Document:

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                                                                    EXHIBIT 10.1

                               CRAWFORD & COMPANY
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
                      AS AMENDED AND RESTATED JULY 22, 2003
                         EFFECTIVE AS OF JANUARY 1, 2003

           AMENDED AND RESTATED AS OF FEBRUARY 3, 2004, APRIL 27, 2004
                               AND AUGUST 5, 2004

SECTION 1 - PURPOSE

      Crawford & Company (the "Company") hereby amends and restates the Crawford
& Company Supplemental Executive Retirement Plan as originally effective as of
January 1, 1986 and as thereafter amended. The primary purpose of this SERP is
to provide a supplemental retirement benefit to the Participants described in
Exhibit A to supplement certain benefits payable to each of them under the
Savings Plan, Deferred Compensation Plan or Retirement Plan to the extent
payment of such benefits is limited by the application of Code Sections
401(a)(17) and 415.

SECTION 2 - DEFINITIONS

      The capitalized terms used in this SERP shall have the same meanings
assigned to those terms in the Retirement Plan except that the following terms
shall have the following meanings:

      2.1 Committee - means the Nominating/Corporate Governance/Compensation
Committee of the Board of Directors of Crawford & Company.

      2.2 Deferred Compensation Plan - means the Crawford & Company Deferred
Compensation Plan, and any successor plan, as amended from time to time.

      2.3 Retirement Plan - means the Crawford & Company Retirement Plan and
Trust Agreement, as amended from time to time.

      2.4 Savings Plan - means the Crawford Saving and Investment Plan, as
amended from time to time.

      2.5 SERP - means this Crawford & Company Supplemental Executive Retirement
Plan, as amended from time to time.

SECTION 3 - PARTICIPATION

      The Committee shall have the power to designate an executive as a
Participant in this SERP and such designations shall be reflected on Exhibit A
to this SERP.

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SECTION 4 - BENEFIT

      4.1 SERP Retirement Benefit.

            (a) General. This Section 4.1 shall not apply to any executive
designated as a participant after December 31, 2002.

            (b) Amount of Benefit. A benefit shall be payable under this SERP
to, or on behalf of, each o Participant, which benefit shall equal the excess,
if any, of (1) over (2) where

                  (1) equals the aggregate of (i) the benefits which would have
      been payable to him or her, or on his or her behalf, under the Retirement
      Plan, plus (ii) Restoration Benefits under the Deferred Compensation Plan
      in the form elected by him or her, or his or her beneficiary, under the
      terms of the Retirement Plan and Deferred Compensation Plan absent the
      limitations of Code Sections 401(a)(17) and 415, without regard to when
      such executive became a participant; and

                  (2) equals the aggregate benefits actually payable to him or
      her, or on his or her behalf, in such form under (i) the Retirement Plan,
      and (ii) the Restoration Benefits provisions of the Deferred Compensation
      Plan.

            (c) Payment of SERP Retirement Benefit. The SERP Retirement Benefit
payable to, or on behalf of, a Participant under this Section 4.1 shall be paid
as of the same date, in the same benefit payment form and to the same person as
his or her benefit under the Retirement Plan or Deferred Compensation Plan, and
no payment shall be made to, or on behalf of, a Participant under this Section
4.1 unless a benefit is paid to him or her or on his or her behalf under the
Retirement Plan.

            (d) Previously Retired Participants. Notwithstanding Section 4.1(c),
if an executive, at the time of his or her designation as a Participant, is
currently receiving benefits under the Retirement Plan, he shall not receive any
SERP Retirement Benefit until such time as such Participant's employment
terminates following his or her designation as a Participant ("Subsequent
Retirement"). Such Participant's SERP Retirement Benefit under Section 4.1(b)
shall, at the time of the Subsequent Retirement, be determined by including all
periods of employment up to the Subsequent Retirement, without regard to any
previous retirement, as if the Participant first started receiving benefits
under the Retirement Plan as of the time of his or her Subsequent Retirement.
Any Participant who retires and then returns to employment shall receive
additional SERP benefits in accordance with this Section 4.1 with respect to
such period of subsequent employment if designated a continuing Participant by
the Committee before January 1, 2003.

      4.2 SERP Service Credit Benefit.

            (a) General. This Section 4.2 shall apply to any executive who is a
Participant on or after January 1, 2003.

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            (b) Amount of Benefit. On and after January 1, 2003, the Company
will make a SERP Service Credit on behalf of each Participant for each Plan
Year, which will be equal to the excess of (1) over (2) where

                  (1) equals the amount that would have been allocated to the
      Participant's account as a "service contribution" under the Savings Plan
      for such Plan Year if "compensation" under the Savings Plan had been
      determined without regard to the Participant's deferrals under the
      Deferred Compensation Plan for such Plan Year and without regard to the
      limitations of Code Sections 401(a)(17) and 415 and

                  (2) equals the sum of the amount actually allocated for such
      Plan Year (i) as a "service contribution" to the Participant's account
      under the Savings Plan and (ii) as a "service credit" to the Participant's
      account under the Deferred Compensation Plan.

      Each Participant's SERP Service Credit shall be allocated to a bookkeeping
account maintained as a part of the Company's books and records to show as of
any date the interest of each Participant in this SERP Service Credit Benefit,
which is referred to as such Participant's SERP account. Deemed interest shall
be credited to each such SERP account at the same rate and in the same manner
that deemed interest is credited to accounts maintained under the Deferred
Compensation Plan. Crawford & Company shall furnish a statement to each
Participant annually, which shows the deemed SERP account balance at the end of
the Plan Year preceding the statement date and, at Crawford & Company's
discretion, such other account data as Crawford & Company deems appropriate.

            (c) Vesting of SERP Service Credit Benefit. If a Participant
terminates his or her employment with the Company or a subsidiary of the Company
before attaining five "Years of Service" (as defined under the Savings Plan),
then his or her Service Credit Benefit under this Plan shall be forfeited to the
same extent that such Service Credit Benefit would be forfeited if it were a
"Company Service Contribution" (as defined under the Savings Plan) under the
Savings Plan.

            (d) Payment of SERP Service Credit Benefit. The SERP Service Credit
benefit payable to, or on behalf of, a Participant under this Section 4.2 shall
be paid as of the later of the date the Participant terminates his or her
employment with Crawford & Company and its affiliates or the date the
Participant attains age 55. Each Participant may elect to have his or her SERP
account distributed in the same manner as a "retirement distribution" under
Section 8.3 of the Deferred Compensation Plan.

      4.3 Offset for Amounts Owed to Crawford & Company. The Committee shall
have the right, in its absolute discretion, to reduce a Participant's SERP
Service Credit Benefit, SERP Retirement Benefit or both such benefits, in such
proportion and combination as the Committee determines is reasonable, to offset
any amount that the Committee determines is owed by a Participant to the Company
or a subsidiary of the Company.

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SECTION 5 - SOURCE OF BENEFIT PAYMENTS

      All benefits payable under the terms of this SERP shall be paid by
Crawford & Company from its general assets. No person shall have any right or
interest or claims whatsoever to the payment of a benefit under this SERP from
any person whomsoever other than Crawford & Company, and no Participant or
beneficiary shall have any right or interest whatsoever to the payment of a
benefit under this SERP which is superior in any manner to the right of any
other general and unsecured creditor of Crawford & Company.

SECTION 6 - NOT A CONTRACT OF EMPLOYMENT

      Participation in this SERP shall not grant to any Participant the right to
remain an employee for any specific term of employment or in any specific
capacity or at any specific rate of compensation.

SECTION 7 - NO ALIENATION OR ASSIGNMENT

      A Participant or a beneficiary under this SERP shall have no right or
power to alienate, commute, anticipate or otherwise assign at law or equity all
or any portion of any benefit otherwise payable under this SERP, and the
Committee shall have the right in light of any such action to suspend
temporarily or terminate permanently the payment of benefits to, or on behalf
of, any Participant or beneficiary who attempts to do so.

SECTION 8 - ERISA

      Crawford & Company intends that this SERP come within the various
exceptions and exemptions of ERISA and for an unfunded deferred compensation
plan maintained primarily for a select group of management or highly compensated
employees within the meaning of ERISA Section 201(2), Section 302(a)(3) and
Section 401(a)(1) and any ambiguities in this SERP shall be construed to effect
that intent.

SECTION 9 - ADMINISTRATION, AMENDMENT AND TERMINATION

      Crawford & Company shall have all powers necessary to administer this SERP
in its absolute discretion and shall have the right, by action of the Committee,
to amend this SERP from time to time in any respect whatsoever and to terminate
this SERP at any time; provided, however, that any such amendment or termination
shall not be applied retroactively to deprive a Participant of benefits accrued
under this Plan to the date of such amendment or termination. This SERP shall be
binding on any successor in interest to Crawford & Company.

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SECTION 10 - CLAIMS PROCEDURES

      10.1 Presentation of Claim. Any Participant or beneficiary (such
Participant or beneficiary being referred to below as a "Claimant") may deliver
to the Committee a written claim for a determination with respect to the amounts
distributable to such Claimant from the Plan. If such a claim relates to the
contents of a notice received by the Claimant, the claim must be made within 60
days after such notice was received by the Claimant. All other claims must be
made within 180 days of the date on which the event that caused the claim to
arise occurred. The claim must state with particularity the determination
desired by the Claimant.

      10.2 Notification of Decision. The Committee shall consider a Claimant's
claim within a reasonable time, and shall notify the Claimant not later than 90
days after receipt of the claim:

            (a) that the Claimant's requested determination has been made, and
that the claim has been allowed in full; or

            (b) that the Committee has reached a conclusion contrary, in whole
or in part, to the Claimant's requested determination, and such notice must set
forth in a manner calculated to be understood by the Claimant:

                  (1) the specific reason(s) for the denial of the claim, or any
      part of it;

                  (2) specific reference(s) to pertinent provisions of the Plan
      upon which such denial was based;

                  (3) a description of any additional material or information
      necessary for the Claimant to perfect the claim, and an explanation of why
      such material or information is necessary;

                  (4) an explanation of the claim review procedure, and

                  (5) a statement of the Claimant's right to bring a civil
      action under Section 502(a) of the Employee Retirement Income Security Act
      of 1974, as amended, following an adverse determination on review.

      10.3 Review of a Denied Claim. Within 60 days after receiving a notice
from the Committee that a claim has been denied, in whole or in part, a Claimant
(or the Claimant's duly authorized representative) may file with the Committee a
written request for a review of the denial of the claim. Thereafter, the
Claimant (or the Claimant's duly authorized representative):

            (a) may review all documents relevant to the claim for benefits
under this Plan and receive copies of such documents upon request and free of
charge;

            (b) may submit written comments or other documents; and/or

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            (c) may request a hearing, which the Committee, in its sole
discretion, may grant.

      10.4 Decision on Review. The Committee shall render its decision on review
promptly, and not later than 60 days after the filing of a written request for
review of the denial, unless a hearing is held or other special circumstances
required additional time, in which case the decision must be rendered within 120
days after such date. If special circumstances, such as the need to hold a
hearing, require additional time, the Claimant will be provided with notice of
the need for additional time before the end of the initial 60-day period. The
decision must be written in a manner calculated to be understood by the
Claimant, and it must contain:

            (a) specific reasons for the decision;

            (b) specific reference(s) to the pertinent Plan provisions upon
which the decision was based;

            (c) a statement of the Claimant's right to bring a civil action
under Section 502(a) of the Employee Retirement Income Security Act of 1974, as
amended;

            (d) a statement of the Claimant's right to receive upon request and
free of charge, copies of all documents relevant to the claim for benefits under
this Plan; and

            (e) such other matters as the Committee deems relevant.

      10.5 Manner of Notification. The Committee may notify a Claimant of its
decision either in writing or, where electronic notification would be
appropriate under ERISA, electronically.

      10.6 Legal Action. A Claimant's compliance with the foregoing provisions
of this Section 10 is a mandatory prerequisite to Participant's or beneficiary's
right to commence any legal action with respect to any claim for benefits under
this Plan.

SECTION 11 - CONSTRUCTION

      This SERP shall be construed in accordance with the laws of the State of
Georgia, and the masculine shall include the feminine and the singular the
plural whenever appropriate.

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SECTION 12 - EXECUTION

      Crawford & Company, as the SERP sponsor, has executed this SERP to
evidence the adoption of this amendment and restatement by the
Nominating/Corporate Governance/Compensation Committee of its Board of Directors
this 5th day of August, 2004.

                                      CRAWFORD & COMPANY

                                      By: /s/ Marshall G. Long
                                          ---------------------------------
                                          Marshall G. Long, President & CEO

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                                    EXHIBIT A

                 CRAWFORD & COMPANY SUPPLEMENTAL RETIREMENT PLAN
                 AS AMENDED AND RESTATED JULY 22, 2003 EFFECTIVE
                              AS OF JANUARY 1, 2003

           AMENDED AND RESTATED AS OF FEBRUARY 3, 2004, APRIL 27, 2004
                               AND AUGUST 5, 2004

Name of Participant

T. G. Germany
F. L. Minix
R. P. Albright
P. A. Bollinger
D. R. Chapman
J. F. Osten
D. A. Smith
J. F. Giblin
A. L. Meyers, Jr.
G. L. Davis
J. A. McGee
H. L. Rogers
S. V. Festa
Victoria Holland
Gregory P. Hodson
Marshall G. Long
Annette L. Sanchez

                                       38<PAGE>

                                                                    Exhibit 10.1

                        INCENTIVE STOCK OPTION AGREEMENT

      This document sets forth the terms of a Stock Option (the "Option")
granted by Noven Pharmaceuticals, Inc., a Delaware corporation (the "Company"),
pursuant to a Certificate of Stock Option Grant ("Certificate") displayed at the
website of AST StockPlan, Inc. The Certificate, which specifies the person to
whom the Option is granted ("Grantee") and other specific details of the grant,
and the electronic acceptance of the Certificate at the website of AST
StockPlan, Inc., 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 purchase 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 Option. Subject to the terms and conditions of the Plan and this
Option, Company hereby grants to Grantee the right and option (the "Option") to
purchase all or any part of the aggregate number of shares (the "Option Shares")
of the common stock of Company, par value $.0001 per share ("Common Stock")
specified on the Certificate, which Option shall constitute an "incentive stock
option" under the Plan, at the grant price listed in the Certificate (the
"Option Price"), during the period (the "Option Period") and subject to the
conditions hereinafter set forth. To the extent that the aggregate fair market
value (determined at the time of grant) of Option Shares with respect to which
incentive stock options are exercisable for the first time by the Grantee during
any calendar year under all plans of the Company and its Affiliates exceeds
$100,000, the options or portions thereof which exceed such limit (according to
the order in which they were granted) shall be treated as nonqualified stock
options. It is understood that there is no assurance that the Option will, in
fact, be treated as an incentive stock option; provided, however, that the
failure of this Option to qualify as an incentive stock option shall not be
deemed to impair this Option in any manner and this Option shall, instead, be
deemed to be and be treated as a nonqualified stock option.

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

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Incentive Stock Option Agreement

3. Exercisability. Subject to the limitations of the Plan and this Option, the
Option shall be exercisable according to the vesting schedule specified on the
Certificate. An installment of this Option 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 Option shall become
exercisable with respect to all of the Option Shares (to the extent it is not
then otherwise exercisable) as follows:

      A. The Option 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 Option 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.

The Option may be exercised on or after the Date of Termination only as to that
portion of the Option Shares 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 Option Period shall terminate and this Option shall not be
exercisable after the Company's close of business on the last business day that
occurs prior to the Option Expiration Date. The "Option Expiration Date" shall
be the earliest to occur of:

      A. the Option 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

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Incentive Stock Option Agreement

(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

      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 Option Exercise. Subject to this Agreement and the Plan, the Option
may be exercised in whole or in part 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 last business day that occurs prior to the Option
Expiration Date. Such notice shall specify the number of shares of Common Stock
which the Grantee elects to purchase, and shall be accompanied by payment of the
Option Price for such shares of Common Stock indicated by the Grantee's
election. Payment shall be by cash or by check payable to the Company. Except as
otherwise provided by the Committee before the Option is exercised: (i) all or a
portion of the Option Price may be paid by the Grantee by delivery of shares of
Common Stock owned by the Grantee and acceptable to the Committee having an
aggregate fair market value (valued as of the date of exercise) that is equal to
the amount of cash that would otherwise be required; and (ii) the Grantee may
pay the Option Price by authorizing a third party to sell shares of Common Stock
(or a sufficient portion of the shares) acquired upon exercise of the Option and
remit to the Company a sufficient portion of the sale proceeds to pay the entire
Option Price and any tax withholding resulting from such exercise. The Option
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.

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 Option is 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 Option 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

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Incentive Stock Option Agreement

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 Option prior to such transfer. The foregoing right to transfer the Option
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 Option. 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.

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) 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 as an Outside Director of the Company;
provided, however, that in the case of this clause c, that 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 120 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.

                                  Page 4 of 7
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Incentive Stock Option Agreement

9. Forfeiture Provisions.

      A. Forfeiture of option gain and unexercised options 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 Option during the twelve
months following any exercise of all or any portion of this Option, or (b)
during the twelve 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 Option shall 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 Option 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 Option during such twelve 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 Grantee's
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 Option, 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

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Incentive Stock Option 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 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 a committee of the Company's
Board of Directors (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. Notification of Disposition. The Grantee agrees to notify the Company
immediately if any shares acquired upon exercise of the Option are disposed of
in any way, including by sale or gift, before the later of two (2) years after
the Grant Date or one (1) year after the transfer of the shares to the Grantee
upon exercise of the Option.

13. 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.

14. Not An Employment Contract. The Option 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.

15. 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.

16. Fractional Shares. In lieu of issuing a fraction of a share upon any
exercise of the Option, resulting from an adjustment of the Option pursuant to
paragraph 14 of the Plan or otherwise, the Company will be entitled to pay to
the Grantee an amount equal to the fair market value of such fractional share.

                                  Page 6 of 7
<PAGE>

Incentive Stock Option Agreement

17. No Rights As Shareholder. The Grantee shall not have any rights of a
shareholder with respect to the Option Shares, until a stock certificate has
been duly issued following exercise of the Option as provided herein.

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

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

20. 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 Option subject to all of the terms and provisions thereof.
Grantee has reviewed the Plan and this Option in their entirety, has had an
opportunity to obtain the advice of counsel and Grantee's tax advisor prior to
accepting this Option, and fully understands all provisions of the Plan and this
Option.

21. Acknowledgement of Grantee. As a material inducement to Company to grant the
Option 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 AST StockPlan)

                                  Page 7 of 7

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