Exhibit 10.1

WAIVER AND CONSENT

     WAIVER AND CONSENT, dated as of March 28, 2005 (this “Waiver”), with
respect to the Financing Agreement, dated as of April 23, 2004 (as amended,
restated or otherwise modified from time to time, the “Financing Agreement”), by
and among aaiPharma Inc., a Delaware corporation (the “Parent”), Applied
Analytical Industries Learning Center, Inc., a Delaware corporation (“Applied
Analytical”), AAI Technologies, Inc., a Delaware corporation (“AAI
Technologies”), AAI Properties, Inc., a North Carolina corporation (“AAI
Properties”), AAI Japan, Inc., a Delaware corporation (“AAI Japan”), Kansas City
Analytical Services, Inc., a Kansas corporation (“Analytical Services”), AAI
Development Services, Inc., a Massachusetts corporation (“AAI Development-MA”),
aaiPharma LLC, a Delaware limited liability company (“Pharma LLC”) and AAI
Development Services, Inc., a Delaware corporation (“AAI Development-DE”, and
together with the Parent, Applied Analytical, AAI Technologies, AAI Properties,
AAI Japan, Analytical Services, AAI Development-MA and Pharma LLC, each a
“Borrower” and collectively, the “Borrowers”), the financial institutions from
time to time party hereto (each a “Lender” and collectively, the “Lenders”),
Silver Point Finance, LLC, a Delaware limited liability company (“Silver
Point”), as collateral agent for the Lenders (in such capacity, and any
successor in such capacity, the “Collateral Agent”), and Bank of America, N.A.
(“Bank of America”), as administrative agent for the Lenders (in such capacity,
and any successor in such capacity, the “Administrative Agent” and together with
the Collateral Agent, each an “Agent” and collectively, the “Agents”).

     WHEREAS, the Borrowers have advised the Agents and the Lenders that they
received federal tax refunds on Thursday, March 24, 2005 in the aggregate amount
of $11,287,279.75 (the “Tax Refund”);

     WHEREAS, pursuant to Section 2.05(c) and Section 2.05(d) of the Financing
Agreement, all of the Net Cash Proceeds of the Tax Refund (subject to certain
exceptions contained in such Sections) are required to be applied to the Term
Loan;

     WHEREAS, the Agents and the Lenders may be willing to permit the Borrowers
to retain all or a portion of the Net Cash Proceeds of the Tax Refund on terms
that have not yet been agreed upon; and

     WHEREAS, until such time as an alternate application of the Net Cash
Proceeds of the Tax Refund has been agreed upon by the Borrowers, the Agents and
the Lenders, if any, the Borrowers, the Agents and the Lenders have agreed that
the Net Cash Proceeds of the Tax Refund may be held in a Collection Account
subject to the dominion and control of the Administrative Agent upon the terms
and conditions set forth herein;

     NOW, THEREFORE, the Borrowers, the Agents and the Lenders hereby agree as
follows:

     1.      Capitalized Terms. All terms which are defined in the Financing
Agreement and not otherwise defined herein are used herein as defined therein.

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     2.      Waiver and Consent.

            (a)      Pursuant to the request of the Borrowers and in accordance
with Section 12.02 of the Financing Agreement, for the period commencing on the
effective date of this Waiver and ending on the earlier to occur of
(i) March 31, 2005 and (ii) the date on which the Borrowers, the Agents and the
Lenders agree in writing upon an alternate application of the Net Cash Proceeds
of the Tax Refund (the “Waiver Period”), the Agents and the Lenders hereby agree
that the Net Cash Proceeds of the Tax Refund shall not be required to be applied
(and the Agents and the Lenders shall not apply such Net Cash Proceeds) to the
Term Loan pursuant to Section 2.05(c) and Section 2.05(d) of the Financing
Agreement; provided, that (A) the Net Cash Proceeds of the Tax Refund (x) are
held by the Borrowers in Account No. 24900272 with Banc of America Securities
LLC (the “Designated Account”), which Designated Account is subject to that
certain Collateral Account Notification and Acknowledgement Agreement, dated as
of May 21, 2004 (the “Securities Account Control Agreement”), among the Parent,
the Collateral Agent and Banc of America Securities LLC (the “Securities
Intermediary”), and (y) may not be used by the Borrowers for any purpose
whatsoever and (B) the Collateral Agent delivers to the Securities Intermediary
a “Notice of Exclusive Control” under the Securities Account Control Agreement
with respect to the amount of the Tax Refund held in the Designated Account.

            (b)      Upon the expiration of the Waiver Period, the waiver and
consent provided for herein shall immediately (without cure period) and
automatically terminate in its entirety and be of no further force or effect
and, except in the case of the expiration of the Waiver Period pursuant to
clause (a)(ii) above, all Net Cash Proceeds of the Tax Refund required to be
applied to the Term Loan pursuant to Section 2.05(c) and Section 2.05(d) of the
Financing Agreement shall be applied by the Borrowers to the Term Loan pursuant
to such Sections.

            (c)      The waiver and consent in this Section 2 shall be effective
only in this specific instance, for the specific purpose, and for the specific
period set forth herein and does not allow for any other or further departure
from the terms and conditions of the Financing Agreement or any other Loan
Document, which terms and conditions shall continue in full force and effect.

     3.      Notice of Exclusive Control. The Borrowers hereby acknowledge and
agree that, notwithstanding anything to the contrary contained in the Financing
Agreement, the Securities Account Control Agreement or any other Loan Document,
the Collateral Agent is hereby authorized by the Borrowers to deliver the
“Notice of Exclusive Control” attached hereto as Annex I to the Securities
Intermediary immediately upon the effectiveness of this Waiver.

     4.      Conditions. This Waiver shall become effective only upon receipt by
the Collateral Agent of counterparts of this Waiver, duly executed by the
Borrowers, the Agents and the Lenders.

     5.      Continued Effectiveness of the Financing Agreement.

            (a)      Ratifications. Except as otherwise expressly provided
herein, (i) the Financing Agreement and the other Loan Documents are, and shall
continue to be, in full force and effect and are hereby ratified and confirmed
in all respects, (ii) to the extent that the

 

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Financing Agreement or any other Loan Document purports to pledge to any Agent,
or to grant to any Agent a security interest in or lien on, any collateral as
security for the Obligations, such pledge or grant of a security interest or
lien is hereby ratified and confirmed in all respects, and (iii) the execution,
delivery and effectiveness of this Waiver shall not operate as an amendment of
any right, power or remedy of the Agents or the Lenders under the Financing
Agreement or any other Loan Document, nor constitute an amendment of any
provision of the Financing Agreement or any other Loan Document.

            (b)      No Waivers. Except as otherwise expressly provided herein,
this Waiver is not a waiver of, or consent to, any Default or Event of Default
now existing or hereafter arising under the Financing Agreement or any other
Loan Document and the Agents and the Lenders expressly reserve all of their
rights and remedies under the Financing Agreement and the other Loan Documents,
under applicable law or otherwise.

     6.      Miscellaneous.

            (a)      Counterparts. This Waiver may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which shall be deemed to be an original, but all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of
this Waiver by telefacsimile or electronic mail shall be equally effective as
delivery of an original executed counterpart of this Waiver.

            (b)      Headings. Section and paragraph headings herein are
included for convenience of reference only and shall not constitute a part of
this Waiver for any other purpose.

            (c)      Governing Law. This Waiver shall be governed by, and
construed in accordance with, the laws of the State of New York.

            (d)      Expenses. The Borrowers will pay on demand all reasonable
fees, costs and expenses of the Agents in connection with the preparation,
execution and delivery of this Waiver and all documents incidental hereto,
including, without limitation, the reasonable fees, disbursements and other
charges of Schulte Roth & Zabel LLP, counsel to the Collateral Agent.

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     IN WITNESS WHEREOF, the parties hereto have caused this Waiver and Consent
to be executed by their respective officers thereunto duly authorized, as of the
date first above written.

              BORROWERS:

 
  AAIPHARMA INC.               By:   /s/ Matthew E. Czajkowski

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Name: Matthew E. Czajkowski
Title: Chief Financial Officer

              APPLIED ANALYTICAL INDUSTRIES LEARNING CENTER, INC.              
By:   /s/ Albert N. Cavagnaro

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Name:
Title:

              AAI TECHNOLOGIES, INC.               By:   /s/ Albert N. Cavagnaro

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Name:
Title:

              AAI PROPERTIES, INC.               By:   /s/ Albert N. Cavagnaro

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Name:
Title:

              AAI JAPAN, INC.               By:   /s/ Albert N. Cavagnaro

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Name:
Title:

              KANSAS CITY ANALYTICAL SERVICES, INC.               By:   /s/
Albert N. Cavagnaro

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Name:
Title:

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              AAI DEVELOPMENT SERVICES, INC.               By:   /s/ Albert N.
Cavagnaro

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Name:
Title:

              AAIPHARMA LLC               By:   /s/ Albert N. Cavagnaro

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Name:
Title:

              AAI DEVELOPMENT SERVICES, INC.               By:   /s/ Albert N.
Cavagnaro

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Name:
Title:

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              COLLATERAL AGENT:
 
  SILVER POINT FINANCE, LLC,
as Collateral Agent               By:   /s/ Jeffrey A. Gelfand

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Name: Jeffrey A. Gelfand
Title: Authorized Signatory

              ADMINISTRATIVE AGENT:
 
  BANK OF AMERICA, N.A.,
as Administrative Agent               By:   /s/ Annie Cuenco

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Name: Annie Cuenco
Title: Assistant Vice President

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              LENDERS:
 
BANK OF AMERICA, N.A.,
as L/C Issuer               By:   /s/ Timothy L. Isom

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Name: Timothy L. Isom
Title: Vice President

              BANK OF AMERICA, N.A.,
as a Lender               By:   /s/ Jonathan M. Barnes

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Name: Jonathan M. Barnes
Title: Associate

              SEA PINES FUNDING LLC,
as a Lender               By:   /s/ Meredith J. Koslick

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Name: Meredith J. Koslick
Title: Assistant Vice President

              TRS THEBE LLC,
as a Lender               By:   /s/ Edward Schaffer

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Name: Edward Schaffer
Title: Vice President

              SIL LOAN FUNDING LLC,
as a Lender               By:   /s/ Jason Trala

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Name: Jason Trala
Title: Attorney-in-Fact

              SPCP GROUP LLC,
as a Lender               By:   /s/ Jeffrey A. Gelfand

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Name: Jeffrey A. Gelfand
Title: Authorized Signatory

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              SPF CDO I, LLC,
as a Lender               By:   /s/ Jeffrey A. Gelfand

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Name: Jeffrey A. Gelfand
Title: Authorized Signatory

              GOLDMAN SACHS CREDIT PARTNERS L.P.,
as a Lender               By:   /s/ Mark DeNatale

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Name: Mark DeNatale
Title: Authorized Signatory

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ANNEX I

SILVER POINT FINANCE, LLC
600 Steamboat Road
Greenwich, Connecticut 06830

NOTICE OF EXCLUSIVE CONTROL

BY FACSIMILE TRANSMISSION
((704) 335-6727) AND CERTIFIED MAIL

Banc of America Securities LLC
Mutual Fund Operations
NCI-004-03-46
200 North College Street
Charlotte, NC 28255

     
Re:
  aaiPharma Inc.
Account No. 24900272

Ladies and Gentlemen:

As referenced in the Collateral Account Notification and Acknowledgment, dated
as of May 21, 2004 (“Agreement”), among aaiPharma Inc., Silver Point Finance,
LLC, as collateral agent, and Banc of America Securities LLC, we hereby give you
notice that we are exercising exclusive control over securities account number
24900272 (the “Collateral Account”) with respect to the amount of $11,287,279.75
(the “Controlled Amount”) held in the Collateral Account. We hereby instruct you
to comply only with orders and instructions regarding the Collateral Account and
the Collateral from us to the extent of the Controlled Amount.

Capitalized terms used in this notice and not defined herein have the meanings
assigned in the Agreement.

Very truly yours,

Silver Point Finance, LLC, as collateral agent

By: ________________________

Name: ______________________

Title: _______________________

cc: aaiPharma Inc.

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