**Exhibit 10.22****SECOND AMENDMENT TO LEASE**     This Second Amendment to Lease (“Second Amendment”) is made as of the 14th day ofSeptember, 2007, by and between MCC3 LLC, a Delaware limited liability company (“Landlord”) andVanda Pharmaceuticals, Inc., a Delaware corporation (“Tenant”).WITNESSETH:     WHEREAS, Landlord and Tenant entered into that certain Lease dated August 14, 2005, as amendedby the First Amendment to Lease dated November 15, 2006 (as so amended, the “Original Lease”)whereby the Landlord leased to Tenant space (the “Original Premises”) on the 3rd floorof that building located at 9605 Medical Center Drive, Rockville, Maryland (the “Building”); and     WHEREAS, Landlord and Tenant desire to amend the Original Lease (the Original Lease, as herebyamended, the “Lease”) to add to the Original Premises the expansion space located on the3rd floor of the Building and consisting of the area containing approximately 10,225rentable square feet and shown as cross-hatched on Exhibit A attached hereto and made apart hereof (the “Expansion Space”).     NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties andother good and valuable consideration, the receipt and sufficiency of which are herebyacknowledged, the parties agree as follows:     1. The above recitals are incorporated herein by reference.     2. Subject to the terms and provisions of the Lease, as modified hereby, Landlordhereby leases to Tenant and Tenant hereby leases from Landlord the Expansion Space for theExpansion Space Term (as hereinafter defined).     3. The “Expansion Space Term” shall mean the term commencing on the earlierto occur of (a) the date on which the Expansion Space is deemed “ready for occupancy” asprovided in Exhibit B attached hereto and made a part hereof, (b) the date on whichTenant occupies all or any part of the Expansion Space for purpose of its business operation, or(c) January 1, 2008 (the earlier of such dates being herein referred to as the “ExpansionSpace Commencement Date”) and terminating on the Term Expiration Date, unless sooner terminatedin accordance with the Lease (the “Expansion Space Term”).     4. During the Expansion Space Term, all references in the Lease to the “Premises”shall for all purposes be deemed to include, without limitation, the Expansion Space. TheRentable Floor Area of Tenant’s Space during the Expansion Term shall include both theOriginal Premises under the Original Lease plus the Expansion Space and shall be approximately27,269 rentable square feet.     5. Beginning on the Expansion Space Commencement Date and continuingthereafter for the remainder of the Term, Tenant shall pay Tenant’s Share of Operating Costs,Tenant’s Share of Real Estate Taxes and Tenant’s Annual Electrical Cost for the entirePremises, including the Expansion Space. Beginning on July 1, 2008 (the “Expansion Space Rent
 

 
Commencement Date”); and throughout the remainder of the Term, Tenant shall pay Landlord, AnnualRent, at the rate per rentable square foot set forth in the Original Lease, based on the totalRentable Square Feet of the Premises, as expanded in accordance with this Second Amendment.Accordingly, during the Expansion Term the Annual Rent calculations for the remainder of the ThirdLease Year (calendar year 2008) and each subsequent Lease Year in Section 4.1 of the Original Leaseshall be deleted and replaced by:             **Third Lease Year (July 1, 2008 — December 31, 2008):**                   $24.40 x  27,269  = $665,363.60 Annual Rent   Rentable Square   Annual Rentp.r.s.f.   Feet                   **Fourth Lease Year (January 1, 2009 — December 31, 2009):**                   $25.13 x  27,269  = $685,269.97 Annual Rent   Rentable Square   Annual Rentp.r.s.f.   Feet                   **Fifth Lease Year: (January 1, 2010 — December 31, 2010:**                   $25.89 x  27,269  = $705,994.41 Annual Rent   Rentable Square   Annual Rentp.r.s.f.   Feet                   **Sixth Lease Year (January 1, 2011 — December 31, 2011):**                   $26.66 x  27,269  = $726,991.54 Annual Rent   Rentable Square   Annual Rentp.r.s.f.   Feet                   **Seventh Lease Year (January 1, 2012 — December 31, 2012):**                   $27.46 x  27,269  = $748,806.74 Annual Rent   Rentable Square   Annual Rentp.r.s.f.   Feet                   **Eighth Lease Year (January 1, 2013 — December 31, 2013):**                   $28.29 x  27,269  = $771,440.01 Annual Rent   Rentable Square   Annual Rentp.r.s.f.   Feet                   **Ninth Lease Year (January 1, 2014 — December 31, 2014):**                   $29.14 x  27,269  = $794,618.66 Annual Rent   Rentable Square   Annual Rentp.r.s.f.   Feet      
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                          **Tenth Lease Year (January 1, 2015 — December 31, 2015):**                   $30.01 x  27,269  = $818,342.69 Annual Rent   Rentable Square   Annual Rentp.r.s.f.   Feet                   **Eleventh Lease Year (January 1, 2016 — June 30, 2016):**                   $30.91 x  27,269  = $842,884.79 Annual Rent   Rentable Square   Annual Rentp.r.s.f.   Feet           The Rentable Floor Area of Tenant’s Space for purposes of calculating Tenant’s Share shall be27,269 from and after the Expansion Space Commencement Date through the balance of the Term.     6. The Leasehold Improvements for the Expansion Space shall be completedaccording to the terms contained in Exhibit B attached hereto.     7. **Expansion Allowance****.**In lieu of the Tenant Allowance provided to Tenantin accordance with Article I of the Original Lease (which shall not be available to Tenantfor the Expansion Space), Tenant shall receive an allowance for design and construction ofimprovements in the Expansion Space (including without limitation the costs and fees chargedto Landlord by Landlord’s Consultant, as defined in Exhibit B) of up to Thirty-FiveDollars ($35.00) per rentable square foot of Expansion Space (the “Expansion Allowance”).     8. **Security Deposit**          Landlord acknowledges that it is currently holding a security deposit from Tenant in theamount of $430,230 (the “Original Deposit”).          Tenant represents and warrants that Tenant currently has and will maintain unencumberedliquids assets as shown in Tenant’s financial statement as of the end of June 30, 2007 not lessthan $30,000,000.00 in cash, cash equivalents, and marketable securities traded on a public stockexchange (excepting treasury stock in Tenant) (such liquid assets not less than $30,000,000 beingherein referred to as the “Cash Requirement”). In place of an additional security deposit relatedto the Expansion Space, Tenant shall continue until the expiration of twenty-four (24) monthsfollowing the Expansion Space Commencement Date to maintain unencumbered liquid assets consistingof cash, cash equivalents and/or marketable securities traded on a public stock exchange(excepting treasury stock in Tenant) in accordance with the Cash Requirement. Tenant shall deliverto Landlord within thirty (30) days following the end of each calendar quarter during such two (2)year period an interim financial statement as of the end of such quarter certified by anauthorized financial officer in Tenant and in sufficient detail so Landlord can determine theTenant continues to satisfy the Cash Requirement. Within ninety (90) days following the end ofeach fiscal year for Tenant, Tenant shall deliver to Landlord a financial statement as of the endof such fiscal year certified by an authorized financial officer in Tenant in sufficient detail soLandlord can determine the Tenant continues to satisfy the Cash Requirement.
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          If at the end of any such calendar quarter or fiscal year Tenant fails to satisfy the CashRequirement, then Tenant shall immediately (but no later than 10 days following Landlord’s writtendemand therefor) deliver to Landlord an additional $200,000 to Landlord to be added to the SecurityDeposit (the “Additional Deposit”). Such Additional Deposit shall be in cash or by letter of creditsatisfying the requirements of Article 11 of the Lease. Landlord shall hold the Original Depositand Additional Deposit totaling $630,230 from and after the date of deposit as a Security Depositpursuant to the terms of Article XI of the Lease. If as of the first and second anniversaries ofthe Expansion Space Commencement Date (i) no default by Tenant has occurred, which remains uncuredby Tenant, (ii) no Event of Default has occurred, whether or not cured by Tenant, and (iii) Tenanthas not assigned the Lease to any person or entity other than a Permitted Assignee, then, effectiveas of the first day of the next full calendar month following the such first and secondanniversaries of the Expansion Space Commencement Date, as the case may be, the amount of theAdditional Deposit shall decrease by $100,000 so that total Security Deposit following the firstanniversary of the Expansion Space Commencement Date shall be reduced to $530,230, and followingthe second anniversary of the Expansion Space Commencement Date shall be reduced to $430,230, whichamount shall remain as the Security Deposit for the remainder of the Term.     9. **Option to Expand****.**Section 2.6 of the Original Lease, the Option to Expand,is hereby deleted in its entirety.     10. **Right to Cancel****.**Section 2.4 of the Original Lease is hereby deleted and thefollowing is hereby inserted in lieu thereof:     Notwithstanding anything to the contrary contained in this Lease, if Tenant is not in defaultbeyond applicable notice and cure periods as of the date it delivers a Cancellation Notice (asdefined below) and as of the Early Expiration Date (as defined below), Tenant may terminate thisLease effective upon the last day of the sixty-sixth (66th) full calendar monthfollowing the Expansion Space Commencement Date (the “Early Expiration Date”), by delivery of awritten notice (the “Cancellation Notice”) and the applicable Termination Payment (as describedbelow) to Landlord no later than the last day of the fifty-fourth (54th) full calendarmonth following the Expansion Space Commencement Date. The Termination Payment due to Landlordshould Tenant elect to terminate this Lease shall be the unamortized value, determined as hereinprovided, of the “Lease Transaction Costs” as of the Early Expiration Date. For purposes hereof,the Lease Transaction Costs shall mean the sum of (i) $1,340,884.38 (the “Original LeaseTransaction Costs”), and (ii) $646,055.00 (the “Expansion Transaction Costs”). For the purpose ofdetermining the Termination Payment, the Original Lease Transaction Costs (with interest thereonat the cost to Landlord to obtain funds to pay such obligations) shall be amortized on astraight-line basis over the initial ten (10) Lease Years of the Term, and the ExpansionTransaction Costs (with interest thereon at the cost to Landlord to obtain funds to pay suchobligations) shall be amortized on a straight-line basis over the remainder of the Expansion Termfollowing the Expansion Space Rent Commencement Date. The unamortized values shall be measured byLandlord as of the Early Expiration Date. Upon the Expansion Space Commencement Date, Landlord andTenant shall execute a Lease Commencement Date Agreement in the form attached to the Lease asExhibit J that stipulates the amount of the Termination Payment.
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     If Tenant validly terminates this Lease as herein provided, this Lease shall terminateas of the Early Expiration Date as if such date were the original Term Expiration Date setforth in this Lease and Tenant will vacate and surrender the Premises on the Early ExpirationDate in the condition required by Subsection 6.1.2.     11. **Brokers****.**Landlord and Tenant each represents and warrants to the other thatit has not dealt with any broker, agent or finder in connection with this Second Amendmentother than Studley and Jones Lang LaSalle (the “Brokers”). Tenant shall indemnify and holdLandlord harmless from and against any claim for brokerage or other commission to any brokersother than the Brokers based upon any act or conduct of Tenant. Landlord shall pay thecommission due and owing to the Brokers pursuant to a separate written agreement. Landlord shallindemnify and hold Tenant harmless, from and against any claim for brokerage or othercommission to any brokers other than the Brokers based upon any act or conduct ofLandlord.     12. **No Further Modifications****.**Except as specifically herein modified, allother terms and conditions of the Lease shall remain unchanged and in full force and effect,and are hereby ratified by both Landlord and Tenant as if fully set forth in this SecondAmendment.     13. **Exhibit J****.**A new Exhibit J in the form attached hereto is herebyattached to and made a part of the Lease.     14. **Capitalized Terms****.**Capitalized terms used in this Second Amendment andnot otherwise defined shall have the meaning ascribed to such terms in the Lease.     IN WITNESS WHEREOF, the parties have duly executed this Second Amendment to Leaseeffective as of the date first written above. This instrument may be executed in multiplecounterparts, each of which shall be identical in form and content and shall constitute anoriginal of the document to be retained by the respective parties hereto.      **LANDLORD:**