**Exhibit      10.31**

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**Columbia      Laboratories**

**(Bermuda)      Limited**

**-      and - **

**Fleet      Laboratories Limited**

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**THIS      AGREEMENT**
**      BETWEEN COLUMBIA LABORATORIES (BERMUDA) LIMITED **
**FLEET      LABORATORIES LIMITED**

**WHEREAS:      **

| (A)   | Columbia                has developed and is the owner of an intra vaginal hormone replacement                therapy treatment generally referred to as “Crinone” (hereinafter called                “the Product”) |
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| (B)   | Columbia                wishes to place orders with Fleet for the manufacture of the Product                in                accordance with the formulae and specifications provided by Columbia                as                may be amended by written notification by Columbia to Fleet from                time to                time (hereinafter called “the Know-how”) details of which are set out in                the First Schedule hereto |
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| (C)   | Fleet                has agreed with Columbia to manufacture the Product and to build                a                dedicated hormone suite (hereinafter called “the Suite”) at its premises                at 94 Rickmansworth Road as aforesaid in accordance with Plans and                Specifications agreed between Fleet and Columbia and to the installation                in the Suite of manufacturing equipment (hereinafter called “the                Equipment”) details of which are set out in the Second Schedule hereto                subject to the terms and conditions hereinafter                contained |
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| (D)   | Columbia                has obtained Product Licenses (No.PL/11764/004 and PL/11764/0005)                issued                by the UK Medicine Control Agency in respect of the product (hereinafter                referred to as the “Product License”) and has obtained an endorsement to                the Product License authorizing the manufacture of the Product in                the UK                by Fleet |
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**NOW      THIS AGREEMENT WITNESSETH**

| 1.**  ** | **FLEET**                shall build the Suite and use its best endeavours to complete the                Suite by                15th                February 1997. |
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| 2.   | **FLEET**                shall purchase the Equipment and install the same in the Suite and                use its                best endeavours to complete such purchase and installation by                15th                January 1997 |
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| 3.**  ** | **COLUMBIA**                shall pay to Fleet |
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| (a)   | a                sum of £275,000 as a capital contribution towards the construction of a                dedicated hormone suite in recognition of the discounted price of                the                Product being £8 per kg referred to in Clause 8 hereof such sum to be paid                by way of installments as follows:- |
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| (b)   | the                sum of £3,000 each month of the term of this Agreement such sum to be                payable on the date hereof and then on the 15th                day of each succeeding month |
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| (c)   | the                sum of £9,850 on the date hereof being the balance of the costs associated                with the initial development costs as set out in Fleet’s letter to                Columbia dated 14th                February 1996 which Columbia has agreed to                meet. |
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| (d)   | The                sums payable pursuant to this Clause are not subject to value added                tax. |
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| 4.**  ** | **COLUMBIA**                hereby agrees with Fleet to supply to Fleet |
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| (a)   | the                Know-how |
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| (b)   | Progesterone                and noveon being two of the ingredients required for the manufacture                of                the Product details of which are set out in the First Schedule at                the cost                of Columbia |
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| (c)   | the                Intermediate Bulk Containers in which the Product is to be filled                details                of which are set out in the First Schedule at the cost of                Columbia |
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**FLEET**

| (a)   | to maintain the Suite and the Equipment to a standard              which will enable Fleet to manufacture the              Product |
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| (b)   | to                manufacture the Product in accordance with |
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| (i)                  | such                process or processes as may be agreed between Columbia and Fleet                from time                to time |
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| (ii)                 | good                manufacturing practices and |
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| (iii)   | the                requirement of the UK Medicine Control Agency and if applicable of                the                U.S. Federal Drug Administration and any                statute |
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| (c)   | to                employ such staff as may be necessary to comply with its obligations                to                manufacture hereunder |
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| (d)   | to                fill the Product in the said Intermediate Bulk                Containers |
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| (e)   | to                permit Columbia during Fleet’s normal working hours to inspect the Suite                and the Equipment. |
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| (f)   | to                give Columbia not less than 60 days notice in writing of the date                on which                Fleet anticipates it will be in a position to commence manufacturing                the                Product in accordance with this Agreement (hereinafter called “the                Commencement Date”) |
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| (g)   | to                issue with each batch of the Product manufactured by Fleet a Certificate                of Analysis in respect of such                batch |
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|  7.                                (a)   | Columbia                shall supply to Fleet in writing not less than 30 days prior to Commencement                Date Columbia’s estimation of the amount of the Product                to be manufactured by Fleet for the twelve month period Commencing                with the Commencement Date and the amount of the Product                to be manufactured by Fleet referred to therein for the first 3                months in such estimation shall constitute a firm order for the                Product                by Columbia and shall be binding on the parties                hereto |
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| (b)   | Columbia                shall each month after the submission of the first estimation as                aforesaid                supply to Fleet in writing Columbia’s then estimation for the relevant                subsequent twelve month period of the amount of the Product to be                manufactured by Fleet and the amount of the Product to be manufactured                by                Fleet referred to therein for the third month in such estimation                shall                constitute a firm order for the Product by Columbia and shall be                binding                on the parties hereto |
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| (c)   | Notwithstanding                the provisions of paragraphs (a) and (b) of this Clause unless otherwise                agreed in writing by Fleet the maximum monthly production amount                of the                Product to be manufactured shall be 7,200 kg and the minimum amount                of the                Product shall be 800 kg. |
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| (d)   | Notwithstanding                that the amount for the Product shall be specifically designated                it shall                not be a breach of the conditions of this Agreement if the actual                amount                of manufacture by Fleet is either 10 per cent in excess or below                the                designated amount and the price of manufacture shall be adjusted                either up                or down as the case may be |
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| (e)   | Columbia                shall supply to Fleet such quantity of progesterone and noveon for                the                manufacture of the Product and Intermediate Bulk Containers by such                date                as Fleet shall notify Columbia in writing that Fleet will require                the                same |
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| (f)   | Fleet’s                estimation of loss in manufacture of the Product is less than 5 per                cent                of bulk and Fleet agrees to endeavour to ensure that such loss will                not                exceed such percentage although it is understood between the parties                hereto that such percentage loss may vary from time to time because                of a                number of factors |
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**SUBJECT**

| (a)   | by giving not less than 3 month’s notice in writing to              Columbia in respect of any increase in the cost of the price of materials              provided by Fleet in the manufacture of the              Product |
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| (b)   | by giving not less than 1 month’s notice in writing to              Columbia in respect of any increase in the cost of labour and overheads              of              Fleet in the manufacture of the Product provided that any increase              pursuant to this paragraph shall only be by way of annual review and              shall              not be earlier than the anniversary of the date of commencement of              manufacture of the Product by Fleet pursuant to this Agreement and              each              successive anniversary of such date |
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| 9.   | **IF**                Columbia shall wish Fleet to manufacture by volume in excess of 7,200                kg                in any                one month Fleet shall be entitled to charge Columbia at a rate per                kg of                the Product so manufactured in excess of 7,200 kg an amount equal                to the                aggregate of £8 and the cost of payment of overtime by Fleet in respect of                its employees for each kg and Fleet will use its reasonable endeavours                to                meet with Columbia’s wishes in relation to such                excess. |
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| 10.   | **Columbia**                shall effect and maintain adequate product liability insurance in                relation                to the Product being not less than £2,000,000 and in the event of the                Product being sold in the United States of America at not less than                US                $15,000,000 and shall at the date hereof supply a copy of the same                to                Fleet and at such other time or times within 14 days of a request                in                writing for the same by Fleet to                Columbia. |
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| 11.   | **Columbia**                agrees to indemnify and hold harmless Fleet from any claim against                Fleet                arising from death or loss or injury sustained by any person firm                or                company as a result or consequence of formulation of the Product                and any                receptacle or packaging in which the Product is placed and shall                procure                Fleet’s interest to be noted on the policy referred to in Clause                10. |
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| 12.   | **Fleet**                shall not be liable for errors in the manufacture of the Product                unless                such error was occasioned by the neglect or omission of Fleet and                provided                that Columbia shall have notified Fleet in writing of the same within                14                days of delivery of the Product and in any event any claim by Columbia                shall be limited to the value of the progesterone and noveon and                the                Intermediate Bulk Containers supplied by Columbia and no liability                shall                arise in respect of any consequential loss of                Columbia. |
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| 13.   | **Columbia**                shall pay the cost of the manufacture of the Product and filling                thereof                in the Intermediate Bulk Containers together with the cost of delivery                within 30 days of the date of Fleet’s                invoice. |
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| 14.   | All                references in this Agreement to sums due or payable hereunder are                to be                interpreted as net of Value Added Tax (“VAT”). If it is determined at any                time that VAT should apply to any such sums currently or in the future                or                in retrospect each party hereto agrees to make such additional VAT                payments as may be necessary according to those of its payment obligations                where VAT is applicable provided each such party first receives a                VAT                invoice. |
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| 15.   | Each                of the parties hereto agrees with the other of them that it shall                keep in                confidence any commercial or technical information received by it                from the                other pursuant to this Agreement or otherwise during the subsistence                of                this Agreement and thereafter, except to the extent that the same                is                already in the public domain, enter the public domain in the future                through no improper act on its part, are required to be disclosed                in                confidence to government agencies or by law or were previously known                or                become known to it from literature or                otherwise. |
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| 16.   | Neither                of the parties hereto have any liability whatsoever or be deemed                to be in                default for any delays or failures in performance under this Agreement                resulting from acts beyond the control of that party, including but                not                limited to acts of God, acts of regulations or any governmental or                supra-national authority, war or national emergency, accident, fire,                riot,                strikes, lock-outs, industrial disputes or                epidemics. |
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| 17.   | Subject                to the provisions for termination hereinafter contained the rights                granted                hereunder shall subsist for a period commencing with the date hereof                until                the tenth anniversary of the first day of the month in which manufacture                of the Product is commenced pursuant to this Agreement and thereafter                provided that either party hereto may terminate the rights granted                hereunder by giving to the other of them not less than twelve months’                notice in writing of such termination expiring on or after the tenth                anniversary of the first day of the month as                aforesaid. |
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| 18.   | In                the event of a material breach or substantial violation by either                party of                any of its obligations under this Agreement the other party shall                have the                right to terminate the rights granted pursuant to this Agreement                upon                giving the party committing the breach or violation ninety (90) days’                written notice of its intention to do so but if the party in breach                or                violation shall remedy such breach or violation within ninety (90)                days                after receipt of such notice, then such notice shall be without further                effect and this Agreement shall continue in full force and effect.                Notwithstanding any termination as aforesaid such termination shall                not                affect the obligations which will remain subsisting between the parties                hereto including without prejudice to the generality of the foregoing                financial obligations |
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| 19.   | If                Columbia is desirous of terminating its contractual obligations with                Maropack AG of Briseck CH - 6144 Zell Switzerland in connection with                the                filling of the Product from bulk into applicators Columbia shall                give                notice in writing to Fleet of such desire and such notice shall contain                an                offer by Columbia to Fleet to take over the filling of the Product                from                bulk into applicators on terms as to price specified by Columbia                and Fleet                shall give notice in writing to Columbia of acceptance or rejection                of                such offer within 60 days of the date of receipt of such offer and                if                Fleet shall fail to give such notice the offer shall be deemed to                have                been rejected PROVIDED ALWAYS that if the offer is rejected by Fleet                Columbia undertakes with Fleet that if Columbia within a period of                12                months of the date of the said notice from Columbia to Fleet shall                wish to                contract the filling of the Product into applicators at a price in                excess                of that offered by Columbia to Fleet. Columbia shall first offer                such                contract to Fleet and the provisions above shall mutatis mutandis                apply                during such 12 month period. |
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| 20.   | Any                notice or other information to be given by either party pursuant                to this                Agreement to the other of them shall be in writing and shall be deemed                to                be properly served by registered mail, three (3) days after being                placed                in the post, postage paid or forthwith when delivered by hand to                the other                party at the address shown in the preamble of this Agreement or to                such                other address shown in the preamble of this Agreement or to such                other                address as such party may have designated by written notice given                in                accordance with the provisions of this paragraph or forthwith by                facsimile                provided that if such facsimile shall be transmitted outside normal                working hours (being 9 a.m. to 5 p.m.) or on a day which is not a                business                day then such service shall be deemed to be served at 9                a.m. on the next business                day |
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| 21.   | This                Agreement shall be binding upon and shall inure to the benefit of                the                parties hereto and their respective successors and neither party                hereto                may assign this Agreement or any rights hereunder without the prior                written consent of the other party. |
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| 22.   | If                Columbia wishes to dispose of its interest in the Product it shall                notify                Fleet in writing of such wish and Columbia undertakes with Fleet                to                procure the purchaser of such interest to enter into an agreement                with                Fleet in similar terms to this Agreement including this Clause save                that                the period of such agreement shall be equal to the unexpired period                of                this Agreement. |
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| 23.   | This                Agreement shall be governed by the construed in accordance with the                laws                of England and be subject to the jurisdiction of the English                Courts. |
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**IN      WITNESS WHEREOF**

**COLUMBIA      LABORATORIES **

**(BERMUDA)      LIMITED**

**FLEET      LABORATORIES **

**LIMITED**

**SCHEDULES      INTENTIONALLY OMITTED**

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