Document:

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                                                                   EXHIBIT 10.41

                                 FIRST AMENDMENT
                         TO LOAN AND SECURITY AGREEMENT
                 BETWEEN STAR TOBACCO AND PHARMACRUTICALS, INC.
                 AND FINOVA CAPITAL CORPORATION, BUSINESS CREDIT

              This FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (this
"Amendment") is made as of April 12, 2000 by and between FINOVA CAPTIAL
CORPORATION, BUSINESS CREDIT ("FINOVA") and STAR TOBACCO AND PHARMACEUTICALS,
INC., ("BORROWER"), in light of the following:

              WHEREAS, Borrower and FINOVA entered into a Loan and Security
Agreement dated January 20, 2000 (as amended from time to time, the "Loan
Agreement"). Capitalized terms used herein shall have the meanings set forth in
the Loan Agreement unless specifically defined herein); and

              WHEREAS, Borrower and FINOVA wish to amend the Loan Agreement set
forth herein:

              NOW THEREFORE, in consideration of the mutual promises and
agreements of the parties hereinafter set forth and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

              1.     Section 2.1 of the Loan Agreement is deleted in its
entirety and replaced with the following:

                     2.1    REVOLVING ADVANCES. Upon the request of Borrower,
              made at any time during the term hereof, and so long as no Event
              of Default exists, FINOVA shall, in its sole discretion, make
              advances (the Revolving Advances) to Borrower in an amount equal
              to eighty percent (80%) of the aggregate outstanding amount of
              Eligible Accounts; PROVIDED, HOWEVER, that in no event shall the
              aggregate amount of the outstanding Revolving Advances be greater
              than, at any time, the sum of Seven Million Five Hundred Thousand
              Dollars ($7,500,000) (the Revolving Advance Limit). FINOVA may
              reduce its advance rates on Eligible Accounts, reduce the
              Revolving Advance Limit or establish reserves with respect to
              borrowing availability if FINOVA determines, in its sole
              discretion, that there has occurred, or is likely to occur, an
              impairment of the prospect of repayment of all or any portion of
              the Obligations, the value of the Collateral or the validity or
              priority of FINOVA's security interests in the Collateral.

              2.     Borrower affirms, ratifies and confirms its Obligations
under the Loan Agreement, acknowledges that all of the terms and conditions in
the Loan Agreement (except as amended herein) remain in full force and effect
and further

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acknowledges that the security interest granted to FINOVA in the Collateral is
valid and perfected.

              3.     Borrower is not aware of any events which now constitute,
or with the passage of time or the giving of notice would constitute, an Event
of Default under the Loan Agreement.

              4.     This Amendment constitutes the entire agreement of the
parties in connection with the subject matter of this Amendment and cannot be
changed or terminated orally. All prior agreements, understandings,
representations, warranties and negotiations regarding the subject matter
hereof, if any, are merged into this Amendment.

              5.     This Amendment may be executed in counterparts, each of
which when so executed and delivered shall be deemed an original, and all of
such counterparts together shall constitute but one and the same agreement.

              6.     In consideration of the increase to the Revolving Advance
Limit granted hereby, Borrower shall pay FINOVA a fee of Twenty Two Thousand
Five Hundred Dollars ($22,500), which shall be fully earned and due and payable
on the date hereof.

              7.     This Amendment shall be governed by, and construed and
enforced in accordance with, the laws of the State of Arizona.

              IN WITNESS WHEREOF, Borrower and FINOVA have executed this
Amendment as of the date first written above.

                                          FINOVA CAPITAL CORPORATION,
                                          BUSINESS CREDIT, a Delaware
                                          Corporation

                                          By:
                                             -----------------------------------
                                          Print Name:
                                          Title/Capacity:

                                          STAR TOBACCO AND
                                          PHARMACEUTICALS, INC., a Virginia
                                          Corporation

                                          By:
                                             -----------------------------------
                                          Print Name:
                                          Title/Capacity

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                              OFFICER'S CERTIFICATE

The undersigned, a duly authorized officer of STAR TOBACCO & PHARMACEUTICALS,
INC. ("Borrower"), certifies to FINOVA CAPITAL CORPORATION ("FINOVA") as
follows:

1.     Borrower has requested that FINOVA amend the Loan and Security Agreement
dated January 20, 2000 (as amended, the "Loan Agreement") as provided in the
First Amendment to Loan and Security Agreement dated the date hereof (the
"Amendment").

2.     No further corporate approvals or authorizations are necessary for
Borrower to execute the Amendment.

3.     As of the date set forth below, (a) all of the representations and
warranties in the Loan Agreement are true and accurate, and (b) no "Event of
Default" (as defined in the Loan Agreement) has occurred and is continuing.

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                                                                   EXHIBIT 10.42

                             MODIFICATION AGREEMENT

       THIS MODIFICATION AGREEMENT, dated as of December 1, 1999, by and among
STAR SCIENTIFIC, INC., a Delaware corporation (the "Company"), JONNIE R.
WILLIAMS ("Mr. Williams"), and PAUL L. PERITO, ESQUIRE ("Executive").

Recitals

       A.     The Company, Mr. Williams and Executive are parties to that
certain Star Scientific, Inc. Executive Employment Agreement, dated as of April
27, 1999 (The "Employment Agreement"), pursuant to which Executive was employed
by the Company as General Counsel, Executive Vice President and Secretary of the
Company. Certain of the Company's obligations to Executive are secured by the
terms of that certain Pledge Agreement, dated as of April 27, 1999 (the "Pledge
Agreement"), from Mr. Williams in favor of Executive.

       B.     The Company has elected Executive as President and Chief Operating
Officer of the Company, and Executive has accepted such offices, subject to and
in accordance with the terms set forth in this Modification Agreement, on or
about November 20, 1999 (pursuant to a vote at a duly constituted meeting of the
Board of Directors of the Company), to commence duties on or before December 1,
1999.

Agreement

       NOW, THEREFORE, in consideration of these premises, the mutual covenants
and agreements of the parties hereunder, and for other good and valuable
consideration the sufficiency and receipt of which are hereby acknowledged, the
parties hereto hereby agree as follows:

              1.     Employment Agreement. The Employment Agreement is modified
and amended as follows:

              a.     Section 1.a. is deleted and replaced with the following:

                            a.     Position. The Company hereby employs
                     Executive, and Executive hereby accepts employment with the
                     Company, as President and Chief Operating Officer of the
                     Company.

              b.     Section 1.b. is deleted and replaced with the following:

                            b.     Duties. Executive agrees to devote his best
                     efforts, and shall have primary responsibility within the
                     Company, to oversee and manage (i) development and
                     management of the intellectual property, including all
                     matters relating to science and technology related to the
                     Company's business and all related research and
                     development, (ii) legal affairs of the Company, including
                     all matters concerning the Company's corporate governance
                     and structure, securities laws and other regulatory
                     compliance, employment laws compliance and counseling,
                     contract negotiation and dispute resolution, and litigation
                     involving the Company,

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                     (iii) financial affairs of the Company, (iv) government
                     relations and lobbying concerning the Company's business
                     and affairs, (v) public and investor relations concerning
                     the Company's business and affairs, and (vi) such other
                     duties, including management and oversight functions,
                     consistent with the foregoing, assigned to him by the Board
                     of Directors of the Company (the "Board of Directors").
                     Executive shall perform his duties in a trustworthy,
                     businesslike and loyal manner.

                     c.     Section 1.g. is modified by replacing the phrase
       "seventy percent (70%)" with "ninety percent (90%)" and by replacing the
       phrase "thirty percent (30%)" with "ten percent (10%)", in the first
       sentence of Section 1.g.

                     d.     Section 1.h. is modified by replacing the phrase
       "thirty percent (30%)" with "ten percent (10%)" everywhere such phrase is
       found in Section 1.h.

                     e.     Section 1.i is modified by replacing the phrase
       "June 15, 20002" with "December 1, 2002."

                     f.     Section 2.a. is modified by replacing the phrase
       "Six Hundred Thousand Dollars ($600,000)" with "One Million Two Hundred
       Thousand Dollars ($1,200,000)."

                     g.     Except as expressly modified above in Sections
       1.a.-1.f., all of the terms of the Employment Agreement are hereby
       ratified and confirmed and remain in full force and effect.

              2.     Pledge Agreement. Mr. Williams hereby ratifies and confirms
the terms of the Pledge Agreement which is hereby ratified and confirmed and
remains in full force and effect.

              3.     Governing Law. This Agreement shall in all respects be
construed according to the laws of the Commonwealth of Virginia, without regard
to its conflict of laws principles.

              4.     Counterparts. This Agreement may be executed in any number
of counterparts, each of which may be executed by less than all of the parties
to this Agreement, each of which shall be enforceable against the parties
actually executing such counterparts, and all of which together shall constitute
one instrument.

              5.     Signatures. The parties shall be entitled to rely upon and
enforce a facsimile of any authorized signatures as if it were the original.

                         [Signatures on following page.]

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       IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

                                              COMPANY:

                                              STAR SCIENTIFIC, INC.

                                              By:_________________________[SEAL]
                                                 Jonnie R. Williams
                                                 Chief Executive Officer

                                              Mr. Williams:

                                              ____________________________[SEAL]
                                              Jonnie R. Williams

                                              EXECUTIVE

                                              ____________________________[SEAL]
                                              Paul L. Perito

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