Document:

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                                                                   Exhibit 10.22

                                 STANDARD LEASE

SUITES 122, 123, 124 AND 125                            LINCOLN PARK WEST #102
----------------------------                            ----------------------

        This Lease is made by and between the Landlord and Tenant named below.

                         ARTICLE 1. - BASIC LEASE TERMS

                                                            For purposes of this
Lease, the following terms shall have the meanings set forth below:

1.1    Landlord.  Parker-Raleigh Development XXXII, Limited Partnership
       --------

1.2    Tenant.    Paradigm Genetics, Inc., a North Carolina corporation, whose
       ------
Trade Name, if any, is n/a

1.3    Manager.   Parker Lincoln Developers, Inc.
       -------

          1.4  Building. The Building (including the Premises) known as 2933 S.
               --------
MIAMI BOULEVARD, DURHAM, NC, 27703, located on that tract of land (the "Land")
described on EXHIBIT A hereto, together with all other buildings, structures,
fixtures and other improvements (the "Buildings") located thereon from time to
time, being presently as depicted on the drawing (the "Site Plan") attached
hereto as EXHIBIT B. The Building, Buildings and the Land are collectively
referred to herein as the "Property."

          1.5  Premises. The floor space and interior wall and ceiling space of
               --------
that portion of the Building outlined in red or highlighted on Exhibit C
attached hereto, resulting in an aggregate of approximately 20,372 square feet
of gross leasable area known as SUITES 122, 123, 124 AND 125.

          1.6 Lease Term. 3 years, 0 months and 0 days beginning on the Rental
              ----------
Commencement Date.

          1.7 Commencement Date. The "Commencement Date" shall be the earlier of
              -----------------
the date Tenant takes possession of the Premises or ten (10) days after Landlord
notifies Tenant that the Premises are, or will be by a date certain, ready for
Tenant to take possession. The Commencement Date shall constitute the
commencement of the term of this Lease for all purposes, whether or not Tenant
has actually taken possession. By mutual agreement of the parties, the
Commencement Date may be changed. Within thirty (30) days after the Commencement
Date, Landlord and Tenant will execute an acknowledgment of the Commencement and
Expiration Dates in the form attached hereto as EXHIBIT D. Notwithstanding
anything herein to the contrary, the Lease Term shall extend through and end on
the last day of the last month of the Term. If Tenant is permitted access to the
Premises prior to the Commencement Date, such early entry will be subject to all
the terms and provisions of this Lease as though the Commencement Date had
occurred, unless otherwise agreed to in writing by Landlord.

<TABLE>
<CAPTION>
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          1.8  Base Rent. Base Rent is:
---------------------------------------------------------------------------------------------------------------------
          MONTHS                   PER SQUARE FOOT                   ANNUALLY                      MONTHLY
---------------------------------------------------------------------------------------------------------------------
<S>                          <C>                                 <C>                           <C>
1 through 12                    $5.90 per square foot                       $120,194.80                    $10,016.23
---------------------------------------------------------------------------------------------------------------------
13 through 24                   $6.11 per square foot                       $124,472.92                    $10,372.74
---------------------------------------------------------------------------------------------------------------------
25 through 36                   $6.32 per square foot                       $128,751.04                    $10,729.25
---------------------------------------------------------------------------------------------------------------------
</TABLE>

1.9     Security Deposit.  Security Deposit is $11,527.15.
        ----------------

1.10    Addresses.
        ---------
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<TABLE>
<CAPTION>
<S>                       <C>                                  <C>                          <C>
LANDLORD'S ADDRESS:       TENANT'S BUSINESS ADDRESS &:         TENANT'S ADDRESS:            MANAGER'S ADDRESS:
                          TENANT'S ADDRESS FOR NOTICE:
                          Attn:  Larry Daquioag & Henry Nowak
                          104 Alexander Drive Bld. #2
                          P.O. Box 14528                       2933-122 S. Miami Blvd.
Post Office Box 58036     Durham, NC 27709-4528                Durham, NC 27703            Post Office Box 58036
Raleigh, NC 27658                                                                          Raleigh, NC 27658
</TABLE>

Landlord, Tenant and Manager, by written notice to the others may change from
time to time the foregoing addresses, and Landlord, by written notice to Tenant,
may notify Tenant from time to time of the appointment of a new Manager and such
new Manager's address.

          1.11  Permitted Use: biogenetics laboratory, plant growth rooms and
                -------------
offices.

          1.12  Common Areas. Such parking areas, streets, driveways, aisles,
                ------------
sidewalks, curbs, delivery passages, loading areas, lighting facilities, and all
other areas situated on or in the Property which are designated by Landlord,
from time to time, for use by all tenants of the Property in common.

          1.13  Proportionate Share. The proportion, expressed as a percentage,
                -------------------
that the gross leasable area in square feet in the Premises bears to the total
number of constructed gross leasable area in square feet in the Building or
Buildings as of the date that the computation is made. The computation shall be
adjusted by Landlord if additional square footage is added to the Building or
Buildings or to the Premises.

          1.14 Estimated Initial Common Area Costs Payment (Includes Common Area
               -------------------------------------------
Maintenance, Taxes and Insurance):

          PSF  $.89         Annual  $ 18,131.08  Monthly  $ 1,510.92
          ---   ---         ------    ---------  -------    --------

          1.15 Total Rental:
               ------------
(The total of the Base Rent for Year One and the Estimated Initial Common Area
Costs Payments for the balance of the calendar year in which the lease
commences.)

                            Annual  $ 138,325.88 Monthly     $ 11,527.15
                            ------    ---------- -------       ---------

          1.16 Guarantor(s). The guarantor(s) of Tenant's obligations under this
               ------------
Lease is (are)
                                                        N/A
                                                        ---

                                       2
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                ARTICLE 2.- GRANTING CLAUSE AND RENT PROVISIONS

          2.1  Grant of Premises. In consideration of the obligation of Tenant
               -----------------
to pay the Base Rent and other charges as provided in this Lease and in
consideration of the other terms and provisions of this Lease, Landlord hereby
leases the Premises to Tenant during the Lease Term, subject to the terms and
provisions of this Lease.

          2.2  Base Rent. Tenant agrees to pay monthly as Base Rent during the
               ---------
term of this Lease the sum of money set forth in Section 1.8 of this Lease,
which amount shall be payable to Landlord at the address shown above or at such
other address that Landlord in writing shall notify Tenant. Tenant shall begin
paving Base Rent and Common Area Costs (as defined below) on November 1, 1999
(the "Rental Commencement Date"). One (1) monthly installment of Base Rent shall
be due and payable on the Rental Commencement Date by Tenant for the first
month's rent and a like monthly installment shall be due and payable on or
before the first day of each calendar month succeeding the Rental Commencement
Date during the term of this Lease, without demand, offset or deduction;
provided, if the Rental Commencement Date should be a date other than the first
day of a calendar month, the monthly rental set forth above shall be prorated to
the end of that calendar month, and all succeeding installments of rent shall be
payable on or before the first day of each succeeding calendar month during the
term of this Lease. Tenant shall pay, as "Additional Rent," all other sums due
under this Lease. Base Rent and Additional Rent are sometimes collectively
referred to herein as "Rent."

          2.3  Common Area Costs. As used in this Lease, the term "Common Area
               -----------------
Costs" shall mean all expenses of Landlord with respect to the maintenance,
servicing, repairing and operation of the Property, including, but not limited
to the following: maintenance, repair, and replacement costs; electricity, fuel,
water, sewer, gas and other utility charges; security, window washing and
janitorial services; trash and snow and ice removal; landscaping and pest
control; management fees payable to Landlord, Landlord's affiliates or third
parties; wages and benefits payable to employees of Landlord whose duties are
directly connected with the operation and maintenance of the Property; all
services, supplies, repairs, replacement or other expenses for maintaining and
operating the Property; the cost, including interest, amortized over its useful
life, of any capital improvement made to the Property by Landlord; after the
date of this Lease which is required under any governmental law or regulation
that was not applicable to the Property at the time it was constructed; the
cost, including interest, amortized over its useful life, of installation of any
device or other equipment which improves the operating efficiency of any system
within the Premises and thereby reduces operating expenses; all other expenses
which generally would be regarded as operating and maintenance expenses which
would reasonably be amortized over a period not to exceed five (5) years; all
real property taxes and installments of special assessments, including dues and
assessments by means of deed restrictions and/or owner's association which
accrue against the Property during the term of this Lease; governmental levies
or charges of any kind or nature assessed or imposed on the Property, whether by
state, county, city or any political subdivision thereof; and all insurance
premiums Landlord is required to pay or deems necessary to pay, including public
liability insurance, with respect to the Property. The term operating expenses
does not include the following: expenses for repairs, restoration or other work
occasioned by fire, wind, the elements or other casualty that are covered by
insurance; income and franchise taxes of Landlord; expenses incurred in leasing
to or procuring of tenants, leasing commissions, advertising expenses and
expenses for the renovating of space for new tenants; interest or principal
payments on any mortgage or other indebtedness of Landlord; compensation paid to
any employee of Landlord above the grade of property manager; any depreciation
allowance or expenses; or operating expenses which are the responsibility of
Tenant. Prior to the Commencement Date, and from time to time thereafter,
Landlord shall deliver to Tenant its estimate of the Common Area Costs to be
incurred during the then-current calendar year. Landlord may adjust the estimate
from time to time during the year to which it relates. All costs shall be
consistent with the Raleigh Durham market.

          2.4  Common Area Costs Payments. Tenant, on the first day of each
               --------------------------
month during the Lease Term shall pay to Landlord, as Additional Rent, without
offset or deduction, an amount equal to one-twelfth (1/12) of Tenant's
Proportionate Share of the estimated Common Area Costs as calculated by Landlord
(prorated for any partial month). The Estimated Initial Common Area Costs
Payment due from Tenant for the balance of the calendar year in which the Lease
commences shall be the sum set forth in Section 1.14 above. All sums payable as
Additional Rent under the terms of this Section shall be subject to adjustment
as provided in Section 2.5.

           2.5 Adjustments to Common Area Costs. Within one hundred twenty (120)
               --------------------------------
days following the end of each calendar year, Landlord shall furnish to Tenant a
statement showing the total actual Common Area Costs for

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the calendar year just expired, the amount of Tenant's Proportionate Share of
the Common Area Costs, and payments made by Tenant during such calendar year
under Section 2.4. If Tenant's Proportionate Share of the actual Common Area
Costs for such calendar year exceeds the aggregate of Tenant's monthly payments
made during the calendar year just expired, Tenant shall pay to Landlord the
deficiency within thirty (30) days after receipt of said statement. If Tenant's
payments exceed Tenant's Proportionate Share of the actual Common Area Costs as
shown on such statement, Tenant shall be entitled to a refund. No portion of the
Common Area Costs paid by Tenant under this Article 2 shall be credited against
Base Rent or any other rental obligations hereunder. Notwithstanding anything
herein to the contrary. Common Area Costs shall be fixed at $.89 per square foot
for the calendar year 1999.

          2.6  Late Payment. Other remedies for nonpayment of Rent
               ------------
notwithstanding, if any payment of Base Rent or additional rent is not received
by Landlord on or before the fifth (5th) day of the month for which the Rent is
due, or if any other payment hereunder due Landlord by Tenant is not received by
Landlord on or before the fifth (5th) day of the month next following the month
in which Tenant was invoiced, Tenant shall also pay (a) a late payment charge of
five percent (5%), but not less than $100.00, of such past due amount and (b)
interest of eighteen percent (18%) per annum or the maximum then allowed by
applicable law, whichever is less, on the remaining unpaid balance, retroactive
to the date originally due until paid.

          2.7  Increase in Insurance Premiums. If an increase in any insurance
               ------------------------------
premiums paid by Landlord for the Property is caused by Tenant's use of the
Premises, or if Tenant vacated the Premises and caused an increase in such
premiums, then Tenant shall pay as Additional Rent the amount of such increase
to Landlord. Tenant agrees to pay any amounts due under this Section within ten
(10) days following receipt of the invoice showing the Additional Rent due.

          2.8  Security Deposit. The Security Deposit set forth in Section 1.9
               ----------------
(if any) shall be held by Landlord for the performance of Tenant's covenants and
obligations under this Lease, it being expressly understood that the Security
Deposit shall not be considered an advance payment of Rent or a measure of
Landlord's damage in case of default hereunder by Tenant, and shall be held by
Landlord without payment of any interest thereon. Upon the occurrence of any
event of default by Tenant under this Lease, Landlord may, from time to time,
without prejudice to any other remedy, use the Security Deposit to the extent
necessary to make good any arrears of Rent, or to repair any damage or injury,
or pay any expense or liability incurred by Landlord as a result of the event of
default or breach of covenant, and any remaining balance of the security deposit
shall be returned by Landlord to Tenant upon the termination of this Lease. If
any portion of the security deposit is so used or applied, Tenant shall upon ten
(10) days written notice from Landlord, deposit with Landlord by cash or
cashier's check an amount sufficient to restore the security deposit to its
original amount. The Security Deposit may be assigned and transferred by
Landlord to the successor in interest of Landlord and, upon acknowledgment by
such successor of receipt of such security and its assumption of the obligation
to account to Tenant for such security in accordance with the terms of this
Lease, Landlord shall thereby be discharged of any further obligation relating
thereto.

          2.9  Notice to Vacate. Tenant shall give written notice to Landlord
               ----------------
one hundred and eighty (180) days prior to the expiration o the Lease Term to
vacate upon expiration of the Lease, to negotiate a renewal or to exercise an
option to renew, if available. Failure to provide such written notice will
indicate that Tenant intends to vacate and Landlord shall have the right to
place signs, for the purpose of marketing, in the windows of the Premises and to
begin showing the Premises to potential new tenants. Landlord shall have the
right to show Premises to prospective Tenants after giving Tenant reasonable
notice. Negotiations of renewal options must be completed within thirty (30)
days from the date Tenant gives written notice to exercise its option to renew.
Notwithstanding the above, Landlord may decide not to renew Tenant's lease at
its sole discretion.

          2.10 Holding Over. If Tenant does not vacate the Premises upon the
               ------------
expiration or earlier termination of this Lease, Tenant shall be a tenant at
sufferance for the holdover period and all of the terms and provisions of this
Lease shall be applicable during that period, except that Tenant shall pay
Landlord (in addition to Additional Rent payable under Section 2.3 and any other
sums payable under this Lease) as Base Rent for the period of such holdover an
amount equal to one and one-half times the Base Rent which would have been
payable by Tenant had the holdover period been a part of the original term of
this Lease (without waiver of Landlord's right to recover damages as permitted
by law). The rental payable during the holdover period shall be payable to
Landlord on demand. No holding over by Tenant, whether with or without the
consent of Landlord shall operate to extend the

                                       4
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term of this Lease. Tenant shall indemnify Landlord against valid, substantive
claims made by any tenant or prospective tenant against Landlord resulting from
delay by Landlord in delivering possession of the Premises to such other tenant
or prospective tenant.

                   ARTICLE 3.- OCCUPANCY, USE AND OPERATIONS

          3.1  Use and Operation of Tenant's Business. Tenant warrants and
               --------------------------------------
represents to Landlord that the Premises shall be used and occupied only for the
purpose as set forth in Section 1.11. Tenant shall occupy the Premises, conduct
its business and control its agents, employees, invitees and visitors in such a
manner as is lawful, reputable and will not create a nuisance to other tenants
in the Property. Tenant shall continuously throughout the Lease Term occupy the
Premises under the Trade Name. Tenant shall at all times operate its business in
a first class manner. Tenant shall not conduct any auction or fire or bankruptcy
sale in the Premises. Tenant shall not solicit business, distribute handbills or
display merchandise within the Common Areas, or take any action which would
interfere with the rights of other persons to use the Common Areas. Tenant shall
not permit any operation which emits any odor or matter which intrudes into
other portions of the Property, use any apparatus or machine which makes undue
noise or causes vibration in any portion of the Property or otherwise interfere
with, annoy or disturb any other tenant in its normal business operations or
Landlord in its management of the Property. Tenant shall neither permit any
waste on the Premises nor allow the Premises to be used in any way which would,
in the opinion of Landlord, be extra hazardous on account of fire or which would
in any way increase or render void the fire insurance on the Property.

          3.2  Signs. Tenant shall be responsible for the installation of a sign
               -----
within thirty (30) days of occupancy in accordance with the sign criteria
attached hereto as EXHIBIT G. No other sign of any type or description shall be
erected, placed or painted in or about the Premises or the Property without
Landlord's prior written consent, which consent shall not be unreasonably
withheld, and Landlord reserves the right to remove, at Tenant's expense, all
signs other than signs approved in writing by Landlord under this Section 3.2,
without notice to Tenant and without liability to Tenant for any damages
sustained by Tenant as a result thereof. Tenant shall be liable to Landlord for
any cost or expense incurred by Landlord in removing such sign and for any
damage caused by the removal of such sign. Landlord reserves the right, in
Landlord's discretion, to permit a sign or signs which deviate from the
Landlord's then-established sign criteria, and such permission by Landlord to
any tenant or tenants shall not give rise to any rights in any other tenants to
object thereto or to require Landlord to permit such other tenant to deviate
from the criteria. Nothing contained herein shall limit Landlord's right to
modify or amend such criteria from time to time.

          3.3  Compliance with Laws, Rules and Regulations.
               -------------------------------------------

          (a) Tenant, at Tenant's sole cost and expense, shall comply with all
laws, ordinances, orders, rules and regulations of state, federal, municipal or
other agencies or bodies having jurisdiction over the use, condition or
occupancy of the Premises. Tenant shall procure at its own expense all permits
and licenses required for the transaction of its business in the Premises.

          (b) The "Americans with Disabilities Act of 1990" (ADA) is a federal
law that prohibits discrimination on the basis of disability. The requirements
of this act vary with the type of business the Tenant is engaged in and the
number of employees the Tenant has both at this, and other locations. The
Landlord is not qualified to determine which provisions of the ADA apply to
Tenant. Therefore, the Tenant shall determine if the Premises complies with the
accessibility guidelines under ADA and advise the Landlord if any physical
modifications to this facility are required to meet the Tenant's needs under
this law, or any other law, code or regulations. Modifications requested by
Tenant to the Premises shall be made by the Landlord, and the Tenant shall pay
Landlord the full cost of the modifications requested. The Tenant shall
indemnify and hold harmless the Landlord and its agents and employees from and
against valid, substantive claims, damages, losses and expenses, including but
not limited to Attorney's fees, arising out of or resulting from the Tenants
compliance or failure to comply with the ADA or other laws, codes or
regulations.

          (c) Tenant will comply with the rules and regulations of the Property
adopted by Landlord attached hereto as EXHIBIT E. If Tenant is not complying
with such rules and regulations, or if Tenant is in any way not complying with
this Article 3, then, notwithstanding anything to the contrary contained herein,
Landlord may, at

                                       5
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its election, and within 24 hours written notice to Tenant, enter the Premises
without liability therefor and fulfill Tenant's obligations. Tenant shall
reimburse Landlord on demand, as Additional Rent, for any expenses which
Landlord may incur in effecting compliance with Tenant's obligations and agrees
that Landlord shall not be liable for any damages resulting to Tenant from such
action. Landlord shall have the right at all times to change and amend the rules
and regulations in any reasonable manner as it may deem advisable for the
safety, care, cleanliness, preservation of good order and operation or use of
the Property or the Premises. All changes and amendments to the rules and
regulations of the Property will be forwarded by Landlord to Tenant in writing
and shall thereafter be carried out and observed by Tenant.

          3.4  Warranty of Possession. Landlord and Tenant each warrants that it
               ----------------------
has the right and authority to execute this Lease, and Landlord warrants to
Tenant, that upon payment of the required rents by Tenant and subject to the
terms, conditions, covenants and agreements contained in this Lease, Tenant
shall have possession of the Premises during the full term of this Lease, as
well as any extension or renewal thereof, without hindrance from Landlord or any
person or persons lawfully claiming the Premises by, through or under Landlord
(but not otherwise); subject, however, to all mortgages, deeds of trust, leases
and agreements to which this Lease is subordinate and to all laws, ordinances,
orders, rules and regulations of any governmental authority. Landlord shall not
be responsible for the acts or omissions of any other lessee or third party that
may interfere with Tenant's use and enjoyment of the Premises.

          3.5  Inspection. After giving Tenant reasonable notice (except in an
               ----------
event of emergency), Landlord or its authorized agents shall at any and all
reasonable times have the right to enter the Premises to inspect the same, to
supply janitorial service or any other service to be provided by Landlord, to
show the Premises to prospective mortgagees, purchasers or prospective tenants,
and to alter, improve or repair the Premises or any other portion of the
Property. Tenant hereby waives any claim for abatement or reduction of rent ,or
for any damages for injury, or inconvenience to, or interference with, Tenant's
business, for any loss or occupancy or use of the Premises, and for any other
loss occasioned thereby. Landlord shall at all times have and retain a key with
which to unlock all of the doors in, upon and about the Premises. Tenant shall
not change Landlord's lock system or in any other manner prohibit Landlord from
entering the Premises. Landlord shall have the right at all times to enter the
Premises by any means in the event of an emergency without liability therefor,
provided Landlord notifies Tenant immediately of the emergency event.

          3.6  Personal Property Taxes. Tenant shall be liable for all taxes
               -----------------------
levied against leasehold improvements, merchandise, personal property, trade
fixtures and all other taxable property located in the Premises. If any such
taxes for which Tenant is liable are levied against Landlord or Landlord's
property and if Landlord elects to pay the same or if the assessed value of
Landlord's property is increased by inclusion of personal property and trade
fixtures placed by Tenant in the Premises and Landlord elects to pay the taxes
based on such increase, Tenant shall pay to Landlord, upon demand, that part of
such taxes for which the Tenant is primarily liable pursuant to the terms of
this Section. Tenant shall pay when due any and all taxes related to Tenant's
use and operation of its business in the Premises.

          3.7  Garbage. All garbage and refuse shall be kept in an area
               -------
designated by Landlord and in the kind of container specified by Landlord and
shall be placed outside of the Premises daily, prepared for collection in the
manner and at the times and places specified by Landlord. If Landlord provides
or designates a service for collection of refuse and garbage, Tenant shall use
it, at Tenant's expense, provided the cost thereof is competitive with any
substantially identical service available to Tenant.

                       ARTICLE 4.- UTILITIES AND SERVICE

          4.1  Utility Services. Landlord shall provide or cause to be provided
               ----------------
the mains, conduits and other facilities necessary to supply water, gas,
electricity, telephone service and sewage service to the Premises. Tenant shall,
however, be responsible, at its expense, to make provisions for connecting or
hooking up to such utilities, directly with the appropriate utility company
furnishing same.

          4.2  Tenant Responsible for Charges. Tenant shall promptly pay all
               ------------------------------
charges and deposits for electricity, water, gas, telephone service and sewage
service and other utilities furnished to the Premises. Landlord may, if it so

                                       6
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elects, furnish one or more utility services to Tenant, and in such event,
Tenant shall purchase the use of such services as are tendered by Landlord, and
shall pay on demand the rates established therefor by Landlord which shall not
exceed the rate which would be charged for the same services if furnished to
Tenant directly by the local public utility furnishing the same to the public at
large. Landlord may at any time discontinue furnishing any such service without
obligation to Tenant other than to connect the Premises to the public utility,
if any, furnishing such service. Tenant, at its sole expense, will install an
emergency electrical generator which shall be connected to Tenant's electrical
service ("Tenant Improvements"). Prior to construction of the Tenant
Improvements, Tenant shall submit the proposed plans to Landlord for approval.
Within 30 days of completion of the Tenant Improvements. Tenant shall provide to
Landlord proof of payment in full to and a lien waiver from all contractors
providing labor or materials for the Tenant Improvements.

          4.3  Landlord's Services. Landlord shall provide routine maintenance,
               -------------------
painting and electrical lighting service for all Common Areas and special
service areas of the Property in the manner and to the extent deemed by Landlord
to be standard. Landlord may, in its sole discretion, provide additional
services not enumerated herein.

          4.4  No Liability. Landlord shall not be liable for any interruption
               ------------
whatsoever in utility services not furnished by it, nor for interruption in
utility service furnished by it which are due to fire, accident, strikes, acts
of God, riot, civil commotion, terrorist act, national emergency, shortage of
labor or materials or other causes beyond the control of Landlord or in order to
make alterations, repairs or improvements. Moreover, Landlord shall not be
liable for any interruption of such utility services which continues during any
reasonable period necessary to restore such service upon the occurrence of any
of the foregoing conditions. Failure by Landlord to any extent to provide any
services of Landlord specified herein or any other services not specified, or
any cessation thereof, shall not render Landlord liable in any respect for
damages to either person or property, be construed as an eviction of Tenant,
work an abatement of rent or relieve Tenant from fulfillment of any covenant in
this Lease. If any of the equipment or machinery necessary or useful for
provision of any utility services, and for which Landlord is responsible, breaks
down, or for any cause ceases to function properly, Landlord shall use
reasonable diligence to repair the same promptly, but Tenant shall have no claim
for rebate of rent or damages on account of any interruption in service
occasioned from the repairs.

          4.5  Theft or Burglary. Landlord shall not be liable to Tenant for
               -----------------
losses to Tenant's property or personal injury caused by criminal acts or entry
by unauthorized persons into the Premises or the Property.

                      ARTICLE 5. - REPAIRS AND MAINTENANCE

          5.1  Landlord Repairs. Landlord shall not be required to make any
               ----------------
improvements, replacements or repairs of any kind or character to the Premises
during the term of this Lease except as are set forth in this Section. Landlord
shall maintain only the roof, foundation, parking and Common Areas, the
structural soundness of the exterior walls. Landlord's cost of maintaining and
repairing the items set forth in this Section are subject to the additional rent
provisions in Section 2.3 and 2.4. Landlord shall not be liable to Tenant,
except as expressly provided in this Lease, for any damage or inconvenience, and
Tenant shall not be entitled to any damages nor to any abatement or reduction of
rent by reason of any repairs, alterations or additions made by Landlord under
this Lease.

          5.2  Tenant Repairs. Tenant shall maintain, at its sole and direct
               --------------
cost, the Premises in a first-class condition (except for those items listed
under Section 5.1). Without limiting the generality of the foregoing, Tenant
shall maintain and keep in good repair (including replacement when necessary):

               (a) the interior of the Premises, including walls, floors and
ceilings;

               (b) all windows and doors, including frames, glass, molding and
hardware;

               (c) all wires and plumbing within the Premises which serve the
Premises (as distinguished from those serving the Building generally);

                                       7
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               (d) all signs, air conditioning and heating equipment (see
attached Rules and Regulations for service requirements), mechanical doors and
other mechanical equipment situated on or in the Premises or serving the
Premises (as distinguished from those serving the Building generally); and

               (e) those utility facilities that are not maintained by Landlord
hereunder. Tenant shall further make all other repairs to the Premises made
necessary by Tenant's failure to comply with its obligations under this Section.
All fixtures installed by Tenant shall be new or shall have been completely and
recently reconditioned.

          5.3  Request for Repairs. All requests for repairs or maintenance to
               -------------------
Landlord pursuant to Section 5.1 of this Lease must be made in writing to
Landlord at the address in Section 1.10.

          5.4  Tenant Damages. Tenant shall not allow any damage to be committed
               --------------
on any portion of the Premises or Property, and at the termination of this
Lease, by lapse of time or otherwise, Tenant shall deliver the Premises to
Landlord in as good condition as existed at the Commencement Date of this Lease,
ordinary wear and tear excepted. The cost and expense of any repairs necessary
to restore the condition of the Premises shall be borne by Tenant.

                    ARTICLE 6.- ALTERATIONS AND IMPROVEMENTS

          6.1  Construction. If any construction of tenant improvements is
               ------------
necessary for the initial occupancy of the Premises, such construction shall be
accomplished and the cost of such construction shall be borne by Landlord and/or
Tenant in accordance with EXHIBIT F and / or the Addendum (if any) attached
hereto. Except as expressly provided in this Lease, Tenant acknowledges and
agrees that Landlord has not undertaken to perform any modification, alteration
or improvements to the Premises, and Tenant further waives any defects in the
Premises and acknowledges and accepts (1) the Premises as suitable for the
purpose for which they are leased and (2) the Property and every part and
appurtenance thereof as being in good and satisfactory condition. If any
improvements, modifications or alterations, beyond those specified on Exhibit F,
are required for Tenant's initial occupancy of the Premises, due solely to
Tenant's use of the Premises, by any governmental or municipal body or agency or
are required by any law, rule, regulation, ordinance, code or order, Tenant
shall be solely responsible for all associated costs. After the Commencement
Date, if any improvements, modifications or alterations are required by any
governmental or municipal body or agency or due to any law, rule, regulation,
code, ordinance or order, as a result of Tenant's use of the Premises, Tenant
shall be solely responsible for all associated costs. Upon the request of
Landlord, Tenant shall deliver to Landlord a completed Acceptance of Premises
Memorandum in Landlord's prescribed form.

          6.2  Tenant Improvements. Tenant shall not make or allow to be made
               -------------------
any alterations, physical additions or improvements in or to the Premises
without first obtaining the written consent of Landlord, which consent, not to
be unreasonably withheld, may in the sole and absolute discretion of Landlord be
denied. Any alterations, physical additions or improvements to the Premises made
by or installed by either party hereto shall remain upon and be surrendered with
the Premises and become the property of Landlord upon the expiration or earlier
termination of this Lease without credit to Tenant; provided, however, Landlord,
at its option, may require Tenant to remove any physical improvements or
additions and/or repair any alterations in order to restore the Premises to the
condition existing at the time Tenant took possession, all costs of removal
and/or alterations to be borne by Tenant. This clause shall not apply to
moveable equipment, furniture or moveable trade fixtures owned by Tenant, which
may be removed by Tenant at the end of the term of this Lease if Tenant is not
then in default and if such equipment and furniture are not then subject to any
other rights, liens and interests of Landlord. Tenant shall have no authority or
power, express or implied, to create or cause any mechanic's or materialmen's
lien, charge or encumbrance of any kind against the Premises, the Property or
any portion thereof. Tenant shall promptly cause any such liens that have arisen
by reason of any work claimed to have been undertaken by or through Tenant to be
released by payment, bonding or otherwise within thirty (30) days after request
by Landlord, and shall indemnify Landlord against losses arising out of any such
claim (including, without limitation, legal fees and court costs).

          6.3  Common and Service Area Alterations. Landlord shall have the
               -----------------------------------
right to decorate and to make repairs, alterations, additions, changes or
improvements, whether structural or otherwise, in, about or on the exterior of
the Property, or any part thereof exclusive of the Premises, and to change,
alter, relocate, remove or replace service areas and/or Common Areas, and to
otherwise alter or modify the Property exclusive of the Premises, and

                                       8
<PAGE>

for such purposes, to take such measures for safety or for the expediting of
such work as may be required, in Landlord's judgment, all without affecting any
of Tenant's obligations hereunder.

                      ARTICLE 7. - CASUALTY AND INSURANCE

          7.1  Substantial Destruction. If in the determination of Landlord the
               -----------------------
Premises should be totally destroyed by fire or other casualty, or if in the
determination of Landlord the Premises should be damaged so that rebuilding
cannot reasonably be completed substantially within one hundred and eighty (180)
working days after Landlord's receipt of written notification by Tenant of the
destruction, or if the Premises are damaged or destroyed by casualty not covered
by the standard broad form of fire and extended coverage insurance then in
common use in the State of North Carolina, then, at Landlord's sole option, this
Lease shall terminate and, in such case, the rent shall be abated for the
unexpired portion of the Lease, effective as of the date of the written
notification.

          7.2  Partial Destruction. If following damage or destruction to the
               -------------------
Premises by fire or other casualty, this Lease is not terminated pursuant to
Section 7.1 hereof, this Lease shall not terminate, and Landlord shall proceed,
to the extent of insurance proceeds actually received by Landlord after the
exercise by any mortgage of the Property of an option to apply proceeds against
Landlord's debt to such mortgagee, with reasonable diligence to rebuild or
repair the Building or other improvements to substantially the same conditions
in which they existed prior to the damage. If the Premises are to be rebuilt or
repaired and are untenantable in whole or in part following the damage, and the
damage or destruction was not caused or contributed to by act or negligence of
Tenant, its agents, employees, invitees or those for whom Tenant is responsible,
the Base Rent payable under this Lease during the period for which the Premises
are untenantable shall be reduced to an amount determined by multiplying the
Base Rent that would otherwise be payable but for this provision by the ratio
that the portion of the Premises not rendered untenantable bears to the total
net rentable area of the Premises prior to the casualty. Landlord's obligation
to rebuild or restore under this Section shall be limited to restoring the
Premises to substantially the condition in which the same existed prior to the
casualty, exclusive of improvements for which Tenant is responsible under
Section 6.1 and EXHIBIT F, and Tenant shall, promptly after the completion of
such work by Landlord, proceed with reasonable diligence and at Tenant's sole
cost and expense to restore those improvements for which Tenant is responsible
to substantially the condition in which the same existed prior to the casualty
and to otherwise make the Premises suitable for Tenant's use. If Landlord fails
to substantially complete the necessary repairs or rebuilding within one hundred
and eighty (180) working days from the date of Landlord's receipt of written
notification by Tenant of the destruction, Tenant may at its own option
terminate this Lease by delivering written notice of termination to Landlord,
whereupon all rights and obligations under this Lease shall cease to exist.

          7.3  Property Insurance. Landlord shall at all times during the term
               ------------------
of this Lease insure the Property against all risk of direct physical loss in an
amount and with such deductibles as Landlord considers appropriate; provided,
Landlord shall not be obligated in any way or manner to insure any personal
property (including, but not limited to, any furniture, machinery, goods or
supplies) of Tenant upon or within the Premises, any fixtures installed or paid
for by Tenant upon or within the Premises, or any improvements which Tenant may
construct on the Premises. Tenant shall have no right in or claim to the
proceeds of any policy of insurance maintained by Landlord even if the cost of
such insurance is borne by Tenant as set forth in Article 2. Landlord shall have
the right to self-insure against the above-described risk. Tenant at all times
during the term of this Lease shall, at its own expense, keep in full force and
effect insurance against fire and such other risks as are from time to time
included in standard all-risk insurance policy (including coverage against
vandalism, theft, burglary, and malicious mischief) for the premises and the
full replacement cost of Tenant's trade fixtures, furniture, supplies and all
items of personal property of Tenant located on or within the Premises. Tenant's
policy shall also include business interruption/extra expense coverage in
sufficient amounts. Landlord shall be a named insured on said policy.

          7.4  Waiver of Subrogation. Anything in this Lease to the contrary
               ---------------------
notwithstanding, Landlord and Tenant hereby waive and release each other of and
from any and all right of recovery, claim, action or cause of action, against
each other, their agents, officers and employees, for any loss or damage that
may occur to the Premises, improvements to the Property, or personal property
within the Property, by reason of fire or the elements, regardless of cause or
origin, including negligence of Landlord or Tenant and their agents, officers
and employees. Landlord and Tenant agree immediately to give their respective
insurance companies which have issued policies of insurance covering all risk of
direct physical loss, written notice of the terms of the mutual waivers
contained in this

                                       9
<PAGE>

Section, and to have the insurance policies properly endorsed, if necessary, to
prevent the invalidation of the insurance coverages by reason of the mutual
waivers.

          7.5  Hold Harmless. Landlord shall not be liable to Tenant or to
               -------------
Tenant's customers, employees, agents, guests or invitees, or to any other
person whomever, for any injury to persons or damage to property on or about the
Premises, including but not limited to, consequential damage, (1) caused by any
act or omission of Tenant, its employees, subtenants, licensees and
concessionaires or of any other person entering the Property or the Premises by
express or implied invitation of Tenant, or (2) arising out of the use of the
Premises or the Property by Tenant, its employees, subtenants, licensees,
concessionaires or invitees, or (3) arising out of any breach or default by
Tenant in the performance of its obligations hereunder, or (4) caused by the
improvements located in the Premises becoming out of repair or by defect in or
failure of equipment, pipes, or wiring, or by broken glass, or by the backing up
of drains, or by gas, water, steam, electricity or oil leaking, escaping or
flowing into the Premises or Property, or (5) arising out of the failure or
cessation of any service provided by Landlord (including security service and
devices), and Tenant hereby agrees to indemnify Landlord and hold Landlord
harmless from any liability, loss, expense or claim (including, but not limited
to reasonable attorneys' fees) arising out of such damage or injury. Nor shall
Landlord be liable to Tenant for any loss or damage that may be occasioned by or
through the acts or omissions of other tenants of the Property or of any other
persons whomsoever, excepting only duly authorized employees and agents of
Landlord acting within the scope of their authority. Further, Tenant
specifically agrees to be responsible for and indemnify and hold Landlord
harmless from any and all damages or expenses of whatever kind arising out of or
caused by a burglary, theft, vandalism, malicious mischief or other illegal acts
performed in, at or from the Premises.

          7.6  Liability insurance.
               -------------------

               (a) Tenant at all times during the Lease shall, at its own
expense, keep in full force and effect commercial general liability insurance
with "personal injury" coverage and contractual liability coverage, with minimum
combined bodily injury and property damage limit of $1,000,000 per occurrence
per location subject to no deductible. Landlord shall be an additional insured
on said policy. Definition of additional insured shall include all partners,
officers, directors, employees, agents and representatives of the named entities
including its managing agent. Further, coverage for additional insured shall
apply on a primary basis irrespective of any other insurance, whether
collectible or not. All insurance policies or duly executed certificates for the
same required to be carried by Tenant under this Lease, together with
satisfactory evidence of the payment of the premium thereof, shall be deposited
with Landlord on the date Tenant first occupies the Premises and upon renewals
of such policies not less than fifteen (15) days prior to the expiration of the
term of such coverage. All insurance required to be carried by Tenant under this
Lease shall be in form and content, and written by insurers acceptable to
Landlord, in its sole discretion. If Tenant shall fail to comply with any of the
requirements contained relating to insurance, Landlord may obtain such insurance
and Tenant shall pay to Landlord, on demand as additional rent hereunder, the
premium cost thereof.

               (b) Affording coverage under the Workers Compensation laws of the
State of North Carolina and Employers Liability coverage subject to a limit of
no less than $100,000 each employee, $100,000 each accident, $500,000 policy
limit.

               (c) Tenant shall maintain umbrella liability insurance at not
less than a $1,000,000 limit providing excess coverage over all limits and
coverages noted in 7.6.a and 7.6.b above.

               (d) This policy shall be written on an occurrence basis. All
policies noted above shall be written with insurance companies licensed to do
business in the State of North Carolina and rated no lower than A:10 in the most
current edition of A.M. Best's Casualty Key Rating Guide. All policies shall be
endorsed to provide that in the event of cancellation, non-renewal or material
modification, Landlord shall receive thirty (30) days written notice thereof.

          7.7  Boiler Insurance. At all times when a "boiler," as that term is
               ----------------
defined for the purposes of boiler insurance, is located within the Premises,
Tenant shall carry, at its expense, boiler insurance with policy limits of not
less than One Hundred Thousand Dollars ($100,000.00) insuring both Landlord and
Tenant against loss or liability caused by the operation or malfunction of such
boiler.

                                       10
<PAGE>

          7.8  Hazardous Material. Throughout the term of this Lease, Tenant
               ------------------
shall prevent the presence, use, generation, release, discharge, storage,
disposal, or transportation of any Hazardous Materials (as hereinafter defined)
on, under, in, above, to, or from the Premises other than in strict compliance
with all applicable federal, state, and local laws, rules, regulations and
orders. For purposes of this provision, the term "Hazardous Materials" shall
mean and refer to any wastes, materials, or other substances of any kind or
character that are or become regulated as hazardous or toxic waste or
substances, or which require special handling or treatment, under any applicable
local, state or federal law, rule, regulation or order. Tenant shall indemnify,
defend, and hold Landlord harmless from and against

               (a) any loss, cost, expense, claim, or liability arising out of
any investigation, monitoring, clean-up, containment, removal, storage, or
restoration work (herein referred to as "Remedial Work") required by, or
incurred by Landlord or any other person or party in a reasonable belief that
such Remedial Work is required by any applicable federal, state or local law,
rule, regulation or order, or by any governmental agency, authority, or
political subdivision having jurisdiction over the Premises, and

               (b) any claims of third parties for loss, injury, expense, or
damage arising out of the presence, release, or discharge of any Hazardous
Materials on, under, in, above, to, or from the Premises. In the event any
Remedial Work is so required under any applicable federal, state, or local law,
rule, regulation or order, Tenant shall promptly perform or cause to be
performed such Remedial Work in compliance with such law, rule, regulation, or
order. In the event Tenant shall fail to commence the Remedial Work in a timely
fashion, or shall fail to prosecute diligently the Remedial Work to completion,
such failure shall constitute an event of default on the part of Tenant under
the terms of this Lease, and Landlord, in addition to any other rights or
remedies afforded it hereunder, may, but shall not be obligated to, cause the
Remedial Work to be performed, and Tenant shall promptly reimburse Landlord for
the cost and expense thereof upon demand.

                            ARTICLE 8.- CONDEMNATION

          8.1  Substantial Taking. If in the determination of Landlord all or a
               ------------------
substantial part of the Premises are taken for any public or quasi-public use
under any governmental law, ordinance or regulation, or by right of eminent
domain or by purchase in lieu thereof, and in the determination of Landlord the
taking would prevent or materially interfere with the use of the Premises for
the purpose for which it is then being used, this Lease shall, at the option of
either Landlord or Tenant, terminate and the Rent shall be abated during the
unexpired portion of this Lease effective on the date physical possession is
taken by the condemning authority.

          8.2  Partial Taking. If in the determination of Landlord a portion of
               --------------
the Premises shall be taken for any public or quasi-public use under any
governmental law, ordinance or regulation, or by right of eminent domain or by
purchase in lieu thereof, and this Lease is not terminated as provided in
Section 8.1 above, Landlord shall restore and reconstruct, to the extent of
condemnation proceeds (excluding any proceeds for land) actually received after
the exercise by any mortgagee of the Property of an option to apply such
proceeds against Landlord's debt to such mortgagee, the Property and other
improvements on the Premises to the extent necessary to make it reasonably
tenantable. The Base Rent payable under this Lease during the unexpired portion
of the term shall be reduced to an amount determined by multiplying the Base
Rent that would otherwise be payable but for this provision by the ratio that
the portion of the Premises not rendered untenantable bears to the total net
rentable area of the Premises prior to the casualty. If Landlord fails to
substantially complete such restoration and reconstruction within one hundred
and eighty (180) working days of the date of the physical possession by the
condemning authority, Tenant may at its option terminate this Lease by
delivering written notice of termination to Landlord, whereupon all rights and
obligations of this Lease shall cease to exist.

          8.3  Condemnation Proceeds. All compensation awarded for any taking
               ---------------------
(or the proceeds of private sale in lieu thereof), whether for the whole or a
part of the Premises, shall be the property of Landlord (whether such award is
compensation for damages to Landlord's or Tenant's interest in the Premises) and
Tenant hereby assigns all of its interest in any such award to Landlord;
provided, however, Landlord shall have no interest in any award made to Tenant
for loss of business or for taking of Tenant's fixtures and other property
within the Premises if a separate award for such items is made to Tenant.

                                       11
<PAGE>

                      ARTICLE 9. - ASSIGNMENT OR SUBLEASE

          9.1  Tenant Assignment. Tenant shall not assign, in whole or in part,
               -----------------
this Lease, or allow it to be assigned, in whole or in part, by operation of law
or otherwise (including without limitation by merger, dissolution or transfer of
a controlling interest in any partnership or corporate Tenant, which merger,
dissolution or transfer shall be deemed an assignment) or mortgage or pledge the
same, or sublet the Premises, in whole or in part, without the prior written
consent, which consent shall not be unreasonably withheld, of Landlord, and in
no event shall any such assignment or sublease ever release Tenant or any
guarantor from any obligation or liability hereunder. No assignee or sublessee
of the Premises or any portion thereof may assign or sublet the Premises or any
portion thereof.

          9.2  Conditions of Tenant Assignment. If Tenant desires to assign or
               -------------------------------
sublet all or any part of the Premises, it shall so notify Landlord in writing
at least thirty (30) days in advance of the date on which Tenant desires to make
such assignment or sublease. Tenant shall provide Landlord with a copy of the
proposed assignment or sublease and such information as Landlord might request
concerning the proposed sublessee or assignee to allow Landlord to make informed
judgments as to the financial condition, reputation, operations and general
desirability of the proposed sublessee or assignee. Within fifteen (15) days
after Landlord's receipt of Tenant's proposed assignment or sublease and all
required information concerning the proposed sublessee or assignee, Landlord
shall have the following options:

               (1) cancel this Lease as to the Premises or portion thereof
proposed to be assigned or sublet with Tenant's written consent;

               (2) consent to the proposed assignment or sublease or Tenant
shall pay to Landlord one-half such excess rent and other excess consideration
within ten (10) days following receipt thereof by Tenant;

               (3) refuse, to which refusal shall not be unreasonably withheld,
to consent to the proposed assignment or sublease and shall provide Tenant
written notice with the reasons for such refusal; or

               (4) upon the occurrence of an event of default by Tenant under
this Lease, if all or any part of the Premises are then assigned or sublet,
Landlord, in addition to any other remedies provided by this Lease or provided
by law, may, at its option, collect directly from the assignee or sublessee all
rents becoming due to Tenant by reason of the assignment or sublease, and
Landlord shall have a security interest in all properties belonging to Tenant on
the Premises to secure payment of such sums. No collection directly by Landlord
from the assignee or sublessee shall be construed to constitute a novation or a
release of Tenant or any guarantor from the further performance of its
obligations under this Lease. All legal fees and expenses incurred by Landlord
in connection with the review by Landlord of Tenant's requested assignment or
sublease pursuant to this Section, together with any legal fees and
disbursements incurred in the preparation and/or review of any documentation,
shall be the responsibility of Tenant and shall be paid by Tenant within five
(5) days of demand for payment thereof, as rental hereunder. If the rent due and
payable by any assignee or sublessee under any such permitted assignment or
sublease (or a combination of the rent payable under such assignment or sublease
plus any bonus or any other consideration or any payment incident thereto)
exceeds the Rent payable under this Lease for such space, Tenant shall pay to
Landlord all such excess rent and other excess consideration within ten (10)
days, following receipt thereof by Tenant.

          9.3  Landlord Assignment. Landlord shall have the right to sell,
               -------------------
transfer or assign, in whole or in part, its rights and obligations under this
Lease and in the Property. Any such sale, transfer or assignment shall operate
to release Landlord from any and all liabilities under this Lease arising after
the date of such sale, assignment or transfer subject to the provisions for the
Security Deposit in Section 2.8.

          9.4  Rights of Mortgagee. Tenant accepts this Lease subject and
               -------------------
subordinate to any recorded lease, mortgage or deed of trust lien presently
existing, if any, or hereafter encumbering the Property and to all existing
ordinances and recorded restrictions, covenants easements, and agreements with
respect to the Property. Landlord hereby is irrevocably vested with full power
and authority to subordinate Tenant's interest under this Lease to any mortgage
or deed of trust lien hereafter placed on the Property. Upon any foreclosure,
judicially or non-judicially, of any such mortgage, or the sale of the Property
in lieu of foreclosure, or any other transfer of Landlord's interest in the
Property, whether or not in connection with a mortgage, Tenant hereby does, and
hereafter agrees to attorn to the

                                       12
<PAGE>

purchaser at such foreclosure sale or to the grantee under any deed in lieu of
foreclosure or to any other transferee of Landlord's interest, and shall
recognize such purchaser, grantee, or other transferee as Landlord under this
Lease, and no further attornment or other agreement shall be required to effect
or evidence Tenant's attornment to and recognition of such purchaser or grantee
as Landlord hereunder. Such agreement of Tenant to attorn shall survive any such
foreclosure sale, trustee's sale, conveyance in lieu thereof, or any other
transfer of Landlord's interest in the Property. Tenant, upon demand, at any
time, before or after any such foreclosure sale, trustee's sale, conveyance in
lieu thereof, or other transfer shall execute, acknowledge, and deliver to the
prospective transferee and/or mortgage a Lease Subordination, Non-Disturbance
and Attornment Agreement and any additional written instruments and certificates
evidencing such attornment as the mortgagee or other prospective transferee may
reasonably require, and Tenant hereby irrevocably appoints Landlord as Tenant's
agent and attorney-in-fact for the purpose of executing, acknowledging, and
delivering any such instruments and certificates. Notwithstanding anything to
the contrary implied in this Section, any mortgagee under any mortgage shall
have the right at any time to subordinate any such mortgage to this Lease on
such terms and subject to such conditions as the mortgagee in its discretion may
consider appropriate.

          9.5  Estoppel Certificates. Tenant agrees to furnish, from time to
               ---------------------
time, within ten (10) days after receipt of a request from Landlord or
Landlord's mortgagee, a statement certifying, if applicable, all or some of the
following: Tenant is in possession of the Premises; the Lease is in full force
and effect; the Lease is unmodified (except as disclosed in such statement);
Tenant claims no present charge, lien, or claim of offset against Rent; the Rent
is paid for the current month, but it is not prepaid for more than one (1) month
and will not be prepaid for more than one (1) month in advance; there is no
existing default by reason of some act or omission by Landlord; that Landlord
has performed all inducements required of Landlord in connection with this
Lease, including construction obligations, and Tenant accepts the Premises as
constructed; an acknowledgment of the assignment of rentals and other sums due
hereunder to the mortgagee and agreement to be bound thereby, an agreement
requiring Tenant to advise the mortgagee of damage to or destruction of the
Premises by fire or other casualty requiring reconstruction; an agreement by
Tenant to give the mortgagee written notice of Landlord's default hereunder and
to permit the mortgagee to cure such default within a reasonable time after such
notice before exercising any remedy Tenant might possess as a result of such
default; and such other matters as may be reasonably required by Landlord's
mortgagee. Tenant's failure to deliver such statement, in addition to being a
default under this Lease, shall be deemed to establish conclusively that this
Lease is in full force and effect except as declared by Landlord, that Landlord
is not in default of any of its obligations under this Lease, and that Landlord
has not received more than one (1) month's Rent in advance.

                               ARTICLE 10.- LIENS

          10.1 Uniform Commercial Code. This Lease is intended as and
               -----------------------
constitutes a security agreement within the meaning of the Uniform Commercial
Code of the state in which the Premises are situated. Landlord, in addition to
the rights prescribed in this Lease, shall have all of the rights, titles, liens
and interests in and to Tenant's property, now or hereafter located upon the
Premises, which may be granted a secured party, (as that term is defined under
such Uniform Commercial Code), under this Lease. Tenant will on request execute
and deliver to Landlord a financing statement (or continuation statement) for
the purpose of perfecting Landlord's security interest under this Lease. The
security interest created by this Lease shall be subordinate to all other
documented, valid security interests in Tenant's personal property.
Notwithstanding neither Tenant nor any other secured party shall have the right
to remove any property from the Premises if such removal would cause damage to
the Premises. Further, no party other than Tenant shall have the right to occupy
the Premises for any purpose.

                       ARTICLE 11.- DEFAULT AND REMEDIES

          11.1 Default by Tenant. The following shall be deemed to be events of
               -----------------
default by Tenant under this Lease:

               (1) Tenant shall, after five days written notice by Landlord,
fail to pay when due any installment of Rent or any other payment required
pursuant to this Lease;

               (2) Tenant or any guarantor of Tenant's obligations hereunder
shall file a petition or be adjudged bankrupt or insolvent under any applicable
federal or state bankruptcy or insolvency law or admit that it

                                       13
<PAGE>

cannot meet its financial obligations as they become due, or a receiver or
trustee shall be appointed for all or substantially all of the assets of Tenant
or any guarantor of Tenant's obligations hereunder;

               (3) Tenant or any guarantor of Tenant's obligations hereunder
shall make a transfer in fraud of creditors or shall make an assignment for the
benefit of creditors;

               (4) Tenant shall do or permit to be done any act which results in
a lien being filed against the Premises or the Property;

               (5) the liquidation, termination, dissolution or (if the Tenant
is a natural person) the death of Tenant or any guarantor of Tenant's obligation
thereunder;

               (6) Tenant shall be in default of any other term, provision or
covenant of this Lease, and such default is not cured within ten (10) days after
written notice thereof to Tenant, provided the default Is curable ordinarily
within ten (10) days.

          11.2 Remedies for Tenant's Default. Upon the occurrence of any event
               -----------------------------
of default set forth in this Lease, Landlord shall have the option to pursue any
one or more of the remedies set forth in this Section 11.2 without any
additional notice or demand:

               (1) Without declaring the Lease terminated, Landlord may enter
upon and take possession of the Premises, by picking or changing locks if
necessary, and lock out, expel or remove Tenant and any other person who may be
occupying all or any part of the Premises without being liable for any claim for
damages, and relet the Premises on behalf of Tenant and receive the rent
directly by reason of the reletting. Tenant agrees to pay Landlord on demand any
deficiency that may arise by reason of any reletting of the Premises; further,
Tenant agrees to reimburse Landlord for any reasonable expenditure made by it in
order to relet the Premises, including, but not limited to, remodeling and
repair costs, brokerage commissions and attorneys' fees.

               (2) Without declaring the Lease terminated, Landlord may enter
upon the Premises, by picking or changing locks if necessary, without being
liable for any claim for damages, and do whatever Tenant is obligated to do
under the terms of this Lease. Tenant agrees to reimburse Landlord on demand for
any reasonable expenses which Landlord may incur in effecting compliance with
Tenant's obligations under this Lease; further, Tenant agrees that Landlord
shall not be liable for any damages resulting to Tenant from effecting
compliance with Tenant's obligations under this Lease caused by the negligence
of Landlord or otherwise.

               (3) Landlord may terminate this Lease, in which event Tenant
shall immediately surrender the Premises to Landlord, and if Tenant fails to
surrender the Premises, Landlord may, without prejudice to any other remedy
which it may have for possession or arrearages in rent, enter upon and take
possession of the Premises, by picking or changing locks if necessary, and lock
out, expel or remove Tenant and any other person who may be occupying all or any
part of the Premises without being liable for any claim for damages. Tenant
agrees to pay on demand the amount of all loss and damage which Landlord may
suffer for any reason due to the termination of this Lease under this Section
11.2, including (without limitation) loss and damage due to the failure of
Tenant to maintain and/or repair the Premises as required hereunder and/or due
to the inability of Landlord to relet the Premises on satisfactory terms or
otherwise.

Landlord's exercise, following a default by Tenant under this Lease, of any
right granted hereunder or under any applicable law to lock out or change the
locks securing the Premises shall not impose upon Landlord any duty to notify
Tenant of the name and address or telephone number of the individual or company
from whom a new key may be obtained, nor shall Landlord have any duty to provide
Tenant with a new key or any other means of access to the Premises. To the
maximum extent permitted by law, Landlord and Tenant agree that the parties
hereto intend that all rights and remedies of Landlord under this Lease shall
supersede any conflicting provisions of the General Statutes of North Carolina,
and any amendments, modifications, recodification or other changes thereto.

     Notwithstanding any other remedy set forth in this Lease, if Landlord has
made rent concessions of any type or character, or waived any Base Rent, and
Tenant fails to take possession of the Premises on the Commencement Date or
otherwise defaults at any time during the term of this Lease, the rent
concessions, including

                                       14
<PAGE>

any waived Base Rent, shall be canceled and the amount of the Base Rent or other
rent concessions shall be due and payable immediately as if no rent concessions
or waiver of any Base Rent had ever been granted. A rent concession or waiver of
the Base Rent shall not relieve Tenant of any obligation to pay any other charge
due and payable under this Lease. Notwithstanding anything contained in this
Lease to the contrary, this Lease may be terminated by Landlord only by written
notice of such termination to Tenant given in accordance with Section 13.7
below, and no other act or omission of Landlord shall be construed as a
termination of this Lease.

          11.3 Remedies Cumulative. All rights and remedies of Landlord herein
               -------------------
or existing at law or in equity are cumulative and the exercise of one or more
rights or remedies shall not be taken to exclude or waive the rights to the
exercise of any other.

                            ARTICLE 12.- DEFINITIONS

          12.1 Abandon. "Abandon" means the vacating of all or a substantial
               -------
portion of the Premises by Tenant, whether or not Tenant is in default of the
rental or other payments due under this Lease.

          12.2 Act of God or Force Majeure. An "act of God" or "force majeure"
               ---------------------------
is defined for purposes of this Lease as strikes, lockouts, sitdowns, material
or labor restrictions by any governmental authority, unusual transportation
delays, riots, floods, washouts, explosions, earthquakes, fire storms, weather
(including wet grounds or inclement weather which prevents construction), acts
of the public enemy, wars, insurrections, and/or any other cause not reasonably
within the control of Landlord or which by the exercise of due diligence
Landlord is unable wholly or in part, to prevent or overcome.

                           ARTICLE 13.- MISCELLANEOUS

          13.1 Waiver. Failure of Landlord to declare an event of default
               ------
immediately upon its occurrence, or delay in taking any action in connection
with an event of default, shall not constitute a waiver of the default, but
Landlord shall have the right to declare the default at any time and take such
action as is lawful or authorized under this Lease. Pursuit of any one or more
of the remedies set forth in Article 11 above shall not preclude pursuit or any
one or more of the other remedies provided elsewhere in this Lease or provided
by law, nor shall pursuit of any remedy hereunder or at law constitute
forfeiture or waiver of any rent or damages accruing to Landlord by reason of
the violation of any of the terms, provisions or covenants of this Lease.
Failure by Landlord to enforce one or more of the remedies provided hereunder or
at law upon any event of default shall not be deemed or construed to constitute
a waiver of the default or of any other violation or breach of any of the terms
provisions and covenants contained in this Lease. Waiver by Landlord of any
default by Tenant hereunder shall in no event be deemed or construed to be a
waiver of identical or similar future defaults. Landlord may collect and receive
rent due from Tenant without waiving or affecting any rights or remedies that
Landlord may have at law or in equity or by virtue of this Lease at the time of
such payment. To the maximum extent allowable pursuant to applicable law,
institution of a summary ejectment action to re-enter the Premises shall not be
construed to be an election by Landlord to terminate this Lease.

          13.2 Act of God. Landlord shall not be required to perform any
               ----------
covenant or obligation in this Lease, or be liable in damages to Tenant, so long
as the performance or non-performance of the covenant or obligation is delayed,
caused or prevented by an act of God, force majeure or by Tenant.

          13.3 Attorney's Fees. If Tenant defaults in the performance of any of
               ---------------
the terms, covenants agreements or conditions contained in this Lease and
Landlord places in the hands of any attorney the enforcement of all or any part
of this Lease, the collection of any rent or other sums due or to become due or
recovery of the possession of the Premises, Tenant agrees to pay Landlord's cost
of collection, including reasonable attorneys' fees, whether suit is actually
filed or not.

          13.4 Successors. This Lease shall be binding upon and inure to the
               ----------
benefit of Landlord and Tenant and their respective heirs, personal
representations, successors and assigns.

          13.5 Rent Tax. If applicable in the jurisdiction where the Premises
               --------
are situated, Tenant shall pay and be liable for all rental, sales and use taxes
or other similar taxes, if any, levied or imposed by any city, state, county or

                                       15
<PAGE>

other governmental body having authority, such payments to be in addition to all
other payments required to be paid to Landlord by Tenant under the terms of this
Lease. Any such payment shall be paid concurrently with the payment of the Base
Rent, Additional Rent, Common Area Costs, or other charge upon which the tax is
based as set forth above.

          13.6 Interpretation. The captions appearing in this Lease are for
               --------------
convenience only and in no way define, limit, construe or describe the scope or
intent of any Section. Grammatical changes required to make the provisions of
this Lease apply (1) in the plural sense where there is more than one tenant
arid (2) to either corporations, associations, partnerships or individuals,
males or females, shall in all instances be assumed as though in each case fully
expressed. The laws of the State of North Carolina shall govern the validity,
performance and enforcement of this Lease. This Lease shall not be construed
more or less favorably with respect to either party as a consequence of the
Lease or various provisions hereof having been drafted by one of the parties
hereto.

          13.7 Notices. All rent and other payments required to be made by
               -------
Tenant shall be payable to Landlord, in care of Manager, at Managers address set
forth on page 1 (or if no address be set forth for Manager, to Landlord at
Landlord's address set forth on page 1). All payments required to be made by
Landlord to Tenant shall be payable to Tenant at Tenant's Business address set
forth on page 1. Any notice or document (other than rent) required or permitted
to be delivered by the terms of this Lease shall be deemed to be delivered
(whether or not actually received) when deposited in the United States Mail,
postage prepaid, certified mail, return receipt required, addressed to the
parties at the respective addresses set forth on page 1 (or, in the case of
Tenant, at the-Premises (Business Address), or to such other addresses as the
parties may have designated by written notice to each other, with copies of
notices to Landlord being sent to Landlord's address as shown on page 1. Manager
shall be a co-addressee with Landlord on all notices sent to Landlord by Tenant
hereunder, and any notice sent to Landlord and not to Manager, also, in
accordance with this section shall be deemed ineffective.

          13.8 Submission of Lease. SUBMISSION OF THIS LEASE TO TENANT FOR
               -------------------
SIGNATURE DOES NOT CONSTITUTE A RESERVATION OF SPACE OR AN OPTION TO LEASE. THIS
LEASE IS NOT EFFECTIVE UNTIL EXECUTION BY AND DELIVERY TO BOTH LANDLORD AND
TENANT.

          13.9 Corporate Authority. If Tenant executes this Lease as a
               -------------------
corporation or a partnership (general or limited), each person executing this
Lease on behalf of Tenant personally represents and warrants that: Tenant is a
duly authorized and existing corporation or partnership (general or limited),
Tenant is qualified to do business in the state in which the Premises are
located, the corporation or partnership (general or limited) has full right and
authority to enter into this Lease, each person signing on behalf of the
corporation or partnership (general or limited) is authorized to do so, and the
execution and delivery of the Lease by Tenant will not result in any breach of,
or constitute a default under any mortgage, deed of trust, lease, loan, credit
agreement, partnership agreement, or other contract or instrument to which
Tenant is a party or by which Tenant may be bound. If any representation or
warranty contained in this Section is false, each person who executes this Lease
shall be liable, individually, as Tenant hereunder.

          13.10  Multiple Tenants. If this Lease is executed by more than one
                 ----------------
person or entity as "Tenant," each such person or entity shall be jointly and
severally liable hereunder. It is expressly understood that any one of the named
Tenants shall be empowered to execute any modification, amendment, exhibit,
floor plan, or other document herein referred to and bind all of the named
Tenants thereto; and Landlord shall be entitled to rely on same to the extent as
if all of the named Tenants had executed same.

          13.11  Tenant's Financial Statements. Tenant represents and warrants
                  ----------------------------
to Landlord that, as of the date of execution of this Lease by Tenant, the
financial statements, if any, of Tenant provided to Landlord prior to or
simultaneously with the execution of this Lease accurately represent the
financial condition of Tenant as of the dates and for the periods indicated
therein, such financial statements are true and do not contain any untrue
statement of a material fact or omit to state any material fact necessary in
order to make the statements included therein not misleading and there has been
no material adverse change in the financial condition or business prospects of
Tenant since the respective dates of such financial statements. If there is a
material adverse change in Tenant's financial condition, Tenant will give
immediate notice of such material adverse change to Landlord. If Tenant fails to
give such immediate notice to Landlord, such failure shall be deemed an event of
default under this Lease.

                                       16
<PAGE>

          13.12  Severability. If any provision of this Lease or the application
                 ------------
thereof to any person or circumstances shall be invalid or unenforceable to any
extent, the remainder of this Lease and the application of such provisions to
other persons or circumstances shall not be affected thereby and shall be
enforced to the greatest extent permitted by law. Each covenant and agreement
contained in this Lease shall be construed to be a separate and independent
covenant and agreement, and the breach of any such covenant or agreement by
Landlord shall riot discharge or relieve Tenant from Tenant's obligation to
perform each and every covenant and agreement of this Lease to be performed by
Tenant.

          13.13  Landlord's Liability. If Landlord shall be in default under
                 --------------------
this Lease and, if as a consequence of such default, Tenant shall recover a
money judgment against Landlord, such judgment shall be satisfied only out of
the right, title and interest of Landlord in the Property as the same may then
be encumbered and neither Landlord nor any other person or entity comprising
Landlord shall be liable for any deficiency. In no event shall Tenant have the
right to levy execution against any property of Landlord other than the
Property, nor any person or entity comprising Landlord other than its interest
in the Property as herein expressly provided.

          13.14  Sale of Property. Upon any conveyance, sale or exchange of the
                 ----------------
Premises or assignment of this Lease, Landlord shall be and is hereby entirely
free and relieved of all liability under any and all of its covenants and
obligations contained in or derived from this Lease arising out of any act,
occurrence, or omission relating to the Premises or this Lease occurring after
the consummation of such sale or exchange and assignment.

          13.15  Time is of the Essence. The time of the performance of all of
                 ----------------------
the covenants, conditions and agreements of this Lease is of the essence.

          13.16  Subtenancies. At Landlord's option, the voluntary or other
                 ------------
surrender of this Lease by Tenant, or a mutual cancellation thereof, shall not
work a merger of estates and shall operate as an assignment of any or all
permitted subleases or subtenancies.

          13.17  Common Areas. Landlord reserves the right to change, from time
                 ------------
to time, the dimensions and location, identity and type of any buildings
comprising the Building, and to construct additional buildings or additional
stories on existing buildings or other improvements on the Property, provided
that such changes and additional construction do not materially or adversely
affect parking and signage for the Premises. Landlord reserves the right to
change, from time to time, the dimensions and location of the Common Area and to
allow the Common Area to be put to such uses as Landlord shall, from time to
time, deem desirable. Tenant and its employees and customers shall have the
nonexclusive right to use the Common Area in common with Landlord, other tenants
of the Property and other persons designated by Landlord, subject to reasonable
rules and regulations governing use that Landlord from time to time prescribes.
Tenant shall not solicit business, distribute handbills or display merchandise
within the Common Area, or take any action which would interfere with the rights
of other persons to use the Common Area. Landlord may temporarily close any part
of the Common Area to make repairs or alterations. Tenant acknowledges that
Landlord may be required to grant to major tenants of the Property the right to
display and sell merchandise and services on portions of the Common Area, and
the rights herein granted to Tenant shall be inferior to any such rights granted
to major tenants. The Common Area shall be under Landlord's sole operation and
control. Tenant shall be responsible for and shall indemnify and hold Landlord
harmless from any liability, loss or damage arising out of or caused by Tenant,
its employees, subtenants, licensees, concessionaires, agents, suppliers,
vendors, or service contractors, to any part of the Common Area, or to the
Property whether such damages be structural or nonstructural.

          13.18  Employee Parking. Landlord may, from time to time, designate
                 ----------------
specific areas adjacent to the leased space in which vehicles owned by Tenant
and its employees shall be parked, and Tenant shall use best efforts to see that
such vehicles are parked in such areas. Upon written request, Tenant shall
furnish to Landlord a complete list of the license numbers of all vehicles
operated by Tenant and its employees.

              ARTICLE 14. - AMENDMENT AND LIMITATION OF WARRANTIES

          14.1 Entire Agreement. IT IS EXPRESSLY AGREED BY TENANT, AS A MATERIAL
               ----------------
CONSIDERATION FOR THE EXECUTION OF THIS LEASE, THAT THIS LEASE, WITH THE
SPECIFIC REFERENCES TO EXTRINSIC DOCUMENTS, IS THE ENTIRE AGREEMENT OF THE
PARTIES; THAT

                                       17
<PAGE>

THERE ARE, AND WERE, NO VERBAL REPRESENTATIONS, WARRANTIES, UNDERSTANDINGS,
STIPULATIONS, AGREEMENTS OR PROMISES PERTAINING TO THE SUBJECT MATTER OF THIS
LEASE OR OF ANY EXPRESSLY MENTIONED EXTRINSIC DOCUMENTS THAT ARE NOT
INCORPORATED IN WRITING IN THIS LEASE OR IN SUCH DOCUMENTS.

          14.2 Amendment. THIS LEASE MAY NOT BE ALTERED, WAIVED, AMENDED OR
               ---------
EXTENDED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY LANDLORD AND TENANT.

          14.3 Limitation of Warranties. LANDLORD AND TENANT EXPRESSLY AGREE
               ------------------------
THAT THERE ARE AND SHALL BE NO IMPLIED WARRANTIES OF MERCHANTABILITY,
HABITABILITY, SUITABILITY, FITNESS FOR A PARTICULAR PURPOSE OR OF ANY OTHER KIND
ARISING OUT OF THIS LEASE, AND THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THOSE
EXPRESSLY SET FORTH IN THIS LEASE. WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, TENANT EXPRESSLY ACKNOWLEDGES THAT LANDLORD HAS MADE NO WARRANTIES OR
REPRESENTATIONS CONCERNING ANY HAZARDOUS SUBSTANCES OR OTHER ENVIRONMENTAL
MATTERS AFFECTING ANY PART OF THE PROPERTY, AND LANDLORD HEREBY EXPRESSLY
DISCLAIMS AND TENANT WAIVES ANY EXPRESS OR IMPLIED WARRANTIES WITH RESPECT TO
ANY SUCH MATTERS.

          14.4 Waiver and Releases. TENANT SHALL NOT HAVE THE RIGHT TO WITHHOLD
               -------------------
OR TO OFFSET RENT OR TO TERMINATE THIS LEASE EXCEPT AS EXPRESSLY PROVIDED
HEREIN. TENANT WAIVES AND RELEASES ANY AND ALL STATUTORY LIENS AND OFFSET
RIGHTS.

          14.5 Non-Disclosure of Lease Terms. NOTWITHSTANDING ANYTHING CONTAINED
               -----------------------------
WITHIN THIS LEASE TO THE CONTRARY, IF TENANT DISCLOSES ANY OF THE MATERIAL TERMS
AND/OR PROVISIONS OF THIS LEASE, INCLUDING BUT NOT LIMITED TO THE BASE RENT,
TENANT'S COMMON AREA COSTS OR ANY CAPS ON SUCH COSTS, THE TENANT FINISH OUT
ALLOWANCE, TENANT'S PROPORTIONATE SHARE OF GENERAL TAXES OR ANY CAP ON SUCH
EXPENSE, TENANT'S PROPORTIONATE SHARE OF INSURANCE PREMIUMS OR ANY CAP ON SUCH
EXPENSE, OR THE LEASE TERM TO ANY PERSON OR ENTITY NOT A PARTY TO THIS LEASE,
EXCEPT TENANT'S ATTORNEY, THEN TENANT SHALL BE LIABLE FOR ALL DAMAGE OR INJURY
TO LANDLORD RESULTING FROM TENANTS FAILURE TO KEEP ALL SUCH INFORMATION
CONFIDENTIAL AND TENANT SHALL INDEMNIFY AND HOLD LANDLORD HARMLESS FROM ANY
DAMAGE, LOSS OR INJURY OCCASIONED THEREBY. IN THE ALTERNATIVE, AND AT LANDLORD'S
SOLE OPTION, IF DAMAGES ARE DIFFICULT TO CALCULATE, TENANT SHALL PAY LIQUIDATED
DAMAGES EQUAL TO ONE (1) MONTH'S BASE RENT AS DEFINED IN ARTICLE 1 HEREOF.

          15.1 Addendum. The Addendum attached hereto is incorporated herein by
               --------
reference as if set forth verbatim. In the event of a conflict between the terms
and conditions of the Addendum and the Lease, the Addendum shall govern and
control. All terms defined herein have the same meaning in the Addendum as
herein.

                            SIGNATURE PAGE TO FOLLOW

                                       18
<PAGE>

EXECUTED by Tenant on       August 31, 1999     , 199  , and by Landlord on
                      --------------------------     --
September 7, 1999, to be effective upon full execution by Landlord and Tenant.
-----------------

                            LANDLORD:

                            PARKER RALEIGH DEVELOPMENT XXXII,
                            LIMITED PARTNERSHIP
                            BY: Parker Lincoln Developers, Inc., its Managing
Agent
ATTEST:

/s/ Vickie B. Poor       By:      /s/ David L. Brady
------------------                --------------------------------------

Asst. Secretary          Name:    David L. Brady
------------------                --------------------------------------
                                             Print or Type

(SEAL)                   Title:   Vice President
                                  --------------------------------------

                         TENANT:

                         PARADIGM GENETICS, INC., a North Carolina corporation

ATTEST:

/s/ Henry Nowak             By:   /s/ John Ryals
------------------                --------------------------------------

Secretary                   Name: John Ryals
------------------                --------------------------------------
                                              Print or Type

(SEAL)                      Title:  CEO/President
                                  --------------------------------------

                                       19
<PAGE>

                                A D D E N D U M

          This Addendum is attached and incorporated by reference in the lease
by and between PARKER-RALEIGH DEVELOPMENT XXXII, LLC ("Landlord") and PARADIGM
GENETICS, INC., a North Carolina corporation ("Tenant") dated 9-7-99 (the
"Lease"). In the event of a conflict between the terms and conditions of this
Addendum and the Lease, this Addendum shall govern and control. All terms
defined in the Lease shall have the same meaning herein.

The following shall constitute additional provisions or conditions to the Lease:

     1.   Tenant accepts the Premises "as is" and "where is" and Landlord shall
          not be required to make any improvements to the Premises except for
          the construction of a demising wall to partition Tenant's property
          from that of other adjoining tenants.

     2.   Tenant shall make all improvements required to obtain a Certificate of
          Occupancy and for Tenant's specific operations (the "Tenant
          Improvements"). Tenant must install two (2) bathrooms (one Men's and
          one Women's); 200 amp or greater electrical service; and all lighting
          and heating. At the completion of construction of the foregoing items,
          provided Landlord has inspected and approved the construction and a
          Certificate of Occupancy has been issued, Landlord will pay to Tenant
          $12,000.00 toward the cost of such improvements. All remaining costs
          shall be the sole responsibility of Tenant. In connection with the
          construction of the Tenant Improvements, Tenant shall be permitted to
          make roof penetrations in connection with the installation of
          ventilation equipment. Prior to the installation of such equipment,
          Tenant shall pay to Landlord a non-refundable amount of $350.00 for
          each roof penetration. In order for the appropriate warranties to
          remain in effect on the Building, including, but not limited to, the
          warranty on the roof, Tenant must use Landlord's roofing contractor to
          perform the roof penetrations.

          Tenant is responsible for maintaining the Premises and the surrounding
          areas in a neat and orderly fashion during the construction and
          removing all construction debris during and at completion of the
          construction. Tenant must perform the construction in accordance with
          all applicable laws, rules and regulations. Tenant shall perform the
          construction in a manner which will not disturb or interfere with the
          business operations of the adjoining tenants.

          All Tenant Improvements must be performed in accordance with the
          Tenant Improvement(s) Specifications attached hereto as Exhibit F-I
          (along with all exhibits FIA - FIM). Tenant shall immediately repair
          all damage caused to the Premises and/or Property caused by the
          construction of the Tenant Improvements. Tenant must maintain and keep
          in good condition all improvements throughout the Term of the Lease.
          At the termination or expiration of the Lease, Tenant must return the
          Premises to the original condition and repair all damage caused by the
          removal of the Tenant Improvements. Tenant shall not be permitted to
          remove any Tenant Improvements when the removal would cause
          irreparable damage to the Premises.

          Within 30 days of execution of the Lease, Tenant must submit to
          Landlord plans and specifications for all Tenant Improvements
          including permit-ready, architectural and engineered drawings.
          Landlord will notify Tenant of its approval of the plans within 10
          days of submission.

          Within 60 days of execution of the Lease, Tenant must submit to
          Landlord a copy of all contracts and purchase agreements with all
          contractors and sub-contractors who will be performing construction of
          the Tenant Improvements. Such contracts must include specific prices
          and construction costs.

          All construction of Tenant improvements must be complete within 150
          days of turnover of the Premises and Rent shall commence upon turnover
          of the Premises. Within this time period, Tenant must submit a
          Certificate of Occupancy along with executed lien waivers from all
          contractors and all warranties, if applicable, for the Tenant
          improvements. Tenant may not occupy the Premises

                                       20
<PAGE>

          for any reason other than the construction of the Tenant Improvements
          prior to the satisfaction of these conditions.

                            SIGNATURE PAGE TO FOLLOW

                                       21
<PAGE>

          Prior to the commencement of the Tenant Improvements, Tenant must
          obtain insurance coverage in accordance with all requirements as set
          forth in Section 7.6 of the Lease, which insurance must, in addition
          to providing all other coverages, provide coverage for army loss or
          damage to personal property arising from Tenant's, its contractors and
          agents and their performance of the work hereunder, and submit to
          Landlord proof thereof.

     3.   On condition that Tenant has fully complied with all the terms and
          conditions of the Lease, and on the further condition that Tenant
          gives Landlord 180 days' advance written notice to exercise the option
          to extend (failure to give notice being an absolute bar to any right
          on the part of the Tenant to so extend), Landlord hereby gives to
          Tenant the right to extend this Lease for three terms of one year
          each. The annual rent shall be $6.83 per square foot for year one,
          $7.38 per square foot for year two and $7.97 per square foot for year
          three. The same terms and conditions, except as to annual rent, as set
          forth in the Lease shall govern the parties' rights and obligations
          during Renewal Term and the additional extended term.

          Except as modified herein, all provisions of the Lease shall be in
          full force and effect.

                            LANDLORD:

                            PARKER RALEIGH DEVELOPMENT XXXII, LLC

                            BY: Parker Lincoln Developers, Inc.
                                its Managing Agent

                            By: /s/ David L. Brady
                                ------------------

                            Name: /s/ David L. Brady
                                  ------------------
ATTEST:                     Title: Vice President
                                  -----------------

/s/ Vickie B. Poor
------------------
Assistant Secretary
[CORPORATE SEAL]
                            TENANT:

                            PARADIGM GENETICS, INC.
                            a North Carolina corporation

                            By:  /s/ John Ryals
                                ---------------

                            Name: /s/ John Ryals
                                  -----------------
ATTEST:                     Title: CEO/President
                                   --------------
/s/ Henry Nowak
---------------
Assistant Secretary
[CORPORATE SEAL]

                                       22
<PAGE>

STATE OF NORTH CAROLINA
                                                            LEASE AMENDMENT NO.1
COUNTY OF WAKE

          This Amendment is made this 28th day of October 1999, by and between
PARKER RALEIGH DEVELOPMENT XXXII, LIMITED PARTNERSHIP ("Landlord") and PARADIGM
GENETICS, INC., a North Carolina corporation ("Tenant"). In the event of a
conflict between the terms and conditions of the Lease and this Amendment, this
Amendment shall govern and control. All terms defined in the Lease shall have
the same meaning herein. Except as modified herein all terms and conditions of
the Lease are ratified and confirmed in all other respects.

          WHEREAS, Landlord and Tenant entered into a written agreement of lease
dated September 7, 1999 (the "Lease") whereby the Landlord leased to Tenant
approximately 20,372 square feet of space located at 2933 5. Miami Boulevard,
Suites 122, 123, 124 and 125, Durham, North Carolina, 27703 (the "Premises"), as
amended; and

          WHEREAS, Landlord's name on the Lease is incorrectly stated as Parker-
Raleigh Development XXXII, Limited Partnership. Landlord's name is Parker-
Raleigh Development XXXII, LLC.

          Now, therefore, by mutual agreement of the parties and in
consideration of the mutual premises and obligations hereinafter set forth, the
Lease is hereby amended and modified as follows:

     1.   In Section 1.1 of the Lease, delete "Parker-Raleigh Development XXXII,
          Limited Partnership" and substitute "Parker-Raleigh Development XXXII,
          LLC."

     IN WITNESS WHEREOF, the parties hereto have hereunto executed this Lease
Amendment No. 1 in triplicate causing their respective seals to be affixed
hereto the day and year first above written.

                            LANDLORD:

                            PARKER RALEIGH DEVELOPMENT XXXII, LLC

                            BY: Parker Lincoln Developers, Inc.
                                as managing agent

                            By: /s/ David L. Brady
                                ------------------
                                Vice President
ATTEST:

/s/ Vickie Poor
---------------
Assistant Secretary
[CORPORATE SEAL]
                            TENANT:

                            PARADIGM GENETICS, INC.
                            a North Carolina corporation

                            By: /s/ John Ryals
                                --------------
                                President
ATTEST:

/s/ Henry Nowak
---------------
Assistant Secretary
[CORPORATE SEAL]

                                       23
<PAGE>

                                   Exhibit A
                                   ---------

                              Legal Description

                              Lincoln Park West
<PAGE>

                                   Exhibit B
                                   ---------

                                   Site Plan
                               Lincoln Park West

                                      25
<PAGE>

                                   Exhibit C
                                   ---------

                                 Building Plan

                                      26
<PAGE>

                                   EXHIBIT D

Landlord and Tenant hereby acknowledge and mutually agree that the Commencement
Date is 09/27/99, the Rental Commencement Date is 11/1/99 and the Expiration
Date is 09/30/02.

                         LANDLORD

                         Parker-Raleigh Development XXXII, LLC

                         By:  Parker Lincoln Developers, Inc.
                              its Managing Agent

                         By:  /s/ David L. Brady
                              ---------------------

                         Name:

                         Title:

                         Date:

                         TENANT

                         Paradigm Genetics, Inc.

                         By:  /s/ John Ryals
                              --------------

                         Name:  John A. Ryals
                                -------------

                         Title:  CEO, President
                                 --------------

                         Date:  Oct. 28, 1999
                                -------------

                                       27

<PAGE>

                                   Exhibit E
                                   ---------

                              Rules & Regulations

                                      28
<PAGE>

                                   Exhibit F
                                   ---------

                                  Floor Plan

                                      29
<PAGE>

                               Exhibit F-1A-F-1M
                               -----------------

                     Tenant Improvement(s) Specifications

                                      30
<PAGE>

                                   Exhibit G
                                   ---------

                                 Sign Criteria

                                      31<PAGE>

                                                                   Exhibit 10.23

                              AGREEMENT OF LEASE

                                    BETWEEN

                    TRIANGLE SERVICE CENTER, INC., LANDLORD

                                      AND

                        PARADIGM GENETICS, INC., TENANT

                                  BUILDING 6

<PAGE>

                               TABLE OF CONTENTS
<TABLE>
<CAPTION>
Section
Number           Description                                Page
------           -----------                                ----
<C>              <S>                                        <C>
 1               Premises                                      2
 2               Parking and Common Areas                      2
 3               Term                                          2
 4               Compliance with Laws and Use                  3
 5               Rental                                        4
 6               Adjustment for Operating Expenses             5
 7               Security Deposit                              8
 8               Services and Utilities                        9
 9               improvements: Commencement Date              11
10               Interior Alterations and Fixtures            12
11               Signs                                        13
12               Repairs and Maintenance                      13
13               Parking and Repairs                          14
14               Indemnification and Liability Insurance      15
15               Exoneration of Landlord                      15
16               Insurance                                    15
17               Release by Tenant                            16
16               Increase in Property Insurance               16
19               Fire                                         16
20               Condemnation                                 16
21               Assignment or Subleasing                    16.
22               End of Tenancy                               17
23               Quiet Enjoyment                              17
24               Subordinate                                  17
25               Default                                      17
26               Inspection                                   18
27               Memorandum                                   18
28               Estoppel Certificate                         19
29               Notices                                      19
30               Nature and Extent of Agreement               20
31               Benefit                                      20
Exhibit A        Description of Premises                      22
Exhibit B        Site Plan                                    23
Exhibit B1       Restrictive Covenants                        24
Exhibit C        Plans and Specifications                     25
Exhibit D        ADA Compliance                               26
Exhibit E        Option Rider                                 27

</TABLE>
<PAGE>

     STATE OF NORTH CAROLINA
                                                                 LEASE AGREEMENT
     COUNTY OF DURHAM

     THIS LEASE AGREEMENT ("Lease"), made this day of ___________ 1998. between
TRIANGLE SERVICE CENTER, INC., a North Carolina Corporation hereinafter called
"Landlord", and PARADIGM GENETICS, INC., a North Carolina corporation,
hereinafter called "Tenant", which terms "Landlord" and `Tenant' shall include,
wherever the context admits or  requires, singular or plural, and the heirs,
legal representatives, successors and assigns of the respective parties:

                              W I T N E S S E T H:
                              --------------------

     1.  PREMISES.  Landlord, in consideration of the covenants of Tenant, does
         --------
hereby lease and demise unto Tenant, and Tenant does hereby agree to take and
lease from Landlord upon the following terms, covenants, conditions and
stipulations, for the term hereinafter specified in the following described
premises:

     Building Number 6 containing approximately nine thousand eighty-eight
     (9,088.75) rentable square feet but excluding area B containing
     approximately one thousand eight hundred sixty-four and 43/100(1864.43)
     square feet for a net rentable area of approximately seven thousand two
     hundred twenty-four and 32/100 (7,224.32) square feet being more
     particularly shown on Exhibit A attached hereto and incorporated herein
     (the "Premises"), located in the Research Triangle Park, Durham, County,
     North Carolina, the project being known as Park Research Center, more
     particularly shown on Exhibit B attached hereto and incorporated herein
     (`Project").

     2.  PARKING AND COMMON AREAS.  Landlord grants to Tenant, its employees and
         ------------------------
invitees, a nonexclusive right to use, free of charge, during the term of this
Lease, but subject to the weight limitation set forth in Section 13, the parking
areas shown on Exhibit B, which are acknowledged to be for the use of such
persons along with others similarly entitled, for parking and for ingress and
egress between the Premises and other portions of the Project and the adjoining
streets, sidewalks, and highways. Tenant's employees shall park in areas
designated by Landlord and shall not park in any of the parking areas other than
those designated by Landlord.  The Premises are leased to Tenant based upon the
exterior dimensions of the buildings local within the Project The Common Areas
include all covered space, if any, outside the enclosed area of the Premises.
Such covered space, if any, shall be for the non-exclusive use of Tenant and for
ingress and egress between all other portions of the Project and the adjoining
streets and sidewalks. Tenant shall not use such covered space for any purpose
other than ingress and egress to the Premises.

     3.  TERM.  This Lease shall be for a term of one (1) year, commencing on
         ----
the commencement date (as defined in Section 9 hereof) and shall expire at 11:59
p.m. on the last day of the twelfth (12th) complete month thereafter.

     4.  COMPLIANCE WITH LAWS AND USE.
         ----------------------------

     (a) Compliance with Laws. Tenant, at its expense, shall comply with all
         --------------------
laws, ordinances, orders, rules and regulations of state, federal, municipal or
other agencies or bodies having jurisdiction relating to the use, condition
(excluding conditions which existed with respect to the Premises prior to
occupancy by Tenant and unrelated to the use or occupancy of the Premises by
Tenant) and occupancy of the Premises, and with recorded covenants conditions
and restrictions applicable for the Project, provided, however, that Tenant
shall not be required by reason of this covenant to make structural changes to
the Premises.
<PAGE>

     (b) Use. The Premises may be used as for general office, bio technology an
         ---
pharmaceutical development and scientific research and laboratory uses and for
no other purpose without Landlord's written consent first being obtained which
consent shall not be unreasonably withheld, subject however, to the Covenants
and Restrictions affecting the Research Triangle Park. A copy of said covenants
is attached hereto as Exhibit B1 and incorporated herein by reference. Tenant
shall not use or occupy or permit the Premises to be used or occupied, do or
permit anything to be done in or on the Premises, in a manner which would be
deemed disreputable or extra hazardous, or make void or voidable any insurance
then in force with respect thereto, or which will cause or be likely to cause
structural damage to the buildings within the Project or any part thereof, or
which will constitute a public or private nuisance.

     (c)  Hazardous Material.
          ------------------

     (i) Tenant shall not (either with or without negligence) cause or permit
escape, disposal or release of any biologically active or other hazardous
substances, or materials on the Premises except and unless such biologically
active or other hazardous substances have been pretreated prior to disposal or
release into the air or sewer in full compliance with all local, state, federal
and regulatory laws, rules, regulations and orders but in all events no less
than compliance with the highest standards prevailing in the industry for such
release or disposal. Tenant shall not allow the storage or use of such
substances or materials in any manner not sanctioned by law or by the highest
standards prevailing in the industry for the storage and use of  such substances
or materials, nor allow to be brought into the Building in which the Premises
any such materials or substances except to use in the ordinary course of Tenants
business and then only after written notice to Landlord of the identity of such
substance or materials. At the discretion of Landlord, written notice to
Landlord of the identity of such hazardous materials or substances may be
provided by delivery by Tenant to landlord copies of written records prepared by
or for Tenant which adequately describe and identify such substance and
material.  Tenant shall not cause or permit any Hazardous Material (as
hereinafter defined) to be brought upon, kept or used in or about the Premises
by Tenant, its agents, employees, contractors or invitees except the ordinary
course of Tenants business and in compliance with all applicable, rules and
regulations, ordinances and orders.  Tenant shall indemnify, defend and hold
Landlord harmless from any and all claims, judgments, damages, penalties, fines,
costs, liabilities or losses (including without limitation, diminution in value
of the Premises, damages for the loss or restriction on use in rentable or
usable space or of any amenity of the Premises, damages arising from any adverse
impact on marketing of space, any sums paid in settlement of claims, attorneys'
fees, consultant fees and expert fees) which arise during or after the lease
term as a result of the presence or use of biologically active or Hazardous
Materials on the Premises during the lease term. This indemnification of
Landlord by Tenant includes, without limitation, costs incurred in connection
with any investigation of site conditions or any clean-up, remedial, removal or
restoration work required by any federal, state or local governmental agency or
political subdivision because of Hazardous Material present in the soil or
ground water on or under the Premises to the extent Tenant is responsible
therefor. Without limiting the foregoing, if the presence of any Hazardous
Material the Premises caused by Tenant results in any contamination of the
Premises, Tenant shall promptly take all actions at its sole expense as are
necessary to return the Premises to the conditions existing prior to the
introduction of any such Hazardous Material to the Premises; provided that
Landlord's approval of such actions shall first be obtained, which approval
shall not be unreasonably withheld so long as such actions would not potentially
have any material adverse long-term or short-term effect on the Premises. The
foregoing indemnity shall survive the expiration or earlier termination of this
Lease.

     (ii) As used herein, the term "Hazardous Material" means any hazardous or
to substance, material or waste, including, but not limited to, those
substances, materials, and wastes listed in the United States Department of
Transportation Hazardous Materials Table (49 CFR 172.01) or by the Environmental
Protection Agency as hazardous substances pursuant to the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended (42
U.S.C. (S) 9601, et seq.), and any regulations promulgated pursuant thereto and
amendments thereto, or such substances, materials and wastes that are or become
regulated under any applicable local, state or federal law
<PAGE>

     5.  RENTAL
         ------

          (a) Base Rent. Tenant shall pay to Landlord as gross base rental
              ---------
     ("Base Rent") for the Premises during the term of this Lease, the sum per
     month set opposite the term of this Lease set forth below, which shall be
     paid in the amount set forth below:

<TABLE>
<CAPTION>
     Months  Rate          Monthly Base Rent    Annualized Base Rent
     ------  ----          -----------------    --------------------
<S>         <C>           <C>                  <C>
     1-12    $17.85 S.F.   $10,745.70           $128,948.40
</TABLE>

     Each installment of Gross Base Rent shall be due and payable in advance on
     the first of each and every calendar month of the term of this Lease, and
     shall be payable without demand or offset. Landlord will exercise
     commercially reasonable efforts to cause the Landlord Improvements to be
     completed on schedule but makes no representations to Tenant that
     Landlord's agents and contractors will complete said work within the
     schedule.

          (b) Pro ration of Rent. In the event that this Lease shall commence on
              -------------------
     a day other than the first day of a calendar month, or in the event that
     this Lease shall terminate on a day other than the last day of a calendar
     month, Base Rent (as well as all additional rents and charges reserved
     hereunder) for the portion of such partial month that this Lease is in
     effect shall be prorated, based upon a thirty (30) day month.

          (c) Cost of Increase. At the end of each lease year of the term
              ----------------
     hereof, monthly Base Rent to be paid to Landlord by Tenant for the upcoming
     lease year (less that portion of the Base Rent attributable to (i)
     Landlord's Operating Expenses which are to be annually adjusted as provided
     by Section 6 hereof and to (ii) the cost of Landlord Improvements provided
     for herein) (hereinafter Adjusted Base Rent") will increase in accordance
     with the cost of living (but in no event less than three percent (3%) per
     annum nor more than five percent (5%) per annum) as follows: The percentage
     increase of the cost of living will be made by calculating the percentage
     of variation of the current year the previous lease year, as indicated by
     the Consumer Price Index - Seasonally Adjusted U.S. City Average - All
     Items and Major Group Figures - All Urban Consumers (1982 - 84 - 100)
     ("CPI-U"), published by the Bureau of Labor Statistics of the United States
     Department of Labor from September to September. Said percentage will be
     multiplied by the existing monthly ease Rent, as illustrated in the sample
     formula below:

     [(March, 1999 CPI-U - March, 1998 CPI-U) + March 1998 CPI-UI] x monthly
     Adjusted Rent = adjustment in 1999 monthly Base Rent

     The resulting product will be the amount of increase in the upcoming year's
     monthly ~ Rent. In no event shall the Base Rent ever be reduced by reason
     of this subsection (c).  In the event that (i) the CPI-U ceases to use the
     1982-84 base of 100, or (ii) a substantial change is made in the number of
     items used in determining the CPI-U such that Landlord and Tenant agree
     that the CPI-U does not accurately reflect the purchasing power of the
     dollar, or (iii) the CPI-U shall be discontinued for any reason, Landlord
     shall designate notice to Tenant, a new index or base that measures the
     cost of living, with appropriate adjustment in such base or index to make
     the same comparable to the CPI-U.

          (d) Interest on Past-Due Rent and Late Charges. It any Base Rent,
              ------------------------------------------
     additional rent or any other sum due Landlord in accordance with any
     provisions of this Lease shall be paid within ten (10) days
<PAGE>

     after same is immediately when due, the same shall bear interest at the
     lesser of eighteen percent (18%) per annum or the highest contract rate
     allowed by law from ten (10) days after such due date until such sum and
     all such interest accrued thereon shall have been paid unless Landlord
     shall waive the same. Interest accrued as aforesaid shall be deemed to be
     additional rent hereunder due on demand. In addition to such remedies as
     may be provided under the default provisions of this Lease, Landlord shall
     be entitled to a late charge of five percent (5%) of the monthly Base Rent
     and any additional rent or other sum payable hereunder if not received
     within ten (10) days of the due date therefor, and a charge of five percent
     (5%) of the amount of any check given by Tenant not honored by the drawee
     bank when first presented for payment.

     6.  ADJUSTMENT FOR OPERATING EXPENSES.
         ---------------------------------

          (a) Definitions.  For the purposes of this Lease, the following
              -----------
     defined t shall have the meanings set forth below:

               (i) Rent Adjustment Year shall mean the twelve (12) month period
                   --------------------
          ending on the last day of February of each calendar year.

               (ii) Tenant's Proportionate Share of Landlord's Increased
                    ----------------------------------------------------
          Operating Expense shall mean the fraction of such Operating Expenses,
          -----------------
          the numerator of which is the rentable area of the Premises as the
          same forth in Section 1 of this Lease, and the denominator of which is
          the greater of (A) the arithmetic mean or average of the rentable
          areas of the building located within the Project actually leased and
          producing rentals on this day of each calendar quarter during the
          preceding Rent Adjustment Year, or (B) ninety five percent (95%) of
          the rentable areas of the buildings located within the Project.

               (iii) Landlord's Operating Expenses shall mean and include all
                     -----------------------------
          expenses including assessments for public betterments or improvements;
          ad valorem real estate taxes and any other tax on real estate as such:
          ad valorem taxes on furniture, fixtures, equipment or other property
          used in connection with the operation or maintenance of the Project;
          the costs, including legal and consulting fees, of contesting or
          attempting to reduce any of the aforesaid assessments or taxes;
          amortization of capital improvements which will improve the operating
          efficiency of the Project which will reduce Landlord's Operating
          Expenses; the cost of labor, materials insurance, utilities (including
          sewer and water) and services; such other reasonable expenses with
          respect to the operation, maintenance and management of the Project
          which shall be incurred or paid by or on behalf of Landlord and which
          shall be properly chargeable to such operation, maintenance and
          management in accordance with generally accepted accounting principles
          as applied to the operation, maintenance or management of an office
          and laboratory project.

          (b) Payments During Term. With respect to each Rent Adjustment Year or
              --------------------
     portion thereof during the term of this Lease, Tenant shall pay Landlord as
     additional rent in the manner hereinafter provided, Tenant's Proportionate
     Share of Landlord's Increased Operating Expenses in the amount by which
     Landlord's Operating Expenses paid or incurred by Landlord during such
     period exceeded Nine and 77/100 Dollars ($9.77) per square foot of the
     buildings within the Project. It is acknowledged and agreed that with
     respect to any Rent Adjustment Year or portion thereof it will not be
     possible to determine the actual amount of such excess, if any, until after
     the end of such Rent Adjustment year. Therefore, until Tenant's liability
     for Tenant's Proportionate Share of Landlord's Increased Operating Expenses
     have been determined, Tenant shall pay Tenant's Proportionate Share of
     Landlord's Increased Operating Expenses as follows:

               (i)  On or before December 31st of each calendar year beginning
          with calendar year 1999 during the term of this Lease, Landlord shall
          furnish Tenant with a statement setting forth the
<PAGE>

          total amount of Tenant's Proportionate Share of Landlord's Increased
          Operating Expenses and the amount by which Landlord's Operating
          Expenses for the preceding Rent Adjustment Year exceeded Landlord's
          Operating Expenses of Nine and 77/100 dollars ($9.77) per square foot
          provided, however, that Landlord not be obligated to furnish any such
          statement to Tenant unless and until Landlord shall determine that
          Tenant's Proportionate Share of Landlord Increased Operating Expenses
          in excess of those currently being paid by the Tenant are to be paid
          by Tenant pursuant to the terms of this subsection (i). From the
          beginning of each such Rent Adjustment Year and until Landlord shall
          furnish Tenant with a statement as aforesaid, Tenant shall continue to
          pay Landlord with each monthly installment of Base Rent the amount of
          the monthly payment for Tenant's Proportionate Share of Landlord's
          Increased Operating Expenses it shall have been obligated to pay
          during the preceding Rent Adjustment Year. Beginning with the first
          day of the calendar month following the date upon which Landlord shall
          have delivered to Tenant such statement, Tenant shall pay to Landlord
          that amount equal to the product of one-twelfth (1/12) of Tenant's
          Proportionate Share of Landlord Increased Operating Expenses as set
          forth on such statement multiply the number of calendar months in the
          Rent Adjustment Year which shall have begun as of said first day,
          minus the aggregate amount of the monthly payments for Tenant's
          Proportionate Share of Landlord's Increased Operating Expenses
          theretofore paid by Tenant during such Rent Adjustment Year. The
          remainder of Tenant's Proportionate Share of Landlord's Increased
          Operating Expenses shown on each such statement be paid by Tenant to
          Landlord with each succeeding monthly installment of Base Rent in
          equal consecutive monthly installments of one-twelfth (1/12) of the
          total amount of Tenant's Proportionate Share of Landlord's Increased
          Operating Expenses shown on such statement.

          (c) Payments at Conclusion of Lease. Compliance with the foregoing
              -------------------------------
     subsections (b)(i) will effect only a partial payment by Tenant of its
     obligations respect to Landlord's Operating Expenses. Accordingly, it is
     agreed that at the end of the term of this Lease or upon any earlier
     termination of this Lease or of Tenant's right to possession of the
     Premises, Tenant shall be obligated to pay Landlord the difference, if any,
     between the aggregate amount actually paid by Tenant with respect to
     Tenant's Proportionate Share of Landlord's Increased Operating Expenses and
     that which it is obligated to pay under the foregoing subsection on or
     before ninety (90) days following the end of the term of this Lease or an
     earlier termination of this Lease and until Tenant's obligations with
     respect to Tenant's Proportionate Share of Landlord's Increased Operating
     Expenses shall have been determined. Landlord shall furnish Tenant
     statements in the manner subject to the conditions stated in the first
     sentence of the foregoing subsection (b)(i) and upon the furnishing of each
     such statement, Tenant shall be obligated to and shall pay Landlord
     immediately the amount or portion thereof, if any, due aforesaid. Tenant's
     obligation to pay Tenant's Proportionate Share of Landlord's Increased
     Operating Expenses shall survive any expiration or other termination of
     this Lease.

          (d) Inspection of Books and Records.   In the event that Tenant is
              -------------------------------
     required to pay a share of Landlord's Operating Expenses pursuant to this
     Section 6, Tenant shall have the right, at Tenant's expense, to inspect
     Landlord's books and records showing Landlord's Operating Expenses for the
     Rent Adjustment Year in question.  Landlord's statement setting forth the
     total amount of Tenant's Proportionate Share of Landlord's Increased
     Operating Expenses furnished to Tenant in accordance with the provisions of
     this Section 8 shall be deemed to have been approved by Tenant unless
     protested by Tenant in writing within ninety (90) days after delivery of
     such statement to Tenant.

          (e) Rent Tax. In addition to Tenant's Proportionate Share of Landlord
              --------
     Increased Operating Expenses hereinbefore provided to be paid by Tenant,
     Tenant shall reimburse Landlord upon demand for any and all taxes payable
     or paid by Landlord whether or not now customary or within the
     contemplation of the parties hereto which are levied upon or measured by
     the rental or any other sum payable hereunder as such, including without
     limitation, any gross income tax or excise leveled by any
<PAGE>

     governmental body with respect to the receipt of such rental or such other
     sum (excluding, however, any federal, state or local net income taxes which
     Landlord may be obligated to pay). In the event that it shall not be lawful
     for Tenant to so reimburse Landlord, the rental, as adjusted, payable to
     Landlord under the Lease shall be revised to net Landlord the same net
     rental after imposition of a such tax upon Landlord as would have been
     payable to Landlord prior to the imposition of any such tax.

          (f) Additional Rent. Tenant's Proportionate Share of Landlord's
              ---------------
     Increased Operating Expenses, for the purposes of the default provisions
     hereof, shall be deemed to be additional rent due from Tenant and any
     default in the payment thereof shall entitle Landlord to all remedies
     provided for herein or at law or in equity on account of Tenant's failure
     to pay rent. The other provisions hereof to the contrary notwithstanding,
     Tenant's payments pursuant to this Section 6 of a portion of the increased
     expense of operating the Project shall not be deemed payments of rent as
     that term is construed relative to governmental wage and price controls
     analogous governmental actions affecting the amount of rent which Landlord
     may charge Tenant.

     7.  SECURITY DEPOSIT:
         ----------------

          (a) Amount of Deposit. Tenant, contemporaneously with the execution
              -----------------
     this Lease, has deposited with Landlord the sum of ten thousand seven
     hundred forty-five and 70/100 Dollars ($10,745.70). the receipt of which is
     hereby acknowledged by Landlord.  Said deposit shall be held by Landlord,
     without liability for interest, as security for the faithful performance by
     Tenant of all of the terms, covenants, and conditions of this Lease by said
     Tenant to be kept and performed during the term hereof.

          (b) Use and Return of Deposit.  If at any time during the term of this
              -------------------------
     Lease any of rent herein reserved shall be overdue and unpaid, or any other
     sum payable to Landlord by Tenant hereunder shall be overdue and unpaid,
     then Landlord may at the option of Landlord (but Landlord shall not be
     required to), appropriate and apply any portion of said deposit to the
     payment of any such overdue rent or other sum.  In the event of the failure
     of Tenant to keep and perform any of the terms, covenants and conditions of
     this Lease, then Landlord at its option may appropriate and apply said
     entire deposit, or so much thereof as may be necessary, to compensate
     Landlord for all loss or damage sustained or suffered by Landlord to such
     breach on the part of Tenant. Should the entire deposit, or any portion
     thereof, be appropriated and applied by Landlord for payment of overdue
     rent other sums due and payable to Landlord by Tenant hereunder, then
     Tenant shall upon the written demand of Landlord, forthwith remit  to
     Landlord a sufficient amount in cash to restore said security to the
     original sum deposited, and Tenant's failure do so within ten (10) days
     after receipt of such demand shall constitute a breach of this Lease.
     Should Tenant comply with all of said terms, covenants and conditions and
     promptly pay all of the rental herein provided for as it becomes due, and
     all other sums payable to Landlord by Tenant hereunder, the said deposit
     shall be promptly returned in full to Tenant at the end of the term of this
     Lease, or upon the earlier termination of this Lease.

          (c) Transfer of Deposit. Upon notice to Tenant in writing Landlord may
              -------------------
     deliver the funds deposited hereunder by Tenant to the transferee of
     Landlord's interest in the Premises, in the event that such interest be
     transferred and thereupon Landlord shall be discharged from any further
     liability with respect to such deposit.

          (d) No Liability of Mortgagee.  Tenant shall not be entitled to look
              -------------------------
     to the mortgagee, as mortgagee, mortgagee in possession, or successor in
     title to the Premises, for accountability for any security deposit required
     by Landlord hereunder unless said sums have actually been received by said
     mortgagee as security of Tenant's performance of this Lease.
<PAGE>

     8. SERVICES AND UTILITIES.
        ----------------------

        (a) Services. Landlord shall provide in consideration of the Base Rent
            --------
following:

            (i)    Heating, ventilation, and air conditioning ("HVAC") for the
                   Premises during Business Hours to maintain temperatures for
                   comfortable use and occupancy;

            (ii)   Janitorial services to the office and common areas of the
                   Premises (all Business Days, Monday through Friday);

            (iii)  Hot and cold water sufficient for drinking, lavatory, toilet,
                   and ordinary cleaning purposes;

            (iv)   Electricity to the Premises at all times and in reasonable
                   amounts necessary for normal office and laboratory use and
                   lighting;

            (v)    Replacement of lighting tubes, lamp ballasts, and bulbs and
                   damaged or stained ceiling tiles;

            (vi)   Extermination on and pest control when necessary; and

            (vii)  Maintenance of Common Areas and core areas and exterior
                   walls, glass plumbing, electrical and HVAC.

            (viii) Drive through security; and

            (ix)   Parking Lot illumination

            (x)    Snow and ice removal.

          (b)  Business Hours. "Business Hours" means: Monday through Friday,
               --------------
               8:00 through 5:00 p.m., but excludes the following holidays or
               the days on which the holidays are designated for observance:
               New Year's Day, Easter (Good Friday),  Memorial Day, July Fourth,
               Labor Day, Thanksgiving Day, and Christmas Day.

          (c)  24 Hour Access. Tenant, its employees, agents, and invitees shall
               --------------
               have access to the Premises, twenty-four (24) hours a day, seven
               (7) days a week, If, however, the Building must be closed during
               Business Hours, then the Base Rent and Additional Rent shall
               abate during any closing that lasts more than twenty-four (24)
               hours.

          (d)  Extra Services.  Landlord, shall have the right to monitor the
               --------------
               Tenant's use of electrical and gas consumption which shall
               include heating, and air conditioning within the Premises.
               Whenever Landlord knows that any tenant (including Tenant) is
               using extra services because of either non Business-Hours use or
               high electricity consumption installations, Landlord may directly
               charge that tenant for the extra use and those charges shall be
               excluded from Operating Expenses. Extra services include:

               (i)   Non Business-Hours Use. Electricity required by Tenant
                     ----------------------
                     during non-Business Hours for lighting, or electrical
                     service to the Premises shall be provided by Landlord.
                     Tenant shall be responsible for additional electrical
                     consumption anticipated in connection with Tenants' Non-
                     business Hours use of the Premises. In lieu of separate
                     metering and accounting for Non-business Hours electrical
<PAGE>

                     consumption, Building electrical expenses in excess of $.79
                     per square foot, adjusted for rate increases, all as
                     determined by Landlord shall be paid by Tenant per year as
                     Additional Rent in the next succeeding month following
                     notice by Landlord. Building electrical expenses shall be
                     determined by Landlord by monitoring of electrical usage of
                     the Building and shall be pro rated.

               (ii)  Excess  Utility Use. Tenant shall not place or operate in
                     -------------------
                     the Premises any electrically operated equipment or other
                     machinery, other than typewriters, personal computers,
                     adding machines, reproduction machines, and machinery and
                     equipment normally used in offices and laboratories, unless
                     Tenant receives Landlord's advance written consent.
                     Landlord shall unreasonably withhold or delay its consent,
                     but Landlord may require payment for the extra use of
                     electricity caused by operating this equipment or
                     machinery, Landlord may require that special, high
                     electricity consumption installations of Tenant such as
                     computer or reproduction facilities (except personal
                     computers or normal office photocopy machines) may be
                     separately sub-metered for electrical consumption at
                     Tenant's cost

               (iii) Payment. Tenant's charges for the utilities provided in
                     -------
                     (i) and (ii) above be one hundred percent (100%) of
                     Landlord's actual cost of labor and utilities and shall be
                     Additional Rent

                     Tenant's failure to pay the charges in (i) and (ii) above
                     within thirty (30) of receiving a proper and correct
                     invoice shall entitle Landlord to the remedies it has upon
                     Tenant's failure to pay Base Rent.

          (e)  Interruption of Services. Landlord does not warrant that any
               ------------------------
               services Landlord supplies will not be temporarily interrupted.
               Services may be temporarily interrupt because of accidents,
               repairs alterations, improvements, or any reason beyond
               reasonable control of Landlord. Any temporary interruption shall
               not

               (i)   be considered an eviction or disturbance of Tenant's use
                     and possession of the Premises;

               (ii)  make Landlord liable to Tenant for damages;

               (iii) abate Base Rent or Additional Rent; or

               (iv)  relieve Tenant from performing Tenant's Lease obligations.

     9.  IMPROVEMENTS: COMMENCEMENT DATE.
         -------------------------------

     Landlord or Landlord's agents have made no representations or promises with
     respect to the Project or Premises except as expressly set forth herein.
     The taking possession or the Premises by Tenant shall constitute conclusive
     evidence, as against Tenant, that Tenant accepts the same "as is" subject
     to the Landlord Improvements provided for hereinafter and that the Premises
     and the Project were in good condition at the time as such possession was
     so taken, subject to completion of Landlord Improvements provided for
     hereinafter and subject to any punch list made by Tenant.  Any further
     additions or changes required by Tenant must be in writing and approved in
     writing Landlord and will be at the expense of Tenant. Landlord's approval
     or rejection of such improvements shall not be unreasonably delayed.
<PAGE>

     Notwithstanding anything to the contrary in this Lease, no rent shall
     accrue to Landlord until the Commencement Date (as hereinafter defined)

     (a)  Substantial Completion. Landlord shall use its best efforts to
          ----------------------
          substantially complete Landlord's Improvements to the Premises within
          twenty-one (21) days from the date of Lease execution by the parties
          (`Target Date"). Substantially complete means completing Landlord's
          Improvements described in Section 9 (e) and Exhibit C incorporated
          herein by reference so that Tenant can use the Premises for their into
          purposes.

     (b)  Notice. Landlord shall give Tenant advance notice of the estimated
          ------
          substantial Completion Date if different from the Target Date. If the
          estimated substantial Completion Date changes at any time after
          Landlord gives notice, then Landlord give advance notice of the new
          estimated substantial Completion Date.

     (c)  Inspection and Punchlist. Within 30 days after the Commencement Date,
          ------------------------
          the parties shall inspect the Premises, have all systems demonstrated,
          and prepare a punchlist.  The punchlist shall list incomplete, minor,
          or insubstantial details of construction; necessary mechanical
          adjustments; and needed finishing touches. Tel acceptance of
          possession of the Premises after such inspection shall be conclusive
          evidence that the Premises were in good order and satisfactory
          condition, except for any punchlist items.

     (d)  Delayed Possession.  Tenant may cancel this Lease if Landlord cannot
          ------------------
          deliver a possession of the substantially complete Premises by one
          hundred and eighty days (180) after the Target Date. To cancel, Tenant
          must give notice to Landlord within (60) days after the expiration of
          such one hundred and eighty day period and before Landlord gives
          notice to Tenant that the Premises are substantially complete. The one
          hundred and eighty (180) day Period above shall be extended in the
          time equal to period of delay caused by Tenant. Within thirty (30)
          days after cancellation, Landlord shall return to Tenant prepaid
          consideration including Rent and deposits, and neither  party shall
          have any further rights or obligations under this Lease.

     (e)  Landlord Improvements. Landlord at its expense, shall make
          ---------------------
          improvements to Premises in accordance with Exhibit C ("Landlord
          Improvements") incorporated herein by reference. The Landlord
          Improvements shall be completed in a good workmanlike manner and
          comply with all applicable laws, ordinances, rules, regulations of
          governmental authorities, including ADA requirements as provided by
          Exhibit D, which is incorporated herein by reference.

     (f)  HVAC Improvements. Tenant desires to install additional heating,
          -----------------
          ventilation and air conditioning ("HVAC") equipment in the Premises to
          permit twenty-four hour, seven day per week use of the Premises by
          Tenant. Subject to the terms of this Section and Section 10 (a),
          Landlord agrees that Tenant, at its cost and expense, may install
          additional HVAC equipment and systems (the "HVAC Improvements") in the
          Premises; subject to the provisions hereof. After execution of this
          Lease by Landlord and Tenant, Tenant shall submit to Landlord for its
          approval plans and specifications for the HVAC Improvements. The HVAC
          Improvements and systems shall be designed to provide for removal from
          the Premises without damage to the Premises. Landlord shall not
          unreasonably withhold, condition or delay its approval of the plans
          and specifications for the HVAC Improvements prepared in accordance
          with the provisions hereof, and shall respond reasonably promptly to
          such plans and specification. The plans and specifications as approved
          by Landlord are hereinafter referred to as the "Plans".  Prior to
          expiration of termination of this Lease, Tenant may remove the HVAC
          Improvements from the Premises, provided Tenant (i) provides adequate
          assurance to Landlord that Tenant shall Tenant repair any damage to
          the Premises caused by such installation or removal and (ii) provides
<PAGE>

          adequate assurances to Landlord Tenant shall make any recurring
          repairs or maintenance to the Premises as a result of the installation
          or removal of the HVAC Improvements for no less than one year after
          removal.

     The Lease begins ("Commencement Date") on the earlier of:

               (a)  The date Tenant takes possession and occupies the Premise
                    installation of its furniture and equipment or forty-five
                    (45) days from the date of Lease execution by the parties.

               (b)  After (i) the Premises are substantially completed according
                    to Section 9(a), (ii) Landlord gives the notice required by
                    Section 9 (b), (iii) Landlord is ready, willing and able to
                    deliver actual possession of the Premises, and (iv) the
                    Target Date set in Section 9(a) arrived.

     The Lease ends ("Expiration Date") at 11:59 p.m. and the last day of the
     calendar month twelve months (12) following the Commencement Date, unless
     terminated earlier under this Lease. Within thirty (30) days after the
     Commencement Date, the parties shall confirm in writing Commencement Date
     and Expiration Date.

     10.  INTERIOR ALTERATIONS AND FIXTURES.
          ---------------------------------

          (a)  Interior Alterations. Tenant shall make no structural or interior
               --------------------
     alterations of the Premises without Landlord's prior written consent which
     shall not unreasonably be withheld.  If Tenant requires alterations, Tenant
     shall provide Landlord's managing agent with a complete set of construction
     drawings, and such agent shall then determine the actual cost of the work
     to be done (to include a construction supervision fee of 5% to be paid to
     landlord's managing agent). Tenant may then either agree to pay Landlord to
     have the work done or withdraw its request for alterations. All alterations
     and improvements shall be the property of Landlord unless otherwise agreed
     in writing by Landlord and Tenant.

          (b)  Fixtures. Tenant may construct and build or install in the
               --------
     Premises any and all bins, racks, counters, shelves, mirrors, chairs or
     other similar fixtures and/or laboratory equipment of every kind and nature
     as may be necessary or desirable for Tenant's office and pharmaceutical
     laboratory use of the Premises, which bins, racks, counters, shelve
     mirrors, chairs and other fixtures and laboratory equipment shall at all
     times be and remain the property of Tenant, and, if not in default
     hereunder, Tenant shall have the right to remove all or any part of the
     same from the Premises at any time, provided that Tenant shall repair or
     reimburse Landlord for the cost of repairing any damages to the Premise
     resulting from the installation of  or removal of such items unless
     otherwise agreed in writing by Landlord and Tenant.  Tenant shall be
     responsible for whatever expenses are incurred connecting its equipment to
     water, sewer, gas or other utilities, lines, and any other charges incurred
     in the installation of said equipment.

     11.  SIGNS: Landlord has established a uniform signage program for the
          -----
Project and shall provide a building identification and Tenant identification
sign or signs for the Premises at Tenant's expense and to be installed at
locations designated by Landlord. Other than the foregoing, Tenant shall not
permit, allow or cause to be erected, installed, maintained, painted or
displayed on, in or at the Premises any interior or exterior sign, lettering,
placard, announcement, decoration, advertising media or advertising material of
any kind whatsoever, visible from the exterior of the Premises, without the
prior written approval of Landlord.
<PAGE>

     12.  REPAIRS AND MAINTENANCE.
          -----------------------

          (a)  Tenant's Care of Premises. Tenant shall:

               (i)   keep the Premises and fixtures in good order;

               (ii)  make repairs or replacements to the Premises or Building
                     because of Tenant's misuse or negligence, except to the
                     extent that the repairs or replacements are covered by
                     Landlord's insurance or the insurance Landlord is required
                     to carry under this Lease, whichever is greater;

               (iii) repair and replace special equipment or decorative
                     treatments installed by or at Tenant's request that serve
                     the Premises only, except

                     (1)  to the extent the repairs or replacements are needed
                          because Landlord's misuse or primary negligence, and
                          are not covered Tenant's insurance or the insurance
                          Tenant is required to carry under this Lease,
                          whichever is greater, or

                     (2)  if the Lease is terminated under Article IX (Loss of
                          Premises); and

               (iv)  not commit waste.

          (b)  Landlord's Repairs. Except for repairs and replacements that
          Tenant must make under Paragraph 12 (a), Landlord shall pay for and
          make all other repairs replacements to the Premises, Common Areas and
          Building (including Building fixtures and equipment). Landlord shall
          make the repairs and replacements to maintain the building in a
          condition consistent with other comparable office buildings in the
          Raleigh, North Carolina area. This maintenance shall include the
          foundation, exterior walls, interior structural walls, all structural
          components, and all systems, such as mechanical, electrical, HVAC, and
          plumbing.

          (c)  Time for Repairs. Repairs or replacements required under
          Paragraphs 12(a) or 12(b) shall be made within a reasonable time
          (depending on the nature of the ft or replacement needed) after
          receiving notice or having actual knowledge of need for a repair or
          replacement.

          (d)  Surrendering the Premises. Upon the Expiration Date or earlier
          termination of Lease, Tenant shall surrender the Premises to Landlord
          in the same condition that the Premises were in on the Commencement
          Date except for:

               (i)   ordinary wear and tear;

               (ii)  damage by the elements, fire, and other casualty unless
                     Tenant would be required to repair under paragraph 12(a);

               (iii) condemnation;

               (iv)  damage arising from any cause not required to be repaired
                     or replace Tenant; and

               (v)   alterations as permitted by this Lease unless consent was
                     conditioned on their removal.

     On surrender Tenant shall remove from the Premises its personal property,
     trade fixtures and any alterations required to be removed and repair any
     damage to the Premises caused by the removal. Any items not removed by
     Tenant as required above shall be considered abandoned. Landlord may
     dispose of
<PAGE>

     abandoned items as Landlord chooses and bill Tenant for the cost of their
     disposal, minus any revenues received by Landlord for their disposal.

     13.  PARKING and REPAIRS. Landlord shall maintain in good condition and
          -------------------
repair the parking areas as shown on  Exhibit B, providing Tenant shall not
permit its agents, employees or invitees to place excessive loads on said
parking areas, the maximum load for any vehicle not to exceed eight (8) kips per
axle for the parking area in front of the buildings within the Project, or more
than twelve (12) kips per axle for the loading area to the rear of the buildings
within the Project. Except as otherwise provided herein, there shall be no
allowance to Tenant for a diminution rental value and no liability on the part
of Landlord for inconvenience, annoyance or injury to business arising from
Landlord or others making any repairs to the Project or Premises and no
liability upon Landlord for failure of Landlord or others to make any repairs,
alterations, additions improvements in or to any portion of the Project or
Premises if Landlord acted diligently and in a reasonable manner, Landlord, its
agents and employees, shall have access to and the right to enter the Premises
at any reasonable time to examine the condition thereof, to make repairs,
alterations or additions therein, including, but not limited to, the tight of
Landlord to extend through the Premises, in a non-obstructing and workmanlike
manner, all utility lines and sprinkler system lines serving other leased space
within the Project with reasonable notice to Tenant.

     14.  INDEMNIFICATION AND LIABILITY INSURANCE
          ---------------------------------------

          (a) Obligations of Tenant. Tenant shall indemnify and save harmless
              ---------------------
     Landlord from any claim or loss by reason of any accident or damage to any
     person or property happening on or about the Premises or arising out of or
     on account of the use or occupancy of the Premises by Tenant, and Tenant
     shall maintain and carry at its expense commercial general liability
     insurance and property damage insurance with respect to the Premises, the
     business operated by Tenant in the Premises, in which the limits of
     commercial general liability shall not be less than $2,000,000.00 with
     respect to each occurrence, not less than $2,000,000 with respect to
     personal injury or death of a single person, not less than $2,000,000
     general aggregate. Such policies shall name Landlord and Tenant as insured
     parties as their interest may appear, and Tenant shall deliver to Landlord
     certificates of insurance certifying that such insurance is in full force
     and effect.

          (b) Obligations of Landlord. Landlord shall indemnify and save Tenant
              -----------------------
     harmless from any claim or loss by reason of accident or damage to its
     person or property happening on the Premises and arising by reason of the
     negligence or willful misconduct Landlord, and Landlord shall maintain and
     carry at its expense commercial general liability insurance in which the
     limits of commercial general liability shall not be less than $2,000,000.00
     with respect to each occurrence, not less than $2,000.000 with respect to
     personal injury or death of a single person, not less than $2,000,000
     general aggregate, which policies shall protect Tenant to the extent of the
     coverage provided in said policies.

     15.  EXONERATION OF LANDLORD. Landlord shall not be responsible or liable
          -----------------------
to Tenant or to Tenant's employees, agents or invitees for any injury or damage
resulting from acts or omissions of Tenant or Tenant's employees, agents or
invitees, or persons occupying property adjoining the Promises or any part of
the Project, or for any Injury or damage resulting from any portion of the
Project becoming out of repair, or caused by the bursting, stoppage or leaking
of water gas, sewer or steam pipes, except where such loss or damage arises by
reason of the willful or negligent misconduct of Landlord, its agents, servants,
or employees, or Landlord's failure to make the repairs which it is obligated to
make hereunder.

     16.  INSURANCE. Landlord, at its expense, shall keep the Building and
          ---------
Premise insured against loss or damage by fire with extended coverage
endorsement in an amount sufficient to prevent Landlord from becoming a
co-insurer under the terms of the applicable policies but, in any event, in an
amount not less than ninety percent (90%) of the full replacement cost thereof
as determined from time to time. Tenant, at its
<PAGE>

expense, shall maintain like insurance coverage on such of its own equipment,
furniture, and other property as it may place and use within or on the Premises.
All of such insurance shall be issued by financially responsible insurers duly
authorized to do business in the State of North Carolina.

     17.  RELEASE BY TENANT. Tenant hereby waives and releases all rights of
          -----------------
recovery which it might otherwise have against Landlord, its agents and
employees, for loss or damage to Tenant's contents, furniture, furnishings,
fixtures or other property removable by Tenant under the provisions of this
Lease to the extent that the same are coverable by Tenant's insurance,
notwithstanding that such loss or damage may result from the negligence or fault
of Landlord, its agents or employees. Policies required to be maintained by
Tenant hereunder shall contain waivers of subrogation by the insurers against
Landlord and endorsements authorizing Tenant Landlord to execute mutual releases
as between themselves.

     18.  INCREASE IN PROPERTY INSURANCE. If, as the result of any act or
          ------------------------------

negligence of Tenant, its employees, representatives or visitors at the
Premises, or if the manner in which business is conducted at the Premises, the
fire and extended coverage insurance rate of Landlord shall be increased over
the rate existing at the beginning of the term of this Lease, Tenant on demand
shall pay to Landlord as additional rent the amount of such increase
attributable to the actions of Tenant.

     19.  FIRE. If the Premises are damaged by fire, the elements, or other
          ----
casualty, but damage is such that restoration within ninety (90) days is
feasible, Landlord shall, at its expense, cause the Premises to be repaired
within a reasonable time, and the rent during the period of repair shall abate
proportionately as to the portion of the Premises rendered untenantable by the
damage.  If the Premises are rendered wholly untenantable by reason of such
damage or to such extent restoration is not feasible within ninety (90) days,
Landlord may proceed to cause the damage to be repaired, and in such case rent
shall abate until the Premises have been restored to tenantable condition,
provided, however, that in such case either Tenant or Landlord may within thirty
(30) of the date of the occurrence of such damage notify the other of
termination of this Lease. If each party elects to so terminate, any rent due
shall be adjusted to the date of the damage and after payment of such amounts to
Landlord as may then be due, all rights under this Lease shall terminate.

     20.  CONDEMNATION. If the whole or as much as twenty (20%) percent of the
          ------------
Premises is taken by any governmental agency or corporation vested with the
right of exercise eminent domain, whether such taking be effected by court
action or by settlement with the agency exercising or threatening to exercise
such power and if the property so taken renders the remainder of said property
unfit for the use thereof by Tenant then Tenant shall have the option to
terminating this Lease, which option must be exercised within sixty (60) days of
such taking. If Tenant shall not so elect to terminate, or if the taking does
not interfere with Tenant's use of the Premises to the extent Tenant does not
have an option to terminate, there shall be an adjustment of the annual rental
reflecting on a pro rata basis any reduction in Tenant's leased space. All of
the condemnation award except for damage to or the taking of Tenant's personal
property and Tenant's relocation award, if any, shall be Landlord's.

     21.  ASSIGNMENT OR SUBLEASING. Tenant may not assign this Lease, or
          ------------------------
sublease the Premises in whole or in part, without first obtaining the written
consent of Landlord, which consent shall not be unreasonably withheld or
delayed. Such assignment or sublease consented to by Landlord will not relieve
Tenant of its responsibility for the payment of rent and due performance of all
other terms and covenants and conditions of this Lease. Any rental from assignee
or subtenant to whom Landlord consents which is in excess of the rental due
hereunder shall be payable to Landlord as additional rental hereunder net of
Tenant's expenses to assign sublet.

     22.  END OF TENANCY. Tenant shall yield up the Premises and all additions
          --------------
thereto (except signs, equipment and trade fixtures installed by Tenant at its
expense) at the termination of the tenancy in as good and tentable condition as
the same are at the beginning of Tenant's occupancy, reasonable wear, damage by
fire and
<PAGE>

other casualties and appropriation by eminent domain excepted, and also
excepting any damage, disrepair and other condition that Landlord is obligated
hereunder to repair or correct.

     23.  QUIET ENJOYMENT.  Landlord covenants that Tenant upon paying the rent
          ---------------
herein reserved and performing the covenants and agreements hereof shall
peaceably and quietly have, hold and enjoy the Premises, and all rights,
privileges, easements and appurtenances in anywise appertaining thereto, during
the full termination of this Lease.

     24.  SUBORDINATE.  This Lease shall at all times be subject and subordinate
          -----------
to the lien of any mortgage (which termination shall include all security
instruments) that may be placed on the Premises by Landlord. Tenant shall,
without cost, execute within fifteen (15) days of request any instrument as may
be required to effectuate such subordination, provided, however, Landlord, if
requested, shall use its best efforts to obtain from any such mortgagee an
agreement in writing be delivered to Tenant, providing in substance that, so
long as Tenant shall faithfully discharge obligations on its part to be kept and
performed under the terms of this Lease, its tenancy shall be disturbed. Tenant
shall within ten (10) business days of request therefor sign and deliver to
Landlord's mortgagee a statement acknowledging the facts with respect to
acceptance of the Premises, date of occupancy, date to which rent is paid and
amount payable monthly, and any other matters relevant to the tenancy.

     25.  DEFAULT.
          -------

          (a) Events of Default and Remedies. If at any time there shall occur
              ------------------------------
     any of the following events:

              (i) If Tenant shall default in the payment of any monthly
          installment of rent or any other sum of money becoming due hereunder
          and such default shall continue for ten (10) days after written notice
          thereof; or

              (ii) If Tenant shall default in the performance of any other
          material agreement, covenant or stipulation set forth in this Lease,
          and such default shall continue for thirty (30) days after written
          notice thereof; or

              (iii) If Tenant shall abandon all or a portion of the Premises; or

              (iv) If Tenant shall file or have filed against it a petition for
          the appointment of a receiver or trustee for all or substantially all
          of the assets or Tenant, and such appointment shall not be vacated or
          set aside within sixty (60) days;

          then and in any of such events Landlord, without excluding other
          rights or remedies that may have, shall have the immediate right of
          re-entry and may remove all persons and property from the Premises and
          dispose of such property as it sees fit, all without resort to legal
          process and without being deemed guilty of trespass, or becoming
          liable for any loss or damage which may be occasioned hereby. If
          Landlord should elect to re-enter as then provided, or should it take
          possession pursuant to legal proceedings, it may either terminate this
          Lease, or it may from time to time without terminating this Lease make
          such alteration and repairs as may be necessary in order to relet the
          Premises, and relet the Premises for such term and at such rentals and
          upon such other terms and conditions as Landlord may deem advisable.
          No such re-entry or taking possession of the Premises by Landlord
          shall be construed as an election to terminate this Lease unless a
          written notice of such intention be given to Tenant by Landlord at the
          time of such re-entry; but, notwithstanding any such re-entry and
          reletting without termination, Landlord may at any time thereafter
          elect to terminate this Lease for such previous breach. In the event
          of any termination by Landlord whether before or after re-entry,
          Landlord may recover from Tenant damages incurred by reason of such
          breach, including the cost of recovering the Premises, removing
          Tenant's
<PAGE>

          property from the Premises, upfitting the Premises for future tenants
          who will occupy the Premises during the term of this Lease, and the
          difference in value between the rental which would be payable by
          Tenant hereunder for the remainder of the term and the reasonable
          rental value of the Premises for the remainder of the term. In
          determining the rental which would be payable by Tenant hereunder
          subsequent to default, the annual rental for each year of the
          unexpired term shall be equal to the average rental paid or payable by
          Tenant from the commencement of the term to the date of default.

          (b) Exercise of Remedies. No remedy herein or otherwise conferred upon
              --------------------
     or reserved to Landlord shall be considered exclusive of any other remedy,
     but the same shall be distinct, separate and cumulative and shall be in
     addition to every other remedy given hereunder, or now or hereafter
     existing at law or in equity or by statute, and every power and remedy
     given to Landlord by this Lease may be exercised from time to time as often
     as occasion may arise, or as may be deemed expedient. No delay or omission
     of Landlord exercise any right or power arising from any default on the
     part of Tenant shall impair an such right or power, or shall be construed
     to be a waiver of any such default or an acquiescence thereto.

          (c) Costs and Expenses. Tenant shall pay all costs, expenses and
              ------------------
     reasonable attorneys' fees that may be incurred or paid by Landlord in
     enforcing covenants, conditions and agreements of this Lease, whether
     incurred as a result of litigation or otherwise.

     28.  INSPECTION. Landlord, its agents or other representatives shall have
          ----------
the right upon twenty-four (24) hours notice (except in cases of emergency, when
no notice shall be required) to enter into and upon the Premises, or any part
thereof, for the purpose of examining same but Landlord shall not disturb the
operation of Tenant.

     27.  MEMORANDUM. This Lease shall not be recorded. On request of Tenant,
          ----------
Landlord shall execute a memorandum of this Lease suitable for recording which
shall omit the financial terms herein but which shall identify the Premises and
the term. A recorded memorandum of this Lease may be canceled of record by a
document executed solely by Landlord or its successor in interest after the
expiration of the Lease,

     28.  ESTOPPEL CERTIFICATE. Within no more than ten (10) business days after
          --------------------
written request by Landlord, Tenant shall execute, acknowledge, and deliver to
Landlord a certificate stating (a) the Commencement Date of this Lease and the
Expiration Date of this Lease, (b) that this Lease is unmodified and in full
force and effect, or, if the Lease is modified, the way which it is modified
accompanied by a copy of the modification agreement, (c) the date to which
rental and other sums payable under this Lease have been paid, (d) that no
notice has been received by Tenant of any default which has not been cured, or,
if such a default has not been cured, what Tenant intends to do in order to
effect the cure, and when it will do so, (e) that Tenant has accepted and
occupied the Premises, (f) that Tenant has no claim or offset against Landlord
or, if it does, stating the circumstances which gave rise to the claim or
offset, (g) that Tenant is not aware of any prior assignment of this Lease by
Landlord, or if it is, stating the date of the assignment and assignee (if known
to Tenant), and (h) such other matters as may be reasonably requested by
Landlord. Any such certificate may be relied upon by any prospective purchaser
of the Premises and any prospective mortgagee or beneficiary under any deed of
trust or mortgage encumbering the Premises.  If Landlord submits a completed
certificate to Tenant, and if Tenant fails to object to its contents within ten
(10) days after its receipt of the completed certificate, the matters stated in
the certificate will conclusively be deemed to be correct. Furthermore, Tenant
irrevocably appoints Landlord as Tenant's attorney-in-fact  to execute and
deliver on Tenant's behalf any completed certificate to which Tenant does not
object within ten (10) business days after its receipt

     29.   NOTICES.
           -------

          (a) If to Landlord. All notices required to be given to Landlord
              --------------
     hereunder shall be sent by certified mail to, and all rent payments shall
     be made to:
<PAGE>

     To Landlord:

          Triangle Service Center Inc.
          P.O.Box 12255
          2 Hanes Drive
          Research Triangle Park, NC 27709
          Tel. (919)549-8181
          Fax. (919) 549-8246
          Attn. James O. Roberson, Pres.

     With Copy To:

          William P. Few
          Post Office Box 20288
          4200 Six Forks Road
          Raleigh, NC 27619-20288
          Tel. (919) 782-1175
          Fax. (919) 782-2217

     or to such other addresses as Landlord may direct from time to time by
written notice forwarded to Tenant by certified mail.

          (b) If to Tenant. All notices required to be given to Tenant may be
              ------------
     given in person or if not so given shall be sent by certified mail to
     Tenant at:

          Paradigm Genetics, Inc.
          Building No. 6
          104 TW Alexander Drive
          Research Triangle Park, North Carolina, 27709
          Telephone: (919) 544-5578
          Fax: (919) 544-8094
          Atten: John A. Ryals, Pres.

     With a copy to:

          Christopher B. Capel
          Smith, Anderson, Blount, Dorset, Mitchell & Jernigan
          2500 First Union Capitol Center, 27601
          PO. Box 2611
          Raleigh, North Carolina 27602
          Telephone:  (919) 821-6759
          Fax:  (919) 821-6800

     or to such other address as Tenant may direct from time to time by written
     notice forward to Landlord by certified mail.
<PAGE>

     30.  NATURE AND EXTENT OF AGREEMENT. This Lease contains the complete
          ------------------------------
agreement of the parties regarding the terms and conditions of the Lease of the
Premises, and there are no oral or written conditions, terms, understandings or
other agreements pertaining thereto which have not been incorporated herein.
This instrument creates only the relationship of lessor and lessee between the
parties hereto as to the Premises, and nothing herein shall in any way be
construed to impose upon either party hereto any obligations or restrictions not
herein expressly set forth. The laws of the State of North Carolina shall govern
the validity, interpretation performance and enforcement of this Lease.

     31.  BENEFIT. This Lease and all of the covenants and provisions thereof
          -------
shall inure to the benefit of and be binding upon the heirs, legal
representatives, successors and assigns of the parties hereto, and each
provision hereof shall be deemed both a covenant and condition and shall run
with the land.

                 BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK
<PAGE>

     IN WITNESS WHEREOF, this Lease has been executed as of the day and year
first above written.

                                      LANDLORD:

                                      TRIANGLE SERVICE CENTER, INC a
                                      North Carolina Corporation

    ATTEST:
                                      By: /s/ James O. Roberson
    ---------------                       -------------------------------
           Secretary                      James O. Roberson, President
    ------

                                      TENANT:
                                      PARADIGM GENETICS, INC.,

    ATTEST:
                                      By: /s/ Scott Uknes
    ---------------                       -------------------------------
           Secretary                      Scott J. Uknes, Vice President
    ------
<PAGE>

                                   EXHIBIT A

                            DESCRIPTION OF PREMISES

     Building Number 6 containing approximately nine thousand eighty-eight
(9,088.75) rentable square feet but excluding area B containing approximately
one thousand eight hundred sixty-four and 43/100 (1864.43) square feet for a net
rentable area of approximately seven thousand two hundred twenty-four and 32/100
(7,224.32) square feet being more particularly shown on the building sketch
attached to Exhibit A and incorporated herein (the "Premises'), located in the
Research Triangle Park, Durham County, North Carolina, the project being known
as  Park Research Center, more particularly shown on Exhibit B attached hereto
and incorporated herein ("Project").
<PAGE>

                                   EXHIBIT B
                                   SITE PLAN
<PAGE>

                                  EXHIBIT B1
                             RESTRICTIVE COVENANTS
<PAGE>

                                   EXHIBIT C
                           PLANS AND SPECIFICATIONS
<PAGE>

                                   EXHIBIT D
                                ADA COMPLIANCE

     1.   Notwithstanding anything contained in the Lease to the contrary,
          Landlord warrants and represents that the common areas of the Building
          are in compliance with the requirements of Title III of the Americans
          With Disabilities Act or 1990 (the "ADA") or shall be brought into
          compliance at the expense of Landlord if required by law or
          regulation. Landlord further represents and warrants that any
          alternation, modifications, upfit or construction performed by
          Landlord shall be performed in compliance with the ADA.

     2.   Tenants represents and covenants that it shall conduct its occupancy
          and use of the Premises in accordance with the ADA (including, but not
          limited to, modifying its policies, practices and procedures, and
          providing auxiliary aids and services to disabled persons).

     3.   If the Lease provides that the Tenant is to complete certain
          alternatives and improvements to the Premises in conjunction with the
          Tenant taking occupancy of the Premises. Tenant agrees that all such
          work shall comply with the ADA and, upon request of Landlord, Tenant
          shall provide Landlord with evidence reasonably satisfactory to
          Landlord that such work was performed in compliance with the ADA.
          Furthermore, Tenant covenants and agrees that any and all future
          alterations improvements made by Tenant to the Premises shall comply
          with the ADA.
<PAGE>

                                   EXHIBIT E
                                 OPTION RIDER

     THIS RIDER constitutes a part of the Lease to which it attached.  In the
event of a conflict between this Rider and the provisions of the Lease, the
Rider will govern and control.

     1.   Option to Extend
          ----------------

          (a) Option Tenant shall have the option to extend this Lease for two
(2) consecutive periods of six (6) months each (the "First Extension Term" and
"Second Extension Term" respectively) beginning immediately after the Term, or
in the case of the second option to extend, the First Extension Term, upon the
same terms conditions of the Lease, except that:

              (i)   the Term shall be modified as stated above;

              (ii)  the Base Rent and Additional Rent shall be calculated as
          follows:

              The monthly rent shall be the then current rental plus CPI
          adjustment as agreed by the parties.

              (iii) Landlord shall have no obligation to further improve the
          Premises.

              (b) Conditions. To exercise the First or Second Option to Extend
                  ----------
          Tenant must

                  (1) not be in default at the time it exercises the Option to
              Extend; and

                  (2) give written notice to Landlord that Tenant is exercising
              its Option to Extend at least sixty (60) days but not more than
              ninety (90) days before the Term or in the case of the Second
              Option to Extend, First Extension Term ends.

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