Document:

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                                                                    EXHIBIT 10.7

                              EMPLOYMENT AGREEMENT
                               (CHANGE IN CONTROL)

         This Employment Agreement, dated as of _____, 1999, is entered into
between Noven Pharmaceuticals, Inc., a Delaware corporation (the "COMPANY"), and
________ (the "EXECUTIVE").

         The Board of Directors of the Company (the "BOARD"), has determined
that it is in the best interests of the Company and its shareholders to assure
that the company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control (as
defined in Section 2) of the Company. The Board believes it is imperative to
diminish the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control and
to encourage the Executive's full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control and to
provide the Executive with compensation and benefits arrangements upon a Change
of Control which ensure that the compensation and benefits expectations of the
Executive will be satisfied and which are competitive with those of other
corporations. Therefore, in order to accomplish these objectives, the Board has
caused the Company to enter into this Agreement.

         In consideration of the foregoing and the mutual promises contained
below, the parties agree as set forth below.

         1.  CERTAIN DEFINITIONS.

         (a) "EFFECTIVE DATE" shall mean the first date during the Change of
Control Period (as defined in Section 1(b)) on which a Change of Control occurs.
Anything in this Agreement to the contrary notwithstanding, if a Change of
Control occurs and if the Executive's employment with the company is terminated
prior to the date on which the Change of Control occurs, and if it is reasonably
demonstrated by the Executive that such termination of employment (i) was at the
request of a third party who has taken steps reasonably calculated to effect the
Change of Control or (ii) otherwise arose in connection with or in anticipation
of the Change of Control, then for all purposes of this Agreement the "Effective
Date" shall mean the date immediately prior to the date of such termination of
employment.

         (b) "CHANGE OF CONTROL PERIOD" shall mean the period commencing on the
date hereof and ending on the third anniversary of such date; provided, however,
that commencing on the date one year after the date hereof, and on each annual
anniversary of such date (such date and each annual anniversary thereof shall be
hereinafter referred to as the "RENEWAL DATE") the Change of Control Period may
be extended by the Company

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so as to terminate three years from such Renewal Date by the Company giving
notice to the Executive that the Change of Control Period shall be so extended.

         2. CHANGE OF CONTROL. For the purpose of this Agreement, a "CHANGE OF
CONTROL" shall mean:

         (a) The acquisition by any individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the "EXCHANGE ACT")) (a "PERSON") of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of 40% or more of
either (i) the then outstanding shares of common stock of the Company (the
"OUTSTANDING COMPANY COMMON STOCK") or (ii) the combined voting power of the
then outstanding voting securities of the Company entitled to vote generally in
the election of directors (the "OUTSTANDING COMPANY VOTING SECURITIES");
provided, however, that the following acquisitions shall not constitute a Change
of Control: (i) any acquisition directly from the Company (excluding an
acquisition by virtue of the exercise of a conversion privilege), (ii) any
acquisition by the Company, (iii) any acquisition by any employee benefit plan
(or related trust) sponsored or maintained by the Company or any corporation
controlled by the Company or (iv) any acquisition by any corporation pursuant to
a reorganization, merger or consolidation, if, following such reorganization,
merger or consolidation, the conditions described in clauses (i), (ii) and (iii)
of subsection (c) of this Section 2 are satisfied; or

         (b) Individuals who, as of the date hereof, constitute the Board (the
"INCUMBENT BOARD") cease for any reason to constitute at least a majority of the
Board; provided, however, that any individual becoming a director subsequent to
the date hereof whose election, or nomination for election by the Company's
shareholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of either an actual or threatened election contest (as such terms are
used in Rule 14a-1l of Regulation 14A promulgated under the Exchange Act) or
other actual or threatened solicitation of proxies or consents by or on behalf
of a Person other than the Board; or

         (c) Approval by the shareholders of the Company of a reorganization,
merger or consolidation, in each case, unless, following such reorganization,
merger or consolidation, (i) more than 70% of, respectively, the then
outstanding shares of common stock of the corporation resulting from such
reorganization, merger or consolidation and the combined voting power of the
then outstanding voting securities of such corporation entitled to vote
generally in the election of directors is then beneficially owned, directly or
indirectly, by all or substantially all of the individuals and entities who were
the beneficial owners, respectively, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities immediately prior to such reorganization,
merger or consolidation in substantially the same proportions as their
ownership,

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immediately prior to such reorganization, merger or consolidation, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities, as
the case may be, (ii) no Person (excluding the Company, any employee benefit
plan (or related trust) of the Company or such corporation resulting from such
reorganization, merger or consolidation and any Person beneficially owning,
immediately prior to such reorganization, merger or consolidation, directly or
indirectly, 20% or more of the Outstanding Company Common Stock or Outstanding
Company Voting Securities, as the case may be) beneficially owns, directly or
indirectly, 40% or more of, respectively, the then outstanding shares of common
stock of the corporation resulting from such reorganization, merger or
consolidation or the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of
directors and (iii) at least a majority of the members of the board of directors
of the corporation resulting from such reorganization, merger or consolidation
were members of the Incumbent Board at the time of the execution of the initial
agreement providing for such reorganization, merger or consolidation; or

         (d) Approval by the shareholders of the Company of (i) a complete
liquidation or dissolution of the Company or (ii) the sale or other disposition
of all or substantially all of the assets of the Company, other than to a
corporation, with respect to which following such sale or other disposition, (A)
more than 70% of, respectively, the then outstanding shares of common stock of
such corporation and the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such sale or other disposition in
substantially the same proportion as their ownership, immediately prior to such
sale or other disposition, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be, (B) no Person
(excluding the Company and any employee benefit plan (or related trust) of the
Company or such corporation and any Person beneficially owning, immediately
prior to such sale or other disposition, directly or indirectly, 20% or more of
the Outstanding Company Common Stock or Outstanding Company Voting Securities,
as the case may be) beneficially owns, directly or indirectly, 40% or more of,
respectively, the then outstanding shares of common stock of such corporation
and the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors and (C) at
least a majority of the members of the board of directors of such corporation
were members of the Incumbent Board at the time of the execution of the initial
agreement or action of the Board providing for such sale or other disposition of
assets of the Company.

         3. EMPLOYMENT PERIOD. The Company hereby agrees to continue the
Executive in its employ, and the Executive hereby agrees to remain in the employ
of the Company, in accordance with the terms and provisions of this Agreement,
for the period commencing on the Effective Date and ending on the second
anniversary of such date (the "EMPLOYMENT PERIOD").

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         4. TERMS OF EMPLOYMENT.

         (a) POSITION AND DUTIES.

                  (i) During the Employment Period, (A) the Executive's position
(including status, offices, titles and reporting requirements), authority,
duties and responsibilities shall be at least commensurate in all material
respects with the most significant of those held, exercised and assigned at any
time during the 90-day period immediately preceding the Effective Date and (B)
the Executive's services shall be performed at the location where the Executive
was employed immediately preceding the Effective Date or any office which is the
headquarters of the Company and is less than 35 miles from such location.

                  (ii) During the Employment Period, and excluding any periods
of vacation and sick leave to which the Executive is entitled, the Executive
agrees to devote reasonable attention and time during normal business hours to
the business and affairs of the Company and, to the extent necessary to
discharge the responsibilities assigned to the Executive hereunder, to use the
Executive's reasonable best efforts to perform faithfully and efficiently such
responsibilities. During the Employment Period it shall not be a violation of
this Agreement for the Executive to (A) serve on corporate, civic or charitable
boards or committees, (B) deliver lectures, fulfill speaking engagements or
teach at educational institutions and (C) manage personal investments, so long
as such activities do not significantly interfere with the performance of the
Executive's responsibilities as an employee of the Company in accordance with
this Agreement. It is expressly understood and agreed that to the extent that
any such activities have been conducted by the Executive prior to the Effective
Date, the continued conduct of such activities (or the conduct of activities
similar in nature and scope thereto) subsequent to the Effective Date shall not
thereafter be deemed to interfere with the performance of the Executive's
responsibilities to the Company.

         (b) COMPENSATION.

                  (i) BASE SALARY. During the Employment Period, the Executive
shall receive an annual base salary ("ANNUAL BASE SALARY"), which shall be paid
in equal installments on a monthly or more frequent basis, at least equal to
twelve times the highest monthly base salary paid or payable to the Executive by
the Company and its affiliated companies in respect of the twelve-month period
immediately preceding the month in which the Effective Date occurs. During the
Employment Period, the Annual Base Salary shall be reviewed at least annually
and shall be increased at any time and from time to time as shall be
substantially consistent with increases in base salary generally awarded in the
ordinary course of business to other peer executives of the Company and its
affiliated companies. Any increase in Annual Base Salary shall not serve to
limit or reduce any other obligation to the Executive under this Agreement.
Annual Base Salary shall not be reduced after any such increase and the term
Annual

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Base Salary as utilized in this Agreement shall refer to Annual Base
Salary as so increased. As used in this Agreement, the term "AFFILIATED
COMPANIES" shall include any company controlled by, controlling or under common
control with the Company.

                  (ii) ANNUAL BONUS. In addition to Annual Base Salary, the
Executive shall be awarded, for each fiscal year ending during the Employment
Period, an annual bonus (the "ANNUAL BONUS") in cash at least equal to the
average annualized (for any fiscal year consisting of less than twelve full
months or with respect to which the Executive has been employed by the Company
for less than twelve full months) bonus paid or payable, including by reason of
any deferral, to the Executive by the Company and its affiliated companies in
respect of the three fiscal years immediately preceding the fiscal year in which
the Effective Date occurs (the "RECENT AVERAGE BONUS"). Each such Annual Bonus
shall be paid no later than the end of the third month of the fiscal year next
following the fiscal year for which the Annual Bonus is awarded, unless the
Executive shall elect to defer the receipt of such Annual Bonus.

                  (iii) INCENTIVE, SAVINGS AND RETIREMENT PLANS. During the
Employment Period, the Executive shall be entitled to participate in all
incentive, savings and retirement plans, practices, policies and programs
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practice, policies and programs
provide the Executive with incentive opportunities (measured with respect to
both regular and special incentive opportunities, to the extent, if any, that
such distinction is applicable), savings opportunities and retirement benefit
opportunities, in each case, less favorable, in the aggregate, than the most
favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect at any
time during the 90-day period immediately preceding the Effective Date or if
more favorable to the Executive, those provided generally at any time after the
Effective Date to other peer executives of the Company and its affiliated
companies.

                  (iv) WELFARE BENEFIT PLANS. During the Employment Period, the
Executive and/or the Executive's family, as the case may be, shall be eligible
for participation in and shall receive all benefits under welfare benefit plans,
practices, policies and programs provided by the Company and its affiliated
companies (including, without limitation, medical, prescription, dental,
disability, salary continuance, employee life, group life, accidental death and
travel accident insurance plans and programs) to the extent applicable generally
to other peer executives of the Company and its affiliated companies, but in no
event shall such plans, practices, policies and programs provide the Executive
with benefits which are less favorable, in the aggregate, than the most
favorable of such plans, practices, policies and programs in effect for the
Executive at any time during the 90-day period immediately preceding the
Effective Date or, if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company and
its affiliated companies.

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                  (v) EXPENSES. During the Employment Period, the Executive
shall be entitled to receive prompt reimbursement for all reasonable employment
expenses incurred by the Executive in accordance with the most favorable
policies, practices and procedures of the Company and its affiliated companies
in effect for the Executive at any time during the 90-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other peer executives of
the Company and its affiliated companies.

                  (vi) FRINGE BENEFITS. During the Employment Period, the
Executive shall be entitled to fringe benefits in accordance with the most
favorable plans, practices, programs and policies of the Company and its
affiliated companies in effect for the Executive at any time during the 90-day
period immediately preceding the Effective Date or, if more favorable to the
Executive, as in effect generally at any time thereafter with respect to other
peer executives of the Company and its affiliated companies.

                  (vii) OFFICE AND SUPPORT STAFF. During the Employment Period,
the Executive shall be entitled to an office or offices of a size and with
furnishings and other appointments, and to exclusive personal secretarial and
other assistance, at least equal to the most favorable of the foregoing provided
to the Executive by the Company and its affiliated companies at any time during
the 90-day period immediately preceding the Effective Date or, if more favorable
to the Executive, as provided generally at any time thereafter with respect to
other peer executives of the Company and its affiliated companies.

                  (viii) VACATION. During the Employment Period, the Executive
shall be entitled to paid vacation in accordance with the most favorable plans,
policies, programs and practices of the Company and its affiliated companies as
in effect for the Executive at any time during the 90-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other peer executives of
the Company and its affiliated companies.

                  (ix) "PEER EXECUTIVES." For purposes of this Agreement,
references to "peer executives of the Company and its affiliated companies"
shall refer only to Executives based in the United States.

         5. TERMINATION OF EMPLOYMENT.

         (a) DEATH OR DISABILITY. The Executive's employment shall terminate
automatically upon the Executive's death during the Employment Period. If the
Company determines in good faith that the Disability of the Executive has
occurred during the Employment Period (pursuant to the definition of Disability
set forth below), it may give to the Executive written notice in accordance with
Section 12(b) of its intention to terminate the Executive's employment. In such
event, the Executive's employment with the Company shall terminate effective on
the 30th day after receipt of such notice by the Executive (the "DISABILITY
EFFECTIVE DATE"), provided that, within the 30 days after

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such receipt, the Executive shall not have returned to full-time performance of
the Executive's duties. For purposes of this Agreement, "DISABILITY" shall mean
the absence of the Executive from the Executive's duties with the Company on a
full-time basis for 180 consecutive business days as a result of incapacity due
to mental or physical illness which is determined to be total and permanent by a
physician selected by the Company or its insurers and acceptable to the
Executive or the Executive's legal representative (such agreement as to
acceptability not to be withheld unreasonably).

         (b) CAUSE. The Company may terminate the Executive's employment during
the Employment Period for Cause. For purposes of this Agreement, "Cause" shall
mean (i) a material breach by the Executive of the Executive's obligations under
Section 4(a) (other than as a result of incapacity due to physical or mental
illness) which is demonstrably willful and deliberate on the Executive's part,
which is committed in bad faith or without reasonable belief that such breach is
in the best interests of the Company and which is not remedied in a reasonable
period of time after receipt of written notice from the Company specifying such
breach or (ii) the conviction of the Executive of a felony involving moral
turpitude.

         (c) GOOD REASON. The Executive's employment may be terminated during
the Employment Period by the Executive for Good Reason. For purposes of this
Agreement, "GOOD REASON" shall mean:

                  (i) the assignment to the Executive of any duties inconsistent
in any respect with the Executive's position (including status, offices, titles
and reporting requirements), authority, duties or responsibilities as
contemplated by Section 4(a) or any other action by the Company which results in
a diminution in such position (including any action which results in a
dimunition of status, offices, titles and reporting levels or requirements),
authority, duties or responsibilities, excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and which is
remedied by the Company promptly after receipt of notice thereof given by the
Executive;

                  (ii) any failure by the Company to comply with any of the
provisions of Section 4(b), other than an isolated, insubstantial and
inadvertent failure not occurring in bad faith and which is remedied by the
Company promptly after receipt of notice thereof given by the Executive;

                  (iii) the Company's requiring the Executive to be based at any
office or location other than that described in Section 4(a)(i)(B);

                  (iv) any purported termination by the Company of the
Executive's employment otherwise than as expressly permitted by this Agreement;
or

                  (v) any failure by the Company to comply with and satisfy
Section 11(c), provided that such successor has received at least ten days prior
written notice from the Company or the Executive of the requirements of Section
11(c).

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For purposes of this Section 5(c), any good faith determination of "Good Reason"
made by the Executive shall be conclusive.

         (d) NOTICE OF TERMINATION. Any termination by the Company for Cause, or
by the Executive for Good Reason, shall be communicated by Notice of Termination
to the other party hereto given in accordance with Section 12(b). For purposes
of this Agreement, a "NOTICE OF TERMINATION" means a written notice which (i)
indicates the specific termination provision in this Agreement relied upon, (ii)
to the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive's
employment under the provision so indicated and (iii) if the Date of Termination
(as defined below) is other than the date of receipt of such notice, specifies
the termination date (which date shall be not more than 15 days after the giving
of such notice). The failure by the Executive or the Company to set forth in the
Notice of Termination any fact or circumstance which contributes to a showing of
Good Reason or Cause shall not waive any right of the Executive or the Company
hereunder or preclude the Executive or the Company from asserting such fact or
circumstance in enforcing the Executive's or the Company's rights hereunder.

         (e) DATE OF TERMINATION. "DATE OF TERMINATION" means (i) if the
Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the Executive's
employment is terminated by the Company other than for Cause or Disability, the
Date of Termination shall be the date on which the Company notifies the
Executive of such termination and (iii) if the Executive's employment is
terminated by reason of death or Disability, the Date of Termination shall be
the date of death of the Executive or the Disability Effective Date, as the case
may be.

         6. OBLIGATIONS OF THE COMPANY UPON TERMINATION.

         (a) GOOD REASON: OTHER THAN FOR CAUSE. DEATH OR DISABILITY. If, during
the Employment Period, the Company shall terminate the Executive's employment
other than for Cause or Disability or the Executive shall terminate employment
for Good Reason:

                  (i) the Company shall pay to the Executive in a lump sum in
cash within 30 days after the Date of Termination the aggregate of the following
amounts:

                           A. the sum of (1) the Executive's Annual Base Salary
through the Date of Termination to the extent not theretofore paid, (2) the
product of (x) the greater of (i) the Annual Bonus paid or payable, including by
reason of any deferral, to the Executive (and annualized for any fiscal year
consisting of less than twelve full months or for which the Executive has been
employed for less than twelve full months) for the most recently completed
fiscal year during the Employment Period, if any, and

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(ii) the Recent Average Bonus (such greater amount shall be hereinafter referred
to as the "HIGHEST ANNUAL BONUS") and (y) a fraction, the numerator of which is
the number of days in the current fiscal year through the Date of Termination,
and the denominator of which is 365, and (3) any compensation previously
deferred by the Executive (together with any accrued interest or earnings
thereon) and any accrued vacation pay, in each case to the extent not
theretofore paid (the sum of the amounts described in clauses (1), (2), and (3)
shall be hereinafter referred to as the "ACCRUED OBLIGATIONS"); and

                           B. the amount (such amount shall be hereinafter
referred to as the "SEVERANCE AMOUNT") equal to the product of (1) two and
(2) the sum of (x) the Executive's Annual Base Salary and (y) the Highest Annual
Bonus; and, provided further, that such amount shall be reduced by the present
value (determined as provided in Section 280G(d)(4) of the Internal Revenue Code
of 1986, as amended (the "CODE")) of any other amount of severance relating to
salary or bonus continuation to be received by the Executive upon termination of
employment of the Executive under any agreement, severance plan, policy or
arrangement of the Company; and

                  (ii) for the remainder of the Employment Period, or such
longer period as any plan, program, practice or policy may provide, the Company
shall continue benefits to the Executive and/or the Executive's family at least
equal to those which would have been provided to them in accordance with the
plans, programs, practices and policies described in Section 4(b) if the
Executive's employment had not been terminated in accordance with the most
favorable plans, practices, programs or policies of the Company and its
affiliated companies as in effect and applicable generally to other peer
executives and their families during the 90-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally at
any time thereafter with respect to other peer executives of the Company and its
affiliated companies and their families, provided, however, that if the
Executive becomes re-employed with another employer and is eligible to receive
medical or other welfare benefits under another employer provided plan, the
medical and other welfare benefits described herein shall be secondary to those
provided under such other plan during such applicable period of eligibility
(such continuation of such benefits for the applicable period herein set forth
shall be hereinafter referred to as "WELFARE BENEFIT CONTINUATION"). For
purposes of determining eligibility of the Executive for retiree benefits
pursuant to such plans, practices, programs and policies, the Executive shall be
considered to have remained employed until the end of the Employment Period and
to have retired on the last day of such period; and

                  (iii) to the extent not theretofore paid or provided, the
Company shall timely pay or provide to the Executive and/or the Executive's
family any other amounts or benefits required to be paid or provided or which
the Executive and/or the Executive's family is eligible to receive pursuant to
this Agreement and under any plan, program, policy or practice or contract or
agreement of the Company and its affiliated companies as in effect and
applicable generally to other peer executives and their families during the

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90-day period immediately preceding the Effective Date or, if more favorable to
the Executive, as in effect generally thereafter with respect to other peer
executives of the Company and its affiliated companies and their families (such
other amounts and benefits shall be hereinafter referred to as the "OTHER
BENEFITS").

         (b) DEATH. If the Executive's employment is terminated by reason of the
Executive's death during the Employment Period, this Agreement shall terminate
without further obligations to the Executive's legal representatives under this
Agreement, other than for (i) payment of Accrued Obligations (which shall be
paid to the Executive's estate or beneficiary, as applicable, in a lump sum in
cash within 30 days of the Date of Termination) and the timely payment or
provision of the Welfare Benefit Continuation and Other Benefits (excluding, in
each case, Death Benefits (as defined below)) and (ii) payment to the
Executive's estate or beneficiary, as applicable, in a lump sum in cash within
30 days of the Date of Termination of an amount equal to the greater of (A) the
sum of the Severance Amount, and (B) the present value (determined as provided
in Section 260G(d)(4) of the Code) of any cash amount to be received by the
Executive or the Executive's family as a death benefit pursuant to the terms of
any plan, policy or arrangement of the Company and its affiliated companies, but
not including any proceeds of life insurance covering the Executive to the
extent paid for directly or on a contributory basis by the Executive (which
shall be paid in any event as an Other Benefit) (the benefits included in this
clause (B) shall be hereinafter referred to as the "DEATH BENEFITS").

         (c) DISABILITY. If the Executive's employment is terminated by reason
of the Executive's Disability during the Employment Period, this Agreement shall
terminate without further obligations to the Executive, other than for (i)
payment of Accrued Obligations (which shall be paid to the Executive in a lump
sum in cash within 30 days of the Date of Termination) and the timely payment or
provision of the Welfare Benefit Continuation and Other Benefits (excluding, in
each case, Disability Benefits (as defined below)) and (ii) payment to the
Executive in a lump sum in cash within 30 days of the Date of Termination of an
amount equal to the greater of (A) the sum of the Severance Amount, and (B) the
present value (determined as provided in Section 280G(d)(4) of the Code) of any
cash amount to be received by the Executive as a disability benefit pursuant to
the terms of any plan, policy or arrangement of the Company and its affiliated
companies, but not including any proceeds of disability insurance covering the
Executive to the extent paid for directly or on a contributory basis by the
Executive (which shall be paid in any event as an Other Benefit) (the benefits
included in this clause (B) shall be hereinafter referred to as the "DISABILITY
BENEFITS").

         (d) CAUSE; OTHER THAN FOR GOOD REASON. If the Executive's employment
shall be terminated for Cause during the Employment Period, this Agreement shall
terminate without further obligations to the Executive other than the obligation
to pay to the Executive Annual Base Salary through the Date of Termination plus
the amount of any compensation previously deferred by the Executive, in each
case to the extent theretofore unpaid. If the Executive terminates employment
during the Employment

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Period, excluding a termination for Good Reason, this Agreement shall terminate
without further obligations to the Executive, other than for Accrued Obligations
and the timely payment or provision of Other Benefits. In such case, all Accrued
Obligations shall be paid to the Executive in a lump sum in cash within 30 days
of the Date of Termination.

         7. NON-EXCLUSIVITY OF RIGHTS. Except as provided in Sections 6(a)(ii),
6(b) and 6(c), nothing in this Agreement shall prevent or limit the Executive's
continuing or future participation in any plan, program, policy or practice
provided by the Company or any of its affiliated companies and for which the
Executive may qualify, nor shall anything herein limit or otherwise affect such
rights as the Executive may have under any contract or agreement with the
Company or any of its affiliated companies. Amounts which are vested benefits or
which the Executive is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company or any of
its affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract or
agreement except as explicitly modified by this Agreement.

         8. FULL SETTLEMENT: RESOLUTION OF DISPUTES.

         (a) The payment by the Company to the Executive of the amounts required
by this Agreement shall serve as a full settlement of any and all claims which
the Executive may have against the Company arising out of or in connection with
the termination of the Executive's employment by the Company.

         (b) The Company's obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense or other claim, right
or action which the Company may have against the Executive or others. In no
event shall the Executive be obligated to seek other employment or take any
other action by way of mitigation of the amounts payable to the Executive under
any of the provisions of this Agreement and, except as provided in Section
6(a)(ii), such amounts shall not be reduced whether or not the Executive obtains
other employment. The Company agrees to pay promptly as incurred, to the full
extent permitted by law, all legal fees and expenses which the Executive may
reasonably incur as a result of any dispute or contest (regardless of the
outcome thereof) by the Company, the Executive or others of the validity or
enforceability of, or liability under, any provision of this Agreement or any
guarantee of performance thereof (including as a result of any dispute or
contest by the Executive about the amount of any payment pursuant to this
Agreement), plus in each case interest on any delayed payment at the applicable
Federal rate provided for in Section 7872(f)(2)(A) of the Code.

         (c) If there shall be any dispute between the Company and the Executive
(i) in the event of any termination of the Executive's employment by the
Company, whether such termination was for Cause, or (ii) in the event of any
termination of employment by the Executive, whether Good Reason existed, then,
unless and until there is a final,

                                      -11-
<PAGE>   12

nonappealable judgment by a court of competent jurisdiction declaring that such
termination was for Cause or that the determination by the Executive of the
existence of Good Reason was not made in good faith, the Company shall pay all
amounts, and provide all benefits, to the Executive and/or the Executive's
family or other beneficiaries, as the case may be, that the Company would be
required to pay or provide pursuant to Section 6(a) as though such termination
were by the Company without Cause or by the Executive with Good Reason;
provided, however, that the Company shall not be required to pay any disputed
amounts pursuant to this paragraph except upon receipt of an undertaking by or
on behalf of the Executive to repay all such amounts to which the Executive is
ultimately adjudged by such court not to be entitled.

         9. CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY.

         (a) Anything in this Agreement to the contrary notwithstanding, in the
event it shall be determined that any payment or distribution by the Company to
or for the benefit of the Executive (whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise, but
determined without regard to any additional payments required under this Section
9) (a "PAYMENT") would be subject to the excise tax imposed by Section 4999 of
the Code or any interest or penalties are incurred by the Executive with respect
to such excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the "EXCISE TAX"), then
the Executive shall be entitled to receive an additional payment (a "GROSS-UP
PAYMENT") in an amount such that after payment by the Executive of all taxes
(including any interest or penalties imposed with respect to such taxes),
including, without limitation, any income taxes (and any interest and penalties
imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment,
the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments.

         (b) Subject to the provisions of Section 9(c), all determinations
required to be made under this Section 9, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the assumptions
to be utilized in arriving at such determination, shall be made by Deloitte &
Touche LLP (the "ACCOUNTING FIRM") which shall provide detailed supporting
calculations both to the Company and the Executive within 15 business days of
the receipt of notice from the Executive that there has been a Payment, or such
earlier time as is requested by the Company. In the event that the Accounting
Firm is serving as accountant or auditor for the individual, entity or group
effecting the Change of Control, the Executive shall appoint another nationally
recognized accounting firm to make the determinations required hereunder (which
accounting firm shall then be referred to as the Accounting Firm hereunder). All
fees and expenses of the Accounting Firm shall be borne solely by the Company.
Any Gross-Up Payment, as determined pursuant to this Section 9, shall be paid by
the Company to the Executive within five days of the receipt of the Accounting
Firm's determination. If the Accounting Firm determines that no Excise Tax is
payable by the Executive, it shall furnish the Executive with a written opinion
that failure to report the Excise Tax on the Executive's applicable federal
income tax return would not result in the imposition of a

                                      -12-
<PAGE>   13

negligence or similar penalty. Any determination by the Accounting Firm shall be
binding upon the Company and the Executive. As a result of the uncertainty in
the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Company should have been made
("UNDERPAYMENT"), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts its remedies pursuant to
Section 9(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

         (c) The Executive shall notify the Company in writing of any claim by
the Internal Revenue Service that, if successful, would require the payment by
the Company of the Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than ten business days after the Executive is informed
in writing of such claim and shall apprise the Company of the nature of such
claim and the date on which such claim is requested to be paid. The Executive
shall not pay such claim prior to the expiration of the 30-day period following
the date on which it gives such notice to the Company (or such shorter period
ending on the date that any payment of taxes with respect to such claim is due).
If the Company notifies the Executive in writing prior to the expiration of such
period that it desires to contest such claim, the Executive shall: (i) give the
Company any information reasonably requested by the Company relating to such
claim, (ii) take such action in connection with contesting such claim as the
Company shall reasonably request in writing from time to time, including,
without limitation, accepting legal representation with respect to such claim by
an attorney reasonably selected by the Company, (iii) cooperate with the Company
in good faith in order effectively to contest such claim, and (iv) permit the
Company to participate in any proceedings relating to such claim; provided,
however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold the Executive harmless, on an after-tax
basis, for any Excise Tax or income tax (including interest and penalties with
respect thereto) imposed as a result of such representation and payment of costs
and expenses. Without limitation on the foregoing provisions of this Section
9(c), the Company shall control all proceedings taken in connection with such
contest and, at its sole option, may pursue or forgo any and all administrative
appeals, proceedings, hearings and conferences with the taxing authority in
respect of such claim and may, at its sole option, either direct the Executive
to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and the Executive agrees to prosecute such contest to a
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and hold
the Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such

                                      -13-
<PAGE>   14

advance; and further provided that any extension of the statute of limitations
relating to payment of taxes for the taxable year of the Executive with respect
to which such contested amount is claimed to be due is limited solely to such
contested amount. Furthermore, the Company's control of the contest shall be
limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and the Executive shall be entitled to settle or contest, as the case
may be, any other issue raised by the Internal Revenue Service or any other
taxing authority.

         (d) If, after the receipt by the Executive of an amount advanced by the
Company pursuant to Section 9(c), the Executive becomes entitled to receive any
refund with respect to such claim, the Executive shall (subject to the Company's
complying with the requirements of Section 9(c)) promptly pay to the Company the
amount of such refund (together with any interest paid or credited thereon after
taxes applicable thereto). If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim and
the Company does not notify the Executive in writing of its intent to contest
such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

         10. CONFIDENTIAL INFORMATION. The Executive shall hold in a fiduciary
capacity for the benefit of the Company all secret or confidential information,
knowledge or data relating to the Company or any of its affiliated companies,
and their respective businesses, which shall have been obtained by the Executive
during the Executive's employment by the Company or any of its affiliated
companies and which shall not be or become public knowledge (other than by acts
by the Executive or representatives of the Executive in violation of this
Agreement). After termination of the Executive's employment with the Company,
the Executive shall not, without the prior written consent of the Company or as
may otherwise be required by law or legal process, communicate or divulge any
such information, knowledge or data to anyone other than the Company and those
designated by it. In no event shall an asserted violation of the provisions of
this Section 10 constitute a basis for deferring or withholding any amounts
otherwise payable to the Executive under this Agreement.

         11. SUCCESSORS.

         (a) This Agreement is personal to the Executive and without the prior
written consent of the Company shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement
shall inure to the benefit of and be enforceable by the Executive's legal
representatives.

         (b) This Agreement shall inure to the benefit of and be binding upon
the Company and its successors and assigns.

                                      -14-
<PAGE>   15

         (c) The Company will require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company to assume expressly and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place.
As used in this Agreement, "Company" shall mean the Company as hereinbefore
defined and any successor to its business and/or assets as aforesaid which
assumes and agrees to perform this Agreement by operation of law, or otherwise.

         12. MISCELLANEOUS.

         (a) This Agreement shall be governed by and construed in accordance
with the laws of the State of Florida, without reference to principles of
conflict of laws. The captions of this Agreement are not part of the provisions
hereof and shall have no force or effect. This Agreement may not be amended or
modified otherwise than by a written agreement executed by the parties hereto or
their respective successors and legal representatives.

         (b) All notices and other communications hereunder shall be in writing
and shall be given by hand delivery to the other party or by registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

                  If to the Executive:

                  If to the Company:       Noven Pharmaceuticals, Inc.
                                           11960 S.W. 144th Street
                                           Miami, Florida 33186
                                           Attention: General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

         (c) The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement.

         (d) The Company may withhold from any amounts payable under this
Agreement such Federal, state or local taxes as shall be required to be withheld
pursuant to any applicable law or regulation.

         (e) The Executive's or the Company's failure to insist upon strict
compliance with any provision hereof or any other provision of this Agreement or
the failure to assert

                                      -15-
<PAGE>   16

any right the Executive or the Company may have hereunder, including, without
limitation, the right of the Executive to terminate employment for Good Reason
pursuant to Section 5(c)(i)-(v), shall not be deemed to be a waiver of such
provision or right or any other provision or right of this Agreement.

         (f) The Executive and the Company acknowledge that, except as may
otherwise be provided under any other written agreement between the Executive
and the Company, the employment of the Executive by the Company is "at will"
and, prior to the Effective Date, may be terminated by either the Executive or
the Company at any time. Moreover, if prior to the Effective Date, the
Executive's employment with the Company terminates, then the Executive shall
have no further rights under this Agreement. From and after the Effective Date,
this Agreement shall supersede any prior agreement between the parties with
respect to the subject matter hereof.

         IN WITNESS WHEREOF, the Executive has hereunto set the Executive's hand
and, pursuant to the authorization from its Board of Directors, the Company has
caused these presents to be executed in its name on its behalf, all as of the
day and year first above written.

                                          Noven Pharmaceuticals, Inc.

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

                                          ---------------------------
                                          Executive

                                      -16-
<PAGE>   17
                                  SCHEDULE 10.7

         The Company has entered into identical employment agreements (change in
control), a form of which is attached as Exhibit 10.7, with the following
executive officers:

                  Steven Sablotsky (Chairman of the Board)

                  James B. Messiry (Vice President and Chief Financial Officer)<PAGE>   1
                                                                   Exhibit 10.17

================================================================================

                AMENDED AND RESTATED LIMITED ASSIGNMENT AGREEMENT

                                  By and Among

                      NOVARTIS PHARMACEUTICALS CORPORATION,

                           NOVEN PHARMACEUTICALS, INC.

                                       and

                              VIVELLE VENTURES LLC

                            Dated as of April 1, 1999

================================================================================

<PAGE>   2

                AMENDED AND RESTATED LIMITED ASSIGNMENT AGREEMENT

                  AMENDED AND RESTATED LIMITED ASSIGNMENT AGREEMENT dated as of
April 1, 1999 (this "Agreement") by and among Novartis Pharmaceuticals
Corporation, a Delaware corporation ("Novartis"), as the successor-in-interest
to the Pharmaceuticals Division of Ciba-Geigy Corporation, a New York
corporation ("CIBA"), Vivelle Ventures, LLC, a Delaware limited liability
company ("LLC") and Noven Pharmaceuticals, Inc. a Delaware corporation
("Noven"). Capitalized terms used but not otherwise defined herein shall have
the respective meanings assigned to such terms in that certain Amended and
Restated Supply Agreement dated as of April 1, 1999 by and between Noven and
Novartis (the "Amended and Restated Supply Agreement"), attached hereto as
EXHIBIT A.

                              W I T N E S S E T H:

                  WHEREAS, Novartis, as successor-in-interest to CIBA, and Noven
are parties to the Amended and Restated Supply Agreement, pursuant to which
Noven has agreed to supply Novartis with Finished Product and Novartis has
agreed to purchase annually certain minimum quantities of such Finished Product;

                  WHEREAS, Novartis and Noven have formed LLC for the purpose of
creating a platform to maintain and grow a franchise in women's health, focusing
initially on the manufacture and sale of the 17(beta)-estradiol single active
ingredient in a matrix currently being marketed by Novartis under the trademark
"Vivelle" pursuant to the Restated License Agreement;

                  WHEREAS, Novartis and Noven agreed in connection with the
formation of the LLC that Novartis would, as its contribution to LLC, among
other things, make a limited assignment to LLC of its rights and obligations
under the Supply Agreement as may be amended from time to time; and

                  WHEREAS, LLC desires to obtain the rights under the Amended
and Restated Supply Agreement and is willing to assume the obligation to
purchase the quantities of Finished Product specified in the Amended and
Restated Supply Agreement;

                  NOW THEREFORE, in consideration of the agreements and
covenants set forth above and herein, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree to amend and restate the Limited Assignment Agreement to more particularly
set forth the parties' rights and obligations hereunder as follows:

                  1. ASSIGNMENT AND ASSUMPTION. (a) For the term of this
Agreement, Novartis hereby assigns to LLC its rights under Sections 2.9, 2.10,
4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 6.1, 6.2, 6.3,

<PAGE>   3

7.1, 7.2, 7.3 and Article 8 of the Amended and Restated Supply Agreement (the
"Assigned Sections").

                  (b) For the term of this Agreement, LLC hereby accepts such
assignment and assumes and agrees to perform and discharge the duties and
obligations of Novartis arising under the Assigned Sections.

                  2. CONSENT TO ASSIGNMENT AND ASSUMPTION; RELEASE. For the term
of this Agreement, Noven hereby consents to the assignment by Novartis of the
rights under the Assigned Sections and the assumption by LLC of the performance,
discharge of duties and obligations arising under the Assigned Sections. For the
term of this Agreement, Noven hereby releases Novartis of all its duties and
obligations (including, without limitation, its obligation to purchase the
Annual Purchase Minimum or pay for any Finished Product purchased by LLC)
arising under the Assigned Sections.

                  3. RETENTION OF REMAINING RIGHTS AND OBLIGATIONS.
Notwithstanding the foregoing, Novartis retains all rights and obligations not
assigned to LLC hereby.

                  4. CANADA. Subject to Section 2 of that certain Sublicense
Agreement dated as of May 1, 1998 by and among Novartis, Noven and LLC (the
"Sublicense Agreement"), the parties agree that for purpose of sale to Novartis'
Canadian Affiliate, Novartis may purchase Vivelle (as that term is defined in
that certain Operating Agreement of Vivelle Ventures LLC dated as of May 1, 1998
by and between Novartis and Noven (the "Operating Agreement")) from LLC at the
price at which LLC purchases Vivelle from Noven.

                  5. ABSOLUTE ASSIGNMENT OF ALL RIGHTS AND OBLIGATIONS. In the
event that Noven purchases all of Novartis' Interest (as that term is defined in
the Operating Agreement) in LLC pursuant to Section 9.5 of the Operating
Agreement, Novartis, Noven and LLC shall execute an assignment agreement
assigning all of Novartis' rights and obligations under the Amended and Restated
Supply Agreement to LLC and releasing Novartis from its obligations under the
Amended and Restated Supply Agreement.

                  6. INDEMNIFICATION. LLC agrees and warrants to indemnify,
defend and hold harmless Noven and Novartis from and against any and all claims,
damages, expenses, attorneys' fees, settlements, and judgments arising out of
any injury or damage to a third party alleged to be caused by the Finished
Product supplied by Noven to LLC or manufactured for or by LLC; provided,
however that Noven and/or Novartis notifies LLC within twenty (20) days of
receipt of a claim or action, fully cooperates with LLC in the defense of such
claim or action, and permits LLC to control the defense and settlement of such
claim or action. Notwithstanding the above, LLC does not warrant and shall not
be liable to indemnify Noven from and against any claims, damages, expenses,
attorneys' fees, settlements and judgments arising out of any injury or damage
to a third party caused by latent defects in the

                                       2
<PAGE>   4

Finished Product caused by the negligence or willful misconduct on the part of
Noven, for which Noven shall have the right to control the defense and settle
such claim or action. Noven agrees and warrants to indemnify and hold harmless
LLC from and against any and all claims, damages, expenses, attorneys' fees,
settlements and judgments for personal injury to a third party caused by latent
defects in the Finished Product caused by the negligence or willful misconduct
of Noven. This provision shall survive the expiration or termination of this
Agreement.

                  7. RECALLS. If an authorized government agency of the United
States or any country or territory based on requirements specifically notified
to Noven by LLC shall seize any Finished Product or if LLC deems it necessary to
initiate a voluntary recall for any commercially reasonable reason, LLC shall
immediately notify Noven of such seizure or recall and shall consult with Noven
regarding the timely compliance with all pertinent state or federal regulations
pertaining thereto. Furthermore, each party shall make a permanent and complete
record of all costs incurred thereby, a copy of which shall be delivered to the
other party as soon after the completion of such recall or seizure as
practically may be done. When the cause or reason of said recall or seizure
resides in the negligent failure of Noven to manufacture in accordance with the
Specifications or applicable, notified government rules and regulations, or in
the failure of said product to maintain stability for the period described in
the product labeling, Noven shall reimburse LLC for all reasonable costs
incurred by LLC in effecting such recall or seizure, including all reasonable
credits extended to LLC's customers as a result thereof. When the cause or
reason for said recall or seizure is anything other than that set forth in the
preceding sentence, including, but not limited to, failure by other than Noven
to store, transport or care for the Finished Product, LLC shall bear all costs
of such recall or seizure and indemnify Noven therefrom including reimbursement
for all reasonable costs incurred by Noven in effecting such recall or seizure.

                  8. TERM; TERMINATION. The term of this Agreement and the
Parties' obligations hereunder shall be deemed to have commenced on the earlier
of the termination of the Supply Agreement or the Effective Date (as defined in
the Amended and Restated Supply Agreement) and shall continue in effect until
the earlier to occur of the following events:

                  (a) the dissolution of LLC as provided in Article X of the
Operating Agreement dated as of May 1, 1998 between Novartis and Noven;

                  (b) the termination of the Amended and Restated Supply
Agreement; or

                  (c) the termination of the Restated License Agreement.

                  9. OBLIGATIONS UPON TERMINATION. Except as otherwise agreed by
the parties, within thirty (30) days of the effective date of the expiration or
any termination of this Agreement, LLC and any Supplier in possession of
Know-How shall cease to use and deliver to Noven, upon written request, all
Know-How, to the extent that such use is not permitted by the License Agreement
except for any documents or records which either LLC or the Supplier is required
to retain by law, and Noven shall do the same with respect to any LLC Know-How
in its possession. Noven shall deliver to LLC, at LLC's request and expense, all
Finished Product and preprinted packaging, labeling and stock materials which
are in the possession of Noven, for which LLC shall be obligated to make payment
upon delivery.

                  10. NOTICES. Any notice or communication required or permitted
to be given or made under this Agreement by one of the parties hereto shall be
in writing and shall be

                                       3
<PAGE>   5

deemed to have been sufficiently given or made for all purposes if mailed by
certified mail, postage prepaid, addressed to such other party at its respective
address as follows:

                           (a)      If to Noven, to:

                           Noven Pharmaceuticals, Inc.
                           11960 S.W. 144th Street
                           Miami, FL  33186
                           Attention:  Mr. Robert C. Strauss,
                                       President and Chief Executive Officer
                           Telephone:  (305) 253-5099
                           Facsimile:  (305) 232-1836

                  with a copy to:

                           Noven Pharmaceuticals, Inc.
                           11960 S.W. 144th Street
                           Miami, FL  33186
                           Attention:  General Counsel
                           Telephone:  (305) 253-5099
                           Facsimile:  (305) 232-1836

                  or to such other person or address as Noven shall furnish to
the other parties hereto in writing.

                  (b)      If to Novartis, to:

                           Novartis Pharmaceuticals Corporation
                           59 Route 10
                           East Hanover, NJ  07936
                           Attention:  Office of the CEO
                           Telephone:  (973) 781-8005
                           Facsimile:  (973) 781-7036

                  with copies to:

                           Novartis Pharmaceuticals Corporation
                           59 Route 10
                           East Hanover, NJ  07936
                           Attention:  General Counsel, Legal Department
                           Telephone:  (973) 781-5230
                           Facsimile:  (973) 781-5260

                  and

                           White & Case LLP
                           1155 Avenue of the Americas
                           New York, NY  10036
                           Attention:  William F. Wynne, Jr., Esq.
                           Telephone:  (212) 819-8200
                           Facsimile:  (212) 354-8113

                                       4
<PAGE>   6

                  or to such other person or address as Novartis shall furnish
to the other parties hereto in writing.

                  (c)      If to LLC, to:

                           Vivelle Ventures LLC
                           c/o Noven Pharmaceuticals, Inc.
                           11960 S.W. 144th Street
                           Miami, FL  33186
                           Attention:  Mr. Robert C. Strauss, President
                           Telephone:  (305) 253-5099
                           Facsimile:  (305) 232-1836

                  with copies to:

                           Novartis Pharmaceuticals Corporation
                           59 Route 10
                           East Hanover, NJ  07936
                           Attention:  General Counsel
                           Telephone:  (973) 781-5230
                           Facsimile:  (973) 781-5260

                  and

                           White & Case LLP
                           1155 Avenue of the Americas
                           New York, NY  10036
                           Attention:  William F. Wynne, Jr., Esq.
                           Telephone:  (212) 819-8200
                           Facsimile:  (212) 354-8113

                  or to such other person or address as LLC shall furnish to the
other parties hereto in writing.

                  11. FORCE MAJEURE. Neither party shall be responsible or
liable to the other hereunder for failure or delay in performance of this
Agreement due to any war, fire, accident or other casualty, or any labor
disturbance or act of God or the public enemy, or any other unforeseeable
contingency beyond such party's control. In addition, in the event of the
applicability of this Paragraph 11, the party affected by such force majeure
shall immediately use

                                       5
<PAGE>   7

its best efforts to eliminate, cure and overcome any of such causes and resume
performance of its obligations.

                  12. ASSIGNMENT. This Agreement and all rights and obligations
hereunder are personal to the parties hereto and may not be assigned, other than
to Affiliates of Novartis, without the express prior written consent of the
other. Any assignment or attempt at same in the absence of such prior written
consent shall be void and without effect.

                  13. APPLICABLE LAW. This Agreement shall be construed, and the
rights of the parties determined, in accordance with the laws of the State of
New York without regard to choice of law principles of the State of New York.

                  14. SEVERABILITY. If any one or more of the provisions of this
Agreement shall be held to be invalid, illegal or unenforceable, the validity,
legality or enforceability of the remaining provisions hereof shall not in any
way be affected or impaired thereby. In the event any provisions shall be held
invalid, illegal or unenforceable the parties shall use best efforts to
substitute a valid, legal and enforceable provision, which insofar as possible,
implements the purposes hereof. The same principle shall apply in respect of the
filling of any contractual gap.

                  15. AMENDED AND RESTATED SUPPLY AGREEMENT. Unless otherwise
specified herein, nothing contained in this Agreement shall affect the rights
and obligations of the parties under the Amended and Restated Supply Agreement
or the Restated License Agreement, and the terms and conditions of the Amended
and Restated Supply Agreement and the Restated License Agreement shall remain in
full force and effect.

                  16. NO WAIVER. The failure of any party hereto at any time or
times to require performance of any provisions hereof shall in no manner affect
its right to enforce such provision at a later time. No waiver by any party
hereto of any condition nor the breach of any term, covenant or representation
contained in this Agreement whether by conduct or otherwise in any one or more
instances shall be deemed to be or construed as a further or continuing waiver
of such condition or breach or a waiver of any other condition or deemed to be
or construed as the breach of any other term, covenant or representation in this
Agreement.

                  17. DRAFTSMANSHIP. The parties acknowledge and agree that this
Agreement is the product of extensive negotiation and neither party will be
deemed to have drafted this Agreement.

                  18. ENTIRE AGREEMENT. This Agreement among the parties made on
the date of execution hereof and Section 2 of the Sublicense Agreement,
constitute the entire understanding among the parties relating to the subject
matter hereof, and no amendment or modification to this Agreement shall be valid
or binding upon the parties unless made in writing and signed by the
representatives of such parties.

                  19. COUNTERPARTS. This Agreement and any amendments hereto may
be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together will constitute one and the same instrument.
Delivery of an executed counterpart of a

                                       6
<PAGE>   8

signature page to this Agreement by telecopier shall be as effective as delivery
of a manually executed counterpart of this Agreement.

                                       7
<PAGE>   9

                  IN WITNESS WHEREOF, the parties have caused this Agreement to
be executed by their duly authorized representatives as of the day and year
first written above.

                              NOVARTIS PHARMACEUTICALS CORPORATION

                              By: /s/ Paulo Costa
                                 ---------------------------------
                                 Name:  Paulo Costa
                                 Title: President and Chief Executive Officer
                                 Date:  January 11, 2000

                              NOVEN PHARMACEUTICALS, INC.

                              By: /s/ Steven Sablotsky
                                 ---------------------------------
                                 Name:  Steven Sablotsky
                                 Title: Chairman
                                 Date:  January 19, 2000

                              VIVELLE VENTURES LLC

                              By: /s/ Robert C. Strauss
                                 ---------------------------------
                                 Name:  Robert C. Strauss
                                 Title: President
                                 Date:  January 19, 2000

                                       8

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