Document:

<PAGE>
                                                                    EXHIBIT 10.9

                           KING PHARMACEUTICALS, INC.

                                 INCENTIVE PLAN

                  LONG-TERM PERFORMANCE UNIT AWARD CERTIFICATE
                         (THREE YEAR PERFORMANCE CYCLE)

     This Certificate, when executed by a duly authorized officer of King
Pharmaceuticals, Inc. (the "Company") and by Participant, evidences the grant by
the Company to the Participant named below of a Long-Term Performance Unit
Award.

<TABLE>
<S>                                     <C>
1.  Name and Address of Participant:
                                        --------------------------------------------

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

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

2.  Date of Grant:
                                        --------------------------------------------

3.  Type of Grant:                      Long-Term Performance Unit Award

4.  Target Number of
    Long-Term Performance Units:
                                        --------------------------------------------

5.  Performance Cycle:                  The Performance Cycle shall being on January
                                        1, 2006 and end on December 31, 2008.

6.  Vesting Date:                       December 31, 2008, except as otherwise set
                                        forth in the Long-Term Performance Unit
                                        Award Agreement.

7.  Date of Payment:                    March 15, 2009, except as otherwise set forth in
                                        the Long-Term Performance Unit Award Agreement.

8.  Performance Goals: The number of Long-Term Performance Units earned by the
Participant shall be determined in accordance with the following grid. If the
actual performance results fall between two of the categories listed below,
straight-line interpolation will be used to determine the amount earned. Total
Shareholder Return shall be calculated in the manner set forth in Exhibit 1
hereto and compared to the peer group identified in Exhibit 1.
</TABLE>

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

<TABLE>
<S>                                                                 <C>
       KING PHARMACEUTICALS, INC. PERCENTILE IN
TOTAL SHAREHOLDER RETURN VS. COMPANIES INCLUDED IN THE DOW          PAYOUT--PERCENT OF TARGET
          JONES U.S. PHARMACEUTICALS INDEX                             LONG-TERM PERFORMANCE
            DURING THE PERFORMANCE CYCLE                                   UNITS GRANTED

                  70th percentile +                                             200%
---------------------------------------------------------------------------------------------
                  70th percentile                                               200%
---------------------------------------------------------------------------------------------
                  50th percentile                                               100%
---------------------------------------------------------------------------------------------
                  30th percentile                                                50%
---------------------------------------------------------------------------------------------
                 <30th percentile                                          0% (no payout)
---------------------------------------------------------------------------------------------
</Table>

<PAGE>

     This Long-Term Performance Unit Award is subject to and governed by the
terms of this Long-Term Performance Unit Award Certificate, the Long-Term
Performance Unit Award Agreement attached hereto and incorporated by reference
herein and the Company's Incentive Plan.

                                      KING PHARMACEUTICALS, INC.

                                      By:
                                          ------------------------------------
                                          Name:
                                                ------------------------------
                                          Title:
                                                ------------------------------

                                      PARTICIPANT

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

This Long-Term Performance Unit Award Certificate may be executed in more than
one counterpart, each of which shall be deemed an original, but all of which
together shall constitute but one and the same instrument. Facsimile or
photographic copies of originally signed copies of this Long-Term Performance
Unit Award Certificate will be deemed to be originals.

                                       2
<PAGE>

                                                                    EXHIBIT 10.9

                   LONG-TERM PERFORMANCE UNIT AWARD AGREEMENT
                         (THREE YEAR PERFORMANCE CYCLE)
                   PURSUANT TO THE KING PHARMACEUTICALS, INC.
                                 INCENTIVE PLAN

     This Long-Term Performance Unit Award Agreement (the "Agreement") is made
as of the date set forth on the Long-Term Performance Unit Award Certificate
attached hereto (the "Grant Date") by King Pharmaceuticals, Inc. (the "Company")
and the individual identified on the Long-Term Performance Unit Award
Certificate (the "Participant") to grant a Long-Term Performance Unit Award by
the Company to the Participant on the terms and conditions set forth below:

     1. LONG-TERM PERFORMANCE UNIT AWARD.

     As of the Grant Date, subject to the terms, conditions and restrictions set
forth herein, the Company grants and issues to the Participant a Long-Term
Performance Unit Award for such number of Long-Term Performance Units as
indicated on the Long-Term Performance Unit Award Certificate (the "Long-Term
Performance Units") which may be earned during the Performance Cycle as
indicated on the Long-Term Performance Unit Award Certificate if the Performance
Goals set forth on the Long-Term Performance Unit Award Certificate are met.

     2. GOVERNING PLAN.

     The Long-Term Performance Unit Award shall be granted pursuant to and
(except as specifically set forth herein) subject in all respects to the
applicable provisions of the King Pharmaceuticals, Inc. Incentive Plan ("Plan"),
which are incorporated herein by reference. Terms not otherwise defined in this
Agreement have the meanings ascribed to them in the Plan.

     3. CALCULATION OF EARNED LONG-TERM PERFORMANCE UNITS.

     The Committee, in its sole discretion, will determine the number of
Long-Term Performance Units earned by the Participant at the end of the
Performance Cycle based on the attainment of the Performance Goals as set forth
on the Long-Term Performance Unit Award Certificate. The number of shares of
Common Stock ultimately earned and paid, if any, for such Long-Term Performance
Units will be determined based on the number of Long-Term Performance Units
actually earned and vested at the end of the Performance Cycle as set forth in
Section 4 below, with one share of Common Stock granted to the Participant for
every earned and vested Long-Term Performance Unit.

     4. VESTING OF LONG-TERM PERFORMANCE UNITS.

     Long-Term Performance Units earned will vest as set forth below:

          (a) Provided the Participant has continued employment through the end
of the Performance Cycle, one hundred percent (100%) of the earned Long-Term
Performance Units will vest on the last day of the Performance Cycle as set
forth in the Long-Term Performance Unit Award Certificate; or

<PAGE>

          (b) In the event of the Participant's Separation from Service by
reason of death, Disability, Approved Retirement, Cause, resignation or any
other reason during the Performance Cycle, the vesting, forfeiture and payment
of Long-Term Performance Units shall be determined according to Section 9.2 and
Section 13.5 of the Plan, which requires that all payments comply with Section
409A of the Code.

     5. FORM AND TIMING OF PAYMENT.

     All payments of vested Long-Term Performance Units pursuant to this
Agreement will be made in the form of shares of Common Stock. Except as
otherwise provided in this Agreement, payment will be made by the Date of
Payment set forth in the Long-Term Performance Unit Award Certificate; provided,
however, if, the Participant is a "specified employee" (as defined under Section
409A of the Code) then such payment, if required by Section 409A of the Code,
will be made six months after the date of such Separation from Service.

     6. VOTING AND DIVIDEND RIGHTS.

     Except as specifically set forth in this Agreement, the Participant shall
not have voting or any other rights as a shareholder of the Company with respect
to Long-Term Performance Units. The Participant will obtain full voting and
other rights as a shareholder of the Company upon the payment of the Long-Term
Performance Units in shares of Common Stock as provided in Section 5 above.

     7. ADDITIONAL AGREEMENTS.

          (a) Tax Matters. The Long-Term Performance Units granted are subject
to appropriate income tax withholding and other deductions required by
applicable laws or regulations, and Participant and his successors will be
responsible for all income and other taxes payable as a result of a payout under
the Long-Term Performance Units or otherwise in connection with this Agreement.
The Company will have the power and the right to deduct or withhold, or require
the Participant or the Participant's beneficiary to remit to the Company, the
minimum necessary amount to satisfy federal, state, and local taxes, domestic or
foreign, required by law or regulation to be withheld with respect to any
taxable event arising as a result of this Agreement. The Company is not required
to provide any gross-up or other tax assistance. With respect to withholding
required upon any taxable event arising as a result of the Long-Term Performance
Units granted hereunder, the Company, unless notified otherwise by the
Participant in writing within thirty (30) days prior to the taxable event, will
satisfy the tax withholding requirement by withholding shares of Common Stock
having a Fair Market Value, equal to the total minimum statutory tax required to
be withheld on the transaction. The Participant agrees to pay to the Company
and/or its Subsidiaries any amount of tax that the Company, its and/or its
Subsidiaries may be required to withhold as a result of the Participant's
participation in the Plan that cannot be satisfied by the means previously
described.

          (b) Independent Advice; No Representations. Participant acknowledges
that (i) (s)he was free to use professional advisors of her/his choice in
connection with this Agreement, has received advice from her/his professional
advisors in connection with this Agreement, understands its meaning and import,
and is entering into this Agreement freely and

                                       2
<PAGE>

without coercion or duress; and (ii) (s)he has not received and is not relying
upon any advice, representations or assurances made by or on behalf of the
Company or any Company affiliate or any employee of or counsel to the Company
regarding any tax or other effects or implications of the Long-Term Performance
Units or other matters contemplated by this Agreement.

          (c) Value of Long-Term Performance Units. No representations or
promises are made to Participant regarding the value of the Long-Term
Performance Units or Company's business prospects. Participant acknowledges that
information about investment in Company stock, including financial information
and related risks, is contained in Company's SEC reports which have been made
available for Participant's review at any time before Participant's acceptance
of this Agreement. Further, Participant understands that the Company does not
provide tax or investment advice and acknowledges Company's recommendation that
Participant consult with independent specialists regarding such matters. Sale or
other transfer of the Company stock may be limited by and subject to Company
policies as well as applicable securities laws and regulations.

          (d) Adjustment in Capitalization. In the event of an Adjustment Event
that is a merger, consolidation, reorganization, liquidation, dissolution or
other similar transaction, then the Award pursuant to Section 1 of this
Agreement shall be deemed to pertain to the securities and other property,
including cash, to which a holder of the number of Long-Term Performance Units
would have been entitled to receive in connection with such Adjustment Event.

          (e) Change of Control. Upon a Change of Control, vesting, forfeiture
and payment shall occur with respect to the Long Term Performance Units in
accordance with Article 11 of the Plan.

          (f) No Right to Continued Employment. This Agreement does not confer
upon Participant any right to continue as an employee of the Company or its
subsidiary or to any particular employment tenure, nor does it limit in any way
the right of Company or its subsidiary to terminate Participant's services to
the Company or its subsidiary at any time, with or without cause.

          (g) Nontransferability. Long-Term Performance Units awarded pursuant
to this Agreement may not be sold, transferred, pledged, assigned or otherwise
alienated or hypothecated (a "Transfer") other than by will or by the laws of
descent and distribution, except as provided in the Plan. If any Transfer,
whether voluntary or involuntary, of Long-Term Performance Units is made, or if
any attachment, execution, garnishment, or lien will be issued against or placed
upon the Long-Term Performance Units, the Participant's right to such Long-Term
Performance Units will be immediately forfeited to the Company, and this
Agreement will lapse.

     8. GENERAL.

          (a) Successors and Assigns. This Agreement is personal in its nature
and Participant may not assign or transfer his/her rights under this Agreement.

          (b) Notices. Any notices, demands or other communications required or
desired to be given by any party shall be in writing and shall be validly given
to another party if

                                       3
<PAGE>

served either personally or if deposited in the United States mail, certified or
registered, postage prepaid, return receipt requested. If such notice, demand or
other communication shall be served personally, service shall be conclusively
deemed made at the time of such personal service. If such notice, demand or
other communication is given by mail, such notice shall be conclusively deemed
given forty-eight (48) hours after the deposit thereof in the United States mail
addressed to the party to whom such notice, demand or other communication is to
be given as hereinafter set forth:

     To the Company:                      King Pharmaceuticals, Inc.
                                          501 Fifth Street
                                          Bristol, TN 37620
                                          Attention:  _________________________

     To Participant: At his/her address of record as maintained in the Company's
files.

Any party may change its address for the purpose of receiving notices, demands
and other communications by providing written notice to the other party in the
manner described in this paragraph.

          (c) Entire Agreement. Except as this Agreement may expressly provide
otherwise, this Agreement, the Long-Term Performance Unit Award Certificate and
the Plan constitute the entire agreement and understanding of the Company and
Participant with respect to the subject matter hereof and thereof, and supersede
all prior written or verbal agreements and understandings between Participant
and the Company relating to such subject matter. This Agreement may only be
amended by written instrument signed by Participant and an authorized officer of
the Company.

          (d) Governing Law; Severability. This Agreement will be construed and
interpreted under the laws of the State of Tennessee applicable to agreements
executed and to be wholly performed within the State of Tennessee. If any
provision of this Agreement as applied to any party or to any circumstance is
adjudged by a court of competent jurisdiction to be void or unenforceable for
any reason, the invalidity of that provision shall in no way affect (to the
maximum extent permissible by law) the application of such provision under
circumstances different from those adjudicated by the court, the application of
any other provision of this Agreement, or the enforceability or invalidity of
this Agreement as a whole. If any provision of this Agreement becomes or is
deemed invalid, illegal or unenforceable in any jurisdiction by reason of the
scope, extent or duration of its coverage, then such provision shall be deemed
amended to the extent necessary to conform to applicable law so as to be valid
and enforceable or, if such provision cannot be so amended without materially
altering the intention of the parties, then such provision will be stricken and
the remainder of this Agreement shall continue in full force and effect.

          (e) Remedies. All rights and remedies provided pursuant to this
Agreement or by law shall be cumulative, and no such right or remedy shall be
exclusive of any other. A party may pursue any one or more rights or remedies
hereunder or may seek damages or specific performance in the event of another
party's breach hereunder or may pursue any other remedy by law or equity,
whether or not stated in this Agreement.

                                       4
<PAGE>

          (f) Interpretation. Headings herein are for convenience of reference
only, do not constitute a part of this Agreement, and will not affect the
meaning or interpretation of this Agreement. References herein to Sections are
references to the referenced Section hereof, unless otherwise specified.

          (g) Waivers; Amendments. The waiver by either party of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of any
later breach of that provision. This Agreement may be modified only by written
agreement signed by Participant and the Company.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       5Stock Appreciation Rights Agreement

 

Exhibit 10.1

STOCK APPRECIATION RIGHTS AGREEMENT (EMPLOYEE)

     This document sets forth the terms of a grant of stock appreciation rights (the “Award”)
granted by Noven Pharmaceuticals, Inc., a Delaware corporation (the “Company”), pursuant to a
Certificate of Stock Appreciation Rights (“Certificate”) displayed at the website of Smith Barney
Stock Plan Services. The Certificate, which specifies the person to whom the award is granted
(“Grantee”) and other specific details of the grant, and the electronic acceptance of the
Certificate at the website of Smith Barney Stock Plan Services are incorporated herein by
reference.

BACKGROUND

	 	A.	 	Grantee is an employee of the Company.
	 
	 	B.	 	In consideration of services to be performed, Company desires to afford
Grantee an opportunity to acquire shares of its common stock in accordance with
Company’s 1999 Long-Term Incentive Plan (the “Plan”) as hereinafter provided.
	 
	 	C.	 	Any capitalized terms not otherwise defined herein shall have the meaning
accorded them under the Plan.

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other
good and valuable consideration, the parties, hereto, intending to be legally bound, agree as
follows:

     1. Grant of Award. Subject to the terms and conditions of the Plan and this Grant,
Company hereby grants to Grantee the number of stock appreciation rights (the “Rights”) specified
on the Certificate, with each Right bearing the reference price (the “Reference Price”) specified
on the Certificate. The Rights are granted in respect of the Common Stock, par value $.0001 per
share (“Common Stock”) of the Company.

     2. Award Period. The Award may be exercised in accordance with the provisions of
Paragraphs 3, 4 and 5 hereof during the Award Period, which shall begin on the “Award Date”
specified in the Certificate and shall end on the Expiration Date (as defined in paragraph 4). All
rights to exercise the Award shall terminate on the Expiration Date.

     3. Exercisability. Subject to the limitations of the Plan and this Award, the Award
shall be exercisable according to the vesting schedule specified on the Certificate. An installment
of this Award shall not become exercisable on the otherwise applicable vesting date if the
Grantee’s Date of Termination (as defined in paragraph 8) occurs on or before such vesting date.
Notwithstanding the foregoing provisions of this paragraph 3,

 

 

the Award shall become exercisable with respect to all of the Rights (to the extent it is not
then otherwise exercisable) as follows:

	 	A.	 	The Award shall become fully exercisable upon the Grantee’s Date of
Termination, if the Grantee’s Date of Termination occurs by reason of the Grantee’s
death or Disability.
	 
	 	B.	 	The Award shall become fully exercisable upon a Change in Control (as defined
in the Plan), if the Grantee’s Date of Termination does not occur on or before the
Change in Control.
	 
	 	C.	 	The Option may be exercised on or after the Date of Termination only as to
that portion of the Rights as to which it was exercisable immediately prior to the
Date of Termination, or as to which it became exercisable on the Date of Termination
in accordance with this paragraph 3.

     4. Expiration. The Award Period shall terminate and this Award shall be exercisable
after the Company’s close of business on the last business day that occurs prior to the Expiration
Date. The “Expiration Date” shall be the earliest to occur of:

	 	A.	 	the Expiration Date specified on the Certificate;
	 
	 	B.	 	if the Grantee’s Date of Termination occurs by reason of death, Disability or
Retirement, the one-year anniversary of such Date of Termination;
	 
	 	C.	 	the Grantee’s Date of Termination, if the Grantee’s Date of Termination
occurs as a result of a termination by the Company by reason of Grantee engaging in
any activity in violation of any non-competition, confidentiality or other duty or
obligation Grantee has to the Company, or that is otherwise inimical, contrary or
harmful to the interests of the Company, including, but not limited to: (i) conduct
related to Grantee’s employment which could result in either criminal or civil
penalties against Grantee or the Company, (ii) violation of the Company’s policies,
including, without limitation, the Company’s insider trading policy, (iii) Grantee’s
accepting employment with or serving as a consultant, advisor or in any other capacity
to any other person or entity without Company’s prior written consent, other than
serving in an advisory capacity without compensation during Grantee’s personal time to
or for any entity qualified under Section 501(c)(3) of the Code or any bona fide
candidate for public office which or who is not in competition with or known to
Grantee to be acting against the interests of Company, or (iv) proposing, whether
publicly or otherwise, or engaging in (whether as a member of a group or otherwise)
any of the activities specified in clauses (b) through (j) of Item 4 of Schedule 13D
under the Exchange Act without the prior written consent of Company; or

2

 

	 	D.	 	if the Grantee’s Date of Termination occurs for reasons other than death,
Disability, Retirement, or the reasons specified in C above, the 90-day anniversary of
such Date of Termination.

     5. Method of Exercise. Subject to this Agreement and the Plan, the Award may be
exercised in whole or in part by complying with such procedures as the Committee may establish or,
if no such procedure is established, then by filing a written notice with the Secretary of the
Company at its corporate headquarters prior to the Company’s close of business on the Expiration
Date. Such notice shall specify the number of Rights the Grantee elects to exercise. The Award
shall not be exercisable if and to the extent the Company determines that such exercise would
violate applicable state or Federal securities laws or the rules and regulations of any securities
exchange on which the Common Stock is traded. If the Company makes such a determination, it shall
use all reasonable efforts to obtain compliance with such laws, rules or regulations. In making any
determination hereunder, the Company may rely on the opinion of counsel for the Company. Subject
to the withholding of applicable payroll, withholding and other taxes in accordance with Section 6
below, upon the exercise of Rights (or as promptly thereafter as practicable), the Company shall
issue to the Grantee a number of shares of Common Stock (rounded down to nearest whole number)
equal to the product of (i) the number of Rights exercised multiplied by (ii) the difference
between the Fair Market Value on the date of exercise and the Reference Price.

     6. Withholding. All deliveries and distributions under this Agreement are subject to
withholding of all applicable taxes. At the election of the Grantee, and subject to such rules and
limitations as may be established by the Committee from time to time, such withholding obligations
may be satisfied through the surrender of shares of Common Stock which the Grantee already owns, or
to which the Grantee is otherwise entitled under the Plan.

     7. Transferability. Except as otherwise provided in the Plan or this paragraph 7, the
Rights are not transferable other than as designated by the Grantee by will or by the laws of
descent and distribution, and during the Grantee’s life, may be exercised only by the Grantee.
However, the Grantee, with the approval of the Committee, may transfer the Rights for no
consideration to or for the benefit of the Grantee’s Immediate Family (including, without
limitation, to a trust for the benefit of the Grantee’s Immediate Family or to a partnership or
limited liability company of which only one or more members of the Grantee’s Immediate Family hold
an interest), subject to such limits as the Committee may establish, and the transferee shall
remain subject to all the terms and conditions applicable to the Rights prior to such transfer. The
foregoing right to transfer the Rights shall apply to the right to consent to amendments to this
Agreement and, in the discretion of the Committee, shall also apply to the right to transfer
ancillary rights associated with the Rights. The term “Immediate Family” shall mean the Grantee’s
spouse, parents, children, sisters, brothers and grandchildren (whether by blood, marriage or
adoption) and, for this purpose, shall also include the Grantee.

3

 

     8. Definitions. For purposes of this Agreement, the terms used in this Agreement shall
be subject to the following:

	 	A.	 	Date of Termination. The Grantee’s “Date of Termination” shall be the first
day occurring on or after the Grant Date on which the Grantee is not employed by the
Company or any Subsidiary, regardless of the reason for the termination of employment;
provided that a termination of employment shall not be deemed to occur by reason of
(a) a transfer of the Grantee between the Company and a Subsidiary or between two
Subsidiaries; (b) the Grantee taking a leave of absence from the Company or a
Subsidiary approved by the Grantee’s employer, or (c) Grantee ceasing to be employed
by the Company or any of its Subsidiaries but continuing to serve the Company without
interruption as an Outside Director of the Company; provided, however, that in the
case of this clause c, if Grantee thereafter ceases to serve as an Outside Director of
the Company without immediately resuming service as an employee of the Company or any
of its Subsidiaries then Grantee’s “Date of Termination” shall be the first day on
which Grantee no longer serves as an Outside Director. If, as a result of a sale or
other transaction, the Grantee’s employer ceases to be a Subsidiary (and the Grantee’s
employer is or becomes an entity that is separate from the Company), the occurrence of
such transaction shall be treated as the Grantee’s Date of Termination caused by the
Grantee being discharged by the employer.
	 
	 	B.	 	Disability. Except as otherwise provided by the Committee, the Grantee shall
be considered to have a “Disability” during the period in which the Grantee is unable,
by reason of a medically determinable physical or mental impairment, to engage in the
duties of Grantee’s employment with the Company, which condition has, or, in the
opinion of an independent physician selected by the Committee, is expected to have, a
duration of not less than 180 days.
	 
	 	C.	 	Retirement. “Retirement” of the Grantee shall mean, with the approval of the
Committee, the occurrence of the Grantee’s Date of Termination on or after the date
the Grantee attains age 55.
	 
	 	D.	 	Plan Definitions. Except where the context clearly implies or indicates the
contrary, a word, term, or phrase used in the Plan is similarly used in this
Agreement.

     9. Forfeiture Provisions.

	 	A.	 	Forfeiture of gain and unexercised rights in certain circumstances. If (a)
Grantee’s Date of Termination occurs for any of the reasons specified in clause C of
paragraph 4 of this Award during the twelve months following any exercise of all or
any portion of the Rights, or (b) during the eighteen

4

 

	 	 	 	months after Grantee’s Date of Termination Grantee violates any non-competition,
confidentiality or other duty or obligation Grantee has to the Company then (1)
this Award shall and all Rights be deemed to have terminated effective as of the
earlier of (A) the Grantee’s Date of Termination and (B) the date on which Grantee
entered into such activity, unless terminated sooner by operation of another term
or condition of this Award or the Plan, and (2) Grantee shall pay to Company the
amount of any gain realized or payment received as a result of the exercise of this
Award during such eighteen month period, as applicable.

	 	B.	 	Right of Set-Off. By accepting this agreement, Grantee consents to a
deduction from any amounts the Company owes Grantee from time to time (including
amounts owed to Grantee as wages or other compensation, fringe benefits, or vacation
pay, as well as any other amounts owed to Grantee by the Company), to the extent of
the amounts Grantee owes the Company under paragraph A above. Whether or not the
Company elects to make any set-off in whole or in part, if the Company does not
recover by means of set-off the full amount Grantee owes it, calculated as set forth
above, Grantee agrees to pay immediately the unpaid balance to the Company.
	 
	 	C.	 	Committee Discretion. Grantee may be released from its obligations under
paragraphs A and B above only if the Committee (or its duly appointed agent)
determines in its sole discretion that such action is in the best interests of the
Company.

     10. Heirs and Successors. This Agreement shall be binding upon, and inure to the
benefit of, the Company and its successors and assigns, and upon any person acquiring, whether by
merger, consolidation, purchase of assets or otherwise, all or substantially all of the Company’s
assets and business. If any rights exercisable by the Grantee or benefits deliverable to the
Grantee under this Agreement have not been exercised or delivered, respectively, at the time of the
Grantee’s death, such rights shall, subject to the terms and conditions of the Plan and this Award,
be exercisable by the Designated Beneficiary, and such benefits shall be delivered to the
Designated Beneficiary, in accordance with the provisions of this Agreement and the Plan. The
“Designated Beneficiary” shall be the beneficiary or beneficiaries designated by the Grantee in a
writing filed with the Committee in such form and at such time as the Committee shall require. If a
deceased Grantee fails to designate a beneficiary, or if the Designated Beneficiary does not
survive the Grantee, any rights that would have been exercisable by the Grantee and any benefits
distributable to the Grantee shall be exercised by or distributed to the legal representative of
the estate of the Grantee. If a deceased Grantee designates a beneficiary but the Designated
Beneficiary dies before the Designated Beneficiary’s exercise of all rights under this Agreement or
before the complete distribution of benefits to the Designated Beneficiary under this Agreement,
then any rights that would have been exercisable by the Designated Beneficiary shall be exercised
by the legal representative of the estate of the Designated Beneficiary, and any

5

 

benefits distributable to the Designated Beneficiary shall be distributed to the legal
representative of the estate of the Designated Beneficiary.

     11. Administration. The authority to manage and control the operation and
administration of this Agreement shall be vested in the Committee, and the Committee shall have all
powers with respect to this Agreement as it has with respect to the Plan. Any interpretation of
the Agreement by the Committee and any decision made by it with respect to the Agreement is final
and binding on all persons.

     12. Plan Governs. Notwithstanding anything in this Agreement to the contrary, the
terms of this Agreement shall be subject to the terms of the Plan, a copy of which may be obtained
by the Grantee from the office of the Secretary of the Company; and this Agreement is subject to
all interpretations, amendments, rules and regulations promulgated by the Committee from time to
time pursuant to the Plan. By accepting this Agreement, the Grantee acknowledges receipt of a copy
of the Plan and of the most recent Prospectus relating to the Plan.

     13. Not An Employment Contract. The Award will not confer on the Grantee any right
with respect to continuance of employment or other service with the Company or any Subsidiary, nor
will it interfere in any way with any right the Company or any Subsidiary would otherwise have to
terminate or modify the terms of such Grantee’s employment or other service at any time.

     14. Notices. Any written notices provided for in this Agreement or the Plan shall be
in writing and shall be deemed sufficiently given if either hand delivered or if sent by fax or
overnight courier, or by postage paid first class mail. Notices sent by mail shall be deemed
received three business days after mailed but in no event later than the date of actual receipt.
Notices shall be directed, if to the Grantee, at the Grantee’s address indicated by the Company’s
records, or if to the Company, at the Company’s principal executive office.

     15. No Fractional Shares. In accordance with Section 5 of the Award, shares of Common
Stock to be issued upon exercise of Rights will be determined by rounding down to the nearest whole
number. Except as otherwise determined in writing by the Committee, no fractional amounts, whether
in the form of shares of Common Stock or cash, will be issued upon exercise of the Rights.

     16. No Rights As Shareholder. The Grantee shall not have any rights of a shareholder
with respect to the Rights or any shares of Common Stock issued in respect thereof, until a stock
certificate has been duly issued following exercise of the Rights as provided herein.

     17. Amendment. This Agreement may be amended by written agreement of the Grantee and
the Company, without the consent of any other person.

6

 

     18. Law Governing. This Award shall be governed in accordance with and governed by the
internal laws of the State of Florida.

     19. Receipt of Plan. Grantee acknowledges receipt of a copy of the Plan and represents
that he or she is familiar with the terms and provisions thereof, and hereby accepts this Award
subject to all of the terms and provisions thereof. Grantee has reviewed the Plan and this Award
in their entirety, has had an opportunity to obtain the advice of counsel and Grantee’s tax advisor
prior to accepting this Award, and fully understands all provisions of the Plan and this Award.

     20. Acknowledgement of Grantee. As a material inducement to Company to grant the Award
to Grantee, Grantee represents and warrants to the Company that Grantee is not now in violation and
has not at any time violated any non-competition, confidentiality or other duty or obligation
Grantee has to the Company.

     IN WITNESS WHEREOF, the Company has caused these presents to be executed in its name and on
its behalf, all as of the Grant Date.

	 	 	 	 	 
	 	NOVEN PHARMACEUTICALS, INC.

 	 
	 	By:  	
 	 
	 	 	Robert C. Strauss 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	GRANTEE

(Acceptance designated electronically at

the website of Smith Barney Stock Plan
Services)

 	 
	 	 	 
	 	 	 
	 	 	 
	 

7

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