Document:

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                                                                    EXHIBIT 10.4

                       DIRECTOR INDEMNIFICATION AGREEMENT
                       ----------------------------------

         THIS DIRECTOR INDEMNIFICATION AGREEMENT (the "Agreement") is made as of
this 1st day of January, 2000, and is by and between Evergood Products
Corporation, a corporation duly organized under the laws of the State of
Delaware with its principal offices located at 140 Lauman Lane, Hicksville, New
York 11801 (hereinafter referred to as the "Company") and ____________
(hereinafter referred to as the "Director").

                                    RECITALS:

         WHEREAS, Company is a corporation that was duly formed and is currently
subsisting under the laws of the State of Delaware;

         WHEREAS, the Company appointed Director to serve on the Board
of Directors of the Company;

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         WHEREAS, Director accepts the appointment and agrees to assume the
duties and responsibilities of a director of the Company as set forth in this
Agreement and in the Company's By-Laws; and

         WHEREAS, the parties hereto are desirous of memorializing their
understanding and providing for their respective rights and responsibilities
relating to the indemnification of Director by Company,

         NOW, THEREFORE, for good and valuable consideration each to the other
in hand paid, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto hereby agree as follows:

                                   SECTION ONE

                              Services by Director
                              --------------------

         1. Director hereby agrees to serve as a Director of the Company so long
as he is duly appointed or elected and qualified in accordance with the
applicable provisions of the Certificate of Incorporation and By-Laws of the
Company or any subsidiary of the Company and until such time as he resigns, is
terminated or fails to stand for election. Director may at any time and for

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any reason resign from his Directorship (subject to any other contractual
obligation or other obligation imposed upon him or the Company by operation of
law), and Company shall have no obligation under this Agreement or otherwise to
continue employ or associate with Director in any position with the Company or
as a Director of the Company except as may be set forth in some other written
agreement between the parties which is then in full force and effect, if any.

                                   SECTION TWO

                                 Indemnification
                                 ---------------

         2. Company shall indemnify Director to the fullest extent permitted by
applicable law in effect on the date hereof as such law may from time to time be
amended (but, in the case of any such amendment, only to the extent such
amendment permits Company to provide broader indemnification rights and
protection than the law permitted Company to provide before such amendment).
Without in any way diminishing the scope of the indemnification provided by this
section, the Company will indemnify Director if and whenever such Director is or
was involved in any manner (including, without limitation, as a party or as a
witness) in any threatened, pending, or completed proceeding, including, without
limitation, any such proceeding

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brought by or in the right of Company, by reason of the fact that he is or was
an agent or by reason of anything done or not done by him in such capacity,
against expenses and liabilities actually incurred by Director or on his behalf
in connection with the investigation, defense, settlement, or appeal of any such
proceeding. No initial finding by the Board of Directors of the Company, its
counsel, independent counsel, arbitrators, or shareholders of the Company shall
be effective to deprive Director of the protection of this indemnity, nor shall
a court to which Director may apply for enforcement of this indemnity give any
weight to any such adverse finding in deciding any issue before it, as it is
intended Director shall be paid promptly by the Company all amounts necessary to
effectuate the foregoing indemnity in full.

                                  SECTION THREE

                             Advancement of Expenses
                             -----------------------

         3. All reasonable expenses incurred by or on behalf of Director shall
be advanced by the Company to Director within twenty (20) days after the receipt
by Company of a written request for an advance or advances of expenses from time
to time, whether prior to or after final disposition of a proceeding (unless
there has been a final determination that

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Director is not entitled to be indemnified for such expenses), including, but
not limited to, any proceeding brought by or in the right of the Company.
Director's entitlement to advancement of expenses shall include those incurred
in connection with any proceeding by Director seeking an adjudication or award
in arbitration pursuant to this Agreement. The requests shall reasonably
evidence the expenses incurred by Director in connection with any such
proceeding. If required by law at the time of any advance, Director hereby
undertakes to repay the amount advanced if it shall ultimately be determined
that Director is not entitled to be indemnified pursuant to the terms of this
Agreement.

                                  SECTION FOUR

          PROCEDURE FOR DETERMINATION OF ENTITLEMENT TO INDEMNIFICATION
          -------------------------------------------------------------

         4.1 Whenever Director believes that he is entitled to
indemnification pursuant to this Agreement, Director shall submit a written
request (the "Request") for indemnification to Company to the attention of the
chairperson of the Board of Directors, with a copy to the secretary. The Request
shall include documentation or information that is necessary for the
determination of entitlement to indemnification (the "Determination") and that
is reasonably available to Director.

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The Determination shall be made not later than sixty (60) days after any
judgment, order, settlement, dismissal, arbitration award, conviction,
acceptance of a plea of nolo contendere or its equivalent, or other disposition
or partial disposition of any proceeding or any other event that could enable
Company to determine Director's entitlement to indemnification. The chairperson
of the Board of Directors, or the secretary shall, promptly on receipt of
Director's Request for indemnification, advise the Board of Directors in writing
that Director has made such Request for indemnification.

         4.2 Company shall be entitled to select the forum (the "Forum") in
which Director's entitlement to indemnification will be heard unless a
triggering event (the "Triggering Event") has occurred, as defined in Section
20(g) herein, in which case Director shall be entitled to select the Forum.
Company or Director, as the case may be, shall notify the other party in writing
as to the Forum selected, which selection shall be from among the following:

             (a)  The stockholders of the Company;

             (b)  A quorum of the Board consisting of disinterested Directors;

             (c)  Independent counsel, which counsel shall make the

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Determination in a written opinion; or

             (d)  A panel of three (3) arbitrators, one of whom is selected by
the Company, another of whom is selected by Director, and the last of whom is
selected by the first two arbitrators so selected; or if for any reason three
(3) arbitrators are not selected within thirty (30) days after the appointment
of the first arbitrator, then the selection of additional arbitrators to
complete the three-person panel shall be made by the American Arbitration
Association tinder its commercial arbitration rules then in effect.

                                  SECTION FIVE

                 PRESUMPTIONS AND EFFECT OF CERTAIN PROCEEDINGS
                 ----------------------------------------------

         5. On making a Request for indemnification, Director shall be presumed
to be entitled to indemnification under this Agreement and Company shall have
the burden of proof to show that such indemnification is expressly prohibited by
applicable law in order to overcome that presumption in reaching any contrary
Determination. If the Forum so empowered to make the Determination shall have
failed to make the requested

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Determination within sixty (60) days after any judgment, order, settlement,
arbitration award, conviction, acceptance of a plea of nolo contendere or its
equivalent, or other disposition or partial disposition of any proceeding or any
other event that could enable the Company to determine Director's entitlement to
indemnification, the requisite Determination of entitlement to indemnification
shall be deemed to have been made and Director shall be absolutely entitled to
indemnification under this agreement, absent (a) misrepresentation or omission
by Director of a material fact in the request for indemnification or (b) a
specific finding that all or any part of such indemnification is expressly
prohibited by law. The termination of any proceeding by judgment, order,
settlement, arbitration award, or conviction, or on a plea of nolo contendere or
its equivalent, shall not of itself (a) adversely affect the rights of Director
to indemnification except as may be provided in this Agreement, (b) create a
presumption that Director did not act in good faith and in a manner which he
reasonably believed to be in or not opposed to the best interests of the
Company, or (c) with respect to any criminal action or proceeding, create a
presumption that Director had reasonable cause to believe that his conduct was
unlawful.

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                                   SECTION SIX

                 REMEDIES OF DIRECTOR IN CASES OF DETERMINATION
                     NOT TO INDEMNIFY OR TO ADVANCE EXPENSES
                     ---------------------------------------

         6.1 In the event that (a) an initial Determination is made that
Director is not entitled to indemnification, (b) advances are not made pursuant
to this Agreement, (c) payment has not been timely made following a
Determination of entitlement to indemnification pursuant to this Agreement, or
(d) Director otherwise seeks enforcement of this Agreement, Director shall be
entitled to a final adjudication in an appropriate court of the State of his
entitlement to such indemnification or advance. Alternatively, Director, at his
option, may seek an award in arbitration to be conducted by a single arbitrator
pursuant to the commercial arbitration rules of the American Arbitration
Association then in effect, which award is to be made within ninety (90) days
following the filing of the demand for arbitration (the "Demand"). The Company
shall not oppose Director's right to seek any such adjudication or arbitration
award. In any such proceeding or arbitration Director shall be presumed to be
entitled to indemnification under this Agreement and Company shall have the
burden of proof to overcome that presumption.

         6.2 In the event an initial Determination has been made,

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in whole or in part, that Director is not entitled to indemnification, the
decision in the judicial proceeding or arbitration provided in Section 6.1 shall
be made de novo and Director shall not be prejudiced by reason of a
Determination that he is not entitled to indemnification.

         6.3 If an initial Determination is made or deemed to have been made
pursuant to the terms of this Agreement that indemnification of Director is not
expressly prohibited by applicable law, Director shall be entitled to
indemnification and the Company shall be bound by such Determination in the
absence of (a) a misrepresentation or omission of a material fact by Director or
(b) a specific finding (which has become final) that all or any part of such
indemnification is expressly prohibited by law.

         6.4 The Company shall be precluded from asserting that the procedures
and presumptions of this Agreement are not valid, binding, and enforceable. The
Company shall stipulate in any such court or before any such arbitrator that the
Company is bound by

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all the provisions of this Agreement and is precluded from making any assertion
to the contrary.

         6.5 Expenses incurred by Director in connection with his Request for
indemnification under, seeking enforcement of, or to recover damages for breach
of, this Agreement shall be borne by the Company.

                                  SECTION SEVEN

                         OTHER RIGHTS TO INDEMNIFICATION
                         -------------------------------

         7. Director's rights of indemnification and advancement of expenses
provided by this Agreement shall not be deemed exclusive of any other rights to
which Director may now or in the future be entitled under applicable law, the
Company's Certificate of Incorporation or by-laws, agreement, vote of the
stockholders of the Company, resolution of Company's Directors, or otherwise.

                                  SECTION EIGHT

                            LIMITATIONS ON INDEMNITY
                            ------------------------

         8. Company shall not be liable under this Agreement to

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make any payment to Director to the extent that Director has already been
reimbursed pursuant to such Directors' and Officers' insurance (hereinafter "D &
0 Insurance") as Company may maintain for Director's benefit. Notwithstanding
the availability of such D & O Insurance, Director may also claim
indemnification from the Company pursuant to this Agreement by assigning to the
Company any claims under such insurance to the extent Director is paid by
Company.

                                  SECTION NINE

                 DURATION AND SCOPE OF AGREEMENT; BINDING EFFECT
                 -----------------------------------------------

         9. This Agreement shall continue so long as Director shall be subject
to any possible proceeding by reason of the fact that Director is or was an
agent of the Company and shall be applicable to proceedings commenced or
continued after execution of this Agreement, whether arising from acts or
omissions occurring before or after such execution. This Agreement shall be
binding on the Company and its successors and assigns and shall inure to the
benefit of Director and Director's spouse, assigns, heirs, devisees, executors,
administrators, and other legal representatives.

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                                   SECTION TEN

                           INTERPRETATION OF AGREEMENT
                           ---------------------------

         10. It is understood and agreed that the parties hereto intend this
agreement to be interpreted and enforced so as to provide indemnification to
Director to the fullest extent now or hereafter permitted by law.

                                 SECTION ELEVEN

                                    HEADINGS
                                    --------

         11. The headings of sections and subsections of this Agreement are
inserted for convenience only and shall not be deemed to constitute part of this
agreement or to affect the construction thereof.

                                 SECTION TWELVE

                                  Severability
                                  ------------

         12. If any provisions of this Agreement (or any portion thereof) shall
be held to be invalid, illegal, or unenforceable for any reason whatever: (a)
the validity, legality, and enforceability of the remaining provisions of this
Agreement shall not in any way be affected or impaired thereby; and (b) to the
fullest extent possible, the provisions of this Agreement shall be construed so
as to give effect to the intent manifested

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by the provision held invalid, illegal, or unenforceable.

                                SECTION THIRTEEN

                             Identical Counterparts
                             ----------------------

         13. This Agreement may be executed in one or more counterparts, each of
which shall for all purposes be deemed to be an original, but all of which shall
constituted one and the same agreement. Only one such counterpart signed by the
party against whom enforceability is sought shall be required to be produced to
evidence the existence of this Agreement.

                                SECTION FOURTEEN

                                Entire Agreement
                                ----------------

         14. This Agreement sets forth the entire understanding of the parties
relating to the subject matter herein, and supercedes all prior agreements,
arrangements and understandings, written, or oral, relating to the subject
matter herein. No representation, promise, or inducement has been made by either
party that is not embodied in this Agreement, and neither party shall be bound
or liable for any alleged representation, promise or inducement not set forth.

                                 SECTION FIFTEEN

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                             Modification and Waiver
                             -----------------------

         15. No supplement, modification, or amendment to this Agreement shall
be binding unless executed in writing by both of the parties to this Agreement.
No waiver of any provisions of this Agreement shall be deemed to constitute a
waiver of any other provisions hereof (whether or not similar) nor shall such
waiver constitute a continuing waiver.

                                 SECTION SIXTEEN

                    Notice by Director And Defense Of Claims
                    ----------------------------------------

         16.1 Director agrees promptly to notify Company in writing on being
served with any summons, citation, subpoena, complaint, indictment, information,
or other document relating to any matter that may be subject to indemnification
hereunder, whether civil, criminal, administrative, or investigative; but the
omission so to notify Company will not relieve Company from any liability that
it may have to Director if such omission does not prejudice Company's rights and
if such omission does prejudice Company's rights, it will relieve Company from
liability only to the extent of such prejudice; nor will such omission relieve
Company from any liability that it may have to Director otherwise than under
this Agreement.

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         16.2 With respect to any proceeding as to which Director notifies
Company of the commencement thereof:

             (a)  Company will be entitled to participate therein at its own
expense; and

             (b)  Except as otherwise provided below, to the extent that it may
wish, Company jointly with any other indemnifying party similarly notified will
be entitled to assume the defense thereof, with counsel reasonably satisfactory
to Director after notice front Company to Director of its election so to assume
the defense thereof, Company will not be liable to Director under this Agreement
for any expenses subsequently incurred by Director in connection with the
defense thereof other than reasonable costs of investigation or as otherwise
provided below. Director shall have the right to employ his own counsel in such
proceeding, but the fees and expenses of such counsel shall be at the expense of
Director unless (1) the employment of counsel by Director has been authorized by
Company, (2) Director shall have reasonably concluded that there may be a
conflict of interest between the Company and Director in the conduct of the
defense of such action or that counsel may not be adequately representing
Director, (3) a Triggering Event shall have occurred, or (4) Company shall not
in fact have employed counsel to assume the defense of such action, in each case
of which the

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fees and expenses of counsel employed by Director shall be at the expense of
Company. Company shall not be entitled to assume the defense of any proceeding
as to which Director shall have made the conclusion provided in (2) above or if
an event in (3) above shall have occurred.

             (c)  Company shall not be liable to indemnify Director under this
Agreement for any amounts paid in settlement of any action or claim effected
without its written consent. Company shall not settle any action or claim in any
manner that would impose any penalty or limitation on Director without
Director's written consent. Neither Company nor Director will unreasonably
withhold their consent to any proposed settlement.

                                SECTION SEVENTEEN

                                     Notices
                                     -------

         17. All notices, requests, demands, and other communications hereunder
shall be in writing and shall be deemed to have been duly given if (a) delivered
by hand and receipted for by the party to whom such notice or other
communication shall have been directed, or (b) mailed by certified or registered
mail with postage prepaid, on the third business day after the date on which it
is mailed:

         If to Director to the address first set forth above.

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         If to Company to the address first set forth above with a copy
of such communication mailed by like means to Hoffinger, Friedland,
Dobrish & Stern, P.C., 110 East 59th Street, 33rd Floor, New York,
New York 10022.

         Either party may furnish the other with written notice of a change of
address in the same manner as providing notice as specified above, in which case
notices must be sent to such new address.

                                SECTION EIGHTEEN

                                  Governing Law
                                  -------------

         18. This Agreement shall be governed by, and construed and enforced in
accordance with the laws of the State of New York applicable to agreements made
and to be performed entirely in New York. The legal tribunals of the State of
New York shall be the sole forum for resolving any claim, action or demand
arising out of or pertaining to this Agreement.

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                                SECTION NINETEEN

                             Consent to Jurisdiction
                             -----------------------

         19. Company and Director each irrevocably consent to the jurisdiction
of the Supreme Court of the State of New York in the County of Nassau for all
purposes in connection with any action or proceeding that arises out of or
relates to this Agreement and agree that any action instituted under this
Agreement shall be brought only in the state courts of the State of New York.

                                 SECTION TWENTY

                                   Definitions
                                   -----------

         1.       For purposes of this Agreement:

                  (a) "Agent" shall mean any person who (1) is or was a
Director, officer, or employee of the Company or a subsidiary of the Company
whether serving in such capacity or as a Director, officer, employee, agent,
fiduciary, or other official of another entity at the request, for the
convenience, or to represent the interests of the Company or a subsidiary of the
Company or (2) was a Director, officer, or employee of a corporation that was a
predecessor corporation of the Company or a subsidiary of the Company whether
serving in such capacity or as a Director, officer, employee, agent, fiduciary,
or other

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official of another entity at the request, for the convenience, or to represent
the interests of such predecessor corporation.

             (b)  "Disinterested Director" shall mean a Director of the Company
who is not or was not a party to the proceeding in respect of which
indemnification is being sought by Director.

             (c)  "Expenses" shall include all direct and indirect costs
(including, without limitation, attorney fees, retainers, court costs,
transcripts, fees of experts, witness fees, travel expenses, duplicating costs,
printing and binding costs, telephone charges, postage, delivery service fees,
all other disbursements or out-of-pocket expenses and reasonable compensation
for time spent by Director for which Director is otherwise not compensated by
the Company or any third party) actually and reasonably incurred in connection
with either the investigation, defense, settlement, or appeal of a proceeding or
establishing or enforcing a right to indemnification under this Agreement,
applicable law, or otherwise; provided, however, that "expenses" shall not
include any judgments, fines, or ERISA excise taxes or penalties.

             (d)  For purposes of this Agreement any reference to the masculine
shall mean the feminine when the context requires.

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             (e)  "Independent counsel" shall mean a law firm that, or a member
of a law firm or a sole practitioner who neither is currently nor in the past
five (5) years has been retained to represent: (1) the Company or Director in
any matter material to either party, or (2) any other party to the proceeding
giving rise to a claim for indemnification hereunder. Notwithstanding the
foregoing, the term "independent counsel" shall not include any person who,
under the applicable standards of professional conduct then prevailing, would
have a conflict of interest in representing either the Company or Director in an
action to determine Director's right to indemnification under this Agreement.

             (e)  "Liabilities" shall mean liabilities of any type whatsoever,
including, but not limited to, judgments, fines, ERISA excise taxes and
penalties, and amounts paid in settlement.

             (f)  "Proceeding" shall mean any action, suit, arbitration,
alternate dispute resolution mechanism, investigation, administrative hearing,
or any other proceeding whether civil, criminal, administrative, or
investigative.

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             (g)  "Triggering event" shall mean the acquisition by any person
(other than the Company) of thirty percent (30%) or more of the outstanding
shares of common stock of the Company unless a majority of the entire Board
shall have earlier approved such acquisition.

         IN WITNESS WHEREOF, the parties have executed this Agreement on the day
and year first above written.

                                              Evergood Products Corporation

                                              By:
                                                 ----------------------------
                                                 Its Authorized Officer

                                                 ----------------------------
                                                     [Name of Director]

                                       22<PAGE>

                                                                    Exhibit 10.5

                                  CONTRACT TO

                        GREAT EARTH DISTRIBUTION, INC.

                                  PREPARED BY

                 LIVINGSTON PHARMACEUTICAL DISTRIBUTION, INC.

                               October 13, 1992
<PAGE>

                                   AGREEMENT

     Agreement made this 4th day of November, 1992, between Livingston
Pharmaceutical Distribution, Inc., a Delaware Corporation, having its principal
place of business at 11698 San Marino, Rancho Cucamonga, California, 91730,
hereinafter referred to as "LPDI," and GREAT EARTH DISTRIBUTION, INC., a
California corporation, having its principal place of business at 140 Lauman
Lane, Hicksville, New York, 11801, hereinafter referred to as "GEDI."

                                  WITNESSETH

     WHEREAS, LPDI is in the business of warehousing and shipping of
pharmaceutical products; and

     WHEREAS, GEDI wishes to utilize the services of a third party warehouse for
certain of its warehousing requirements; and

     WHEREAS, LPDI is willing to provide leased facilities adequate for the
needs of GEDI; and

     WHEREAS, GEDI wishes to avail itself of LPDI's warehousing services and
wishes to utilize LPDI's leased facilities.

     NOW, THEREFORE, in consideration of the premises and covenants hereinafter
contained, it is agreed as follows:

                            ARTICLE I. DEFINITIONS

     1.  "Territory" will include those states in Exhibit "A" which is attached
hereto and made a part hereof.

     2.  "Products" will mean, individually and collectively, products to be
marketed by GEDI.

     3.  "Leased Premises" will mean the warehouse facilities operated by LPDI
at 11698 San Marino, Rancho Cucamonga, California, 91730.

                        ARTICLE II. OBLIGATIONS OF LPDI

     1.  LPDI will receive and warehouse GEDI products in Leased Premises.

         1.1  LPDI will maintain written documentation attesting to the proper
              storage of GEDI Products.

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          1.2  LPDI will provide adequate security and handling to avoid loss or
               damage to GEDI Product while in the possession of LPDI.

          1.3  LPDI will assure that it complies with all requirements of local,
               state and federal government, and agencies having jurisdiction
               over GEDI Products and their storage in LPDI's facility including
               Good Manufacturing Practices requirements promulgated under the
               federal Food Drug and Cosmetic Act; the Drug Enforcement Agency;
               the Environmental Protection Agency the Occupational Safety and
               Health Administration; and the Department of Transportation.

     2.   In response to orders received from or on behalf of GEDI, LPDI will
pick, pack and ship as specified below:

          2.1  For each order received LPDI will pick, pack, and ship the order
               within 24 to 48 hours.

          2.2  LPDI will pick the quantity and type of GEDI Products ordered
               utilizing stock rotation based on expiration dating (shortest
               dated Products shipped first).

          2.3  LPDI will package and ship GEDI Products in compliance with all
               regulations of the Department of Transportation, Food and Drug
               Administration, and any other applicable agencies.

          2.4  Upon request, LPDI will include in each package a flyer or other
               promotional material supplied by GEDI.

          2.5  For each shipment, LPDI will prepare a multi-part shipping
               invoice, one part of which will be a packing list enclosed with
               the package, and two parts of which will be an invoice mailed in
               a separate envelope to the customer's "bill to" address, two
               copies will be sent to GEDI.

          2.6  At the end of each work day, LPDI will prepare and forward to
               GEDI reports summarizing orders received and shipments completed
               during the day either via fax or electronically.

          2.7  Non Great Earth bulk orders to be cross docked will be
               periodically received and shipped or held for customer pick-up.

          2.8  Invoices will be sent via Federal Express two times per week on
               Mondays and Thursdays until this can be done electronically.

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          2.9  Backorder shipments will be shipped with the next regular
               customer order.

     3.   LPDI will maintain accurate current inventory records, provide GEDI
daily and monthly activity reports, and perform for the benefit of GEDI all
other duties commonly performed by a pharmaceutical industry warehouse.

          3.1  LPDI will provide one physical inventory per year at no expense
               to GEDI.

          3.2  LPDI will provide a dedicated customer service clerk.

          3.3  LPDI will provide warehouse and management personnel required to
               service GEDI's distribution fulfillment needs.

     4.   Upon 24 hours advance notice, LPDI will allow GEDI personnel or its
lenders to perform physical inventory audits of GEDI Products in LPDI's
possession at any time during normal working hours.

     5.   LPDI will initiate the services specified above within 90 days from
signing of a formal contract.

     6.   LPDI will communicate with GEDI immediately upon knowledge that any
goods are in a form unacceptable for shipping out to customers.

     7.   Returned goods will be shipped to LPDI.

     8.   LPDI will, with the landlords approval and at GEDI's expense, provide
a sign reading "Great Earth Distribution".

     9.   LPDI shall visually inspect each inbound shipment of the Products and
make a quality control evaluation of each shipment. In the event that any
shipment, in whole or part, is defective or shall have been packaged or shipped
under conditions which do not comply with then applicable FDA requirements which
is evident from visual inspection, LPDI shall give prompt notice thereof to
GEDI, specifying the manner in which such shipment is defective. LPDI shall not
dispose of any nonconforming shipment of the Products without prior written
authorization and instructions from GEDI.

     10.  Inspection by government agencies: LPDI shall promptly notify GEDI of
any inspection by a federal, state, or local regulatory representative
concerning the Products and shall provide GEDI a summary of the results of such
inspections and of the actions, if any, taken to remedy conditions cited in such
inspections.

                                       4
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                       ARTICLE III. OBLIGATIONS OF GEDI

     1.   GEDI will:

          1.1  deliver quantities of Products to LPDI at the Leased Premises
               during normal working hours;

          1.2  endeavor to maintain a satisfactory supply of its Products with
               LPDI at all times to meet the demands of GEDI's customers:

          1.3  deliver Products for storage properly marked and packaged
               including a manifest showing sizes or specific stock keeping
               units;

          1.4  be responsible for the procurement, marketing and sale of the
               Products;

          1.5  be fully and solely responsible for ensuring that the Products
               comply with all federal, state, local and other laws and
               regulations including, without limitation, those with respect to
               safety, labeling and advertising;

          1.6  be responsible to its customers for all warranties express or
               implied with respect to the Products;

          1.7  collect any and all amounts due on invoices for Products in
               respect of which LPDI provides services hereunder; and

          1.8  pay the fees and expenses enumerated in Exhibit I and perform all
               of its other obligations under this Agreement.

     2.   Title to and ownership of the Products of GEDI in possession of LPDI
will always be vested in GEDI and subject to its discretion and control. Title
and ownership will pass directly to the purchaser of the Products and all
proceeds derived or credits arising therefrom will be the sole property of GEDI.

     3.   During the term of this Agreement, warehouse services to be performed
in the Territory will be performed solely by LPDI.

     4.   GEDI recognizes the rights of LPDI as a public warehouse.

                   ARTICLE IV. INSURANCE AND INDEMNIFICATION

     1.   GEDI will maintain in effect during the term of this Agreement,
adequate Products liability insurance on the Products and insuring GEDI's
contractual liability to indemnify LPDI hereunder, designating LPDI as an
additional named insured.

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     2.   GEDI will indemnify, defend, and hold harmless LPDI, its affiliates,
directors, officers, agents and employees from any and all claims, demands,
actions, causes of action, losses, judgements, damages, costs or expenses
(including, but not limited to, attorney's fees, court costs and costs of
settlement) whatsoever in connection with the Products, unless it resulted from
the negligence, willful misconduct or fraud by LPDI.

     3.   GEDI will maintain comprehensive insurance sufficient to cover the
replacement value of Products in the possession of LPDI.

     4.   LPDI will maintain the following insurance coverage:

          4.1  Workmen's Compensation in an amount sufficient to comply with the
               statutory requirements of the State of California.

          4.2  Warehouse and legal liability in the aggregate amount of
               $15,000,000. GEDI acknowledges that this insurance covers the
               total contents of the Leased Premises including the Products and
               the Products of persons other than GEDI to whom LPDI is also
               providing warehouse services.

          4.3  LPDI shall maintain, at its sole expense, and at all times during
               the term of this agreement, a comprehensive general liability
               policy for bodily injury or property damaged for any one
               occurrence or series of occurrences arising out of one cause.
               The policy shall also cover liabilities specifically assumed
               under this Agreement.

     5.   LPDI will indemnify, defend, and hold harmless GEDI, and the
affiliates, directors, officers, agents and employees of either from any and all
claims, demands, actions, causes of action, losses, judgments, damages, costs or
expenses (including, but not limited to, attorney's fees, court costs and costs
of settlement) whatsoever in connection with the misconduct or fraud by LPDI.

     6.   LPDI will be liable for loss of or injury to all Products while under
its care, custody, and control when caused by its failure to exercise such care
in regard to them as a reasonably careful man would exercise under like
circumstances. LPDI will not be liable for damages which could not have been
avoided by the exercise of such care provided.  It is agreed liability will be
limited to the manufactured cost of goods of GEDI.

     7.   In the event of any loss or damage to any of the Products, except as
otherwise provided in Article IV, paragraph 6, both parties will look solely to
the proceeds of any applicable insurance obtained by GEDI and LPDI unless such
loss or damage is caused by the willful misconduct of one of the parties.

                                       6
<PAGE>

                          ARTICLE V. INVENTORY TAXES

     1.   GEDI will bear the expense of any inventory taxes that might be
assessed on its Products from time to time.

                        ARTICLE VI. RIGHT TO INSPECTION

     1.   GEDI may, upon reasonable prior written notice to LPDI and under the
supervision of LPDI, inspect the Leased Premises during normal working hours at
any time during the term of this Agreement provided that the inspection does not
disrupt normal warehouse operations.

                     ARTICLE VII. AMENDMENT AND ASSIGNMENT

     1.   This Agreement is the entire understanding of the parties and it
hereby supersedes any and all previous understandings, whether written or oral,
with respect to the subject matter hereof. The terms, conditions and provisions
of this Agreement will prevail over any inconsistent statements, terms,
conditions or provisions contained in any documents passing between the parties
hereto including, but not limited to, any acknowledgment, confirmation or
notice. This Agreement may not be amended, supplemented, or otherwise modified
except by an instrument in writing executed by the parties hereto.

     2.   This Agreement will inure to the benefit-of the parties and to the
successors and assigns of that part of the business of each of the parties to
which the subject matter of this Agreement is related. This Agreement, or any
rights thereunder, will not be otherwise sold, assigned, transferred or
encumbered by either party hereto without first obtaining the written consent of
the other party. Such consent will not be unreasonably withheld for any reason.

                          ARTICLE VIII. FORCE MAJEURE

     1.   Each party to this Agreement will be excused from the performance of
its obligations hereunder to the extent that such performance is prevented by
Force Majeure, and such excuse will continue for so long as the condition
constituting the Force Majeure continues. For the purposes of this Agreement,
"Force Majeure" means conditions beyond the control of a party, including but
not limited to, acts of war, regulations of government bodies, labor
difficulties, shortages of materials, riot, fire, flood, hurricane, windstorm,
and other acts defined as Force Majeure in the laws of the State of California.

          However, if the Leased Premises at any time are subject to a condition
constituting Force Majeure such that LPDI is unable to fulfill its obligations
under this Agreement, LPDI will give immediate written notice thereof to GEDI
and will use its best efforts to promptly obtain and use other warehousing
facilities reasonably acceptable to GEDI. In the event that LPDI fails to find
warehouse facilities within 60 days from the date of receipt by

                                       7
<PAGE>

GEDI of the notice, GEDI may, at its sole option, terminate this Agreement by
giving written notice of such cancellation or termination to LPDI.

                      ARTICLE IX. RECORDS AND ACCOUNTING

     1.   LPDI will keep full and true books of accounts and other records of
all inventory and shipments of Products under this Agreement so that the
correctness of the amount of, the payment previously made, or that due and owing
LPDI from GEDI can be properly ascertained. GEDI will, entirely at its own cost,
have the right to have said books and records examined by a Certified Public
Accountant or any authorized agent of GEDI, at any reasonable time during
business hours of LPDI after giving LPDI seven days written notice of its desire
to do so. Such examinations will not occur more than twice annually, and will be
only to such extent necessary to verify the payments previously made, or to be
made, by GEDI to LPDI, and only in respect to any period ending not more than
two years prior to the date of such requests. In addition, LPDI will cooperate
fully with respect to any internal control, evaluation or any other procedures
deemed necessary by GEDI's auditors.

                            ARTICLE X. TERMINATION

     1.   If either LPDI or GEDI should fail to discharge fully and promptly any
of its obligations under this Agreement, including the obligation to make
payments, and further fail to rectify such failure within a reasonable time not
to exceed 30 days (provided that such a failure can be cured) after written
notice thereof by the other party, the other party will have the right to
immediately terminate this Agreement upon giving the other written notice to
such effect.

          Each party hereto will have the right to terminate this Agreement in
the event of any proceeding under a Bankruptcy Act or any insolvency,
receivership or dissolution proceeding involving the other party.

     2.   Upon notification of termination or expiration of this Agreement, LPDI
will promptly return to GEDI at GEDI's sole expense, all Products then in its
possession or control, and all customer and sales representatives lists provided
hereunder by GEDI to LPDI, and any information provided in order that LPDI may
obtain any government licenses and permits. LPDI will be compensated at the rate
of $18.00 per labor hour for handling and when a forklift is necessary, an
additional $6.50 per usage hour and $2.00 per square foot storage per month from
the last effective day of the contract.

                         ARTICLE XI. TERM OF AGREEMENT

     1.   This Agreement will commence as of the first day of December 1992, and
will extend for the period of Five years thereafter, to and including the 30th
day of November, 1997, and from year to year thereafter unless notice of
termination is given in writing by one party to the other not less than sixty
(60) days prior to date of termination of this Agreement. Failure to

                                       8
<PAGE>

give such notice automatically renews this Agreement for another contract year,
with the exception that this Agreement may be amended by mutual consent of both
parties without such notice at any time.

     2.   The obligation of GEDI to pay fees and expenses earned or incurred by
LPDI prior to the effective date of termination and the obligations of GEDI
under paragraph 1 of Article III will survive the termination or expiration of
this Agreement.

                             ARTICLE XII. GENERAL

     1.   This Agreement will be interpreted in accordance with the laws of the
State of Delaware.  The parties understand and agree that the provisions of
Article 7 of the Uniform Commercial Code as enacted by the State law governing
this Warehousing Agreement will apply to his Warehousing Agreement.

     2.   Save and except for any provision or covenant contained herein which
is fundamental to the subject matter of this Agreement (including without
limitation those that relate to the payment of monies), the invalidity or
unenforceability of any provision or covenant hereof or herein contained will
not affect the validity or enforceability of any other provision or covenant
hereof or herein contained and any such invalid or unenforceable provision or
covenant will be deemed to be severable.

     3.   Any notice or other communication required or permitted to be given
hereunder shall be in writing addressed to the parties at their respective
addresses set out above and, if mailed by prepaid first-class mail at any time
other than during a general discontinuance of postal service due to strike,
lockout or otherwise, shall be deemed to have been received two business days
after the post-marked date thereof, or if telexed, shall be deemed to have been
received on the next business day following dispatch and acknowledgment or
receipt by the recipient's telex machine, or if telecopied, shall be deemed to
have been received on the next business day following dispatch or if delivered
by hand shall be deemed to have been received at the time it is delivered.
Notice of change of address shall also be governed by this paragraph 3.

                                       9
<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement.

GREAT EARTH DISTRIBUTION, INC.

By: /s/ Sidney Rich                                  1/29/92
    -------------------------------               -------------------
                                                       Date

LIVINGSTON PHARMACEUTICAL DISTRIBUTION. INC.

By: /s/ M K Barnes                                  Nov. 4, 92
    -------------------------------               -------------------
       Mark K. Barnes                                  Date
       President

                                       10
<PAGE>

                                   EXHIBIT A

                                   TERRITORY
                                   ---------

Territory shall include the 50 United States and territories and possessions of
the United States.
<PAGE>

                                   EXHIBIT I

                  LIVINGSTON/ GREAT EARTH DISTRIBUTION, INC.
                         FEE SCHEDULE/COMMERCIAL TERMS

Great Earth Distribution, Inc. will pay monthly a distribution service charge
of:

     Rate
     ----

 .    Year 1 - $400,000 billed at $33333.34 per month or 4% of invoice sales
     whichever is greater. Years 2 to 5 - will be billed at 5% of invoice sales.

 .    Computer System Consulting - At a rate of $75 per hour door to door.
     Reasonable travel expenses will be covered with prior approval of GEDI.

 .    Return Goods Processing - $18.50 per labor hour.

 .    Transportation - Reimburse transportation, transportation insurance (if
     applicable) and detention charges (if applicable).

 .    Reasonable Expenses - Reimburse for packaging supplies, postage, telephone
     calls and direct equipment rentals for GEDI and MIS communication lines.
     Direct equipment rentals are not to exceed $150 per month.

 .    Accessorial Labor - Any services performed by LPDI which are mutually
     agreed to by GEDI and which are not part of the normal services provided in
     this proposal are at the rate of $18.50 per labor hour and when a forklift
     is necessary, an additional $7.00 per usage hour. Approval must be in
     writing.

 .    Overtime - All overtime charges authorized by GEDI at the rate of time and
     a half on weekdays and Saturdays, double time on Sundays, and triple time
     on holidays.

 .    Commercial Terms - Invoices to be paid within 30 days from date of invoice.

 .    A one time start-up fee of $10,000 to cover initial analysis of GEDI needs
     and training of franchises (standard startup charge is normally $25,000).
     Travel to and from training site and lodging, if needed, is the
     responsibility of the franchise.

 .    GEDI will pay all charges directly related to movement of product to the
     LPDI facility.

/s/ M K Barnes              4 Nov 92         /s/ Sidney Rich Pres    10/27/92
--------------------------------------       ----------------------------------
Mark K. Barnes, President     Date           Name, Title               Date

<PAGE>

                                  EXHIBIT II

                  LIVINGSTON /GREAT EARTH DISTRIBUTION, INC.

LPDI will provide the following equipment to GEDI for order entry:

A.   One MSI unit for each store ordering location.

B.   LPDI agrees to hold 16 MSI units in reserve to serve as replacements for
     units requiring maintenance.

C.   Hardware and software necessary to allow the MSI units to communicate with
     LPDIs order entry system.

D.   MSI units for new franchises will be procured by LPDI and paid for by GEDI.

E.   All shelf labels and bar coded catalogs required after initial training
     will be purchased through LPDI.
<PAGE>

                                  MEMORANDUM

To:     Stephen Stern

CC:     Peter Westermann, Tom Hill

From:   Steven A. Dailey

Date:   04/06/99

Re:     Great Earth Contract Pricing

________________________________________________________________________________

Stephen

As committed, I have reviewed the current contract between Livingston Healthcare
Services, Inc. and Great Earth Distribution Inc.  This contract currently is
active until 12/31/99. Based on the current contract end date and the
opportunity of the Procure Web Based Ordering Application, LHSI has reexamined
the contract configuration and would like to propose the following set of
contract terms to enable our continued our long term relationship and have the
ability to introduce Procure as the new order management vehicle for "The Great
Earth Distribution."

Contract Terms:

01.  Extend the existing contract from 12/31/99 for an additional 3 years ending
     12/31/02
02.  LHSI to reduce the current Distribution Rate Structure by 30 Basis Points

New Percent of Sale Structure "Distribution Fee's":

Minimum Monthly fee $15,000.

Monthly Sales                           Distribution Rate
$  899,000                                     5.70%
$  900,000 - $  999,999                        5.45%
$1,000,000 - $1,099,000                        5.20%
$1,100,000 - $1,199,000                        4.95%
$1,200,000 - $1,299,999                        4.70%
$1,300,000 - $1,399,999                        4.45%
$1,400,000 - $1,499,999                        4.20%
$1,500.000 - $1,599.999                        3.95%
$1,600.000 - $1,699,999                        3.70%
$1,700,000 - $1,799,999                        3.50%
$1,800,000                                     3.30%

                                       14
<PAGE>

To truly relate the current pricing between LHSI and Great Earth Distribution
for a percent of sale perspective, I've compiled the following data to truly
note the impact of Procure to the overall current and revised contacts.

Today, Great Earth Distribution are charged the following:

Distribution Percentage of Sales 5% (Based on your current Sales Volume)
Labor (Overtime)
Supplies
Communications
Transportation

Based on the current run rate for the last 6 months, Great Earth Distribution
are operating at an average of 6% gross distribution per month. The CCS
Environment currently is a part of the Supplies and all of the communication
expense.

Based on Great Earth Distribution request not to increase their operating costs
associated to distribution, Livingston examined the Procure costing models
presented at our March 9, 1999 meeting. To have zero impact to the overall
distribution expense to Great Earth Distribution, Pete Westermann (President)
and I created the following costing model (Page one) based on the new 3 year
operating percentage rates. The model shows zero impact if today, we were
migrated 100% from CCS to Procure. Knowing that LHSI and Great Earth
Distribution could not migrate 100% day one, we developed a third costing model
(Mix) to reflect a migration from CCS to Procure.  The increase of 11 (Basis
Points) or $1,374 (monthly expense) overall would be the assumed if (30%) of the
remaining stores have not move over to Procure within the first year. This would
be the responsibility of Great Earth Distribution, Management to work with the
CCS stores and either accept that they stay on CCS with the associated costs or
force them to migrate.

Procure Standard Service Level Agreement for Great Earth:  LHSI must maintain
the following:

01.  7X24 Availability, with selected scheduled maintenance down time
02.  Average Response Time to between 2 and 5 seconds per screen
03.  QTR Reporting on activity (# of Hits)

If LHSI fails to deliver consistence access over a 90 day period and/or
consistence response time over a 90 day period and LHSI is unable to resolve the
issue within a reasonable time frame, Great Earth Distribution may terminate the
3 year contract on a 90 day notice.

                                       15
<PAGE>

Great Earth Current/All Procure/Migration Model's

GREAT EARTH

                            Today       All Procure       Mix

Sales                    $1,244,872     $1,244,872     $1,244,872

% today                  $        0     $        0     $        0

fees today               $   62,244     $   58,509     $   58,509

communications           $    6,269                    $    4,200

supplies                 $    4,988     $    4,988     $    4,988

misc                     $    1,150     $    1,150     $    1,150

total                    $   12,407     $    6,138     $   10,338

% to sale                      1.00%          0.49%          0.83%

Procure Proposed

Standard fee                            $    4,500     $    4,500

Transaction fee                         $    3,687     $    1,250

Order fee                $        0     $    8,775     $    5,949

Total all fees           $   74,651     $   73,422     $   74,796

Standard fee                            $    4,500     $    4,500

Misc fees                $   12,407

% to sales                     6.00%           5.9%          6.01%

Net cost                       5.00%          4.70%          4.70%

Activities               $   12,407     $   14,913     $   16,287

Net cost                       5.00%          4.70%          4.70%

Not factored into this model would be additional savings in the following areas:

                                       16
<PAGE>

01.  Dial America - Now automate using Procure and remove the three person
     manual review process.

02.  Year 2000 - Vehicle to the Stores to move to PC's and Automation.

03.  Remove the manual mail order system and automate either direct to customer
     or enable Great Earth Management the ability to key direct orders into
     system. Also removes all Y2K. issues and future maintenance.

04.  Identify low performing Stores and allow consolidation, direct to consumer
     (National Great Earth Mail order Store concept) or allow Great Earth sales
     persons to assist stores and from their business.

05.  Provides direct to consumer for new or existing product lines.

06.  Improved Inventory Utilization and Inventory Scheduling.

07.  Interface to the existing Point of Sale System - Pricing not determined

08.  Allows Reach worldwide at no new communication costing (800 services).

09.  Complete accounting for requested, shipped and received. Reduces the errors
     or credits requested.

10.  Reduce the CCS PDK. handheld replacement fees (each unit to replace today
     costs approx. $1,500) or increase maintenance (1998 - $6,300 and 1999 -
     $8,505).

11.  For each store that either has or acquires a PC, Great Earth Distribution
     can then implement their POS system for tracing sales and provide inventory
     control.

PROCURE Break down:

LHSI would implement Procure Web Based Order Management Solution for replacement
of the current CCS batch order management environment.

Pricing Assumptions

The following is our understanding of the pricing components used to prepare
this proposal:

 .    Contractual term is 3 years
 .    Bank Card Processing
 .    ProCure links to Great Earth web site or Base Web Site
 .    Client look and feel

                                       17
<PAGE>

 .    Estimated customers
 .    Estimated orders per month
 .    Estimated lines per order
 .    Estimated catalog items
 .    Estimated catalog updates per day
 .    On line history in months
 .    Customer service reports

One Time Fees: (Separate from new pricing structure)

Design Work Shop $10,000 (Fix Price)
This workshop includes the following:

Web Design
Web Development
Web Implementation
Web Documentation
Training (Kathy Woodward and the initial Stores)

* Web Process to enable a secured order entry, product selection web based
ordering form.

Travel & Expenses - $6,000 (Estimate Only, Actual will be billed)

Key Assumption:

01.  Great Earth Distribution are responsible for the selection and store
     migrations from CCS to Procure.  LHSI would perform the migrations and
     support of the Procure Products to Great Earth Distribution.

02.  LHSI will continue to retain the CCS environment and continue to rebill all
     expenses directly to Great Earth Distribution.

03.  Billing would not change. We would continue on the same billing process per
     your request.

04.  Based on the "All Procure" we assumed all 1998 order volume to be processed
     via Procure. The "Mix" model assumes 70% of all transactions processed via
     Procure.

05.  LHSI to provide Y2K certification of Procure and LMS 2000.

To proceed with your Internet Solution, please signify your acceptance by
signing below and returning an original signed copy of this proposal along with
a check covering the Design Workshop fees defined. We note that said Design
Workshop fee covers project definition,

                                       18
<PAGE>

business processes and deliverables as per the project scope defined herein. The
actual site development costs will be subject to change if there is change in
the project scope or our understanding. Once we receive your signed copy of the
agreement, we will schedule our Design Work Shop for mid-April and
implementation between July/August 1999. All rates quoted are in US dollars and
may be subject to applicable taxes. We will follow up with a formal Internet
Solution Services Contract between LHSI and The Great Earth Company to be
executed by all parties by 5/31/99. This proposal will remain in effect for 120
days.

LHSI looks forward to working with you to provide a total solution for you. Once
again, if there is anything further we can provide you to assist in the decision
making process, please do not hesitate to call.

Sincerely,

/s/ Steven A. Dailey

Steven A. Dailey
Vice President and Chief Information Officer
Livingston Healthcare Services, Inc.

                    Organization:            Great Earth Distribution
                                             -----------------------------

                    Accepted and Agreed:     /s/ Stephen R. Stern
                                             -----------------------------

                    Name:                    Stephen Stern
                                             -----------------------------

                    Title:                   President, COO
                                             -----------------------------

                    Date:                      4/9/99
                                             -----------------------------

                                       19

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