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                                                                      EXHIBIT 10

C.I. = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

                          SUPPLY AND LICENSE AGREEMENT

This Supply and License Agreement (hereinafter referred to as this "AGREEMENT")
is entered into by and among

     DUSA Pharmaceuticals, Inc.,
     a company duly organized and existing under the laws of New Jersey,
     having its principal office at 25 Upton Drive, Wilmington,
     Massachusetts 01887,
     United States

                                           - hereinafter referred to as "DUSA" -

     medac Gesellschaft fur klinische Spezialpraparate mbH,
     a company duly organised and existing under the laws of Germany,
     having its registered office at Fehlandtstrasse 3, 20354 Hamburg, Germany

                                          - hereinafter referred to as "MEDAC" -

     photonamic GmbH & Co. KG,
     a company duly organised and existing under the laws of Germany,
     having its registered office at Fehlandtstrasse 3, 20354 Hamburg, Germany

                                     - hereinafter referred to as "PHOTONAMIC" -

hereinafter individually and collectively referred to respectively as a "Party"
and the "Parties"

WHEREAS DUSA and MEDAC entered into a Supply Agreement dated December 30, 2002,
(the "Former Supply Agreement'"), which the Parties to wish to terminate and
supercede with this Agreement; and

WHEREAS contemporaneously with the execution of the Supply Agreement, DUSA and
PHOTONAMIC entered into a License and Development Agreement dated December 30,
2002 (the "License Agreement"), which the Parties wish to terminate, except as
provided in this Agreement; and

WHEREAS MEDAC directly or indirectly through a third party manufactures API, as
defined below; and

WHEREAS, DUSA is entitled to purchase the API from MEDAC under the terms and
conditions set forth in the Former Supply Agreement as superceded by this
AGREEMENT and MEDAC is willing to supply the API to DUSA on such terms and
conditions.

NOW, THEREFORE, in consideration of the mutual covenants and the premises
contained herein which the parties acknowledge as sufficient consideration for
this Agreement, the Parties hereto agree as follows:

1.   DEFINITIONS

For the purpose of this AGREEMENT the following words and phrases shall have the
following meaning:

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     1.1. "AFFILIATES" shall mean, with respect to any Party, any person,
          corporation, company, partnership, joint venture, firm or other entity
          which is controlled by, controls or is under direct or indirect common
          control with such Party. For the purposes of this definition
          "control" shall mean (a) in the case of corporate entities,
          direct or indirect ownership of at least C.I. of the stock or shares
          entitled to vote for the election of directors, or managing directors,
          and (b) in the case of non-corporate entities, direct or indirect
          ownership of at least C.I. of the equity interest with the power to
          direct management and policies of such non-corporate entities.

     1.2. "API" shall mean the active pharmaceutical ingredient 5-aminolevulinic
          acid HCI, as more particularly described on Exhibit 1 hereto in oral
          or intravenous formulations.

     1.3. "CONFIDENTIAL INFORMATION" shall mean all documents, methods,
          technical know-how and all other information that is non-public,
          confidential and proprietary in nature disclosed by one Party to the
          others or any of its directors, officers, employees, agents,
          consultants or representatives relating to the business of the
          disclosing Party or its AFFILIATES.

     1.4. "EFFECTIVE DATE" shall mean date of the last Party to sign this
          Agreement.

     1.5. "FIELD" shall mean the fluorescence-guided resection of glioblastoma.

     1.6. "TERRITORY' shall mean the following countries: United States, C.I..

2.   TERMINATION

     2.1. DUSA and MEDAC hereby agree to terminate the Former Supply Agreement
          with immediate effect. Notwithstanding the language stated in the
          previous sentence, pursuant to Section 11.6 of the Former Supply
          Agreement, Section 1 (Definitions, as appropriate), Section 7.1
          (Adverse Event Reporting), Section S (Confidentiality), Section 13.3
          (Books and Records), Section 13.5.2 (English language), and Exhibit
          1.26 (Specifications) shall survive such termination. Neither Party
          shall have any ongoing rights and obligations under the Former Supply
          Agreement except pursuant those sections stated in this Section 2.1.

     2.2. DUSA and PHOTONAMIC hereby terminate the License Agreement with
          immediate effect. Notwithstanding the language stated in the previous
          sentence, pursuant to Section 13.6.2 of the License Agreement, DUSA
          shall have the non-exclusive right to use the Licensed Technology
          obtained under the License Agreementin the TERRITORY. For that purpose
          Section 1 (Definitions, as appropriate)Section 2.2.1 (representation
          of ownership), Section 6.2 second sentence (right to reference FDA
          dossier), Sections 10.4-10.7 (regarding confidentiality), Sections
          13.5.4 and 13.5.5 (rights to use the Licensed Technology, as defined
          in the License Agreement, outside the Field within the Territory),
          Section 15.3 (Books and Records), Exhibit 1.26 (Licensed Technology)
          of the License Agreement shall survive termination.

     By terminating the License Agreement, except as provided in this Agreement,
     PHOTONAMIC shall have C.I., subject to the confidentiality provisions in
     this Agreement.


                                       -2-

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3.   OBJECT OF AGREEMENT

     3.1. DUSA hereby appoints MEDAC as a supplier of the API in the TERRITORY.

     3.2. DUSA may use the API, from time to time, for manufacturing and
          marketing a finished pharmaceutical product in its own name and at its
          own risks.

4.   FORECAST/ ORDERS /TERMS OF DELIVERY

     4.1. DUSA shall advise MEDAC of its estimated needs of API for the
          succeeding twelve (12) calendar months and will provide C.I. of its
          forecast during the term. Unless expressly stated in this Agreement
          C.I..

     4.2. DUSA shall place its orders at least C.I. in advance of its requested
          delivery date but the first order shall be placed no later than C.I.
          in advance of its requested delivery date. Each order shall bear the
          exact quantity ordered and the delivery date.

     4.3. DUSA and MEDAC shall C.I. in good faith, based upon C.I. (as defined
          in the Former Supply Agreement) by DUSA.

     4.4. Deliveries shall be made C.I. (according to C.I.) if not otherwise
          agreed upon between MEDAC and DUSA.

5.   PRICES AND PAYMENT

     5.1. The cost to DUSA for the API supplied by MEDAC under this Agreement
          shall be negotiated in good faith taking into account that the cost
          per unit of C.I. was C.I.. The Cost of the API shall C.I. following
          the C.I. to DUSA and thereafter may be adjusted C.I., provided that,
          MEDAC gives DUSA C.I. prior written notice of any increase.

     5.2. Invoices are due C.I. after date of invoice.

     5.3. All payments shall be made C.I..

6.   DEFECTS IN QUALITY/QUANTITY

     6.1. DUSA shall be obliged to inspect, examine and analyze the API promptly
          upon receipt. In the event that the API does not conform to
          Specifications of this Agreement, or the Former Supply Agreement, or
          does not comply with legal requirements, DUSA shall inform MEDAC C.I.
          after receipt of the API of apparent defects in quality or quantity in
          writing. Failure or delay shall mean acceptance of the delivered
          products and waiver any potential rights DUSA may have with respect to
          the delivered API.

     6.2. DUSA shall inform MEDAC within C.I. of receipt of its testing results
          in case DUSA discovers any defects.

     6.3. C.I. and C.I., MEDAC shall C.I. and C.I. API.


                                       -3-

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     6.4. If there is a disagreement between the Parties as to the compliance of
          the API with specifications, warranties and legal requirements C.I.,
          which C.I. on the Parties. The C.I. shall be selected by C.I.. In case
          C.I. do not agree upon C.I., such shall be C.I.. If the C.I. finds the
          API to conform to the specifications, warranties and legal
          requirements C.I. and C.I.. Otherwise C.I. shall be C.I..

7.   LIABILITY

     7.1. Unless otherwise expressly stated, the Parties shall be liable to
          C.I., caused by or arising out of or relating to C.I. with the
          contractual obligations of this Agreement, unless C.I. further
          liability.

     7.2. Unless otherwise expressively stated in this Agreement the Parties
          shall C.I. arising under or as a result of this Agreement (or
          termination thereof), including but not limited to C.I., or on
          account of C.I. connection with the business or C.I.or otherwise.

8.   INDEMNIFICATION

     8.1. Where a loss, claim or damage to persons or to property is caused by
          the C.I. of DUSA, PHOTONAMIC or MEDAC, respectively, its employees or
          AFFILIATES, relating to the obligations under this Agreement, then the
          Party shall indemnify and hold the other Parties harmless from the
          loss, claim or damage, C.I..

     8.2. In the event that any person (an "Indemnitee") entitled to
          indemnification under the above Section is seeking such
          indemnification, such Indemnitee shall inform the indemnifying Party
          of the claim as soon as reasonably practicable after such Indemnitee
          receives notice of such claim, C.I. of the defense of the claim C.I.,
          provided that such settlement C.I., or otherwise C.I., the Indemnitee
          or the other Party) and shall cooperate as requested (C.I., if the
          indemnifying Party selects counsel) in the defense of the claim.

9.   TERM AND TERMINATION

     9.1. Subject to Section 12.10, this Agreement becomes effective on the
          EFFECTIVE DATE and C.I., unless earlier terminated pursuant to this
          provision. This Agreement will automatically and continuously be
          renewed for a period of a C.I., unless terminated C.I. period to the
          then running agreement term.

     9.2. DUSA or MEDAC shall be entitled at any time, by notice to the other,
          to terminate this Agreement C.I.only if

          -    Either of them C.I. or C.I. of the API in the TERRITORY;

          -    Either of them C.I. of any of the provisions of this Agreement
               and C.I. after written notice of such breach has been received;
               or

          -    Either of them should be C.I. otherwise be faced with
               circumstances C.I., for causes within its control and C.I., under
               this Agreement.


                                       -4-

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10.  CONFIDENTIALITY

     10.1. The Parties agree to keep secret and not to communicate all
          CONFIDENTIAL INFORMATION disclosed or produced under this Agreement or
          under the Former Supply Agreement or License Agreement. The Parties
          shall disclose such CONFIDENTIAL INFORMATION only to those employees,
          agents etc, who have a need to know and only if such employees, agents
          etc. are bound by confidential obligations comparable to this
          provision. The Parties shall be responsible for any breach of
          confidentiality by its employees, agents etc.

     10.2. This secrecy obligation does not apply to any information of which
          the receiving Party can prove by written documents

          -    was known to the public at the time of the receiving Party's
               receipt;

          -    was lawfully received by the Party from a third party who has no
               obligation of confidentiality to the disclosing Party;

          -    was independently developed by the Party or available to it prior
               to this agreement;

          -    was released from the restrictions of this provision by the
               express prior written consent of the disclosing Party; or

          -    has been disclosed in compliance with any legal requirement,
               provided that the disclosing Party has notified the other Party
               prior to the disclosure of the information and provided that the
               Party shall disclose only the minimum amount of information
               required for the purpose of the said legal requirement.

     10.3. This provision shall continue in full force and effect,
          notwithstanding the expiration or termination of this Agreement for
          any reason for a period of C.I..

11.  FORCE MAJEURE

     11.1. Neither Party hereto shall not be liable for any damage if the
          performance of all or parts of this Agreement is hindered or prevented
          by causes beyond the performing party's control and without its
          intention or negligence, including, but not limited to, acts of God or
          acts, laws, orders or regulations of any government or department or
          agency thereof acting in either its sovereign or contractual capacity,
          fires, floods, strikes, machinery breakage, work stoppages or other
          job actions, freight embargoes, boycotts, riots and wars.

     11.2. Either DUSA or MEDAC may, in the event that any Force Majeure cannot
          be removed or overcome C.I. from the date the Party affected first
          became affected, C.I. notice to the other Party C.I..

12.  MISCELLANEOUS

     12.1. Notices shall be made in writing to the addresses stated at the
          beginning of this Agreement, or to such other address for such Party
          as it shall have specified by like notice to the other Party, provided
          that notices of a change of address shall be effective only upon
          receipt thereof. If delivered personally or by facsimile transmission,
          the date of delivery shall be deemed to be the date on which such
          notice or request was given. If sent by overnight express courier
          service, the date of delivery shall be deemed to be the next business
          day after such notice or


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          request was deposited with such service. If sent by certified mail,
          the date of delivery shall be deemed to be the fifth (5th) business
          day after such notice or request was deposited with the U.S. or German
          Postal Service, as the case may be.

     12.2. The Parties hereto C.I. any of their rights or duties hereunder
          C.I. of the other Party C.I., and any such C.I., except that C.I.
          shall not be required in the event such C.I. is subject to C.I., so
          long as the C.I. subject to all the terms and conditions of this
          Agreement. Furthermore, MEDAC shall have the right to C.I. so long as
          C.I. with all applicable laws and regulations. Notwithstanding such
          C.I., C.I. for all of its obligations under this Agreement.

     12.3. The waiver by either Party of a breach of any of the provisions of
          this Agreement by the other Party shall not be construed as a waiver
          of any succeeding breach of the same or other provisions.

     12.4. Besides the rights and obligations stated in this Agreement no Party
          shall have any further rights and obligations under or due to this
          Agreement.

     12.5. The Parties hereto acknowledge that this Agreement and all Schedules
          or exhibits hereto set forth the entire Agreement.

     12.6. Modifications of this Agreement have to be made in writing. This
          applies to this modification provision as well.

     12.7. This Agreement is construed in accordance with and shall exclusively
          be governed by the C.I.. The C.I. for the C.I. and C.I. shall not
          apply.

     12.8. Before either Party brings any proceedings against the other that
          Party shall notify the other of the cause of dispute and the Parties
          shall try to resolve the dispute amicably by negotiation. If the
          Parties fail to negotiate a settlement of such dispute C.I. of the
          commencement of negotiations, such dispute shall be submitted to the
          exclusive jurisdiction of the courts of C.I..

     12.9. Should provisions of the present Agreement not be legally effective,
          completely or partially, or later lose their legal effectiveness, the
          validity of the remaining provisions of the contract shall not thereby
          be affected. Instead of the ineffective provision an appropriate
          provision shall be inserted, which - as far as legally permitted -
          comes the closest to that which the contracting Parties wanted or is
          nearest in meaning to their intended economic purpose.

     12.10. All of the Parties' rights and obligations under, and/or the
          provisions contained in, Section 1 (Definitions, as appropriate),
          Section 2.1 (second sentence), Section 2.2 (second and third
          sentences) including the provisions of the Former Supply Agreement and
          License Agreement stated therein, Section 10 (Confidentiality),
          Section 12.1 (Notices), shall survive any termination, relinquishment
          or expiration of this Agreement for any reason whatsoever.


                                       -6-

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     IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be
executed by its duly authorised representative as of the day and year first
above written.

For and behalf of                       For and behalf of
DUSA Pharmaceuticals Inc.               medac GmbH

/s/ D. Geoffrey Shulman                 /a/ Wilfried Mohr
-------------------------------------   ----------------------------------------
D. Geoffrey Shulman, MD, FRCPC          Wilfried Mohr
(Chairman & Chief Strategic Officer)    (Managing Director)
Date: 8/07/07                           Date: 16.07.07
      -------------------------------         ----------------------------------


                                        For and behalf of
                                        photonamic GmbH & Co. KG

                                        /s/ Ulrich Kosciessa
                                        ----------------------------------------
                                        Dr. Ulrich Kosciessa
                                        (Managing Director)
                                        Date: 16.07.07
                                              ----------------------------------


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EXHIBIT 1: DEFINITION OF THE API

NAME AND STRUCTURE

NAME OF ACTIVE SUBSTANCE: (INN)         5-Aminolevulinic acid hydrochloride

CHEMICAL NAME:                          5-Amino-4-oxo-pentanoic acid
                                        hydrochloride

SYNONYMS:                               5-Aminolevulinic acid hydrochloride,
                                        &-Aminolevulinic acid hydrochloride

ABBREVIATIONS:                          5-ALA, (-)-ALA, 5-ALS

EMPIRICAL FORMULA:                      C(5)H(9)NO(3)HCl

MOLECULAR WEIGHT:                       167.59 g/mol
                                        (5-Aminolevulinic acid hydrochloride)

STRUCTURAL FORMULA:                     (GRAPHIC)

For and behalf of                       For and behalf of
DUSA Pharmaceuticals Inc.               medac GmbH

/s/ D. Geoffrey Shulman                 /s/ Wilfried Mohr
-------------------------------------   ----------------------------------------
D. Geoffrey Shulman, MD, FRCPC          Wilfried Mohr
(Chairman)                              (Managing Director)
Date: 08/7/07                           Date: 16.07.07
      -------------------------------         ----------------------------------


                                        For and behalf of
                                        photonamic GmbH & Co. KG

                                        /s/ Ulrich Kosciessa
                                        ----------------------------------------
                                        Dr. Ulrich Kosciessa
                                        (Managing Director)
                                        Date: 16.07.07
                                              ----------------------------------