Document:

EXHIBIT 10.47
                                                                   -------------

                              LEASE AMENDMENT NO. 4
                            AND SETTLEMENT AGREEMENT

     THIS LEASE AMENDMENT NO. 4 AND SETTLEMENT AGREEMENT (this "Agreement") is
made as of the 25th day of October, 2000, by and between AIRPORT ASSOCIATES, a
New Jersey general partnership ("Landlord"), and VIVUS, INC., a Delaware
corporation ("Tenant").

                                    RECITALS:

     WHEREAS, Landlord and Tenant are parties to a certain Lease dated as of
January 1, 1997 (the "Original Lease"), as amended by Lease Amendment No. 1
dated as of February 15, 1997 (the "First Amendment"), Lease Amendment No. 2
dated as of July 24, 1997 (the "Second Amendment"), and Lease Amendment No. 3
dated as of July 24, 1997 (the "Third Amendment") (the Original Lease, as
amended by the First Amendment, Second Amendment and Third Amendment, is
hereinafter referred to as the "Lease"); and

     WHEREAS, the initially capitalized terms used, but not defined, in this
Amendment shall have the same meanings as the terms defined in the Lease,
directly or by cross-reference, unless the context requires otherwise; and

     WHEREAS, Tenant has made certain Alterations to the Premises described in
the drawings listed on Exhibit A attached hereto (the "Subject Alterations");
and

     WHEREAS, Landlord made a demand on Tenant to provide the Removal Security
for the Subject Alterations; and

     WHEREAS, a dispute arose between Landlord and Tenant regarding the Removal
Security for the Subject Alterations; and

     WHEREAS, Landlord instituted an action against Tenant in the Superior Court
of New Jersey, Chancery Division (the "Court"): Ocean County venue bearing
Docket No.: C-225-98 (the "Litigation"); and

     WHEREAS, an Order was entered by the Court in the Litigation which provided
for the Landlord and Tenant to arbitrate their dispute and dismissed the
Litigation; and

     WHEREAS, in lieu of submitting the dispute between Landlord and Tenant
regarding the Removal Security for the Subject Alterations to arbitration as
permitted pursuant to the Lease and Court Order, Landlord and Tenant have
reached an agreement with respect to the Removal Security for the Subject
Alterations and certain other matters, as set forth below in this Agreement;

<PAGE>

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by each of the parties hereto,
Landlord and Tenant agree as follows:

     1. Landlord and Tenant agree that the amount of the Removal Security for
the Subject Alterations shall be $3,324,143.00.

     2. Simultaneously with the execution of this Agreement, Tenant shall
deliver to and deposit with Landlord the Removal Security set forth in Paragraph
1 consisting of an irrevocable standby letter of credit, substantially in the
form of Exhibit B attached hereto and incorporated herein (such letter of credit
and any replacement or additional letters of credit are hereinafter referred to
as the "Letter of Credit"). Any additional Letter of Credit that may be
delivered to Landlord as Removal Security in connection with future Alterations
shall also be substantially in the form of Exhibit B. With respect to the
initial Letter of Credit, and any replacement or additional Letter of Credit,
Tenant and Landlord agree as follows:

     (a) Any Letter of Credit shall have a stated duration of and shall be
effective for a period of not less than one (1) year.

     (b) If any Letter of Credit is scheduled to expire prior to one (1) month
after the later of: (i) the expiration of the Term of the Lease, plus any
Renewal Terms; (ii) the expiration of any Deferral Period (as defined below); or
(iii) the expiration of any Completion Period (as defined below), Tenant shall
deliver to Landlord a replacement Letter of Credit no later than thirty (30)
days prior to the expiration date of the expiring Letter of Credit, and if
Tenant fails to do so, Landlord may draw the entire amount of the expiring
Letter of Credit, less any sums previously paid out of the expiring Letter of
Credit, and hold the proceeds (the "Expiration Proceeds") in cash as Removal
Security until such time as Tenant provides Landlord with a replacement Letter
of Credit, or Landlord expends any portion of the Expiration Proceeds to perform
any Restoration (as defined below). Any such cash proceeds that are not expended
on Restoration shall be deposited with a financial institution selected by
Landlord and satisfactory to Tenant, in its reasonable judgment, in a
segregated, interest-bearing account, labeled "VIVUS Removal Security Account,"
and shall be held in trust for the purposes set forth herein and in the Lease.
Any replacement Letter of Credit shall be in the same amount as the Expiration
Proceeds, less any amounts expended by Landlord to perform any Restoration, and
shall contain the same conditions as the expiring Letter of Credit. Upon
delivery of the replacement Letter of Credit to Landlord, Landlord shall
surrender the entire amount of the Expiration Proceeds, together with all
interest accrued thereon, less any amounts expended by Landlord to perform any
Restoration, to Tenant or Tenant's designee(s).

     (c) If the issuer of the Letter of Credit shall admit in writing its
inability to pay its debts generally as they become due, or shall file a
petition or otherwise become a debtor in bankruptcy or take advantage of or
become subject to any insolvency, reorganization, receivership or similar laws
or remedies, or shall consent to or be subject to the appointment of a receiver
or a conservator of itself or the whole or any substantial part of its property,
or shall file a petition or answer seeking reorganization or arrangement under
the United States Bankruptcy Code, or shall have a receiver or conservator
appointed or shall become subject to operational supervision by any Federal or
State regulatory authority, then Tenant within thirty (30) days after written
demand by Landlord shall obtain a replacement Letter of Credit from another
financial institution satisfactory to Landlord, in its reasonable judgment.

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<PAGE>

     (d) If the Tenant shall become a debtor or debtor in possession in any
bankruptcy case under the United States Bankruptcy Code or shall be subject to
any receivership or insolvency proceeding, including but not limited to an
assignment for the benefit of creditors, Tenant acknowledges that any Letter of
Credit provided to the Landlord under the Lease or this Agreement is not and
shall not constitute property of the estate under 11 U.S.C. ss. 541 and/or
similar provisions under State receivership, assignment for the benefit of
creditors and/or other insolvency laws or proceedings. Additionally, Tenant
acknowledges that any draw on any Letter of Credit will not be subject to 11
U.S.C. ss. 362 (a) or constitute a preference or fraudulent conveyance under 11
U.S.C. ss.ss. 547, 548 or otherwise be prohibited by 11 U.S.C. ss.ss. 549, 550
or any other applicable State receivership, assignment for the benefit of
creditors and/or other insolvency laws or proceedings. Tenant also acknowledges
that in the event that it shall become a debtor or debtor in possession under
the United States Bankruptcy Code, receivership, assignment for the benefit of
creditors and/or other insolvency laws or proceedings, it shall timely perform
all obligations under the Lease and this Agreement, and any amendments thereto
arising from and after the order for relief, until the Lease, this Agreement and
any amendments thereto are assumed or rejected as required by 11 U.S.C. ss. 365
(d) (3), as well as all other duties and performances required of a debtor
and/or debtor in possession under the Bankruptcy Code without prejudice to any
and all other rights, claims, remedies and interests the Landlord may possess.

     3. Notwithstanding the provisions of the first sentence of Section 9.4 and
the first sentence of Section 18 of the Lease, Landlord and Tenant agree as
follows with respect to any Alterations:

     (a) If (i) no Event of Default shall have occurred and be continuing, and
(ii) prior to the scheduled expiration date of the Term, including any Renewal
Term (the "Expiration Date"), Landlord shall not have entered into one or more
leases for the Premises (each, a "New Lease"), Tenant may defer its obligations
to remove the Alterations, repair any damage caused by such removal, and restore
the portion of the Premises in question to substantially its condition
immediately preceding the construction of such Alterations (collectively the
"Restoration") for a period not to exceed six (6) months from and after the
Expiration Date (the "Deferral Period"), provided that: (A) at least sixty (60)
days prior to the Expiration Date, Tenant shall give Landlord written notice
that Tenant desires to so defer its Restoration obligations; (B) Tenant shall
pay to Landlord, in consideration of each one (1) month (or part thereof) period
during the Deferral Period, and any subsequent period until the delivery to
Landlord of Tenant's Initial Completion Notice (as defined in Section 3(g)
below) (the "Initial Completion Period"), in advance on the first day of each
one (1) month period during the Deferral Period and the Initial Completion
Period (except that the first such payment shall be paid by Tenant together with
Tenant's notice described in clause (A)) an amount equal to two (2) times
Tenant's monthly rent, taxes, assessments and other charges, as defined in
Sections 2 and 5.1 of the Lease, and (C) except as otherwise provided to the
contrary in this Agreement, during the Deferral Period and any subsequent
Completion Period Tenant shall be responsible for complying with all obligations
required to be complied with during the Term and any Renewal Term (except that
Tenant's payment obligations under Sections 2 and 5.1 of the Lease during the
Deferral Period

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<PAGE>

and any subsequent Completion Period shall be as set forth in clause (B) above).
In no event shall the Initial Completion Period extend beyond six months from
the expiration of the Deferral Period. In the event Tenant fails to deliver
Tenant's Initial Completion Notice (as defined in Section 3(g) below) within six
months from the expiration of the Deferral Period, Tenant shall be deemed a hold
over tenant in accordance with Section 18 of the Lease from that date until the
date Landlord receives Tenant's Initial Completion Notice. Notwithstanding the
provisions of Section 18 of the Lease, Tenant shall not be deemed to be a
holdover tenant, and shall not be liable for holdover damages pursuant to
Section 18, during the Deferral Period, any subsequent Completion Period and the
Arbitration Period (as defined below). Tenant may, at its option, perform any or
all of its Restoration obligations during the Deferral Period.

     (b) If on or before the expiration of the Deferral Period, Landlord enters
into a New Lease that does not expressly require or permit the Landlord to
maintain any or all Alterations in place, Tenant shall promptly (and in any case
within six (6) months after receipt of written notice from Landlord) perform its
Restoration obligations with respect to such Alterations set forth in Landlord's
notice to Tenant. In the event Tenant fails to perform its Restoration
obligations with respect to such Alterations within such time limit, then
Landlord shall be authorized to draw on the Letter of Credit in an amount
sufficient to perform any Restoration obligations that Tenant has failed to
perform, subject to the provisions of this Section 3.

     (c) If, prior to the Expiration Date or the expiration of the Deferral
Period, Landlord shall enter into a New Lease, pursuant to which Landlord is
expressly required or permitted to maintain any or all Alterations in place (the
"Designated Alterations"), then, in that event, Landlord shall promptly provide
Tenant with written notice (the "Notice of New Lease") and a copy of the
relevant portions of the New Lease, and Tenant shall not be required to remove
the Designated Alterations, shall relinquish the Designated Alterations in place
and shall, without further action, release to Landlord all right, title and
interest in and to such Designated Alterations. Tenant shall have no liability
to Landlord for the reinstallation of any Designated Alterations that were
removed by Tenant prior to receipt of a Notice of New Lease. Nothing in this
subsection shall impact Tenant's obligations under the Lease and this Agreement
to remove all Alterations other than the Designated Alterations.

     (d) Notwithstanding anything to the contrary contained in this Agreement,
if, upon the expiration of the Deferral Period, Landlord has not entered into a
New Lease pursuant to which Landlord is expressly required or permitted to
maintain in place some or all Alterations, Tenant agrees that it shall, within
six (6) months after the expiration of the Deferral Period, at its sole expense,
perform the Restoration. In the event Tenant fails to complete the Restoration
within such time limit, then Landlord shall be authorized to draw on the Letter
of Credit in an amount sufficient to perform any Restoration obligations that
Tenant has failed to perform, subject to the provisions of Section 3(g) below.

     (e) Notwithstanding anything to the contrary herein contained, any New
Lease shall be on terms acceptable to Landlord in its sole and absolute
discretion, and Landlord shall have no obligation to attempt to negotiate the
terms of any New Lease which would expressly require or permit the maintenance
of some or all Alterations in place, and Landlord shall have no liability
whatsoever to Tenant if Landlord shall not enter into a New Lease or if a New
Lease shall not expressly require or permit the maintenance in place of some or
all Alterations.

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<PAGE>

     (f) Notwithstanding anything to the contrary herein contained, on or before
the Expiration Date, Tenant shall remove from the Premises, in the manner
required by the Lease, all trade fixtures, equipment and personalty of Tenant.
From and after the Expiration Date, Tenant shall have no right to occupy the
Premises or any part thereof, or any similar possessory rights, except as
otherwise provided herein. After the Expiration Date, Tenant shall be granted
access to the Premises solely for the purpose of performing the Restoration and
conducting any inspections permitted pursuant to this Agreement.

     (g) Upon the completion by Tenant of whatever Restoration obligations it
reasonably believes are required pursuant to the Lease and this Agreement,
Tenant shall promptly notify Landlord in writing of such completion ("Tenant's
Initial Completion Notice"). Within fifteen (15) days of Landlord's receipt of
Tenant's Initial Completion Notice, Landlord shall either notify Tenant in
writing of any required Restoration obligations that it believes have not yet
been performed (the "Deficiency Notice"), or shall notify the issuer of the
Letter of Credit that the Letter of Credit is to be released in its entirety. If
within fifteen (15) days of Tenant's receipt of a Deficiency Notice, Landlord
and Tenant are unable to agree in writing on the scope and identity of any
additional Restoration obligations, Landlord and Tenant shall submit the issue
to arbitration in accordance with the procedures set forth in Section 3(i)
below. During the pendency of the arbitration, Landlord shall have the right to
draw on the Letter of Credit in an amount sufficient to perform the Restoration
obligations identified in the Deficiency Notice; provided, however that if the
arbitration panel subsequently determines that Tenant was not required to
perform all or a portion of the Restoration obligations identified in the
Deficiency Notice, and that the full amount of the Letter of Credit proceeds
exceeds the estimated cost of the Restoration work that was required to be
performed, then Landlord shall, within ten (10) days of the issuance of the
arbitration panel's determination, submit to Tenant by wire transfer or by
certified or bank check an amount equal to that portion of the Letter of Credit
proceeds that the panel estimates are attributable to the portion of the
Restoration obligations that the arbitrators determined were not required. Upon
submission of the issue to arbitration, Tenant shall then have no further access
to the Premises, except that Tenant and a contractor and/or licensed architect
chosen by Tenant shall be granted reasonable access to the Premises for the sole
purpose of inspecting the Premises in order to prepare a report regarding the
nature, status and scope of Tenant's Restoration. In the event the arbitration
panel determines that Tenant is required to perform some or all of the
Restoration obligations identified in the Deficiency Notice, then Tenant shall
promptly commence such additional Restoration work within thirty (30) days of
Tenant's receipt of a copy of the arbitration panel's determination, and shall
make reasonable efforts to complete all additional Restoration work within four
(4) months of the date of Tenant's receipt of a copy of the arbitration panel's
determination (the "Additional Completion Period"). If the cost of such
additional Restoration work is estimated by the arbitrators to exceed 5% of the
total amount of Removal Security posted by Tenant, then Tenant shall pay to
Landlord, within thirty (30) days of Tenant's receipt of a copy of the
arbitration panel's determination, an amount equal to the monthly payments
provided for in Sections 2 and 5.1 of the Lease allocable to the period
commencing thirty (30) days after the delivery to the Landlord of Tenant's
Initial Completion Notice and ending thirty (30) days after Tenant's receipt of
a copy of the arbitration panel's determination (the "Arbitration Period");
provided, however, that if Landlord enters into a new lease prior to the
expiration of that period for all or some portion of the Premises, Tenant's
obligation to make such monthly payments attributable to the

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<PAGE>

square footage covered by the new lease shall cease on the date Landlord first
receives rent under such new lease. Tenant shall be obligated to make monthly
payments to Landlord in accordance with Section 3(a)(B) of this Agreement from
the date the Arbitration Period expires until the delivery of a written notice
by Tenant to Landlord ("Tenant's Additional Completion Notice") stating that
such additional work has been completed; provided, however, that if Landlord
enters into a new lease prior to the expiration of the Additional Completion
Period for all or some portion of the Premises, Tenant's obligation to make such
monthly payments attributable to the square footage covered by the new lease
shall cease on the date Landlord first receives rent under such new lease. Upon
receipt by Landlord of Tenant's Additional Completion Notice, the parties shall
follow the same procedures as are set forth above in this Section 3(g) with
respect to Tenant's Initial Completion Notice.

     (h) Landlord agrees that it shall use reasonable efforts to complete all
Restoration obligations assumed by it within six (6) months of the date of the
Deficiency Notice. Upon the completion by Landlord of any Restoration
obligations, Landlord shall promptly notify Tenant in writing of such completion
("Landlord's Completion Notice"), and shall set forth in such notice an itemized
list of each element of the Restoration work that was performed by or on behalf
of the Landlord and the actual cost expended by the Landlord on each such
element. Upon receipt of Landlord's Completion Notice, Tenant and a contractor
and/or licensed architect chosen by Tenant shall be granted reasonable access to
the Premises for the sole purpose of inspecting and evaluating the nature,
status and scope of the Restoration obligations performed by or on behalf of the
Landlord. Within thirty (30) days of the receipt of Landlord's Completion
Notice, Tenant may object in writing to the reasonableness of the cost of the
Restoration work performed by Landlord. If, within fifteen (15) days of
Landlord's receipt of Tenant's objection, Landlord and Tenant are unable to
agree on the reasonableness of the cost of Landlord's Restoration work, Landlord
and Tenant shall submit the issue to arbitration in accordance with the
procedures set forth in Section 3(i) below. In the event the arbitration panel
determines that the reasonable cost of the Restoration work performed by
Landlord is less than the actual cost expended as identified in Landlord's
Completion Notice, and that the full amount of the Letter of Credit proceeds
exceeds the reasonable cost of the Restoration work performed by Landlord, then
Landlord shall, within ten (10) days of the issuance of the arbitration panel's
determination, submit to Tenant by wire transfer or by certified or bank check
an amount equal to the portion of the Restoration costs that the arbitrators
determined were not reasonable. In the event the arbitration panel determines
that the full amount of the Letter of Credit proceeds does not exceed the
reasonable cost of the Restoration work performed by Landlord, then, under
Section 18 of the Lease, Tenant shall only be obligated to pay Landlord an
amount equal to the difference between the reasonable cost of the Restoration
work performed by Landlord and the full amount of the Letter of Credit proceeds.

     (i) If within fifteen (15) days of: (i) Tenant's receipt of a Deficiency
Notice under Section 3(g) hereof, or (ii) Landlord's receipt of an objection to
Landlord's Completion Notice under Section 3(h) hereof, Landlord and Tenant are
unable to agree in writing, then within ten (10) days after that date, Landlord
and Tenant shall each select a single arbitrator who shall have at least ten
(10) years experience in the construction of commercial warehouse, assembly and
manufacturing buildings in the Central New Jersey area. Within fifteen (15) days
thereafter, the two selected arbitrators shall select a third arbitrator, and
all three arbitrators shall constitute the panel of arbitrators. If the two
arbitrators selected by Landlord and Tenant fail to agree upon and

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<PAGE>

appoint a third arbitrator within such fifteen (15) day period, then the parties
shall immediately contact the American Arbitration Association ("AAA") in
writing and request that the AAA appoint the third arbitrator within twenty (20)
days of the AAA's receipt of such written request. None of the arbitrators shall
have been affiliated with, or ever worked with or been hired by, either the
Landlord or the Tenant. Within fifteen (15) days of the selection of the first
two arbitrators, the parties shall agree on a written discovery schedule. The
discovery schedule shall provide that all discovery, including expert discovery,
shall be completed within thirty (30) days of the date of the schedule. The
determination of the arbitration panel shall be limited solely to: (i) in the
case of a reference pursuant to Section 3(g) of this Agreement, the issue of
whether under the Lease and this Agreement Tenant is required to perform any or
all of the Restoration obligations identified in the Deficiency Notice, and (ii)
in the case of a reference pursuant to Section 3(h) of this Agreement, the issue
of the reasonableness of the cost of the Restoration work performed by Landlord.
The arbitration panel shall hold a hearing within thirty (30) days of the
discovery deadline, and shall require submission of such further information as
the panel, in its sole discretion, determines to be necessary. Within five (5)
business days of the hearing, the arbitration panel shall inspect the Premises,
and shall issue its determination in writing to both parties within thirty (30)
days of the inspection. The determination by the arbitration panel shall be
binding upon Landlord and Tenant. Each party shall bear the cost of its
arbitrator, experts and attorneys. The cost of the third arbitrator, and any
other fees and expenses incurred in connection with the arbitration, shall be
paid by Landlord and Tenant equally.

     (j) Landlord shall not be entitled to draw on the Letter of Credit unless
either: (a) Tenant has failed timely to renew the expiring Letter of Credit in
accordance with the provisions of Section 2(b) of this Agreement; or (b) Tenant
has failed to perform its Restoration obligations under the Lease and this
Agreement, and the cash Removal Security, if any, held by Landlord is not
sufficient to cover the damages likely to be incurred by Landlord as a result of
such failure. In the event Landlord is entitled to draw on the Letter of Credit,
Landlord shall only be entitled to draw up to the net amount required by
Landlord to perform that portion of the Restoration work that Tenant failed to
perform, after application by Landlord of any cash security deposit (provided
such cash security deposit is not required to cure any other default by Tenant)
or cash Removal Security (including accrued interest) held by Landlord.

     (k) Landlord agrees that upon the submission of any documentation to the
issuer of the Letter of Credit, Landlord shall simultaneously provide copies of
all such documentation to Tenant.

     (l) Any proceeds of the Letter of Credit held by Landlord that are not
expended on Restoration pursuant to the terms hereof shall be promptly delivered
to Tenant after the Restoration is complete.

     4. (a) The parties agree that the Superior Court of New Jersey shall have
exclusive jurisdiction over any subsequent proceeding arising out of, or
relating to, the enforcement of this Agreement, and the parties consent to venue
in Ocean County, New Jersey. The laws of the State of New Jersey shall govern
and apply to such subsequent proceeding, without regard to any conflict of laws
provision.

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<PAGE>

     (b) Each of the parties to this Agreement represents and warrants to and
agrees with each other party hereto as follows:

                  (i) Each party has received independent legal advice from its
attorneys with respect to the advisability of executing this Agreement.

                  (ii) No party, officer, agent, employee, representative or
attorney of or for any party, has made any statement or representation to any
other party regarding any fact relied upon in entering into this Agreement, nor
does any party rely upon any statement, representation or promise of any other
party, officer, agent, employee, representative or attorney of or for any other
party in executing this Agreement, except as expressly stated in this Agreement.

                  (iii) Each of the individuals executing this Agreement on
behalf of their respective entities is empowered to do so and thereby binds such
respective entity.

     (c) Except as modified hereby, the Lease is hereby ratified and shall
remain in full force and effect in accordance with its terms. In the event of
any conflict between the terms of this Agreement and the Lease, the terms of
this Agreement shall control. Landlord and Tenant each represent to the other
that to the best of its knowledge neither party is in default of its obligations
under the Lease as of the effective date of this Fourth Amendment. This Fourth
Amendment shall become effective and binding upon the parties as of the date
both Landlord and Tenant have executed this Fourth Amendment.

     IN WITNESS WHEREOF, Landlord and Tenant have executed this Agreement as of
the day and year first above written.

                                         LANDLORD:

WITNESS:                                 AIRPORT ASSOCIATES

/s/ June Langebin                        By: /s/ Edmund Bennett, Jr.
----------------------------                 ---------------------------------
Name: June Langbein                          Edmund Bennett, Jr., Partner

WITNESS:

/s/ June Langebin                        By: /s/ Edmund Bennett, Jr.
----------------------------                 ---------------------------------
Name: June Langbein                          Ronald Bennett, Jr., Partner

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<PAGE>

                                                     TENANT:

ATTEST:                                     VIVUS, INC.

/s/ Lori Forrest                         By: /s/ Guy P. Marsh
----------------------------                 ---------------------------------
Name: Lori Forrest                           Name: Guy P. Marsh
Title: Assistant Corporate                   Title: Vice President and General
       Controller                                   Manager

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<PAGE>

                                    EXHIBIT A

                               SUBJECT ALTERATIONS

Hand Delivered: Project Manual #96-081, dated 4/9/97 - 745 Airport Road,
Lakewood, NJ

Drawings as listed:

Drawings      Issued       Revisions      Revisions     Revisions
--------      ------       ---------      ---------     ---------
LA.1          4/23/97       6/12/97        7/24/97
4A.1          4/29/97       6/12/97        6/20/97       7/14/97        8/11/97
4A.2          4/29/97       6/12/97        6/20/97       7/14/97
4A.3          4/29/97       6/12/97
4A.4          4/29/97       6/12/97        7/31/97       8/11/97        9/8/97
4A.5          4/29/97       6/12/97
4A.6          4/29/97       6/12/97        6/20/97       6/23/97        7/14/97
4A.7          4/29/97       6/12/97        7/9/97
4A.8          4/29/97       6/12/97        7/3/97
4A.9          6/28/97       8/11/97
4A.10         6/28/97

4S.1          3/19/97       4/21/97
4S.2          3/19/97       4/21/97        4/27/97
4S.3          3/19/97       4/21/97        4/27/97

FP.1          5/6/97

4PO.1         4/29/97       5/5/97         5/27/97       6/6/97
4P1.0         4/29/97       6/9/97         6/20/97       7/2/97
4P1.1         4/29/97       6/9/97         6/20/97       7/1/97
4P1.2         4/29/97       6/9/97         9/20/97
4P2.0         4/29/97       6/9/97         6/20/97       7/2/97
4P2.1         4/29/97       6/9/97         6/20/97       7/1/97
4P3.0         4/29/97
4P3.1         4/29/97       6/9/97         6/27/97       7/2/97
4P4.0         4/29/97

4HVAC.1       4/29/97
4HVAC1.1      4/29/97       6/12/97        7/15/97
4HVAC1.2      4/29/97       6/12/97
4HVAC2.1      4/29/97       6/12/97
4HVAC2.2      4/29/97       6/12/97
4HVAC3.1      4/29/97
4HVAC3.2      4/29/97
4HVAC3.3      4/29/97
4HVAC4.1      4/29/97       6/12/97        7/15/97
4HVAC4.2      4/29/97       6/12/97
4HVAC5.1      4/12/97       6/12/97        7/15/97

4E.1          4/29/97       6/12/97
4E.2          4/29/97       9/12/97
4E.3          4/29/97       6/12/97        8/27/97
4E.4          4/29/97       6/12/97        8/27/97
4E.5          4/29/97       8/27/97
4E.7          4/29/97       6/12/97        8/27/97
4E.8          4/29/97       6/12/97        8/27/97

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<PAGE>

Hand Delivered: Project Manual #96-081, dated 3/20/97 - 735 Airport Road,
Lakewood, NJ

Drawings as listed:

Drawings      Issued       Revisions      Revisions     Revisions
--------      ------       ---------      ---------     ---------
3A.1          5/23/97       6/23/97
3A.2          5/7/97        6/23/97
3A.3          5/7/97        6/23/97
3A.4          5/7/97        6/23/97
3A.5          5/7/97        6/23/97
3A.6          5/13/97       6/23/97        9/8/97
3A.7          5/7/97        6/23/97
3A.8          5/13/97       6/23/97        7/3/97

3D.1          5/13/97

3P0.1         7/23/97       7/31/97
3P1.0         7/23/97       5/27/97        6/9/97        7/31/97
391.1         7/23/97       5/27/97        6/9/97        7/31/97
3P1.1         7/23/97       5/27/97        6/9/97        8/19/97        9/16/97
3P2.0         7/23/97       7/31/97
3P2.1         7/23/97       7/31/97
3P2.2         7/23/97       7/31/97
3P3.0         7/23/97       7/31/97
3P3.1         7/23/97       7/31/97
3P4.0         7/23/97

3HVAC0.1      5/21/97       5/21/97
3HVAC1.1      5/21/97       7/15/97
3HVAC1.2      5/21/97       5/21/97
3HVAC2.1      5/21/97       7/15/97
3HVAC2.2      5/21/97       7/15/97
3HVAC3.1      5/21/97
3HVAC3.2      5/21/97       7/15/97
3HVAC3.3      5/21/97
3HVAC4.1      5/21/97       7/15/97
3HVAC4.2      5/21/97       7/15/97
3HVAC5.1      5/21/97       7/15/97

3E.1          5/7/97        8/12/97
3E.2          5/7/97        8/12/97
3E.4          5/7/97        8/12/97
3E.5          5/7/97        8/12/97
3E.6          5/7/97        8/12/97
3E.7          5/7/97        8/12/97
3E.8          5/7/97        8/12/97
3E.9          5/7/97        8/12/97

                                       11
<PAGE>
                                                                       EXHIBIT B
                                                                       ---------

                                 BANK OF AMERICA

                    IRREVOCABLE STANDBY LETTER OF CREDIT NO.

Date of Issue:    October 25, 2000

Applicant:        VIVUS, Inc.
                  1172 Castro Street
                  Mountain View, CA 94040

AMOUNT:           $3,324,143.00

BENEFICIARY:      Airport Associates
                  1245 Airport Road
                  Lakewood, New Jersey 08701

     At the request and for the account of Vivus, Inc. (the "Account Party") we
hereby establish in your favor our irrevocable standby Letter of Credit No.
       ("Letter of Credit") in the aggregate amount of THREE MILLION THREE
HUNDRED TWENTY FOUR THOUSAND ONE HUNDRED FORTY THREE DOLLARS ($3,324,143.00).

     We are advised that this Letter of Credit is issued with respect to that
certain Lease Agreement dated as of January 1, 1997, as the same has been and
may in the future be amended, between you, as Landlord, and the Account Party,
as Tenant. Said Lease Agreement, and any amendments or modifications thereof, is
hereinafter referred to as the "Lease".

     Funds under this Letter of Credit are available to you by wire transfer of
funds to an account or accounts designated by you within one (1) business day
after presentation of the following documents at our office at 333 S. Beaudry,
19th Floor, Mail Code: CA9-703-19-23, Los Angeles, Ca 90017 Attn: Standby Letter
of Credit Dept. in person, or by delivery by a reputable overnight courier,
prior to the close of business on the expiration date set forth below:

     1.   Your sight draft drawn on us in an amount not exceeding the amount of
          this Letter of Credit (less sums previously paid by us hereunder)
          executed by the person executing the Certification (as defined below)
          and bearing the number of this Letter of Credit; and

     2.   A written certification (the "Certification") executed by a natural
          person, specifically certifying that: (a) such person is your duly
          authorized representative; (b) pursuant to the Lease, Landlord is
          entitled to draw on this Letter of Credit; (c) the amount available to
          be drawn under this Letter of Credit by you; and (d) the wire transfer

                                       12
<PAGE>

          instructions for the account or accounts designated by you to which
          the funds drawn under this Letter of Credit are to be delivered.

     The amount available to be drawn under this Letter of Credit shall be
irrevocably reduced by the amount of each draw hereunder.

     The expiration of this Letter of Credit is February 15, 2002, but such
expiration date shall be automatically extended without amendment for a period
of one (1) year from the present expiration date and any future expiration
dates, but in no event later than August 31, 2013, unless, at least 60 days
before any expiration date, we notify you by registered mail or overnight
courier service at the above address, that this letter of credit is not extended
beyond the current expiration date.

     This Letter of Credit may be drawn upon in one or more drafts not
exceeding, in the aggregate, the amount available hereunder.

     We hereby issue this Letter of Credit in your favor, and we hereby
undertake to honor all drafts drawn under and in compliance with the terms of
this Letter of Credit.

     This Letter of Credit shall be governed by and construed in accordance with
the Uniform Customs and Practices for Documentary Credits (1993 revision)
International Chamber of Commerce Publication 500.

                                           BANK OF AMERICA, N.A.

                                           By: /s/ Lawrence Banales
                                                 Authorized Signature

                                           By: /s/ Michael Boriboon
                                                 Authorized Signature

                                       13EXHIBIT 10.48
                                                                   -------------

                        EXCLUSIVE DISTRIBUTION AGREEMENT
                        --------------------------------

         This Exclusive Distribution Agreement ("Agreement") is made as of
October 1, 2002 (the "Effective Date"), between, VIVUS, Inc., a Delaware
corporation, having its principal place of business at 745 Airport Road,
Lakewood, NJ 08701 ("Client"), and CORD Logistics, Inc., an Ohio corporation,
having its principal place of business at 15 Ingram Blvd LaVergne, TN 37086
("CORD").

         A.   Client is, among other things, in the business of developing and
marketing pharmaceutical products in the United States, the District of Columbia
and Puerto Rico (the "Territory").

         B.   CORD is, among other things, in the business of distributing
pharmaceutical products to wholesalers, specialty distributors, physicians,
clinics, hospitals, pharmacies, and other health care providers in the
Territory, and of providing Information Systems and other services that support
its customers' use of its distribution capabilities.

         C.   Client desires to engage CORD as its exclusive distribution agent
for commercial sales of MUSE in all formulations, and such other pharmaceutical
products agreed to by the parties (collectively, the "Product") in the Territory
and to perform certain other services described in this Agreement, all upon the
terms and conditions set forth in this Agreement.

         THEREFORE, in consideration of the mutual conditions and covenants set
forth herein, CORD and Client (collectively referred to as "Party" or "Parties")
agree as follows:

         1.   APPOINTMENT/AUTHORIZATION.
              --------------------------

         1.1  Upon the terms and conditions set forth in this Agreement, Client
appoints CORD as its exclusive distribution agent of Product in the Territory to
Client's customers, including, but not limited to, wholesalers, specialty
distributors, physicians, clinics, hospitals, pharmacies and other health care
providers in the Territory (collectively, "Customers").

         1.2  Subject to the terms and conditions set forth in this Agreement,
CORD accepts the appointment to represent Client as its authorized exclusive
distribution agent of Product to Customers in the Territory.

         2.   SERVICES.
              ---------

         2.1  CORD shall provide the services set forth in the Operating
Guidelines, which include, without limitation, storage, distribution, returns,
customer support, financial support, EDI and system access support ("Services").
A copy of the Operating Guidelines is attached hereto as Exhibit A and
incorporated by reference.

         2.2  The Operating Guidelines may be amended from time to time upon the
mutual written agreement of the Parties; provided, however, that any change,
modification or amendment to the Operating Guidelines may result in an increase
in the fees charged by CORD in Section 5.

         2.3  CORD's services shall comply with the Operating Guidelines,
provided Client's shipments of Product to CORD are within twenty-five percent
(25%) of its Forecast (as hereinafter defined).
<PAGE>
         2.4  All Product Returns shall be processed and handled by CORD in
accordance with the Operating Guidelines; and, any customization or additional
return services requested by Client shall be performed at an additional fee as
agreed by the Parties.

         2.5  Client is solely responsible for all Product recalls. In the event
Product is subject to recall, or Client, on its own initiative, recalls any
Product, CORD shall provide assistance to Client as set forth in the Operating
Guidelines, provided that Client shall pay to CORD an amount equal to CORD's
actual costs incurred with any such recall services. Such cost shall be in
addition to the Service Fees described in Section 5 below.

         3.   PRODUCT SUPPLY/CLIENT RESPONSIBILITIES.
              ---------------------------------------

         3.1  Client shall deliver Product to CORD at CORD's facility located at
15 Ingram Boulevard, Suite 100, LaVergne, TN 37086, or such other distribution
facility as may be mutually agreed to in writing by Client and CORD
("Facility").

         3.2  Client shall be responsible for delivery of Product to the
Facility, including all costs, expenses and risk of loss associated with such
delivery. Title to Product shall remain with Client at all times, even when
Product is stored or warehoused at the Facility. Client shall at all times
insure the Product for damage, loss, destruction, theft or any such other
property damage ("Loss") as further set forth in Section 15 below. Except for
Loss resulting solely from the gross negligence or willful misconduct of CORD,
Client shall bear all risk of loss or damage with respect to the Product stored
or warehoused at the Facility.

         3.3  Client shall provide CORD with a forecast of the volume of Product
to be handled by CORD under this Agreement, not less often than semi-annually
("Forecast"). Upon execution of this Agreement, Client shall deliver to CORD a
customer list, which sets forth the Product prices (the "Customer Price List").
Client shall notify CORD of any change in the Customer Price List not less than
seventy-two (72) hours prior to the effective date of any such change. CORD
shall use commercially reasonably efforts to implement such price change in
accordance with Client's instruction.

         3.4  CORD shall visually inspect each shipment of Product for external
damage or loss in transit and notify Client of any such damage or loss within a
commercially reasonable period of time following discovery.

         4.   INFORMATION SYSTEM ACCESS.
              --------------------------

         4.1  CORD shall provide Client access to an Operating System Base,
which consists of the software used by CORD to support the services provided to
Client, including the server and other components needed to execute the software
and certain support services associated therewith, as further set forth in the
Operating Guidelines (collectively, the "System"), upon the terms and conditions
set forth in the System Access Agreement. A copy of the System Access Agreement
is attached as Exhibit C and incorporated herein by reference. The software
releases are (i) EliteSeries 6.1.2, as modified by CORD, supplied by Tecsys,
Inc., a Montreal, Quebec, Canadian company, and any upgrades, maintenance
releases or modifications implemented by CORD to support distribution services
provided by CORD; (ii) BACCS 3.0 as modified by CORD and any upgrades
implemented by CORD to support financial services provided by CORD; and (iii)
Impromptu 6.0, supplied by Cognos Inc., a Canadian company, and any upgrades,
maintenance releases or modifications implemented by CORD to support reporting
services provided by CORD.

                                        2
<PAGE>
         4.2  The System shall be made available to Client at the fees set forth
in the Fee Schedule, except that any custom enhancements requested by Client
shall be billed separately based on an hourly rate set forth in the Fee Schedule
(as defined in Section 5).

         4.3  In addition to the terms set forth in the System Access Agreement,
Client shall maintain (i) a local area network sufficient to support Client's
terminals and personal computers that have access to the System, all such
personal computers shall meet the minimum specifications necessary to support
software needed to access the system; (ii) a centralized server sufficient for
data storage, if data export requirements exist; and (iii) a connection to the
internet sufficient to support system access. Client shall also assign
knowledgeable and qualified employees or representatives to facilitate access to
the System.

         5.   FEES.
              -----

         5.1  As compensation for the Services, Client shall pay to CORD the
fees (the "Fees") set forth on Exhibit B (the "Fee Schedule").

         5.2  CORD shall issue an invoice to Client for the Services rendered
under this Agreement or for any other amounts due on a monthly basis. Payment is
due within twenty-eight (28) days of the invoice date. If the Invoice is not
paid within such twenty-eight (28) day period, a service charge on the unpaid
amount calculated at the rate of 1.5% per month (or the maximum rate permitted
by law if such rate is less than 1.5% per month) shall be imposed until such
amount is paid in full.

         5.3  The Fees shall be held firm for the first contract year.
Thereafter, CORD shall adjust the price not more often than once per contract
year by the greater of (i) the increase in the Producer Price Index - All
Commodities published by the United States Department of Labor, Bureau of
Statistics, as amended from time to time, or (ii)         [*]        . For
purposes of sub-Section (i), the base point shall be the index level on the
first day of the contract year.

         5.4  Notwithstanding the terms set forth above in Section 5.3, if CORD
can reasonably demonstrate that the costs for providing the Services have
materially increased, or are likely to materially increase in the coming year
due to the adoption of any applicable law or regulation (or any material change
in the interpretation or administration thereof), or due to unforeseen
circumstances beyond CORD's reasonable control, then upon notice from CORD, the
Parties agree to meet in good faith and negotiate a mutually acceptable
adjustment to the Fees.

         6.   TERM AND TERMINATION.
              ---------------------

         6.1  The initial term of this Agreement shall begin on the Effective
Date and shall continue for a period of three (3) years (the "Initial Term"),
unless terminated earlier pursuant to this Agreement. Thereafter, this Agreement
shall automatically renew for additional terms of one (1) year each, unless
written notice of termination is given by either Party at least ninety (90) days
prior to the end of the Initial Term, or such other term, in which case this
Agreement shall terminate at the end of the then current term.

         6.2  Either Party shall have the right to terminate this Agreement:

              (a) upon one hundred eighty (180) days prior written notice to the
other Party, provided that in the event Client terminates this Agreement,
without cause, prior to the end of the Initial Term, such termination shall be
effective only upon payment to CORD of all remaining fixed Fees set forth on the
Fee Schedule for the remainder of the Initial Term;

                                        3
<PAGE>
              (b) upon the breach by the other Party of a material provision of
this Agreement and that Party's failure to cure such breach within thirty (30)
days following written notice thereof from the non-breaching Party, provided
that, with respect to any failure to make any payment when due under this
Agreement, such period to cure shall be reduced to ten (10) days; or

              (c) immediately upon notice to the other Party following the
commencement of any bankruptcy or insolvency proceeding (whether voluntary or
involuntary) with respect to such other Party or its assets, which in the event
of an involuntary proceeding, is not dismissed within sixty (60) days, the
general assignment for the benefit of creditors by such other Party, or the
appointment of a receiver, trustee or liquidator by or for such other Party.

         6.3 Client shall have the right to terminate this Agreement upon thirty
(30) days written notice if CORD is unable to provide the services set forth in
the Operating Guidelines at the Facility for a period of five (5) days or more,
and provided the parties are unable to mutually agree in writing to the use of
another distribution facility within such thirty day notice period.

         6.4  Termination or expiration of this Agreement shall not relieve
either Party from any liability or obligation that accrued prior to such
termination or expiration. Upon termination or expiration of this Agreement, all
Product shall be returned to Client or a designee of Client, at Client's sole
cost and expense. Sections 11,12, 13 and 14 shall survive termination or
expiration of this Agreement.

         7.   AUDITS. Client or its designee shall have the right to conduct the
following audits each calendar year: (a) one audit to confirm compliance with
all relevant Federal Drug Administration regulations ("Regulations"), including
applicable Current Good Manufacturing Practices ("CGMPs"); (b) one physical
audit of such portions of the Facility that relate solely to Product stored and
warehoused at the Facility under this Agreement; and (c) one audit of CORD's
financial records as they relate to the storage and distribution of the Product.
In addition to the audits described above, Client shall have the right to
conduct such additional audits as are necessary to investigate issues of
noncompliance with applicable Regulations and CGMPs, and to investigate apparent
discrepancies in data relating to the storage and distribution of the Product.
All audits permitted by this Section 7 shall be conducted during normal business
hours (i.e., 8:00 a.m. to 5:00 p.m. local time), upon five (5) business days
prior written notice to CORD.

         8.   COMPLIANCE WITH LAWS. Each Party shall conduct its activities in
connection with this Agreement in compliance with all applicable laws, rules,
regulations, and orders of governmental entities.

         9.   REPRESENTATIONS AND WARRANTIES.
              -------------------------------

         9.1  Each Party represents and warrants to the other that:

              (a) it has full power and authority to enter into this Agreement
and perform all obligations and conditions to be performed by it under this
Agreement without any restriction by any other Agreement or otherwise;

              (b) the execution, delivery and performance of this Agreement have
been duly authorized by all necessary corporate action of that Party; and

              (c) this Agreement constitutes the legal, valid and binding
obligation of that Party.

         9.2  Client further represents and warrants to CORD that the Product:

                                        4
<PAGE>
              (a) is and shall be manufactured in conformity with the Food, Drug
and Cosmetic Act, as amended from time to time, and all other applicable laws,
rules, regulations and orders of governmental entities relating to the
manufacture, promotion, sale or distribution of the Product;

              (b) does not violate or infringe any patent, trademark, tradename
or other interest of any person or entity.

         10.  TAXES. Client shall pay when due all sales, use, gross receipts,
excise, personal property taxes associated with the Product (excluding any
personal property tax associated with CORD's equipment used in connection with
the Services), and other taxes now or hereafter imposed as a result of the
transactions contemplated by this Agreement, none of which have been included in
the fees payable to CORD under this Agreement; provided that the amounts payable
by Client under this section shall not include taxes based on the net income of
CORD.

         11.  TRADEMARKS. Neither Party shall have the right to use the name of
the other Party or any Affiliate of the other Party, or the other Party's or
such Affiliates' trademarks, service marks, logos, or other similar marks in any
manner except with the prior written approval of that Party; provided that the
foregoing shall not prohibit CORD's use of Client's names or marks in connection
with the performance of the Services in a manner consistent with this Agreement.
"Affiliate," as used in this Agreement, means any legal entity which, during the
Term hereof, controls, is controlled by, or is under common control with, such
Party. For purposes of this definition, an entity shall be deemed to control
another entity if it owns or controls, directly or indirectly, at least fifty
percent (50%) of the voting interest of all equity interests of the other entity
(or other such comparable ownership interest for an entity other than a
corporation).

         12.  CONFIDENTIALITY.
              ----------------

         12.1 Each Party acknowledges that as a result of this Agreement it may
learn and have access to trade secrets and other confidential and proprietary
information of the other Party through employees, representatives and/or agents
acting on behalf of or subcontracted to either Party (collectively the
"Representatives"), including without limitation, financial information,
information regarding business practices and techniques, and systems and
technology information, or any information identified as confidential in writing
by either Party (the "Confidential Information"). For purposes of this
Agreement, Confidential Information shall not include information disclosed by
one Party to the other Party to the extent that such information can be proven
by written evidence: (a) to be in the public domain or generally available in
the industry in which the disclosing Party engages in business without any
violation of this Agreement by the other Party; (b) is already legally known to
the other Party or any of its Affiliates at the time of its disclosure by the
disclosing Party; (c) becomes known to the other Party or any of its Affiliates
from a third party without any obligation of confidentiality or limitation on
use; or (d) is independently developed by the other Party or any of its
Affiliates prior to the date of its disclosure. The specific material terms of
this Agreement shall be deemed to be the Confidential Information of each Party.
Confidential Information shall not be deemed to be in the public domain or
publicly known or in the receiving Party's possession because it is embraced by
more general information in the receiving Party's possession or because it is
embraced in general terms in publications.

         12.2 Neither Party shall, directly or indirectly, at any time: (a)
disclose to any third person or entity any Confidential Information of the other
Party (whether learned before or after the date of this Agreement), or (b) use,
or permit or assist any third person or entity to use, any such Confidential
Information, excepting only: (i) disclosures required by law, rule, regulation
or order, as reasonably determined by the disclosing Party or its legal counsel,
and (ii) disclosures on a confidential basis to

                                        5
<PAGE>
directors, officers, employees, and agents of that Party or its Affiliates who
have a reasonable need to know such Confidential Information in the normal
course of business of that Party or any of that Party's Affiliates.

         12.3 The obligations of confidentiality hereunder shall survive the
termination of this Agreement for a period of three (3) years. Upon termination
of this Agreement (for any reason) each Party shall promptly: (i) return to the
other Party all documentation and other materials (including copies of original
documentation or other materials) containing any Confidential Information of the
other Party; or (ii) with the other Party's consent, which consent will not be
unreasonably withheld, certify to the other Party, pursuant to a certificate in
form and substance reasonably satisfactory to the other Party, as to the
destruction of all such documentation and other materials.

         13.  INDEMNIFICATION. Each Party shall indemnify and hold harmless the
other Party and its parent and Affiliates, and each of their directors,
officers, employees, agents, and representatives from and against all claims,
liabilities, losses, damages, costs, and expenses, including, without
limitation, reasonable attorneys' fees ("Liability") by a third party arising
directly or indirectly out of any failure of that Party to perform fully all
obligations and conditions to be performed by that Party pursuant to this
Agreement or any breach of any warranty made by that Party in this Agreement.
Client further agrees to indemnify and hold harmless CORD, its parent and
Affiliates and each of their directors, officers, employees, agents and
representatives from any and all Liability arising directly or indirectly out of
injury or death to person or property alleged to have been caused by Client's
Product, unless such Liability arose in whole or part as a result of the
negligence, gross negligence or willful misconduct of CORD.

         14.  LIMITATION OF LIABILITY. NOTWITHSTANDING THE FOREGOING PROVISIONS
OF SECTION 13, OR ANY OTHER PROVISION OF THIS AGREEMENT TO THE CONTRARY, NEITHER
PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY CONSEQUENTIAL (SPECIFICALLY
EXCEPTING THOSE CONSEQUENTIAL DAMAGES ARISING FROM EACH PARTY'S OBLIGATION TO
INDEMNIFY THE OTHER FOR LIABILITY ARISING OUT OF OR RELATING TO THIRD PARTY
CLAIMS IN ACCORDANCE WITH SECTION 13 ABOVE), INCIDENTAL, INDIRECT, SPECIAL, OR
OTHER SIMILAR DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.

         15.  INSURANCE. During the term of this Agreement and for as long
thereafter as necessary to cover claims resulting from this Agreement, Client
shall maintain: (i) product liability and commercial general liability insurance
having a limit of not less than    [*]    ; and (ii) property damage insurance
at replacement value for the Product located at the CORD Facility or in transit
to or from the CORD Facility, pursuant to one or more insurance policies with
reputable insurance carriers. Cardinal Health, Inc. and its subsidiaries shall
be designated as "additional insureds" under the product liability and
commercial general liability insurance policy(ies) and as "loss payees" under
the property damage insurance policy(ies). Prior to the Commencement Date,
Client shall deliver to CORD certificates evidencing such insurance. Client
shall not cause or permit such insurance to be canceled or modified to
materially reduce its scope or limits of coverage during the term of this
Agreement or thereafter as provided above. Except for any losses resulting
solely from the gross negligence or intentional misconduct of CORD, Client shall
bear all risk of loss or damage with respect to the Product, whether located at
the Facility or otherwise.

         16.  DISPUTE RESOLUTION. The Parties agree to use good faith efforts to
resolve all disputes within sixty (60) days of written notice that such a
dispute exists. If dispute under this Agreement cannot be resolved by the
Parties within such sixty (60) day period, the Parties agree to refer the matter
to one executive from each Party not directly involved in the dispute for review
and resolution. A copy of the

                                        6
<PAGE>
terms of this Agreement, agreed upon facts and areas of disagreement, and a
concise summary of the basis for each side's contentions will be provided to
both executives who shall review the same, confer, and attempt to reach a mutual
resolution of the issue within forty-five (45) days after receipt of the
materials referenced above. If the matter has not been resolved within such
forty-five (45) day period, either or both Parties may pursue resolution of the
matter through a binding, non-reviewable and non-appealable alternative dispute
resolution process conducted within the State of New Jersey by a sole arbitrator
in accordance with the Non-Administered Arbitration Rules of the CPR Institute
for Dispute Resolution. The existence of the dispute, the dispute resolution
process and the arbitrator's award shall be maintained confidential, provided
that the arbitrator's award may be entered as a final judgment in any court
having jurisdiction.

         17.  MISCELLANEOUS.
              --------------

         17.1 Independent Contractor. The relationship of the Parties is that of
independent contractors, and neither Party shall incur any debts or make any
commitments for the other Party except to the extent expressly provided in this
Agreement. Nothing in this Agreement is intended to create or shall be construed
as creating between the Parties the relationship of joint venturers,
co-partners, employer/employee or principal and agent.

         17.2 Notices. Any notice or other communication required or desired to
be given to any Party under this Agreement shall be in writing and shall be
deemed given: (a) three business days after such notice is deposited in the
United States mail, first-class postage prepaid, and addressed to that Party at
the address for such Party set forth at the end of this Agreement; (b) one
business day after delivered to Federal Express, Airborne, or any other similar
express delivery service for next-day delivery to that Party at that address; or
(c) when sent by facsimile transmission, with electronic confirmation, to that
Party at its facsimile number set forth at the end of this Agreement. Any notice
delivered by facsimile transmission will be deemed delivered upon electronic
confirmation provided the notice is also deposited in the U.S. mail, first-class
postage prepaid. Any Party may change its address or facsimile number for
notices under this Agreement by giving the other Parties written notice of such
change.

         17.3 Governing Law. This Agreement shall be construed under the laws of
the State of Tennessee, without regard to its conflicts of laws provisions.

         17.4 Severability. If any term of this Agreement is declared invalid or
unenforceable by a court or other body of competent jurisdiction, the remaining
terms of this Agreement will continue in full force and effect.

         17.5 Non-Waiver. No failure by either Party to insist upon strict
compliance with any term of this Agreement, to enforce any right, or to seek any
remedy upon any default of the other Party shall affect, or constitute a waiver
of, the first Party's right to insist upon strict compliance, to exercise that
option, to enforce that right, or to seek that remedy with respect to that
default or any prior, contemporaneous, or subsequent default. No custom or
practice of the Parties at variance with any provision of this Agreement shall
affect, or constitute a waiver of, that Party's right to demand strict
compliance with all provisions of this Agreement.

         17.6 Force Majeure. If the performance of any part of this Agreement by
either Party shall be prevented, restricted, interfered with or affected for any
length of time by fire or other casualty, government restrictions, war, riots,
strikes or labor disputes, lock out, transportation delays, acts of God, or any
other causes which are beyond the reasonable control of such Party, such Party
shall not be responsible for delay or failure of performance of this Agreement
for such length of time, provided, however, that the obligation of one Party to
pay amounts due to the other Party shall not be subject to the provisions of
this Section.

                                        7
<PAGE>
         17.7 Complete Agreement. This Agreement constitutes the entire
understanding between the Parties and supersedes any contracts, agreements or
understanding (oral or written) of the Parties with respect to the subject
matter hereof. No term of this Agreement may be amended except upon written
agreement of both Parties, unless provided otherwise in this Agreement.

         17.8 Assignment. Except as set forth herein, neither Party shall have
the right to assign this Agreement, or any of such Party's rights or obligations
under this Agreement, without the prior written consent of the other Party,
provided, however, that CORD may assign its rights under this Agreement to any
parent, subsidiary or affiliate without obtaining such consent. This Agreement
shall be binding upon, inure to the benefit of, and be enforceable by and
against the respective successors and assigns of the Parties.

         IN WITNESS WHEREOF, the undersigned acknowledge and accept the terms of
this Agreement and have duly executed this Agreement.

CORD LOGISTICS, INC.                        VIVUS, INC.

By /s/ Frank C. Wegerson                    By /s/ Guy P. Marsh
   ---------------------------                 ---------------------------
   Frank C. Wegerson                           Guy P. Marsh
   Vice President and General Manager          V.P. U.S. Operations
   1135 Heil Quaker Blvd, #100                 745 Airport Road
   LaVergne, TN 37086                          Lakewood, NJ 08701

   Facsimile No.  (615) 793-4783               Facsimile No. (732) 942-4821

                                        8
<PAGE>

                                    EXHIBITS
                                    --------

                           Exhibit A        Operating Guidelines

                           Exhibit B        Fee Schedule

                           Exhibit C        System Access Agreement

                                        9
<PAGE>
                                                                       EXHIBIT A
                                                                       ---------

                              OPERATING GUIDELINES
                              --------------------

In performing its obligations under the Distribution Services Agreement
("Agreement"), CORD Logistics, Inc. ("CORD") will follow the Operating
Guidelines as developed jointly with VIVUS, Inc. ("CLIENT"). These Operating
Guidelines are in addition to CORD Standard Operating Procedures ("SOPs").
Copies of these documents are maintained by both parties and will be reviewed,
and updated if necessary, from time to time as mutually agreed, but not less
than once per calendar year.

1.0  WAREHOUSING
----------------
1.1  CORD will maintain its warehouse facility in accordance and comply with all
     federal, state and local laws, rules and regulations, including the
     Prescription Drug Marketing Act and current Good Manufacturing Practices
     ("cGMP") as promulgated under the FDA.
1.2  CORD will maintain Standard Operating Procedures appropriate for a
     pharmaceutical distribution center operating environment.
1.3  CORD will maintain documented training programs.
1.4  CORD will comply with storage, handling and shipping conditions designated
     by CLIENT for the "Products".
1.5  Products with specific storage requirements must be identified by CLIENT
     and the storage requirements must be expressly communicated by CLIENT to
     CORD. The specific requirements must be identified on the package label in
     accordance with NWDA bar coding standards. Product so identified by CLIENT
     will be stored in areas designed, continuously monitored and periodically
     validated for the temperature range specified for each product. CORD will
     maintain daily temperature recordings. CORD will provide such records to
     the CLIENT upon written request.
     1.5.1 Frozen - [*]
     1.5.2 Refrigerated - [*]
     1.5.3 Controlled ambient - [*]
     1.5.4 Controlled ambient - [*]
1.6  CORD will report temperature excursions to the CLIENT within two (2)
     business days of occurrence.
1.7  Products will be stored in an area with secured access, accessible only to
     authorized CORD personnel as agreed to by CLIENT and CORD.

2.0  RECEIVING
--------------

2.1  CLIENT or CLIENT's contract manufacturing agent will arrange transportation
     services to transfer the product to CORD. CLIENT will notify CORD of the
     specific delivery schedule.
2.2  CLIENT's carrier will contact CORD to arrange a delivery appointment.
2.3  CLIENT retains title to the goods at all times. CORD's signature on the
     carrier's bill of lading is an acknowledgement only of CORD's receipt of
     product.
2.4  CLIENT will provide CORD with Material Safety Data Sheets for each product
     stored at CORD.
2.5  CLIENT's product must meet the following standards for carton
     identification, documentation, palletization, and uniformity:
     2.5.1 Each shipping carton and inner packaging of CLIENT product must be
           labeled to meet NWDA standards for bar coding and human readable
           markings.
     2.5.2 CLIENT will provide the bill of lading, certificate of analysis and
           other documentation necessary. CORD and CLIENT will mutually agree
           upon the receiving process.
     2.5.3 Pallets will meet GMA standards for 40" x 48" dimensions with
           four-way entry; will be free of broken boards, treated for pests, and
           clean.
     2.5.4 Receipt of product on non-standard pallets may require restacking
           onto conforming pallets at CLIENT's expense.
     2.5.5 Palletized product must be uniform and consistent with specifications
           set up in the product master for the number of cartons and eaches.
2.6  CORD will receive each shipment into a secure Receiving area.

                                       10
<PAGE>
2.7  CORD will count and inspect the exterior packaging of the product, noting
     any shortages, overages or damage on the carrier bill of lading. CORD will
     obtain the carrier's signature on the bill of lading acknowledging the
     condition of the product upon receipt by CORD.
2.8  CORD will compare the CLIENT's documentation to CORD's receiving report.
     Discrepancies will be noted. CORD Quality Assurance will investigate and
     report all discrepancies to CLIENT within 24 hours of receipt. CLIENT and
     CORD will determine corrective actions, if any.
2.9  CORD will post receipts in the computer inventory system within one
     business day of delivery unless count discrepancies, missing paperwork,
     damage investigation, and other receiving anomalies interfere with
     efficient receiving and documentation. CORD will use commercially
     reasonable efforts to receive product accurately and efficiently.
2.10 CORD reserves the right to assess a fee for services required to hold
     non-conforming product in receiving, and to investigate, reconcile and
     report discrepancies to the CLIENT. Fees for receiving services are listed
     in the Fee Schedule, Exhibit C.
2.11 CORD will return partial case quantities - defined as less than a saleable
     quantity - to the CLIENT at CLIENT's expense.
2.12 CLIENT product in unapproved or quarantine status will be physically
     segregated and CORD's computer system will be flagged accordingly to
     prevent unapproved product from entering approved picking areas of the
     warehouse. CLIENT will provide written documentation to CORD to change
     quarantine product to approved status.
2.13 CORD will move product from the Receiving area to bulk storage following
     CORD SOPs.

3.0  INVENTORY
--------------
3.1  Inventory will be received, tracked and controlled on CORD's computerized
     inventory system by item number, lot number, expiration date, quantity, and
     status. CORD system will meet all cGMP requirements for lot traceability
     and accountability, from receipt of product at CORD to shipment of product
     to CLIENT's customer.
3.2  Quarantined product will be physically segregated and appropriately
     labeled. Quarantined Product will be released from quarantine status in
     CORD's inventory system upon written authorization by CLIENT.
3.3  CORD will assign unique locations for each product and lot in storage.
3.4  Inventory will be routinely verified by CORD through periodic cycle counts.
     CORD will use its best efforts to maintain accurate and timely inventory
     records.
3.5  Inventory deviations will be investigated by CORD and reported to CLIENT.
     Corrective actions will be determined jointly by CORD and CLIENT.
3.6  CORD will notify CLIENT of all expired or short dated Product (as specified
     by CLIENT to be "6" number of months prior to expiry date).
3.7  Disposition of returned, rejected or expired Product will be handled
     according to CLIENT's specific written direction.

4.0  DISTRIBUTION
-----------------

4.0  Orders approved and available for processing (pick & pack) by 2:00 p.m.
     Central Time will be shipped before the close of business the same day,
     Monday through Friday. Orders received by EDI and approved for inventory
     allocation by 12:00 noon will be shipped by close of business the same day.
     Orders received and processed after the cutoff times will be shipped the
     following business day.
4.1  Recognizing that order volume may fluctuate from time to time, CORD will
     staff to meet 125% of the rolling average number of CLIENT orders processed
     over the previous two (2) calendar months. CORD will use commercially
     reasonable efforts to meet the shipping schedule outlined herein when order
     or unit volume exceeds 125% of the rolling average number of orders or
     units; provided, however, that CORD cannot guarantee daily on-time shipping
     standards will be achieved during such increased activity periods.

                                       11
<PAGE>
4.2  CORD will measure the timeliness of shipments and will report this
     attribute periodically according to Section 19 of the Operating Guidelines.
4.3  Emergency shipments and other exceptions will be authorized in writing by
     CLIENT. CORD will separately invoice CLIENT for emergency shipments, which
     are defined as shipments occurring on weekends, holidays, and non-standard
     hours, as defined in the Fee Schedule, Exhibit C.
4.4  CORD's inventory system will comply with First-to-Expire, First-Out (FEFO)
     inventory allocation. Any exceptions from FEFO must be approved by CLIENT
     in writing prior to shipment.
4.5  CORD will provide the system, equipment and procedures, along with trained
     personnel and supervision to services related to picking product for
     CLIENT's customer orders.
4.6  CORD will perform quality verification on all CLIENT shipments by an
     individual other than the employee who picked the order. CORD will use
     commercially reasonable efforts to pick, check and ship accurately all
     CLIENT customer orders.
4.7  CORD and CLIENT will mutually determine and agree in writing on the
     packaging requirements for shipping CLIENT's finished product(s). CORD's
     Quality Assurance will assist CLIENT and CORD will issue appropriate
     guidelines and training to the Distribution department to assure compliance
     with CLIENT specifications.
4.8  CLIENT and CORD will mutually determine and agree on special shipping
     conditions, such as for refrigerated product, which may be limited to
     Monday through Thursday shipping, or as otherwise instructed by the Client.
4.9  CORD will provide shipment confirmation information to CLIENT through
     CORD's information system on the same business day on which the shipment
     occurs.
4.10 CORD will manage shipping supplies - including vendor selection, ordering,
     inventory record keeping, and storage. CORD will invoice CLIENT for all
     shipping materials - corrugated cartons, insulated coolers (if specified),
     address labels, inner packing - as may be required by CLIENT's packing
     specifications, per CORD's proposal.
4.11 All Products will be shipped utilizing packaging and shipping carton(s) as
     per CLIENT's packaging instructions, or as deemed appropriate by CORD in
     the absence of CLIENT specifications. Unless instructed otherwise by
     CLIENT, shipping will occur based on the shipping procedures provided by
     CLIENT.
4.12 CORD personnel will be available for emergency product shipments, via phone
     request, 24 hours per day, 365 days per year. For emergency shipments
     called in after the carrier's cutoff time (approximately 8:00 p.m. for
     overnight airfreight), CORD will ship the product the following day, except
     Sunday, unless otherwise directed by the CLIENT. CORD's fees for emergency
     shipments are set forth in the Fee Schedule, Exhibit B.

5.0  TRANSPORTATION
-------------------

5.1  CORD and CLIENT will mutually agree upon a common carrier (s) based on
     shipment size, destination, freight rates, availability of standard and
     special services, reliability of delivery, and claim history among other
     requirements.
5.2  CORD shall provide, if CLIENT agrees, carriers under contract with
     Cardinal-Allegiance for discounted rates. The CLIENT and CORD will share
     the savings according to a formula acceptable to both parties, or, if
     CLIENT so chooses and CORD agrees, CORD shall charge a freight management
     fee according to the Fee Schedule, Exhibit B.
5.3  Shipping charges, including all special charges for insurance, proof of
     delivery, hazardous materials, service upgrades, and so forth, will be
     billed directly to CORD's account with the carrier and passed through to
     CLIENT per terms of the Distribution Agreement, inclusive of CORD's
     transportation management fees as defined in the Fee Schedule, Exhibit B.
5.4  Freight terms will be F.O.B. Origin, Freight Prepaid where title passes to
     the customer when the shipment is tendered to the common carrier.
5.5  CORD, at the request of the CLIENT, will provide proof of delivery for
     specific customer shipments. Fees charged by carriers for proofs of
     delivery, if any, will be passed directly to the CLIENT.
5.6  CLIENT will approve payment of all credits to CLIENT customers for overage,
     shortage and damage claims related to transportation. CORD, if handling
     Accounts Receivable for CLIENT, will issue a credit to CLIENT's customer
     accordingly, or CORD will provide freight claim documentation to the CLIENT
     when the CLIENT is responsible for the Accounts Receivable.

                                       12
<PAGE>
6.0  CUSTOMER SERVICE
---------------------

6.1  CORD will provide a dedicated inbound phone line (or lines) for CLIENT's
     customers to phone in purchase orders, for inquiries, and for general
     information.
6.2  CORD will staff the CLIENT Customer Service inbound phone line from 7:00
     a.m.- 6:00 p.m. central standard time, Monday through Friday, except for
     the following holidays: Christmas Day, New Year's Day, Memorial Day,
     Independence Day, Labor Day, Thanksgiving Day.
6.3  CORD will be responsible for the training of the customer service
     representative and backup representative(s). CLIENT will provide company
     and product specific information for training of customer service
     representatives assigned to the CLIENT.
6.4  CORD will be responsible for initial set up and on-going maintenance of
     customer master files. The initial customer master file will be approved
     and signed by CLIENT. CLIENT may add customers by completing the customer
     profile form and forwarding to CORD for system entry.
6.5  CORD will accept customer orders by electronic data interchange (EDI),
     phone, mail or fax.
6.6  CORD will use commercially reasonable efforts to answer inbound phone calls
     within the first thirty (30) seconds, and enter orders accurately.
6.7  Orders received by phone, mail or fax that are entered and approved for
     shipment by 2:00 p.m. Central Time will be shipped the same day. Orders
     received by EDI and approved for inventory allocation by 12:00 noon will be
     shipped the same day. Orders received and processed after the cutoff times
     will be shipped the following business day.
6.8  As a backup to the customer service representatives, a voice mail system
     will be maintained to accept telephone orders and to collect messages from
     customers.
6.9  CORD's dedicated customer service line for CLIENT will incorporate
     programming to forward calls to a CLIENT designated clinical service phone
     number if calls of a clinical nature are received outside of regular
     customer service hours.

7.0  ORDER ENTRY
----------------

7.1  CLIENT will determine minimum order and order line quantity and CORD will
     enter orders accordingly.
7.2  CLIENT will instruct its customers and trading partners to place orders
     based on the CLIENT's Distribution Agreement.
7.3  CLIENT will determine when customers shall pay for premium freight, special
     handling, and emergency order processing.
7.4  CLIENT reserves the right to limit quantities, to hold or to refuse orders.
     These decisions will be executed by CORD.
7.5  CORD will use commercially reasonable effort to enter orders accurately.
     CORD measures the accuracy of orders entered and will report this attribute
     periodically according to the conditions set forth in Section 19 of the
     Operating Guidelines.

8.0  CUSTOMER CREDIT
--------------------

8.1  CLIENT will determine the customers to whom it will sell on a direct basis
     and will assign each to a customer class, sales territory, and other sort
     classifications, as applicable, based on definitions mutually acceptable to
     CLIENT and CORD.
8.2  CLIENT will establish credit limits for each customer or groups of
     customers.
8.3  CORD's system will monitor orders and outstanding account receivable
     against the customer's credit limit and hold orders where credit limits are
     exceeded.
8.4  CLIENT may elect to place a customer's account on credit hold so that all
     orders are reviewed prior to shipment.
8.5  CLIENT will review and approve all customer orders held for credit limits
     prior to shipment.

                                       13
<PAGE>
9.0  PRICING AND TERMS
----------------------

9.1  CLIENT will publish terms and conditions of sale to wholesalers and
     warehouse chains. Standard terms are 2% -30 days, net 31 days. Contracted
     customers may have non-standard terms.
9.2  CLIENT will publish list prices for wholesalers and warehouses chains and
     are subject to change from time to time at the sole discretion of CLIENT.
9.3  CLIENT will determine contract prices on a contract by contract basis.
     CLIENT will notify CORD of such price changes with seven-(7) days notice
     for update of the CORD system files. CLIENT will develop and forward
     customer notifications to CORD and CORD will provide printing and mailing
     services on behalf of CLIENT.
9.4  CORD will perform system maintenance of pricing and terms. CLIENT will
     provide to CORD in writing any changes to prices or terms. CORD will be
     responsible for updating the CORD system within 48 hours of receipt of such
     notice or as CLIENT may otherwise instruct.
9.5  CORD employees are bound by the confidentiality provisions of the Agreement
     between CORD and CLIENT and, as such, shall not disclose CLIENT sales data
     or pricing information outside the specific CORD employees who have a need
     to know of this information in the course of performing their routine job
     responsibilities.
9.6  CORD will provide the necessary reports within stipulated time frames to
     ensure CLIENT can comply with the reporting requirements of Medicaid
     (OBRA), Veterans HealthCare Act, PHS Covered Entities, and state rebate
     programs. CLIENT will define reporting requirements against which CORD will
     produce the required reports.

10.0 INVOICING
--------------

10.1 CORD Customer Service will use commercially reasonable efforts to mail
     invoices the morning following shipment of product, or transmit by
     electronic data interchange (EDI), where installed, the same day of
     shipment of product, to customer's billing address.
10.2 For any order shipped after the close of business, the invoice will be
     prepared and mailed the following business day.
10.3 CORD will make its best effort to process invoices as timely and accurately
     as possible. CORD measures invoice accuracy and processing timeliness and
     will report this attribute periodically according to the conditions set
     forth in Section 19 of the Operating Guidelines.

11.0 CHARGEBACKS
----------------

11.1 CLIENT may enter into prime vendor arrangements for select contract or
     government mandated pricing arrangements.
11.2 CLIENT will select a wholesaler with full EDI capabilities, including but
     not limited to purchase orders chargeback submission, chargeback
     reconciliation and credit, invoicing and bid award notification.
11.3 CORD, on behalf of CLIENT, will process chargebacks daily with
     reconciliation of chargeback discrepancies within 5 working days. CORD's
     chargeback SOP will define the parameters available to CORD to resolve
     discrepancies between the CLIENT's contract terms and conditions and the
     chargeback submitted by the wholesaler.
11.4 All chargebacks will be processed according to the chargeback policy for
     CLIENT.
11.5 All validated chargeback submissions will be settled via credit invoice.
     CLIENT will not make advance payments or authorize advance deductions of
     chargebacks.
11.6 Prime vendors will be instructed to report all returns from CLIENT's
     contract customers as a reverse chargeback.
11.7 CORD will make its best effort to process chargebacks as timely and
     accurately as possible. CORD measures the chargeback discrepancy rate and
     timeliness of chargebacks processed and will report this attribute
     periodically according to the conditions set forth in Section 19 of the
     Operating Guidelines.

                                       14
<PAGE>
12.0 ACCOUNTS RECEIVABLE
------------------------

12.1 CLIENT will open and maintain a bank lockbox. The bank will receive
     customer remittances invoice information on behalf of CLIENT.
12.2 The CLIENT's bank will forward information about lockbox deposits along
     with the customer's remittance information to CORD.
12.3 CORD will reconcile and apply the cash receipt to the outstanding account
     receivable within 24 hours of receipt from the bank.
12.4 To aid the cash application process, CLIENT will authorize accounts
     receivable payment terms of one day past published terms. This grace period
     will not be communicated to customers.
12.5 CORD will disallow discounts for payments received beyond the payment terms
     grace period, as indicated by the postmark. CORD will handle the amount of
     the discount as a balance due on the Accounts Receivable account.
12.6 Accounts Receivable will be monitored by CORD with appropriate collection
     actions taken as directed below:
     12.6.1 Notify by phone all customers with payments that have reached 10
            days past due.
     12.6.2 Initiate second phone call at 17 to 20 days past due.
     12.6.3 Send letter (including documentation for item) to customer at thirty
            (30) days past due.
     12.6.4 Second letter at sixty (60) days past due. Follow up with third
            phone call.
     12.6.5 Give all documentation relating to item to CLIENT so third letter
            may be sent by CLIENT at ninety (90) days past due.
     12.6.6 CORD and CLIENT will discuss strategy for items still open after the
            above actions have been taken.
     (The term "item" will include invoices, deductions taken for charge backs
     and returns, and discounts not allowed.)
12.7 CORD will maintain notes related to collection activities in an Accounts
     Receivable system file that will be accessible to CLIENT's authorized
     personnel.
12.8 CORD will use commercially reasonable efforts to process accounts
     receivable as timely and accurately as possible. CORD, at CLIENT's option,
     may measure accounts receivable and collections activity and report these
     attributes periodically according to the conditions to be defined and
     mutually agreed upon by CORD and CLIENT.

13.0 GOVERNMENT REPORTING
-------------------------

13.1 CORD personnel will provide the following Government reports to CLIENT by
     the fifth business day following the close of a business quarter.
     13.1.1  IFF Direct Sales Report
     13.1.2  IFF Indirect Sales Report
     13.1.3  AMP Report
     13.1.4  Non FAMP Report
     13.1.5  Best Price Report
     13.1.6  Most Favored Price Report
13.2 CORD will also provide supporting schedules and source documents to be used
     by CLIENT to perform verification of the Government reports.

14.0 MONTH-END CLOSE
--------------------

14.1 CORD will comply with month-end reporting requirements as specified by
     CLIENT.
14.2 CLIENT will complete its close by the 5th working day after the last day of
     the month being closed.

15.0 RETURN GOODS
-----------------

15.1 Returns will be processed according to the Return Procedures defined by
     CLIENT.
15.2 CORD will complete the processing of all returns and issue credits within 5
     business days of receipt of the return.
15.3 CORD will use commercially reasonable efforts to process return goods as
     timely and accurately as possible.

                                       15
<PAGE>
16.0 RECALL ASSISTANCE
----------------------

16.1 CLIENT is responsible for management of a recall event, including but not
     limited to preparation of the letter of notification to customers,
     coordination and reporting with FDA, tracking of recalled product by
     customer, follow up letters to customers, and final disposition of product.
16.2 CORD will provide the necessary recall reports within two hours of
     notification by CLIENT. Reports will contain, but not be limited to, the
     following information for each recalled product and lot number: all
     customer shipments by date, item number, quantity, lot number, and ship to
     address.
16.3 CORD will provide a secure area for the receipt of recalled product. CORD
     will assist CLIENT with inventory reconciliation.
16.4 CORD will provide destruction services for recalled product as may be
     required by CLIENT.

17.0 SYSTEMS
------------

17.1 CLIENT retains ownership to all data in the CORD system related to CLIENT's
     business.
17.2 CORD will maintain security of the CLIENT's data in files segregated and
     inaccessible to other CORD clients, to CORD's parent organization Cardinal
     Health, or to any other entity as determined by the CLIENT.
17.3 CORD will provide CLIENT with on-line access to sales information,
     inventory records, lot tracking, customer profiles, item maintenance,
     pricing and terms, and other business critical data as defined in CORD's
     standard reports output.
17.4 Reporting and interfaces will be defined by CLIENT and jointly agreed upon
     with CORD.
17.5 CORD will maintain all systems within the change control SOPs.
17.6 CORD's system will be accessible by CLIENT 7:30 a.m. - 7:30 p.m. Central
     Time, Monday through Friday except for routine, scheduled maintenance.
17.7 Unscheduled system downtime per calendar quarter shall not exceed 2% of the
     normally accessible access hours. CORD will immediately notify CLIENT of
     any system problem that might affect services and an estimated time for
     restoration of system access.
17.8 Full system backups will be generated on a nightly basis in conjunction
     with SOP IS-005 `Backup and Recovery'. These backup tapes will be sorted
     either off-site or in a fireproof cabinet as indicated by the SOP.

18.0 AUDITS / INVENTORIES
-------------------------

18.1 Upon not less than ten (10) days prior written notice, CLIENT personnel and
     their representatives will have access to CORD facilities for review and
     audit of CORD's facility and records to assure compliance with cGMP's,
     standard operating procedures, guidelines, and CLIENT specific agreements.
18.2 CLIENT may request one complete physical inventory of CLIENT products every
     12 months.
18.3 CORD will assist CLIENT with inspections/audits ordered by the Federal Food
     & Drug Administration or other governmental or official agencies.
18.4 CORD will notify CLIENT immediately of any inspection activity by FDA, DEA
     or other government agency, as applicable to the CLIENT or CLIENT's
     product.

19.0 QUALITY COUNCIL REPORT
---------------------------

19.1 CORD will provide CLIENT with a periodic report on measurable attributes,
     as identified in preceding sections, to be used to track and benchmark
     performance. The frequency of the report will be determined jointly by CORD
     and CLIENT.
19.2 CLIENT and CORD will agree to meet periodically to review performance and
     to develop methods, policies, practices, and procedures that may improve
     the quality and efficiency of the CORD - CLIENT relationship.
19.3 CORD will use its best efforts to meet or exceed the CLIENT's expectation
     for performance based on the measured attributes.
19.4 Measured attributes and standards:

                                       16
<PAGE>

================================================================================
          PERFORMANCE              PERFORMANCE                   REPORTING
SECTION   ATTRIBUTE                STANDARD                      FREQUENCY
========  ======================   ===========================   ===============
  1.0     Temperature excursions   [*] excursion -free           Upon occurrence
--------  ----------------------   ---------------------------   ---------------
  2.0     On-time receipts and     [*] within [*] business       Monthly
          data entry               hours for all conforming
                                   receipts
--------  ----------------------   ---------------------------   ---------------
  3.0     Cycle count accuracy     [*]                           Monthly
--------  ----------------------   ---------------------------   ---------------
  4.0     On-time shipping         [*] same day for orders       Monthly
                                   received by the standard
                                   cut-off time
--------  ----------------------   ---------------------------   ---------------
  4.0     Picking / shipping       [*]   for all orders          Monthly
          accuracy                 processed with carton
                                   markings meeting NWDA bar
                                   code standards
--------  ----------------------   ---------------------------   ---------------
  6.0     Answer inbound phone     [*] answered within           Monthly
          calls within thirty      [*] seconds
          [*] seconds
--------  ----------------------   ---------------------------   ---------------
  7.0     Order entry accuracy     [*]                           Monthly
--------  ----------------------   ---------------------------   ---------------
  10.0    Invoicing accuracy and   [*]                           Monthly
          timeliness
--------  ----------------------   ---------------------------   ---------------
  11.0    Chargeback processing    [*] processed in 2 days or    Monthly
          time                     less from receipt of
                                   chargeback from wholesaler
--------  ----------------------   ---------------------------   ---------------
  11.0    Chargeback discrepancy   [*] or less                   Monthly
          rate
--------  ----------------------   ---------------------------   ---------------
  12.0    Accounts receivable      Based on CLIENT               TBD
                                   specifications;
                                   standard TBD.
--------  ----------------------   ---------------------------   ---------------
  14.0    Return goods             [*] processed in [*]          Monthly
          processing cycle time    business days or less
--------  ----------------------   ---------------------------   ---------------
  17.0    System availability      [*]  of normal accessible     Upon occurrence
                                   hours
================================================================================

                                       17
<PAGE>
================================================================================
                                   VIVUS, INC.
                             FEE SCHEDULE EXHIBIT B
                           (effective August 1, 2002)
================================================================================

DISTRIBUTION SERVICES
  MONTHLY PER PALLET REFRIGERATED STORAGE (5)                 $             [*]
  REFRIGERATED PRODUCT PICK/PACK/STAGE - FIRST PICK (1)       $             [*]
  REFRIGERATED PRODUCT PICK/PACK/STAGE - EACH ADD'L PICK (1)  $             [*]
  PER LINE RETURN PROCESSING                                  $             [*]
  MONTHLY DISTRIBUTION SYSTEM ACCESS AND USE (2)              $             [*]
  MONTHLY ACCOUNT MANAGEMENT FEE (6)                          $             [*]
  EMERGENCY/INTERNATIONAL ORDERS                              $             [*]
  PACKING/SHIPPING SUPPLIES (3)                      Cost plus [*]% handling fee
    (INCLUDES ORDERING, RECEIVING, STORAGE)
  SHIPPING CHARGES (4)                               Published Rate minus [*]%

CUSTOMER SERVICE
  MONTHLY FIXED FEE                                           $             [*]
  PER ORDER FEE                                               $             [*]

FINANCIAL SERVICES
  MONTHLY FIXED FEE ACCOUNTS RECEIVABLE MANAGEMENT            $             [*]
  PER ORDER FEE ACCOUNTS RECEIVABLE MANAGEMENT                $             [*]
  MONTHLY FIXED FEE CHARGEBACK MANAGEMENT                     $             [*]
  PER SUBMISSION CHARGEBACK PROCESSING & GOVERNMENT REPORTING $             [*]

--------------------------------------------------------------------------------
NOTE (1):  This proposal is based on the distribution of Muse and Actis only,
           any additional products requiring distribution services will be
           quoted separately.

NOTE (2):  System access fee includes licenses for four concurrent users. Any
           additional licenses required by VIVUS will increase the monthly fee
           by $[*] per concurrent user.

NOTE (3):  Supplies include boxes, tape, labels, bubble pack, etc (approx. $[*]
           to $[*] per shipment), pallets if necessary ($[*] per pallet), and
           any other VIVUS requirements.

NOTE (4):  This is based on FedEx shipments and may change as FedEx changes its
           pricing.

NOTE (5):  The pallet fee ($[*]) is based on a three month inventory on hand.
           Pallet storage greater than three months on hand will be assessed a
           charge of twice the standard fee ($[*]) per month.

NOTE (6):  The account management fee includes the following: logistics
           management, inventory management, quality assurance (QA), regulatory,
           receiving, supply control, process set-ups, and process set-ups, and
           process scheduling.

                                       18
<PAGE>
                                                                       EXHIBIT C
                                                                       ---------

                             SYSTEM ACCESS AGREEMENT
                             -----------------------

         This System Access Agreement ("Agreement") is made as of October 1,
2002 between CORD Logistics, Inc., an Ohio corporation ("Licensor"), and, VIVUS,
Inc., a Delaware corporation ("Licensee"), who hereby agree as follows:

         1. Distribution Services Agreement. Licensor and Licensee have entered
into a Distribution Services Agreement ("Distribution Agreement") of even date
with this Agreement, the terms of which are incorporated by reference.

         2. System Access; Maintenance Obligations. Licensor hereby grants to
Licensee a nonexclusive, nontransferable limited license (the "License") to
utilize Licensor's Operating System Base Package, consisting of the computer
hardware (as set forth below), software, and other components described in the
Distribution Agreement as well as future upgrades and maintenance of the base
package (collectively, the "System"), for the information processing needs of
Licensee in connection with the Services to be provided by Licensor under the
Distribution Agreement. Licensee shall maintain during the term of this
Agreement the local area network (including without limitation centralized
server) and desktop processing requirements for the System as further described
in the Distribution Agreement or the Operating Guidelines, a copy of which are
attached to the Distribution Agreement as Exhibit A.

         During the term of this Agreement, Licensor shall employ reasonable
security measures and policies designed to safeguard the integrity,
accessibility, and confidentiality of all of Licensee's data resident on the
System and establish and maintain reasonable disaster and emergency recovery
plans designed to minimize disruption from System operation interruptions.
Licensee shall have the right to review the operation of the System from time to
time during regular business hours, upon reasonable prior notice and at a time
mutually agreeable by the parties; provided that such reviews shall be conducted
in a manner to avoid disruption of Licensor's business operations.

         3. Lease of Hardware. Licensee shall have the right to lease a router
("Hardware") from Licensor during the term of this Agreement, at no additional
cost to Licensee, other than the Fee set forth in the Distribution Agreement.
The Hardware shall be kept by Licensee (a) subject to inspection by Licensor
during regular business hours, upon reasonable prior notice and at a time
mutually agreeable by the parties; (b) at Licensee's address, as stated at the
end of this Agreement, which Hardware shall not be relocated without the prior
written consent of Licensor, which consent shall not be unreasonably withheld;
(c) free of all security interests of any kind whatsoever, liens, encumbrances
and other claims; (d) marked with Licensor's identification marks or numbers and
if requested by Licensor, conspicuously labeled "supplied by Licensor"; and (e)
maintained in good and efficient working order, condition and repair, reasonable
wear and tear accepted.

         Licensee shall use the equipment with due care to prevent injury
thereto, and to any person or property and in conformity with all applicable
laws, ordinances, rules, regulations and other requirements of any insurer or
governmental body and with all requirements of the manufacturer with respect to
use, maintenance and operation of the Hardware. Licensee shall not modify any
hardware without the prior written consent of Licensor, which may be granted or
withheld in its sole discretion. It is the intention and understanding of both
Licensor and Licensee that the Hardware shall be, and at all times remain,
separately identifiable personal property of Licensor. Licensee shall not permit
any Hardware to be installed in or used, stored or maintained with, any of
Licensee's personal property in such manner or under such circumstances that
such Hardware might be or become an accession to or confused with such other
personal property. Licensee shall not permit such Hardware to be installed in or
used, stored or maintained with, any real property in such manner or under such
circumstances that any person might acquire any rights in such Hardware
paramount to the rights of the Licensor by reason of such Hardware being deemed
to be real property or a fixture thereon.

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<PAGE>
         Licensee shall at all times during the term of this Agreement and until
the Hardware has been returned to Licensor, at its own expense, maintain
physical damage insurance in the amount of not less than the replacement value
of the Hardware. All insurance so maintained shall provide for a thirty (30) day
prior written notice to Licensor or its assignees of any cancellation or
reduction of coverages; (ii) an option in Licensor or its assignees to prevent
cancellation by payment of premiums, (iii) cover the interest of the Licensor
and (iv) provide that all insurance proceeds shall be payable to the Licensee
and Licensor, as their respective interests may appear at the time of any such
payment. Licensor shall be named as an additional insured on any public
liability insurance policy so maintained. Upon the request of Licensor, Licensee
shall furnish to Licensor satisfactory evidence of any insurance so maintained.

         4. Proprietary Rights. Licensee shall have the right to use the System
during the term of this Agreement as expressly provided in paragraphs 1 and 2 of
this Agreement, but not otherwise. Licensee shall not assign or otherwise
transfer, disclose, copy, modify, re-engineer, sell, license, disassemble, or
decompile the System or disclose or permit access to the System or related
documentation to any other person or entity. The System and all parts thereof,
in all of their tangible and intangible manifestations, all existing or new
enhancements, developments, derivative works, and other adaptions or
modifications to the System (or any part thereof), and all related proprietary
rights, are and shall remain the exclusive property of Licensor. Except for the
License and Lease, Licensee shall have no right, title, or interest in or to the
System or any part thereof. Upon termination of this Agreement, Licensee shall
promptly return to Licensor all portions of the System then in Licensee's
possession or under its control in accordance with the term set forth in Section
6 below.

         5. Warranties. Licensee acknowledges that it has had adequate
opportunity to review the System and its features and operation, and Licensee
accepts the System "AS IS" for its use as contemplated in the Distribution
Agreement. LICENSOR MAKES NO REPRESENTATIONS OR WARRANTIES, AND HEREBY EXPRESSLY
DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, RELATING
DIRECTLY OR INDIRECTLY TO THE SYSTEM OR ANY PART THEREOF, INCLUDING WITHOUT
LIMITATION ANY WARRANTIES OF QUALITY, PERFORMANCE, MERCHANTABILITY, OR FITNESS
FOR A PARTICULAR PURPOSE.

         6. Limitation On Liability. LICENSOR SHALL NOT BE LIABLE FOR ANY
CONSEQUENTIAL, INDIRECT, SPECIAL, OR OTHER SIMILAR DAMAGES ARISING DIRECTLY OR
INDIRECTLY OUT OF THE USE OR INABILITY TO USE THE SYSTEM OR ANY PART THEREOF,
EVEN IF INFORMED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER CLAIMED UNDER
CONTRACT, TORT, OR ANY OTHER LEGAL THEORY.

         IF ANY OF THE LIMITATIONS ON THE LIABILITY OF LICENSOR CONTAINED IN
THIS AGREEMENT ARE FOUND TO BE INVALID OR UNENFORCEABLE FOR ANY REASON, THEN
LICENSOR AND LICENSEE EXPRESSLY AGREE THAT THE MAXIMUM AGGREGATE LIABILITY OF
LICENSOR FOR ALL CLAIMS RELATING TO THE SYSTEM SHALL NOT EXCEED 100% OF THE
AGGREGATE BASE PACKAGE FEES PAID BY LICENSEE TO LICENSOR FOR LICENSEE'S USE OF
THE SYSTEM UNDER THE DISTRIBUTION AGREEMENT.

         7. Taxes. Licensee shall pay when due all sales, use, gross receipts,
excise, property, and other taxes (other than taxes based upon Licensor's net
income) now or hereafter imposed as a result of the transactions contemplated by
this Agreement.

         8. System Availability. The System shall be available for access
twenty-four (24) hours a day, seven (7) days a week, except for scheduled
maintenance periods.

                                       20
<PAGE>
         9. Term. The term of this Agreement shall begin upon Licensee's initial
use of the System as evidenced by the first entry of inventory into the System
(which may be a date earlier than the Commencement Date specified for the
Distribution Agreement) and shall end: (a) automatically upon the termination of
the Distribution Agreement (for any reason), or (b) on any earlier date
specified by Licensee in notice to Licensor given not less than ninety (90) days
prior to the specified termination date; provided that: (i) paragraphs 4 through
10 inclusive shall survive the termination of this Agreement, and (ii) no
termination of this Agreement shall affect any liabilities arising from, or
based upon, acts or omissions occurring prior to such termination.

         10. Expiration/Termination. Licensee shall continue to have access to
the System for a reasonable period of time (not to exceed ninety (90) days)
following termination of this Agreement solely for purposes of retrieving and
transferring to a separate system Licensee's data relating to its
pre-termination operations, and Licensor shall reasonably cooperate with
Licensee to preserve the integrity and accessibility of Licensee's data during
such period; provided that, during such period, Licensee shall continue to pay
the full Base Package and other fees payable by Licensee under the Distribution
Agreement and comply with all other requirements imposed upon Licensee under
this Agreement.

         Upon the expiration of this Agreement, Licensee shall return the
Hardware to Licensor in the same condition and configuration as received,
reasonable wear and tear accepted.

         11. Notices. Any notice or other communication required or desired to
be given to either Party under this Agreement shall be in writing and shall be
deemed given: (a) five (5) days after mailing, if deposited in the United States
mail, first-class postage prepaid, and addressed to that Party at its address
set forth at the end of this Agreement; (b) when received if delivered to
Federal Express or any other similar overnight delivery service for delivery to
that Party at that address; or (c) when sent by facsimile transmission, with
electronic confirmation, to that Party at its facsimile number set forth at the
end of this Agreement. Either Party may change its address or facsimile number
for notices under this Agreement by giving the other Party written notice of
such change.

         12. Remedies. Licensee shall indemnify Licensor and its affiliates,
directors, officers, employees, agents, and representatives against all claims,
liabilities, losses, damages, costs, and expenses (including without limitation
reasonable attorneys' fees) arising directly or indirectly out of any failure of
Licensee to perform fully all obligations and conditions to be performed by
Licensee pursuant to this Agreement. Licensee acknowledges that in the event of
any violation by it of any of the provisions of paragraph 4 (Proprietary Rights)
of this Agreement, Licensor would suffer irreparable harm and its remedies at
law would be inadequate. Accordingly, in the event of any violation or attempted
violation of any such provisions by Licensee, Licensor shall be entitled, in
addition to any other rights or remedies which may be available to Licensor, to
a temporary restraining order, temporary and/or permanent injunctions, specific
performance, and other equitable relief, without the showing of irreparable
harm, injury, damage or the inadequacy of damages, and without the necessity of
the posting of any bond.

         13. Force Majeure. Notwithstanding any other provisions of this
Agreement or the Distribution Agreement to the contrary, each Party's
obligations under this Agreement (exclusive of payment obligations) shall be
excused if and to the extent that any delay or failure to perform such
obligations is due to fire or other casualty, government restrictions, war,
riot, strikes or labor disputes, acts of God, or other causes beyond the
reasonable control of that Party; provided, however, that any party hindered by
such condition beyond its reasonable control must employ reasonable efforts to
overcome such hindrance as promptly as practicable.

         14. Successors. Licensee shall not assign or otherwise transfer this
Agreement or any of its rights or obligations under this Agreement without the
prior written consent of Licensor, which consent

                                       21
<PAGE>
shall not be unreasonably withheld. Subject to the preceding sentence, this
Agreement shall be binding upon, inure to the benefit of, and be enforceable by
and against the respective successors and assigns of each Party.

         15. Interpretation. This Agreement shall be governed by and construed
in accordance with the laws of the State of Delaware. If and to the extent that
any court of competent jurisdiction determines that it is impossible to construe
any provision of this Agreement consistently with any law or public policy and
consequently holds that provision to be invalid, such holding shall in no way
affect the validity of the other provisions of this Agreement, which shall
remain in full force and effect.

         16. Complete Agreement. This Agreement (together with the Distribution
Agreement, which is hereby incorporated herein by reference) constitutes the
entire Agreement between the Parties with respect to the subject matter of this
Agreement and supersedes all prior or contemporaneous discussions, negotiations,
representations, warranties, or agreements relating to the subject matter of
this Agreement. This Agreement may not be amended or otherwise modified except
by a written instrument signed by each Party.

IN WITNESS WHEREOF, the undersigned acknowledge and accept the terms of this
Agreement and have duly executed this Agreement.

CORD LOGISTICS, INC.                        VIVUS, INC.

By /s/ Frank C. Wegerson                    By /s/ Guy P. Marsh
   ----------------------------                ----------------------------
   Frank C. Wegerson                           V.P. U.S. Operations
   Vice President and General Manager

   15 Ingram Blvd, Suite 100                   745 Airport Road
   LaVergne, TN 37086                          Lakewood, NJ 08701

   Facsimile No.  (615) 793-4783               Facsimile No. (732) 942-4821

                                       22

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