Seller and Buyer) without Buyer's prior written
      consent. Notwithstanding anything contained in this Section 4.5, any costs
      resulting from changes to the Current Product Specifications or Current
      Manufacturing Processes which are necessary for Seller to comply with its
      warranties pursuant to Section 5.1, (other than Section 5.1(a)(i) if ***
      requests a change pursuant to this Section), or that do not relate
      exclusively to the sale of Amvisc Products to Buyer, shall be borne by the
      ***.

            4.5.3 Bacterial Fermented HA Product.

            4.5.3.1 Development and Regulatory Matters. The parties acknowledge
      that Product manufactured under the Current Product Specifications uses HA
      sourced from avian tissue. The parties further acknowledge that, in some
      markets, the customer, regardless of regulatory requirements, prefers
      products using HA sourced from bacterial fermentation. In recognition of
      this fact, upon the Effective Date, Seller shall, at *** expense, use its
      *** efforts to begin qualifying a source of bacterial-fermented raw
      material that will meet the Current Product Specifications on Exhibit A1
      and the regulatory requirements of those countries where Buyer, in its
      discretion, desires to sell bacterial fermented HA products. ***

                                      -14-
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SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

            4.5.3.2 Supply of BF Product.***

4.6. New Viscoelastic Products; Rights of First Refusal. The Parties acknowledge
that subsequent combinations, improvements, or modifications of Amvisc Products
for ophthalmic applications developed by Seller, either alone or jointly with
Buyer, shall automatically be available to Buyer and shall be subject to the
terms of this Agreement. The Parties further acknowledge that they may, on their
own, or with third parties, develop new viscoelastic products (which may or may
not be patentable) for ophthalmic applications that are not subsequent
combinations, improvements, or modifications to

                                      -15-
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SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

Amvisc Products ("New Viscoelastic Products"). This section is intended to
govern the Parties' rights to such New Viscoelastic Products.

            4.6.1 Buyer's Rights. Seller hereby grants to Buyer the right to
      first negotiate an exclusive agreement for the development and
      commercialization of any New Viscoelastic Product, which may or may not
      contain HA, conceived of or otherwise developed by Seller. Seller shall
      provide Buyer with written notice describing such New Viscoelastic Product
      in reasonable detail to permit Buyer to evaluate the opportunity. Buyer
      shall have *** days following receipt of such notice, extendable to ***
      days on written notice, to advise Seller in writing of Buyer's election to
      exercise its rights of first negotiation for the rights to develop and
      commercialize the new viscoelastic product ("Option Period"). If Buyer
      does not so notify Seller within the Option Period, or if Buyer fails for
      any reason to negotiate and execute a written arrangement within *** days
      after Buyer notifies Seller of exercise of its rights, then Seller shall
      be free to develop the New Viscoelastic Product on its own or enter into
      an agreement with any third party on terms and conditions no more
      favorable, as a whole, to such third party than the most favorable terms
      offered to Seller by Buyer. In the event Buyer either (i) decides not to
      exercise its rights of first negotiation or (ii) the parties are unable to
      reach an agreement, and (iii) Seller thereafter develops a marketable New
      Viscoelastic Product, Seller hereby grants to Buyer, to the extent
      Seller's rights are not prohibited by contractual arrangements or
      intellectual property rights of third parties, the right to first
      negotiate an exclusive arrangement for the commercialization of the New
      Viscoelastic Product. In such event, Buyer shall provide Seller with
      written notice specifying the terms and conditions for a license, sale or
      other arrangement for the commercialization of the New Viscoelastic
      Product. Buyer shall have *** days following receipt of such notice,
      extendable to *** days on written notice, to advise Seller in writing of
      Buyer's election to exercise its rights of first negotiation for the
      rights to commercialize the new viscoelastic product ("Second Option
      Period"). If Buyer does not so notify Seller within the Second Option
      Period, or if Buyer fails for any reason to negotiate a written
      arrangement within *** days after Buyer notifies Seller of exercise of its
      rights, then Seller shall be free to enter into an agreement with any
      third party on terms and conditions no more favorable, as a whole, to such
      third party than the most favorable terms offered to Seller by Buyer.

            4.6.2 Seller's Rights. To the extent not prohibited by contractual
      arrangements or intellectual property rights of third parties, Buyer
      hereby grants to Seller the right to first negotiate an exclusive
      agreement for the manufacture of any New Viscoelastic Product developed by
      Buyer or jointly developed by Buyer and a third party. Subject to any
      contractual or intellectual property rights of third parties, if at any
      time during the term of this Agreement Buyer desires to have a third party
      manufacture a New Viscoelastic Product, Buyer shall provide Seller with
      written notice, specifying the terms and conditions under which Buyer
      would

                                      -16-
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SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

      like to have the New Viscoelastic Product manufactured. Seller shall have
      *** days following receipt of such notice, extendable to *** days on
      written notice, to advise Buyer in writing of Seller's election to
      exercise its rights of first negotiation for manufacture of the New
      Viscoelastic Product ("Option Period"). If Seller does not so notify Buyer
      within the Option Period, or if Seller fails for any reason to negotiate
      and execute a supply arrangement within *** days after Seller notifies
      Buyer of exercise of its rights, then Buyer shall be free to enter into an
      agreement with any third party on terms and conditions no more favorable,
      as a whole, to such third party than the most favorable terms offered to
      Buyer by Seller.

      4.7 Manufacturing Equipment.

            4.7.1 Buyer has provided Seller with the equipment, tools and dies
      listed as "in use" or "storage" on Exhibit B (the "Equipment") for
      Seller's use in manufacturing the Products or otherwise preparing the
      Products for delivery. Seller shall have no ownership or leasehold
      interest of any nature in the Equipment or any future equipment, tools or
      dies provided by Buyer and all right, title and interest in the Equipment
      shall remain with Buyer. From time to time at the request of Buyer and in
      connection with the Equipment, Seller will execute one or more information
      statements and/or continuation statements, with respect to the ownership
      of the Equipment, pursuant to the Uniform Commercial Code in such form or
      forms as Buyer may request for filing in such public offices as Buyer
      shall determine.

            4.7.2 Subject to the last sentence of this Section 4.7.2, Buyer
      shall have the right to enter Seller's facilities in order to (i) inspect
      the Equipment, (ii) inspect and copy all records relating to the repair,
      maintenance and servicing by Seller of the Equipment and (iii) affix tags,
      stickers or other items to the Equipment indicating Buyer's status as
      owner thereof. Buyer shall be given access to such facilities, on
      reasonable notice, during normal business hours and at any other time when
      work is performed pursuant to this Agreement, not to exceed two (2) times
      in any twelve (12) month period.

            4.7.3 During the term of this Agreement, Seller shall (i) be
      responsible for any damage (normal wear and tear excepted) to the
      Equipment, (ii) keep the Equipment free of all pledges, liens,
      encumbrances, levies, attachments, security interests or other claims that
      could affect title to the Equipment or Buyer's interest therein, (iii) not
      modify or alter the Equipment in any way without the consent of Buyer,
      (iv) not remove, or cause or permit to be removed, the Equipment from the
      premises of Seller's facilities without the consent of Buyer, (v) not
      remove, conceal or deface any tags, stickers or other items affixed to the
      Equipment that indicate Buyer's status as owner thereof, (vi) operate the
      Equipment in accordance with good business practice and in compliance with
      all written and verbal instructions provided to Seller by Buyer to the
      extent not inconsistent with this

                                      -17-
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SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

      Agreement and (vii) not use the Equipment for any purpose except to
      provide Products to Buyer pursuant to this Agreement or in accordance with
      the provisions of Section 4.7.

            4.7.4 During the term of this Agreement, Seller shall, at its own
      expense, service, repair and maintain (collectively, "Service") the
      Equipment as may be necessary to keep the Equipment in good working order.
      Buyer shall have no obligation to purchase replacement Equipment or
      otherwise pay for rebuilds of the Equipment once it has, in Seller's
      determination, reached the end of its useful life.

            4.7.5 Seller shall be responsible for training its employees to
      properly operate the Equipment and shall supervise all operations thereof.
      Seller shall be responsible for all damages or injuries to persons or
      property resulting from (i) Seller's operation of the Equipment or (ii)
      Seller's failure to provide or arrange for Service of the Equipment.

            4.7.6 In the event that this Agreement is terminated for any reason,
      and as long as Buyer determines it does not need the Equipment to exercise
      its manufacturing rights under Sections 9.4 and 9.5, Seller may elect
      either: (i) to lease the Equipment for up to *** months subsequent to the
      termination or (ii) to buy the Equipment at the net book value of the
      Equipment. Buyer shall have the right to enter, upon reasonable notice and
      during regular business hours, and shall be given access to Seller's
      facilities so that Buyer may retrieve the Equipment and all records
      maintained in connection with the Equipment. Seller agrees to cooperate
      with Buyer to ensure the timely and safe return of the Equipment to Buyer
      after termination of this Agreement. Seller's obligations under this
      Section shall survive the termination of this Agreement until the
      Equipment is returned to Buyer.

            4.7.7 Seller shall have the right to use Buyer's Equipment in the
      manufacture of HA materials or non-HA materials for other purchasers
      provided that such use shall not interfere with satisfying in a timely
      manner Seller's supply obligations under this Agreement. Any costs
      associated with such use, including without limitation, machine cleaning
      (and validation thereof) and accelerated replacement cost of the
      Equipment, shall be borne by Seller. Any new equipment, tools, dies, etc.
      used in the manufacture of Products shall be purchased and owned by
      Seller. If Buyer requests a modification of Seller's equipment and the
      modification relates exclusively to the manufacture of Amvisc Products,
      *** shall bear the reasonable cost of such modification, but *** shall own
      such modification.

5. WARRANTIES AND INDEMNITIES

      5.1 Representations and Warranties.

                                      -18-
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*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

            5.1.1 Warranties by Seller. The Seller represents and warrants to
      Buyer with respect to the sale of Products as follows:

            (a) at the time of delivery to a carrier at the Seller's plant, (i)
      all Products shall conform to the Current Product Specifications and shall
      have been manufactured in accordance with the Current Manufacturing
      Processes (as either may be revised from time to time by mutual written
      agreement of Seller and Buyer), (ii) the production of such Products shall
      conform to QSR standards published by the United States Food and Drug
      Administration and the International Standards Organization Rules 9,000 et
      seq. in effect at the time of such production and applicable to the
      Products, (iii) no Product shall be "adulterated" or "misbranded" within
      the meaning of Section 5.01 of the Federal Food Drug and Cosmetic Act, as
      amended (21 U.S.C. 5351), (iv) Seller's manufacturing process and
      facilities shall conform to the applicable regulatory requirements of the
      United States, the Major Countries in the EEC (defined as the United
      Kingdom, France, Spain, Germany and Italy) and Japan with respect to
      Products sold in such countries; and (v) no HA products sold to third
      parties for use within the Ophthalmic Field shall fall within the
      following specifications: ***

            (b) the manufacture and sale of Products, including but not limited
      to the bacterial fermented HA Product, made by Seller in accordance with
      the Current Product Specifications and Current Manufacturing Processes in
      the Territory and the proper use of such Products for their intended
      purpose within the Territory does not infringe, violate or breach any
      United States patent or a patent in any foreign jurisdiction where Seller
      is manufacturing the Products (except patents as to which Seller has a
      valid license, or covenant against suit from the patent owner) trade
      secret or proprietary information based upon the manufacture, use, sale or
      disposition of such Products, except that Seller shall have no liability
      to Buyer hereunder with respect to any patent, trade secret or other
      proprietary information claim based upon (i) use, sale or disposition of
      Products where such Products would not be infringing except for changes to
      Current Product Specifications or Current Manufacturing Processes
      requested by Buyer under Section 4.5, (ii) use of Amvisc or Amvisc Plus
      other than as specified by the current Amvisc and Amvisc Plus product
      inserts, (iii) use, sale or disposition of Products by Buyer in
      combination with devices or products not purchased hereunder whereas such
      Products would not themselves be infringing, (iv) use, sale or disposition
      of Products by Buyer in or for an application or environment for which
      such Products were not approved by the FDA, (v) modifications of Products
      by Buyer, or (vi) any claims of infringement of patents, trade secrets, or
      other proprietary information in which Buyer has an interest or license.

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SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

            (c) Buyer may have its representatives inspect Seller's production
      facility and records from time to time to verify compliance with paragraph
      (a) above. Such inspections shall be made on reasonable notice to Seller,
      and shall be limited to one per year unless Buyer has delivered written
      notice to Seller that, in Buyer's reasonable opinion, a breach of
      paragraph (a) above may have occurred.

            5.1.2 Warranties by Buyer. The sale of Products, other than the
bacterial fermented HA Product, made by Seller in accordance with the Current
Product Specifications in the Territory and the proper use of such Products for
their intended purpose within the Territory does not infringe, violate or breach
any United States patent or patent in any foreign jurisdiction where Seller is
manufacturing the Products (except patents as to which Buyer has a valid
license, or covenant against suit from the patent owner) trade secret or
proprietary information based upon the manufacture, use, sale or disposition of
such Products, except that Buyer shall have no liability to Seller hereunder
with respect to any patent, trade secret or other proprietary information claim
based upon any claims of infringement of patents, trade secrets, or other
proprietary information in which Seller has an interest or license.

      5.2 Indemnification by Seller. Subject to the limitations set forth in
this Section 5, the Seller hereby indemnifies and agrees to defend and hold the
Buyer, including its officers and directors, harmless against and from any and
all damages, liabilities, costs and expenses, including without limitation
reasonable attorney's fees, arising out of or in any way connected with any
claim or claims of breach of the Seller's warranties in Section 5.1.1(b) or any
actual or alleged defect in any Product caused by the negligence, acts or
omissions of Seller. The provisions of Sections 5.1 and 5.2, state the entire
liability of the Seller with respect to infringement of patents, trade secrets
and other proprietary information by the manufacture, use, sale or disposition
of the Products.

      5.3 Indemnification by Buyer. Subject to the limitations set forth in
Section 5, the Buyer hereby indemnifies and agrees to defend and hold the
Seller, its officers and directors, harmless against and from any and all
damages, liabilities, costs and expenses, including without limitation,
reasonable attorney's fees, arising out of or in any way connected with any
claim or claims (other than claims arising as the result of a breach by Seller
of the warranties contained in Section 5.1.1 (b)), that (i) the sale or use of
any Products manufactured by Seller and used, sold or otherwise disposed of by
Buyer infringes the rights of any third party in any United States or foreign
patent, or trade secret or other proprietary information or (ii) any process
used by Seller to manufacture Products infringes rights of any third party in
any United States or foreign patent as a result of changes to the Current
Manufacturing Processes requested by Buyer pursuant to Section 4.5.

      5.4 Insurance. During the term of this Agreement, Seller shall, at its
sole cost and expense, procure and maintain comprehensive Commercial General
Liability Insurance, including coverage for products/completed operations, with
annual limits of liability of not less than *** dollars ($***) per occurrence,
***

                                      -20-
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SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

dollars ($***) general aggregate, and *** dollars ($***) products/completed
operations aggregate, or their equivalent in non-US locations. Buyer shall, at
its sole cost and expense, procure and maintain comprehensive Commercial General
Liability Insurance, including coverage for products/completed operations, with
annual limits of liability of not less than *** dollars ($***) per occurrence,
*** dollars ($***) general aggregate, and *** dollars ($***) products/completed
operations aggregate, or their equivalent in non-US locations.

      5.5 Product Recalls. If any of the Products are subjected to a recall by
any governmental agency, or in the event Buyer, after notification to and
consultation with Seller, elects to make such a recall based on Buyer's good
faith belief that the Products were not in conformity with seller's warranties,
***. However, if it is established that the Product became nonconforming as a
result of actions or omissions on the part of the Buyer, or if following a
recall at Buyer's election, Seller is able to determine that the Products were
not in fact in breach of Seller's warranties, the Buyer shall hold the Seller
harmless and shall bear all reasonable and actual out of pocket costs and
expenses in connection with such recall.

      5.6 LIMITATION. THE PROVISIONS OF THE FOREGOING WARRANTIES ARE IN LIEU OF
ANY OTHER WARRANTY, WHETHER EXPRESS OR IMPLIED, WRITTEN OR ORAL, AND SELLER
HEREBY EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING ANY IMPLIED
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. EXCEPT AS
OTHERWISE PROVIDED FOR IN THIS AGREEMENT, NO PARTY SHALL IN ANY EVENT BE LIABLE
TO THE OTHER FOR INCIDENTAL, SPECIAL OR CONSEOUENTIAL DAMAGES ARISING OUT OF THE
SALE OF THE PRODUCTS, INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS.

      5.7 Responsibility for Third Party Claims. In order to distribute between
themselves the responsibility for handling and expense of bodily injury or
property damage claims by third parties arising out of the sale, possession, or
use of the Products, the parties agree as follows:

      (a) Seller shall indemnify and hold Buyer, its officers and directors,
harmless against and from any and all damages, liabilities, costs and expenses,
including, without limitation, reasonable attorneys fees in connection with the
possession or use of a Product manufactured by Seller arising out of, based on,
or caused by (i) the failure or alleged failure of such Products to conform with
Seller's warranties contained in Section 5.1 (a) or (ii) any actual or alleged
defect in any Product manufactured by Seller.

      (b) Except as to matters for which Seller is alleged to be responsible
under Section 5.7 (a) above, Buyer shall indemnify and hold Seller, its officers
and directors harmless

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SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

against and from any and all damages, liabilities, costs and expenses, including
without limitation, reasonable attorney's fees, in connection with the sale of
Products manufactured by Seller for Buyer.

      5.8 Notice of Claims. The indemnities in Sections 5.2, 5.3 and 5.5 are
subject to the requirement that the party seeking indemnification ("Indemnitee")
shall promptly provide the other party ("Indemnitor") with written notice of
such claim for which indemnification is sought, and the Indemnitee shall provide
its reasonable cooperation, information and assistance in connection therewith.
The Indemnitor shall, after consultation with the Indemnitee, have the sole
control and authority with respect to the defense, settlement or compromise of
such claims.

      5.9 Survival. Notwithstanding anything to the contrary contained herein,
the provisions of Sections 5, 7, and 10.6 through 10.15 shall survive the
expiration or termination of this Agreement.

6. REGULATORY SUPPORT IMPROVEMENTS.

      6.1 Clinical Support; Regulatory Affairs. Buyer shall assume
responsibility for all clinical support and regulatory activities relating to
Products, and shall bear all costs incurred by it associated therewith. Nothing
contained herein is intended to require Buyer to assume responsibility for any
improvements to Seller's facility or manufacturing processes which may be
necessary to enable Seller to comply with its warranties under Section 5.1 or to
sell products containing HA to third parties.

      6.2 ICI Process Know-How. Seller has heretofore licensed certain rights to
the "ICI bacterial fermentation process" to Buyer pursuant to a separate license
agreement ("ICI Agreement"). As used herein the ICI Process shall mean the
hyaluronic acid fermentation process which was the subject of a certain
Development Agreement with ICI and MBL dated March 1, 1987 and all improvements
thereto owned by or licensed to Seller as of the Contract Date. In the event
Seller acquires any right, title or interest (including any licenses or
sublicenses from any other party) in or to any additional know-how, patents, or
improvements relating specifically to the ICI Process during the term of this
Agreement and Seller uses the ICI Process with such additional know-how, patents
or improvements in the manufacture of Amvisc Products for Buyer under this
Agreement, to the extent the ICI Agreement is still in effect, Seller shall
grant a worldwide, royalty free exclusive license to Buyer in the Ophthalmic
Field to make, have made, use and sell products utilizing such additional
know-how, patents or improvements. Buyer shall, however, not practice under such
license until termination or expiration of this Agreement or sooner upon Buyer's
exercise of its right to obtain a second source of supply under Section 2.2,
3.6.2, 3.7 or 4.5 as provided for in Section 9.4. Unless the provisions of
Section 2.2, 3.6.2, 3.7, 4.5 or 9.4 are implicated, Buyer's right to grant
sublicenses thereto shall be limited to Affiliates of Buyer.

                                      -22-
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SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

      6.3 Manufacturing Inventions. Throughout the term of this Agreement,
Seller may acquire know-how, inventions or improvements relating to processes or
methods for manufacturing hyaluronic acid or Amvisc Products other than
know-how, inventions or improvements relating to the ICI Process (the
"Manufacturing Inventions").

With respect to any Manufacturing Inventions that are used in connection with
the manufacture of Amvisc Products sold by Seller to Buyer pursuant to this
Agreement, Seller shall grant Buyer (at no cost to Buyer other than the
out-of-pocket cost of accomplishing the same) a worldwide, fully-paid,
royalty-free, non-exclusive license, with the right to sublicense, to use such
Manufacturing Inventions to make, have made, use and sell Amvisc Products,
provided that Buyer shall have no rights under such license until termination or
expiration of this Agreement or sooner upon Buyer's exercise of its right to
obtain an alternate source of supply under Section 2.2, 3.6.2, 3.7, or 4.5.
Unless the provisions of Section 2.2, 3.6.2, 3.7, 4.5 or 9.4 are implicated,
Buyer's right to grant sublicenses to the Manufacturing Inventions shall be
limited to Affiliates of Buyer.

Seller shall keep Buyer advised as to any Manufacturing Inventions within the
scope of this Section 6.3, and shall, from time to time as requested by the
Buyer, execute such documents and other instruments necessary to effectuate such
licenses.

      6.4 Product Inventions. Throughout the term of this Agreement, Seller may
acquire know-how, inventions or improvements relating to hyaluronic acid or
Amvisc Products, excluding Manufacturing Inventions and know-how, inventions or
improvements relating to the ICI Process (the "Product Inventions").

With respect to any Product Invention above that is used in connection with an
Amvisc Product sold by Seller to Buyer pursuant to this Agreement, Seller shall
grant Buyer (at no cost to Buyer other than the out-of-pocket cost of
accomplishing the same) a worldwide, fully-paid, royalty-free, exclusive
license, with the right to sublicense, to use such Product Invention to make,
have made, use and sell Amvisc Products. Buyer shall have no rights under such
license until termination of this Agreement or sooner upon Buyer's exercise of
its right to obtain an alternate source of supply under Section 2.2, 3.6.2, 3.7,
or 4.5. Unless the provisions of Sections 2.2, 3.6.2, 3.7, 4.5 or 9.4 are
implicated, Buyer's right to grant sublicenses to the Product Inventions shall
be limited to Affiliates of Buyer.

Seller shall keep Buyer advised as to any Product Inventions within the scope of
this Section 6.4, and shall, from time to time as requested by the Buyer,
execute such documents and other instruments necessary to effectuate such
licenses.

      6.5 Buyer's Inventions. In the event Buyer, during the term of this
Agreement, acquires any right, title or interest (including any licenses or
sublicenses from any other party) in or to any additional know-how, patents or
improvements relating specifically to the ICI Process or the HA manufacturing
process of Seller, which are, in either case, utilized by Seller at Buyer's
request in the manufacture of Amvisc Products, Buyer shall

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*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

grant Seller a world-wide, royalty free, non-exclusive license to make, have
made, use and sell products, utilizing such additional know-how, patents or
improvements within and outside of the Ophthalmic Field; provided, however, that
Seller's right to practice under such license in the Ophthalmic Field shall not
include the right to sell products that fall within the following
specifications.

7. CONFIDENTIALITY AND CONDUCT

      7.1 Confidentiality. The parties agree that certain information supplied
to each other during the course of this Agreement may be proprietary, secret or
confidential. All such information when marked or otherwise designated as
proprietary, secret or confidential shall, except as may be otherwise provided
for in this Agreement, be held in strictest confidence by the receiving party
for a period of two years from the termination of this Agreement and shall be
used only for purposes in connection with this Agreement; provided, however, the
foregoing restrictions shall not apply to any such information which:

            (a) is or subsequently becomes part of the public domain through no
      fault of the receiving party;

            (b) is received from a third party under no obligation of
      Confidentiality to the disclosing party;

            (c) is known by the receiving party at the time of disclosure, which
      prior knowledge can be demonstrated by a written or printed document; or

            (d) is required by law to be disclosed; or

            (e) may be disclosed pursuant to Section 10.6.

The obligations imposed above shall not limit any rights provided to Buyer
pursuant to Section 9.4 to assume responsibility for the manufacturing of the
Products or to use any such confidential information as permitted thereby or in
any license granted by Seller to Buyer or any of its Affiliates.

      7.2 Conduct. No party shall participate in or encourage any conduct or
practice that is detrimental or harmful to the good name, goodwill or reputation
of the other party and its products.

8. MARKETING AND REGULATORY PROVISIONS

      8.1 Governmental Approvals. Buyer shall have the responsibility of
securing any new regulatory approvals for Products as well as maintaining or
updating existing

                                      -24-
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*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

regulatory approvals for Products in the United States and otherwise throughout
the Territory as Buyer, in its sole discretion, deems necessary or appropriate.
Buyer shall cooperate with and keep Seller generally advised of any of its
activities in this regard. Buyer shall allow Seller to review any material
regulatory filings relating to manufacturing processes or Product specifications
prior to submission and consider any timely suggestions made by Seller with
respect thereto provided, however, that in the event of any disagreement the
decision of Buyer shall prevail. Buyer shall also use reasonable efforts to make
FDA and other regulatory filings necessary to secure approvals required in order
for Seller to implement changes to Seller's manufacturing process that improve
reliability, production or manufacturing time or costs with respect to Products
manufactured for Buyer. The reasonable, documented costs of such regulatory
filings shall be borne by *** to the extent that *** requested such changes, but
otherwise shall be borne by ***. *** shall provide detailed documentation of
such costs. *** shall have the right to appoint an independent certified
accountant to audit and verify such costs. In the event the audit is not
consistent with *** accounting of such costs, if Buyer and Seller cannot resolve
the discrepancy within *** days, the parties will resolve the dispute in
accordance with Section 10.13. All approvals for use of the Products either
inside or outside of the United States shall be owned by and be held in the name
of Buyer. *** shall be responsible for obtaining, at its expense, regulatory
approvals for Anika Manufactured Ophthalmic HA Products and Non-Anika
Manufactured Ophthalmic HA Products.

      8.2 Product Identification. All Product labels may, at Buyer's election,
identify the Seller as the manufacturer of the Product. Buyer shall not be
required to utilize Seller's name on product labeling or in connection with the
sale, marketing or distribution of the Products.

      8.3 Trademarks and Trade Names of Buyer. Buyer and/or Buyer's Parent is
the owner of (i) the U.S. registration of the trademark "Amvisc" and "Amvisc
Plus", (ii) any "Amvisc" tradename or trademark containing the word "Amvisc"
which is now registered or is hereafter registered in the Territory, and (iii)
the tradenames or trademarks listed on Exhibit C (hereinafter the "Proprietary
Marks").

            (a) Except as permitted by Section 8.2, the Buyer shall not use the
      Seller's name in connection with any business conducted by the Buyer.

            (b) The Seller acknowledges the exclusive right, title and interest
      in and to the Proprietary Marks and the goodwill thereto by Buyer and its
      Parent and/or Affiliates and agrees not to challenge or take any action in
      derogation of Buyer's rights therein.

            (c) The Seller agrees that it will not use on other products sold by
      it any mark which is likely to be similar to or confused with the
      Proprietary Marks.

                                      -25-
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*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

      8.4 Regulatory Cross Reference Rights. As to any HA or other U.S. or
foreign regulatory approvals specifically relating to Products utilizing HA
manufactured solely by Seller, Seller shall be granted, to the extent permitted
by law or regulation, a right to cross reference (without a right of access)
such regulatory approvals for products for sale to third parties, excluding
products that fall within the following specifications: ***. Buyer agrees to
execute and deliver to Seller, promptly upon Seller's request and on a country
by country basis, such acknowledgements and instruments as may be necessary to
enable Seller to cross reference such approvals as provided for above. As Seller
does not have a right of access to information contained in such approvals,
Buyer shall, upon Seller's request during the term of this Agreement, provide
Seller with a general description of the types of information contained in any
such application. Nothing contained herein shall be construed to permit Seller
to cross-reference any regulatory approvals for products that are manufactured
by Buyer or for Buyer by parties other than the Seller. Except in the case of
termination for breach by Seller under Section 9.2(b), this Section shall
survive termination or expiration of the Agreement.

9. TERM. TERMINATION AND TRANSFER OF SUPPLY OBLIGATIONS

      9.1 Term. This Agreement shall remain in effect until December 31, 2007
unless all of its provisions have been sooner terminated pursuant to any other
provisions hereof. Twelve (12) months prior to the end of the term, the parties
may, by mutual written agreement, agree to renew the Agreement for one (1)
additional term of one (1) year.

      9.2 Partial Termination. Seller's obligations to manufacture and supply
Products to the Buyer hereunder and Buyer's obligations to purchase such
Products (hereinafter the "Supply Relationship") may be terminated as follows:

            (a) by one party in the event the other substantially fails to
      perform or otherwise substantially breaches any of its obligations under
      this Agreement by giving notice of its intent to terminate and stating the
      grounds therefor. The party receiving the notice shall, subject to the
      provisions of Section 10.13, have sixty (60) days from the date of receipt
      thereof to cure the failure or breach. In the event such breach is cured,
      the notice shall be of no effect. In the event it is not cured, the
      Agreement shall, without further action, terminate at the end of such
      sixty (60) day period, provided, however, if the failure to perform or
      other breach is due to circumstances referred to in Section 10.10 and such
      party is making all reasonable efforts to perform or cure such breach as
      provided in such Section 10.10, this Section 9.2(a) shall not apply unless
      or until the failure to perform or other breach shall have lasted
      continuously for ninety (90) days from the initial receipt of notice of
      breach.

                                      -26-
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*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

            (b) By one party in the event (i) the other party shall at any time
      seek appointment of a receiver, trustee, custodian, fiscal agent or
      similar officer for such party or its assets or make a general assignment
      for the benefit of creditors, (ii) is adjudicated a bankrupt or insolvent,
      or (iii) if a petition in bankruptcy, or any reorganization shall be
      commenced by, against or in respect of such other party seeking (A) to
      have an order for relief entered with respect to such party or (B)
      reorganization, arrangement, adjustment, winding-up, liquidation,
      dissolution, or other relief with respect to such party or its debts and
      shall remain undismissed for more than sixty (60) days.

            (c) As provided for in Section 9.4 below.

      9.3 Effect of Termination. Termination of this Agreement for any reason
shall not affect rights and obligations of the parties accrued through the
effective date of termination, including without limitation indemnification
provisions relating to Products manufactured and sold to Buyer hereunder,
payments for Products shipped by Seller which have not been paid for by Buyer,
and Seller's obligations pursuant to Sections 2.4, 9.4, 9.5, and 9.7.

      9.4 Transfer of Supply Obligations. Upon expiration of the term, or upon
such earlier termination of the Agreement as provided for in Section 9.2, the
manufacturing process and responsibility for manufacturing for all, but not less
than all, Products shall be transferred to Buyer in its entirety. Buyer may
thereafter undertake such manufacturing itself or under contract with a third
party. Upon such transfer of manufacturing responsibility to Buyer, all usable
raw materials purchased for use in manufacturing the Products for Buyer for the
succeeding six (6) month period shall be transferred to Buyer at Seller's cost
thereof. Usable work-in-process and saleable finished goods shall be purchased
by Buyer at the applicable Unit price therefore, with work-in-process to be
prorated based on the stage of production. As used herein, "saleable" shall mean
finished goods, including but not limited to packaging, artwork, and other
materials, which meet Current Product Specifications (as may be revised from
time to time by mutual agreement of Buyer and Seller) and which have a remaining
shelf life of at least fifteen (15) months. In addition, Seller shall use
reasonable commercial efforts to assist Buyer in securing a continued supply of
HA at the same cost such HA is obtained by Seller until such time as Buyer is
able to obtain another source. Nothing herein shall be construed to limit any
other remedies which may be available to Buyer under the terms of this
Agreement. Buyer shall have the right to have independent auditors audit
Seller's books and records with respect to the foregoing provisions.

      9.5 Duties Upon Transfer of Manufacturing Responsibilities. In order to
facilitate an orderly transition with respect to the transfer of manufacturing
responsibility to the Buyer, as provided for above, Seller shall fully cooperate
in the transfer of manufacturing equipment (FOB Seller's plant) and know-how to
the Buyer. Seller shall also make available to Buyer all know-how and technical
information then in Seller's possession or at its free disposal relating to the
manufacture of the Products and shall

                                      -27-
<PAGE>

*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

provide reasonable assistance to Buyer in the establishment of a manufacturing
facility. All information transferred pursuant to this Section 9.5 shall be
subject to the provisions of Section 7 of this Agreement; provided, however,
that Buyer may provide such information to third party manufacturers that
execute confidentiality agreements containing substantially similar terms as
contained in Section 7. Costs of relocation of equipment and installation shall
be the responsibility of the ***. Costs for travel and time required by Seller's
personnel to assist in the transfer and the establishment of a manufacturing
facility shall be borne by *** until such time as the transfer has been
successfully completed. In order to have been successfully completed, Buyer,
with the assistance of Seller, shall have produced three successive lots of
products meeting the then-Current Product Specifications. After such period,
Buyer shall reimburse Seller for reasonable costs incurred by Seller's personnel
reasonably required for such transfer. Upon the transfer of manufacturing
responsibilities Buyer shall have the right to use such know-how, technical
information and equipment for the manufacture of the Products without
restrictions as to use. In the event the transfer of manufacturing results from
the failure of Seller to supply, the limitations in Sections 6.2, 6.3 and 6.4 on
Buyer's rights to sublicense certain inventions etc. shall no longer apply.

      9.6 Limitation of Liability. Upon termination of this Agreement for any
reason whatsoever, except (i) by reason of Section 9.2(a), neither party shall
have any obligation to the other for compensation or damages of any kind, other
than the obligations set forth in this Agreement, and each party waives any
rights which it may have been granted by statute or otherwise which are not
granted by this Agreement.. Furthermore, any claims for compensation or damages
shall be subject to Section 5.6.

10. MISCELLANEOUS

      10.1 Payments. In the event either Buyer or Seller shall fail to make any
payment required hereunder in a timely manner, such party shall pay one percent
(1%) per month interest on any unpaid balance which is not disputed in good
faith, provided that such interest obligation shall not limit any other remedies
which may be available to seller or Buyer, as the case may be, under the terms
of this Agreement.

      10.2 Status of Parties. The relationship of the parties under this
Agreement shall be and at all times remain one of independent contractors.
Neither party is an employee, agent or legal representative of the other and
neither party shall have any authority to assume or create obligations on the
other's behalf with respect to the Products or otherwise.

      10.3 Assignment by Buyer. Buyer shall not transfer or assign this
Agreement or the rights (including licenses) granted or to be granted hereunder
in whole or in part without the prior written consent of Seller, except that:

            (a) Buyer may grant sublicenses under the licenses granted to it to
      the extent permitted by sections 6.3, 6.4 and 6.5, and

                                      -28-
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*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

            (b) Buyer may assign this Agreement and such rights to any Affiliate
      of Buyer, or in connection with the sale of that part of its business
      relating to the sale of the Products provided that in no event shall any
      such assignment release Buyer from its responsibilities under this
      Agreement unless the assignee has agreed in writing to assume all the
      obligations of Buyer hereunder.

      10.4 Assignment by Seller. Seller shall not transfer or assign this
Agreement or the rights (including licenses) granted or to be granted hereunder,
in whole or in part without the prior written consent of Buyer, except that:

            (a) Seller may grant sublicenses under the licenses granted to it to
      the extent permitted by Section 6.6, and

            (b) may assign this Agreement and such rights (i) to any of its
      Affiliates or in connection with the sale of substantially all of its
      business relating to the sale of the Products; provided that in no event
      shall any such assignment release Seller from its responsibilities under
      this Agreement unless the assignee has agreed in writing to assume all the
      obligations of Seller hereunder, or (ii) to a lender as collateral
      securing the performance by Seller of its obligations to such lender,
      provided, however, that in no event shall any such assignment under
      subparagraph (ii) relieve Seller of liability for its responsibilities
      under this Agreement;

      10.5 Registration. In the event that this Agreement is required to be
registered with any governmental authority (other than the Securities and
Exchange Commission), the Buyer shall cause such registration to be made and
shall bear any expense or tax payable in respect thereof.

      10.6 Publicity and Disclosure. Except as required by law, any securities
exchange, automated quotation system of a registered securities association, the
NASD or other public company reporting obligation, neither Party shall issue any
press releases or make any other public announcement-concerning-this Agreement
or the subject matter hereof without the prior written consent of the other
Party The party making any such announcement shall give the other party an
opportunity to review and comment upon the text and form of the announcement
before it is made.. Notwithstanding the foregoing, Buyer acknowledges that
Seller will be required to file this Agreement with the Securities and Exchange
Commission. Seller shall not use the name of Buyer or any of its Affiliates for
advertising or promotional claims without the prior written consent of Buyer.

      10.7 Representations. Each of the parties hereto agrees (i) that no
representation or promise not expressly contained in this Agreement has been
made by the other party hereto or by any of its agents, employees,
representatives or attorneys; (ii) that this Agreement is not being entered into
on the basis of, or in reliance on, any promise or representation, expressed or
implied, covering the subject matter hereof, other than those expressly set
forth in this Agreement; and (iii) that each party has had the

                                      -2-
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*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

opportunity to be represented by counsel of its own choice in this matter,
including the negotiations which preceded the execution of this Agreement.

      10.8 Entire Agreement. This instrument constitutes the entire agreement
between Seller and the Buyer concerning the supply of the Products from and
after the Effective Date. Except as provided in Section 1.6, with respect to
Products sold from and after the Effective Date, this Agreement supersedes the
1994 Supply Agreement and the Distribution Agreement in their entirety; however,
the 1994 Supply Agreement governs with respect to Products sold prior to the
Effective Date. This Agreement may not be amended, altered, or changed except by
a written agreement signed by the parties hereto.

      10.9 Waivers. No delay or omission on the part of either party to this
Agreement in requiring performance by the other party hereunder, or in
exercising any right hereunder, shall operate as a waiver of any provision
hereof or of any right or rights hereunder; and the waiver or omission or delay
in requiring performance or exercising any right hereunder an one occasion shall
not be construed as a bar to or waiver of such performance or right, or of any
right or remedy under this Agreement, on any future occasion.

      10.10 Force Majeure. In the event that any party is prevented from
performing, or is unable to perform, any of its obligations under this Agreement
due to any act of God, fire, casualty, flood, war, strike, lock out, failure of
public utilities, injunction or any act, exercise, assertion or requirement of
governmental authority, epidemic, destruction of production facilities,
insurrection, inability to procure materials, labor, equipment, transportation
or energy sufficient to meet manufacturing needs, or any other cause beyond the
reasonable control of the party invoking this provision, and if such party shall
have used its best efforts to avoid such occurrence and minimize its duration
and has given prompt written notice to the other parties, then the affected
party's performance shall be excused and the time for performance shall except
as otherwise provided for in this Agreement, be extended for the period of delay
or inability to perform due to such occurrence.

      10.11 Notification. Any notice required under this Agreement shall be
sufficient if sent by registered or certified mail postage and charges prepaid,
return receipt requested, or by hand delivery including overnight delivery
Service to the following addresses or such address hereinafter specified in
writing:

If to Seller:     Anika Therapeutics, Inc.
                  236 West Cummings Park
                  Woburn, MA 01807
                  Ann: President

With a copy to:   Goodwin, Procter & Hoar LLP

                                      -30-
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*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                  Exchange Place
                  Boston, MA 02109
                  Attn: H. David Henken, P.C.

If to Buyer:      Bausch & Lomb Surgical, Inc.
                  555 West Arrow Highway
                  Claremont, CA 91711
                  Attn: President

With a copy to:   Bausch & Lomb Incorporated
                  One Bausch & Lomb Place
                  Rochester, NY 14604
                  Attn: Senior Vice President and
                        General Counsel

      10.12 Governing Law; Severability. With regard to any claim or controversy
initiated by Buyer related to this Agreement or any breach thereof, this
Agreement shall be governed by the internal laws of the Commonwealth of
Massachusetts (without regard to conflict of laws principles), and with regard
to any claim or controversy initiated by Seller related to this Agreement or any
breach thereof, this Agreement shall be governed by the internal laws of the
State of New York (without regard to conflict of laws provisions). Any claim or
controversy arising out of or related to this Agreement or any breach thereof
shall be submitted to United States District Court, District of Massachusetts if
such claim or controversy is initiated by Buyer and to United States District
Court, Western District of New York if such claim or controversy is initiated by
Seller, and the Parties hereby consent to the jurisdiction and venue of such
courts. The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability at any other provision of this
Agreement, and each other provision of the Agreement shall be severable and
enforceable to the fullest extent permitted by applicable law.

      10.13 Dispute Resolution Process. Any dispute between the Parties will be
referred to the Chief Executive Officers of Buyer and Seller (or their
designees) for good faith resolution, for a period of ninety (90) days. If the
Chief Executive Officers (or their designees) are able to resolve the dispute,
the resolution shall be set forth in a written instrument signed by each of
them. If such dispute is not resolved by the end of such ninety (90) day period,
the Parties shall be free to pursue any legal or equitable remedy available to
them. Notwithstanding the above, nothing herein shall prevent either party from
seeking injunctive relief to prevent the unauthorized use or disclosure of
Confidential Information.

      10.14 Captions. The captions and section headings set forth in this
Agreement are for convenience only and shall not be used in any way to construe
or interpret this Agreement.

                                      -31-
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*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

      10.15 References. Unless otherwise expressly provided herein, all
references herein to sections and paragraphs shall be deemed to refer to
sections and paragraphs of this Agreement.

All exhibits referred to herein are attached hereto and by this reference made a
part hereof.

      IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
by their respective authorized representatives as of the day and year above
written.

ANIKA THERAPEUTICS, INC.                BAUSCH & LOMB SURGICAL, INC.

By: /s/ J. Melville Engle               By: /s/ Michael J. Nicoletta
   --------------------------------        -------------------------------------
Name:  J. Melville Engle                Name:  Michael J. Nicoletta
Title: Chairman, President and CEO      Title: VP Global Operations

Signature Date: 7/25/00                 Signature Date: 7/22/00

                                      -32-
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SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                                    EXHIBIT A

                      CURRENT AMVISC PRODUCT SPECIFICATIONS

                                       ***

                                      -33-
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SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                                       ***

                                      -34-
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SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                                       ***

                                      -35-
<PAGE>

*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                                    EXHIBIT A

                   CURRENT AMVISC PLUS PRODUCT SPECIFICATIONS

                                       ***

                                      -36-
<PAGE>

*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                                       ***

                                      -37-
<PAGE>

*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                                       ***

                                      -38-
<PAGE>

*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                                   EXHIBIT A1

                      CURRENT AMVISC PRODUCT SPECIFICATIONS

                           (Revised per Section 4.5.1)

                                       ***

<PAGE>

*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                                       ***
<PAGE>

*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                                       ***
<PAGE>

*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                                   EXHIBIT A1

                   CURRENT AMVISC PLUS PRODUCT SPECIFICATIONS
                           (Revised per Section 4.5.1)

                                       ***
<PAGE>

*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                                       ***
<PAGE>

*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                                       ***

<PAGE>

*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                                    Exhibit B

                                    Equipment
<PAGE>

*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                           [List of Equipment Omitted]
<PAGE>

*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                                    Exhibit C

                            Trademarks and Tradenames

DomiVisc

DomiVisc Phaco

Storz - Sodico Hyaluranato

Storz - Sodico Hyaluranato Faco*** CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND HAS BEEN FILED SEPARATELY WITH
THE COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED
WITH ASTERISKS.

                                                                    Exhibit 10.2

                    TERMINATION AGREEMENT AND MUTUAL RELEASE

      This Termination Agreement and Mutual Release ("Termination Agreement") is
made by and between ZIMMER, INC., a Delaware corporation having its principal
place of business at 345 East Main Street, Warsaw, Indiana 46581-0708 ("Zimmer")
and ANIKA THERAPEUTICS, INC., a Massachusetts corporation having its principal
place of business at 236 West Cummings Park, Woburn, Massachusetts 01801
("Anika") (sometimes collectively referred to as the "Parties") on the last date
executed by both Parties (the "Termination Effective Date").

                                    Recitals

      1. Zimmer and Anika entered into an Exclusive Distribution Agreement dated
November 7, 1997, as amended by a First Amendment thereto dated June 1, 1998,
and a Second Amendment thereto dated June 3, 1999 and incorporating certain
additional letters dated September 30, 1998, May 3, 1999, May 20, 1999 and
October 20, 1999 (the Exclusive Distribution Agreement, as amended, is
hereinafter referred to as the "Distribution Agreement").

      2. Pursuant to the Distribution Agreement, Zimmer agreed to purchase a
hyaluronic acid product (the "Product") and received the exclusive right to
distribute the Product in the Territory, as more fully described in the
Distribution Agreement.

      3. Notwithstanding anything in the Distribution Agreement to the contrary,
the Parties now wish an early termination of the Distribution Agreement as of
the Termination Effective Date in accordance with the terms hereof.

      NOW, THEREFORE, in consideration of the mutual promises, covenants and
agreements contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties agree as
follows:

                                    Agreement

      1. Disclaimer of Liability. By entering into this Termination Agreement,
except as specifically provided herein, the Parties do not admit to, and
specifically disclaim any liability to each other arising out of, concerning or
relating, directly or indirectly, to (i) the Distribution Agreement, (ii) the
negotiation, formation or termination of the Distribution Agreement, (iii) the
negotiation or formation of this Termination Agreement, or (iv) the Product.

      2. One-time Payment. Except as expressly provided in this Termination
Agreement, Zimmer shall pay Anika the gross sum of *** Dollars ($***) within ten
(10) days after the execution of this Termination Agreement in complete
satisfaction of any and all financial obligations of Zimmer to Anika of any type
now existing, arising out of, concerning or relating, directly or indirectly, to
(i) the Distribution Agreement, (ii) the negotiation, formation or termination
of the Distribution Agreement, (iii) the negotiation or formation of this
Termination Agreement, or (iv) the Product.

      3. Orthovisc Materials. Zimmer shall deliver, transfer, convey and assign
to Anika, within ten (10) days of the Termination Effective Date all such
rights, title and interest as it may have

                                      -1-
<PAGE>

in and to the materials described on Exhibit A attached hereto (and subject to
the terms thereof), in all forms in which they exist, including but not limited
to, electronic format, hard copy, inventory and associated files required for
reproduction. Zimmer hereby grants to Anika the perpetual exclusive royalty-free
right to use such materials, unless a more limited grant is specified on Exhibit
A. Zimmer represents and warrants that such materials comprise substantially all
of the materials it has developed or produced expressly for the sale, marketing,
promotion and/or reimbursement of the Product and to which it has any right,
title or interest ("Orthovisc Materials"). Through December 31, 2000, upon
request from Anika, Zimmer shall take reasonable steps to do, execute,
acknowledge and deliver or cause to be done, executed, acknowledged and
delivered every further act, deed, conveyance, transfer and assurance necessary
to deliver such Orthovisc Materials and Zimmer's rights, title and interest
thereto. Through December 31, 2000, Zimmer hereby agrees to deliver any
additional Orthovisc Materials not listed on Exhibit A to Anika immediately
after such additional Orthovisc Materials are discovered by Zimmer, and hereby
transfers, conveys and assigns to Anika Zimmer's rights, title and interest to
such materials. Furthermore, Zimmer shall retain no right, title or interest in
the Orthovisc Materials unless otherwise specified on Exhibit A. Anika
acknowledges that the Orthovisc Materials are provided in "AS IS" condition,
with all faults, and without any express or implied warranties or
representations of any kind.

      4. Regulatory Materials. Within ten (10) days of the Termination Effective
Date, Zimmer shall deliver to Anika (i) all materials, in all forms in which
they exist, relating to any regulatory and reimbursement approvals and
authorizations of the Product obtained by or on behalf of Zimmer or its
affiliates, including but not limited to any and all correspondence regarding
reimbursement approvals obtained by or on behalf of Zimmer or its affiliates, as
well as any files relating thereto, within its control and (ii) copies of all
such materials to which it has access (together, "Regulatory Materials"). To the
fullest extent possible under applicable laws, Zimmer hereby grants, transfers,
assigns and conveys all of Zimmer's right, title and interest in and to the
Regulatory Materials to Anika. In the event the Regulatory Materials are not
transferable, Zimmer hereby grants to Anika the perpetual exclusive royalty-free
right to use such Regulatory Materials. Through December 31, 2000, Zimmer hereby
agrees to deliver any Regulatory Materials not delivered upon execution of this
Termination Agreement to Anika immediately after such Regulatory Materials are
discovered by Zimmer, and grants Anika all of Zimmer's rights, title and
interest in and to such materials. Upon request from Anika, through December 31,
2000, Zimmer shall take reasonable steps to do, execute, acknowledge and deliver
or cause to be done, executed, acknowledged and delivered every further act,
deed, conveyance, transfer and assurance necessary to deliver such Regulatory
Materials and Zimmer's rights to use the Regulatory Materials.

      5. Mutual Release. Except as expressly provided in this Termination
Agreement, the Parties, for and on behalf of themselves and each of their
respective future, current and/or former officers, directors, shareholders,
representatives, principals, agents, employees, trustees, partners, general
partners, limited partners, co-venturers, parents, subsidiaries, affiliates,
predecessors, successors, assigns, beneficiaries, heirs, executors,
administrators, insurers, attorneys and all persons acting by, through, under,
in concert with or on behalf of any of them hereby irrevocably and
unconditionally release and hereby completely and fully remise, release, acquit
and forever discharge each other, each of their respective future, current
and/or former officers, directors, shareholders, representatives, principals,
agents, employees, trustees, partners, general partners, limited partners,
co-venturers, parents, subsidiaries, affiliates, predecessors, successors,
assigns, beneficiaries, heirs, executors, administrators, insurers, attorneys
and all persons acting by, through, under, or in concert

                                      -2-
<PAGE>

with any of them, from all charges, complaints, claims, demands, liabilities,
obligations, actions, and causes of action of any kind or nature (including for
attorneys' fees, interest, expenses and costs actually incurred), whether at
law, in equity, or by statute, liquidated or unliquidated, known or unknown,
suspected or unsuspected, reasonably discoverable or not, present, fixed or
contingent, arising out of, concerning or relating, directly or indirectly, to
(i) the Distribution Agreement, (ii) the negotiation, formation or termination
of the Distribution Agreement, (iii) the negotiation or formation of this
Termination Agreement or (iv) the Product, which exist as of the Termination
Effective Date or may arise hereafter and which could be asserted in any forum,
including without limitation administrative, arbitral or judicial. Without
limiting the foregoing, the parties expressly acknowledge and agree that this
release shall encompass and include claims for fraud and fraudulent inducement.

      6. Termination of Distribution Agreement. The Distribution Agreement shall
be terminated upon the Termination Effective Date. Upon the Termination
Effective Date, neither Party shall have any further rights or obligations under
the Distribution Agreement except as provided in Sections 7 and 8 hereof.
Termination of the Distribution Agreement shall not affect the rights and
obligations of the parties pursuant to this Termination Agreement.

      7. Representations, Warranties, Obligations, Undertakings, Covenants and
Agreements Surviving Termination. Certain specified representations, warranties,
obligations, undertakings, covenants and agreements set forth in the
Distribution Agreement shall survive the termination thereof. Such
representations, warranties, obligations, undertakings, covenants and agreements
are incorporated into this Termination Agreement, and are expressly limited to,
Sections 8(h), 10, 12, 14, 15(a)(ii), 15(c)(i), 15(c)(ii), 15(c)(iii), 16(a)(i),
17(g) 17(h), 18, 20 and Annex A of the Distribution Agreement, subject to the
provisions of this Section 7 below:

            (a) Licenses for Intellectual Property. The licenses granted to
      Zimmer under Sections 15(a)(ii) and 16(a)(i) of the Distribution Agreement
      shall become nonexclusive as of the Termination Effective Date, and shall
      terminate altogether on December 31, 2000.

            (b) Governing Law and Dispute Resolution. The provisions of Section
      20 of the Distribution Agreement shall be expressly limited in application
      to disputes, controversies, or claims arising out of (i) the surviving
      provisions of the Distribution Agreement enumerated in the first paragraph
      of this Section 7 or (ii) an alleged breach of this Termination Agreement,
      which the Parties hereby agree shall be governed by Section 20 thereof,
      and shall have no other force or effect.

            (c) Existing Inventory. Zimmer's right to dispose of the Product
      pursuant to Section 17(h) of the Distribution Agreement shall terminate on
      December 31, 2000. Prior to December 31, 2000, Zimmer may sell its
      remaining Product inventory (including Product to which it holds title but
      stores in Anika's refrigerators) in its ordinary course of business. The
      parties hereby acknowledge that only sales consistent with past practices
      (excluding any wholesale brokers) will be considered in the ordinary
      course. Notwithstanding the foregoing, in no event shall Zimmer be
      entitled to any selling price adjustments under the Distribution Agreement
      (including but not limited to Section 7(b) thereof) for any Product
      previously purchased by Zimmer, whether previously or hereafter resold by
      Zimmer and regardless of the prices of such resale. Consistent with the
      foregoing, the provisions adjusting the

                                      -3-
<PAGE>

      purchase price of the Product pursuant to Section 7 of the Distribution
      Agreement are hereby terminated and have no further force or effect.
      Zimmer shall also continue to receive, process, ship, distribute, invoice,
      service and collect all orders (and returns) for the Product in the
      Territory consistent with its past practices. Zimmer shall also provide a
      list of its existing customers of the Product to Anika or Anika's
      designees. On or before January 31, 2001, Zimmer shall destroy its entire
      remaining inventory. With respect to any Product purchased by Zimmer and
      stored in Anika's refrigerators, Zimmer gives Anika the express right and
      obligation to destroy all such Product and shall be entitled to rely on
      Anika's representations that such Product has been destroyed on or before
      January 31, 2001.

            (d) Indemnification. Sections 18(a)(i), (a)(ii), (b)(i) and (b)(ii)
      of the Distribution Agreement shall be expressly limited in application to
      the representations, warranties, obligations, undertakings, covenants and
      agreements that survive pursuant to this Termination Agreement. Except as
      otherwise expressly provided in this Termination Agreement, neither party
      shall in any event be liable to the other for incidental, special or
      consequential damages arising out of this Agreement, including but not
      limited to loss of profits. Furthermore, Zimmer shall indemnify, defend
      and hold harmless Anika, its present and former Affiliates, directors,
      officers, shareholders, agents, employees, and representatives, and their
      successors, all affiliated companies, heirs, administrators, and assigns,
      and all persons acting by, through, under, or in concert with any of them,
      from any employment, severance and other social employment obligations and
      responsibilities of Zimmer for any of Zimmer's employees, consultants,
      agents or representatives.

      8. Definitions and Abbreviations. Section 26 of the Distribution Agreement
defines particular words and phrases, some of which are incorporated into the
representations, warranties, obligations, undertakings, covenants and agreements
set forth in this Termination Agreement which survive the termination of the
Distribution Agreement. Such representations, warranties, obligations,
undertakings, covenants and agreements shall be construed and interpreted in
accordance with the definitions contained in Section 26 of the Distribution
Agreement; provided, however, Section 26 thereof shall have no force and effect
except as specifically provided in this Termination Agreement.

      9. Successors and Assigns. This Termination Agreement shall bind the
Parties and their successors and assigns.

      10. Severability. The Parties intend that if a court should declare or
determine any provision of this Termination Agreement to be illegal or invalid,
the validity of the remaining parts, terms, or provisions shall not be affected
thereby. The Parties intend that a court shall deem any illegal or invalid part,
term, or provision not to be a part of this Termination Agreement.

      11. Entire Agreement. Except to the extent set forth herein, this
Termination Agreement sets forth the entire agreement between the Parties, and
fully supersedes any and all prior written or oral negotiations, commitments and
writings between the Parties pertaining to the subject matter hereof. No
promises, representations, understandings, warranties and agreements have been
made by any of the parties hereto except as referred to herein; and all
inducements to the making of this Agreement relied upon by either party hereto
have been expressed herein. No change or modification of this Agreement shall be
valid unless the same is in writing and signed by the parties

                                      -4-
<PAGE>

or their successors or assigns. No waiver of any of the provisions of this
Agreement shall be valid unless in writing and signed by the party against whom
it is sought to be enforced.

      12. No Reliance. Each party hereby represents to the other that it has
adequate information regarding all matters encompassed by this Termination
Agreement to make an informed and knowledgeable decision regarding the decision
to enter into this Termination Agreement, and that it has independently and
without reliance upon the other party made its own analysis and decision to
enter into this Termination Agreement. Further, each party acknowledges and
hereby verifies that the other party has not made any representations or
warranties in connection with this Termination Agreement, whether express or
implied, of any kind or character, except as expressly set forth herein.

      13. Advice of Counsel. Each party to this Termination Agreement
acknowledges that it has had the benefit of advice of competent legal counsel
with respect to its decision to enter into this Termination Agreement.

                                  [END OF TEXT]

                                      -5-
<PAGE>

      IN WITNESS WHEREOF, the Parties, by their duly authorized officers, have
executed this Termination Agreement as of the dates indicated.

                              ZIMMER, INC.

                              By:   /s/ James T. Crines
                                    --------------------------------------------
                                    Name: James T. Crines
                                    Title: Vice President

                              Date: 11/10/00

                              ANIKA THERAPEUTICS, INC.

                              By:   /s/ J. Melville Engle
                                    --------------------------------------------

                                    Name: J. Melville Engle
                                    Title: Chairman, President & CEO

                              Date: 11/10/00

                                      -6-
<PAGE>

                                    EXHIBIT A

                               ORTHOVISC MATERIALS

--------------------------------------------------------------------------------
MARKETING
--------------------------------------------------------------------------------
Master Sales Aid
--------------------------------------------------------------------------------
Patient Brochure and Holders
--------------------------------------------------------------------------------
Injection Technique Sales Aid
--------------------------------------------------------------------------------
Tent Card
--------------------------------------------------------------------------------
Product Monograph/Design Rationale (25 page & 50 page) *
--------------------------------------------------------------------------------
Patient Video
--------------------------------------------------------------------------------
Surgeon Video
--------------------------------------------------------------------------------
Surgeon Video Production in French, German, Italian
--------------------------------------------------------------------------------
Pocket Profiler
--------------------------------------------------------------------------------
Script Pads *
--------------------------------------------------------------------------------
Journal Reprints/Whitepapers
--------------------------------------------------------------------------------
Wade: Acute Local Reactions after Intraarticular Hylan for Osteoarthritis
--------------------------------------------------------------------------------
Peyron: Intraarticular Hyaluronan Injections in the Treatment of
Osteoarthritis
--------------------------------------------------------------------------------
OV-SICOT SYMPOSIUM NEW
--------------------------------------------------------------------------------
Abatangelo: Hyaluronan: biological role and function in articular joints
--------------------------------------------------------------------------------
Physician Premiums
--------------------------------------------------------------------------------
     Long Sleeve Shirts
--------------------------------------------------------------------------------
     BIC Pens
--------------------------------------------------------------------------------
     Spring Pens
--------------------------------------------------------------------------------
Website*+
--------------------------------------------------------------------------------
Stock Photographs+
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
SALES
--------------------------------------------------------------------------------
Sales Training Manuals
--------------------------------------------------------------------------------
Sales Training Manuals Translations
--------------------------------------------------------------------------------
Sales Training Video
--------------------------------------------------------------------------------
Customer Sales History (including sales to distributors & wholesalers) in units
and local currency.
--------------------------------------------------------------------------------
Customer lists and contact information for each customer (including name,
address, telephone number, fax number and e-mail addresses, to the extent that
any of the foregoing appear in existing Zimmer records)+
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
OTHER
--------------------------------------------------------------------------------
Cambridge Pharma - Commercial Strategy Country by Country Incorporating
Clinical Positioning of Product and Approach to Funding
--------------------------------------------------------------------------------
Cambridge Pharma - Pharmacoeconomic Study (Retrospective Analysis that
demonstrates the clinical and economic contribution of Orthovisc use in
treatment)
--------------------------------------------------------------------------------
Covance Study
--------------------------------------------------------------------------------
Convention Material *
--------------------------------------------------------------------------------
Advertising Development
--------------------------------------------------------------------------------

                                      -7-
<PAGE>

--------------------------------------------------------------------------------
Launch Artwork
--------------------------------------------------------------------------------
Logo Development
--------------------------------------------------------------------------------
Master CD - Canadian French & English, CE English
--------------------------------------------------------------------------------
Strategic and Tactical Plans - Hamilton
--------------------------------------------------------------------------------
Update & Core Materials
--------------------------------------------------------------------------------
Canadian Translations
--------------------------------------------------------------------------------
French Translations
--------------------------------------------------------------------------------
Pop-up Stands
--------------------------------------------------------------------------------
Penguin Stands
--------------------------------------------------------------------------------
Direct Mail Brochure
--------------------------------------------------------------------------------
Spring Image
--------------------------------------------------------------------------------
Orthovisc Clinical Trial Records, Forms and Protocols +
--------------------------------------------------------------------------------
* denotes materials that are not complete

+ Web site: Anika shall have a perpetual, royalty-free, non-exclusive license to
use, copy, and display the information included in the materials for
www.orthovisc.com. Zimmer acknowledges that all rights to the domain name
www.orthovisc.com and all intellectual property related thereto are the sole and
exclusive property of Anika and hereby disclaim any rights thereto. Zimmer shall
retain all other rights in the information. Images of Zimmer products: Anika
shall have a perpetual, royalty-free, non-exclusive license to use, copy, and
display the images of Zimmer knee femoral components in the Orthovisc Materials.
Except as set forth in this Termination Agreement, Zimmer shall retain all other
rights in the images, and in all other images of its products. Customer lists:
Zimmer shall retain the right to use the customer lists in its own business.
Clinical trial records, forms, and protocols: Zimmer shall retain non-exclusive
rights, including copyrights, necessary and sufficient for Zimmer to continue to
use the forms and format of these materials in its own business. Trademarks,
trade names, etc.: Anika shall have no rights whatsoever in any trademarks,
trade names, or other intellectual property of Zimmer or of its affiliates,
parents, or agents.

                                      -8-

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