Document:

Ascent Pediatrics, Inc.
                               Maximum $6,250,000

                        7.5% Notes Due December 31, 2001
                                 Loan Agreement
                             Date: December 29, 2000

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                                       ii

                                TABLE OF CONTENTS
ARTICLE  I
DEFINITIONS  AND  INCORPORATION  BY  REFERENCE
1.1     Definitions
1.2     Rules  of  Construction
ARTICLE  II
AMOUNT  AND  TERMS  OF  NOTES
2.1     Commitment  to  Lend;  Loans
2.2     Evidence  of  Debt
2.3     Making  of  Loans
2.4     Interest  and  Principal  Payments
2.5     Mandatory  Prepayment  upon  Change  in  Control
2.6     Mandatory  Prepayment  Upon  Demand
ARTICLE  III
REPRESENTATIONS  AND  WARRANTIES  OF  THE  COMPANY
3.1     Organization  and  Existence,  etc.
3.2     Capitalization
3.3     Authorization;  Binding  Obligations
3.4     Compliance  with  Instruments,  etc.
3.5     Litigation
3.6     Offering
3.7     Permits;  Governmental  and  Other  Approvals
3.8     Form  10-K  and  10-Q
3.9     Priority
ARTICLE  IV
CONDITIONS  OF  OBLIGATIONS  OF  THE  LENDER
4.1     Conditions  to  Lender's  Obligations  on  the  First  Loan  Date
4.2     Conditions  Precedent  to  Each  Loan
4.3     Cooperation
ARTICLE  V
ARTICLE  VI
AFFIRMATIVE  COVENANTS  OF  THE  COMPANY
6.1     Use  of  Proceeds
6.2     Further  Assurances
6.3     Termination
6.4     Strategic  Transaction

ARTICLE  VII
NEGATIVE  COVENANTS
7.1     Borrowed  Money  Indebtedness
7.2     Liens
7.3     Contingent  Liabilities
7.4     Mergers,  Consolidations  and  Dispositions  and Acquisitions of Assets
7.5     Redemption,  Dividends  and  Distributions
7.6     Nature  of  Business
7.7     Transactions  with  Related  Parties
7.8     Loans  and  Investments
7.9     Organizational  Documents
7.10     Lease  Expenses;  Purchase  Money  Indebtedness
7.11     Sale/Leasebacks
7.12     Issuance  of  Stock
7.13     Subsidiaries
7.14     Termination
ARTICLE  VIII
DEFAULTS  AND  REMEDIES
8.1     Events  of  Default
8.2     Acceleration
8.3     Other  Remedies
8.4     Waiver  of  Past  Defaults
ARTICLE  IX
RESTRICTIONS  ON  TRANSFER
9.1     Securities  Laws  Restrictions  on  Transfer
9.2     Restrictive  Legend
9.3     Additional  Restrictions
ARTICLE  X
AMENDMENT,  SUPPLEMENT  AND  WAIVER
10.1     With  Consent  of  Holders  of  the  Note
ARTICLE  XI
MISCELLANEOUS
11.1     Notices
11.2     Duplicate  Originals
11.3     Governing  Law
11.4     No  Adverse  Interpretation  of  Other  Agreements
11.5     Successors  and  Assigns
11.6     Separability
11.7     Headings,  etc.
11.8     Confidentiality
11.9     Lender  Representations  and  Warranties

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     LOAN AGREEMENT (the "Agreement") dated as of December 29, 2000 among ASCENT
PEDIATRICS,  Inc.,  a  Delaware  corporation  (the  "Company"),  and  FS  ASCENT
INVESTMENTS  LLC,  a  Delaware  limited  liability  company  (the  "Lender").
WHEREAS,  the  Lender  has  agreed  to loan to the Company an aggregate of up to
$6,250,000  from  time  to  time upon the terms and conditions set forth herein;
     NOW, THEREFORE, in consideration of the premises, it is agreed by and among
the  parties  hereto  as  follows:
   ARTICLE IARTICLE I1DEFINITIONS AND INCORPORATION BY REFERENCEDEFINITIONS AND
                           INCORPORATION BY REFERENCE
1.1     DEFINITIONS1.1     Definitions  .
"Affiliate"  shall have the meaning ascribed to it in Rule 405 promulgated under
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the  Securities  Act.
"Alpharma"  means  Alpharma  USPD  Inc.,  a  Maryland  corporation.
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"Approved Accounting Firm" shall have the meaning set forth in Section 6.1(a) of
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this  Agreement.
"Bankruptcy  Law"  means Title 11, U.S. Code or any similar Federal or State law
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for  the  relief  of  debtors.  The term "Custodian" means any receiver trustee,
assignee,  liquidator  or  similar  official  under  any  Bankruptcy  Law.
"Board  of  Directors"  means  the  Board  of  Directors  of  the Company or any
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committee  of  the  Board  authorized  to  act  for  it  hereunder.
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"Borrowed  Money  Indebtedness"  means,  with  respect  to  any  Person, without
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duplication:
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     (a)     all  obligations  of  such  Person  for  borrowed  money;
(b)     all  obligations of such Person evidenced by bonds, debentures, notes or
similar  instruments;
(c)     all  obligations  of  such  Person under conditional sale or other title
retention  agreements  relating  to  Property  purchased  by  such  Person;
(d)     all  obligations  of  such  Person  issued  or  assumed  as the deferred
purchase  price of Property or services (excluding obligations of such Person to
creditors  for  raw  materials,  inventory,  services  and supplies and deferred
payment  for services to employees and former employees incurred in the ordinary
course  of  such  Person's  business);
(e)     all  capital  lease  obligations;
(f)     all  obligations  of  others  secured  by any Lien on Property or assets
owned or acquired by such Person, whether or not the obligations secured thereby
have  been  assumed;
(g)     all  outstanding  letters  of  credit, surety bonds and currency swap or
similar  agreements  issued  for  the  account  of  such  Person;  and
(h)     all  guarantees  of  such  Person  for obligations of the type described
above.
"Business  Day"  means  any  day  which is neither a Saturday nor a Sunday nor a
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legal  holiday on which banks are authorized or required to be closed in Boston,
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Massachusetts  or  New  York,  New  York.
"Capital  Stock"  means  any  and all shares, interests, participations or other
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equivalents  of  or  interests  in  (however  designated) equity of the Company,
 --
including  any  preferred  stock,  but excluding any debt securities convertible
 --
into  such  equity  prior  to  such  conversion.
 --
"Change  in  Control  or  Sale"  of  the  Company  means:
 -----------------------------
     (a)     the  acquisition  by  any  Person  or "group" within the meaning of
Section  13(d)(3)  or 14(d)(2) of the Exchange Act (excluding, for this purpose,
the Company or its Subsidiaries, any employee benefit plan of the Company or its
Subsidiaries  which  acquires  beneficial  ownership of voting securities of the
Company,  or  the  Lender or its Affiliates) of beneficial ownership (within the
meaning  of  Rule  13d-3 promulgated under the Exchange Act) of more than 50% of
the  aggregate  voting  power of all classes of outstanding Voting Capital Stock
that  are  then outstanding or that are issuable upon the conversion or exercise
of  convertible  securities, options, warrants or rights of the Company that are
then outstanding; provided that any voting securities acquired directly from the
Company  by  an  underwriter  of  the  Company as part of an underwritten public
offering  of Capital Stock of the Company shall not be deemed to be beneficially
owned  by  such  underwriter  for  purposes  of  determining whether a Change in
Control  or  Sale  has  occurred;
(b)     Persons  who  constitute  all of the Directors of the Company, as of the
Closing  Date,  cease,  for  any  reason,  to  constitute at least a majority of
Directors  then  in  office,  provided  that  any  Person  becoming  a  director
subsequent  to the Closing Date whose election or nomination for election by the
Company's  stockholders  was  approved  by  a vote of at least a majority of the
incumbent  Directors  shall  be considered as though such Person were one of the
incumbent  Directors as of the Closing Date, provided, however, that there shall
be  excluded  from  this  clause  (b) any individual whose initial assumption of
office  occurred  as  a  result of an actual or threatened election contest with
respect  to  the  election or removal of Directors or other actual or threatened
election  contest  with respect to the election or removal of directors or other
actual  or  threatened solicitation of proxies or consents, by or on behalf of a
Person  other  than  the  Board  of  Directors;
(c)     the  consummation of a reorganization, merger or consolidation involving
the  Company, if the stockholders of the Company beneficially owning 100% of the
aggregate  voting  power  of  all  classes of Voting Capital Stock that are then
outstanding  or  that  are  issuable  upon conversion or exercise of convertible
securities,  options,  warrants  or rights that are then outstanding immediately
prior  to  such  reorganization,  merger,  or  consolidation do not, immediately
thereafter,  beneficially own more than 50% of the aggregate voting power of all
classes  of  Voting  Capital  Stock  that  are then outstanding or issuable upon
conversion  or  exercise  of convertible securities, options, warrants or rights
that  are  then  outstanding;  or
(d)     a  liquidation or dissolution of the Company (other than pursuant to the
United  States Bankruptcy Code) or the conveyance, transfer or leasing of all or
substantially  all  of  the  assets  of  the  Company  to  any  Person (it being
understood  that  any  conveyance,  transfer or leasing of assets of the Company
which  is submitted for the approval of the stockholders of the Company shall be
deemed  to  be  of  all  or  substantially  all  of the assets of the Company).
"Closing  Date"  means  January  2,  2001.
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"Collateral"  has  the  meaning  set  forth  in  the  Security  Agreement.
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"Common  Stock"  means  the  New  Common  Stock.
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"Company"  means  the  party  named  as  such  in the recitals until a successor
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replaces it pursuant to the applicable provision hereof and thereafter means the
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successor  to  such  party.
"Default"  means  any event which is, or after notice or passage of time or both
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would  be,  an  Event of Default (as defined in Article VIII of this Agreement).
"Demand  Date"  means  June  30,  2001,  subject to extension in accordance with
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Section  2.2  of  the  Fifth  Amendment.
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"Depositary  Agreement"  means the Depositary Agreement dated as of February 16,
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1999  by  and  among  the  Company, Alpharma USPD Inc. and State Street Bank and
Trust  Company,  as  Depositary,  as  amended.
"Derivative  Securities"  has  the  meaning  set forth in Section 3.3(a) of this
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Agreement.
 ---
"Encumbrance"  has  the  meaning  set forth in Section 3.4(a) of this Agreement.
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"Event  of  Default" has the meaning set forth in Section 8.1 of this Agreement.
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"Exchange  Act"  means  the  Securities  Exchange  Act  of  1934,  as  amended.
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"FDA"  means  the  United  States  Food  and  Drug  Administration.
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"Fifth  Amendment"  means  the  Fifth Amendment dated the date hereof to the May
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1998  Securities  Purchase  Agreement.
 --
"Financial  Statements"  has  the  meaning  set  forth in Section 3.7(a) of this
 ---------------------
Agreement.
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"First  Loan"  has  the  meaning  set  forth  in  Section 2.3 of this Agreement.
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"First  Loan  Date"  has the meaning set forth in Section 2.3 of this Agreement.
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"FS Investments/Alpharma Loan Agreement" shall mean the Loan Agreement dated the
 --------------------------------------
date  hereof,  by  and  between  Lender  and  Alpharma.
"GAAP"  means  U.S.  generally  accepted accounting principles as in effect from
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time  to  time.
 --
"Historical Financial Statements" has the meaning set forth in Section 3.7(a) of
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this  Agreement.
"Holder"  means  the Lender and any other Person to whom all or a portion of the
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Note  is  transferred  in  accordance  with  Article  IX  of  this  Agreement.
"Indebtedness"  means  and  includes:
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     (a)     all  items  which  in accordance with GAAP would be included on the
liability  side of a balance sheet on the date as of which Indebtedness is to be
determined  (excluding  capital  stock, surplus reserves and deferred credits);
     (b)     all  guaranties,  letter  of  credit,  contingent  reimbursement
obligations  and  other contingent obligations in respect of, or any obligations
to  purchase  or  otherwise  acquire,  indebtedness  of  others;  and
(c)     all  indebtedness  secured  by  any Lien existing on any interest of the
Person  with respect to which indebtedness is being determined in Property owned
subject  to such Lien whether or not the indebtedness secured thereby shall been
assumed.
"Investment"  means the purchase or other acquisition of any Indebtedness of, or
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the  making of any loan, advance or capital contribution to, or the incurring of
any  liability,  contingent or otherwise, in respect of the Indebtedness of, any
Person.
"Lien"  means  any  mortgage,  pledge,  charge,  encumbrance, security interest,
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collateral assignment or other lien or restriction of any kind, whether based on
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common  law,  constitutional  provision,  statute or contract, and shall include
reservations,  exceptions,  encroachments,  easements, rights of way, covenants,
conditions,  restrictions  and  other  title  exceptions.
"Loan"  means  any  borrowing  by the Company from the Lender of up to a maximum
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principal  amount  of $6,250,000 pursuant to Section 2.1 and the other terms and
 --
conditions  of  this  Agreement.
"Loan  Date"  has  the  meaning  set  forth  in  Section  2.3 of this Agreement.
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"Material  Adverse  Effect" means, when used in connection with the Company, any
 -------------------------
development,  change  or  effect  that  is  materially  adverse to the business,
Properties  (including,  without limitation, Intellectual Property), assets, net
worth,  financial  condition,  results  of  operations  or  future  prospects
(including,  without  limitation,  future  equity  value) of the Company and its
Subsidiaries  taken  as  a  whole.
"Maturity  Date" means December 31, 2001, provided, however, that the Lender, in
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its  sole  discretion, may extend such date one or more times, further, however,
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in  no  event  shall  the  Maturity  Date  be  later  than  June  30,  2002.
"May  1998 Securities Purchase Agreement" means the Series G Securities Purchase
 ---------------------------------------
Agreement  dated  as of May 13, 1998 by and among the Company and the Purchasers
named  in  Schedule  I  thereto.
"New  Common  Stock"  has  the  meaning  set  forth in the Depositary Agreement.
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"Note"  means  the  note  to  be issued by the Company to the Lender pursuant to
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Section  2.2(a)  of this Agreement, substantially in the form attached hereto as
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Exhibit  A,  evidencing  the  maximum  principal  amount  of the Loans; provided
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however,  that  in  the  event that the Lender transfers all or a portion of the
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Note in accordance with Article XI, all references to the Note in this Agreement
 --
shall be deemed to include the Notes issued by the Company upon such exchange or
transfer.
"Notice  of  Borrowing"  has  the  meaning  set  forth  in  Section  2.3 of this
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Agreement.
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"Officer"  means  the  Chairman of the Board, the President, any Vice President,
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the  Treasurer  or  the  Secretary  of  the  Company.
 -
"Permitted  Investments"  means:
 ----------------------
     (a)     readily  marketable  securities  issued  or fully guaranteed by the
United  States  of  America  with  maturities  of  not  more  than  one  year;
     (b)     commercial  paper  rated  "Prime  1" by Moody's Investors Services,
Inc. or "A-1" by Standard and Poor's Rating Services with maturities of not more
than  180  days;
(c)     certificates  of  deposit  or  repurchase obligations issued by any bank
organized  under  the  laws of the United States of America or any state thereof
having  capital  surplus  of  at  least  $100,000,000  or by any other financial
institution acceptable to the Requisite Holders, all of the foregoing not having
a  maturity  of  more  than  one  year  from  the date of issuance thereof; and
(d)     other Investments not exceeding, in the aggregate, $50,000 in any fiscal
year.
     "Permitted  Liens"  means  each  of  the  following:
      ----------------
     (a)     artisans'  or  mechanics'  Liens  arising in the ordinary course of
business, and Liens for taxes, but only to the extent that payment thereof shall
not  at  the  time  be  due  or  if due, the payment thereof is being diligently
contested  in  good faith and adequate reserves computed in accordance with GAAP
have  been  set  aside  therefor;
(b)     Liens  in  effect  on the First Loan Date and disclosed to the Lender in
the  Financial Statements, provided that neither the Borrowed Money Indebtedness
secured  thereby nor the Property covered thereby shall increase after the First
Loan  Date  without the prior written consent of the Requisite Holders, provided
that,  for purposes of this clause (b), the accrual of interest on such Borrowed
Money  Indebtedness,  so  long as it is not converted to principal, shall not be
deemed  to  increase  such  Borrowed  Money  Indebtedness;
(c)     normal  encumbrances  and  restrictions  on  title  which  do not secure
Borrowed  Money  Indebtedness and which do not have a material adverse affect on
the  value  or  utility  of  the  applicable  Property;
(d)     Liens  incurred  or deposits made in the ordinary course of business (i)
in  connection  with  workmen's  compensation,  unemployment  insurance,  social
security and other like laws, or (ii) to secure insurance in the ordinary course
of  business,  the  performance  of  bids, tenders, contracts, leases, licenses,
statutory  obligations,  surety,  appeal and performance bonds and other similar
obligations  incurred in the ordinary course of business, but not, in any of the
cases  specified  in this clause (ii), incurred in connection with the borrowing
of  money,  the obtaining of advances or the payment of the deferred purchase of
Property;
(e)     Liens  in  connection  with  or  to  secure  Borrowed Money Indebtedness
permitted  under  Section  7.1(c);
(f)     attachments,  judgments  and  other  similar Liens arising in connection
with  the court proceedings, provided that the execution and enforcement of such
Liens  are  effectively stayed and the claims secured thereby are being actively
contested  in  good faith with adequate reserve made therefor in accordance with
GAAP;
(g)     Liens  imposed  by  law,  such as carriers', warehousemen's, mechanics',
materialmen's  and  vendors' liens incurred in good faith in the ordinary course
of  business  and  securing obligations which are not yet due or which are being
contested  in  good  faith  by appropriate proceedings if adequate reserves with
respect  thereto  are  maintained  in  accordance  with  GAAP;
(h)     zoning  restrictions,  easements,  licenses,  reservations,  provisions,
covenants,  conditions,  waivers,  and  restrictions on the use of Property, and
which  do  not  in  any  case  singly  or in the aggregate materially impair the
present  use  or value of Property subject to any such restriction or materially
interfere  with  the  ordinary  conduct  of  the business of the Company and its
Subsidiaries,  if  any;
(i)     Liens  securing  purchase money Indebtedness permitted under Section 7.1
hereof  and  covering  only  the  Property  so  purchased;
(j)     capital leases and sale/leaseback transactions permitted under the other
provisions  of  this  Agreement;
(k)     extensions, renewals and replacements of Liens referred to in paragraphs
(a)  through  (j)  of this Section; provided that any such extension, renewal or
replacement Lien shall be limited to the Property or assets (and, in the case of
clause  (e),  categories  of  Property  or assets) covered by the Lien extended,
renewed or replaced and that the Borrowed Money Indebtedness secured by any such
extension,  renewal  or  replacement Lien shall be in an amount not greater than
the  amount  of  the  Indebtedness  secured  by  the  Lien  extended, renewed or
replaced;  and
(l)     the  Liens  created  by  the  Security  Agreement.
"Person"  means  any  individual,  corporation,  association,  company, business
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trust,  partnership,  joint  venture,  joint-stock  company,  limited  liability
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company,  trust, unincorporated organization or association or government or any
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agency  or  political  subdivision  thereof.
"Property"  means  any  interest in any kind of property or asset, whether real,
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personal  or  mixed,  tangible  or  intangible.
 -
"Requisite  Holders"  means  Holders of more than 50% of the aggregate principal
 ------------------
amount  of  the  Note  outstanding  at  any  time.
 -
"SEC"  means  the  United  States  Securities  and  Exchange  Commission.
 ---
"Securities  Act"  means  the  Securities  Act  of  1933,  as  amended.
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"Security  Agreement" means the Security Agreement dated the date hereof between
 -------------------
the  Company  and  the  Lender.
"Series G Preferred" means the Series G Convertible Exchangeable Preferred Stock
 ------------------
of  the  Company.
"Series  H  Preferred"  means  the  Series  H  Preferred  Stock  of the Company.
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"Subsidiary"  of a Person means any corporation, association, partnership, joint
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venture  or  other business entity of which more than fifty percent (50%) of the
voting  stock  or  other  equity  interests  (in  the case of Persons other than
corporations),  is  owned or controlled directly or indirectly by the Person, or
one  or  more  of  the  Subsidiaries  of  the  Person, or a combination thereof.
The  term  "to  the  knowledge  of" or derivatives thereof shall mean the actual
            ----------------------
knowledge  of  the  Chief  Executive  Officer  of  the  Company.
"Voting Capital Stock" means the Capital Stock entitled to vote generally in the
 --------------------
election  of  directors.
"Warrants"  means  the  Warrants  to purchase Depositary Shares (as such term is
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defined  in  the  Depositary  Agreement)  issued  or  to be issued to the Lender
 --
pursuant  to  the  Fifth  Amendment.
 --
"1934  Act  Filings" means the Annual Report on Form 10-K of the Company for the
 ------------------
fiscal  year  ended  December  31, 1999, the Quarterly Reports of the Company on
Form  10-Q  for each of the three months ended March 31, 2000, June 30, 2000 and
September 30, 2000 and any other reports or other documents filed by the Company
with  the  SEC  since  December  31,  1999  pursuant  to  the  Exchange  Act.
"2000  Financial Statements" has the meaning set forth in Section 3.7(a) of this
 --------------------------
Agreement.
"8%  Subordinated  Notes"  means  the  Company's  8%  Subordinated  Notes in the
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aggregate  principal  amount  of  $9,000,000  issued  pursuant  to  the May 1998
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Securities  Purchase  Agreement.
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1.2     Rules  of  Construction1.2     Rules  of  Construction.
     Unless  the  context  otherwise  requires:
a.     a  term  has  the  meaning  assigned  to  it;
b.     an  accounting  term not otherwise defined has the meaning assigned to it
in  accordance  with  GAAP;
c.     "or"  is  not  exclusive;
d.     words  in  the  singular include the plural and in the plural include the
singular;
e.     provisions  apply  to  successive  events  and  transactions;  and
f.     "herein",  "hereof"  and  other  words  of  similar  import refer to this
Agreement  as  a  whole  and  not  to  any  particular Article, Section or other
subdivision.
     ARTICLE IIARTICLE II1AMOUNT AND TERMS OF NOTESAMOUNT AND TERMS OF NOTES
2.1     COMMITMENT  TO  LEND;  LOANS2.1     Commitment  to Lend; Loans.  On the
terms  and  subject  to  the  conditions contained in this Agreement (including,
without limitation, Section 2.3(b) of this Agreement), the Lender agrees to make
one  or more Loans to the Company from time to time on any Business Day or after
January  2,  2001  and  on or prior to December 31, 2001.  The maximum principal
amount of Loans outstanding at any time shall not exceed $6,250,000 at any time.
Amounts  repaid pursuant to Sections 2.4(b), 2.5 or 2.6 may not be reborrowed by
the Company.  The Lender shall (i) have no obligation to make more than one Loan
in  any  one calendar month and (ii) have no obligation to make any Loans to the
Company  prior  to  January  2,  2001  or  after  December  31,  2001.
2.2     EVIDENCE  OF  DEBT2.2     Evidence  of  Debt.
(a)     On  the  First  Loan  Date  (as defined in Section 2.3(a)), Lender shall
receive  from  the  Company  the Note evidencing the maximum aggregate principal
amount  of  the  Loans.
(b)     There  shall  be  attached to the Note, and maintained by the Company, a
register  in which the Company shall, from time to time, record (i) the date and
amount  of  each  Loan  under the Note, (ii) the date and amount of any interest
payments  due  under the Note and (iii) the date and amount of any principal and
interest  payments  made by the Company under the Note.  The entries made in the
register by the Company shall be conclusive and binding for all purposes, absent
manifest  error.
2.3     MAKING  OF  LOANS2.3     Making  of  Loans.
(a)     The  Lender  agrees  to  make  each  Loan  upon  receipt  of a notice of
borrowing  in  the  form  of Exhibit B attached hereto (a "Notice of Borrowing")
specifying  the  amount  of the proposed Loan given by the Company to the Lender
not  later  than 10:00 am (New York time) on the tenth Business Day prior to the
date of the proposed Loan, except with respect to the first Loan hereunder which
shall  be  in  the  principal  amount of $2,000,000 (the "First Loan") and which
shall  be  made by the Lender to the Company on January 2, 2001 (the "First Loan
Date")  and  shall  be  made  without any requirement that the Company deliver a
Notice  of  Borrowing.  Subject  to  the terms and conditions of this Agreement,
upon  the  date  of  a  proposed  Loan  (a  "Loan  Date"), the Lender shall make
available  for  the  account  of  the  Company  in accordance with the bank wire
instructions  contained in such Notice of Borrowing, immediately available funds
in  the  amount  of  the Loan.  Each Loan shall be in an aggregate amount of not
less than $500,000 or a multiple of $100,000 in excess thereof and not more than
$1,000,000;  provided,  however,  the Loans requested in the months of February,
2001  and  March, 2001 may be in an aggregate amount of not more than $1,500,000
per  month.  Each  Notice of Borrowing shall be irrevocable and binding upon the
Company.  The  Company  shall  indemnify  the  Lender  against any loss, cost or
expense  including,  without  limitation, the cost of Lender funds on its credit
facilities,  incurred  by the Lender if a proposed Loan requested in a Notice of
Borrowing  is  not  made  by the Lender because the conditions precedent to such
Loan  as  set forth in Section 4.1 or 4.2 of this Agreement, as applicable, were
not  satisfied  or  waived.
(b)     Each  Notice  of  Borrowing shall describe the proposed use of proceeds,
and  shall  provide  sufficient  information  to  allow the Lender to reasonably
determine  that  the  proceeds of the requested Loan will be used as required by
Section  6.1.  The  Lender  shall have the reasonable opportunity to discuss the
proposed  use  of  proceeds  with  the  Company.
2.4     INTEREST AND PRINCIPAL PAYMENTS2.4     Interest and Principal Payments.
(a)     The Company shall accrue interest on the unpaid principal amount of each
Loan  from  the  date  of  the making thereof until the principal amount thereof
shall  be  paid  in full at a rate of 7.5% per annum.  Interest shall be due and
payable  by  the  Company with respect to each Loan quarterly, in arrears on the
last day of each of March, June, September and December.  All amounts paid shall
first  be  applied to any accrued but unpaid interest.  All payments required to
be  made  by  the Company under this Agreement shall be paid to the Lender to an
account  of  the  Lender  designated  to  the  Company  in  writing.
(b)     On  or  prior  to  the  Maturity  Date,  the Company may prepay all or a
portion  of  the  outstanding  principal  amount  of the Note, together with any
accrued  and unpaid interest thereon to the date of such prepayment, in its sole
discretion.  Unless  payment  is required prior to the Maturity Date pursuant to
the  terms  hereof,  the Company shall repay the outstanding aggregate principal
amount  of  the Note , together with any accrued and unpaid interest thereon, on
the  Maturity  Date.
(c)     If  any  required payment of principal or interest is not paid when due,
whether  at  stated  maturity,  by  acceleration or otherwise, the interest rate
applicable  to  the  amount  of  any  such  payment  shall be the 7.5% per annum
provided  above  plus  an  additional  2%  per  annum,  all  payable on demand.
2.5     MANDATORY  PREPAYMENT  UPON  CHANGE IN CONTROL OR SALE2.5     Mandatory
Prepayment upon Change in Control.  The Company shall give all Holders notice of
any  Change  in Control or Sale with respect to the Company within 10 days after
the  earlier of (i) the date of such Change in Control or Sale, (ii) the date on
which  the  Company  becomes  aware  of such Change in Control or Sale and (iii)
approval by the Board of Directors of, or execution of any executory contract or
binding  or non-binding letter of intent with respect to, a Change in Control or
Sale.  Upon  any such Change in Control or Sale, any Holder shall have the right
at  its  option  exercisable  upon  written notice to the Company within 15 days
after  the  Holder receives notice of such Change in Control or Sale, to require
the  Company  to  prepay all of the outstanding amounts of principal and accrued
and unpaid interest under the Note held by such Holder.  The payment required by
the preceding sentence shall be made on the later of (i) the consummation of the
Change  in  Control  or  Sale  or (ii) first Business Day after the date of such
notice  from such Holder.  Following a Change in Control or Sale with respect to
the  Company,  the  Lender  shall  have  no  further  obligations to make Loans.
2.6     MANDATORY  PREPAYMENT  UPON  DEMAND2.6     Mandatory  Prepayment  Upon
Demand
(a)     On  or at any time after the Demand Date, Holders of at least 80% of the
outstanding  Notes  may, at their option exercisable upon 30 days' prior written
notice  (which  may  be  given prior to the Demand Date), require the Company to
prepay  all  of  the  outstanding  amounts  of  principal and accrued and unpaid
interest  under  the  Notes.
(b)     The  Demand  Date  may  be  extended  at  the  option  of the Company in
accordance  with  Section  2.2  of  the  Fifth  Amendment.
2.7     FS  INVESTMENTS/ALPHARMA  LOAN  AGREEMENT.
(a)     In the event that (i) the Company completes the procedures enumerated in
Article 2 hereof to request a Loan and has fulfilled all conditions to such Loan
and  (ii)  the  Lender  fails  to  request  a  Loan for the corresponding amount
pursuant  to the terms of the FS Investments/Alpharma Loan Agreement within five
Business  Days thereof, the Company may submit a Notice of Borrowing pursuant to
Section  2.5  of  the  FS Investments/Alpharma Loan Agreement and shall have the
option  to  enforce  any  remedies  possessed  by the Lender (as defined in this
Agreement)  under  the  FS  Investments/Alpharma  Loan  Agreement.
(b)     In  the event that (i) the Lender completes the procedures enumerated in
Article 2 of the FS Invesments/Alpharma Loan Agreement to request a Loan and has
fulfilled  all  conditions  to such Loan and (ii) Alpharma fails to deliver such
Loan  on  the  Loan  Date  (as  defined  in  the  FS  Investments/Alpharma  Loan
Agreement),  then  the  Company  shall  have  the option to enforce any remedies
possessed  by  the  Lender  (as  defined  in  this  Agreement)  under  the  FS
Investments/Alpharma  Loan  Agreement.
           ARTICLE IIIARTICLE III1REPRESENTATIONS AND WARRANTIES OF THE
              COMPANYREPRESENTATIONS AND WARRANTIES OF THE COMPANY
The  Company  represents  and  warrants  to  the  Lender  as  follows:
3.1     ORGANIZATION  AND  EXISTENCE,  ETC.3.1     Organization  and Existence,
etc.  The  Company  (a)  is  duly  incorporated,  validly  existing  and in good
standing  under  the  laws of the State of Delaware, and has all requisite power
and  authority  to  carry on its business as now conducted and as proposed to be
conducted, and (b) is duly qualified to do business as a foreign corporation and
is  in  good  standing  (or the equivalent thereof under applicable law) in each
jurisdiction in which the conduct of its business requires such qualification by
reason  of  the  ownership or leasing of property or otherwise (except for those
jurisdictions  in  which  the  failure  so  to  qualify does not have a Material
Adverse  Effect).
3.2     CAPITALIZATION3.2     Capitalization.
(a)     After  giving  effect to the Fifth Amendment, on the date hereof (i) the
Company's authorized Capital Stock consists of:  (A) 60,000,000 shares of Common
Stock,  of  which  9,781,814 shares are issued and outstanding and (B) 5,000,000
shares  of "blank check" preferred stock, $.01 par value per share, of which (1)
7,000  shares  have  been designated Series G Convertible Exchangeable Preferred
Stock,  all of which shares were exchanged for 8% convertible subordinated notes
of the Company on July 23, 1999 and (2) 4,000 shares have been designated Series
H  Preferred Stock and (ii) the Company has outstanding the securities set forth
on  Schedule  3.2  attached  hereto which are convertible into or exercisable or
exchangeable  for  Depositary  Shares  (the  "Derivative  Securities").
(b)     All  the  issued  and outstanding shares of Capital Stock of the Company
are  validly  issued, fully paid, non-assessable, free of preemptive and similar
rights  and  have  been  offered,  issued,  sold and delivered by the Company in
transactions  in  compliance  with  the  applicable  federal,  state and foreign
securities laws.  Other than as set forth in Schedule 3.2 attached hereto, there
are  no  outstanding  agreements  or  commitments requiring the Company to issue
Capital  Stock  or  Derivative  Securities  as  of  the  date  hereof.
3.3     AUTHORIZATION;  BINDING  OBLIGATIONS3.3     Authorization;  Binding
Obligations.
(a)     The  Company  has  full  power and authority to execute and deliver this
Agreement,  the  Note  and  the  Security  Agreement  and  such  other documents
furnished or to be furnished by the Company hereunder.  This Agreement, the Note
and  the Security Agreement have been duly authorized, executed and delivered by
the  Company  and  each  constitutes a legal, valid and binding agreement of the
Company,  enforceable  against  the  Company  in  accordance with its respective
terms,  subject  to  bankruptcy,  insolvency,  reorganization  and other laws of
general  applicability relating to or affecting creditors' rights and to general
principles  of equity.  The issuance, offering and sale of the Notes pursuant to
this  Agreement  and  the  compliance by the Company with the provisions of this
Agreement  and  the  Note,  and  the  consummation  of  the  other  transactions
contemplated  hereby  or  thereby  (except  as  contemplated  by  the  Security
Agreement),  will  not result in the creation or imposition of any Lien, charge,
security  interest  or encumbrance (collectively, "Encumbrance") upon any of the
assets  of  the  Company  pursuant to the terms or provisions of, or result in a
breach  or  violation  of or conflict with any of the terms or provisions of, or
constitute  a default under, or give any other party a right to terminate any of
its  obligations  under,  or result in the acceleration of any obligation under,
(i)  the  Certificate  of  Incorporation  and  Bylaws  of  the Company, (ii) any
contract  or  other  agreement  to  which the Company is a party or by which the
Company  or  any of its properties is bound (other than the Loan Agreement dated
February  16,  1999  among  the Company, Alpharma and Alpharma Inc., which shall
terminate  on  the  date  hereof)  or (iii) any judgment, ruling, decree, order,
statute,  rule  or regulation of any court or other governmental agency or body,
domestic  or  foreign,  applicable to the business or Properties of the Company,
except,  with  respect  to clauses (ii) and (iii), circumstances that would not,
individually  or  in  the  aggregate,  reasonably be expected to have a Material
Adverse  Effect.
(b)     The  Note has been duly authorized for issuance.  When the Note has been
duly  executed  and  delivered by the Company in accordance with this Agreement,
the Note will constitute the valid and legally binding obligation of the Company
enforceable  against  the  Company  in  accordance  with  its  terms, subject to
bankruptcy,  insolvency,  reorganization and other laws of general applicability
relating to or affecting creditors' rights and to general principles of equity.
3.4     COMPLIANCE  WITH  INSTRUMENTS, ETC.3.4     Compliance with Instruments,
etc.  Except  as  set forth on Schedule 3.4 hereto, the Company is not in breach
or  violation  of,  or  in  default  under,  any  term  or  provision of (i) its
Certificate  of  Incorporation and Bylaws, (ii) any indenture, mortgage, deed of
trust,  voting  trust  agreement,  stockholders  agreement, note agreement, debt
instrument  or  other agreement or instrument to which it is a party or by which
it  is  bound  or  to  which any of its Property is subject, the effect of which
breach, violation or default, individually or in the aggregate, would reasonably
be  expected  to have a Material Adverse Effect, or (iii) any statute, judgment,
decree,  order,  rule  or  regulation  applicable  to  the  Company  or  of  any
arbitrator,  court,  regulatory  body,  administrative  agency  or  any  other
governmental  agency  or body, domestic or foreign, having jurisdiction over the
Company  or  any  of  its  respective activities or properties and the effect of
which  breach,  violation  or  default,  individually or in the aggregate, would
reasonably  be  expected  to  have  a  Material  Adverse  Effect.
3.5     LITIGATION3.5     Litigation.  Except  as  set  forth  on  Schedule 3.5
hereto,  there are no actions, suits, proceedings or investigations pending, or,
to  the  knowledge  of the Company, threatened, against the Company before or by
any  court,  regulatory  body or administrative agency or any other governmental
agency  or  body,  domestic  or  foreign,  which  would,  individually or in the
aggregate,  reasonably  be  expected  to  have a Material Adverse Effect, or any
actions,  suits,  proceedings or investigations pending, or, to the knowledge of
the Company, threatened, which challenges the validity of any action taken or to
be taken pursuant to or in connection with this Agreement or the issuance of the
Note  which  would,  individually or in the aggregate, reasonably be expected to
have  a  Material  Adverse  Effect.
3.6     OFFERING3.6     Offering.  Subject  to  Lender's  representations  and
warranties  in  Section  11.9,  the  offer, sale and issuance of the Note to the
Lender  as  contemplated  by  this  Agreement is not subject to the registration
requirements  of  the Securities Act , and neither the Company nor anyone acting
on  its  behalf,  has  taken  or  will  take  any  action  that would cause such
registration  requirements  to  be  applicable.
3.7     PERMITS;  GOVERNMENTAL AND OTHER APPROVALS3.7     Permits; Governmental
and  Other  Approvals.  Except  as set forth in Schedule 3.7 hereto, the Company
has such licenses, permits, consents, orders, approvals and other authorizations
necessary  for  the conduct of its business as now being conducted, except where
the  absence  of  such  authorizations would not have a Material Adverse Effect.
Other  than  pursuant  to  Agreements with Alpharma which shall terminate on the
date  hereof,  no  approval,  consent,  authorization  or other order of, and no
designation,  filing,  registration,  qualification  or  recording  with,  any
governmental  authority,  domestic  or  foreign,  is  required for the Company's
performance  of  this  Agreement  or  the  consummation  by  the  Company of the
transactions  contemplated  hereby  except  for  the  filing of a Certificate of
Designation with respect to the Series H Preferred Stock, the filing of a Form D
under  the  Securities  Act, the filing of one or more Reports on Form 8-K under
the  Exchange  Act and the filing of a UCC-1 concerning the Collateral under the
Security  Agreement.
3.8     FORM  10-K  AND  10-Q3.8     Form  10-K and 10-Q.  The Annual Report on
Form  10-K  of  the  Company  for  the  fiscal year ended December 31, 1999, the
Quarterly  Reports  on  Form  10-Q  for each of the three months ended March 31,
2000,  June  30, 2000 and September 30, 2000, complied or will comply as to form
in  all  material  respects with the applicable requirements of the Exchange Act
and  did  not,  as of the date of such filing, contain any untrue statement of a
material  fact  or  omit to state a material fact necessary in order to make the
statements made therein, in the light of the circumstances under which they were
made,  not  misleading.
3.9     PRIORITY3.9     Priority.  The  security  interest  under  the Security
Agreement  is a valid and perfected security interest in the Collateral referred
to therein, securing the obligations secured thereby, and such security interest
is  subject  to  no  Liens that are prior to, on a parity with or junior to such
Security  Interest  other  than  Permitted Liens , and the Security Agreement is
enforceable  as  security for the obligations secured thereby in accordance with
its terms against the Company, subject to bankruptcy, insolvency, reorganization
and  other  laws  of  general  applicability relating to or affecting creditors'
rights  and  to  general  principles  of  equity.
     ARTICLE IVARTICLE IV1CONDITIONS OF OBLIGATIONS OF THE LENDERCONDITIONS OF
                            OBLIGATIONS OF THE LENDER
4.1     CONDITIONS  TO  LENDER'S  OBLIGATIONS  ON  THE  FIRST  LOAN  DATE4.1
Conditions  to  Lender's  Obligations on the First Loan Date.  The obligation of
the  Lender  to  make  the  First  Loan  is  subject  to  the fulfillment to its
reasonable  satisfaction,  or  the waiver in writing by the Lender, on the First
Loan  Date  of  each  of  the  following  conditions:
(a)     Representations  and  Warranties  Correct.  The  representations  and
        -----------------------------------------
warranties of the Company in Article III hereof shall be (x) true and correct on
and  as  of the date hereof and (y) true and correct in all material respects on
and as of the First Loan Date with the same force and effect as if they had been
made  on and as of the First Loan Date, except in the case of clause (y) for (i)
those  representations  and  warranties  which  address  matters  only  as  of a
particular  date  (which  shall  be  true  and correct as of such date) and (ii)
circumstances  in which the failure of such representations and warranties to be
true  and  correct  would  not,  individually or in the aggregate, reasonably be
expected  to  have  a  Material  Adverse  Effect.
(b)     Compliance  Certificate.  The Company shall have delivered to the Lender
        -----------------------
a  certificate of the Company's President, dated the First Loan Date, certifying
to  the  fulfillment  of  the conditions specified in subsections (a) and (e) of
this  Section  4.1.
(c)     No  Impediments.  No  statute,  judgment,  order or decree of any court,
        ---------------
regulatory  body, administrative agency or any other governmental agency or body
shall  be in effect which would impose any material limitation on the ability of
the  Lender  to  exercise  full  rights  of  ownership  of  the  Notes.
(d)     No  Defaults.  The  Company shall not be in default under any indenture,
        ------------
mortgage, agreement, instrument or commitment evidencing or under which there is
at  the  time  outstanding any Indebtedness of the Company or any Subsidiary, in
excess  of  $200,000,  or  which  results  in such Indebtedness, in an aggregate
amount  (with  other  defaulted Indebtedness) in excess of $200,000 becoming due
and  payable  prior  to  its  due  date.
(e)     No  Material  Adverse  Events.  Except  as  set  forth  in the schedules
        -----------------------------
attached  hereto  pursuant  to  Article III hereof, as disclosed in the 1934 Act
Filings  filed with the SEC prior to the date hereof or as set forth in Schedule
4.1(e)  hereto,  since  September  30,  2000,  there shall have been no Material
Adverse  Effect with respect to the Company (other than the continued incurrence
of  losses  in  the  ordinary  course  of  business).
(f)     Legal  Investment.  The  purchase  of  the  Note by the Lender hereunder
        -----------------
shall  be  legally permitted by all statutes, rules and regulations to which the
Lender  and  the  Company  are  subject.
(g)     Qualifications.  All  authorizations,  approvals  or permits, if any, of
        --------------
any  governmental  authority  or  regulatory  body  that  are  now  required  in
connection  with  the  lawful  issuance  and  sale  of the Note pursuant to this
Agreement  shall have been duly obtained and shall be in full force and effect.
(h)     Issuance Taxes.  All taxes imposed by law in connection with the initial
        --------------
issuance,  sale  and  delivery  of  the  Note  shall have been fully paid by the
Company, and all laws imposing such taxes shall have been fully complied with at
the  time  of  such  issuance.
(i)     Proceedings and Other Documents.  All corporate and other proceedings in
        -------------------------------
connection  with the transactions contemplated by this Agreement shall have been
taken,  and  the Lender shall have received such other documents and instruments
in  form and substance reasonably satisfactory to it and its counsel, as to such
other  matters  incident  to  the  transaction  contemplated  hereby  as  it may
reasonably  request.
(j)     Opinion  of Counsel.  The Lender shall have received the opinion of Hale
        -------------------
and  Dorr LLP, counsel for the Company, dated the First Loan Date, substantially
with  respect  to  the  matters  set  forth  on  Exhibit  C  attached  hereto.
(k)     Consents, Waivers, Etc.  The Company shall have obtained all consents or
        ----------------------
waivers  necessary  to  execute  and  deliver this Agreement, issue the Note and
carry  out  the  transactions  contemplated  hereby  and  thereby,  and all such
consents  and  waivers  shall be in full force and effect except for shareholder
approval.
(l)     Alpharma  Arrangements.  The  following  events  shall  have  occurred:
        ----------------------
(A)     each  of  the  Company  and Alpharma shall have executed and delivered a
Product  Purchase  Agreement  relating  to  the  Feverall  product,  in form and
substance  satisfactory  to  the  Lender,  and  Alpharma shall have acquired the
Feverall  product  pursuant  to  such  Product  Purchase  Agreement;  and
(B)     Each  of  the  Company  and Alpharma shall have executed and delivered a
Termination  Agreement,  in  form  of  substance  satisfactory  to  the Lender.
(m)     Delivery.  The  Company shall have delivered to the Lender (i) the Note,
        --------
(ii)  the  Security  Agreement,  (iii)  and  the  following:
(A)     a  certified  copy of the Company's Certificate of Incorporation and all
amendments  thereto,  certified  as  being  true  by  a principal Officer of the
Company;
(B)     a  copy  of the Company's Bylaws, as amended to date, certified as being
true  by  a  principal  Officer  of  the  Company;  and
(C)     a  certificate  of good standing of the Company as a foreign corporation
certified  as  of a recent date by the Secretary of State of the Commonwealth of
Massachusetts,  and from every jurisdiction in which the Company is qualified to
do  business.
(D)     a  signed  UCC-1 covering the Collateral (as such term is defined in the
Security  Agreement)
4.2     CONDITIONS  PRECEDENT  TO EACH LOAN4.2     Conditions Precedent to Each
Loan.  The  obligation  of the Lender to make any Loan other than the First Loan
is  subject  to the fulfillment to its reasonable satisfaction, or the waiver by
the  Lender,  on  or  prior to the applicable Loan Date of each of the following
conditions:
(a)     The conditions set forth in subsections (c), (d), (f) and (g) of Section
4.1  remain  fulfilled  or  waived  by  Lender.
(b)     No  event  has occurred and is continuing, or would result from the Loan
being  made  on  such date, which constitutes a Default or an Event of Default.
(c)     The  Lender  shall be reasonably satisfied that the proceeds of the Loan
being  made  will  be  used  as  set  forth  in  Section  6.1.
4.3     COOPERATION4.3     Cooperation.  The  Lender  shall take all reasonable
steps and use all reasonable efforts necessary or desirable, and shall cooperate
with  the  Company  to  enable  it,  to  obtain, as promptly as practicable, all
approvals,  authorizations,  certificates,  consents  and clearances required to
consummate  the  transactions contemplated hereby and satisfy the conditions set
forth  in  Sections  4.1  and  4.2.
                                    ARTICLE V

                        ARTICLE V1[Intentionally Omitted]

  ARTICLE VIARTICLE VI1AFFIRMATIVE COVENANTS OF THE COMPANYAFFIRMATIVE COVENANTS
                                 OF THE COMPANY
     Subject  to  Section  6.3  hereof, the Company hereby covenants and agrees:
6.1     USE  OF PROCEEDS6.1     Use of Proceeds.  The Company shall use all the
proceeds received from the Loans for (a) general working capital purposes or (b)
the  payment  of  legal  fees  and disbursements, accounting fees and investment
banking  fees  and  other  fees  and  expenses  incurred  in connection with the
transactions  contemplated  by this Agreement.  Pending the Company's use of the
proceeds  as  set  forth  herein,  the Company shall invest all Loan proceeds in
Permitted  Investments  consisting  exclusively  of  such  proceeds.
6.2     FURTHER  ASSURANCES6.2     Further  Assurances.  From  time to time the
Company  shall  execute  and  deliver  to  Lender  such  other  instruments,
certificates,  agreements  and  documents  and take such other action and do all
other  things  as may be reasonably requested by Lender in order to implement or
effectuate  the  terms  and  provisions  of  this  Agreement.
6.3     TERMINATION6.3     Termination.  The  covenants  and  agreements of the
Company set forth in this Article VI  shall terminate and be of no further force
or effect at such time as no principal or interest on the Note is outstanding or
payable  (whether  as  a  result of the payment of all outstanding principal and
accrued  interest  on  the Note) and no amounts may be borrowed pursuant to this
Agreement.
6.4     STRATEGIC TRANSACTION6.4     Strategic Transaction.  Promptly following
the date hereof, the Company shall seek to engage an investment bank, commercial
bank, business broker or comparable entity to assist the Company in consummating
a  strategic  transaction  with  a  third  party,  it  being understood that the
consummation of any strategic transaction shall be in the sole discretion of the
Company.
           ARTICLE VIIARTICLE VII1NEGATIVE COVENANTSNEGATIVE COVENANTS
     Subject  to  Section  7.14  hereof, the Company hereby covenants and agrees
that it will not, will not agree to and will not suffer or permit any Subsidiary
of  the Company to, do any of the following without the consent of the Requisite
Holders:
7.1     BORROWED  MONEY  INDEBTEDNESS7.1     Borrowed  Money  Indebtedness.
Create,  incur,  suffer or permit to exist, or assume or guarantee, or become or
remain  liable  with  respect  to  any  Borrowed  Money Indebtedness, except the
following:
     (a)     the  Note;
(b)     the  Borrowed  Money Indebtedness existing on the date of this Agreement
and  disclosed  in  the  Financial  Statements, and all renewals, extensions and
replacements  (but  not  increases)  of  any of the foregoing, provided that the
accrual  of  interest  on  such  liabilities,  so long as it is not converted to
principal,  shall  not  be  deemed  to  increase  such  liabilities;
(c)     purchase  money  Indebtedness  permitted  by  Section 7.10 to the extent
liens  securing the same are allowed by the other provisions of this Agreement;
(d)     capitalized  lease obligations to the extent leases with respect thereto
are  allowed  by  the  other  provisions  of  this  Agreement;  and
(e)     the  convertible  notes  issued  pursuant  to  the  May  1998 Securities
Purchase  Agreement.
(f)     additional principal of up to $500,000 of Borrowed Money Indebtedness in
the  aggregate  outstanding  at  any  time;
7.2     LIENS7.2     Liens.  Create or suffer to exist any Lien upon any of its
Property  now  owned  or  hereafter  acquired,  or acquire any Property upon any
conditional  sale or other title retention device or arrangement or any purchase
money  security  agreement; provided, however, that the Company any Subsidiaries
of  the  Company  may  create  or  suffer  to  exist  Permitted  Liens.
7.3     CONTINGENT  LIABILITIES7.3     Contingent  Liabilities.  Directly  or
indirectly  guarantee  the  performance  or  payment or, or purchase or agree to
purchase,  or assume or contingently agree to become or be secondarily liable in
respect  of,  any  obligation  or  liability  of  any  other  Person except for:
(a)     the  endorsement  of  checks  or  other  negotiable  instruments  in the
ordinary  course  of  business;
(b)     obligations  disclosed  to  Lender  in the Financial Statements (but not
increases  of  such  obligations  after  the  First Loan Date, provided that the
accrual  of  interest  on  such  obligations,  so long as it is not converted to
principal,  shall  not  be  deemed  to  increase  such  obligations);
(c)     obligations  in  respect of employees for continued service as evidenced
by  written  agreements with the Company as of the date of this Agreement; and
(d)     those  liabilities  permitted  under  Section  7.1  hereof;  and
(e)     customary  contractual  indemnity  obligations in the ordinary course of
business.
7.4     MERGERS,  CONSOLIDATIONS AND DISPOSITIONS AND ACQUISITIONS OF ASSETS7.4
Mergers,  Consolidations  and  Dispositions  and Acquisitions of Assets.  In any
single  transaction  or  series of related transactions, directly or indirectly:
     (a)     liquidate  or  dissolve;
(b)     be a party to any merger or consolidation unless (i) no Default or Event
of Default has occurred that is then continuing; (ii) immediately thereafter and
giving effect thereto, no event will occur and be continuing which constitutes a
Default;  (iii) the Company, or the Subsidiary, if any, is the surviving Person;
and  (iv)  the  Holders are given at least twenty (20) days prior notice of such
merger  or  consolidation  or  such  lesser  number  of days as is practicable;
(c)     sell, convey or lease all or substantially all of its assets, except for
the  sale  of  property  in  the  ordinary  course  of  business;  or
(d)     pledge,  transfer  or otherwise dispose of any equity interest in any of
its  Subsidiaries,  if any exist, or issue or permit any of its Subsidiaries, if
any  exist,  to  issue  any additional equity interests except to the Company or
another  of  its  Subsidiaries.
Notwithstanding  the foregoing, (i) nothing in this Agreement shall prohibit the
Company  from selling obsolete equipment or from replacing used equipment in the
ordinary  course of business and (ii) the Company may undertake a transaction of
the  character  contemplated  by  clauses  (b)  or  (c)  if, after giving effect
thereto,  the  consideration  from  such  transaction  that would be paid to the
holders  of  the  Company's Depositary Shares for each Depositary Share (whether
directly  from the acquiror or by distribution by the Company) would exceed $.10
per Depositary Share (subject to appropriate adjustments for stock splits, stock
dividends,  reclassifications,  or  similar  recapitalizations  affecting  the
Depositary  Shares).
7.5     REDEMPTION,  DIVIDENDS  AND  DISTRIBUTIONS7.5     Redemption, Dividends
and  Distributions.  At  any time, except as contemplated by this Agreement, the
terms  of  the  Note, by the Series H Preferred: (a) redeem, retire or otherwise
acquire,  directly  or  indirectly, any equity interest of the Company or any of
its  Subsidiaries  (other  than  $250,000  in  any  fiscal  year  to  be used to
effectuate  the repurchase of restricted stock issued to employees, directors or
consultants of the Company pursuant to a restricted stock agreement) or (b) make
any  distributions  of  any  property  or  cash in respect of any of its Capital
Stock.
7.6     NATURE OF BUSINESS7.6     Nature of Business.  Change the nature of its
business  or  enter  into any business which is substantially different from the
development,  manufacture  and  sale  of  pharmaceuticals  principally  for  the
pediatric  market.
7.7     TRANSACTIONS  WITH  RELATED  PARTIES7.7     Transactions  with  Related
Parties.  Enter  into any transaction or agreement with any Officer, director or
beneficial  owner  of five percent (5%) or more of the outstanding Capital Stock
in  the Company or any of its Subsidiaries (or any Affiliate of any such Person)
unless  the  transaction  is  upon  no  less favorable terms than those that are
obtainable  from  wholly  unrelated sources.  The provisions of this Section 7.7
shall  not  apply  to  (a)  fees  and compensation (including options and equity
compensation)  paid  to  or indemnity provided on behalf of Officers, directors,
employees  or  consultants  of  the  Company  and  any  of  its Subsidiaries, as
determined  by the Board of Directors of the Company or any of such Subsidiaries
or  the  Chief  Executive  Officer  thereof  in  good faith and (b) transactions
exclusively  between  or  among  the  Company's  Subsidiaries,  provided  such
transactions  are  not  otherwise prohibited by this Agreement.  Notwithstanding
the  prior  two sentences, the Company may not pay management or consulting fees
to  such  related  parties  in  excess  of  an  aggregate  of  $50,000 per year.
7.8     LOANS  AND  INVESTMENTS7.8     Loans  and  Investments.  Make any loan,
advance,  extension  of  credit  or capital contribution to, or make or have any
Investment  in, any Person, or make any commitment to make any such extension of
credit  or  investment,  except  (a)  Permitted  Investments,  (b)  normal  and
reasonable  advances  in  the  ordinary  course  of  business  to  Officers  and
employees.
7.9     ORGANIZATIONAL  DOCUMENTS7.9     Organizational  Documents.  Amend,
modify, restate or supplement its Certificate of Incorporation or Bylaws if such
action could reasonably be expected to adversely affect the rights of the Lender
under  this  Agreement.
7.10     LEASE  EXPENSES;  PURCHASE  MONEY INDEBTEDNESS7.10     Lease Expenses;
Purchase  Money  Indebtedness.  Permit  aggregate  operating  lease  expenses
(excluding  lease  payments  under  capital  leases),  for  the  Company and its
Subsidiaries  in the aggregate in any fiscal year, to exceed $500,000.  Incur or
create  new  capital  lease  obligations  or  purchase money Indebtedness in any
fiscal  year  in  excess  of  $200,000  in the aggregate for the Company and its
Subsidiaries.  Permit  aggregate  capital  lease  obligations and purchase money
Indebtedness  outstanding  at any one time to exceed $2,000,000 in the aggregate
for  the  Company  and  its  Subsidiaries.
7.11     SALE/LEASEBACKS7.11     Sale/Leasebacks.  Enter  into  any
sale/leaseback  transactions except as permitted under the provisions of Section
7.10.
7.12     ISSUANCE  OF  STOCK7.12     Issuance  of  Stock.  On  or  prior to the
Maturity  Date,  issue,  or become obligated to issue shares of Capital Stock or
securities  convertible  into  Capital  Stock,  except  for (i) shares of Common
Stock,  (ii) rights, warrants or options  to purchase shares of Common Stock and
(iii) Series H Preferred.  Prior to the Maturity Date, establish a "Shareholders
Rights  Plan"  or "Poison Pill" or issue any securities in connection therewith.
7.13     SUBSIDIARIES7.13     Subsidiaries.  Form,  create  or  acquire  any
Subsidiary.
7.14     TERMINATION7.14     Termination.  The  covenants and agreements of the
Company set forth in this Article VII shall terminate and be of no further force
or effect at such time as no principal or interest on the Note is outstanding or
payable  (whether  a  result  of  the  payment  of all outstanding principal and
accrued  interest  on the Note or the conversion of the Note) and no amounts may
be  borrowed  pursuant  to  this  Agreement.
       ARTICLE VIIIARTICLE VIII1DEFAULTS AND REMEDIESDEFAULTS AND REMEDIES
8.1     EVENTS  OF  DEFAULT8.1     Events  of  Default.  An  "Event of Default"
occurs  if:
(a)     the  Company  defaults  in  the payment of interest on the Note when the
same  becomes  due  and  payable  and  such  default continues for a period of 5
Business  Days;
(b)     the  Company  defaults  in the payment of the principal of the Note when
the  same  becomes  due  and  payable at the Maturity Date, upon acceleration or
otherwise;
(c)     the  Company  defaults in the performance of any covenants under Article
VII  of  this  Agreement;
(d)     the Company fails to comply with any of the provisions of this Agreement
(other  than Article VII) or the Security Agreement or breaches a representation
or  warranty  in the Security Agreement and such failure or breach continues for
20  Business  Days after notice from Holders of at least eighty percent (80%) of
the  aggregate  principal  amount  outstanding  under  the  Notes;
(e)     the  Company  defaults in payment on Borrowed Money Indebtedness (giving
effect  to  any applicable grace periods and any extensions thereof) of at least
$700,000  principal  amount;
(f)     there  has  been  an  acceleration  of  the final stated maturity of any
Borrowed  Money  Indebtedness  of the Company (which acceleration shall not have
been cured, waived, rescinded or annulled for 10 Business Days) if the aggregate
principal  amount  of  such  Borrowed  Money  Indebtedness,  together  with  the
principal  amount  of  any other such Borrowed Money Indebtedness in default for
failure  to  pay principal at maturity or which has been accelerated, aggregates
$700,000  or  more  at  any  time;
(g)     any representation or warranty of the Company under this Agreement shall
prove  to  have  been  incorrect  in  any  material  respect  when  made  or the
representations  and  warranties  contained in Section 3.9 shall be incorrect at
any  time  during  the  term  of  this  Agreement;
(h)     there  exists  an  outstanding  unsatisfied final judgment which, either
alone or together with other outstanding unsatisfied final judgments against the
Company,  exceeds  an  aggregate  of  $200,000  (to  the  extent  not covered by
insurance)  and  such judgment shall have continued undischarged or unstayed for
20  Business  Days  after  entry  thereof;
     (i)     the  Company,  pursuant  to or within the meaning of any Bankruptcy
Law:
     (i)     commenced  a  voluntary  case;
(ii)     consents  to  the  entry  of  an  order  for  relief  against  it in an
involuntary  case;
(iii)     consents  to  the  appointment  of  a  custodian  of  it or for all or
substantially  all  of  its  property;  or
     (iv)     makes  a  general assignment for the benefit of its creditors; or
(j)     a  court  of  competent jurisdiction enters an order or decree under any
Bankruptcy  Law  that:
     (i)     is  for  relief  against  the  Company  in  an  involuntary  case;
(ii)     appoints a custodian of the Company for all or substantially all of its
property;  or
(iii)     orders the liquidation of the Company, and the order or decree remains
unstayed  and  in  effect  for  90  consecutive  days.
8.2     ACCELERATION8.2     Acceleration.  If an Event of Default occurs and is
continuing,  the  Holders  of  at  least  eighty  percent (80%) of the aggregate
principal  amount  outstanding  under  the  Notes  by notice to the Company, may
declare  the  principal  of  and  any accrued interest on the Note to be due and
payable.  Upon  such  declaration  such  principal and interest shall be due and
payable  immediately.  If an Event of Default specified in Section 8.1(i) or (j)
occurs,  all  unpaid principal and accrued interest on the Note then outstanding
shall  ipso  facto  become  and  be  immediately  due  and  payable  without any
       ----  -----
declaration  or  other  act  on  the  part  of  any  Holder.
      ---
8.3     OTHER  REMEDIES8.3     Other  Remedies.  Notwithstanding  any  other
provision  of  this  Agreement, if an Event of Default occurs and is continuing,
Holders  of  at  least  eighty  percent  (80%) of the aggregate principal amount
outstanding under the Notes may pursue any available remedy by proceeding at law
or  in  equity to collect the principal of or interest then due on the Note held
by  such  Holders.  Without  limiting the foregoing, the Company, the Lender and
any  other  Holder  acknowledge  and  agree  that the respective remedies of the
Company,  the  Lender  and  any  other  Holder at law for a breach or threatened
breach  of  any  of the provisions of this Agreement would be inadequate and, in
recognition  of  that  fact,  agree that, in the event of a breach or threatened
breach by the Company of any of the provisions of this Agreement, in addition to
any  remedies  specified herein, at law or otherwise, Holders of at least eighty
percent  (80%)  of  the  aggregate principal amount outstanding under the Notes,
without posting any bond, shall be entitled to seek equitable relief in the form
of specific performance, a temporary restraining order, a temporary or permanent
injunction  or  any  other  equitable  remedy  which  may  then  be  available.
A  delay  or  omission  by any Holder in exercising any right or remedy accruing
upon  an  Event  of Default shall not impair the right or remedy or constitute a
waiver of or acquiescence in the Event of Default.  All remedies are cumulative.
8.4     WAIVER  OF  PAST  DEFAULTS8.4     Waiver  of  Past  Defaults.  Any past
Default  or  Event  of  Default and its consequences may be waived in accordance
with Section 10.1.  When a Default or an Event of Default is waived, it is cured
and  ceases.
      ARTICLE IXARTICLE IX1RESTRICTIONS ON TRANSFERRESTRICTIONS ON TRANSFER
9.1     SECURITIES  LAWS  RESTRICTIONS  ON  TRANSFER9.1     Securities  Laws
Restrictions  on  Transfer.  The  Note  shall  not be sold or transferred unless
either (a) they first shall have been registered under the Securities Act or (b)
the  Company  shall  have  been  furnished  with  an  opinion  of legal counsel,
reasonably  satisfactory  to  the Company, to the effect that such a transfer is
exempt  from  the  registration  requirements  of  the  Securities  Act.
9.2     RESTRICTIVE  LEGEND9.2     Restrictive  Legend.  Each  Note  shall  be
stamped  or otherwise imprinted with a legend in the following form (in addition
to  any  legend  required  under  applicable  state  securities  laws):
"THIS  NOTE  HAS  NOT  BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933,  AS  AMENDED  (THE  "ACT"),  OR  ANY  STATE SECURITIES LAWS AND MAY NOT BE
TRANSFERRED,  SOLD  OR  OFFERED  FOR  SALE  EXCEPT  PURSUANT  TO  AN  EFFECTIVE
REGISTRATION  STATEMENT  AS  TO  THE NOTE UNDER THE ACT AND ANY APPLICABLE STATE
SECURITIES  LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY
THAT  SUCH  REGISTRATION  IS  NOT  REQUIRED."
The foregoing legend may be removed after the second anniversary of the later of
the  last  date  upon  which the Company or any Affiliate of the Company was the
owner  of  such  Security  (or  such shorter period of time as permitted by Rule
144(k)  under  the  Securities  Act  or  any  successor  provision).
9.3     ADDITIONAL  RESTRICTIONS9.3     Additional  Restrictions.
(a)     This  Agreement,  the  Note and the rights and obligations hereunder and
thereunder  may  be  transferred or assigned by a Holder to an Affiliate of such
Holder,  to  another  Holder, if any, or to any Person acquiring a Note having a
principal  amount equal to at least 25% of the aggregate principal amount of the
Note  or Notes then outstanding; provided, however, that the transferee provides
written  notice  of  such assignment to the Company stating its name and address
and the principal amount of the Note with respect to which such rights are being
assigned; and provided further, that the Company receives the written instrument
provided  in  subparagraph (b) below.  Any transferee to whom a transfer is made
in  accordance  with the immediately preceding sentence shall be deemed a Holder
for  purposes  of  this  Agreement.
(b)     Any  transferee  (other  than  a  Holder)  to  whom rights hereunder are
transferred  shall,  as  a  condition to such transfer, deliver to the Company a
written  instrument  by  which  such  transferee  agrees  to  be  bound  by  the
obligations  imposed  upon Holders under this Agreement to the same extent as if
such  transferee  were  a  party  hereto,  including  without  limitation  the
obligations  imposed  upon  Holders  pursuant  to  Section  11.8.
(c)     A  transferee  to  whom  such  rights  are  transferred pursuant to this
Section  9.3  may not again transfer such rights to any other Person, other than
as  provided  in  this  Section  9.3.
   ARTICLE XARTICLE X1AMENDMENT, SUPPLEMENT AND WAIVERAMENDMENT, SUPPLEMENT AND
                                     WAIVER
10.1     WITH CONSENT OF HOLDERS OF THE NOTE10.1     With Consent of Holders of
the  Note.  Except  as provided below in this Section 10.1, no provision of this
Agreement or the Note may be amended, supplemented or waived without the consent
of  Holders  of  at least eighty percent (80%) of the aggregate principal amount
outstanding under the Note voting as a single class (including consents obtained
in  connection  with  a  tender offer or exchange offer for, or purchase of, the
Note) and the Company, and no existing Default or Event of Default (other than a
Default or Event of Default in the payment of the principal of, premium, if any,
or  interest  on  the  Note,  other  than  a  payment  default resulting from an
acceleration  that  has  been rescinded) and no compliance with any provision of
this  Agreement  or the Note may be waived without the consent of the Holders of
at  least  eighty  percent  (80%)  of the aggregate principal amount outstanding
under  the  Note  voting  as  a  single  class  (including  consents obtained in
connection with a tender offer or exchange offer for, or purchase, of the Note).
Except  as  provided  below  in  this  Section  10.1, without the consent of the
Holders  holding  at  least 80% in principal amount of the Note then outstanding
(including consents obtained in connection with a tender offer or exchange offer
for,  or  purchase  of,  such Note) and the Company, no provisions of Article II
hereof may be amended, supplemented or waived in a manner that adversely affects
the  rights  of  any  Holder.
It  shall not be necessary for the consent of the Holders of the Note under this
Section  10.1  to  approve  the  particular  form  of  any  proposed  amendment,
supplement  or  waiver,  but it shall be sufficient if such consent approves the
substance  thereof.
After  an  amendment, supplement or waiver under this Section becomes effective,
the  Company  shall  mail to the Holders of the Note a notice briefly describing
the  amendment,  supplement  or waiver.  Any failure of the Company to mail such
notice,  or  any defect therein, shall not, however, in any way impair or affect
the  validity  of any such amendment, supplement or waiver.  Notwithstanding the
foregoing, without the consent of each Holder affected, an amendment, supplement
or  waiver  under  this Section 10.1 may not (with respect to the Note held by a
non-consenting  Holder):
     (a)     reduce  the  principal  amount  of  the  Note;
(b)     reduce  the  principal  of  or  change  the fixed maturity of the Note;
(c)     reduce the rate of or change the time for payment of interest, including
default  interest,  on  the  Note;
(d)     waive  a  Default  or Event of Default in the payment of principal of or
premium, if any, or interest on the Note (except a rescission of acceleration of
the  Note  by  the  Requisite  Holders  and a waiver of the payment default that
resulted  from  such  acceleration);
(e)     make  any  Note  payable  in  money other than that stated in the Note;
(f)     make  any change in the provisions of this Agreement relating to waivers
of past Defaults or the rights of the Holders of the Note to receive payments of
principal  of  or  interest  on  the  Note;  or
(g)     make  any  changes  in  the  foregoing amendment and waiver provisions.
                 ARTICLE XIARTICLE XI1MISCELLANEOUSMISCELLANEOUS
11.1     NOTICES11.1     Notices.  All  notices, requests, demands, claims, and
other  communications  to  any  party  hereunder or pursuant to the terms hereof
shall  be  in  writing.  Any  such  notice,  request,  demand,  claim,  or other
communication  to  any  party  hereunder  shall  be  deemed duly delivered three
Business  Days  after it is sent by registered or certified mail, return receipt
requested, postage prepaid, or one Business Day after it is sent via a reputable
nationwide  overnight courier service, in each case to the intended recipient as
set  forth  below:
     if  to  the  Lender,  to:
     FS  Ascent  Investments  LLC
c/o  FS  Private  Investments  LLC
55  East  52nd  Street
New  York,  New  York  10055-0002
     Attention:  James  L.  Luikart
     with  a  copy  to:
     Stroock  &  Stroock  &  Lavan  LLP
180  Maiden  Lane
New  York,  New  York  10038
     Attention:  Melvin  Epstein,  Esq.
     and
     Alpharma  Inc.
One  Executive  Drive
Fort  Lee,  New  Jersey  07024
     Attention:  Chief  Legal  Officer
     If  to  the  Company,  to:
     Ascent  Pediatrics,  Inc.
187  Ballardvale  Street,  Suite  B125
Wilmington,  Massachusetts  01887
     Attention:  Emmette  Clemente
     with  a  copy  to:
     Hale  and  Dorr  LLP
60  State  Street
Boston,  Massachusetts  02109
     Attention:  David  E.  Redlick,  Esq.
If  to  a  Holder  other than the Lender, to the address provided to the Company
pursuant  to  Section  9.3.
Any  party  may  give  any  such  notice,  request,  demand,  claim,  or  other
communication  using  any  other  means  (including personal delivery, expedited
courier, messenger service, telecopy, telex, ordinary mail, or electronic mail),
but  no  such  notice,  request,  demand, claim, or other communication shall be
deemed  to  have been duly given unless and until it actually is received by the
party  for  whom  it  is  intended.  Any  party  may change the address to which
notices, requests, demands, claims, and other communications hereunder are to be
delivered  by  giving  the  other parties notice in the manner herein set forth.
11.2     DUPLICATE ORIGINALS11.2     Duplicate Originals.  The parties may sign
any  number of copies of this Agreement.  Each signed copy shall be an original,
but  all  of  them  together  represent  the  same  agreement.
11.3     GOVERNING  LAW11.3     Governing  Law.  The  laws  of the State of New
York,  without  regard  to  principles  of  conflicts  of law, shall govern this
Agreement  and  the  Securities.
11.4     NO  ADVERSE  INTERPRETATION  OF  OTHER  AGREEMENTS11.4     No  Adverse
Interpretation of Other Agreements.  This Agreement may not be used to interpret
another  indenture,  loan or debt agreement of the Company or a subsidiary.  Any
such  indenture,  loan  or  debt  agreement  may  not  be used to interpret this
Agreement.
11.5     SUCCESSORS AND ASSIGNS11.5     Successors and Assigns.  All agreements
of  the  Company  in this Agreement and the Securities shall bind its successors
and  assigns.  All  agreements  of  the  Lender in this Agreement shall bind its
successors  and  assigns.
11.6     SEPARABILITY11.6     Separability.  In  case  any  provision  in  this
Agreement  or  in the Securities shall be invalid, illegal or unenforceable, the
validity,  legality  and enforceability of the remaining provisions shall not in
any  way  be  affected  or  impaired  thereby.
11.7     HEADINGS,  ETC.11.7     Headings,  etc.  The  Headings of the Articles
and  Sections  of this Agreement have been inserted for convenience of reference
only,  are  not  to  be  considered  a part hereof and shall in no way modify or
restrict  any  of  the  terms  or  provisions  hereof.
11.8     CONFIDENTIALITY11.8     Confidentiality.  The  Lender  and  each other
Holder  agree  that  he, she or it will keep confidential and will not disclose,
divulge  or use for any purpose other than to monitor his, her or its investment
in  the  Company  any confidential, proprietary or secret information which such
Holder may obtain from the Company pursuant to financial statements, reports and
other  materials  submitted  by  the  Company  to  such  Holder pursuant to this
Agreement,  or  pursuant  to  visitation or inspection rights granted hereunder,
unless  such  information  is known, or until such information becomes known, to
the  public  (other  than  as  a result of a breach of this Section 11.8 by such
Holder);  provided,  however  that  a  Holder  may  disclose such information if
required  by  law, provided that the Holder provides prior written notice to the
Company  of  such proposed disclosure and takes reasonable steps to avoid and/or
minimize  the extent of any such required disclosure.  The Lender and each other
Holder  further  acknowledge  and  agree  that  certain  of  the  confidential,
proprietary  or secret information which it may obtain hereunder may be material
non-public  information  and  that  neither  it  nor any of its Affiliates shall
engage  in  any  acquisition, disposition or other similar transaction involving
the  Company's  securities  on  the  basis  of,  or  at such time as such Holder
possesses,  such  material  non-public  information.
11.9     LENDER  REPRESENTATIONS  AND  WARRANTIES11.9
LenderRepresentationsandWarranties 3 .  Lender hereby represents and warrants to
the  Company  that (i) it and each of its members is an "accredited investor" as
that  term  is defined in Rule 501(a) promulgated under the Securities Act, (ii)
it  and  each  of  its  members  has  the  requisite knowledge and experience in
financial  and business matters to be capable of evaluating the merits and risks
of  an  investment  in  the Company, (iii) it and each of its members has had an
opportunity  to discuss the Company's business, management and financial affairs
with  the Company's management, (iv) it and each of its members is acquiring the
Note for investment for its own account and not with a view to, or for resale in
connection  with,  any  distribution  thereof; nor with any present intention of
distributing  or selling the same; and has no present or contemplated agreement,
undertaking,  arrangement,  obligation, indebtedness or commitment providing for
the  disposition  thereof,  (v)  it and each of its members understands that the
Note  has  not  been  registered under the Securities Act and it will not offer,
sell,  transfer,  pledge,  hypothecate  or otherwise dispose of any of the Notes
except  pursuant to an exemption from, or otherwise in a transaction not subject
to,  the  registration  requirements  of  the  Securities  Act or pursuant to an
effective registration statement under the Securities Act, and, in each case, in
accordance  with  any  applicable  state  securities  or  "blue  sky"  laws.

<PAGE>
IN  WITNESS  WHEREOF, the parties hereto have duly executed this Agreement as of
the  day  and  year  first  above  set  forth.
ASCENT  PEDIATRICS,  INC.
By:      /s/  Emmett  Clemente
        ----------------------
Name:  Emmet  Clemente
Title:  Chief  Executive  Officer
FS  ASCENT  INVESTMENTS  LLC
By:  FS  PRIVATE  INVESTMENTS,  LLC,
     MANAGER

By:      /s/  James  Luikart
        --------------------
Name:  James  L.  Luikart
Title:  Managing  Member

<PAGE>
                                                                       EXHIBIT A
                                      NOTE
                                                       Wilmington, Massachusetts
                                                                 January 2, 2001
Up  to  $6,250,000
     FOR  VALUE  RECEIVED,  the undersigned, ASCENT PEDIATRICS, INC., a Delaware
corporation  (the  "Company"),  HEREBY PROMISES TO PAY to the order of FS ASCENT
INVESTMENTS  LLC, a Delaware limited liability company (the "Lender"), in lawful
money of the United States of America in immediately available funds, the amount
of  $6,250,000 or, if less, the aggregate unpaid amount of all Loans made to the
undersigned  under  the  "Loan  Agreement" (as hereinafter defined).  Schedule A
attached  hereto  and  incorporated herein by reference records (i) the date and
amount of each Loan hereunder, (ii) the date and amount of any interest payments
due  hereunder  and  (iii)  the  date  and  amount of any principal and interest
payments  made by the Company hereunder; provided , however, that any failure to
endorse  such  information on such schedule or continuation thereof shall not in
any  manner  affect  the obligation of the Company to make payments of principal
and  interest  in accordance with the terms of this Note.  All capitalized terms
used  but  not  otherwise  defined herein have the meanings given to them in the
Loan  Agreement.
The  Note is issued pursuant to that certain Loan Agreement dated as of December
29,  2000  by  and  between  the  Company and the Lender (including all annexes,
exhibits  and  schedules  thereto  and  as  amended,  modified,  restated  or
supplemented  from  time to time (the "Loan Agreement")), and is entitled to the
benefit  and  security  of  the Loan Agreement.  Reference is hereby made to the
Loan  Agreement  for  a statement of all of the terms and conditions under which
the  Loans  evidenced  hereby  are  made  and  are  to  be  repaid.
     1.     Interest  and  Principal  Payments.  The  principal  amount  of  the
indebtedness  evidenced  hereby shall be payable in the amounts and on the dates
specified  in  the  Loan  Agreement,  the terms of which are hereby incorporated
herein by reference.  Interest thereon shall be paid until such principal amount
is  paid  in full at such interest rates and at such times, and pursuant to such
calculations,  as  are  specified  in  the  Loan  Agreement.
2.     Default  and Remedies.  Subject to the requirements of Section 8.2 of the
Loan Agreement, upon and after the occurrence of any Event of Default, this Note
may,  as  provided  in  the  Loan  Agreement, be declared, and immediately shall
become,  due  and  payable.
     3.     Legends.
     "THIS  NOTE  HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT
OF  1933,  AS  AMENDED  (THE "ACT"), OR ANY STATE SECURITIES LAWS AND MAY NOT BE
TRANSFERRED,  SOLD  OR  OFFERED  FOR  SALE  EXCEPT  PURSUANT  TO  AN  EFFECTIVE
REGISTRATION  STATEMENT  AS  TO THIS NOTE UNDER THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY STATISFACTORY TO THE COMPANY
THAT  SUCH  REGISTRATION  IS  NOT  REQUIRED."
     The  foregoing  legend  may  be removed after the second anniversary of the
last  date  upon which the Company or any Affiliate of the Company was the owner
of  such  Security  (or  such shorter period of time as permitted by Rule 144(k)
under  the  Securities  Act  or  any  successor  provision).
4.     Governing  Law.  THIS  NOTE  SHALL  BE  GOVERNED  BY  AND  CONSTRUED  IN
ACCORDANCE  WITH  THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE
AND  PERFORMED  IN  THAT  STATE.
     ASCENT  PEDIATRICS,  INC.
     By:
Name:  Emmet  Clemente
Title:  Chief  Executive  Officer

<PAGE>
                            Schedule A to the Note of
                             Ascent Pediatrics, Inc.
                              Dated January 2, 2001

<PAGE>
                                                                       EXHIBIT B

                           FORM OF NOTICE OF BORROWING

     Reference is made to that certain Loan Agreement dated as December 29, 2000
by  and  among Ascent Pediatrics, Inc. (the "Company") and FS Ascent Investments
LLC  (the  "Lender") (including all annexes, exhibits and schedules thereto, and
as  from time to time amended, restated, supplemented or otherwise modified, the
"Loan Agreement").  Capitalized terms used herein without definition are so used
as  defined  in  the  Loan  Agreement.

The  Company  hereby gives irrevocable notice, pursuant to Section 2.3(a) of the
Loan  Agreement,  that  it  requests a Loan under the Loan Agreement and in that
connection  sets  forth  below  the  terms on which such Loan is requested to be
made:

(A)     Date  of  Borrowing
     (which  is  a  Business  Day)
__________________________________________________

(B)     Principal  Amount  of  Loan
________________________________________________

(C)     Funds  are  requested  to  be  disbursed
     to  the  Company  account  with
________________________________________________

Account  No.  _________________________

(D)     Use  of  Proceeds:

<PAGE>
The  Company  shall  indemnify  the  Lender  against  any  loss, cost or expense
including,  without  limitation,  the  cost  of  Lender  funds  on  its  credit
facilities,  incurred  by  the  Lender as a result of the Loan requested in this
Notice  of  Borrowing  not  being  made  if  such Loan is not made by the Lender
because the conditions precedent to such Loan as set forth in Section 4.1 or 4.2
of  the  Loan  Agreement  were  not  satisfied  or  waived.

IN  WITNESS  WHEREOF,  the  Company  has  caused  this Notice of Borrowing to be
executed  and  delivered by its duly authorized officer as of the date first set
above.

ASCENT  PEDIATRICS,  INC.

By:_________________________________

Title:_______________________________

<PAGE>
                                                                       EXHIBIT C

                          OPINION OF HALE AND DORR LLP

1.     The  Company  is  a  corporation  existing and in good standing under the
General  Corporation  Law  of  the  State  of  Delaware.

2.     The  Certificate  of Designations, in substantially the form of Exhibit A
attached to the Fifth Amendment, has been duly authorized, approved and filed by
the Company with  Secretary of State of the State of Delaware as of December __,
2000  and  is  effective  as  of  such  date.

3.     The  Company  has the requisite corporate power and authority to execute,
deliver  and  perform  the  Loan Agreement, the Security Agreement and the Fifth
Amendment.

4.     The  Board  of Directors of the Company has adopted by requisite vote the
resolutions  necessary  to  authorize the execution, delivery and performance by
the  Company  of  the  Loan  Agreement  the  Security  Agreement  and  the Fifth
Amendment.

5.     The  Company  has  duly  executed  and  delivered the Loan Agreement, the
Security  Agreement  and  the  Fifth  Amendment.

6.     The  Loan Agreement, the Security Agreement and the Fifth Amendment are a
valid  and  binding  obligations  of the Company and are enforceable against the
Company  in  accordance  with  their  respective  terms  (subject  to  customary
exceptions).

7.     The  Note has been duly authorized, executed, issued and delivered by the
Company  and  constitutes  a  valid  and  binding  obligation  of  the  Company
enforceable  against  the  Company  in  accordance  with  its  terms (subject to
customary  exceptions).

8.     The  Series  H Preferred Stock to be issued under the Fifth Amendment has
been duly authorized and, when issued and delivered in accordance with the Fifth
Amendment,  will  be  validly  issued,  fully  paid,  non-assessable,  free  of
preemptive and similar rights and will be offered, issued, sold and delivered by
the Company in transactions in compliance with the applicable federal, state and
foreign  securities  laws.

9.     The  execution  and  delivery  by  the Company of the Loan Agreement, the
Security  Agreement  and  the  Fifth  Amendment  and  the  performance  of  its
obligations thereunder will not (a) constitute a violation of the certificate of
incorporation  or  bylaws of the Company, (b) constitute a material violation by
the  Company  of  any  statutory  law or governmental regulation covered by this
Opinion,  or (c) breach, or result in a default under any existing obligation of
the  Company  under  any  of  its  Other  Specified  Agreements.  The term Other
Specified  Agreements  means  those  agreements set forth on Schedule A attached
hereto.

10.     Except  as  provided  on  the  schedule of Governmental Filings attached
hereto  as  Schedule  B,  to  our  knowledge  and  based  in  part  upon  the
representations  of  the  Lender  in  the  Loan  Agreement,  the Company was not
required to obtain any consent, approval, authorization or order of, or make any
filings  or  registrations with, any United States federal court or governmental
agency  in  order  to  obtain  the right to enter into or perform under the Loan
Agreement,  the Security Agreement and the Fifth Amendment or to take any of the
actions  taken  by  it  on  or prior to this date to consummate the transactions
contemplated  thereby,  except for (i) such consents, authorizations, approvals,
orders, registrations or filings as have been obtained or made prior to the date
hereof,  or  as  permitted  to  be  made or obtained on or after the date hereof
pursuant  to  the Loan Agreement, the Security Agreement and the Fifth Amendment
and  the  exhibits  and schedules thereto, respectively; and (ii) such consents,
authorizations,  approvals,  orders,  registrations  or  filings  as  could  not
individually  or  in  the  aggregate  reasonably  be expected to have a Material
Adverse  Effect.

11.     The  Company  is  not  an "investment company" within the meaning of the
Investment  Company  Act  of  1940,  as  amended.

12.     The  provisions  of  the  Loan  Agreement and the Security Agreement are
effective  to create, in favor of the Lender to secure the payment to the Lender
of the Loan, a valid security interest in the Collateral to the extent that such
Collateral  is  property  of  a  type  subject  to  Article  9  of  the  UCC.Fifth Amendment
                             Dated December 29, 2000
                                     to the
                          Securities Purchase Agreement
                               Dated May 13, 1998
                                  by and among
                          Furman Selz Investors II L.P.
                            FS Employee Investors LLC
                              FS Parallel Fund L.P.
                            Bancboston Ventures Inc.
                                 Flynn Partners
                            FS Ascent Investments LLC

                                       and
                             Ascent Pediatrics, Inc.

<PAGE>

     FIFTH  AMENDMENT  dated  as  of the 29th day of December, 2000 (this "Fifth
Amendment") among Ascent Pediatrics, Inc. (the "Company"), Furman Selz Investors
II  L.P. ("Investors"), FS Employee Investors LLC ("Employee"), FS Parallel Fund
L.P.  ("Parallel,"  together  with  Investors  and  Employee,  the  "Furman Selz
Entities"),  BancBoston  Ventures  Inc. ("BancBoston"), Flynn Partners ("Flynn")
and  FS  Ascent  Investments  LLC  ("Investments") (each of Investors, Employee,
Parallel,  BancBoston, Flynn and Investments are herein referred to individually
as  a  "Purchaser",  and  collectively,  as  the  "Purchasers").
          WHEREAS,  the  Company, the Furman Selz Entities, BancBoston and Flynn
are  parties  to  a  Securities  Purchase Agreement dated as of May 13, 1998, as
amended September 30, 1998, February 16, 1999, July 1, 1999 and October 15, 1999
(the  "Series  G  Purchase  Agreement");
          WHEREAS,  Investments  wishes  to  purchase  from the Company, and the
Company  wishes  to  issue  and sell to Investments, up to four hundred thousand
(400,000)  shares  of  Series  H Convertible Preferred Stock, par value $.01 per
share (the "Series H Preferred Stock"), of the Company, the terms of which shall
be  substantially  as  set  forth  on  Exhibit  A attached hereto (the "Series H
Certificate  of  Designation"),  and  the Company wishes to issue to Investments
warrants  substantially  in  the  form  attached hereto as Exhibit B (the "Fifth
Amendment  Warrants")  to  purchase  up  to  10,950,000 depositary shares of the
Company  ("Depositary  Shares")  (subject  to  appropriate adjustments for stock
splits,  stock  dividends,  reclassifications  or  similar  recapitalizations
affecting  the  Depositary Shares), each Depositary Share representing one share
of  Common  Stock  of  the Company subject to a call option and represented by a
depositary  receipt;
          WHEREAS,  Investments  and  the  Company  desire  to  provide for such
purchase  and  sale and issuance and to establish various rights and obligations
in  connection  therewith;  and
          WHEREAS,  in  connection with such purchase and sale and issuance, the
Purchasers  and  the  Company desire to amend certain provisions of the Series G
Purchase  Agreement.
     NOW THEREFORE, in consideration of these premises, the mutual covenants and
agreements  set  forth  herein  and  other  good and valuable consideration, the
receipt  and  sufficiency  of  which are hereby acknowledged, the parties hereto
agree  as  follows:

<PAGE>
                                    ARTICLE I
                         DEFINITIONS AND INTERPRETATION
     Section  1.1.     Definitions  and  Interpretation.
                       --------------------------------
(a)     All  capitalized  terms used herein which are not otherwise specifically
defined  herein  shall  have  the  respective meaning as ascribed thereto in the
Series  G  Purchase  Agreement.
(b)     Unless otherwise expressly indicated, all references contained herein to
SECTIONS  or other subdivisions or SCHEDULES refer to the corresponding SECTIONS
and  other  subdivisions  or  SCHEDULES  of  the  Series  G  Purchase Agreement.
(c)     The  sections  and  the headings in the sections in this Fifth Amendment
are  for convenience only.  Said sections and headings shall not be deemed to be
part of this Fifth Amendment and in no way define, limit, extend or describe the
scope  or  intent  of  its  provisions.
                                   ARTICLE II
                     SALE AND PURCHASE OF SERIES H PREFERRED
                       STOCK AND FIFTH AMENDMENT WARRANTS

Section  2.1.     Series  H  Preferred  Stock.
                  ---------------------------
(a)     The  Company  agrees  to  issue and sell to Investments, and Investments
agrees  to  subscribe  for  and  purchase  from the Company one (1) share of the
Series  H  Preferred  Stock  on  January  2,  2001 (the "Closing Date").  On the
Closing Date, the Company will deliver to Investments a certificate representing
one  (1) share of Series H Preferred Stock registered in the name of Investments
and  Investments  will deliver one thousand dollars ($1,000) by wire transfer to
an  account  designated  by  the  Company  prior  to  the  Closing  Date.
(b)     Investment  agrees  that,  subject  to  the  condition set forth in this
Fifth  Amendment,  it  shall  purchase  up  to  an  additional 3,999 shares (the
"Additional  Shares") of Series H Preferred Stock from the Company at a purchase
price  of  $1,000 per share.  Following the date on which the Company shall have
borrowed an aggregate principal amount of six million two hundred fifty thousand
dollars  ($6,250,000)  under  the Loan Agreement dated December 29, 2000, by and
between  the Company and Investments (the "Loan Agreement"), the Company has the
option  to require Investments to purchase the Additional Shares pursuant to the
procedures  and  at  the  times  set  forth  in Section 2.1(c).  Notwithstanding
anything  to  the  contrary  herein,  Investments  shall  have  no obligation to
purchase any Additional Shares (i) on more than one (1) occasion in any calendar
month;  or  (ii)  after  December  31,  2001.
(c)     In  order  to  exercise  its  option  to require Investments to Purchase
Additional  Shares, the Company shall deliver to Investments from time to time a
notice  in the form of Exhibit C (each, a "Notice of Purchase") specifying:  (i)
the  aggregate  purchase  price  of  the  Additional  Shares  to be purchased by
Investments on the applicable Purchase Date (each, a "Purchase Price"), (ii) the
number  of  Additional Shares to be purchased on the Purchase Date and (iii) the
proposed  purchase date (each, a "Purchase Date").  Such Notice of Purchase must
be  delivered  to  Investments  not later than 10:00 a.m. (New York time) on the
tenth  (10th)  Business Day prior to such Purchase Date.  On each Purchase Date:
(i)  the  Purchasers shall make a sufficient and timely capital contributions to
Investments so that it has the funds necessary to purchase the Additional Shares
at  such  time  or  times required herein and shall cause Investments to deliver
immediately  available funds in the amount of such Purchase Price to the account
of  the  Company  in accordance with the bank wire instructions contained in the
Notice  of  Purchase,  and  (ii)  the  Company  will  deliver  to  Investments a
certificate  registered  in  the  name of Investments representing the number of
Additional  Shares  designated  in such Notice of Purchase.  Each Purchase Price
shall  be  in an aggregate amount of not less than five hundred thousand dollars
($500,000)  or  a  multiple of one hundred thousand dollars ($100,000) in excess
thereof  and  not  more  than  one  million  dollars ($1,000,000), except in one
instance  an  aggregate  amount  of  not  less than four hundred and ninety nine
thousand  dollars  ($499,000)  and  not  more  than nine hundred and ninety nine
thousand  dollars  ($999,000).  Each Notice of Purchase shall be irrevocable and
binding  upon  the  Company.
(d)     The  agreement of Investments to purchase any Additional Shares shall be
subject  to  its  reasonable  satisfaction,  or the waiver by Investments, on or
prior  to  each Purchase Date that no event has occurred and is continuing which
constitutes  a  Default  or  an  Event  of  Default.
Section  2.2.     Warrants.
                  --------
(a)     On the Closing Date, the Company will issue and deliver to Investments a
Fifth  Amendment  Warrant  (an "Initial Fifth Amendment Warrant") to acquire one
million  nine  hundred  fifty thousand (1,950,000) Depositary Shares (subject to
appropriate  adjustments for stock splits, stock dividends, reclassifications or
similar  recapitalizations  affecting  the  Depositary  Shares).
(b)     The  Company  shall  have  the option to extend the then Demand Date, as
such  term  is  defined  in  the  Loan  Agreement,  to the last day of the month
immediately  following  the  month  in which the Demand Date would then occur by
providing  written notice (the "Extension Notice") to the Holders (as defined in
the Loan Agreement) and to the holders of Series H Preferred Stock not less than
thirty  five  (35)  days  prior to the then Demand Date.  As a condition to each
such  extension,  the  Company  shall  be  obligated  to issue and deliver Fifth
Amendment  Warrants  (each,  an  "Additional  Fifth  Amendment  Warrant")  to
Investments  according  to  the  following schedule and in the following amounts
(for  the  avoidance  of  doubt,  such  amounts  are  cumulative):
     (i)     in  the  event that the Company wishes to extend the Demand Date to
July  31,  2001,  an  Additional Fifth Amendment Warrant to purchase one million
(1,000,000)  Depositary  Shares  (subject  to  appropriate adjustments for stock
splits,  stock  dividends,  reclassifications  or  similar  recapitalizations
affecting  the  Depositary  Shares)  one (1) Business Day before the then Demand
Date,  provided that, in the event that the Note (as such term is defined in the
Loan Agreement) is repaid in full before the then Demand Date, the Company shall
have no obligation to issue and deliver such Additional Fifth Amendment Warrant;
(ii)     in  the  event  that  the  Company  wishes to extend the Demand Date to
August  31,  2001, an Additional Fifth Amendment Warrant to purchase one million
(1,000,000)  Depositary  Shares  (subject  to  appropriate adjustments for stock
splits,  stock  dividends,  reclassifications  or  similar  recapitalizations
affecting  the  Depositary  Shares)  one (1) Business Day before the then Demand
Date,  provided  that,  in  the event that the Note is repaid in full before the
then Demand Date, the Company shall have no obligation to issue and deliver such
Additional  Fifth  Amendment  Warrant;
(iii)     in  the  event  that  the  Company wishes to extend the Demand Date to
September  30,  2001,  an  Additional  Fifth  Amendment  Warrant to purchase one
million  (1,000,000)  Depositary  Shares (subject to appropriate adjustments for
stock  splits,  stock  dividends, reclassifications or similar recapitalizations
affecting  the  Depositary  Shares)  one (1) Business Day before the then Demand
Date,  provided  that,  in  the event that the Note is repaid in full before the
then Demand Date, the Company shall have no obligation to issue and deliver such
Additional  Fifth  Amendment  Warrant;
(iv)     in  the  event  that  the  Company  wishes to extend the Demand Date to
October  31, 2001, an Additional Fifth Amendment Warrant to purchase two million
(2,000,000)  Depositary  Shares  (subject  to  appropriate adjustments for stock
splits,  stock  dividends,  reclassifications  or  similar  recapitalizations
affecting  the  Depositary  Shares)  one (1) Business Day before the then Demand
Date,  provided  that,  in  the event that the Note is repaid in full before the
then Demand Date, the Company shall have no obligation to issue and deliver such
Additional  Fifth  Amendment  Warrant;
(v)     in  the  event  that  the  Company  wishes  to extend the Demand Date to
November 30, 2001, an Additional Fifth Amendment Warrant to purchase two million
(2,000,000)  Depositary  Shares  (subject  to  appropriate adjustments for stock
splits,  stock  dividends,  reclassifications  or  similar  recapitalizations
affecting  the  Depositary  Shares)  one (1) Business Day before the then Demand
Date,  provided  that,  in  the event that the Note is repaid in full before the
then Demand Date, the Company shall have no obligation to issue and deliver such
Additional  Fifth  Amendment  Warrant;  and
(vi)     in  the  event  that  the  Company  wishes to extend the Demand Date to
December 31, 2001, an Additional Fifth Amendment Warrant to purchase two million
(2,000,000)  Depositary  Shares  (subject  to  appropriate adjustments for stock
splits,  stock  dividends,  reclassifications  or  similar  recapitalizations
affecting  the  Depositary  Shares)  one (1) Business Day before the then Demand
Date,  provided  that,  in  the event that the Note is repaid in full before the
then Demand Date, the Company shall have no obligation to issue and deliver such
Additional  Fifth  Amendment  Warrant.
     (c)     Notwithstanding the foregoing, if prior to the then Demand Date (i)
the  Board of Directors of the Company approves a transaction involving the sale
of  the  Company  (through a merger, consolidation, sale, conveyance or lease of
all  or  substantially  all of its assets, or otherwise), (ii) the consideration
from  such  transaction  that  would  be  paid  to  the holders of the Company's
Depositary  Shares for each Depositary Share (whether directly from the Acquiror
or  by  distribution  by  the  Company)  would  exceed $.10 per Depositary Share
(subject  to  appropriate  adjustments  for  stock  splits,  stock  dividends,
reclassifications or similar recapitalizations affecting the Depositary Shares),
(iii)  the  Company  is prohibited from engaging in such transaction without the
approval  of  the Purchasers in accordance with the Series G Purchase Agreement,
as  amended  by this Fifth Amendment, or Investments in accordance with the Loan
Agreement,  and  (iv)  such required approval is not given by the Purchasers and
Investments  within  10  days after such approval is requested in writing by the
Company  (such events being referred to as a "Company Sale Rejection"), then the
Company  may  extend the Demand Date to December 31, 2000 without any obligation
to  issue Additional Fifth Amendment Warrants to Investments pursuant to Section
2.2(b).
                                   ARTICLE III
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY
The  Company  represents  and  warrants  to  Investments  as  follows:
     Section  3.1.     Organization and Existence, etc.  The Company (a) is duly
                       -------------------------------
incorporated,  validly existing and in good standing under the laws of the State
of  Delaware, and has all requisite power and authority to carry on its business
as  now  conducted and as proposed to be conducted, and (b) is duly qualified to
do  business as a foreign corporation and is in good standing (or the equivalent
thereof  under  applicable law) in each jurisdiction in which the conduct of its
business  requires  such  qualification by reason of the ownership or leasing of
property or otherwise (except for those jurisdictions in which the failure so to
qualify  does  not  have  a Material Adverse Effect).  "Material Adverse Effect"
means,  when  used  in  connection  with the Company, any development, change or
effect  that  is  materially  adverse  to  the business, properties, assets, net
worth, financial condition, results of operations or future prospects (including
without  limitation,  future  equity  value) of the Company and its Subsidiaries
taken  as  a  whole.
Section  3.2.     Capitalization  of  the  Company.
                  --------------------------------
(a)     After  giving  effect to the Fifth Amendment, on the date hereof (i) the
Company's authorized capital stock consists of:  (A) 60,000,000 shares of Common
Stock,  of  which  9,781,814 shares are issued and outstanding and (B) 5,000,000
shares  of "blank check" preferred stock, $.01 par value per share, of which (1)
7,000  shares  have  been designated Series G Convertible Exchangeable Preferred
Stock,  all of which shares were exchanged for 8% convertible subordinated notes
of the Company on July 23, 1999 and (2) 4,000 shares have been designated Series
H  Convertible  Preferred  Stock  and  (ii)  the  Company  has  outstanding  the
securities  set forth on Schedule 3.2 attached hereto which are convertible into
or  exercisable  or  exchangeable  for  Depositary  Shares  (the  "Derivative
Securities").
(b)     All  the  issued  and outstanding shares of capital stock of the Company
are  validly  issued, fully paid, non-assessable, free of preemptive and similar
rights  and  have  been  offered,  issued,  sold and delivered by the Company in
transactions  in  compliance  with  the  applicable  federal,  state and foreign
securities laws.  Other than as set forth in Schedule 3.2 attached hereto, there
are  no  outstanding  agreements  or  commitments requiring the Company to issue
capital  stock  or  Derivative  Securities  as  of  the  date  hereof.
     Section  3.3.     Authorization;  Binding  Obligations.
                       ------------------------------------
(a)     The  Company  has  full  power and authority to execute and deliver this
Fifth  Amendment, the Series H Preferred Stock, the Fifth Amendment Warrants and
such  other  documents  furnished  or  to be furnished by the Company hereunder.
This  Fifth  Amendment  has  been duly authorized, executed and delivered by the
Company  and  constitutes  a  legal, valid and binding agreement of the Company,
enforceable  against  the  Company  in  accordance  with  its  terms, subject to
bankruptcy,  insolvency,  reorganization and other laws of general applicability
relating  to or affecting creditors' rights and to general principles of equity.
The  issuance,  offering  and sale of the Series H Preferred Stock and the Fifth
Amendment  Warrants  pursuant  to this Fifth Amendment and the compliance by the
Company  with  the  provisions  of  this Fifth Amendment, the Series H Preferred
Stock  and  the  Fifth  Amendment  Warrants,  and  the consummation of the other
transactions  herein contemplated, will not result in the creation or imposition
of  any lien, charge, security interest or encumbrance upon any of the assets of
the  Company  pursuant  to  the terms or provisions of, or result in a breach or
violation of or conflict with any of the terms or provisions of, or constitute a
default  under,  or  give  any  other  party  a  right  to  terminate any of its
obligations  under,  or  result in the acceleration of any obligation under, (i)
the Certificate of Incorporation and Bylaws of the Company, (ii) any contract or
other  agreement  to which the Company is a party or by which the Company or any
of  its  properties  is  bound  (other than agreements with Alpharma which shall
terminate  on  the  date  hereof)  or (iii) any judgment, ruling, decree, order,
statute,  rule  or regulation of any court or other governmental agency or body,
domestic  or  foreign,  applicable to the business or properties of the Company,
except,  with  respect  to clauses (ii) and (iii), circumstances that would not,
individually  or  in  the  aggregate,  reasonably be expected to have a Material
Adverse  Effect.
     (b)     All  of  the  shares of Series H Preferred Stock to be issued under
this  Fifth Amendment have been duly authorized and when issued and delivered in
accordance  with  the  Fifth  amendment  will  be  validly  issued,  fully paid,
non-assessable,  free  of  preemptive  and  similar  rights and will be offered,
issued, sold and delivered by the Company in transactions in compliance with the
applicable  federal,  state  and  foreign  securities  laws.
(c)     The  Fifth Amendment Warrants have been duly authorized for issuance and
the  Depositary  Shares  issuable  upon exercise of the Fifth Amendment Warrants
have  been  duly  authorized and reserved for issuance and (i) the Initial Fifth
Amendment  Warrants  being  delivered  on  the  date  hereof  have been, and the
Additional  Fifth Amendment Warrants being delivered after the date hereof, when
delivered,  will  have  been,  duly  executed  and  delivered  by the Company in
accordance  with  this  Fifth  Amendment  and  will constitute valid and legally
binding  obligations  of  the  Company,  enforceable  against  the  Company  in
accordance  with  their terms, subject to bankruptcy, insolvency, reorganization
and  other  laws  of  general  applicability relating to or affecting creditors'
rights  and  to  general principles of equity, (ii) the Fifth Amendment Warrants
will  be  exercisable  for Depositary Shares in accordance with their terms, and
(iii)  the  Depositary  Shares  issuable  upon  exercise  of the Fifth Amendment
Warrants,  when  issued  and  delivered in accordance with the provisions of the
Fifth  Amendment  Warrants, will be duly authorized, validly issued, fully paid,
nonassessable  and  free  of  preemptive  and  similar  rights.
Section  3.4.     Compliance  with  Instruments,  etc.  Except  as  set forth on
                  -----------------------------------
Schedule 3.4 hereto, the Company is not in breach or violation of, or in default
under, any term or provision of (i) its Certificate of Incorporation and Bylaws,
(ii)  any  indenture,  mortgage,  deed  of  trust,  voting  trust  agreement,
stockholders  agreement,  note  agreement, debt instrument or other agreement or
instrument to which it is a party or by which it is bound or to which any of its
property  is  subject,  the  effect  of  which  breach,  violation  or  default,
individually  or  in  the  aggregate,  would  reasonably  be  expected to have a
Material  Adverse  Effect  other  than  agreements  with  Alpharma  which  shall
terminate  on  the  date  hereof, or (iii) any statute, judgment, decree, order,
rule  or  regulation  applicable  to  the  Company  or of any arbitrator, court,
regulatory body, administrative agency or any other governmental agency or body,
domestic  or  foreign,  having  jurisdiction  over  the  Company  or  any of its
respective activities or properties and the effect of which breach, violation or
default,  individually or in the aggregate, would reasonably be expected to have
a  Material  Adverse  Effect.
Section  3.5.     Litigation.  Except as set forth on Schedule 3.5 hereto, there
                  ----------
are  no  actions,  suits,  proceedings  or  investigations  pending,  or, to the
knowledge  of  the  Company,  threatened,  against  the Company before or by any
court, regulatory body or administrative agency or any other governmental agency
or  body,  domestic  or  foreign, which would, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, or any actions, suits,
proceedings  or  investigations  pending,  or,  to the knowledge of the Company,
threatened,  which  challenge  the  validity  of any action taken or to be taken
pursuant  to  or  in connection with this Fifth Amendment or the issuance of the
Series  H  Preferred  Stock  or  the Fifth Amendment Warrants and the Depositary
Shares  issuable  upon  the  conversion  or  exercise  thereof  which  would,
individually  or  in  the  aggregate,  reasonably be expected to have a Material
Adverse  Effect.  As  it  pertains to the Company, when used herein, the phrases
"to  the knowledge of" or derivatives thereof shall mean the actual knowledge of
the  Chief  Executive  Officer  of  the  Company.
Section  3.6.     Offering.  Subject  to  the  Purchasers'  representations  and
                  --------
warranties  in  Article IV of this Fifth Amendment, the offer, sale and issuance
of the Series H Preferred Stock and the Fifth Amendment Warrants as contemplated
by  this Fifth Amendment are not subject to the registration requirements of the
Securities  Act  of  1933,  as  amended  (the "Securities Act"), and neither the
Company  nor anyone acting on its behalf, has taken or will take any action that
would  cause  such  registration  requirements  to  be  applicable.
Section 3.7.     Permits; Governmental and Other Approvals.  Other than pursuant
                 -----------------------------------------
to  agreements  with  Alpharma  which  shall  terminate  on  the date hereof, no
approval,  consent, authorization or other order of, and no designation, filing,
registration,  qualification  or  recording  with,  any  governmental authority,
domestic  or  foreign,  is  required for the Company's performance of this Fifth
Amendment  or  the  consummation by the Company of the transactions contemplated
hereby except for the filing of a Form D under the Securities Act and the filing
of  a  Form  8-K  under  the  Securities  Exchange  Act of 1934, as amended (the
"Exchange  Act").
Section  3.8.     Subsidiaries.  The  Company  has  no  subsidiaries and owns no
                  ------------
securities  of other corporations or entities other than short-term money market
investments.
                                   ARTICLE IV
                REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS
     Each  of  the Purchasers hereby represents and warrants to the Company that
(i)  it  is  an  "accredited  investor"  as  that term is defined in Rule 501(a)
promulgated  under  the  Securities Act, (ii) it has the requisite knowledge and
experience  in  financial  and  business matters to be capable of evaluating the
merits  and  risks  of  an  investment  in  the  Company,  (iii)  it  has had an
opportunity  to discuss the Company's business, management and financial affairs
with the Company's management, (iv) it is acquiring, directly or indirectly, the
Series  H  Preferred  Stock  and the Fifth Amendment Warrants and the Depositary
Shares issuable upon the exercise thereof for investment for its own account and
not  with a view to, or for resale in connection with, any distribution thereof;
nor  with any present intention of distributing or selling the same; and, except
as  contemplated  by  the Series G Purchase Agreement or this Fifth Amendment or
the  Series  H  Certificate  of  Designation,  Investments  has  no  present  or
contemplated  agreement,  undertaking,  arrangement, obligation, indebtedness or
commitment  providing  for  the  disposition  thereof, (v) it is not in material
breach  or  violation  of, or in default under, any term or provision of (A) its
organizational  and  governing  documents,  (B) any indenture, mortgage, deed of
trust, voting trust agreement, stockholders, partners or members agreement, note
agreement or other agreement or instrument to which it is a party or by which it
is  or may be bound or to which any of its property is or may be subject, or (C)
any  statute,  judgment,  decree,  order,  rule  or  regulation  applicable  to
Investments  or of any arbitrator, court, regulatory body, administrative agency
or  any  other  governmental  agency  or  body,  domestic  or  foreign,  having
jurisdiction  over  Investments  or any of its activities or properties, (vi) it
understands  that  the Series H Preferred Stock and the Fifth Amendment Warrants
and  the  Depositary  Shares  issuable  upon  the exercise thereof have not been
registered  under  the  Securities  Act and it will not, directly or indirectly,
offer,  sell,  transfer,  pledge, hypothecate or otherwise dispose of any of the
Series  H  Preferred  Stock  or  the  Fifth Amendment Warrants or the Depositary
Shares  issuable upon the exercise thereof except pursuant to an exemption from,
or  otherwise  in a transaction not subject to, the registration requirements of
the  Securities Act or pursuant to an effective registration statement under the
Securities  Act,  and,  in  each  case,  in accordance with any applicable state
securities  or  "blue  sky"  laws  and  (viii)  it understands that the Series H
Preferred  Stock  and  the  Fifth  Amendment  Warrants  and  any  certificates
representing  the  Depositary  Shares issuable upon the exercise thereof and any
other  securities  issued  in  respect  of such securities upon any stock split,
stock  dividend, recapitalization, merger, consolidation or similar event, shall
be  stamped  or otherwise imprinted with a legend substantially in the following
form  (in  addition  to  any  legend  required under other applicable securities
laws):
"THESE  SECURITIES  HAVE  NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAWS AND MAY NOT BE
TRANSFERRED,  SOLD  OR  OFFERED  FOR  SALE  EXCEPT  PURSUANT  TO  AN  EFFECTIVE
REGISTRATION  STATEMENT  AS  TO  THE SECURITIES UNDER THE ACT AND ANY APPLICABLE
STATE  SECURITIES  LAWS  OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE
COMPANY  THAT  SUCH  REGISTRATION  IS  NOT  REQUIRED."
Investments  further  represents  that  (i)  it  has full power and authority to
execute,  deliver  and  perform  this Fifth Amendment, (ii) the person executing
this  Fifth  Amendment on behalf of Investments has the appropriate authority to
act  on  behalf  of  Investments,  (iii)  this  Fifth  Amendment  has  been duly
authorized, executed and delivered by Investments and constitutes a legal, valid
and  binding  agreement  of  Investments,  enforceable  against  Investments  in
accordance with its terms, subject to bankruptcy, insolvency, reorganization and
other  laws  of general applicability relating to or affecting creditors' rights
and  to general principles of equity, and (iv) it has not employed any broker or
finder in connection with the transactions contemplated by this Fifth Amendment.
To  the  best  of  its  knowledge,  Investments acknowledges receipt of, and the
opportunity  to  review,  the  information that it believes necessary to make an
investment in the Series H Preferred Stock and the Fifth Amendment Warrants  and
the  Depositary  Shares  issuable  upon  the  exercise  thereof.
                                    ARTICLE V
                  AMENDMENTS TO THE SERIES G PURCHASE AGREEMENT
     Section  5.1.     Agreement  of  Furman Selz Entities.  Investments, by its
                       -----------------------------------
execution of this Fifth Amendment, hereby joins in and agrees to be bound by and
subject to the provisions of Articles VII, VIII, X, XI, XIV, XV, XVI and XVII of
the  Series G Purchase Agreement, all as amended from time to time in accordance
with  Article XIV of the Series G Purchase Agreement, as a Purchaser or a Holder
thereunder, with respect to the Series H Preferred Stock and the Fifth Amendment
Warrants  issued  or issuable to Investments and the Depositary Shares issued or
issuable  upon  exercise  thereof.
Section  5.2.     Definitions.  For  purposes of Articles VII, VIII, X, XI, XIV,
                  -----------
XV,  XVI  and  XVII  of the Series G Purchase Agreement: (a) the term "Preferred
Stock"  shall hereby be amended to include the Series H Preferred Stock; (b) the
term "Warrants" shall hereby be amended to include the Fifth Amendment Warrants;
(c)  the term "Warrant Shares" shall hereby be amended to include the Depositary
Shares issued or issuable upon exercise of the Fifth Amendment Warrants; and (d)
the  term "Securities" shall hereby be amended to include the Series H Preferred
Stock  and  the  Fifth  Amendment  Warrants.
Section  5.3     Amendments  to the Negative Covenants.  Effective from the date
                 -------------------------------------
hereof,  until  such  time  as  no  indebtedness  is  outstanding under the Loan
Agreement  and  no  shares  of  Series  H  Preferred  Stock are outstanding, (i)
Sections  8.1 through Section 8.13 of the Series G Purchase Agreement are hereby
amended  by  deleting  in  its  entirety  the text thereof and inserting in lieu
thereof  Sections  7.1  through 7.13 of the Loan Agreement renumbered as Section
8.1  through  Section  8.13  accordingly  and  (ii) Section 8.15 of the Series G
Purchase  Agreement  is hereby amended by deleting in their entirety the text of
all  defined  terms  set  forth  therein  and  inserting  in  lieu  thereof  the
definitions  contained in Section 1.1 of the Loan Agreement as necessary for the
interpretation  of  Sections  8.1 through 8.13 of the Loan Agreement included in
the  Fifth  Amendment.  Upon repayment of all outstanding indebtedness under the
Loan Agreement and redemption of all shares of Series H Preferred Stock, Article
VIII  of  the  Series  G  Purchase Agreement shall be amended in its entirety by
deleting the text thereof and inserting in lieu thereof the text of Article VIII
of  the  Series  G  Purchase  Agreement  as  of  May  13,  1998.
Section  5.4     Amendments  to  Events  of  Defaults.  Effective  from the date
                 ------------------------------------
hereof  until  such  time  as  no  indebtedness  is  outstanding  under the Loan
Agreement  and  no  shares  of Series H Preferred Stock are outstanding, Section
13.1  of the Series G Purchase Agreement is amended by deleting the text thereof
and  inserting  in  lieu  thereof  the  following:
     13.1     EVENTS OF DEFAULT8.1     Events of Default.  An "Event of Default"
occurs  if:
(a)     the  Company  defaults  in  the payment of interest on the Note when the
same  becomes  due  and  payable  and  such  default continues for a period of 5
Business  Days;
(b)     the  Company  defaults  in the payment of the principal of the Note when
the  same  becomes  due  and  payable at the Maturity Date, upon acceleration or
otherwise  or the Company defaults in the payment of the Redemption Price of the
Series H Preferred Stock when due in accordance with the Series H Certificate of
Designations;
(c)     the  Company  defaults in the performance of any covenants under Article
VIII  of  this  Agreement;
(d)     the Company fails to comply with any of the provisions of this Agreement
(other  than Article VIII) and such failure continues for 20 Business Days after
notice specified in the penultimate paragraph of this Section 13.1 (the "Default
Notice") without cure (the Company to give forthwith to all other holders of the
Notes  at  the time outstanding written notice of receipt of such Default Notice
specifying  the  default  referred  to  therein);
(e)     the  Company  defaults in payment on Borrowed Money Indebtedness (giving
effect  to  any applicable grace periods and any extensions thereof) of at least
$700,000  principal  amount;
(f)     there  has  been  an  acceleration  of  the final stated maturity of any
Borrowed  Money  Indebtedness  of the Company (which acceleration shall not have
been cured, waived, rescinded or annulled for 10 Business Days) if the aggregate
principal  amount  of  such  Borrowed  Money  Indebtedness,  together  with  the
principal  amount  of  any other such Borrowed Money Indebtedness in default for
failure  to  pay principal at maturity or which has been accelerated, aggregates
$700,000  or  more  at  any  time;
(g)     any representation or warranty of the Company under this Agreement shall
prove  to  have  been  incorrect  in  any  material  respect  when  made;
(h)     there  exists  an  outstanding  unsatisfied final judgment which, either
alone or together with other outstanding unsatisfied final judgments against the
Company,  exceeds  an  aggregate  of  $200,000  (to  the  extent  not covered by
insurance)  and  such judgment shall have continued undischarged or unstayed for
20  Business  Days  after  entry  thereof;
     (i)     the  Company,  pursuant  to or within the meaning of any Bankruptcy
Law:
     (i)     commenced  a  voluntary  case;
(ii)     consents  to  the  entry  of  an  order  for  relief  against  it in an
involuntary  case;
(iii)     consents  to  the  appointment  of  a  custodian  of  it or for all or
substantially  all  of  its  property;  or
     (iv)     makes  a  general  assignment for the benefit of its creditors; or
(j)     a  court  of  competent jurisdiction enters an order or decree under any
Bankruptcy  Law  that:
     (i)     is  for  relief  against  the  Company  in  an  involuntary  case;
(ii)     appoints a custodian of the Company for all or substantially all of its
property;  or
(iii)     orders the liquidation of the Company, and the order or decree remains
unstayed  and  in  effect  for  90  consecutive  days.
A  default  under paragraph (d) of this Section 13.1 is not a default unless the
holders  of at least eighty percent (80%) of the aggregate principal amount then
outstanding  under  the  Notes notify the Company of the default and the Company
does  not cure the default within twenty (20) days after receipt of such notice.
The  notice  must  specify  the  default  and  demand  that  it  be  remedied.
A  "Business  Day"  means any day which is neither a Saturday nor a Sunday nor a
legal  holiday  on  which  banks  are authorized or required to close in Boston,
Massachusetts  or  New  York,  New  York.  A  "Default"  means any of the events
specified  in this Section 13.1, regardless of whether there shall have occurred
any passage of time or giving notice or both that would be necessary in order to
constitute  such  Event  of  Default.
Upon  repayment  of  all  outstanding  indebtedness under the Loan Agreement and
redemption of all shares of Series H Preferred Stock, Section 13.1 of the Series
G  Purchase  Agreement  shall  be  amended  in its entirety by deleting the text
thereof  and  inserting in lieu thereof the text of Section 13.1 of the Series G
Purchase  Agreement  as  of  May  13,  1998.
     Section  5.5.     Effectiveness  of  Amendments.
                       ------------------------------
(a)     Section  3.13  of  the  Fourth Amendment is amended by deleting the text
thereof.
(b)     Upon  repayment of all outstanding indebtedness under the Loan Agreement
and  redemption  of all shares of Series H Preferred Stock, any Default or Event
of  Default  due  to  the  existence  of  circumstances  which  would  not  have
constituted  a  Default  or Event of Default immediately prior to such repayment
and  redemption  are  hereby  waived.
Section  5.6.     Conversion.  Section  12.4 of Article XII is hereby amended by
                  ----------
(i)  deleting  the  word  "and"  following clause (iv), (ii) deleting the period
following  clause  (v) and inserting in lieu thereof a semicolon followed by the
word  "and"  and  (iii)  adding  as  a  new  clause  (vi)  the  following:
"(v)  the  Fifth  Amendment  Warrants and the securities issued or issuable upon
conversion  or  exercise  thereof."
                                   ARTICLE VI
                     OTHER AGREEMENTS, WAIVERS AND CONSENTS
     Section  6.1     Consent  to Issuance of the Fifth Amendment Warrants.  The
                      ----------------------------------------------------
Purchasers  hereby  consent,  in  all  respects  under  the  Series  G  Purchase
Agreement,  including,  without  limitation,  under Sections 8.1 and 8.7, to the
consummation  of  the  transactions  contemplated  by  this  Fifth  Amendment,
including, without limitation:  (i) the issuance of the Fifth Amendment Warrants
and  (ii)  the  shares  of  Series  H  Preferred Stock issuable under this Fifth
Amendment.
Section  6.2.     Rights  of  First  Refusal.  The  Purchasers  hereby waive any
                  --------------------------
rights of first refusal held by the Purchasers under Section 7.7 of the Series G
Purchase  Agreement  which were, are or may be applicable to (i) the issuance of
the  Fifth  Amendment  Warrants  and  the  Depositary  Shares  issuable upon the
exercise  thereof and (ii) the shares of Series H Preferred Stock issuable under
this  Fifth  Amendment,  and  Investments  hereby  confirms its agreement to the
waivers  of  rights  of  first  refusal  previously  made  by  the  Purchasers.
Section  6.3.     Antidilution Adjustment.  (a) The Purchasers hereby agree that
                  -----------------------
no  adjustment  shall  be  made to the Conversion Price of the Convertible Notes
under Section 12.4 of the Purchase Agreement with respect to the issuance of the
Fifth  Amendment  Warrants  and the Depositary Shares issuable upon the exercise
thereof.
(b)     The  Warrant  Price of the Warrants, (as defined in such Warrants) shall
be reduced from $3.00 per share to five cents ($0.05) per Warrant Share, subject
to  further  adjustment  in  accordance  with  the  terms  of  the  Warrants.
Section  6.4     Strategic Transaction.  Promptly following the date hereof, the
                 ---------------------
Company  shall  seek  to  engage  an  investment  bank  to assist the Company in
consummating  a  strategic transaction with a third party.  Such investment bank
shall  be  subject  to  the approval of the Furman Selz Entities, which approval
shall  not be unreasonably withheld.  In consideration for the assistance of the
Furman  Selz  Entities in consummating such a strategic transaction, at the time
Ascent  pays  the  investment  bank  its  success  fee  in  connection  with the
consummation  of  the  strategic  transaction,  it  shall pay to the Furman Selz
Entities  $3,000,000.
                                   ARTICLE VII
                                  MISCELLANEOUS
     Section  7.1.     The  Series  G  Purchase Agreement.  Except as amended by
                       ----------------------------------
this Fifth Amendment, the Series G Purchase Agreement shall remain in full force
and  effect  in accordance with its terms.  This Fifth Amendment shall be deemed
to  be  included  in  the  Series  G  Purchase  Agreement  as  defined  above.
     Section  7.2.     Governing Law.  The rights and obligations of the parties
                       -------------
under  or pursuant to this Fifth Amendment shall be governed by and construed in
accordance  with  the  laws  of  the  State  of  New  York.
Section  7.3.     Expenses.  The  Company will pay all reasonable legal fees and
                  --------
disbursements  of  counsel  for  Investments  incurred  with  respect  to  the
negotiation,  execution  and  consummation  of  this  Fourth  Amendment  and the
transactions  contemplated  by  this  Fifth  Amendment.
Section  7.4.     References  to  Series  G Purchase Agreement.  Whenever in any
                  --------------------------------------------
certificate,  letter, notice or other instrument reference is made to the Series
G  Purchase  Agreement,  such  reference  without  more shall include this Fifth
Amendment.
Section  7.5.     Amendments  to  Alpharma  Agreements.  The  Purchasers  (and
                  ------------------------------------
permitted  assignees  of  the  Purchasers) in accordance with Article XIV of the
Series  G  Purchase  Agreement  hereby  consent  to the terms of the Termination
Agreement  by  and  between  Alpharma  and  the Company dated December 29, 2000,
including, without limitation, the termination or amendment of the Alpharma Loan
Document  and  the  Ancillary  Agreements  as  set  forth  therein.
Section  7.6.     Counterparts.  This  Fifth  Amendment  may  be  executed
                  ------------
simultaneously  in  counterparts, each of which shall be deemed an original, and
it  shall  not  be  necessary  in  making  proof  of  the contents of this Fifth
Amendment  to  produce  or  account  for  more  than  one  such  counterpart.
Section  7.7.     Effectiveness.  This  Fifth Amendment to the Series G Purchase
                  -------------
Agreement  shall  be  effective  on  the  date  hereof.

<PAGE>
IN  WITNESS  WHEREOF  this  Fifth Amendment has been executed by duly authorized
representatives  of  the  parties  hereto on the day, month and year first above
written.
ASCENT  PEDIATRICS,  INC.
By:  /s/  Emmett  Clemente
     ---------------------
Name:     Emmett  Clemente
Title:     Chief  Executive  Officer
FURMAN  SELZ  INVESTORS  II  L.P.
FS  EMPLOYEE  INVESTORS  LLC
FS  PARALLEL  FUND  L.P.
By:     FS  PRIVATE  INVESTMENTS  LLC,
MANAGER
By:      /s/  James  Luikart
        --------------------
Name:     James  L.  Luikart
Title:     Managing  Member
BANCBOSTON  VENTURES  INC.
By:     /s/ Marcia T. Bates
Name:     Marcia T. Bates
Title:     Managing Director
FLYNN  PARTNERS
By:      /s/  James  E.  Flynn
        ----------------------
Name:     James  E.  Flynn,  General  Partner
Flynn  Partners

<PAGE>

FS  ASCENT  INVESTMENTS  LLC
By:  FS  PRIVATE  INVESTMENTS,  LLC,
     MANAGER

 /s/  James  Luikart
--------------------
Name:  James  L.  Luikart
Title:    Managing  Member

<PAGE>
                                    EXHIBIT A
                                    ---------
                       Series H Certificate of Designation

<PAGE>
                                    EXHIBIT B
                                    ---------
                         Form of Fifth Amendment Warrant

<PAGE>
                                    EXHIBIT C
                                    ---------
                           FORM OF NOTICE OF PURCHASE

     Reference  is  made  to  Fifth Amendment dated as December ___, 2000 by and
among  Ascent  Pediatrics, Inc. (the "Company") and the Purchasers named therein
(including all annexes, exhibits and schedules thereto, and as from time to time
amended,  restated,  supplemented or otherwise modified, the "Fifth Amendment").
Capitalized  terms  used herein without definition are so used as defined in the
Fifth  Amendment.

The  Company  hereby gives irrevocable notice, pursuant to Section 2.1(c) of the
Fifth  Amendment,  that  it requests that Investments purchase Additional Shares
under  the  Fifth Amendment and in that connection sets forth below the terms on
which  such  purchase  is  requested  to  be  made:

(A)     Purchase  Date
     (which  is  a  Business  Day)
__________________________________________________

(B)     Purchase  Price
___________________________________________________________

(C)     Number  of  Additional  Shares  to  be  Purchased
__________________________________

(D)     Funds  are  requested  to  be  disbursed
     to the Company account with _______________________________________________

Account  No.  _________________________

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