Document:

<PAGE>   1
                                                                    EXHIBIT 10.3

                          THIRD AMENDMENT TO THE LEASE

                                     between

                           REGENT HOLDING CORPORATION,

                              a Florida corporation

                                       and

                            Daleen Technologies, Inc.

                             a Delaware Corporation

                             for premises located at

                              902 Clint Moore Road

                                    Suite 226

                            Boca Raton, Florida 33487

Submission of this Third Amendment for examination does not constitute an offer
to amend the lease, and this Third Amendment shall become effective only upon
execution and delivery hereof by Landlord to Tenant

                                    Initials: Landlord_________ Tenant__________
<PAGE>   2

                       THIRD AMENDMENT TO LEASE AGREEMENT
                       BETWEEN REGENT HOLDING CORPORATION,
                     A FLORIDA CORPORATION ("LANDLORD") AND
                           DALEEN TECHNOLOGIES, INC.,
                       A DELAWARE CORPORATION ("TENANT"),
                             FOR PREMISES LOCATED AT

           902 CLINT MOORE ROAD, SUITE 226, BOCA RATON, FLORIDA 33487

THIS THIRD AMENDMENT TO LEASE IS MADE THIS 31 DAY OF MAY , 2000 IS MADE BETWEEN
REGENT HOLDING CORPORATION, A FLORIDA CORPORATION ("LANDLORD"), AND DALEEN
TECHNOLOGIES, INC., A DELAWARE CORPORATION ("TENANT").

                                   BACKGROUND

A.       By the Lease agreement dated August 4, 1992, Landlord leased to Tenant
         a portion of space in the building known as Congress Corporate Plaza,
         Building three located at 902 Clint Moore Road, Suite 230, Boca Raton,
         Florida comprising approximately 8,345 rentable square feet (the
         "Premises").

B.       By the First Amendment to Lease dated December 29, 1994, Landlord and
         Tenant expanded the Premises to include suite 232 making the Premises
         approximately 12,232 r.s.f. and extended the Lease and modified the
         Base Rent.

C.       By the Second Amendment to Lease Dated January 16, 1996 Landlord and
         Tenant expanded the Premises to include suite 226 and 246 making the
         Premises approximately 25,499 r.s.f.

D.       Together the Lease, First, Second, and Third Amendments to Lease shall
         be referred to as the "Lease".

E.       At this time, Landlord and Tenant wish to extend the Term of the Lease
         and modify the Base Rent.

                                   WITNESSETH

In consideration of the mutual promises of the parties and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties intending to be legally bound, hereby agree as
follows:

1.   LEASE TERM: The lease shall be extended for a period of Three years from
     the date of current lease expiration(January 31, 2001), for the period
     February 1, 2001 through and including January 31, 2004(the "Extended
     Term").

2.   BASE RENT: Tenant agrees to pay Base Rent during the Extended Term
     according to the following schedule:

     MONTH OF                               MONTHLY                 ANNUAL
     EXTENDED TERM                          BASE RENT               BASE RENT
     -------------                          ----------              -----------

     February 2001 - January 2002           $23,583.46              $283,001.52
     February 2002 - January 2003           $24,526.80              $294,321.60
     February 2003 - January 2004           $25,507.87              $306,094.44

3.   LANDLORD'S LIEN PROTECTION: Neither Tenant nor anyone claiming by, through
     or under Tenant, including, without limitation, contractors,
     subcontractors, materialmen, mechanics and laborers, shall have any right
     to file or place mechanic's, materialmen's or other liens of any kind
     whatsoever upon the demised premises or upon the track of land described on
     Exhibit A, or any portion thereof; on the contrary, any such liens are
     specifically prohibited and shall be null and void and of no further force
     or effect. Tenant has no power to subject Landlord's interest in the
     demised premises to any claim or lien of any kind or character and any
     persons dealing with Tenant must look solely to the credit of the Tenant
     for payment.

4.   OPERATING COSTS: Tenant agrees to continue paying its proportionate share
     of Operating Costs as defined in Paragraph 7.01 of the Lease, subject to
     adjustment as defined in the Lease.

5.   OPTION TO RENEW: Provided no uncured Event of Default exists and Tenant is
     occupying the entire Premises at the time of such election, Tenant may
     renew this Lease for one additional periods of three years, by delivering
     written notice of the exercise thereof to Landlord not earlier than 12
     months nor later than 9 months before the expiration of the Term. On or
     before the commencement date of the extended Term in question, Landlord and
     Tenant shall execute an amendment to this Lease extending the Term on the
     same terms provided in this Lease, except as follows:

                  (a) The Base Rent payable for each year during the extended
                  Term shall be upon the following schedule:.

                               Year 1: $318,338.16
                               Year 2: $331,071.72
                               Year 3: $344,314.56

                  (b) Tenant shall have no further renewal options unless
                  expressly granted by Landlord in writing; and

                               Initials: Landlord_________     Tenant__________

<PAGE>   3

                       THIRD AMENDMENT TO LEASE AGREEMENT
                       BETWEEN REGENT HOLDING CORPORATION,
                     A FLORIDA CORPORATION ("LANDLORD") AND
                           DALEEN TECHNOLOGIES, INC.,
                       A DELAWARE CORPORATION ("TENANT"),
                             FOR PREMISES LOCATED AT

           902 CLINT MOORE ROAD, SUITE 226, BOCA RATON, FLORIDA 33487

                                   (continued)

                  (c) Landlord shall lease to Tenant the Premises in their
                  then-current condition, and Landlord shall not provide to
                  Tenant any allowances (e.g., moving allowance, construction
                  allowance, and the like) or other tenant inducements.

                  (d) Tenant's rights under this paragraph 5 shall terminate if
                  (1) this Lease or Tenant's right to possession of the Premises
                  is terminated, (2) Tenant assigns any of its interest in this
                  Lease (other than an assignment which does not require
                  Landlord's consent as per Paragraph 7 (b) of this Third
                  Amendment) or sublets more than 49% of the Premises or (3)
                  Tenant fails to timely exercise its option under this Third
                  Amendment, time being of the essence with respect to Tenant's
                  exercise thereof.

6.       TENANT IMPROVEMENTS: Tenant agrees to accept the Premises as expanded
         in an As-Is condition.

7.       ASSIGNMENT: Paragraphs 14.01 and 34.01 of the Lease are hereby amended
         as follows:

         (a)      Landlord's consent to the assignment or sublet of all or a
                  portion of the Premises shall not be unreasonably withheld.
                  Tenants obligation to pay a fee for the review of any request
                  for assignment or subletting of the Premises shall be limited
                  to Landlord's reasonable attorney's fees not to exceed $1,000.

         (b)      No Landlord Consent shall be required in the event of the
                  following events:

                  (i)      sale, merger, or consolidation of the Tenant;
                  (ii)     transfer or sale of up to 49% of the stock or other
                           securities of Tenant;
                  (iii)    sale of substantially all of the assets of Tenant; or
                  (iv)     a private or public offering of Tenant's securities

8.       ANTENNAE:

Landlord approval of any Tenant request for the installation of a satellite dish
or other form of antenna shall not be unreasonably withheld, so long as the
installation of said dish or antenna does not materially and negatively alter
the exterior appearance of the building, nor materially impact the roof or
building structure. Landlord agrees that no fee or rent shall be charged to
Tenant for said approval or use of the roof or building structure for said
installation.

9. RIGHT OF FIRST OFFER. Provided Tenant is not in default of any of the terms
and conditions of this Lease, Landlord agrees to extend a right of first offer
to Tenant during the initial lease term on all space available to the market
(the "Available Space") for lease adjacent to the Premises or Congress Corporate
Plaza Phase II, Suite 138, but only if the remaining term of this Lease at the
time the Available Space becomes available (including any renewal option
exercisable by Tenant) is not less than three (3) years. This right of first
offer to lease the Available Space shall be subordinate to any extensions,
renewals, or other terms and conditions granted to the Third party tenant in
connection with the initial leasing of the Available Space. When and if such
Available Space should become available during the term of this Lease, or at
Landlord's option, up to six (6) months prior to the date that the Available
Space is scheduled to become available, Landlord shall first offer in writing to
lease such Available Space to Tenant and Tenant shall accept such offer, if at
all, in writing within ten (10) days after receipt of such notice from Landlord.
If Tenant shall not exercise this right of first offer within the time period
specified herein, this right of first offer of Available Space shall be null,
void, and of not further effect for such offered space. Notwithstanding the
foregoing, in no event shall this right of first offer to lease Available Space
be in effect if (1) this Lease or Tenant's right to possession of the Premises
is terminated, (2) Tenant assigns any of its interest in this Lease (other than
an assignment which does not require Landlord's consent as per Paragraph 7 (b)
of this Third Amendment) or sublets more than 49% of the Premises or (3) Tenant
fails to timely exercise its right of first offer under this Third Amendment,
time being of the essence with respect to Tenant's exercise thereof. If the
right of first offer is exercised, the initial annual net rent for the Available
Space shall be equal to the greater of the fair market rental rate then being
offered by Landlord to similar Third party prospects in the building or the
annual net rent then in effect on Tenant's Premises at the time of Landlord's
notice to Tenant of the availability of said Available Space. The tenant
improvement allowance shall be in accordance with market lease terms for
comparable buildings of similar quality and size taking

                               Initials: Landlord_________     Tenant__________
<PAGE>   4

                       THIRD AMENDMENT TO LEASE AGREEMENT
                       BETWEEN REGENT HOLDING CORPORATION,
                     A FLORIDA CORPORATION ("LANDLORD") AND
                           DALEEN TECHNOLOGIES, INC.,
                       A DELAWARE CORPORATION ("TENANT"),
                             FOR PREMISES LOCATED AT

           902 CLINT MOORE ROAD, SUITE 226, BOCA RATON, FLORIDA 33487

                                   (continued)

into account the term of the lease for the offer space. In no event will the
tenant improvement allowance be greater than the cost of recarpeting and
repainting the Available space with building standard materials. The initial
annual net base rent on all space leased under the right of first offer shall be
increased by 4% per annum. The lease term of the Available Space shall be
co-terminus with the lease term for the Premises. In no event shall the lease
term for the Available Space be for a period of less than three (3) years. If
necessary to assure a term of not less than three years, Tenant must exercise
any available renewal option in conjunction with its exercise of this right of
first offer. The lease of the Available Space shall otherwise be on the same
terms and conditions as set forth in this Lease.

10.      MISCELLANEOUS:

         (a)      Landlord agrees to return any and all security deposits and
                  waive the requirement for a letter of credit as a supplement
                  to any existing cash security deposit.. Tenant agrees that 90
                  days prior to the expiration of this Lease to increase its
                  security deposit from $0 to $10,000.00, which shall be
                  returned to Tenant as per Paragraph 4.01 of the Lease.
                  Landlord acknowledges that the personal guaranty placed by
                  James Daleen guaranteeing the performance of the Tenant under
                  the Lease is null and void and no longer in effect..

         (b)      The Parties acknowledge that the real estate brokerage firm of
                  Trammell Crow Realty Services, Inc., represented the Landlord
                  and NAI Merin Hunter Codman, Inc., represented the
                  Tenant("Brokers"). All real estate commissions due shall be
                  paid by Landlord as agreed to under separate agreement between
                  Landlord and Brokers.

         (c)      This Third Amendment shall be deemed part of, but shall take
                  precedence over and supersede any provisions to the contrary
                  contained in the Lease. All initial capitalized terms used in
                  this Third Amendment shall have the same meaning as set forth
                  in the Lease unless otherwise provided. Except as specifically
                  modified hereby, all of the provisions of the Lease which are
                  not in conflict with the terms of this Third Amendment shall
                  remain in full force and effect.

         (d)      There are no promises, understandings, agreements, or
                  commitments between Landlord, Tenant, or any of its officers,
                  directors, employees, or agents except as expressly set forth
                  in the Lease, as amended.

         (e)      Except as described in the Lease as amended, Tenant does not
                  have ( i ) any right or option to renew or extend the term of
                  the Lease; ( ii ) any right or option to lease the space
                  within the building beyond the space Tenant is currently
                  leasing (" Premises"): or ( iii) any preferential right,
                  option or right of first refusal to purchase all or part of
                  the Premises or the building or property of which they are a
                  part.

         (f)      The Lease has been properly executed by Tenant, is in full
                  force and effect, and constitutes the binding obligation of
                  Tenant.

         (g)      To the best knowledge of Tenant, the Landlord is not in
                  default under the Lease and no event has occurred which, with
                  the giving of notice or the passage of time or both, would
                  result in a default by the Landlord under the Lease.

         (h)      Except for those improvements described in this ;Third
                  Amendment to Lease, the Premises and all improvements to the
                  Premises required to be made by Landlord under the Lease have
                  been completed and furnished in accordance with the provisions
                  of the Lease and have been accepted by Tenant. All required
                  contributions or payments by Tenant to the Landlord on account
                  of improvements to the Premises (whether performed by Landlord
                  or otherwise) have been received in full by the Tenant. Tenant
                  has no defenses offset, liens, claims or credits against rent
                  or other amounts payable by Tenant under the Lease.

         (i)      Tenant is not entitled to and has made no agreement with
                  Landlord or its agents, or employees concerning future free
                  rent, partial rent, rebate of rental payments, credit or
                  offset or reduction in rent, or any other type of rental
                  concession, including without limitation, lease support
                  payments or lease buy-outs.

         (j)      Tenant is obligated to pay monthly base rent to Landlord at
                  the rate set forth in the Lease. Except as to any application
                  of security deposits against Base Rent as described in the
                  Lease, no monthly base rent has been paid more than (1) month
                  in advance of its due date.

                               Initials: Landlord_________     Tenant__________
<PAGE>   5

                       THIRD AMENDMENT TO LEASE AGREEMENT
                       BETWEEN REGENT HOLDING CORPORATION,
                     A FLORIDA CORPORATION ("LANDLORD") AND
                           DALEEN TECHNOLOGIES, INC.,
                       A DELAWARE CORPORATION ("TENANT"),
                             FOR PREMISES LOCATED AT

           902 CLINT MOORE ROAD, SUITE 226, BOCA RATON, FLORIDA 33487

                                   (continued)

         (j)      To the best knowledge of Tenant, no actions, whether voluntary
                  or otherwise are pending against Tenant or the trade name or
                  assumed name under which tenant conducts business at the
                  Premises under the bankruptcy laws of the United States.

         (k)      Tenant does not use, and to the best of the Tenant's
                  knowledge, the Premises have not been used by Tenant for
                  storage, generation or use of toxic or hazardous materials
                  ("Hazardous Materials") in violation of applicable laws.
                  Tenant has not received any notice from any governmental
                  authority that its operations on the Premises constitute a
                  violation of or require special procedures under building,
                  zoning, environmental or other applicable laws or ordinances
                  and Tenant has no knowledge of any such violation which has
                  not been satisfied.

     The parties intending to be bound hereby execute or cause this Third
Amendment to be executed this 31st day of May, 2000.

         WITNESSES:                      LANDLORD:

                                         Regent Holding Corporation,
                                         A Florida Corporation

-----------------------------            By: /s/ Leo Ghitis
                                             -----------------------------------
-----------------------------            Title:  PRESIDENT

                                         TENANT:

                                         Daleen Technologies, Inc.,
                                         A Delaware Corporation

------------------------------           By: /s/ Stephen Wagman

-------------------------------          Title:  EVP CORP DEVELOPMENT

                                                        CCP Phase II, Building 3

                                    EXHIBIT A

                                LEGAL DESCRIPTION

Approximately 25,499 rentable square feet of office and/or warehouse space
located in a building containing approximately 53,022 square feet situated on a
portion of approximately 9.49 acres on a parcel of land lying in Section 6,
Township 47 South, Range 43 East and being more particularly described as 902
Clint Moore Road, Suite 226, Boca Raton, Florida. Further described as Congress
Corporate Plaza, Phase II situated within a development known as Congress
Corporate Plaza containing of approximately 106,044 square feet.

                               Initials: Landlord_________     Tenant__________<PAGE>   1

                                                                   Exhibit 10.16
                        FIRST AMENDMENT TO LOAN AGREEMENT

         This First Amendment to Loan Agreement, dated as of May 31, 2000 (this
"Agreement"), is by and among APPLIED ANALYTICAL INDUSTRIES, INC., a Delaware
corporation having its principal place of business in Wilmington, North Carolina
(the "U.S. Borrower"), AAI APPLIED ANALYTICAL INDUSTRIES DEUTSCHLAND GmbH & CO.,
KG, a German corporation (the "German Borrower" and, together with the U.S.
Borrower, the "Borrowers"), each of the subsidiaries of the U.S. Borrower
identified on the signature pages hereof (the "Guarantors"), and BANK OF
AMERICA, N.A., a national banking association (the "Bank").

RECITALS:

         A. Pursuant to that certain Amended and Restated Loan Agreement dated
as of November 30, 1999 (the "Existing Credit Agreement"), the Bank has extended
a revolving credit facility to the U.S. Borrower in the amount of up to
$25,000,000 and has made a term loan to the German Borrower in the principal
amount of DM 12,000,000.

         B. The Borrowers have requested that the Bank extend the maturity date
under the Existing Credit Agreement until November 30, 2000.

         C. The Bank is willing to extend the maturity date under the Existing
Credit Agreement until November 30, 2000 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 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 Credit Agreement" means the Existing Credit Agreement
         as amended hereby.

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

         SUBPART 1.2. Other Definitions. Unless otherwise defined herein or the
context otherwise requires, terms used in this Agreement have the meanings
provided in the Amended Credit Agreement.

<PAGE>   2

                                     PART II
                     AMENDMENTS TO EXISTING CREDIT AGREEMENT

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

         SUBPART 2.1. Borrowing Base. The definition of "Borrowing Base" in
Section 1.01 of the Existing Credit Agreement is amended in its entirety so that
such definition now reads as follows:

                  "Borrowing Base" means, as of any day, the sum of (a) 80% of
         Eligible Receivables plus (b) the lesser of (i) 75% of Fixed Asset
         Value and (ii) $26,000,000 minus (c) all indebtedness for borrowed
         money, howsoever evidenced, or its equivalent (including but not
         limited to leases required to be capitalized under Generally Accepted
         Accounting Principles and letters of credit), other than Revolving
         Loans outstanding hereunder, incurred by, or issued for the benefit of,
         the Credit Parties (converted, if necessary, to U.S. dollars at the
         Bank's then applicable exchange rate); provided that (A) in the case of
         clauses (a) and (b)(i) above, such amounts shall be as set forth in the
         most recent Borrowing Base Certificate delivered to the Bank in
         accordance with the terms of Section 6.01(b)(3) and (B) the advance
         rates set forth above shall be subject to appraisals conducted from
         time to time by the Bank and may be increased or decreased by the Bank
         at any time and from time to time in the exercise of its reasonable
         credit judgment (it being understood that the U.S. Borrower hereby
         consents to any such increases or decreases and acknowledges that
         decreasing the advance rates or increasing the reserves may limit or
         restrict the availability of Revolving Loans requested by the U.S.
         Borrower);

         SUBPART 2.2. Maturity Date. The definition of "Maturity Date" in
Section 1.01 of the Existing Credit Agreement is amended in its entirety so that
such definition now reads as follows:

                  "Maturity Date" means November 30, 2000;

         SUBPART 2.3. Revolving Loans. Section 2.01 of the Existing Credit
Agreement is amended by adding the words "plus $6,000,000" following "Borrowing
Base" in clause (ii) of the first sentence of such section.

         SUBPART 2.4. Commitment Extension Fee. Section 2.04 of the Existing
Credit Agreement is amended by adding the following sentence to the end of such
section:

                  In addition, the U.S. Borrower agrees to pay the Bank a
         monthly commitment extension fee in an amount equal to $3,000 per
         month, each such fee to be paid in advance on the first day of each
         calendar month, commencing June 1, 2000, and to be deemed fully earned
         upon becoming due and payable.

                                       2

<PAGE>   3

         SUBPART 2.5. Financial Covenants. Section 6.01(p) of the Existing
Credit Agreement is amended in its entirety to read as follows:

                  (p) satisfy or cause to be satisfied the following financial
         tests:

                           (i) the U.S. Borrower will maintain as of the end of
                  each fiscal quarter (commencing with the fiscal quarter ending
                  March 31, 2000) Tangible Net Worth of not less than an amount
                  (the "Net Worth Floor") initially equal to $50,000,000,
                  provided that the Net Worth Floor shall increase on the last
                  day of each fiscal quarter to occur after March 31, 2000 by
                  50% of the net income of the U.S. Borrower and its
                  Subsidiaries for the fiscal quarter then ending (computed on a
                  consolidated basis and in accordance with Generally Accepted
                  Accounting Principles), such increases to be cumulative (it
                  being understood that the Net Worth Floor shall not decrease
                  on the last day of any fiscal quarter as a result of negative
                  net income for such quarter);

                           (ii) the U.S. Borrower shall maintain a Cash Flow
                  Coverage Ratio computed as of the last day of each fiscal
                  quarter (commencing with the fiscal quarter ending March 31,
                  2000) of (A) with respect to the fiscal quarter ending March
                  31, 2000, not less than 1.00 to 1.0, (B) with respect to the
                  fiscal quarter ending June 30, 2000, not less than 1.20 to 1.0
                  and (C) with respect to the fiscal quarter ending September
                  30, 2000, not less than 1.25 to 1.0; provided, however, that,
                  notwithstanding the definition of Cash Flow Coverage Ratio,
                  (a) the Cash Flow Coverage Ratio as of March 31, 2000 shall be
                  calculated using annualized EBITDA for the two fiscal
                  quarterly periods then ended (i.e. aggregate EBITDA for the
                  fiscal quarters ending December 31, 1999 and March 31, 2000
                  times 2.00) and (b) the Cash Flow Coverage Ratio as of June
                  30, 2000 shall be calculated using annualized EBITDA for the
                  three fiscal quarterly periods then ended (i.e. aggregate
                  EBITDA for the fiscal quarters ending December 31, 1999, March
                  31, 2000 and June 30, 2000 times 1.33);

                           (iii) the U.S. Borrower shall maintain a ratio of
                  Funded Debt to EBITDA computed as of the last day of each
                  fiscal quarter (commencing with the fiscal quarter ending
                  March 31, 2000) of (A) with respect to the fiscal quarter
                  ending March 31, 2000, not greater than 3.90 to 1.0, (B) with
                  respect to the fiscal quarter ending June 30, 2000, not
                  greater than 3.60 to 1.0 and (C) with respect to the fiscal
                  quarter ending September 30, 2000, not greater than 3.40 to
                  1.0; provided, however, that (a) the ratio of Funded Debt to
                  EBITDA as of March 31, 2000 shall be calculated using
                  annualized EBITDA for the two fiscal quarterly periods then
                  ended (i.e. aggregate EBITDA for the fiscal quarters ending
                  December 31, 1999 and March 31, 2000 times 2.00) and (b) the
                  ratio of Funded Debt to EBITDA as of June 30, 2000 shall be
                  calculated using annualized EBITDA for the three fiscal
                  quarterly periods then ended (i.e. aggregate EBITDA for the
                  fiscal quarters ending December 31, 1999, March 31, 2000 and
                  June 30, 2000 times 1.33); and

                                       3

<PAGE>   4

                           (iv) the U.S. Borrower shall maintain at all times
                  Eligible Receivables such that, on each day, the product of
                  (A) Eligible Receivables times (B) 80% is no less than
                  $13,000,000.

         SUBPART 2.6. Payment on Business Day. Section 9.08 of the Existing
Credit Agreement is amended in its entirety to read as follows:

                  9.08 PAYMENT ON BUSINESS DAY.

         Should any installment or other payment of the principal of or interest
on the Notes, or any fee or other amount owing under this Loan Agreement, become
due and payable on other than a Business Day, the maturity thereof shall be
extended to the next succeeding Business Day thereafter and in the case of an
installment of principal, interest shall be payable thereon at the rate per
annum herein specified during such extension.

                                    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 Bank shall have received an
         original duly executed counterpart of this Agreement from the Borrowers
         and the Guarantors.

                  3.1.2. Closing Certificate. The Bank shall have received a
         certificate from the U.S. Borrower, in form and substance satisfactory
         to the Bank, certifying inter alia that (i) no Default or Event of
         Default exists as of the Effective Date, and (ii) the representations
         and warranties of the Credit Parties made in or pursuant to the
         Existing Credit Agreement and the other Loan Documents are true in all
         material respects on and as of the Effective Date.

                  3.1.3. Commitment Extension Fee. The Bank shall have received
         the U.S. Borrower's payment of a commitment extension fee in the amount
         of $18,000 in consideration of the Bank's extension of the Maturity
         Date pursuant to the terms of this Agreement. Such fee shall be fully
         earned by the Bank as of the Effective Date.

                  3.1.4. Environmental Consultants. The Bank shall be satisfied
         that (a) the U.S. Borrower has engaged appropriate consultants to
         perform environmental due diligence on all domestic real estate owned
         by the Credit Parties (other than the real estate relating to the
         financing which is the subject of the Participation Agreement) and (b)
         such environmental due diligence will be completed in form and
         substance satisfactory to the Bank prior to June 15, 2000.

                                       4

<PAGE>   5

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

         SUBPART 4.3 Credit 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 "Credit Agreement", "thereunder",
"thereof" or words of like import referring to the Existing Credit Agreement
shall mean the Amended Credit 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) 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 Bank's execution and delivery of this
Agreement, (iv) 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), (v) 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, and (vi) as of the date of this Agreement, no Event of Default exists.

         SUBPART 4.5. Costs and Expenses. The U.S. Borrower hereby agrees to pay
on demand all costs and expenses (including without limitation the reasonable
fees and expenses of counsel to the Bank) incurred by the Bank in connection
with the negotiation, preparation, execution, and delivery of this Agreement and
the enforcement or preservation of any rights and remedies of the Bank hereunder
(including without limitation any such fees and expenses subsequently incurred
by the Bank in any subsequent bankruptcy or insolvency proceeding involving a
Credit Party).

         SUBPART 4.6. Counterparts, Effectiveness, 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.

                                       5

<PAGE>   6

         SUBPART 4.7. 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 4.8 Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NORTH
CAROLINA WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

         SUBPART 4.9 Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

                                       6

<PAGE>   7

         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.

U.S. BORROWER:                     APPLIED ANALYTICAL INDUSTRIES, INC.,
                                   a Delaware corporation

                                   By:_________________________
                                   Name:_______________________
                                   Title:______________________

GERMAN BORROWER:                   AAI APPLIED ANALYTICAL INDUSTRIES
                                   DEUTSCHLAND GmbH & CO., KG,
                                   a German corporation

                                   By:_________________________
                                   Name:_______________________
                                   Title:______________________

THE GUARANTORS:                    APPLIED ANALYTICAL INDUSTRIES
                                            LEARNING CENTER, INC.
                                   AAI TECHNOLOGIES, INC.
                                   AAI PROPERTIES, INC.
                                   KANSAS CITY ANALYTICAL SERVICES, INC.
                                   MEDICAL & TECHNICAL RESEARCH
                                            ASSOCIATES, INC.
                                   AAI JAPAN, INC.
                                   APPLIED ANALYTICAL INDUSTRIES
                                            ITALY, S.r.l.
                                   AAI UK LTD.
                                   AAI VERMOGENSVER-
                                            WALTUNGSGESELLSCHAFT mgH
                                   AAI APPLIED ANALYTICAL INDUSTRIES
                                            DEUTSCHLAND VERWALTUNGS-
                                            GESELLSCHAFT mbH
                                   APPLIED ANALYTICAL INDUSTRIES
                                            DEUTSCHLAND GmbH
                                   AAI BENELUX B.V.
                                   AAI APPLIED ANALYTICAL INDUSTRIES
                                            FRANCE S.A.R.L.
                                   NEOSAN ARZNEIMITTEL-
                                            VERTRIEBSGESELLSCHAFT mbH

<PAGE>   8

                                   I.P.A.- INTERNATIONALE PHARMA
                                            AGENTUR GmbH
                                   INPHARMCO GESELLSCHAFT zur
                                            VERMARKTUNG VON
                                            ARZNEIMITTELN mbH
                                   LAB (GREAT BRITAIN) LIMITED
                                   PROSCIENTIA HOLDING AG
                                   TECHNOPHARM S.A.

                                   By:_________________________
                                   Name:_______________________
                                   Title:______________________

BANK:                              BANK OF AMERICA, N.A.

                                   By:_________________________
                                   Name:_______________________
                                   Title:______________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}]]