Exhibit 10.1
 The confidential portions of this exhibit have been filed separately with the Securities and
Exchange Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of
the Securities Exchange Act of 1934, as amended. REDACTED PORTIONS OF THIS EXHIBIT ARE MARKED BY
***.
 EXECUTION COPY
     DEVELOPMENT AND LICENSE AGREEMENT
  Dated as of June 30, 2008
 By and Between
  NOVEN PHARMACEUTICALS, INC.,
  and
  PROCTER & GAMBLE PHARMACEUTICALS, INC.




---



##### 



TABLE OF CONTENTS
 PageARTICLE I
    
    DEFINITIONS
    
    
    1Section 1.01.
    
    Definitions
    
    
    1Section 1.02.
    
    Other Definitions
    
    
    8ARTICLE II
    
    DEVELOPMENT
    
    
    9Section 2.01.
    
    Development Agreement
    
    
    9Section 2.02.
    
    Development Plan and Target Specifications
    
    
    9Section 2.03.
    
    Consideration Related to Development of ***
    
    
    9Section 2.04.
    
    Feasibility Study for ***
    
    
    10Section 2.05.
    
    Clinical Supply of T-Patch
    
    
    10Section 2.06.
    
    Quality and Clinical Development
    
    
    10Section 2.07.
    
    Monthly Reports
    
    
    10Section 2.08.
    
    Joint Developments
    
    
    11ARTICLE III
    
    LICENSE
    
    
    11Section 3.01.
    
    License Grant
    
    
    11Section 3.02.
    
    Limitations on License Granted Under Section 3.01
    
    
    11Section 3.03.
    
    Quality Control
    
    
    12Section 3.04.
    
    Sublicense
    
    
    12Section 3.05.
    
    Co-Promotion Partner
    
    
    13ARTICLE IV
    
    INTELLECTUAL PROPERTY MATTERS
    
    
    13Section 4.01.
    
    Infringement or Other Actions Regarding the Technology
    
    
    13Section 4.02.
    
    Infringement of Third Party Rights
    
    
    18Section 4.03.
    
    Maintenance of Noven Patents
    
    
    20Section 4.04.
    
    Other Intellectual Property Rights
    
    
    20Section 4.05.
    

Ownership
of Clinical Data
    
    
    21ARTICLE V
    
    ADDITIONAL COVENANTS AND AGREEMENTS OF THE PARTIES
    
    
    21Section 5.01.
    
    Additional Products
    
    
    21Section 5.02.
    
    Regulatory Matters
    
    
    23Section 5.03.
    
    Noncompetition
    
    
    23Section 5.04.
    
    Manufacturing and Supply Agreement
    
    
    24ARTICLE VI
    
    ROYALTIES AND MILESTONE PAYMENTS
    
    
    25Section 6.01.
    
    Royalties Based Upon Quarterly Net Outside Sales
    
    
    25Section 6.02.
    
    Additional Products
    
    
    25Section 6.03.
    
    Expiration of Patents
    
    
    25Section 6.04.
    
    Milestone Payments
    
    
    25Section 6.05.
    
    Determination of Net Outside Sales
    
    
    26Section 6.06.
    
    Generation of Net Outside Sales
    
    
    28ARTICLE VII
    
    CONFIDENTIALITY
    
    
    29Section 7.01.
    
    Confidentiality
    
    
    29Section 7.02.
    
    Publications
    
    
    31Section 7.03.
    
    Press Releases
    
    
    31




---



##### 



PageARTICLE VIII
    
    REPRESENTATIONS AND WARRANTIES
    
    
    32Section 8.01.
    
    Representations and Warranties of Noven
    
    
    32Section 8.02.
    
    Representations and Warranties of P&GP
    
    
    33Section 8.03.
    
    Knowledge
    
    
    35ARTICLE IX
    
    INDEMNIFICATION
    
    
    35Section 9.01.
    
    Indemnification
    
    
    35Section 9.02.
    
    Certain Limitations
    
    
    37ARTICLE X
    
    TERM AND TERMINATION
    
    
    38Section 10.01.
    
    Term
    
    
    38Section 10.02.
    
    Certain Termination Events
    
    
    38Section 10.03.
    
    Effect of Termination
    
    
    40ARTICLE XI
    
    MISCELLANEOUS
    
    
    41Section 11.01.
    
    Notices
    
    
    41Section 11.02.
    
    Disputes
    
    
    42Section 11.03.
    
    Independent Contractors
    
    
    43Section 11.04.
    
    Assignment
    
    
    43Section 11.05.
    
    Binding Effect; Benefit
    
    
    43Section 11.06.
    
    Amendments
    
    
    43Section 11.07.
    
    No Waiver
    
    
    43Section 11.08.
    
    Counterparts
    
    
    44Section 11.09.
    
    Interpretation
    
    
    44Section 11.10.
    
    Governing Law
    
    
    44Section 11.11.
    
    Unenforceability
    
    
    44Section 11.12.
    
    Entire Agreement
    
    
    45Section 11.13.
    
    Expenses
    
    
    46Section 11.14.
    
    Force Majeure
    
    
    46
 ii




---



##### 



LIST OF EXHIBITS
 Exhibit A
    
    Noven PatentsExhibit B
    
    Monthly ReportsExhibit C
    
    Specifications for T-PatchExhibit D
    
    Pricing Structure for T-Patch
 iii




---



##### 



DEVELOPMENT AND LICENSE AGREEMENT
 Agreement th Effective Date Noven P&GP
 W I T N E S S E T H:
 Development Agreement
 Manufacturing and Supply Agreement
   ARTICLE I
DEFINITIONS
 Definitions
 Affiliate
 Annual Net Outside Sales




---



##### 



Applicable Law
 Business Day
 Code of Federal Regulations C.F.R.
 Competing Product
 Commercially Reasonable Efforts
 Confidential Information
 -2-




---



##### 



Confidentiality Agreement
 Contemplated Transactions
 Damages
 FDA
 FDC Act et seq.
 Field
 GAAP
 GCP
 GLP
 GMP
 Governmental Authority
 -3-




---



##### 



IND
 Intellectual Property
  Launch
 Lien
 NDA
 Net Outside Sales
    -4-




---



##### 



Noven Patents Exhibit A Exhibit A provided Noven Patents Exhibit A Exhibit A
  Paragraph IV Certification
 Permitted Liens
 -5-




---



##### 



Person
 Proceedings
 Products
 Quarterly Net Outside Sales
 Regulatory and Clinical Materials
 Regulatory Applications
 Regulatory Approval
 Regulatory Authority
 -6-




---



##### 



Related Parties Related Parties
 Securities Laws
 Technology
 Territory
 T-Patch T-Patch
  Third Party
 Transaction Documents
 United States
  -7-




---



##### 



Other Definitions
 Term
    
    SectionAcquired Business
    

    5.03(c)Additional Product
    

    5.01(b)Agreement
    
    PreambleAward
    

    4.01(f)Competing Business
    

    5.03(a)Contribution Margin
    
    4.01(f)(iv)Development Agreement
    
    RecitalsDisclosing Party
    

    7.01Dollar Purchase Rate
    

    6.05(c)Effective Date
    
    PreambleFeasibility Study
    

    2.04First Sales Threshold
    

    6.01(a)Indemnified Party
    

    9.01(c)Indemnifying Party
    

    9.01(c)Joint Development
    

    2.08Manufacturing and Supply Agreement
    
    RecitalsMilestone Payments
    

    6.04Milestones
    

    6.04Noven
    
    PreambleNoven Additional Product
    

    5.01(a)Noven Compensatory Damages
    
    4.01(f)(iii)Noven Indemnitees
    

    9.01(a)Other Damages
    

    4.01(f)(v)P&GP
    
    PreambleP&GP Additional Product
    

    5.01(b)P&GP Compensatory Damages
    
    4.01(f)(iv)P&GP Indemnitees
    

    9.01(b)Patent Expiration
    

    6.03Permitted Sublicensee
    

    3.04(a)Project
    

    2.01Receiving Party
    

    7.01Royalties
    

    6.01Royalty Rate
    

    6.01Second Sales Threshold
    

    6.01(b)Settlement
    

    4.01(b)Third Party Infringement Suit
    

    4.02Third Sales Threshold
    

    6.01(c)***
    

    8.02(i)***
    

    8.02(i)***
    

    8.02(i)
 -8-




---



##### 



ARTICLE II
DEVELOPMENT
 Development Agreement Project
 Development Plan for ***
 Consideration Related to Development of ***
     -9-




---



##### 



Feasibility Study for *** Feasibility
Study
 Clinical Supply of T-Patch provided
 Quality and Clinical Development
 Monthly Reports Exhibit B
 -10-




---



##### 



Joint Developments Joint Development
 ARTICLE III
LICENSE
 License Grant
   provided however
 Limitations on License Granted Under Section 3.01
 Novens Rights
  -11-




---



##### 



Applicable Law
 Quality Control
 Sublicense
 Permitted Sublicensee
  -12-




---



##### 



Co-Promotion Partner
 ARTICLE IV
INTELLECTUAL PROPERTY MATTERS
 Infringement or Other Actions Regarding the Technology
  -13-




---



##### 



provided Settlement
 provided
 -14-




---



##### 



provided
 Award
   Noven Compensatory Damages
 -15-




---



##### 



P&GP Compensatory Damages provided Contribution Margin
 Other Damages
  -16-




---



##### 



provided
    -17-




---



##### 



provided
 Infringement of Third Party Rights
 Third Party
Infringement Suit provided however provided further provided however
 -18-




---



##### 



provided however
 -19-




---



##### 



Maintenance of Noven Patents
 Other Intellectual Property Rights
 -20-




---



##### 



Ownership of Clinical Data
 ARTICLE V
ADDITIONAL COVENANTS AND AGREEMENTS OF THE PARTIES
 Additional Products
 Noven Additional Product
 P&GP Additional Product Additional Product
 -21-




---



##### 



-22-




---



##### 



Regulatory Matters
 Noncompetition
 Competing Business
  Acquired Business provided however
 -23-




---



##### 



provided however
 Manufacturing and Supply Agreement Exhibit C Exhibit D
 -24-




---



##### 



ARTICLE VI
ROYALTIES AND MILESTONE PAYMENTS
 Royalties Based Upon Quarterly Net Outside Sales Royalties Royalty Rate provided
 Additional Products
 Expiration of Patents Patent Expiration
 Milestone Payments Milestone Payments Milestones
    -25-




---



##### 



provided
 Determination of Net Outside Sales
 Monthly Reports
 Quarterly Reports
 -26-




---



##### 



Currency Conversion Dollar Purchase Rate
 Tax Withholding provided
 Maintenance of Records; Audits provided however
 -27-




---



##### 



Disputes provided
 Expenses
 Generation of Net Outside Sales
 -28-




---



##### 



provided provided
 ARTICLE VII
CONFIDENTIALITY
 Confidentiality
 Disclosing
Party Receiving Party
  -29-




---



##### 



provided however
 provided however
 -30-




---



##### 



Publications
 Press Releases
 -31-




---



##### 



ARTICLE VIII
REPRESENTATIONS AND WARRANTIES
 Representations and Warranties of Noven
 Organization
 Power, Authority and Enforceability
 No Violation
 No Default
 Litigation
 -32-




---



##### 



Intellectual Property
 Estimates
 Generic Drug Enforcement Act
 Third Party Agreements
 Representations and Warranties of P&GP
 Organization
 Power, Authority and Enforceability
 -33-




---



##### 



No Violation
 No Default
 Estimates
 Generic Drug Enforcement Act
 Litigation
 Licenses and Permits
 ***
 -34-




---



##### 



Schedule 8.02(i) Schedule 8.02(i)
 Third Party Agreements
 Knowledge
 ARTICLE IX
INDEMNIFICATION
 Indemnification
 Indemnification Obligations of P&GP Noven
Indemnitees
  -35-




---



##### 



provided however
 Indemnification Obligations of Noven P&GP
Indemnitees
  -36-




---



##### 



provided however
 Procedure Indemnified
Party Indemnifying Party provided
 Certain Limitations
  -37-




---



##### 



ARTICLE X
TERM AND TERMINATION
 Term
 Certain Termination Events
     -38-




---



##### 



-39-




---



##### 



provided provided further
 Effect of Termination provided
 -40-




---



##### 



ARTICLE XI
MISCELLANEOUS
 Notices
  th
  
  
  
 -41-




---



##### 



Disputes provided however provided further
 -42-




---



##### 



Independent Contractors
 Assignment provided
 Binding Effect; Benefit
 Amendments
 No Waiver
 -43-




---



##### 



Counterparts
 Interpretation
 Governing Law
 Unenforceability
 -44-




---



##### 



Entire Agreement
   -45-




---



##### 



Expenses
 Force Majeure provided
 -46-




---



##### 



NOVEN PHARMACEUTICALS, INC.By:
    /s/ Peter C. BrandtName:
    Peter C. BrandtTitle:
    President, Chief Executive Officer PROCTER & GAMBLE PHARMACEUTICALS, INC.By:
    /s/ Thomas M. FinnName:
    Thomas M. FinnTitle:
    President, Global Health Care -47-