Document:

EXHIBIT 10.53
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                        MANUFACTURE AND SUPPLY AGREEMENT

         This Manufacturing and Supply Agreement ("Agreement") is entered into
as of December 22, 2003 ("Effective Date") by and between VIVUS, Inc., having a
principal place of business at 1172 Castro Street, Mountain View, California
94040, United States of America ("VIVUS"), and NeraPharm spol., s.r.o., having a
place of business at 277 11 Neratovice, Czech Republic ("NeraPharm").

WHEREAS, NeraPharm is a worldwide licensed manufacturer of prostaglandin;

         WHEREAS, VIVUS desires to acquire a certain prostaglandin produced by
NeraPharm.

         NOW, THEREFORE, in consideration of the mutual promises and covenants
herein contained, the parties hereto agree as follows:

ARTICLE 1 - DEFINITIONS
-----------------------

1.1      DMF" shall mean a drug master file, or its equivalent for the Product
         filed with a regulatory agency by or on behalf of NeraPharm which is
         adequate to comply with the applicable requirements and standards of
         such regulatory agency with respect to the Product.

1.2      "PH Eur" shall mean European Pharmacopoeia.

1.3      "FDA" shall mean the United States Food and Drug Administration.

1.4      "GMP" shall mean good manufacturing practices as defined by the FDA in
         21 CFR Part 211 and European Guidelines.

1.5      "MUSE/ ALISTA System" shall mean VIVUS' system for delivery of the
         Product to treat male and female sexual dysfunction, as modified from
         time to time during the term of this Agreement.

1.6      "Product" shall mean Alprostadil USP (Prostaglandin E1)/Ph Eur
         (Prostaglandin E1).

1.7      "Specifications" shall mean the particulars as to composition, quality
         and other characteristics for the Product as set forth in Exhibit A
         hereto, as may be amended from time to time by mutual agreement of the
         parties.

1.8      "USP" shall mean United States Pharmacopoeia.

ARTICLE 2 - SUPPLY
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2.1      Supply. NeraPharm shall supply to VIVUS quantities of the Product in
         full manufacturing lots ordered by VIVUS from time to time in
         accordance with this Agreement. Without limiting the foregoing,
         NeraPharm shall at all times maintain facilities to manufacture, with
         three (3) months prior notice, at least (*) (* - *) of Product per
         quarter. The (*) and (*) quantity is the expected yield of the
         manufactured lot that NeraPharm will validate for the production of
         Product to be supplied by NeraPharm to VIVUS under this Agreement.
         NeraPharm will use only validated lot sizes and processes for
         production of Product for supply to VIVUS. VIVUS and NeraPharm must
         mutually agree to any other batch size NeraPharm may wish to validate
         and use for Product supply under this Agreement.

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2.2      Orders. Quantities of the Product will be supplied by NeraPharm
         pursuant to purchase orders submitted by VIVUS from time to time.
         NeraPharm agrees to accept VIVUS' purchase orders for the Product,
         provided that the purchase order is in accordance with the forecast
         provided and other stipulations of this Agreement and provides for a
         lead time of not less than six (6) weeks, but not to exceed ten (10)
         weeks. NeraPharm's obligation to supply within this lead time period
         shall be limited to those quantities included in the forecast provided
         by VIVUS at least six (6) months earlier.

2.3      Obligation to Supply. Subject to the terms of this Article 2, NeraPharm
         shall accept and fill all orders placed by VIVUS for the product. Per
         Section 2.1 of this Agreement, the yield of the manufactured lot size
         that NeraPharm will validate for Product supply to VIVUS under this
         Agreement is expected to be (*) to (*). Forecasts provided by VIVUS to
         NeraPharm for Product supply will be in whole lot quantities with a
         target yield of (*) per lot. Beginning in 2005, VIVUS will provide to
         NeraPharm a binding six (6) month forecast and a non-binding twelve
         (12) month forecast starting from the end of the binding six (6) month
         period. The non-binding twelve (12) month forecast will assist
         NeraPharm in planning and capacity allocation and the binding six (6)
         month forecast will set forth quantities that VIVUS will be obligated
         to buy and NeraPharm will be obligated to supply; provided that due to
         manufacturing batch yield variances, NeraPharm shall supply quantities
         in amounts that are plus or minus (*) of the VIVUS ordered quantity in
         (*), and further provided that VIVUS may order an additional (*) per
         quarter above the binding forecast amount and up to (*) per four (4)
         quarter period. Such binding and non-binding forecasts shall be updated
         by VIVUS on February 28, May 30, August 30 and November 30 for eighteen
         (18) month periods starting from the first day of the first subsequent
         calendar quarter. The total of the quantities indicated for the first
         three months of such updated binding forecasts including the firm
         orders already placed, but not including back orders, if any, shall be
         not less than (*) per quarter less than the quantities indicated for
         the same calendar period in the binding forecast issued three (3)
         months before. VIVUS, from time to time, may need to purchase
         quantities in excess of (*) per quarter above the binding forecast or
         more than (*) per four (4) quarter period. In such case, NeraPharm will
         use its best efforts to supply VIVUS' requirements.

2.4      Form of Orders. VIVUS' orders shall be made pursuant to a written
         purchase order which is in a form mutually acceptable to the parties,
         and shall provide for shipment in accordance with reasonable delivery
         schedules as may be agreed upon from time to time by NeraPharm and
         VIVUS. NeraPharm shall use all reasonable efforts to notify VIVUS
         within five (5) days from receipt of an order of its ability to fill
         any amounts of such order in excess of the quantities that NeraPharm is
         obligated to supply. No terms contained in any purchase order, order
         acknowledgment or similar standardized form shall be construed to amend
         or modify the terms of this Agreement and in the event of any conflict,
         this Agreement shall control unless expressly agreed in writing.

2.5      Minimum Quantities. VIVUS agrees to order at least (*) batches (*) of
         Product for delivery during the calendar years 2004, 2005 and 2006.

2.6      Maximum Quantities. Notwithstanding anything herein to the contrary,
         NeraPharm shall not be obligated to supply to VIVUS more than (*)
         batches of Product in any calendar year provided that NeraPharm agrees
         to use all reasonable efforts to supply any quantities in excess of
         such amounts as VIVUS may order in accordance with Section 2.3 above.

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2.7      Price. The price to be paid by VIVUS per (*) of the Product ordered by
         VIVUS shall be based upon the quantities of the Product ordered by
         VIVUS and delivered by NeraPharm during a particular calendar year, as
         follows:

         2.7.1    The price of Product delivered for the first (*) during the
                  calendar years 2004, 2005 and 2006 shall be $ (**) per (*).

         2.7.2    The Price of Product delivered in excess of (*) kg shall be
                  mutually agreed by the parties hereto.

2.8      Packaging. Product shall be supplied to VIVUS: (a) in airtight and
         moisture-proof containers which have stability to support storage; (b)
         in standard quantities of (*), and no less than (*) and no more than
         (*); (c) in plastic packing material sufficient to prevent breakage of
         bottles while in transport; and (d) with a packaging label(s)
         displaying, in addition to the standard requirements, the tare weight,
         packaging job number, and bottle serial number per packaging job. The
         tare weight indicated shall contain the weight of the empty bottle, cap
         and cap insert, but neither of the label weights or that of external
         protective materials. A copy of a certificate of analysis for each such
         lot shall accompany such lot. A second copy of such certificate of
         analysis shall be separately sent to VIVUS.

2.9      Shipping Terms; Payment. All prices set forth in Section 2.7 above
         shall be CIP (Incoterms 2000) to an airport (in the case of shipment by
         airfreight) or to an address (in the case of shipment by courier
         service). The manner of shipment shall be designated by NeraPharm and
         the airport or address shall be designated by VIVUS. All payments
         hereunder shall be made in U.S. dollars, by direct bank transfer to an
         account designated in NeraPharm's Invoice. Payment terms shall be
         forty-five (45) days from the date of Invoice.

2.10     Taxes. VIVUS shall be responsible for the payment of any taxes, tariffs
         or duties in excess of those covered by NeraPharm pursuant to CIP
         (Incoterms 2000) related to the import of the Product into the country
         of destination.

ARTICLE 3 - QUALITY
-------------------

3.1      Quality. All Product supplied by NeraPharm shall meet (i) the current
         USP and European Pharmacopoeia requirements for the Product, (ii) the
         current VIVUS Specifications (Exhibit A), (iii) additional requirements
         that the parties may agree to from time to time to reflect to the
         manufacturing requirements of VIVUS' MUSE/ALISTA System, and (iv) the
         requirements of any health regulatory agency to which VIVUS has
         submitted, or notifies NeraPharm it will submit or sponsor the
         submission of, an application for regulatory approval. In case any
         official monograph or regulatory agency requirement conflicts with the
         current USP and European Pharmacopoeia requirements for the Product and
         NeraPharm's manufacturing and control process of Product described in
         the DMF, the parties will consult to seek a mutually acceptable
         solution. All Product supplied by NeraPharm shall be manufactured in
         accordance with current GMP manufacturing and ISO 9000 regulatory
         requirements and record keeping procedures at NeraPharm's plant located
         at 27711 Neartovice, Czech Republic (the "Facility").

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3.2      NeraPharm will manufacture (*) batches of Product, approximately (*)
         each, in a campaign starting in 2004. The first batch will be completed
         no later than March 31, 2004. The second and third batches will follow
         thereafter and will be completed no later than June 30, 2004. During
         this campaign, NeraPharm will apply change of manufacturing process
         validation to assure NeraPharm's current manufacturing process is in
         full compliance with current U.S. FDA and European regulatory cGMPs and
         with NeraPharm's U.S. and European DMFs.

3.3      NeraPharm agrees to carry out all tests and studies necessary to prove
         the equivalence of Product manufactured with NeraPharm's current
         manufacturing process using these three batches, including stability
         studies, and submit any necessary Specification or DMF changes and all
         related results as required by the regulatory authorities in a schedule
         set forth below:

         a.  To the U.S. FDA with three (3) month stability results no later
             than October 15, 2004;

         b.  To the European and other regulatory authorities no later than
             thirty (30) days after receipt of a written request from VIVUS,
             such written request to occur no earlier than September 15, 2004,
             such submission to include the latest stability results available
             at the time of submission.

3.4      NeraPharm agrees to provide VIVUS with a detailed analytical report on
         its findings on these batches of Product at the time of their
         qualification and results of its stability studies at the time such
         results are available.

3.5      VIVUS agrees to carry out all tests and studies necessary to acquire
         the approval of the U.S., EU and other regulatory authorities for its
         use of Product manufactured with the current process of NeraPharm as
         active ingredient in its finished product MUSE.

3.6      VIVUS agrees that these tests and studies shall include manufacture and
         stability studies of validation batches of MUSE using each of the first
         (*) batches of Product from NeraPharm.

3.7      VIVUS agrees to inform NeraPharm about its main findings on these
         validation batches of MUSE as well as to notify NeraPharm in a timely
         manner regarding regulatory submissions and their outcome.

3.8      Quality Control. Prior to each shipment of Product, NeraPharm shall
         perform quality control procedures to verify that the quantity or batch
         of such Product to be shipped conforms fully with the Specifications.
         Each shipment of Product shall be accompanied by a Certificate of
         Analysis describing all current requirements of the Specifications,
         results of test performed, as well as Batch Release Sheet certifying
         that the batch of Product supplied has been manufactured, controlled
         and released according to the Specifications, current DMFs and all
         relevant and current GMP requirements at the Facility stipulated under
         Section 3.1 above.

3.9      Rejection. VIVUS shall have sixty (60) days following its receipt of a
         shipment of Product to reject such Product on the grounds that all or
         part of the shipment fails to conform to the applicable Specifications
         or otherwise fails to conform to the warranties given by NeraPharm in
         Section 5.1, which rejection shall be accomplished by giving written
         notice to NeraPharm specifying the manner in which all or part of such
         shipment fails to meet the foregoing requirements. If rejection is
         based on grounds of contamination or Product not passing any physical
         test of Specification, VIVUS' rejection notice shall be accompanied by

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         satisfactory sample returned to NeraPharm to verify such
         non-conformity. If VIVUS rejects a shipment before the date on which
         payment therefore is due, it may withhold payment for such shipment or
         the rejected portion thereof. The warranties given by NeraPharm in
         Article 5 below shall survive any failure to reject by VIVUS under
         Section 3.9.

3.10     Returns and Settlement of Claims. NeraPharm shall be obliged to respond
         in writing to VIVUS accepting or refusing a rejection notice from VIVUS
         within forty-five (45) days from the date of receipt of such rejection
         notice in accordance with Section 3.9 above. In case of disagreement
         between the parties, the claim shall be submitted for tests and
         decision to an independent testing organization which meets appropriate
         GMP or consultant of recognized repute within the United States
         pharmaceutical industry mutually agreed upon by the parties (the
         "Laboratory"), the appointment of which shall not be unreasonably
         withheld or delayed by either party. The determination of such entity
         with respect to all or part of any shipment of Product shall be final
         and binding upon the parties. The fees and expenses of the Laboratory
         making such determination shall be paid by the party against which the
         determination is made (i.e., the party whose argument is rejected by
         the Laboratory). Products accepted by NeraPharm as not meeting the
         applicable requirements and Specifications or so decided by the
         Laboratory shall be returned by VIVUS to NeraPharm. NeraPharm shall use
         its best efforts to replace the quantities of Product returned by VIVUS
         within the shortest possible time, but no later than sixty (60) days
         from the return of such quantities. The replacement of returned Product
         shall have priority over the supply of Product ordered for shipment,
         not more than thirty (30) days before or any time after the return of
         the rejected quantity to NeraPharm. Without limiting the remedies of
         VIVUS, if NeraPharm fails to replace returned Product within
         one-hundred and fifty (150) days from the date Product is returned to
         NeraPharm, VIVUS shall have the right (i) to cancel such replacement
         shipment by written notice and (ii) to reclaim immediately (either
         through refund or setoff, at VIVUS' discretion) the amounts paid
         pursuant to Section 2.7 above for the Product that was returned but not
         replaced, if such payment for such Product had already been made to
         NeraPharm.

3.11     Presence At Facility. Upon reasonable notice given by VIVUS to
         NeraPharm and at reasonable frequency, VIVUS shall have the right to
         assign a reasonable number of employees or consultants of VIVUS to
         inspect and audit the Facility at which Product is manufactured in
         order to verify NeraPharm's compliance with the current GMP and other
         agreed requirements, provided, however that (a) such employees or
         consultants shall not unreasonably interfere with order activities
         being carried out of Facility, and (b) that such employees or
         consultants shall observe all rules and regulations applicable to
         visitors and to individuals employed at the Facility.

ARTICLE 4 - REGULATORY MATTERS
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4.1      Regulatory Approvals.

         4.1.1    Requirements. VIVUS and its marketing partners shall notify
                  NeraPharm in a timely fashion about their requirements for the
                  submission and maintenance of DMFs related to the manufacture
                  and control of the Product adequate to comply with applicable
                  regulatory agencies' (including without limitation the FDA's)
                  standards with respect to the Product in the United States,
                  Europe, Canada, and other countries as is or becomes necessary
                  for VIVUS and its marketing partners to import, export and
                  sell the MUSE/ALISTA System worldwide. NeraPharm will submit,
                  at NeraPharm's expense, a DMF or its equivalent in any other

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                  country imposing requirements fully identical to that of the
                  United States, Canada or the European Union within two (2)
                  months after such requirement received from VIVUS or its
                  marketing partners. In case VIVUS or its marketing partner
                  requires the submission of a DMF in a country not covered by
                  the foregoing stipulations, VIVUS will assist NeraPharm,
                  directly or through others, to obtain the full details of
                  requirements of a DMF on the manufacture and control of the
                  Product in the country concerned. NeraPharm will use its best
                  efforts to fulfill these requirements and to submit such
                  document with content and form required in the country in
                  question and at the time required by VIVUS. NeraPharm shall
                  keep VIVUS and its marketing partners, as appropriate,
                  informed about its ability or inability to submit and maintain
                  such documentation as well as the intended or possible times
                  of such submissions.

         4.1.2    DMF Submission. NeraPharm shall submit, at NeraPharm's
                  expense, DMFs in every country in English or a translation in
                  English. An English copy of the open part of each DMF, where
                  such open part exists, shall be provided to VIVUS in parallel
                  with the submission thereof to the applicable regulatory
                  agency. NeraPharm agrees to maintain all information filed
                  with the regulatory agencies current and reflective of current
                  manufacturing practices and product specifications and to
                  update this information as required. From time to time during
                  the term of this Agreement, NeraPharm shall provide letters of
                  authorization, instruments and/ or documents, and take such
                  other actions, as VIVUS may reasonably request for purposes of
                  obtaining regulatory approvals necessary for VIVUS and its
                  marketing partners to import, export and sell Product as
                  incorporated into the MUSE/ALISTA System. NeraPharm agrees to
                  notify VIVUS in a timely fashion of any significant changes,
                  deletions or modifications to any DMF or Product process or
                  specification, and not to implement any such changes that
                  would cause a delay in obtaining regulatory approvals to
                  market products incorporating the Product without prior
                  written agreement with VIVUS.

4.2      Inspections. NeraPharm shall permit regulatory agencies to conduct such
         inspections of the Facility as the regulatory agencies may request, and
         shall cooperate with the regulatory agencies with respect to such
         inspections and any related matters. NeraPharm shall give VIVUS prior
         written notice of any inspections, and shall keep VIVUS informed about
         the results and conclusions of each regulatory inspection, including
         actions taken by NeraPharm to remedy conditions cited in such
         inspections. In addition, NeraPharm shall allow VIVUS or its
         representative to assist in the preparation for and be present at such
         inspections. NeraPharm shall provide VIVUS with copies of any written
         inspection reports issued by such agencies and all correspondence
         between NeraPharm and the agency involved, including, but not limited
         to, FDA Form 483 and all correspondence relating thereto. VIVUS and its
         regulatory consultants, agents, marketing partners or other third
         parties agreed upon in advance by NeraPharm, under reasonable
         confidentiality requirements, shall have access, to quality assurance
         and current GMP audits of DMFs for the purposes of assessment of
         regulatory compliance, to the buildings, records and areas of the
         Facility involved in the manufacture, testing, storage and shipment of
         the Product.

4.3      VIVUS Cooperation. VIVUS agrees to keep NeraPharm reasonably informed
         as to the status of the development and applications for regulatory
         approvals of the MUSE/ALISTA System incorporating the Product supplied
         hereunder.

4.4      Maintenance of Approvals. Notwithstanding anything herein to the
         contrary, NeraPharm shall not undertake any modifications to Product

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         manufacturing or testing processes, specifications or filing that could
         impact VIVUS product approvals, regulatory product reviews, IND or any
         other compliance status without prior written agreement of VIVUS.
         NeraPharm shall obtain and maintain all licenses, permits and
         registrations necessary to manufacture the Product and supply it
         hereunder.

ARTICLE 5 - PRODUCT WARRANTIES

5.1      Process and Product Warranties. NeraPharm warrants and represents that:
         ------------------------------

         5.1.1    Specifications. All Product supplied to VIVUS hereunder shall
                  comply with the Specifications for the Product and shall
                  conform with the information shown on the Certificate of
                  Analysis and Batch Release Sheet provided for the particular
                  shipment according to Section 3.2 hereof;

         5.1.2    GMP. The Facility, and all Product supplied to VIVUS hereunder
                  meets (a) all United States and European regulatory
                  requirements for commercialization of the Product, including
                  without limitation maintenance of a current DMF, compliance
                  with GMP, demonstration of commercial production capability,
                  and demonstration of acceptable stability of such Product; (b)
                  all ISO 9000 regulatory requirements applicable to the
                  Product: and (c) all requirements imposed by other regulatory
                  agencies with which a DMF has been filed for the Product;

         5.1.3    USP/Ph Eur. All Product supplied to VIVUS hereunder shall meet
                  all USP and European Pharmacopoeia and other applicable
                  standards and shall be fit for human use;

         5.1.4    Compliance with FFDCA. None of the Product supplied to VIVUS
                  hereunder shall be adulterated or misbranded within the
                  meaning of the Federal Food, Drug and Cosmetics Act, 21
                  U.S.C.A. ss.301 et seq., as amended and in effect of the time
                  of shipment (the "Act"), or within the meaning of any state or
                  municipal laws applicable to the Products and containing terms
                  with substantially similar meanings as the meanings of
                  adulteration or misbranding under the Act; provided, however,
                  that this provision shall not apply to, and NeraPharm shall
                  have no responsibility for, misbranding caused directly by
                  VIVUS as a result of labels or package text specified by VIVUS
                  for the Product;

         5.1.5    Timing. All Product supplied to VIVUS hereunder shall have
                  been manufactured within twenty-two (22) weeks prior to
                  receipt by VIVUS;

         5.1.6    Notification. NeraPharm will provide written notice to VIVUS
                  of any proposed alterations to the Facility or to any Product
                  manufacturing or testing process; provided, however, that
                  under no circumstances shall any such alteration be made
                  without VIVUS' express prior written consent, or before
                  regulatory approval, if required for any suchalteration, is
                  received in each country in which Product is then being sold;
                  and

         5.1.7    No Encumbrance. Title to all Product supplied to VIVUS
                  hereunder shall pass to VIVUS as provided herein free and
                  clear of any security interest, lien, or other encumbrance.

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5.2      Disclaimer. EXCEPT AS EXPRESSLY PROVIDED IN THIS ARTICLE 5, NERAPHARM
         MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE
         PRODUCT, AND NERAPHARM HEREBY EXPRESSLY DISCLAIMS ANY AND ALL IMPLIED
         OR STATUTORY WARRANTIES, INCLUDING WITHOUT LIMITATION, WARRANTIES OF
         MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NONINFRINGEMENT.

ARTICLE 6 - TERM AND TERMINATION
--------------------------------

6.1      Term. The term of this Agreement shall commence on the Effective Date
         and continue in full force until December 31, 2006, unless terminated
         earlier in accordance with this Article 6.

6.2      Termination for Convenience. Either party hereto may terminate this
         Agreement upon ninety (90) days prior written notice to the other party
         hereto; provided, however, such termination shall not become effective
         prior to December 31, 2004.

6.3      Termination by NeraPharm. NeraPharm shall have the right to terminate
         this Agreement on thirty (30) days prior written notice to VIVUS after
         the beginning of any calendar year during the term of this Agreement
         but before February 28, of such year, if VIVUS fails to order for
         delivery the minimum purchase obligation set forth in Section 2.5
         during the previous calendar year; provided that VIVUS does not order
         sufficient quantities to cure such shortfall within the foregoing
         thirty (30)-day period.

6.4      Breach. This Agreement may be terminated by either party if the other
         party breaches any material term or condition of this Agreement and
         fails to remedy the breach within sixty (60) days after being given
         written notice thereof.

6.5      Effect of Termination. In the case of notice termination by either
         party under Section 6.3.or 6.4., the parties' obligations, including
         NeraPharm's obligation to supply Product ordered by VIVUS, and VIVUS'
         obligation to purchase Product included in any binding forecast
         pursuant to Section 2.3. shall survive. In addition, VIVUS may purchase
         and NeraPharm agrees to supply quantities of Product for which VIVUS
         has not found alternate suppliers, at NeraPharm's then current prices
         of Product.

6.6      Survival. It is understood that termination or expiration of this
         Agreement shall not relieve a party from any liability which, at the
         time of such termination or expiration, has already accrued to the
         other party. The provisions of Sections 3.9, 3.10, 6.5, 6.6 and 10.1,
         and Articles 1, 5, 7, 9, and 11 shall survive the termination of this
         Agreement for any reason. All other rights and obligations of the
         parties shall cease upon termination of this Agreement. Except as
         otherwise expressly provided in this Article 6, all other rights and
         obligations of the parties shall terminate.

ARTICLE 7 - CONFIDENTIALITY
---------------------------

7.1      Confidential Information. The parties may from time to time disclose to
         each other Confidential Information. "Confidential Information" shall
         mean any information disclosed by one party to the other party hereto
         which if disclosed in tangible form is marked "confidential" or with
         other similar designation to indicate its confidential or proprietary
         nature or if disclosed orally is indicated orally to be confidential or
         proprietary by the party disclosing such information at the time of
         such disclosure and is confirmed in writing as confidential or
         proprietary by the disclosing party within forty-five (45) days after

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         such disclosure. Notwithstanding the foregoing, Confidential
         Information shall not include any information that, in each case as
         demonstrated by written documentation: (i) was already known to the
         receiving party, other than under an obligation of confidentiality, at
         the time of disclosure, as can be shown by competent proof; (ii) was
         generally available to the public or otherwise part of the public
         domain at the time of its disclosure to the receiving party; (iii)
         became generally available to the public or otherwise part of the
         public domain after its disclosure and other than through any act or
         omission of the receiving party in breach of this Agreement; (iv) was
         subsequently lawfully disclosed to the receiving party by a person
         other than the disclosing party, as can be shown by competent proof;
         (v) was developed by the receiving party without reference to any
         Confidential Information of the disclosing party.

7.2      Confidentiality. Each party hereby agrees: (i) to hold and maintain in
         strict confidence all Confidential Information of the other party; and
         (ii) not to use or disclose any Confidential Information of the other
         party except to those employees and consultants who have a need to
         know, as otherwise permitted by this Agreement, or as may be necessary
         to exercise its rights or perform its obligations under this Agreement;
         provided that each party to whom Confidential Information is disclosed
         is bound by the same terms regarding the disclosure and use of
         Confidential Information as set forth in this Article 7. Nothing
         contained in this Article 7 shall prevent either party from disclosing
         any Confidential Information of the other party to (a) regulatory
         agencies for the purpose of obtaining approval to distribute and market
         the Product; provided, however, that all reasonable steps are taken to
         maintain the confidentiality of such Confidential Information to be
         disclosed; (b) to accountants, lawyers or other professional advisors
         or in connection with a merger, acquisition or securities offering,
         subject in each case to the recipient entering into an agreement to
         protect such Confidential Information from disclosure; or (c) is
         required by law or regulation to be disclosed; provided, however, that
         the party subject to such disclosure requirement has provided written
         notice to the other party promptly upon receiving notice of such
         requirement in order to enable the other party to seek a protective
         order or otherwise prevent disclosure of such Confidential Information.

7.3      Return of Confidential Information. Upon termination or expiration of
         this Agreement, each party shall return all Confidential Information in
         its possession that was received from the other party; provided,
         however, that the recipient may retain one copy of such Confidential
         Information for its legal files solely for the purpose of monitoring
         compliance with applicable confidentiality obligations pursuant to this
         Agreement.

ARTICLE 8 - REPRESENTATIONS AND WARRANTIES
------------------------------------------

8.1      NeraPharm. NeraPharm represents and warrants that: (i) it has full
         power to enter into this Agreement and to grant and assign to VIVUS the
         rights granted and assigned to VIVUS hereunder; (ii) it has obtained
         all necessary corporate approvals to enter into and execute the
         Agreement; (iii) it has not entered and will not enter into any
         agreements with any third party that are inconsistent with this
         agreement; (iv) NeraPharm shall fully comply with the requirements of
         any and all applicable federal, state, local and foreign laws,
         regulations, rules and orders of any governmental body having
         jurisdiction over the activities contemplated by this Agreement; and
         (v) that the provisions of this Agreement, and the rights and
         obligations of the parties hereunder, are enforceable under the laws of
         the Czech Republic.

8.2      VIVUS. VIVUS represents and warrants that: (i) it has full power to
         enter into the Agreement; (ii) it has obtained all necessary corporate

                                        9
<PAGE>
         approvals to enter into and execute this Agreement; (iii) it has not
         entered and will not enter into any agreements of any third party that
         are inconsistent with this Agreement; and (iv) VIVUS shall fully comply
         with the requirements of any and all applicable federal, state, local
         and foreign laws, regulations, rules and orders of any governmental
         body having jurisdiction over the activities contemplated by this
         Agreement.

8.3      Disclaimer. EXCEPT AS PROVIDED IN THIS ARTICLE 8 AND ARTICLE 5 ABOVE,
         NEITHER PARTY MAKES ANY WARRANTIES OR CONDITIONS (EXPRESS, IMPLIED,
         STATUTORY OR OTHERWISE) WITH RESPECT TO THE SUBJECT MATTER HEREOF.

ARTICLE 9 - INDEMNIFICATION
---------------------------

9.1      VIVUS. VIVUS shall indemnify, defend and hold harmless NeraPharm, its
         directors, officers, employees, agents, successors and assigns from and
         against any liabilities, expenses or costs (including reasonable
         attorneys' fees) arising out of any claim, complaint, suit, proceeding
         or cause of action against any of them by a third party alleging
         physical injury or death or otherwise resulting from (i) the clinical
         testing of the Product by or on behalf of VIVUS; (ii) the safety of the
         Product distributed by or on behalf VIVUS; (iii) the promotion,
         distribution, sale, handling, possession, or use of the Product by or
         on behalf of VIVUS following its or their acceptance thereof in
         accordance with Section 3.3 above; (iv) the negligent or intentionally
         wrongful acts or omissions of VIVUS; and (v) any breach by VIVUS of its
         representations and warranties under Section 8.2 above, in each case
         subject to the requirements set forth in Section 9.3 below.
         Notwithstanding the foregoing, VIVUS shall have no obligations under
         this Article 9 for any liabilities, expenses or costs arising out of or
         relating to claims covered under Section 9.2 below.

9.2      NeraPharm. NeraPharm shall indemnify, defend and hold harmless VIVUS,
         its directors, officers, employees, agents, successors and assigns from
         and against all liabilities, expenses, and costs (including reasonable
         attorneys' fees) arising out of any claim, complaint, suit, proceeding
         or cause of action against any of them by a third party alleging
         physical injury or death or otherwise resulting from (i) the negligent
         or intentionally wrongful acts or omissions of NeraPharm; (ii) any loss
         of Product for which NeraPharm bears the risk under Section 2.9; and
         (iii) any breach by NeraPharm of any of its representations and
         warranties under Section 5.1 or 8.1, in each case subject to the
         requirements set forth in Section 9.3 below.

9.3      Indemnification Procedure. Any party seeking indemnification under this
         Article 9 (the "Indemnitee") shall (i) promptly notify the indemnifying
         party (the "Indemnitor") of such claim, (ii) provide the Indemnitor
         sole control over the defense and/ or settlement thereof, and (iii) at
         the Indemnitor's request and expense, provide full information and
         reasonable assistance to Indemnitor with respect to such claims.
         Without limiting the foregoing, with respect to claims brought under
         Section 9.1 or 9.2 above, the Indemnitee, at its own expense, shall
         have the right to participate with counsel of its own choosing in the
         defense and/ or settlement of any such claim.

ARTICLE 10 - INTERNATIONAL ISSUES
---------------------------------

10.1     Language. This Agreement is in English language only, which language
         shall be controlling in all respects, and all versions hereof in any
         other language shall not be binding on the parties hereto. All
         communications and notices to be made or given pursuant to this
         Agreement shall be in the English language.

                                       10
<PAGE>
10.2     Government Approvals. NeraPharm shall:

         10.2.1   at its own expense, comply with all applicable laws, and
                  obtain all approvals and make and maintain in force all
                  filings, registrations, reports, licenses, permits and
                  authorizations required by national and local governments
                  within the Czech Republic in order for NeraPharm to perform
                  its obligations under this Agreement; and

         10.2.2   advise VIVUS of any legislation, rule, regulation or other law
                  (including but not limited to any customs, tax, trade,
                  intellectual property or tariff law) which is in effect or
                  which may come into effect in the Czech Republic after the
                  Effective Date of this Agreement and which affects the
                  transfer of Product to VIVUS under this Agreement, or which
                  has a material effect on any provision of this Agreement.

ARTICLE 11 - GENERAL
--------------------

11.1     Assignment. The parties agree that their rights and obligations under
         this Agreement may not be assigned or otherwise transferred to a third
         party without the prior written consent of the other party hereto.
         Notwithstanding the foregoing, either party may transfer or assign its
         rights and obligations under this Agreement to a successor to all or
         substantially all of its business or assets relating to this Agreement
         whether by sale, merger, operation of law or otherwise; provided that
         such assignee or transferee has agreed to be bound by the terms and
         conditions of this Agreement. Subject to the foregoing, this Agreement
         shall be binding upon and inure to the benefit of the parties hereto,
         their successors and assigns.

11.2     Governing Law. This Agreement shall be governed by, and construed and
         interpreted in accordance with, the laws of the United Kingdom without
         reference to conflict of laws principles and excluding the 1980 U. N.
         Convention on Contracts for the International Sale of Goods.

11.3     Arbitration. Any dispute or claim arising out of or in connection with
         this Agreement or the performance, breach or termination thereof, shall
         be finally settled by binding arbitration in London, England under the
         Rules of Arbitration of the International Chamber of Commerce by three
         (3) arbitrators appointed in accordance with said rules. The decision
         and/ or award rendered by the arbitrators shall be written, final and
         non-appealable and may be entered in any court of competent
         jurisdiction. The parties agree that, any provision of applicable law
         notwithstanding, they will not request, and the arbitrator shall have
         no authority to award, punitive or exemplary damages against any party.
         The costs of any arbitration, including administrative fees and fees of
         the arbitrators, shall be shared equally by the parties, unless
         otherwise determined by the arbitrators. Each party shall bear the cost
         of its own attorneys' and expert fees. The arbitral proceedings and all
         pleadings and written evidence shall be in the English language. Any
         written evidence originally in a language other than English shall be
         submitted in English translation accompanied by the original or true
         copy thereof. Notwithstanding the foregoing, either party may apply to
         any court of competent jurisdiction for injunctive relief without
         breach of this arbitration provision.

                                       11
<PAGE>
11.4     Notices. Any notice or report required or permitted to be given or made
         under this Agreement by either party shall be in writing and delivered
         to the other party at its address indicated below (or to such other
         address as a party may specify by notice hereunder by courier or by
         registered or certified airmail, postage prepaid, or by facsimile;
         provided, however, that all facsimile notices shall be promptly
         confirmed, in writing, by registered or certified airmail, postage
         prepaid. All notices shall be effective as of the date received by the
         addressee.

                                       12
<PAGE>

         If to VIVUS:               VIVUS, Inc.
                                    1172 Castro Street
                                    Mountain View, CA  94040
                                    Attn:   C. E. O. and C. F. O.

         With a copy to:            Wilson, Sonsini, Goodrich & Rosati
                                    650 Page Mill Road
                                    Palo Alto, California 94304-1050
                                    Attn:

         If to NeraPharm:           NeraPharm, spol. s.r.o.
                                    Ul. Prace 657
                                    277 11  Neratovice
                                    Czech Republic
                                    Attn:

11.5     Limitation of Liability. NEITHER PARTY SHALL BE LIABLE TO THE OTHER
         PARTY OR ANY THIRD PARTY FOR ANY SPECIAL, CONSEQUENTIAL, EXEMPLARY OR
         INCIDENTAL DAMAGES (INCLUDING LOST OR ANTICIPATED REVENUES OR PROFITS
         RELATING TO THE SAME), ARISING FROM ANY CLAIM RELATING TO THIS
         AGREEMENT, WHETHER SUCH CLAIM IS BASED ON CONTRACT, TORT (INCLUDING
         NEGLIGENCE) OR OTHERWISE, EVEN IF AN AUTHORIZED REPRESENTATIVE OF SUCH
         PARTY IS ADVISED OF THE POSSIBILITY OR LIKELIHOOD OF SAME. THESE
         LIMITATIONS SHALL APPLY NOTWITHSTANDING THE FAILURE OF THE ESSENTIAL
         PURPOSE OF ANY LIMITED REMEDY, AND THE PARTIES ACKNOWLEDGE THAT THIS
         PARAGRAPH REPRESENTS A REASONABLE ALLOCATION OF RISK.

11.6     Force Majeure. Neither party will be liable for its failure to perform
         any of its obligations hereunder during any period in which such
         performance is delayed by acts of God, fire, war, embargo, riots,
         strikes or other similar cause outside the control of such party.

11.7     Confidential Terms. Except as expressly provided herein, each party
         agrees not to disclose any terms of this Agreement to any third party
         without the consent of the other party, except as required by
         securities or other applicable laws, to prospective investors and to
         such party's accountants, attorneys and other professional advisors.

11.8     Headings. Headings included herein are for convenience only, do not
         form a part of this Agreement and shall not be used in any way to
         construe or interpret this Agreement.

11.9     Non-Waiver. Any waiver of the terms and conditions hereof must be
         explicitly in writing. The waiver by either of the parties of any
         breach of any provision hereof by the other shall not be construed to
         be a waiver of any succeeding breach of such provision or a waiver of
         the provision itself.

11.10    Severability. Should any section, or portion thereof, of this Agreement
         be held invalid by reason of any law, statute or regulation existing
         now or in the future in any jurisdiction by any court of competent
         authority or by a legally enforceable directive of any governmental
         body, such section or portion thereof shall be validly reformed so as
         to approximate the intent of the parties as nearly as possible and, if
         unreformable, shall be deemed divisible and deleted with respect to
         such jurisdiction, but the Agreement shall not otherwise be affected.

                                       13
<PAGE>
11.11    Independent Contractors. The relationship of VIVUS and NeraPharm
         established by this Agreement is that of independent contractors.
         Nothing in this Agreement shall be construed to create any other
         relationship between VIVUS and NeraPharm. Neither party shall have any
         right, power or authority to assume, create or incur any expense,
         liability or obligation, express or implied, on behalf of the other.

11.12    Trademarks. VIVUS, in its sole discretion, shall select the trademarks,
         trade names and trade dresses to be used in connection with the Product
         and all such trademarks, trade names and trade dresses shall be and
         become the exclusive property of VIVUS. NeraPharm shall use said
         trademarks, trade names and trade dresses for the sole purpose of
         manufacturing the Product for supply to VIVUS and at no time shall
         adopt any trademark, trade name or trade dress that may be confusingly
         similar therewith. NeraPharm shall acquire no rights in and to any
         trademarks, trade names and trade dresses selected by VIVUS under this
         Section 11.12.

11.13    Entire Agreement. The terms and provisions contained in the Agreement,
         including the Exhibits hereto, constitute the entire agreement between
         the parties and shall supersede all previous communications,
         representations, agreements or understandings, either oral or written,
         between the parties with respect to the subject matter thereof.
         Notwithstanding the foregoing, neither party waives any rights it may
         have under the Supply Agreement. No agreement or understanding varying
         or extending this Agreement shall be binding upon either party hereto,
         unless set forth in a writing which specifically refers to the
         Agreement signed by duly authorized officers or representatives of the
         respective parties, and the provisions hereof not specifically amended
         thereby shall remain in full force and effect.

11.14    Counterparts. This Agreement may be executed in counterparts, each of
         which shall be deemed an original, but which together shall constitute
         one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have caused their duly authorized
representatives to execute this Agreement.

VIVUS, INC.                               NERAPHARM, SPOL. S. R. O.

By:      /s/ Terry Nida                   By:      /s/ Ing Miroslav Spacek
         --------------------------                ----------------------------
Name:    Terry Nida                       Name:    Ing Miroslav Spacek
Title:   Vice President                   Title:   Managing Director and
                                                   Member of Board of Directors
Date:    01/07/04
         --------------------------       Date:    12/22/03
                                                   ----------------------------

                                       14
<PAGE>

                                    EXHIBIT A

                              SPECIFICATIONS TABLE

                                      (**)

                                       15
<PAGE>EXHIBIT 10.1
                                                                    ------------

                                     FORM OF
                  AMENDMENT #3 TO CREDIT AND SECURITY AGREEMENT

     THIS AMENDMENT #3 TO CREDIT AND SECURITY AGREEMENT (this "AMENDMENT") is
entered into by the undersigned parties as of March 26, 2004 with respect to the
Credit and Security Agreement dated as of August 16, 2002, as amended (the
"CREDIT AND SECURITY AGREEMENT"), by and among Boston Scientific Funding
Corporation, a Delaware corporation ("BORROWER"), Boston Scientific Corporation,
a Delaware corporation, as initial Servicer, Blue Ridge Asset Funding
Corporation, a Delaware corporation ("BLUE RIDGE"), Victory Receivables
Corporation, a Delaware corporation ("VICTORY"), The Bank of Tokyo-Mitsubishi
Ltd., New York Branch, individually as a Liquidity Bank and as Victory Agent and
Wachovia Bank, National Association, individually as a Liquidity Bank, as Blue
Ridge Agent and as Administrative Agent, as amended from time to time.

UNLESS DEFINED ELSEWHERE HEREIN, CAPITALIZED TERMS USED IN THIS AMENDMENT SHALL
HAVE THE MEANINGS ASSIGNED TO SUCH TERMS IN THE CREDIT AND SECURITY AGREEMENT.

                                    RECITALS

     WHEREAS, the Borrower, the initial Servicer, Victory, Blue Ridge, The Bank
of Tokyo-Mitsubishi Ltd., New York Branch, individually as a Liquidity Bank and
as Victory Agent and Wachovia Bank, National Association, individually, as a
Liquidity Bank, as Blue Ridge Agent and as Administrative Agent entered into the
Credit and Security Agreement; and

     WHEREAS, the Borrower has requested that the Agents amend the Credit and
Security Agreement.

     NOW THEREFORE, in consideration of the mutual execution hereof and other
good and valuable consideration, the parties hereto agree as follows:

     1. AMENDMENT. Section 9.1(h)(ii) is hereby amended and restated in its
entirety to read as follows:

                        (ii) the three-month rolling average Dilution Ratio
            shall exceed (A) 5.0% for any of the three-month periods ending
            March 31, April 30, or May 31, 2004, or (B) 4.4% for any other
            three-month period.

     2. CONDITIONS PRECEDENT TO EFFECTIVENESS. The effectiveness of this
Amendment is subject to the conditions precedent that the Agents shall have
received counterparts hereof duly executed by each of the parties to the Credit
and Security Agreement.

     3. SCOPE OF AMENDMENT. Except as expressly amended hereby, the Credit and
Security Agreement remains in full force and effect in accordance with its terms
and this Amendment shall not by implication or otherwise alter, modify, amend or
in any way affect any of the other terms, conditions, obligations, covenants or
agreements contained in the Credit and Security Agreement, all of which are
ratified and affirmed in all respects and shall continue in full force and
effect.

<PAGE>

     4. GOVERNING LAW. This Amendment shall be governed by and construed in
accordance with the laws of the State of New York.

     5. COUNTERPARTS. This Amendment may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed an
original, and all such counterparts shall together constitute but one and the
same instrument.

                            [SIGNATURE PAGES FOLLOW]

                                        2
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed and delivered by their duly authorized officers as of the date hereof.

                                     BOSTON SCIENTIFIC FUNDING CORPORATION

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

                                     BOSTON SCIENTIFIC CORPORATION, AS SERVICER

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

                                        3
<PAGE>

                                     BLUE RIDGE ASSET FUNDING CORPORATION

                                     BY: WACHOVIA CAPITAL MARKETS, LLC, ITS
                                         ATTORNEY-IN-FACT

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

                                     WACHOVIA BANK, NATIONAL ASSOCIATION,
                                     individually as a Liquidity Bank, as Blue
                                     Ridge Agent and as Administrative Agent

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

                                     VICTORY RECEIVABLES CORPORATION

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

                                     THE BANK OF TOKYO-MITSUBISHI LTD., NEW YORK
                                     BRANCH, as a Liquidity Bank and as Victory
                                     Agent

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

                                        4

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