Document:

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                                                                    Exhibit 4.26

                         REGISTRATION RIGHTS AGREEMENT

     Agreement made as of this 21st day of February, 2001 between AVERY
COMMUNICATIONS, INC., a Delaware corporation (the "Company"), WATERSIDE CAPITAL
CORPORATION, a Virginia corporation ("WSCC") and CAPITALSOUTH PARTNERS FUND I,
L.P., a Delaware limited partnership ("CapitalSouth" and collectively with WSCC,
the "Investors").

                                R E C I T A L:

     A.   The Company and the Investors desire to enter into this Registration
Rights Agreement to provide for registration rights with respect to the common
stock of the Company into which the Series H Preferred Stock of the Company held
by the Investors is convertible.

1.   CERTAIN DEFINITIONS.
     -------------------

     Section 1.     As used in this Agreement, the following terms shall have
the following meanings:

          1.1.  Commission means the Securities and Exchange Commission, or any
                ----------
other federal agency at the time administering the Securities Act and the
Exchange Act.

          1.2.  Common Stock means (i) the Company's Common Stock, $0.01 par
                ------------
value, as authorized on the date of this Agreement, (ii) any other capital stock
of any class or classes (however designated) of the Company, authorized on or
after the date hereof, the holders of which shall have the right, without
limitation as to amount, either to all or to a share of the balance of current
dividends and liquidating dividends after the payment of dividends and
distributions on any shares entitled to preference, and the holders of which
shall ordinarily, in the absence of contingencies or in the absence of any
provision to the contrary in the Company's Articles of Incorporation, be
entitled to vote for the election of a majority of directors of the Company
(even though the right so to vote has been suspended by the happening of such a
contingency or provision), and (iii) any other securities into which or for
which any of the securities described in (i) or (ii) may be converted or
exchanged pursuant to a plan of recapitalization, reorganization, merger, sale
of assets or otherwise.

          1.3.  Exchange Act means the Securities Exchange Act of 1934, or any
                ------------
similar federal statute, and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.

          1.4.  Holders has the meaning set forth in Section 2.1.
                -------

          1.5.  Person means an individual, corporation, partnership, limited
                ------
liability company, joint venture, trust or unincorporated organization or a
government or any agency or political subdivision thereof.

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          1.6.  Preferred Shares means the shares of the Company's Preferred
                ----------------
Stock (as defined in the Purchase Agreement) purchased by the Investors pursuant
to the Purchase Agreement.

          1.7.  Purchase Agreement means the Series H Preferred Stock Purchase
                ------------------
Agreement dated the date hereof among the Company, the Investors and the
principal shareholder of the Company.

          1.8.  Registrable Securities means the Common Stock into which the
                ----------------------
Preferred Shares are convertible excluding (i) Registrable Securities for which
a Registration Statement relating to the sale thereof shall have become
effective under the Securities Act and which have been sold or otherwise
distributed under such Registration Statement or (ii) Registrable Securities
which the Holder thereof may sell in any one three month period pursuant to Rule
144 under the Securities Act (or such successor rule as may be adopted).

          1.9.  Securities Act means the Securities Act of 1933, or any similar
                --------------
federal statute, and the rules and regulations of the Commission thereunder, all
as the same shall be in effect at the time.

2.   REGISTRATION RIGHTS.
     -------------------

     Section 2.1.  Piggyback Registration. If at any time or times after the
                   ----------------------
date hereof until the fifth anniversary of this Agreement, the Company shall
determine to register any of its Common Stock or securities convertible into or
exchangeable for Common Stock under the Securities Act whether in connection
with a public offering of securities by the Company (a "primary offering"), a
public offering thereof by stockholders (a "secondary offering"), or both (but
not in connection with a registration effected solely to implement an employee
benefit plan or a transaction to which Rule 145 or any other similar rule of the
Commission under the Securities Act is applicable), the Company will promptly
give written notice thereof to the holders of Registrable Securities (the
"Holders") then outstanding, and will use its best efforts to effect the
registration under the Securities Act of all Registrable Securities which the
Holders may request in a writing delivered to the Company within 15 days after
the notice given by the Company; provided, however that in the case of the
registration of Common Stock by the Company in connection with an underwritten
public offering, the Company shall not be required to register Registrable
Securities of the Holders in excess of the amount, if any, of Registrable
Securities which the principal underwriter of an underwritten offering shall
reasonably and in good faith agree can be included without jeopardizing the
success of the offering by the Company, and provided, further, that if any
Registrable Securities are not included for this reason, the Company will permit
the Holders of Registrable Securities who have requested participation and all
other holders of securities of the Company having a right to include securities
in such registration who have requested participation in the offering to
participate in the offering proportionately in accordance with the number of
shares of Registrable Securities (in the case of the Investors) or shares of
Common Stock subject to such registration right (in the

                                       2
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case of such other holders) owned or obtainable by them, except that the Company
shall first exclude from such registration, in the following order, all shares
of Common Stock sought to be included therein by (i) any holder thereof not
having any such contractual, incidental registration rights (which the Holders
acknowledge may from time to time be granted by the Board of Directors of the
Company to directors and officers of the Company) and (ii) any holder thereof
having contractual, incidental registration rights subordinate and junior to the
rights of the Holders of Registrable Securities. Without in any way limiting the
types of registrations to which this Section 2.1 shall apply, in the event that
the Company shall effect a "shelf registration" under Rule 415 under the
Securities Act, or any other similar rule or regulation, the Company shall take
all necessary action, including, without limitation, the filing of post-
effective amendments, to permit the Investors to include its Registrable
Securities in such registration in accordance with the terms of this Section
2.1. In connection with any offering under this Section 2.1 involving an
underwriting, the Company shall not be required to include any Registrable
Securities in such underwriting unless the Holders thereof accept the terms of
the underwriting as agreed on between the Company and the underwriter selected
by the Company. The Company shall have the right to postpone or withdraw any
registration effective pursuant to the Section 2.1 without obligation to any
Holder.

     Section 2.2.  Registration Expenses. On a registration described in Section
                   ---------------------
2.1, all reasonable expenses of registration and offering of the Company and the
Holders participating in the offering including, without limitation, printing
expenses, fees and disbursements of counsel and independent public accountants,
fees and expenses (including counsel fees of not more than one counsel selected
by the selling Holders to represent the selling Holders) incurred in connection
with complying with state securities or "blue sky" laws, fees of the National
Association of Securities Dealers, Inc. or any stock exchange and fees of
transfer agents and registrars, shall be borne by the Company, except that the
Holders shall bear (i) underwriting commissions and discounts attributable to
their Registrable Securities being registered, (ii) selling commissions and
(iii) the fees and expenses of a selling Holders' own counsel (other than the
counsel selected to represent all selling Holders).

     Section 2.3.  Further Obligations of the Company. Whenever under the
                   ----------------------------------
preceding sections of this Agreement the Company is required to register
Registrable Securities, it shall also do the following:

                    2.3.1  Use its best efforts to diligently prepare for filing
with the Commission a registration statement and such amendments and supplements
to such registration statement and the related prospectus as necessary to keep
such registration statement effective and to comply with the provisions of the
Securities Act with respect to the sale of securities covered by such
registration statement for the period necessary to complete the proposed public
offering,

                    2.3.2  Furnish to each selling Holder such copies of each
preliminary and final prospectus and such other documents as such holder may
reasonably request to facilitate the public offering of his Registrable
Securities;

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                    2.3.3  Enter into any underwriting agreement with provisions
reasonably required by the proposed underwriter for the selling Holders, if any;

                    2.3.4  Use its best efforts to register or qualify the
Registrable Securities covered by such registration statement under the
securities or "blue-sky" laws of such jurisdictions as any selling Holder of
Registrable Securities may reasonably request, provided that the Company shall
not be required to register in any states which shall require it to qualify to
do business or subject itself to general service of process as a condition of
such registration;

                    2.3.5  Notify the selling Holders (i) when a registration
statement has become effective and when any post-effective amendments and
supplements thereto become effective, (ii) of any requests by the Commission or
any state securities authority for amendments and supplements to a registration
statement and prospectus or for additional information after the registration
statement has become effective, (iii) of the issuance by the Commission or any
state securities authority of any stop order suspending the effectiveness of a
registration statement or the initiation of any proceedings for that purpose,
(iv) if, between the effective date of a registration statement and the closing
of any sale of Registrable Securities covered thereby, the Company receives any
notification with respect to the suspension of the qualification of the
Registrable Securities for sale in any jurisdiction or the initiation of any
proceeding for such purpose, and (v) of the happening of any event during the
period the registration statement is effective which makes any statement made in
such registration statement or the related prospectus untrue in any material
respect or which requires the making of any changes in such registration
statement or prospectus in order to make the statements therein not misleading;

                    2.3.6  Make reasonable efforts to obtain the withdrawal of
any order suspending the effectiveness of a registration statement;

                    2.3.7  Cooperate with the selling Holders to facilitate the
timely preparation and delivery of certificates representing Registrable
Securities to be sold pursuant to such registration statement and not bearing
any restrictive legends and registered in such names as the selling Holders may
reasonably request at least five days before the closing of any sale of
Registrable Securities;

                    2.3.8  On the occurrence of any event contemplated by
Section 2.3.5(v) above, use reasonable efforts to prepare a supplement or post-
effective amendment to a registration statement or the related prospectus or any
document incorporated therein by reference or file any other required documents
so that, as thereafter delivered to the purchasers of the Registrable
Securities, such prospectus will not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading. The
Company shall notify the selling Holders to suspend use of the prospectus as
soon as reasonably practicable and the selling Holders shall suspend use of the
prospectus until the Company has amended or supplemented the prospectus to
correct such mistake or omission. At such time as such public disclosure is

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otherwise made or the Company determines in good faith that such disclosure is
not necessary the Company shall promptly to notify the selling Holders of such
determination, amend or supplement the prospectus if necessary to correct any
untrue statement or omission therein and furnish the selling Holders such
numbers of copies of the prospectus as so amended or supplemented as the selling
Holders may reasonably request; and

                    2.3.9  Use best efforts to cause the Registrable Securities
to be listed on any stock exchange or quotation system on which the Common Stock
has been listed.

     Section 2.4  Company's Right to Delay Registration.  If at the time of any
                  -------------------------------------
request to register Registrable Securities under Section 2.1 the Company is
engaged or has fixed plans to engage within 90 days of the time of the request
in a registered public offering as to which the Holders of Registrable
Securities may include Registrable Securities pursuant to Section 2.1, or is
engaged in any other activity which, in the good faith determination of the
Company's Board of Directors, would be adversely effected by the requested
registration to the material detriment of the Company, then the Company may, at
its option, direct that such requests be delayed for a period not in excess of
four months from the effective date of such offering or the date of commencement
of such other material activity, as the case may be or, if earlier, such time as
any such material detriment would not occur.

3.   INDEMNIFICATION.  Incident to any registration referred to in this
     ---------------
Agreement, and subject to applicable law, the Company will indemnify each
underwriter, each Holder of Registrable Securities so registered, and each
person controlling any of them within the meaning of the Securities Act or the
Exchange Act against all claims, losses, damages and liabilities, including
legal and other expenses reasonably incurred in investigating or defending
against the same, arising out of any untrue statement of a material fact
contained in any prospectus or other document (including any related
registration statement) or any omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, or arising out of any violation by the Company of the Securities
Act, any state securities or "blue-sky" laws or any rule or regulation
thereunder in connection with such registration; provided, however, that the
Company will not be liable in any case to the extent that any such claim, loss,
damage or liability may have been caused by an untrue statement or omission
based on information furnished in writing to the Company by such Holder
expressly for use therein. Upon any registration of any of the Registrable
Securities under the Securities Act pursuant to this Agreement, each seller of
Registrable Securities, jointly and severally, will indemnify and hold harmless
the Company, each of its directors and officers and each underwriter (if any)
and each person, if any, who controls the Company or any such underwriter within
the meaning of the Securities Act or the Exchange Act against any claim, losses,
damages and liabilities, including legal and other expenses reasonably incurred
in investigating or defending it against the same, arising out of any untrue
statement of a material fact contained in any prospectus or other document
(including any related registration statement) or any omission to state therein
a material fact required to be stated therein or necessary to make the statement
therein not misleading, if the statement or omission was made in reliance on and
in conformity with information furnished in writing to the Company by or on
behalf of such selling Holder,

                                       5
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specifically for use in connection with the preparation of such registration
statement, prospectus amendment of supplement; provided, however, that the
obligations of such selling Holders hereunder shall be limited to an amount
equal to the proceeds to each Holder of Registrable Securities sold as
contemplated herein.

4.   RULE 144 REQUIREMENTS.  The Company shall use its best efforts to take all
     ---------------------
action as may be required as a condition to the availability of Rule 144 under
the Securities Act (or any successor exemptive rule afterwards in effect).

5.   TRANSFER OF REGISTRATION RIGHTS.  The registration rights of the Holders
     -------------------------------
under this Agreement may be transferred to any transferee of any Preferred Share
or any Registrable Securities who (i) is a Holder of Registrable Securities,
(ii) is an affiliate, as that term is defined in regulations promulgated by the
Commission under the Exchange Act, of a Holder of Registrable Securities
(including a partner of such Holder) or (iii) acquires Registrable Securities or
Preferred Shares. Each such transferee shall be deemed to be a "Holder" for
purposes of this Agreement; provided that no transfer of registration rights by
a Holder under this Section 5 shall create any additional rights in the
transferee beyond those rights granted to Holders in this Agreement.

6.   COVENANTS OF HOLDERS.  Each Holder of Registrable Securities that plans to
     --------------------
participate in a distribution pursuant to a Registration Statement shall furnish
to the Company such information regarding such Person and its affiliates and the
distribution of such Registrable Securities as the Company may from time to time
reasonably require for inclusion in such Registration Statement. Such
information at the time any Registration Statement and any amendment thereto
becomes effective, and at the time any Prospectus or supplement thereto forming
a part of any Registration Statement is delivered in any offering of Registrable
Securities, shall not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary (in the case of
the Prospectus, in light of the circumstances which they were made) to make the
statements therein not misleading. The Holders shall advise the Company and, if
requested by the Company, confirm such advice in writing in the event that the
Holders become aware of the happening of any event that requires the making of
any changes in a Registration Statement or Prospectus so that as of such dates
the statements therein provided by the Holders specifically for inclusion
therein are not misleading and do not omit to state a material fact required to
be stated therein or necessary to make the statements therein (in the case of
the Prospectus, in light of the circumstances under which they were made) not
misleading.

7.   SUSPENSION OF OFFERINGS IN CERTAIN CIRCUMSTANCES. The Company shall be
     ------------------------------------------------
entitled for the period referred to below to postpone the filing of any
Registration Statement or the taking of any other action otherwise required to
be prepared, filed or taken by it pursuant hereto and/or to direct the
suspension of any public offering, sale or distribution of Registrable
Securities if the Board of Directors of the Company determines in good faith
that any disclosure that would be required in connection therewith would have a
material adverse effect on the Company or any financing, acquisition,
disposition, merger, business combination,

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corporate reorganization, or other transaction or development involving the
Company or any subsidiary of the Company (a "Business Development
Determination"). Such postponement or direction shall continue until such time
as the Board of Directors of the Company determines that the preparation and/or
filing of such Registration Statement or the taking of any such action and/or
such public offering, sale or distribution would no longer have a material
adverse effect on the Company or any such transaction but shall not, in any
event, exceed 30 days for any particular Business Development Determination or
60 days for all Business Development Determinations during any twelve month
period. No Business Development Determination shall occur within 180 days of the
expiration of a postponement or suspension caused by another Business
Development Determination. The Board shall, as promptly as practicable, give the
Holders written notice of any Business Development Determination.

8.   MISCELLANEOUS.
     -------------

     Section 8.1.  No Waiver; Cumulative Remedies. No failure or delay on the
                   ------------------------------
part of any party to this Agreement in exercising any right, power or remedy
hereunder shall operate as a waiver thereof; nor shall any single or partial
exercise of any such right, power or remedy preclude any other or further
exercise thereof or the exercise of any other right, power or remedy hereunder.
These remedies are cumulative and not exclusive of any remedies provided by law.

     Section 8.2.  Amendments and Waivers.  Except as provided below, amendments
                   ----------------------
to this Agreement shall require and shall be effective on receipt of the written
consent of: (i) the Company and (ii) the holders of at least a majority in
interest of the Registrable Securities. Except as provided below, compliance
with any covenant or provision in this Agreement may be waived on written
consent by the party or parties whose rights are being waived; provided, that,
                                                               --------------
if the rights of holders of Registrable Securities are being waived, only with
the written consent of the holders of at least a majority in interest of the
Registrable Securities. Notwithstanding the foregoing, no waivers or amendments
shall be effective to reduce the percentage in interest of the Registrable
Securities the consent of the holders of which is required under this Section.
Any waiver or amendments may be given subject to satisfaction of conditions
stated therein and any waiver or amendments shall be effective only in the
specific instance and for the specific purpose for which given.

     Section 8.3.  Addresses for Notices.  All notices, requests demands and
                   ---------------------
other communications required by this Agreement shall be in writing (including
telegraphic communication) and mailed, telegraphed or delivered to each
applicable party at the address set forth in the Purchase Agreement  or at such
other address any party may inform the party in writing in compliance with this
Section.

     All such notices, requests, demands and other communications shall, when
mailed (which mailing must be accomplished by first class mail, postage prepaid,
electronic facsimile transmission, express overnight courier service, or
registered mail, return receipt requested) or telegraphed, and shall be
considered to be delivered two days after dispatch.

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<PAGE>

     Section 8.4.  Binding Effect; Assignment.  This Agreement shall bind and
                   --------------------------
inure to the benefit of the parties and their respective heirs, successors and
assigns, except that the Company shall not have the right to delegate its
obligations hereunder or to assign its rights hereunder or any interest herein
without the prior written consent of the holders of at least a majority in
interest of the Registrable Securities.

     Section 8.5.  Prior Agreements.  This Agreement constitutes the entire
                   ----------------
agreement between the parties and supersedes any prior understandings or
agreements concerning the subject matter hereof, including without limitation
the Original Registration Rights Agreement.

     Section 8.6.  Severability.  The provisions of this Agreement are severable
                   ------------
and, in the event that any court of competent jurisdiction shall determine that
any one or more of the provisions or part of a provision contained in this
Agreement, for any reason, is invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other
provision or part of a provision of this Agreement, but this Agreement shall be
reformed and construed as if such invalid or illegal or unenforceable provision,
or part of a provision, had never been contained herein, and such provisions or
part reformed so that it would be valid, legal and enforceable to the maximum
extent possible.

     Section 8.7.  Jurisdiction and Venue.  The Company consents to the
                   ----------------------
jurisdiction of the Circuit Court of the City of Norfolk, Virginia and the
United States District Court for the Eastern District of Virginia, Norfolk
Division, for the purpose of any suit, action or other proceeding arising out of
any of its obligations arising under this Agreement or with respect to the
transactions contemplated hereby, and expressly waives any and all objections it
may have as to venue in such court.

     Section 8.8.  Headings.  Article, section and subsection headings in this
                   --------
Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose.

     Section 8.9.  Counterparts.  This Agreement may be executed in any number
                   ------------
of counterparts, all of which taken together shall constitute one and the same
instrument, and any of the parties hereto may execute this Agreement by signing
any such counterpart.

     Section 8.10.  Further Assurances.  From and after the date of this
                    ------------------
Agreement, on the request of any party, the other parties shall execute and
deliver such instruments documents and other writings as may be reasonably
necessary or desirable to confirm and carry out and to effectuate fully the
intent and purposes of this Agreement.

                                       8
<PAGE>

     IN WITNESS, the undersigned have executed this Registration Rights
Agreement as the day and year first above written.

                                      AVERY COMMUNICATIONS, INC.

                                      By /s/ SCOT MCCORMICK
                                        --------------------------------------
                                        Scot McCormick, VP, CFO, and Secretary

                                      WATERSIDE CAPITAL CORPORATION

                                      By /s/ MARTIN SPERONI
                                        --------------------------------------
                                      Name   Martin Speroni
                                          ------------------------------------
                                      Title  Vice President
                                           -----------------------------------

                                      CAPITALSOUTH PARTNERS FUND I, L.P.

                                      By /s/ JOSEPH B. ALBA, III
                                        --------------------------------------
                                             Joseph B. Alala, III, President

                                       9<PAGE>

                                                                   Exhibit 10.10

                              SUBLEASE AGREEMENT
                              ------------------

AGREEMENT OF SUBLEASE made as of the1st day of September, 2000, by and between
InteCardia, Inc., a Delaware corporation ("Sublessor"), and Pozen Inc., a
Delaware corporation ("Sublessee").

                             W I T N E S S E T H:

     WHEREAS, "Sublessor" is the Lessee under a certain Lease Agreement dated
September 18, 1996, as amended by the First Lease Amendment dated July 14, 1998
(collectively, the "Lease") with Property Reserve, Inc. (successor-in-interest
to I-40 Properties) ("Lessor") as Lessor, pertaining to approximately 6,266
square feet of office space located at 6330 Quadrangle Drive, Five Quadrangle
Building, The Quadrangle Office Park, Durham, North Carolina (the "Premises"), a
copy of which is attached hereto as Exhibit "A" and made a part hereof; and
                                    -----------

     WHEREAS, Sublessee desires to Sublease approximately 1286 square feet of
the Premises (the "Subleased Premises") from Sublessor and Sublessor desires to
sublease the Subleased Premises to Sublessee, subject to the terms and
conditions of this Sublease Agreement.

     NOW, THEREFORE, in consideration of the premises, which are incorporated
herein by reference, and of the terms, conditions and covenants set forth herein
and other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto, intending to be legally bound, hereby
agree as follows:

     1.   Subleased Premises.  Sublessor hereby sublets to Sublessee, and
          ------------------
Sublessee hereby subleases from Sublessor, the Subleased Premises, shown as
Exhibit "B" attached hereto and made a part hereof, and consisting of
-----------
approximately 1286 rentable square feet of office space, situated at Suite 110,
6330 Quadrangle Drive, Durham County, North Carolina.

     2.   Term of Sublease. The term (the "Term") of this Sublease shall
          ----------------
commence on the later of: (i) receipt of written consent from Lessor and (ii)
the 1/st/ day of September, 2000 (the "Commencement Date"), and shall end on the
31/st/ day of December, 2002 (or until such term shall sooner cease or expire as
hereinafter provided) (the "Termination Date"). If the Term commences on a date
other than the Commencement Date, Sublessor and Sublessee shall execute a
memorandum setting forth the actual date of commencement of the Term. Possession
of the Premises shall be delivered to Sublessee on the commencement of the Term.
<PAGE>

     3.   The Lease.
          ---------

          (a)  Sublessor represents and warrants that it has full right, power
and authority under the Lease to enter into this Sublease subject to Lessor's
consent as provided therein.  Sublessor further represents and warrants that, to
its knowledge, the Lease is in full force and effect and that it is not in
default under any of the terms of the Lease.

          (b)  Sublessee acknowledges that it has reviewed and is familiar with
all of the terms, covenants and conditions of the Lease that are incorporated
herein and made a part hereof.  Sublessee assumes and agrees to perform, observe
and comply with all of the terms, covenants and conditions on the Lessee's part
to be performed, observed and complied with under the Lease as the same may or
shall be related to the occupancy of the Subleased Premises. This Sublease is
expressly made subject to all of the terms, covenants and conditions of the
Lease.  In the event of a conflict between the terms of the Lease and this
Agreement of Sublease, the terms of the Lease shall control.

     4.   Occupancy.
          ---------

          (a)  Sublessee shall use and occupy the Subleased Premises solely for
general office purposes.  Sublessee has conducted an inspection, or been
afforded the opportunity to inspect, the Subleased Premises and shall accept the
Subleased Premises "as is," "where is," and "with all faults."  Sublessor is not
required to make any repairs or alterations to prepare the Subleased Premises
for Sublessee's occupancy.

          (b)  Sublessee covenants that it will occupy the Subleased Premises in
accordance with the terms of the Lease and will not suffer to be done or omit to
do any act that may result in a violation of or a default under any of the terms
and conditions of the Lease, or render Sublessor liable for any charge or
expense arising out of, by reason of, or resulting from, Sublessee's failure to
perform or observe any of the terms and conditions of the Lease pertaining to
Subleased Premises.

     5.   Rent.
          -----

          Sublessee shall pay to Sublessor base rent as specified below:

<TABLE>
<CAPTION>
                            Rent Rate   Square
                            Per Square  Foot of   Annual   Monthly
         Period             Foot        Premises  Rent     Rent
------------------------    ----        --------  ----     ----
<S>                         <C>         <C>       <C>      <C>
Sept. 2000-Dec. 31, 2000    $19.50      1286      $25,077  $ 2089.75
Jan. 2001-Dec. 2001         $20.00      1286      $25,720  $2,143.33
Jan. 2002-Dec. 31, 2002     $20.50      1286      $26,363  $2,196.92
</TABLE>

     In addition, Sublessee shall be obligated to pay to Sublessor all amounts
the Sublessor shall be obligated to pay to Landlord under Section 5 of the Lease
based on the
<PAGE>

amount of square footage contained in the Subleased Premises. The amount of the
operating expense pass-through for the period from the Commencement Date until
December 31, 2000 shall be $0.096298 per square foot. (the "additional rent")
The amount of the additional rent shall be added to the base rent each month.
Base rent and additional rent shall be paid five (5) days in advance of the
first day of each month. If all rent payable hereunder has been paid in full,
any excess shall be refunded to Sublessee. As soon as Sublessor is advised by
Landlord of the amount of the operating expense pass through for the next fiscal
year, Sublessor shall notify Sublessee of Sublessee's pro rata portion of such
operating expense pass through and Sublessee shall include such amount as
additional rent. If Sublessor receives notice from Landlord that Sublessor is
responsible for any additional charges for operating expense pass throughs after
Landlord's final calculation of operating expenses for any fiscal year,
Sublessee shall be obligated to pay its proportionate share of such amount
within twenty-five days after notice thereof. In addition, if there has been any
excess payments of operating expense pass throughs, Sublessee shall be entitled
to its proportionate share of any such excess.

     6.   Casualty, Condemnation and/or Termination.  If the whole or any part
          -----------------------------------------
of the Subleased Premises shall be taken or condemned in any manner by any
competent authority for any public or quasi-public use, or if the Lessor under
the Lease shall terminate the Lease as provided in the Lease by reason of
Casualty or otherwise as permitted therein, in any such event, the term of this
Agreement of Sublease shall cease and terminate as of the date of vesting of
title or such condemnation or termination as the case may be.

     7.   Quiet Enjoyment.  Sublessor covenants and agrees with Sublessee that,
          ---------------
provided Sublessee pays and performs all of its covenants, agreements and
obligations under this Sublease, Sublessee may peaceably and quietly enjoy the
Subleased Premises, subject, nevertheless, to the terms and conditions of this
Agreement of Sublease and the Lease.

     8.   Sublessor.  The term "Sublessor" as used in this Agreement of Sublease
          ---------
refers to the Lessee under the Lease at the time in question, so that if the
Lease shall be assigned, such covenants, conditions and agreements shall be
binding upon each successor assignee.

     9.   Indemnity.  Each party hereto does hereby agree to indemnify the other
          ---------
and hold the other harmless, of and from any claim, damage, liability, cost or
expense, including reasonable attorney's fees, which either may suffer or incur
by reason of the failure of the other to perform, observe and comply with any of
the terms, covenants and conditions of this Agreement of Sublease or the Lease,
as such terms, covenants and conditions may affect the Subleased Premises.

     10.  Attorney's Fees.  If Sublessor, Sublessee, or Broker shall commence an
          ---------------
action against the other arising out of or in connection with this Sublease, the
prevailing party shall be entitled to recover its costs of suit and reasonable
attorney's fees.
<PAGE>

     11.  Consent of Lessor Under Lease.  This Agreement of Sublease is executed
          -----------------------------
subject to the written consent of the Lessor.

     12.  Notices.  Any and all notices that are or may be required to be given
          -------
pursuant to the terms of this Agreement of Sublease or the Lease shall be sent
by Certified Mail, Return Receipt Requested, to the parties hereto at their
respective addresses set forth below:

     SUBLESSOR:                               SUBLESSEE:
     ---------                                ---------

  InteCardia, Inc.                       Pozen, Inc.
  6330 Quadrangle Drive                  6330 Quadrangle Drive
  Suite 180                              Suite 240
  Chapel Hill, NC 27514                  Chapel Hill, NC 27514

     13.  Binding Effect.  The covenants, conditions and agreements contained
          --------------
herein shall be binding upon and inure to the benefit of Sublessor and Sublessee
and their respective heirs, executors, administrators, successors and permitted
assigns.

     14.  Governing Law.  This Agreement of Sublease is entered into in the
          -------------
State of North Carolina, and its validity and interpretation shall be construed
in accordance with the laws of that State.

        [The remainder of this page intentionally has been left blank.]
<PAGE>

IN WITNESS WHEREOF, Sublessor and Sublessee have each caused this Agreement of
Sublease to be executed by its duly authorized partner of officer and the
appropriate corporate seals have been hereunto affixed all as of the day and
year first written.

ATTEST:                             INTECARDIA, INC.

By: /s/ John F. Forbis     [Corporate Seal]  By: /s/ William J. Kane, M.D.(Seal)
    -------------------                          -------------------------

Its: Secretary                               Its: President and CEO
     ------------------                           -----------------

ATTEST:                                      POZEN, INC.

By: /s/ Helga L. Leftwich  [Corporate Seal]   By: /s/ John R. Plachetka (Seal)
    ---------------------                         ---------------------

Its: Assistant Secretary                      Its: President and CEO
     -------------------                           -----------------

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