We give a microscopic derivation of the spin-spin components of the optical potential for elastic scattering of a nucleon from a target with nonzero spin. A realistic nucleon-nucleon interaction containing direct and exchange terms is used to generate a folded nucleon-nucleus potential whose spin-spin components are treated in distorted-wave Born approximation. We show how folding leads to spin-spin tensor interactions with higher order couplings in the projectile and target spin that have not been explicitly considered before. We place particular emphasis on the polarization transfer coefficient D NN for 200-MeV protons elastically scattered from 10 B, which is rigorously unity in the absence of any spin-spin interactions and for which experimental data exist. We find that deviations of D NN from unity are particularly sensitive to spin-spin exchange terms arising from the nucleon-nucleon tensor interaction and the nuclear wave functions describing the target one-body density matrix. Unpolarized differential cross sections and vector analyzing powers are found to be very insensitive to these terms. In order to determine optical potentials for the exotic nuclear species planned to be created in future radioactive beam facilities, it is necessary to establish optical models that better describe interactions for nucleon scattering from nonzero spin targets. Optical potentials are vital for studying the structure of atomic nuclei, but the full spin dependence of the interaction between nuclei with nonzero nuclear spin has not been fully explored. In many scattering experiments spin-spin effects are averaged out because of random projectile or target spin orientations. However, with the next generation of radioactive beam facilities currently under construction there is a vital need for nuclear reaction theory calculations to make predictions of polarization observables relevant to the proposed experiments. In order to do this, it is timely to re-examine the microscopic foundation of the nucleon optical model when the target nucleus has nonzero spin.Experimental evidence for the dependence of elastic scattering of protons from a nuclear target on the spin of the target has been obtained through the measurement of the polarization transfer coefficient, D NN , by Betker et al. where the trace is taken over the projectile and target spin projections. The theoretical value of this observable is equal to unity unless a term dependent on the orientation of the target spin is present in the potential. It therefore provides a unique test of the spin dependence in the optical potential. Betker et al. measured a significant deviation of D NN from unity at large * e.cunningham@surrey.ac.uk angles for 200-MeV protons elastically scattering from 10 B at the Indiana University Cyclotron Facility (IUCF). However, their coupled-channel distorted wave impulse approximation (DWIA) calculation of D NN deviated from unity by only about 5% at large angles, an order of magnitude smaller than the observed data. Here we address this issue ...