Document:

<PAGE>
                                                                   EXHIBIT 10.19
                               FIRST AMENDMENT TO
                   SECOND AMENDED AND RESTATED LOAN AGREEMENT

         This First Amendment to Second Amended and Restated Loan Agreement,
dated as of December 13, 2001 (this "Agreement"), is by and among aaiPHARMA
INC., a Delaware corporation (the "Borrower"), each of the subsidiaries of the
Borrower identified on the signature pages hereto, the financial institutions
identified on the signature pages hereto and BANK OF AMERICA, N.A., as agent for
the Lenders (in such capacity, the "Agent"). Except as otherwise defined in this
Agreement, terms defined in the Existing Loan Agreement referred to below (as
amended by this Agreement) are used herein as defined therein.

                                    RECITALS:

         A.       Pursuant to that certain Second Amended and Restated Loan
Agreement dated as of August 17, 2001 (the "Existing Loan Agreement"), the
Lenders have extended a revolving credit facility to the Borrower in the
principal amount of up to $25,000,000 and have made a term loan to the Borrower
in the principal amount of $60,000,000.

         B.       The Borrower has requested that the Lenders amend the Existing
Loan Agreement to, among other things, provide an additional term loan to the
Borrower in the principal amount of $25,000,000.

         C.       The Lenders are willing to make such additional term loan
available to the Borrower under, and to make certain other modifications to, the
Existing Loan Agreement based upon and subject to the terms and conditions
specified in this Agreement.

         NOW, THEREFORE, based upon the foregoing, and for good and valuable
consideration, the sufficiency and receipt of which is hereby acknowledged, the
parties hereby agree as follows:

                                     PART I
                                   DEFINITIONS

         SUBPART 1.1. Certain Definitions. Terms defined in the introductory
paragraph and recitals of this Agreement shall have the meanings ascribed to
them therein. Unless otherwise defined herein or the context otherwise requires,
the following terms used in this Agreement have the following meanings (such
meanings to be equally applicable to the singular and plural forms thereof):

                  "Amended Loan Agreement" means the Existing Loan Agreement as
         amended hereby.

                  "Effective Date" shall have the meaning ascribed to such term
         in Subpart 3.1.

<PAGE>
                                     PART II
                      AMENDMENTS TO EXISTING LOAN AGREEMENT

         Subject to satisfaction of the conditions specified in Part III of this
Agreement, the Existing Loan Agreement is hereby amended in accordance with this
Part II. Except as so amended, the Existing Loan Agreement, the Notes and the
other Loan Documents shall continue in full force and effect.

         SUBPART 2.1. New Definitions. Section 1.1 of the Existing Loan
Agreement is amended by adding the following definitions to read as follows:

                  "Add-On Term Loan" shall have the meaning assigned to such
         term in Section 2.3(a).

                  "Add-On Term Loan Commitment" means, with respect to each
         Lender, the commitment of such Lender to make its portion of the Add-On
         Term Loan in a principal amount equal to such Lender's Add-On Term Loan
         Percentage (if any) of the Add-On Term Loan Committed Amount.

                  "Add-On Term Loan Committed Amount" shall have the meaning
         assigned to such term in Section 2.3(a).

                  "Add-On Term Loan Percentage" means, for any Lender, the
         percentage identified as its Add-On Term Loan Percentage on Schedule
         2.1(a), as such percentage may be modified in connection with any
         assignment made in accordance with the provisions of Section 11.3.

                  "BAMC Brethine Fee Letter" means that certain letter
         agreement, dated as of December 13, 2001, among BAMC, the Arranger and
         the Borrower, as amended, modified, restated or supplemented from time
         to time.

                  "Brethine Product" means the intangible assets, assumed
         customer orders and specified inventory of Novartis Pharmaceuticals
         Corporation and/or its subsidiaries associated with the following
         terbutaline sulfate products marketed and sold for use in conducting
         business in the United States and Puerto Rico under the trademark
         "Brethine(R)", in all dosage strengths: (i) Brethine(R) tablets and
         (ii) Brethine(R) intravenous ampules.

                  "Brethine Purchase Agreement" means that certain Asset
         Purchase Agreement by and among Novartis Pharmaceuticals Corporation,
         Novartis Corporation and NeoSan Pharmaceuticals Inc., dated as of
         December 13, 2001, as it may be amended on or prior to the Effective
         Date.

                  "Brethine Supplier Consent" means any and all necessary
         approvals and consents of the Food and Drug Administration and/or any
         other applicable Governmental Authority in connection with a
         supplemental New Drug Application ("sNDA") submitted by Novartis

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<PAGE>

         Pharmaceuticals Corporation and/or one of its affiliates (or NeoSan
         and/or one of its affiliates) related to Brethine(R) tablets regarding
         the use of and/or referring to Profarmaco's (or another supplier's)
         Drug Master File ("DMF") for terbutaline, the active pharmaceutical
         ingredient used for the manufacture of the Brethine Product.

                  "Brethine Transaction" means the Borrower's acquisition of the
         Brethine Product from Novartis Pharmaceuticals Corporation and/or
         Novartis Corporation and/or their subsidiaries pursuant to the Brethine
         Purchase Agreement (including all schedules and exhibits thereto and,
         if applicable, any contemplated seller financing and/or third-party
         service or supply agreement).

                  "Brethine Transaction Documents" means the Brethine Purchase
         Agreement (including all schedules and exhibits thereto and, if
         applicable, any contemplated seller financing and/or third-party
         service or supply agreement).

                  "Initial Term Loan" shall have the meaning assigned to such
         term in Section 2.3(a).

                  "Initial Term Loan Commitment" means, with respect to each
         Lender, the commitment of such Lender to make its portion of the
         Initial Term Loan in a principal amount equal to such Lender's Initial
         Term Loan Percentage (if any) of the Initial Term Loan Committed
         Amount.

                  "Initial Term Loan Committed Amount" shall have the meaning
         assigned to such term in Section 2.3(a).

                  "Initial Term Loan Percentage" means, for any Lender, the
         percentage identified as its Initial Term Loan Percentage on Schedule
         2.1(a), as such percentage may be modified in connection with any
         assignment made in accordance with the provisions of Section 11.3.

         SUBPART 2.2. Amended Definitions. The definitions for the following
terms in Section 1.1 of the Existing Loan Agreement are amended and restated in
their entirety as follows:

                  "Commitment" means (i) with respect to each Lender, the
         Revolving Commitment of such Lender, the Initial Term Loan Commitment
         of such Lender and the Add-On Term Loan Commitment of such Lender, (ii)
         with respect to the Swing Line Lender, the Swing Line Committed Amount
         and (iii) with respect to the Issuing Lender, LOC Commitments.

                  "Consolidated EBITDA" means, as of any date, for the
         applicable period ending on such date with respect to the Consolidated
         Parties on a consolidated basis, the sum of (a) Consolidated Net
         Income, plus (b) an amount which, in the determination of Consolidated
         Net Income, has been deducted for (i) Consolidated Interest Expense,
         (ii) income taxes, (iii) depreciation and amortization expense, (iv)
         any other non-cash expenses, (v) scheduled rental payments under the
         TROL, (vi) non-recurring cash charges and costs not to exceed
         $5,000,000 arising in connection with the Transaction and (vii)
         non-recurring cash charges and costs not to exceed $1,200,000 arising
         in

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<PAGE>

         connection with the Brethine Transaction, all as determined in
         accordance with GAAP minus (c) non-cash gains included in Consolidated
         Net Income minus (d) Excess Royalties; provided, however, that, with
         respect to any calculation of Consolidated EBITDA made as of March 31,
         2002 or a later date but prior to the date on which the Brethine
         Supplier Consent has been obtained (with notice thereof to the Agent),
         clauses (a) and (b) above shall exclude any such amounts to the extent
         they relate to the Brethine Product.

                  "Leverage Ratio" means, as of the end of any fiscal quarter of
         the Consolidated Parties for the four fiscal quarter period (except as
         set forth below) ending on such date with respect to the Consolidated
         Parties on a consolidated basis, the ratio of (a) Funded Indebtedness
         of the Consolidated Parties on a consolidated basis on the last day of
         such period to (b) Consolidated EBITDA for such period; provided,
         however, that (i) as of December 31, 2001, Consolidated EBITDA shall be
         determined based upon (x) Consolidated EBITDA for the one fiscal
         quarter period ending as of such date multiplied by (y) 4, (ii) as of
         March 31, 2002, Consolidated EBITDA shall be determined based upon (x)
         Consolidated EBITDA for the two fiscal quarter period ending as of such
         date multiplied by (y) 2 and (iii) as of June 30, 2002, Consolidated
         EBITDA shall be determined based upon (x) Consolidated EBITDA for the
         three fiscal quarter period ending as of such date multiplied by (y)
         4/3; provided, further, that, as of December 31, 2001, the Funded
         Indebtedness of the Consolidated Parties on a consolidated basis on
         such day shall be calculated excluding the outstanding principal amount
         of the Add-On Term Loan.

                  "Permitted Acquisition" means the Transaction, the Brethine
         Transaction and any other Acquisition by the Borrower or any Subsidiary
         of the Borrower permitted pursuant to the terms of Section 8.6(j).

         SUBPART 2.3. Deleted Definitions. The definitions of "Term Loan
Commitment", "Term Loan Committed Amount" and "Term Loan Percentage" in Section
1.1 of the Existing Loan Agreement are deleted.

         SUBPART 2.4. Term Loan. Sections 2.3(a) and 2.3(b) of the Existing Loan
Agreement are amended in their entirety to read as follows:

                  (a)      Term Loan Commitment. Subject to the terms and
         conditions hereof and in reliance upon the representations and
         warranties set forth herein each Lender severally agrees to make
         available to the Borrower (i) on the Closing Date, such Lender's
         Initial Term Loan Percentage of a term loan in Dollars (the "Initial
         Term Loan") in the aggregate principal amount of SIXTY MILLION DOLLARS
         ($60,000,000.00) (the "Initial Term Loan Committed Amount") and (ii) on
         December 13, 2001, such Lender's Add-On Term Loan Percentage of a term
         loan in Dollars (the "Add-On Term Loan") in the aggregate principal
         amount of TWENTY-FIVE MILLION DOLLARS ($25,000,000.00) (collectively,
         the Initial Term Loan and the Add-On Term Loan may be referred to
         herein as the "Term Loan"; each component thereof may be referred to
         herein as a "Term Loan"). The Term Loan may consist of Base Rate Loans
         or Eurodollar Loans, or a combination

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<PAGE>
         thereof, as the Borrower may request; provided, however, that no more
         than 6 Eurodollar Loans which are Term Loans shall be outstanding
         hereunder at any time (it being understood that, for purposes hereof,
         Eurodollar Loans with different Interest Periods shall be considered as
         separate Eurodollar Loans, even if they begin on the same date,
         although borrowings, extensions and conversions may, in accordance with
         the provisions hereof, be combined at the end of existing Interest
         Periods to constitute a new Eurodollar Loan with a single Interest
         Period). Amounts repaid on the Term Loan may not be reborrowed.

                  (b)      Borrowing Procedures. The Borrower shall submit an
         appropriate Notice of Borrowing to the Agent not later than 11:00 A.M.
         (Charlotte, North Carolina time) or such later time as the Agent and
         the Borrower shall agree on the applicable funding date set forth in
         Section 2.3(a), with respect to the portion of the Initial Term Loan or
         Add-On Term Loan, as applicable, initially consisting of a Base Rate
         Loan, or on the third Business Day prior to such applicable funding
         date, with respect to the portion of the Initial Term Loan or Add-On
         Term Loan, as applicable, initially consisting of one or more
         Eurodollar Loans. Such Notice of Borrowing shall be irrevocable and
         shall specify (i) that the funding of the Initial Term Loan or Add-On
         Term Loan, as applicable, is requested and (ii) whether the funding of
         such Term Loan shall be comprised of Base Rate Loans, Eurodollar Loans
         or a combination thereof, and if Eurodollar Loans are requested, the
         Interest Period(s) therefor. If the Borrower shall fail to deliver such
         Notice of Borrowing to the Agent by 11:00 A.M. (Charlotte, North
         Carolina time) on the third Business Day prior to the applicable
         funding date, then the full amount of the Initial Term Loan or Add-On
         Term Loan, as applicable, shall be disbursed on the applicable funding
         date as a Base Rate Loan. Each Lender shall make its Initial Term Loan
         Percentage or Add-On Term Loan Percentage, as the case may be, of the
         applicable Term Loan available to the Agent for the account of the
         Borrower at the office of the Agent specified in Schedule 2.1(a), or at
         such other office as the Agent may designate in writing, by 1:00 P.M.
         (Charlotte, North Carolina time) on the applicable funding date in
         Dollars and in funds immediately available to the Agent.

         SUBPART 2.5. Termination Term Loan Commitments. Section 3.4(b) of the
Existing Loan Agreement is amended in its entirety to read as follows:

                  (b)      Term Loan Commitments. The Initial Term Loan
         Commitment of each Lender, if any, shall automatically terminate at
         such time as such Lender shall have made available to the Borrower such
         Lender's share of the Initial Term Loan. The Add-On Term Loan
         Commitment of each Lender, if any, shall automatically terminate at
         such time as such Lender shall have made available to the Borrower such
         Lender's share of the Add-On Term Loan.

         SUBPART 2.6. Financial Condition. Section 6.1(b) of the Existing Loan
Agreement is amended in its entirety to read as follows:

                  (b)      (i) The pro forma consolidated balance sheet of the
                  Consolidated Parties delivered on the Closing Date giving
                  effect to the Acquisition in accordance with the terms of the
                  Purchase Agreement and reflecting estimated purchase
                  accounting adjustments is based upon reasonable assumptions
                  made

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<PAGE>

                  known to the Lenders and upon information not known to be
                  incorrect or misleading in any material respect.

                           (ii) The pro forma consolidated balance sheet of the
                  Consolidated Parties delivered on December 13, 2001 giving
                  effect to the Acquisition in accordance with the terms of the
                  Brethine Purchase Agreement and reflecting estimated purchase
                  accounting adjustments is based upon reasonable assumptions
                  made known to the Lenders and upon information not known to be
                  incorrect or misleading in any material respect.

         SUBPART 2.7. Power; Authorization; Enforceable Obligations. Section 6.4
of the Existing Loan Agreement is amended by inserting "or Brethine Transaction"
after the reference to "Transaction".

         SUBPART 2.8. Litigation. Section 6.9 of the Existing Loan Agreement is
amended in its entirety to read as follows:

                  6.9      LITIGATION.

                  Except as disclosed in Schedule 6.9, there does not exist (i)
         any order, decree, judgment, ruling or injunction which restrains the
         consummation of the (x) acquisition of the Acquired Product in the
         manner contemplated by the Purchase Agreement or (y) the acquisition of
         the Brethine Product in the manner contemplated by the Brethine
         Purchase Agreement or (ii) any pending or threatened action, suit or
         legal, equitable, arbitration or administrative proceeding against any
         Consolidated Party which would be reasonably expected to have a
         Material Adverse Effect.

         SUBPART 2.9. Disclosure. Section 6.21 of the Existing Loan Agreement is
amended by inserting "or Brethine Transaction Document" after the reference to
"Transaction Document".

         SUBPART 2.10. Purpose of Loans and Letters of Credit. Section 6.15 of
the Existing Loan Agreement is amended in its entirety to read as follows:

                  6.15     PURPOSE OF LOANS AND LETTERS OF CREDIT.

                  The proceeds of the Loans hereunder shall be used solely by
         the Borrower to effect the Transaction and the Brethine Transaction, to
         pay fees and expenses related to the Transaction, the Brethine
         Transaction and transactions contemplated by the Loan Documents, to
         refinance the outstanding principal amount of existing indebtedness of
         the Borrower and to provide for working capital and general corporate
         purposes of the Borrower and its Subsidiaries. The Letters of Credit
         shall be used only for or in connection with appeal bonds,
         reimbursement obligations arising in connection with surety and
         reclamation bonds, reinsurance, domestic or international trade
         transactions and obligations not otherwise aforementioned relating to
         transactions entered into by the applicable account party in the
         ordinary course of business.

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<PAGE>
         SUBPART 2.11. Monthly Financial Statements. Section 7.1(c) of the
Existing Loan Agreement is amended in its entirety to read as follows:

                  (c) Monthly Financial Statements. As soon as available, and in
         any event within 30 days after the end of each of the first two months
         of each fiscal quarter, a consolidated balance sheet and income
         statement of the Consolidated Parties as of the end of such month,
         together with related consolidated statements of stockholders' equity
         and cash flows for such month and for the portion of the fiscal year
         ending as of the end of such month, in each case setting forth in
         comparative form consolidated figures for the corresponding month of
         the preceding fiscal year and for the portion of the preceding fiscal
         year ending as of the end of such month, all such financial information
         described above to be in reasonable form and detail (and to include, in
         the case of the consolidated statements of stockholders' equity and
         cash flows, revenue and volume data for any products acquired and/or
         marketed by NeoSan by product line (to the extent available and in any
         event including profit and loss information by product line to the
         gross margin level) and reasonably acceptable to the Agent, and
         accompanied by a certificate of an Executive Officer of the Borrower to
         the effect that such monthly financial statements fairly present in all
         material respects the financial condition of the Consolidated Parties
         and have been prepared in accordance with GAAP, subject to changes
         resulting from audit and normal year-end audit adjustments.

         SUBPART 2.12. Financial Covenants. Section 7.10(e) of the Existing Loan
Agreement is amended in its entirety to read as follows:

                  (e) Minimum Consolidated EBITDA. The sum of (i) Consolidated
         EBITDA minus (ii) scheduled rental payments under the TROL for the
         period from July 1, 2001 through the end of the fiscal quarter
         indicated below shall be equal to or greater than the amounts set forth
         below:

<TABLE>
<CAPTION>
                                                             Minimum Consolidated EBITDA
                                                             ---------------------------
                                          If the Brethine Supplier Consent      If the Brethine Supplier
               Quarter Ending                   has not been obtained           Consent has been obtained
               --------------                   ---------------------           -------------------------
               <S>                       <C>                                    <C>
               September 30, 2001                  $ 2,000,000                                N/A

               December 31, 2001                   $ 7,500,000                        $ 7,500,000

               March 31, 2002                      $14,000,000                        $15,800,000

               June 30, 2002                       $20,000,000                        $23,500,000

               September 30, 2002                  $26,000,000                        $31,500,000
</TABLE>

         SUBPART 2.13. Pledged Assets. Clause (i) of the first sentence of
Section 7.12 of the Existing Loan Agreement is amended in its entirety to
read as follows:

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<PAGE>

         (i) cause all of its owned and leased real and personal Property other
         than Excluded Property to be subject at all times to first priority,
         perfected and, in the case of owned real Property, title insured Liens
         in favor of the Agent to secure the Credit Party Obligations pursuant
         to the terms and conditions of the Collateral Documents or, with
         respect to any such Property acquired subsequent to the Closing Date,
         such other additional security documents as the Agent shall reasonably
         request, subject in any case to Permitted Liens and

         SUBPART 2.14. Post-Closing Deliveries. Section 7.13(b) of the Existing
Loan Agreement is amended by adding the following parenthetical at the end of
clause (a) thereof:

         (it being understood that no estoppel letter shall be required from the
         landlord of the Shawnee, Kansas property leased by Kansas City
         Analytical Services, Inc.)

         SUBPART 2.15. Additional Post-Closing Deliveries. The following new
Sections 7.13(f) and 7.13(g) are added to the Existing Loan Agreement after
Section 7.13(e):

                  (f) On or before December 20, 2001, the Credit Parties agree
         to provide the Agent with such evidence reasonably satisfactory to the
         Agent of the assignment, registration of assignment and registration of
         name change with the United States Patent and Trademark Office of the
         trademark related to Brethine(R) as the Agent may reasonably require.

                  (g) On or before January 31, 2002, the Credit Parties agree to
         provide the Agent (i) in connection with that certain amendment dated
         as of December 13, 2001 to the Mortgage Instrument relating to the
         Mortgaged Property in North Carolina, a favorable opinion of local
         North Carolina real estate counsel, an applicable title insurance
         endorsement and any other related documentation as the Agent may
         reasonably require, (ii) a certified copy of the resolutions of the
         Board of Directors of the Borrower evidencing its ratification of the
         execution and performance of this Agreement, the Brethine Transaction
         and the other agreements executed in connection herewith and therewith
         and its ratification of the other matters contemplated hereby and
         thereby and (iii) such information and documentation as the Agent may
         reasonably request with respect to perfection on the Agent's Lien on
         the Brethine(R) trademark in Puerto Rico.

         SUBPART 2.16. Investments. The lead-in to Section 8.6(j) of the
Existing Loan Agreement is amended in its entirety to read as follows:

         Investments consisting of (x) the Transaction, (y) the Brethine
         Transaction or (z) any other Acquisition by the Borrower or any
         Subsidiary of the Borrower, provided that, with respect to any such
         other Acquisition:

         SUBPART 2.17. Extension Option. Section 12.2 of the Existing Loan
Agreement is amended in its entirety to read as follows:

                  12.2 EXTENSION OPTION.

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<PAGE>

                  If, on or after the date that is six months from the Closing
         Date and prior to September 30, 2002, (i) the Senior Leverage Ratio is
         less than or equal to 2.50 to 1.0 (specifically including any unfunded
         commitments under this Loan Agreement in the calculation of clause (a)
         of such ratio but excluding the principal balance outstanding under the
         TROL) as a result of the issuance of Mezzanine Securities as provided
         in Section 12.1 or otherwise as evidenced by the officer's certificate
         most recently delivered pursuant to Section 7.1(d), (ii) the Leverage
         Ratio is less than or equal to 3.50 to 1.0 (specifically including any
         unfunded commitments under this Loan Agreement in the calculation of
         clause (a) of such ratio but excluding the principal balance
         outstanding under the TROL) as evidenced by the officer's certificate
         most recently delivered pursuant to Section 7.1(d), (iii) each of the
         conditions precedent set forth in Section 5.2 is then satisfied (or
         waived by all of the Lenders, as applicable), (iv) the Borrower and the
         Lenders have agreed on or prior to September 30, 2002 on the new
         financial covenants, pricing levels and other items described in
         Section 12.3 below to be negotiated in connection with the Extension
         Option, and (v) the Brethine Supplier Consent shall have been obtained,
         then the Borrowers may exercise the Extension Option, by notice to the
         Agent and the Lenders, to (i) extend the Maturity Date to December 31,
         2006, with the Term Loan being subject to scheduled amortization as set
         forth in Section 12.3, and (ii) otherwise modify the terms of this Loan
         Agreement as set forth in Section 12.3. In connection with the exercise
         of the Extension Option, the Borrower shall deliver a certificate
         substantially in the form of Exhibit 7.1(d) demonstrating compliance
         with the provisions of this Section 12.2.

         SUBPART 2.18. Amendments to Schedules. The following schedules to the
Existing Loan Agreement are deleted in their entirety and replaced with the
corresponding substitute schedules attached to this Agreement:

         Schedule 1.1     Excluded Property
         Schedule 2.1(a)  Lenders
         Schedule 6.4     Required Consents, Authorizations, Notices and Filings
         Schedule 6.5     No Conflict
         Schedule 6.7     Ownership of Properties
         Schedule 6.9     Litigation
         Schedule 6.17    Intellectual Property
         Schedule 6.27    Affiliate Transactions
         Schedule 7.6     Insurance
         Schedule 8.9     Transactions with Affiliates

                                    PART III
                           CONDITIONS TO EFFECTIVENESS

         SUBPART 3.1. Effective Date. This Agreement shall be and become
effective as of the date hereof (the "Effective Date") when all of the
conditions set forth in this Subpart 3.1 shall have been satisfied.

                                       9
<PAGE>

                  3.1.1. Execution of Agreement. The Agent shall have received
         original duly executed counterparts of (i) this Agreement from the
         Borrowers, the Guarantors and the Lenders, (ii) the BAMC Brethine Fee
         Letter from the Borrower, the Arranger and BAMC, and (iii) an amendment
         to the Mortgage Instrument relating to the Mortgaged Property in North
         Carolina in form and substance satisfactory to the Agent and its
         counsel from the parties thereto.

                  3.1.2. Resolutions. The Agent shall have received a certified
         copy of the resolutions of the Board of Directors of the Borrower and
         each other Credit Party evidencing its approval of this Agreement, the
         Brethine Transaction (to the extent applicable for the relevant Credit
         Party) and the other matters contemplated hereby.

                  3.1.3. Other Corporate Documents. The Agent shall have
         received all documents it may reasonably request relating to the
         existence and good standing of the Credit Parties and to the
         authorization, execution and delivery of this Agreement and the other
         Loan Documents and other matters relevant hereto, including current
         incumbency information for the officers of the Credit Parties, all in
         form and substance satisfactory to the Agent and its counsel in their
         reasonable discretion.

                  3.1.4. Legal Opinions. The Agent shall have received, in each
         case dated as of the Effective Date and in form and substance
         reasonably satisfactory to the Agent, (i) a legal opinion of Robinson
         Bradshaw & Hinson, outside counsel for the Credit Parties and (ii) a
         legal opinion of in-house counsel for the Credit Parties with respect
         to various corporate and organizational matters for each Credit Party.

                  3.1.5. Additional Collateral. The Agent shall have received
         from NeoSan a duly executed Notice of Security Interests in Trademarks
         relating to the trademark Brethine(R).

                  3.1.6. Consents. The Agent shall have received evidence that
         all governmental, shareholder and material third party consents
         (including any necessary Hart-Scott-Rodino clearance) and approvals
         necessary or desirable in connection with the Brethine Transaction
         (other than the Brethine Supplier Consent) have been obtained and that
         there has occurred the expiration of all applicable waiting periods
         without any action being taken by any authority that could restrain,
         prevent or impose any material adverse conditions on the Brethine
         Transaction or that could seek or threaten any of the foregoing, and no
         law or regulation shall be applicable which in the judgment of the
         Agent could have such effect.

                  3.1.7. Consummation of Brethine Transaction. The Agent's
         satisfactory review of the Brethine Purchase Agreement (including all
         schedules and exhibits thereto and, if applicable, any contemplated
         seller financing and/or third-party service or supply agreement)
         (collectively, the "Brethine Transaction Documents") regarding the
         acquisition of substantially all of the Brethine Product which shall
         provide for an aggregate purchase price not in excess of $26.6 million,
         payable at the closing of the acquisition of the Brethine Product. The
         Brethine Transaction shall have been consummated in accordance with the
         terms of the Brethine Transaction Documents and in material compliance
         with applicable law and regulatory approvals, all material conditions

                                       10
<PAGE>

         precedent to the obligations of the buyer under the Brethine Purchase
         Agreement shall have been satisfied and the Agent shall be satisfied
         that after giving effect to the Brethine Transaction, including the
         application on the Effective Date of the proceeds of the related
         financings, the Consolidated Parties shall have no Indebtedness except
         for Indebtedness permitted under Section 8.1 of the Existing Loan
         Agreement. The Brethine Transaction Documents shall not have been
         altered, amended or otherwise changed or supplemented in any material
         respect or any material condition therein waived, without the prior
         written consent of the Agent.

                  3.1.8. Officer's Certificates. The Agent shall have received a
         certificate or certificates executed by an Executive Officer of the
         Borrower as of the Effective Date, in form and substance satisfactory
         to the Agent, stating that (A) each Credit Party is in compliance with
         all existing material financial obligations, (B) all material
         governmental, shareholder and third party consents and approvals, if
         any, with respect to the Loan Documents and the transactions
         contemplated thereby have been obtained, (C) no action, suit,
         investigation or proceeding is pending or threatened in any court or
         before any arbitrator or governmental instrumentality that purports to
         affect any Credit Party or any transaction contemplated by the Loan
         Documents, if such action, suit, investigation or proceeding would
         reasonably be expected to have a Material Adverse Effect, (D) the
         transactions contemplated by the Brethine Purchase Agreement have been
         consummated contemporaneously with funding of the Add-On Term Loan
         hereunder in accordance with the terms thereof, (E) immediately after
         giving effect to the Brethine Transaction, (1) no Default or Event of
         Default exists and (2) all representations and warranties contained
         herein, in the Amended Loan Agreement and in the other Loan Documents
         are true and correct in all material respects and (F) all financial
         projections concerning the Borrower and its Subsidiaries and the
         Brethine Transaction that have been or are hereafter made available to
         the Agent or the Lenders by the Borrower or any of the Borrower's
         authorized representatives have been or will be prepared in good faith
         based upon assumptions the Borrower believes to be reasonable.

                  3.1.9. Solvency. The Agent shall have received a certificate
         executed by an Executive Officer of the Borrower as of the Effective
         Date, in form and substance satisfactory to the Agent, regarding the
         Solvency of each of the Credit Parties on a consolidated basis.

                  3.1.10. Fees and Expenses, Etc. (a) Payment by the Credit
         Parties to the Arranger, BAMC and the Agent of all fees and expenses
         relating to the Add-On Term Loan which are due and payable on the
         Effective Date, including, without limitation, payment of the fees set
         forth in the BAMC Brethine Fee Letter and (b) satisfaction of all
         conditions set forth in the BAMC Brethine Fee Letter.

                  3.1.11 Additional Financial Information. The Agent shall have
         received and, in each case been satisfied with, a closing balance sheet
         giving effect to the Brethine Transaction and the transactions
         contemplated hereby and reflecting estimated purchase price accounting
         adjustments, all meeting the requirements of Regulation S X under the

                                       11
<PAGE>

         Securities Act of 1933, as amended, applicable to a Registration
         Statement under such act on Form S 1.

                  3.1.12. Litigation, Etc. There shall not exist (a) any order,
         decree, judgment, ruling or injunction which restrains the consummation
         of the Brethine Transaction in the manner contemplated by the Brethine
         Transaction Documents, and (b) any pending or threatened action, suit,
         investigation or proceeding, which, if adversely determined, could
         materially and adversely affect the Borrower or its subsidiaries, any
         transaction contemplated hereby or the ability of the Borrower and its
         subsidiaries or any other Guarantor to perform its obligations under
         the Amended Loan Agreement or the other Loan Documents or the ability
         of the Lenders to exercise their rights thereunder.

                  3.1.13. No Material Adverse Change. There shall not have
         occurred a material adverse change since December 31, 2000 in the
         business, assets, liabilities (actual or contingent), operations,
         condition (financial or otherwise) or prospects of the Borrower or the
         Brethine Product (other than the release of generic competition for
         Brethine(R) tablets, which fact has previously been disclosed to the
         Agent), in the case of the Borrower together with its subsidiaries
         taken as a whole, or in the facts and information regarding such
         entities and assets as represented to date.

                  3.1.14. Other. Receipt by the Lenders of such other documents,
         instruments, agreements or information as reasonably requested by any
         Lender, including, but not limited to, information regarding
         litigation, tax, accounting, labor, insurance, pension liabilities
         (actual or contingent), real estate leases, material contracts, debt
         agreements, property ownership and contingent liabilities of the
         Consolidated Parties.

                                     PART IV
                                  MISCELLANEOUS

         SUBPART 4.1. Cross-References. References in this Agreement to any Part
or Subpart are, unless otherwise specified, to such Part or Subpart of this
Agreement.

         SUBPART 4.2. Instrument Pursuant to Existing Loan Agreement. This
Agreement is a document executed pursuant to the Existing Loan Agreement and
shall (unless otherwise expressly indicated therein) be construed, administered
and applied in accordance with the terms and provisions of the Existing Loan
Agreement.

         SUBPART 4.3. Loan Documents. Each Credit Party hereby confirms and
agrees that the Loan Documents are, and shall continue to be, in full force and
effect, except as amended hereby, and except that, on and after the Effective
Date references in each Loan Document to the "Loan Agreement", "thereunder",
"thereof" or words of like import referring to the Existing Loan Agreement shall
mean the Amended Loan Agreement.

         SUBPART 4.4. Representations and Warranties. Each Credit Party hereby
represents and warrants that (i) it has the requisite corporate power and
authority to execute, deliver

                                       12
<PAGE>

and perform this Agreement, (ii) it is duly authorized to, and has been
authorized by all necessary corporate action, to execute, deliver and perform
this Agreement, (iii) this Agreement has been duly executed and delivered by
such Credit Party and constitutes such Credit Party's legal, valid and binding
obligation, enforceable in accordance with its terms, except as such
enforceability may be limited (x) by general principles of equity and conflicts
of laws or (y) by bankruptcy, reorganization, insolvency, moratorium or other
laws of general application relating to or affecting the enforcement, of
creditors' rights, (iv) it has no claims, counterclaims, offsets, or defenses to
the Loan Documents and the performance of its obligations thereunder, or if such
Credit Party has any such claims, counterclaims, offsets, or defenses to the
Loan Documents or any transaction related to the Loan Documents, the same are
hereby waived, relinquished and released in consideration of the Agent's
execution and delivery of this Agreement, (v) the representations and warranties
contained in the Loan Documents are, subject to the limitations set forth
therein, true and correct in all material respects on and as of the date hereof
as though made on and as of such date (except for those which expressly relate
to an earlier date), (vi) no event of default under any other agreement,
document or instrument to which such Credit Party is a party will occur as a
result of the transactions contemplated hereby, (vii) as of the date of this
Agreement, no Default or Event of Default exists, (viii) no consent, approval,
authorization or order of, or filing, registration or qualification with, any
court or governmental authority or third party is required in connection with
the execution, delivery or performance by such Credit Party of this Agreement,
(ix) the execution and delivery of this Agreement does not diminish or reduce
its obligations under the Loan Documents (including, without limitation, in the
case of each Guarantor, such Guarantor's guaranty pursuant to Section 4 of the
Amended Loan Agreement) in any manner, except as may be specifically set forth
herein.

         SUBPART 4.5. Liens. Each Credit Party affirms the Liens and security
interests created and granted by it in the Loan Documents (including, but not
limited to, the Pledge Agreement and the Security Agreement) and agrees that
this Agreement shall in no manner adversely affect or impair such Liens and
security interests.

         SUBPART 4.6. Costs and Expenses. The Borrower hereby agrees to pay on
demand all costs and expenses (including without limitation the reasonable fees
and expenses of counsel to the Agent) incurred by the Agent in connection with
the negotiation, preparation, execution, and delivery of this Agreement and the
enforcement or preservation of any rights and remedies of the Agent hereunder
(including without limitation any such fees and expenses subsequently incurred
by the Agent in any subsequent bankruptcy or insolvency proceeding involving a
Credit Party).

         SUBPART 4.7. Counterparts, Effectiveness, Telecopy, Etc. This Agreement
may be executed by the parties hereto in several counterparts, each of which
shall be deemed to be an original and all of which shall constitute together but
one and the same agreement. Delivery of executed counterparts by telecopy shall
be effective as an original and shall constitute a representation that an
original will be delivered.

         SUBPART 4.8. Captions. The captions in this Agreement are inserted only
as a matter of convenience and for reference and in no way define, limit or
describe the scope of this Agreement or any provision hereof.

                                       13
<PAGE>

         SUBPART 4.9. Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK
WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

         SUBPART 4.10. Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

                            (signature pages follow)

                                       14
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective duly authorized officers as of the day and year
first above written.

BORROWER:                                   AAIPHARMA INC.,
                                            a Delaware corporation

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

GUARANTORS:                                 APPLIED ANALYTICAL INDUSTRIES
                                                     LEARNING CENTER, INC.
                                            AAI TECHNOLOGIES, INC.
                                            AAI INTERNATIONAL, INC.
                                            AAI PROPERTIES, INC.
                                            KANSAS CITY ANALYTICAL
                                                     SERVICES, INC.
                                            MEDICAL & TECHNICAL RESEARCH
                                                     ASSOCIATES, INC.
                                            AAI JAPAN, INC.
                                            NEOSAN PHARMACEUTICALS, INC.

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

                                      Second Amended and Restated Loan Agreement
                                                     in favor of aaiPharma, Inc.
<PAGE>
AGENT:                                      BANK OF AMERICA, N.A.

                                            Individually in its capacity as a
                                            Lender and in its capacity as Agent

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

LENDERS:                                    BANC OF AMERICA

                                            MEZZANINE CAPITAL LLC

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

                                            FIRST UNION NATIONAL BANK

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

                                      Second Amended and Restated Loan Agreement
                                                     in favor of aaiPharma, Inc.<PAGE>
                                                                   EXHIBIT 10.20
                               SECOND AMENDMENT TO
                   SECOND AMENDED AND RESTATED LOAN AGREEMENT

         This Second Amendment to Second Amended and Restated Loan Agreement,
dated as of February 25, 2002 (this "Agreement"), is by and among aaiPHARMA
INC., a Delaware corporation (the "Borrower"), each of the subsidiaries of the
Borrower identified on the signature pages hereto, the financial institutions
identified on the signature pages hereto and BANK OF AMERICA, N.A., as agent for
the Lenders (in such capacity, the "Agent"). Except as otherwise defined in this
Agreement, terms defined in the Existing Loan Agreement referred to below (as
amended by this Agreement) are used herein as defined therein.

                                    RECITALS:

         A. Pursuant to that certain Second Amended and Restated Loan Agreement
dated as of August 17, 2001, as amended by that certain First Amendment to
Second Amended and Restated Loan Agreement dated as of December 13, 2001 (the
"Existing Loan Agreement"), the Lenders have extended a revolving credit
facility to the Borrower in the principal amount of up to $25,000,000 and have
made term loans to the Borrower in the aggregate principal amount of
$85,000,000.

         B. The Borrower has requested that the Lenders amend the Existing Loan
Agreement to, among other things, extend the Maturity Date.

         C. The Lenders are willing to extend the Maturity Date and to make
certain other modifications to the Existing Loan Agreement based upon and
subject to the terms and conditions specified in this Agreement.

         NOW, THEREFORE, based upon the foregoing, and for good and valuable
consideration, the sufficiency and receipt of which is hereby acknowledged, the
parties hereby agree as follows:

                                     PART I
                                   DEFINITIONS

         SUBPART 1.1. Certain Definitions. Terms defined in the introductory
paragraph and recitals of this Agreement shall have the meanings ascribed to
them therein. Unless otherwise defined herein or the context otherwise requires,
the following terms used in this Agreement have the following meanings (such
meanings to be equally applicable to the singular and plural forms thereof):

                  "Amended Loan Agreement" means the Existing Loan Agreement as
         amended hereby.

                  "Effective Date" shall have the meaning ascribed to such term
         in Subpart 3.1.

<PAGE>
                                     PART II
                      AMENDMENTS TO EXISTING LOAN AGREEMENT

         Subject to satisfaction of the conditions specified in Part III of this
Agreement, the Existing Loan Agreement is hereby amended in accordance with this
Part II. Except as so amended, the Existing Loan Agreement, the Notes and the
other Loan Documents shall continue in full force and effect.

         SUBPART 2.1.   Amended Definitions. The definition for the following
term in Section 1.1 of the Existing Loan Agreement is amended and restated in
its entirety as follows:

                  "Maturity Date" means, subject to Section 12.3, January 15,
2003.

         SUBPART 2.2.   Fees. A new Section 3.5(d) is hereby added to the
Existing Loan Agreement to read as follows:

                  (d) Additional Fees. Unless the Extension Option has been
exercised pursuant to Section 12.2 hereof, (i) on September 30, 2002, the
Borrower promises to pay to the Agent for the pro rata account of each Lender an
aggregate fee of 1.00% on the sum of the outstanding Term Loans as of such date
plus the Revolving Committed Amount as of such date (excluding any portion of
the Term Loan paid down on such date and any portion of the Revolving Committed
Amount terminated on such date) and (ii) on December 31, 2002, the Borrower
promises to pay to the Agent for the pro rata account of each Lender an
aggregate fee of 1.00% on the sum of the outstanding Term Loans as of such date
plus the Revolving Committed Amount as of such date (excluding any portion of
the Term Loan paid down on such date and any portion of the Revolving Committed
Amount terminated on such date).

         SUBPART 2.3. Financial Covenants. Section 7.10(e) of the Existing Loan
Agreement is amended in its entirety to read as follows:

                  (e) Minimum Consolidated EBITDA. The sum of (i) Consolidated
         EBITDA minus (ii) scheduled rental payments under the TROL for the
         period from July 1, 2001 through the end of the fiscal quarter
         indicated below shall be equal to or greater than the amounts set forth
         below:

                                       2
<PAGE>

<TABLE>
<CAPTION>
                                                             Minimum Consolidated EBITDA
                                                             ---------------------------
                                          If the Brethine Supplier Consent      If the Brethine Supplier
               Quarter Ending                   has not been obtained           Consent has been obtained
               --------------                   ---------------------           -------------------------
               <S>                        <C>                                   <C>
               September 30, 2001                  $ 2,000,000                                N/A

               December 31, 2001                   $ 7,500,000                        $ 7,500,000

               March 31, 2002                      $14,000,000                        $15,800,000

               June 30, 2002                       $20,000,000                        $23,500,000

               September 30, 2002                  $26,000,000                        $31,500,000

               December 31, 2002                   $33,000,000                        $42,000,000
</TABLE>

         SUBPART 2.4. Amendments to Schedules. The following schedules to the
Existing Loan Agreement are deleted in their entirety and replaced with the
corresponding substitute schedules attached to this Agreement:

         Schedule 6.17              Intellectual Property
         Schedule 6.27              Affiliate Transactions

                                    PART III
                           CONDITIONS TO EFFECTIVENESS

         SUBPART 3.1. Effective Date. This Agreement shall be and become
effective as of the date hereof (the "Effective Date") when all of the
conditions set forth in this Subpart 3.1 shall have been satisfied.

                  3.1.1. Execution of Agreement. The Agent shall have received
         original duly executed counterparts of this Agreement from the
         Borrowers, the Guarantors and the Lenders.

                  3.1.2. Resolutions. The Agent shall have received a certified
         copy of the resolutions of the Board of Directors of the Borrower and
         each other Credit Party evidencing its approval of this Agreement.

                  3.1.3. Other Corporate Documents. The Agent shall have
         received all documents it may reasonably request relating to the
         existence and good standing of the Credit Parties and to the
         authorization, execution and delivery of this Agreement and the other
         Loan Documents and other matters relevant hereto, including current
         incumbency information for the officers of the Credit Parties, all in
         form and substance satisfactory to the Agent and its counsel in their
         reasonable discretion.

                                       3
<PAGE>

                  3.1.4. Legal Opinions. The Agent shall have received
         assurances that it will receive on the Effective Date or as soon as
         practicable thereafter, in form and substance reasonably satisfactory
         to the Agent, (i) a legal opinion of Robinson Bradshaw & Hinson,
         outside counsel for the Credit Parties and (ii) a legal opinion of
         in-house counsel for the Credit Parties with respect to various
         corporate and organizational matters for each Credit Party.

                  3.1.5. Officer's Certificates. The Agent shall have received a
         certificate or certificates executed by an Executive Officer of the
         Borrower as of the Effective Date, in form and substance satisfactory
         to the Agent, stating that (A) each Credit Party is in compliance with
         all existing material financial obligations, (B) all material
         governmental, shareholder and third party consents and approvals, if
         any, with respect to the Loan Documents and the transactions
         contemplated thereby have been obtained, (C) no action, suit,
         investigation or proceeding is pending or threatened in any court or
         before any arbitrator or governmental instrumentality that purports to
         affect any Credit Party or any transaction contemplated by the Loan
         Documents, if such action, suit, investigation or proceeding would
         reasonably be expected to have a Material Adverse Effect, (D) no
         Default or Event of Default exists and all representations and
         warranties contained herein, in the Amended Loan Agreement and in the
         other Loan Documents are true and correct in all material respects and
         (E) all financial projections concerning the Borrower and its
         Subsidiaries that have been or are hereafter made available to the
         Agent or the Lenders by the Borrower or any of the Borrower's
         authorized representatives have been or will be prepared in good faith
         based upon assumptions the Borrower believes to be reasonable.

                  3.1.6. Solvency. The Agent shall have received a certificate
         executed by an Executive Officer of the Borrower as of the Effective
         Date, in form and substance satisfactory to the Agent, regarding the
         Solvency of each of the Credit Parties on a consolidated basis.

                  3.1.7. Fees and Expenses, Etc. Payment by the Credit Parties
         to the Arranger, BAMC and the Agent of all fees and expenses which are
         due and payable on the Effective Date, if any.

                  3.1.8. Litigation, Etc. There shall not exist any pending or
         threatened action, suit, investigation or proceeding, which, if
         adversely determined, could materially and adversely affect the
         Borrower or its subsidiaries, any transaction contemplated hereby or
         the ability of the Borrower and its subsidiaries or any other Guarantor
         to perform its obligations under the Amended Loan Agreement or the
         other Loan Documents or the ability of the Lenders to exercise their
         rights thereunder.

                  3.1.9. No Material Adverse Change. There shall not have
         occurred a material adverse change since December 31, 2000 in the
         business, assets, liabilities (actual or contingent), operations,
         condition (financial or otherwise) or prospects of the Borrower, in the
         case of the Borrower together with its subsidiaries taken as a whole,
         or in the facts and information regarding such entities and assets as
         represented to date.

                                       4
<PAGE>

                  3.1.10. Other. Receipt by the Lenders of such other documents,
         instruments, agreements or information as reasonably requested by any
         Lender, including, but not limited to, information regarding
         litigation, tax, accounting, labor, insurance, pension liabilities
         (actual or contingent), real estate leases, material contracts, debt
         agreements, property ownership and contingent liabilities of the
         Consolidated Parties.

                                     PART IV
                                  MISCELLANEOUS

         SUBPART 4.1. Cross-References. References in this Agreement to any Part
or Subpart are, unless otherwise specified, to such Part or Subpart of this
Agreement.

         SUBPART 4.2. Instrument Pursuant to Existing Loan Agreement. This
Agreement is a document executed pursuant to the Existing Loan Agreement and
shall (unless otherwise expressly indicated therein) be construed, administered
and applied in accordance with the terms and provisions of the Existing Loan
Agreement.

         SUBPART 4.3. Loan Documents. Each Credit Party hereby confirms and
agrees that the Loan Documents are, and shall continue to be, in full force and
effect, except as amended hereby, and except that, on and after the Effective
Date references in each Loan Document to the "Loan Agreement", "thereunder",
"thereof" or words of like import referring to the Existing Loan Agreement shall
mean the Amended Loan Agreement.

         SUBPART 4.4. Representations and Warranties. Each Credit Party hereby
represents and warrants that (i) it has the requisite corporate power and
authority to execute, deliver and perform this Agreement, (ii) it is duly
authorized to, and has been authorized by all necessary corporate action, to
execute, deliver and perform this Agreement, (iii) this Agreement has been duly
executed and delivered by such Credit Party and constitutes such Credit Party's
legal, valid and binding obligation, enforceable in accordance with its terms,
except as such enforceability may be limited (x) by general principles of equity
and conflicts of laws or (y) by bankruptcy, reorganization, insolvency,
moratorium or other laws of general application relating to or affecting the
enforcement, of creditors' rights, (iv) it has no claims, counterclaims,
offsets, or defenses to the Loan Documents and the performance of its
obligations thereunder, or if such Credit Party has any such claims,
counterclaims, offsets, or defenses to the Loan Documents or any transaction
related to the Loan Documents, the same are hereby waived, relinquished and
released in consideration of the Agent's execution and delivery of this
Agreement, (v) the representations and warranties contained in the Loan
Documents are, subject to the limitations set forth therein, true and correct in
all material respects on and as of the date hereof as though made on and as of
such date (except for those which expressly relate to an earlier date), (vi) no
event of default under any other agreement, document or instrument to which such
Credit Party is a party will occur as a result of the transactions contemplated
hereby, (vii) as of the date of this Agreement, no Default or Event of Default
exists, (viii) no consent, approval, authorization or order of, or filing,
registration or qualification with, any court or governmental authority or third
party is required in connection with the execution, delivery or performance by
such Credit Party of this Agreement, (ix) the execution and delivery of this
Agreement does not diminish or reduce its obligations under the

                                       5
<PAGE>

Loan Documents (including, without limitation, in the case of each Guarantor,
such Guarantor's guaranty pursuant to Section 4 of the Amended Loan Agreement)
in any manner, except as may be specifically set forth herein.

         SUBPART 4.5. Liens. Each Credit Party affirms the Liens and security
interests created and granted by it in the Loan Documents (including, but not
limited to, the Pledge Agreement and the Security Agreement) and agrees that
this Agreement shall in no manner adversely affect or impair such Liens and
security interests.

         SUBPART 4.6. Costs and Expenses. The Borrower hereby agrees to pay on
demand all out-of-pocket costs and expenses (including without limitation the
reasonable fees and expenses of counsel to the Agent) incurred by the Agent in
connection with the negotiation, preparation, execution, and delivery of this
Agreement and the enforcement or preservation of any rights and remedies of the
Agent hereunder (including without limitation any such fees and expenses
subsequently incurred by the Agent in any subsequent bankruptcy or insolvency
proceeding involving a Credit Party).

         SUBPART 4.7. Counterparts, Effectiveness, Telecopy, Etc. This Agreement
may be executed by the parties hereto in several counterparts, each of which
shall be deemed to be an original and all of which shall constitute together but
one and the same agreement. Delivery of executed counterparts by telecopy shall
be effective as an original and shall constitute a representation that an
original will be delivered.

         SUBPART 4.8. Captions. The captions in this Agreement are inserted only
as a matter of convenience and for reference and in no way define, limit or
describe the scope of this Agreement or any provision hereof.

         SUBPART 4.9. Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK
WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

         SUBPART 4.10. Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

                            (signature pages follow)

                                        6
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective duly authorized officers as of the day and year
first above written.

BORROWER:                                   AAIPHARMA INC.,
                                            a Delaware corporation

                                            By:
                                               ------------------------------

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

GUARANTORS:                                 APPLIED ANALYTICAL INDUSTRIES
                                                     LEARNING CENTER, INC.
                                            AAI TECHNOLOGIES, INC.
                                            AAI INTERNATIONAL, INC.
                                            AAI PROPERTIES, INC.
                                            KANSAS CITY ANALYTICAL
                                                     SERVICES, INC.
                                            MEDICAL & TECHNICAL RESEARCH
                                                     ASSOCIATES, INC.
                                            AAI JAPAN, INC.
                                            NEOSAN PHARMACEUTICALS, INC.

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

                                                 ----------------------------

                                                             Second Amendment to
                                      Second Amended and Restated Loan Agreement
                                                     in favor of aaiPharma, Inc.
<PAGE>

AGENT:                                      BANK OF AMERICA, N.A.

                                            Individually in its capacity as a
                                            Lender and in its capacity as Agent

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

LENDERS:                                    BANC OF AMERICA
                                            MEZZANINE CAPITAL LLC

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

                                            FIRST UNION NATIONAL BANK

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

                                                             Second Amendment to
                                      Second Amended and Restated Loan Agreement
                                                     in favor of aaiPharma, Inc.

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