Document:

Exhibit 10.5

 

SHORT TERM OFFICE LEASE

 

THIS LEASE (the
"Lease"), is made as of this the 15th day of June, 2011 (the “Effective Date”), by and between HIGHWOODS
REALTY LIMITED PARTNERSHIP, a North Carolina limited partnership, hereinafter “Landlord” and NEPHROGENEX INCORPORATED,
a Delaware corporation [NEED TO BE REGISTERED TO DO BUSINESS IN NORTH CAORLINA PRIOR TO LEASE EXECUTION], hereinafter “Tenant”:

 

W I T N E S S E T H :

 

Upon the terms and conditions
hereinafter set forth, Landlord leases to Tenant and Tenant leases from Landlord property referred to as the Premises, all as follows:

 

1.           PREMISES;
COMMON AREAS. The property hereby leased to Tenant is that area shown on Exhibit A attached hereto, which consists of approximately
3,073 rentable square feet, known as Suite 290 (the “Premises”), located in the 4401 Research Commons Building (the
“Building”) at 79 T.W. Alexander Drive, Research Triangle Park, North Carolina 27709. During the Term, Tenant also
shall have non-exclusive access to the common areas of the Building. The common areas generally include space that is not included
in portions of the Building set aside for leasing to tenants or reserved for Landlord’s exclusive use, including entrances,
hallways, lobbies, elevators, restrooms, walkways and plazas (collectively referred to as the “Common Areas”). Landlord
has the exclusive right to: (a) designate the Common Areas, (b) change the designation of any Common Area and otherwise modify
the Common Areas, and (c) permit special use of the Common Areas, including temporary exclusive use for special occasions. Tenant
shall not interfere with the rights of others to use the Common Areas. All use of the Common Areas shall be subject to any reasonable
rules and regulations promulgated by Landlord.

 

2.           TERM.
This Lease Term (the "Term") shall commence on June 15, 2011 ("Commencement Date"), and shall expire (unless
sooner terminated or extended as herein provided) at 11:59 pm on December 31, 2011 ("Expiration Date"). Tenant shall
have the option (the “Extension Option”), provided there is no default under the Lease, to extend the term for an additional
six (6) months through June 30, 2012 provided Tenant provides Landlord with written notice of its election to exercise the Extension
Option on or before September 30, 2011. In the event Tenant timely exercises the Extension Option as provided herein, the period
commencing January 1, 2012 and ending June 30, 2012 shall be referred to as the “First Renewal Term”.

 

3.           RENT.

 

a.           Tenant
agrees to pay Rent to Landlord at such address as Landlord may designate, without notice, demand, offset or deduction, in advance
on or before the first day of each month of the Term. Tenant's obligation to pay Rent under this Lease is completely separate and
independent from any of Landlord's obligations under this Lease. Rental payments not received within five (5) days of the date
due shall be subject to a late charge of five percent (5%). Additionally, if Landlord presents Tenant's check to any bank and Tenant
has insufficient funds to pay for such check, then Landlord shall be entitled to the maximum lawful bad check fee or five percent
(5%) of the amount of such check, whichever amount is less.

 

b.           The
minimum base rent for the Term shall be the sum of $24,583.98 (the "Base Rent"), payable in monthly installments
of $4,097.33; provided, however, that Base Rent shall be fully abated for the period commencing June 15, 2011 and ending June 30,
2011. In the event Tenant timely exercises the Extension Option as provided in Section 2 above, the minimum base rent for the First
Renewal Term shall be the sum of $24,583.98, payable in monthly installments of $4,097.33.

 

c.           In
addition to Base Rent, Tenant shall pay as rent all sums and charges due and payable by Tenant under this Lease (“Additional
Rent”). Together, Base Rent and Additional Rent shall be referred to as “Rent”.

 

d.           Tenant
shall send Rent payments to the following address:

 

 HIGHWOODS
REALTY LIMITED PARTNERSHIP

 P.O. Box 409412

 Atlanta, Georgia 30384

 Tax ID #: 56-1869557

 

4.          USE.
The Premises may be used only for general office purposes in connection

 

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with Tenant’s business and may be occupied by no
more than four (4) persons per one thousand (1,000) rentable square feet (the “Permitted
Use”), but for no other use without Landlord's prior written consent. Tenant shall never make any use of the Premises which
is in violation of any governmental laws, rules or regulations, whether now existing or hereafter enacted or which is in violation
of the general rules and regulations for tenants (a copy of the present rules are attached as Exhibit B) as may be developed
or modified from time to time by Landlord, provided such rules are uniformly applicable to all tenants in the Building (the "Rules
and Regulations"), nor may Tenant make any use of the Premises not permitted, or otherwise prohibited, by any restrictive
covenants which apply to the Premises. Tenant may not make any use that is or may be a nuisance or trespass, which increases any
insurance premiums, or makes such insurance unavailable to Landlord on the Building. In the event of an increase in any of Landlord's
insurance premiums which results from Tenant's use or occupancy of the Premises, Landlord may treat such use as a default hereunder
unless Tenant, promptly upon receipt of Landlord’s demand, either discontinues such use or pays the amount of the premium
increase. Tenant shall not install any equipment in the Premises that places unusual demands on the electrical, heating or air
conditioning systems (“High Demand Equipment”) without Landlord’s prior written consent. No such consent will
be given if Landlord determines, in its opinion, that such equipment may not be safely used in the Premises or that electrical
service is not adequate to support the equipment. Landlord’s consent may be conditioned, without limitation, upon separate
metering of the High Demand Equipment and Tenant’s payment of all engineering, equipment, installation, maintenance, removal
and restoration costs and utility charges associated with the High Demand Equipment and the separate meter. If High Demand Equipment
used in the Premises by Tenant affects the temperature otherwise maintained by the heating and air conditioning system, Landlord
shall have the right to install supplemental air conditioning units in the Premises with the reasonable costs of engineering, installation,
operation and maintenance of the units to be paid by Tenant. All costs and expenses relating to High Demand Equipment shall be
Additional Rent, payable by Tenant upon receipt of Landlord’s invoice.

 

5.           SERVICES
BY LANDLORD.

 

a.           Base
Services. Provided that Tenant is not then in default, Landlord shall cause to be furnished to the Building, or as applicable,
the Premises, in common with other tenants, the following services:

 

		i.	Water (if available from city mains) for drinking, lavatory and toilet purposes.

 

		ii.	Electricity for the building standard fluorescent lighting and for
the operation of general office machines, such as electric typewriters, desk top computers, word processing equipment, dictating
equipment, adding machines and calculators, and general service non-production type office copy machines; provided that Landlord
shall have no obligation to provide more than four (4) watts per usable square foot of electricity for convenience outlets
serving the Premises.

 

		iii.	Operatorless elevator service [if the Building is served by an elevator(s)].

 

		iv.	Building standard fluorescent lighting composed of 2' x 4' fixtures;
Tenant shall service, replace and maintain at its own expense any incandescent fixtures, table lamps, or lighting other than the
building standard fluorescent light, and any dimmers or lighting controls other than controls for the building standard fluorescent
lighting.

 

		v.	Heating and air conditioning for the reasonably comfortable use and
occupancy of the Premises, during business hours of 8:00 A.M. to 6:00 P.M. Monday through Friday (excluding National and
State holidays); provided that, heating and cooling conforming to any governmental regulation prescribing limitations thereon shall
be deemed to comply with this service. Notwithstanding the foregoing, Tenant shall be solely responsible for all costs associated
with the engineering, installation, operation, maintenance and repair of any supplemental HVAC unit in the Premises if required
pursuant to Section 4 above or any supplemental HVAC unit that is installed and/or operated in the Premises at Tenant’s request.

 

		vi.	After hours, weekend and holiday heating and air conditioning at
a charge of $40.00 per hour, per zone, with a minimum of two (2) hours per occurrence.

 

		vii.	Janitorial services five (5) days a week (excluding National and
State holidays) after normal working hours.

 

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		viii.	A reasonable pro-rata share of the unreserved free parking spaces
of the Building, in common with the other tenants, for use by Tenant's employees and visitors, not to exceed a maximum
of four (4) spaces per 1,000 rentable square feet of the Premises.

 

		ix.	General property management for the Building.

 

b.           Landlord’s
Maintenance. Landlord shall pay for and make all repairs and replacements to the Building (including Building fixtures and
equipment), Common Areas and Building Standard Improvements in the Premises, except for repairs and replacements that Tenant must
make under Section 6. Landlord’s maintenance shall include the roof, foundation, exterior walls, interior structural walls,
all structural components, and all Building systems, such as mechanical, electrical, HVAC, and plumbing. Repairs or replacements
shall be made within a reasonable time (depending on the nature of the repair or replacement needed) after receiving notice from
Tenant or Landlord having actual knowledge of the need for a repair or replacement. Landlord shall maintain the Building, common
areas and Building Standard Improvements on the Premises, except for repairs and replacements the Tenant must make under Section
6, to the same standard as other Class A office buildings in the Richmond, Virginia metropolitan area. For purposes of this Lease,
the term “Building Standard Improvements” shall mean the standards for normal construction of general office space
for tenants within the Building as specified by Landlord, including design and construction standards, electrical load factors,
materials, fixtures and finishes.

 

c.           No
Abatement. There shall be no abatement or reduction of Rent by reason of any of the foregoing services not being continuously
provided to Tenant. Landlord shall have the right to shut down the building systems (including electricity and HVAC systems) for
scheduled maintenance and safety inspections, and in cases of emergency.

 

d.           Tenant’s
Obligation to Report Defects. Tenant shall report to Landlord immediately any defective condition in or about the Premises
that is reasonably apparent to Tenant. Landlord shall not be liable for repair of any such condition unless so reported by Tenant
to Landlord.

 

e.           Limitation
on Landlord’s Liability. Landlord shall not be liable to Tenant for any damage caused to Tenant and its property due
to the Building or any part or appurtenance thereof being improperly constructed or being or becoming out of repair, or arising
from the leaking of gas, water, sewer or steam pipes, or from problems with electrical service, except to the extent such damage
is attributable to Landlord’s gross negligence or willful misconduct, which exception is subject to the insurance provisions,
waivers and releases set forth herein. Without limiting the foregoing, Landlord shall not be responsible for providing telephone
or other communication services to the Premises. Landlord shall only be responsible to provide conduit and cabling from the Premises
to the nearest pedestal of such service providers. Except as otherwise provided herein, Landlord shall not be required to provide
Tenant access to any satellite dish.

 

6.           ACCEPTANCE
AND MAINTENANCE OF PREMISES. Tenant’s occupancy of the Premises is Tenant’s representation to Landlord that Tenant:
(a) has examined and inspected the Premises, (b) finds the Premises to be as represented by Landlord and satisfactory for Tenant's
intended use, and (c) accepts the Premises "as is". Landlord makes no representation or warranty as to the condition
of the Premises. Tenant may not make any alterations to the Premises without Landlord’s prior written permission (and then
only on the terms of such permission), shall maintain the Premises in good repair and conditions, and on expiration or termination
of this Lease, shall return the same to Landlord in as good condition as on the commencement of the Term, reasonable wear and tear
and damage by insured casualty only excepted. In connection with the foregoing, Tenant, at its expense, shall remove all
of its furniture, equipment, trade fixtures and other personal property as well as any improvements or alterations to the Premises
made by or on behalf of Tenant (other than Building Standard Improvements), including, without limitation, all wiring and cabling
installed by or on behalf of Tenant, shall repair any damage caused by the removal, ordinary wear and tear excepted. Any Tenant
property remaining in the Premises or Building at the end of the Term shall be deemed abandoned, and Landlord, at Tenant’s
expense, may dispose of the same in any manner it elects without any liability to Tenant therefor.

 

7.           DAMAGE
TO PREMISES. If the Premises are damaged or destroyed by fire or other casualty not resulting from the wrongful or negligent
act of Tenant, the damage is such that Tenant is unable to reasonably use the Premises for its Permitted Use, and Landlord, with
reasonable due diligence, cannot repair the Premises within sixty days of the date of damage, then either party may terminate this
Lease by written notice to the other delivered within fifteen days after the date of the damage. If the Lease is terminated, Tenant
shall vacate and deliver the Premises to Landlord in accordance with Section 6 above within thirty days following the date of the
termination notice. If not so terminated, Landlord shall proceed diligently to repair the damage, and Rent shall be abated for
the period of time and to the extent that Tenant cannot use the Premises; provided, however, Landlord’s obligation to repair
the Premise shall be limited to the amount of available insurance proceeds (which, for purposes of this provision, shall include
any deductible or self-insurance retention amount for which Landlord is responsible), and Landlord shall

 

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have no obligation to
repair and restore Tenant’s trade fixtures, decorations, signs, personal property, or any
improvements to the Premises installed by or on behalf of Tenant at Tenant’s expense (and not paid for out of an improvement
allowance given by Landlord to Tenant) (collectively “Tenant’s Property”). Additionally, Landlord shall not be
liable to Tenant for any damage to Tenant’s property, including, but not limited to, that arising from or caused by casualty
loss, fire, theft, acts of other tenants, water or weather, and Tenant shall carry at its expense whatever insurance it elects
to protect Tenant’s property from all loss of any nature whatsoever.

 

8.           SECURITY
DEPOSIT. Simultaneous with its execution of this Lease, Tenant shall deposit with Landlord the sum of $4,097.33 as a
deposit to secure the performance by Tenant of all its obligations hereunder, which Tenant may not apply toward any month’s
rent (the “Deposit”). Landlord shall not be required to segregate the Deposit in a separate account, may on any Tenant
default apply all or so much thereof as is needed to remedy or cure said default, and, if prior to the end of the Term, may require
that Tenant immediately replenish the amount so used. If Tenant complies with all of its obligations hereunder and leaves the Premises
in the condition required at the expiration of the Term, then so much of the Deposit not used by Landlord as permitted by the terms
hereof shall be returned to Tenant within thirty (30) days after such expiration date.

 

9.           INSURANCE
REQUIREMENTS.

 

a.           Tenant’s
Liability Insurance. Throughout the Term, Tenant, at its sole cost and expense, shall keep or cause to be kept for the mutual
benefit of Landlord, Landlord's Property Manager, and Tenant, Commercial General Liability Insurance (1986 ISO Form or its equivalent)
with a combined single limit, each Occurrence and General Aggregate-per location, of at least $1,000,000.00, which policy shall
insure against liability of Tenant, arising out of and in connection with Tenant's use of the Premises, and which shall insure
the indemnity provisions contained in this Lease. Landlord shall be named as an Additional Insured on any and all liability insurance
policies required under this Lease.

 

b.           Tenant’s
Property Insurance. Tenant, at its own cost and expense, shall also carry the equivalent of ISO Special Form Property Insurance
on Tenant’s Property for full replacement value and with coinsurance waived. For purposes of this provision, “Tenant’s
Property” shall mean Tenant’s personal property and fixtures, and any improvements to the Premises that were paid for
by Tenant (and were not provided to the Premises pursuant to a tenant improvement allowance provided to Tenant by Landlord or at
Landlord’s cost).

 

c.           Certificates
of Insurance. Prior to taking possession of the Premises, and annually thereafter, Tenant shall deliver to Landlord certificates
or other evidence of insurance satisfactory to Landlord. If Tenant fails to provide Landlord with certificates or other evidence
of insurance coverage, Landlord may obtain the required coverage on Tenant’s behalf, in which event the cost of such coverage
shall be Additional Rent due and payable by Tenant within 10 days after receipt of Landlord’s written demand.

 

d.           Insurance
Policy Requirements. Tenant’s insurance policies required by this Lease shall: (i) be issued by insurance companies licensed
to do business in the state in which the Premises are located with a general policyholder's ratings of at least A- and a financial
rating of at least VI in the most current Best's Insurance Reports available on the Commencement Date, or if the Best's ratings
are changed or discontinued, the parties shall agree to a comparable method of rating insurance companies; (ii) endorsed to be
primary to all insurance available to Landlord, with Landlord’s being excess, secondary or noncontributory; (iii) contain
only standard and/or usual exclusions or restrictions; (iv) have a deductible or self-insured retention of no more than $50,000.00
unless approved in writing by Landlord; and (v) provide that the policies cannot be canceled, non-renewed, or coverage reduced
except after at least 30 days' prior notice to Landlord. All deductibles and/or retentions shall be paid by, assumed by, for the
account of, and at Tenant’s sole risk. Tenant may provide the insurance required by virtue of the terms of this Lease by
means of a policy or policies of blanket insurance so long as: (a) the amount of the total insurance allocated to the Premises
under the terms of the blanket policy or policies furnishes protection equivalent to that of separate policies in the amounts required
by the terms of this Lease; and (b) the blanket policy or policies comply in all other respects with the requirements of this Lease.

 

e.           Right
to Increase Requirements. Should this Lease be extended beyond the initial Term, Landlord shall have the right, upon prior
notice to Tenant, to require Tenant to increase the limit and coverage amount of any insurance Tenant is required to maintain under
this Lease to an amount that Landlord or its mortgagee, in the reasonable judgment of either, may deem sufficient, provided that
the increased limits are reasonable and consistent with those required by other owners of similar office buildings in the same
geographic region.

 

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f.            Landlord’s
Property Insurance. Landlord shall keep the Building, including the improvements (but excluding Tenant’s Property), insured
against damage and destruction by perils insured by the equivalent of ISO Special Form Property Insurance for full replacement
value.

g.           Mutual
Waiver of Subrogation. Anything in this Lease to the contrary notwithstanding, Landlord hereby releases and waives unto Tenant
(including all partners, stockholders, officers, directors, employees and agents thereof), its successors and assigns, and Tenant
hereby releases and waives unto Landlord (including all partners, stockholders, officers, directors, employees and agents thereof),
its successors and assigns, all rights to claim damages for any injury, loss, cost or damage to persons or to the Premises or any
other casualty, as long as the amount of such injury, loss, cost or damage has been paid either to Landlord, Tenant, or any other
person, firm or corporation, under the terms of any Property, General Liability, or other policy of insurance, to the extent such
releases or waivers are permitted under applicable law. As respects all policies of insurance carried or maintained pursuant to
this Lease and to the extent permitted under such policies, Tenant and Landlord each waive the insurance carriers’ rights
of subrogation. For purposes of this provision, insurance proceeds paid to either party shall be deemed to include any deductible
or self-insurance retention amount for which that party is responsible. A party’s failure to obtain or maintain any insurance
coverage required to be carried pursuant to the terms of this Lease shall not negate the waivers and releases set forth herein
as long as the insurance that the party failed to obtain or maintain would have covered the loss or damage for which the party
is waiving its claims. Nothing in this provision shall be deemed a waiver or release by Landlord of its right to claim, demand
and collect insurance proceeds directly from Tenant’s insurer pursuant to Landlord’s status as an additional insured
under any insurance policy Tenant is required to carry pursuant to the terms of this Lease.

 

10.         INDEMNITY.
Subject to the insurance requirements, releases and mutual waivers of subrogation set forth in this Lease, Tenant agrees as
follows:

 

a.           Indemnity.
Except to the extent caused by Landlord’s negligence or willful misconduct, Tenant shall indemnify and hold Landlord
harmless from and against any and all claims, damages, losses, liabilities, lawsuits, costs and expenses (including attorneys'
fees at all tribunal levels) arising out of or related to (i) any activity, work, or other thing done, permitted or suffered by
Tenant in or about the Premises or the Building, (ii) any breach or default by Tenant in the performance of any of its obligations
under this Lease, or (iii) any act or neglect of Tenant, or any officer, agent, employee, contractor, servant, invitee or guest
of Tenant.

 

b.           Defense
Obligation. If any such action is brought against Landlord, then Tenant, upon notice from Landlord, shall defend the same through
counsel selected by Landlord’s insurer, or other counsel acceptable to Landlord. The provisions of this Section shall survive
the termination of this Lease.

 

11.         DEFAULT.
If Tenant (i) fails to pay rent as and when due hereunder, or (ii) breaches any other obligation herein contained, then in addition
to such other lawful rights or remedies that Landlord may have, Landlord may declare the rent for the balance of the Term due and
payable, seize and hold Tenant’s property located on the Premises, deny Tenant access to the Premises by changing locks or
otherwise, and with or without terminating this Lease, repossess the Premises and relet the same upon such terms and conditions
as Landlord deems reasonable, in which event Tenant shall be liable for all costs of reletting (including preparing the Premises
for a new tenant and leasing commissions incurred therewith). Tenant shall be liable for Landlord’s reasonable attorneys’
fees (at all tribunal levels) in enforcing Landlord’s rights or pursuing Landlord’s remedies as provided herein. Failure
by Landlord to enforce its rights and remedies shall not be deemed a waiver of Landlord’s rights to do so at some future
time, and acceptance by Landlord of Rent shall not constitute a waiver of any then existing default, known or unknown.

 

12.         NOTICES.
Notices to the other party shall be deemed sufficient if in writing and delivered (against a written receipt of delivery) personally,
or if sent by certified mail, postage prepaid, addressed as follows:

 

	 	LEGAL NOTICE	 
	 	ADDRESS FOR	 
	 	LANDLORD:	HIGHWOODS REALTY LIMITED PARTNERSHIP
	 	 	c/o Highwoods Properties, Inc.
	 	 	3100 Smoketree Court, Suite 600
	 	 	Raleigh, North Carolina 27604
	 	 	Attn: Manager, Lease Administration
	 	 	Facsimile #: 919/790-8749
	 	 	 
	 	TENANT:	NEPHROGENEX INCORPORATED
	 	 	4401 Research Commons Building, Suite 290
	 	 	79 T.W. Alexander Drive

 

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	 	 	Research Triangle Park, North Carolina 27709
	 	 	Attn:  J. Wesley Fox

	 	 	Facsimile #: 609/275-5610

 

Notices shall be deemed
delivered as of three (3) business days after posting. Addresses for notices may be changed in the same manner as notices, but
shall not be effective until ten (10) business days after given. Counsel for either party may be given notice on such party’s
behalf.

 

13.         ENVIRONMENTAL
COMPLIANCE.

 

a.           Tenant's
Responsibility. Tenant shall not (either with or without negligence) cause or permit the escape, disposal or release of any
biologically active or other hazardous substances or materials on the Property. For purposes of this Article 13, the term “Property”
shall include the Premises, Building, all Common Areas, the real estate upon which the Building and Common Areas are located; all
personal property (including that owned by Tenant); and the soil, ground water, and surface water of the real estate upon which
the Building is located. Tenant shall not allow the storage or use of such substances or materials in any manner not sanctioned
by law or in compliance with the highest standards prevailing in the industry for the storage and use of such substances or materials,
nor allow to be brought onto the Property any such materials or substances except to use in the ordinary course of Tenant's business,
and then only after notice is given to Landlord of the identity of such substances or materials. No such notice shall be required,
however, for commercially reasonable amounts of ordinary office supplies and janitorial supplies.

 

b.           Liability
of the Parties. Landlord represents and warrants that, to the best of Landlord’s knowledge, there are no hazardous materials
on the Property as of the Commencement Date in violation of any laws. Landlord shall indemnify and hold Tenant harmless from any
liability resulting from Landlord’s violation of this representation and warranty, unless the hazardous materials are present
on the Property due to the act or omission of Tenant or its agents, employees, officers, licensees or contractors, in which event
Tenant shall be obligated to indemnify Landlord as hereafter provided. Tenant shall hold Landlord free, harmless, and indemnified
from any penalty, fine, claim, demand, liability, cost, or charge whatsoever which Landlord shall incur, or which Landlord would
otherwise incur, by reason of Tenant's failure to comply with this Article 13 including, but not limited to: (i) the cost of full
remediation of any contamination to bring the Property into the same condition as prior to the Commencement Date and into full
compliance with all Environmental Laws; (ii) the reasonable cost of all appropriate tests and examinations of the Premises to confirm
that the Premises and any other contaminated areas have been remediated and brought into compliance with law; and (iii) the reasonable
fees and expenses of Landlord's attorneys, engineers, and consultants incurred by Landlord in enforcing and confirming compliance
with this Article 13. Notwithstanding the foregoing, Tenant’s obligations under this Article 13 shall not apply to any condition
or matter constituting a violation of any law that was not caused, in whole or in part, by Tenant or Tenant's agents, employees,
officers, partners, contractors, servants or invitees. The covenants contained in this Article 13 shall survive the expiration
or termination of this Lease, and shall continue for so long as either party and its successors and assigns may be subject to any
expense, liability, charge, penalty, or obligation against which the other party has agreed to indemnify it under this Article
13.

 

c.           Inspections
by Landlord. Landlord and its engineers, technicians, and consultants (collectively the "Auditors"), from time to
time as Landlord deems appropriate, may conduct periodic tests and examinations ("Audits") of the Premises to confirm
and monitor Tenant's compliance with this Article 13. Such Audits shall be conducted in such a manner as to minimize the interference
with Tenant's Permitted Use; however, in all cases, the Audits shall be of such nature and scope as shall be reasonably required
by then existing technology to confirm Tenant's compliance with this Article 13. Tenant shall fully cooperate with Landlord and
its Auditors in the conduct of such Audits. The cost of such Audits shall be paid by Landlord unless an Audit shall disclose a
material failure of Tenant to comply with this Article 13, in which case, the reasonable cost of such Audit shall be paid for by
Tenant within 10 days after receipt of Landlord’s written demand.

 

14.         BROKER'S
COMMISSIONS.

 

a.           Broker.
Each party represents and warrants to the other that it has not dealt with any real estate broker, finder or other person with
respect to this Lease in any manner other than Fathom Realty (Stacy Zotter), who represented Tenant in this transaction.

 

b.           Indemnity.
Each party shall indemnify and hold the other party harmless from any and all damages resulting from claims that may be asserted
against the other party by any broker, finder or other person (including, without limitation, any substitute or replacement broker
claiming to have been engaged by indemnifying party in the future), claiming to have dealt with the indemnifying party in connection
with this Lease or any amendment or extension hereto, or which may result in Tenant leasing other or enlarged

 

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 space from Landlord,
other than the broker referenced in Section 14(a) herein. The provisions of this Section shall survive the termination of this
Lease.

 

15.         HOLDING
OVER. If Tenant holds over after the Expiration Date or other termination of this Lease, such holding over shall not be a renewal
of this Lease but shall create a tenancy-at-sufferance. Tenant shall continue to be bound by all of the terms and conditions of
this Lease, except that, during such tenancy-at-sufferance, Tenant shall pay to Landlord: (i) Base Rent at the rate equal to one
hundred fifty percent (150%) of that provided for as of the expiration or termination date; and (ii) any and all Operating Expenses
and other forms of Additional Rent payable under this Lease. The increased Base Rent during such holding over is intended to compensate
Landlord partially for losses, damages and expenses, including frustrating and delaying Landlord's ability to secure a replacement
tenant.

 

16.         RIGHT
TO RELOCATE.

 

a.           Substitute
Premises. Prior to the Commencement Date or at any time during the Term or any extension of this Lease, Landlord, at its option,
may substitute for the Premises other space (hereafter called "Substitute Premises") owned by Landlord or one of its
affiliates in the same geographic vicinity. Insofar as reasonably possible, the Substitute Premises shall be of comparable quality
and shall have a comparable square foot area and a configuration substantially similar to the Premises. Landlord shall give Tenant
at least 60 days notice of its intention to relocate Tenant to the Substitute Premises. This notice will be accompanied by a floor
plan of the Substitute Premises. After such notice, Tenant shall have 10 days within which to agree with Landlord on the proposed
Substitute Premises and unless such agreement is reached within such period of time, Landlord may terminate this Lease at the end
of the 60-day period of time following the notice; provided, however, should Landlord fail to terminate the Lease within 10 days
following the expiration of the 60-day period, then: (i) Landlord shall be deemed to have forfeited its right to terminate the
Lease pursuant to this paragraph; (ii) Tenant shall have no obligation to relocate to the Substitute Premises; and (c) the Lease
will continue in full force and effect with respect to the Premises.

 

b.           Upfit
of Substitute Premises. Landlord agrees to construct or alter, at its expense, the Substitute Premises as expeditiously as
possible so that the Substitute Premises are in substantially the same condition that the Premises were in immediately prior to
the relocation. Landlord shall have the right to reuse the fixtures, improvements and alterations used in the Premises. Tenant
agrees to occupy the Substitute Premises as soon as Landlord's work is substantially completed.

 

c.           Relocation
Costs. If relocation occurs after the Commencement Date, then Landlord shall pay Tenant's reasonable third-party costs of moving
Tenant's furnishings, telephone and computer wiring, and other property to the Substitute Premises, and reasonable printing costs
associated with the change of address.

 

d.           Lease
Terms. Except as provided herein, Tenant agrees that all of the obligations of this Lease, including the payment of Rent (to
be determined on a per rentable square foot basis and applied to the Substitute Premises), will continue despite Tenant's relocation
to the Substitute Premises. Upon substantial completion of the Substitute Premises, this Lease will apply to the Substitute Premises
as if the Substitute Premises had been the space originally described in this Lease.

 

17.         PATRIOT
ACT COMPLIANCE. During the term, neither Tenant nor its respective constituents or affiliates shall (i) be an “enemy”
or an “ally of the enemy” within the meaning of Section 2 of the Trading with the Enemy Act of the United States of
America (50 U.S.C. App. §§ 1 et seq.), as amended, (ii) violate the Trading with the Enemy Act, as amended, (iii) violate
any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended)
or any enabling legislation or executive order relating thereto or (iv) violate the USA PATRIOT Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)) (the “Patriot Act”). Tenant shall, promptly following a request from Landlord,
provide all documentation and other information that the Lender requests in order to comply with its ongoing obligations under
applicable "know your customer" and anti-money laundering rules and regulations, including the Patriot Act.

 

18.         ASSIGNMENT
AND SUBLEASE.

 

a.           Landlord
Consent. Except as provided in subsection (b) below, Tenant may not assign or encumber this Lease or its interest in the Premises
arising under this Lease, and may not sublet all or any part of the Premises without first obtaining the written consent of Landlord,
which consent shall not be withheld unreasonably. One consent shall not be the basis for any further consent. Landlord must be
given prior written notice of every assignment or subletting, and failure to do so shall be a default hereunder. No assignment
or sublease shall release Tenant of any of its obligations under this Lease.

 

    	7

    	 

    
 

b.           Permitted
Assignments/Subleases. Notwithstanding the foregoing, Tenant may assign this Lease or sublease part or all of the Premises
without Landlord's consent to: (i) any corporation, limited liability company, or partnership that controls,
is controlled by, or is under common control with, Tenant at the Commencement Date; or (ii) any corporation or limited liability
company resulting from the merger or consolidation with Tenant or to any entity that acquires all of Tenant's assets as a going
concern of the business that is being conducted on the Premises; provided, however, that the assignor remains liable under the
Lease and the assignee or sublessee is a bona fide entity and assumes the obligations of Tenant, is as creditworthy as the Tenant,
and continues the same Permitted Use as provided under Article 4.

 

c.           Limitation
on Assignments/Subleases. In no event shall this Lease be assignable by operation of any law, and Tenant's rights hereunder
may not become, and shall not be listed by Tenant as an asset under any bankruptcy, insolvency or reorganization proceedings. Acceptance
of Rent by Landlord after any non-permitted assignment or sublease shall not constitute approval thereof by Landlord. In addition
to the foregoing, any assignment for which Landlord’s consent is required shall not include the right to exercise any options
to renew the Term, expand the Premises or similar options, unless specifically provided for in the consent.

 

d.           Landlord’s
Right to Collect Sublease Rents upon Tenant Default. If the Premises (or any portion) is sublet and Tenant defaults under its
obligations to Landlord, then Landlord is authorized, at its option, to collect all sublease rents directly from the Sublessee.
Tenant hereby assigns the right to collect the sublease rents to Landlord in the event of Tenant default. The collection of sublease
rents by Landlord shall not relieve Tenant of its obligations under this Lease, nor shall it create a contractual relationship
between Sublessee and Landlord or give Sublessee any greater estate or right to the Premises than contained in its Sublease.

 

e.           Excess
Rents; Landlord’s Fees. If Tenant assigns this Lease or subleases all or part of the Premises at a rental rate that exceeds
the rentals paid to Landlord, then any such excess shall be paid over to Landlord by Tenant. Additionally, Tenant shall pay Landlord
an administration fee of $1,000.00 per assignment or sublease transaction for which Landlord’s consent is required.

 

19.         GENERAL
PROVISIONS. This Lease supersedes and replaces all prior negotiations, agreements or representations by either party hereto,
and may be changed only in writing duly signed by the party affected. Landlord may promulgate (and change from time to time) reasonable
regulations (a copy of the present rules are attached as Exhibit B) uniformly applicable to all tenants of the Building,
and Tenant after receipt of a copy thereof shall comply with the same. Landlord shall have the right at reasonable times to
enter the Premises to inspect the same or to show the same to prospective tenants or mortgagees. Landlord shall have the right
to enter the Premises at all times in the event of an emergency.

 

20.         SPECIAL
CONDITIONS. The following special conditions, if any, shall apply, and where in conflict with earlier provisions in this Lease
shall control: None.

 

21.         ADDENDA
AND EXHIBITS. If any addenda or exhibits are noted below, such addenda are incorporated herein and made a part of this Lease.

a.           Exhibit
A – Premises

b.           Exhibit
B – Rules and Regulations

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

[SIGNATURE BLOCKS ON NEXT PAGE]

 

    	8

    	 

    

 

IN WITNESS WHEREOF, Landlord
and Tenant have executed this lease in four originals, all as of the day and year first above written.

 

 

	TENANT:	 
	 	 
	NEPHROGENEX INCORPORATED	 
	a Delaware corporation	 
	 	 	 
	 	 	 
	By: 	/s/ J. Wesley Fox	 
	Name:	    J. Wesley Fox	 
	Title:	    President and CEO	 
	 	 	 
	Date:	    6-15-11	 

 

 

	LANDLORD:	 
	 	 
	HIGHWOODS REALTY LIMITED PARTNERSHIP	 
	a North Carolina limited partnership	 
	By: Highwoods Properties, Inc., its general partner	 
	a Maryland corporation	 
	 	 	 
	 	 	 
	By:	/s/ Thomas S. Hill III	 
	Name: 	    Thomas S. Hill III	 
	Title: 	Vice President and Division Manager	 
	 	 	 
	Date:	    6-17-11	 

 

    	11

    	 

    

 

EXHIBIT A

PREMISES

 

 

    	12

    	 

    

 

EXHIBIT B

RULES AND REGULATIONS

 

		1.	Access to Building. On Saturdays, Sundays, legal holidays and weekdays between the hours
of 6:00 P.M. and 8:00 A.M., access to the Building and/or to the halls, corridors, elevators or stairways in the Building may be
restricted and access shall be gained by use of a key or electronic card to the outside doors of the Buildings. Landlord may from
time to time establish security controls for the purpose of regulating access to the Building. Tenant shall be responsible for
providing access to the Premises for its agents, employees, invitees and guests at times access is restricted, and shall comply
with all such security regulations so established.

 

		2.	Protecting Premises. The last member of Tenant to leave the Premises shall close and securely
lock all doors or other means of entry to the Premises and shut off all lights and equipment in the Premises.

 

		3.	Building Directories. The directories for the Building in the form selected by Landlord
shall be used exclusively for the display of the name and location of tenants. Any additional names and/or name change requested
by Tenant to be displayed in the directories must be approved by Landlord and, if approved, will be provided at the sole expense
of Tenant.

 

		4.	Large Articles. Furniture, freight and other large or heavy articles may be brought into
the Building only at times and in the manner designated by Landlord and always at Tenant's sole responsibility. All damage done
to the Building, its furnishings, fixtures or equipment by moving or maintaining such furniture, freight or articles shall be repaired
at Tenant’s expense.

 

		5.	Signs. Tenant shall not paint, display, inscribe, maintain or affix any sign, placard, picture,
advertisement, name, notice, lettering or direction on any part of the outside or inside of the Building, or on any part of the
inside of the Premises which can be seen from the outside of the Premises, including windows and doors, without the written consent
of Landlord, and then only such name or names or matter and in such color, size, style, character and material as shall be first
approved by Landlord in writing. Landlord, without notice to Tenant, reserves the right to remove, at Tenant's expense, all matters
other than that provided for above.

 

		6.	Compliance with Laws. Tenant shall comply with all applicable laws, ordinances, governmental
orders or regulations and applicable orders or directions from any public office or body having jurisdiction, whether now existing
or hereinafter enacted with respect to the Premises and the use or occupancy thereof. Tenant shall not make or permit any use of
the Premises which directly or indirectly is forbidden by law, ordinance, governmental regulations or order or direction of applicable
public authority, which may be dangerous to persons or property or which may constitute a nuisance to other tenants.

 

		7.	Hazardous Materials. Tenant shall not use or permit to be brought into the Premises or the
Building any flammable oils or fluids, or any explosive or other articles deemed hazardous to persons or property, or do or permit
to be done any act or thing which will invalidate, or which, if brought in, would be in conflict with any insurance policy covering
the Building or its operation, or the Premises, or any part of either, and will not do or permit to be done anything in or upon
the Premises, or bring or keep anything therein, which shall not comply with all rules, orders, regulations or requirements of
any organization, bureau, department or body having jurisdiction with respect thereto (and Tenant shall at all times comply with
all such rules, orders, regulations or requirements), or which shall increase the rate of insurance on the Building, its appurtenances,
contents or operation.

 

		8.	Defacing Premises and Overloading. Tenant shall not place anything or allow anything to
be placed in the Premises near the glass of any door, partition, wall or window that may be unsightly from outside the Premises.
Tenant shall not place or permit to be placed any article of any kind on any window ledge or on the exterior walls; blinds, shades,
awnings or other forms of inside or outside window ventilators or similar devices shall not be placed in or about the outside windows
in the Premises except to the extent that the character, shape, color, material and make thereof is approved by Landlord. Tenant
shall not do any painting or decorating in the Premises or install any floor coverings in the Premises or make, paint, cut or drill
into, or in any way deface any part of the Premises or Building without in each instance obtaining the prior written consent of
Landlord. Tenant shall not overload any floor or part thereof in the Premises, or any facility in the Building or any public corridors
or elevators therein by bringing in or removing any large or heavy articles and Landlord may direct and control the location of
safes, files, and all other heavy articles and, if considered necessary by Landlord may require Tenant at its expense to supply
whatever supplementary supports necessary to properly distribute the weight.

 

 

		9.	Obstruction of Public Areas. Tenant shall not, whether temporarily, accidentally or otherwise,
allow anything to remain in, place or store anything in, or obstruct in any way, any sidewalk, court, hall,

 

 

    	13

    	 

    

 

			passageway,
entrance, or shipping area. Tenant shall lend its full cooperation to keep such areas free from all obstruction and in a clean
and sightly condition, and move all supplies, furniture and equipment as soon as received directly to the Premises, and shall
move all such items and waste (other than waste customarily removed by Building employees) that are at any time being taken from
the Premises directly to the areas designated for disposal. All courts, passageways, entrances, exits, elevators, escalators,
stairways, corridors, halls and roofs are not for the use of the general public and Landlord shall in all cases retain the right
to control and prevent access thereto by all persons whose presence, in the judgment of Landlord, shall be prejudicial to the
safety, character, reputation and interest of the Building and its tenants; provided, however, that nothing herein contained shall
be construed to prevent such access to persons with whom Tenant deals within the normal course of Tenant's business so long as
such persons are not engaged in illegal activities.

 

		10.	Additional Locks. Tenant shall not attach, or permit to be attached, additional locks or
similar devices to any door or window, change existing locks or the mechanism thereof, or make or permit to be made any keys for
any door other than those provided by Landlord. Upon termination of this Lease or of Tenant's possession, Tenant shall immediately
surrender all keys to the Premises.

 

		11.	Communications or Utility Connections. If Tenant desires signal, alarm or other utility
or similar service connections installed or changed, then Tenant shall not install or change the same without the approval of Landlord,
and then only under direction of Landlord and at Tenant's expense. Tenant shall not install in the Premises any equipment which
requires a greater than normal amount of electrical current for the permitted use without the advance written consent of Landlord.
Tenant shall ascertain from Landlord the maximum amount of load or demand for or use of electrical current which can safely be
permitted in the Premises, taking into account the capacity of the electric wiring in the Building and the Premises and the needs
of other tenants in the Building, and Tenant shall not in any event connect a greater load than that which is safe.

 

		12.	Office of the Building. Service requirements of Tenant will be attended to only upon application
at the office of Highwoods Properties, Inc. Employees of Landlord shall not perform, and Tenant shall not engage them to do any
work outside of their duties unless specifically authorized by Landlord.

 

		13.	Restrooms. The restrooms, toilets, urinals, vanities and the other apparatus shall not be
used for any purpose other than that for which they were constructed, and no foreign substance of any kind whatsoever shall be
thrown therein. The expense of any breakage, stoppage or damage resulting from the violation of this rule shall be borne by the
Tenant whom, or whose employees or invitees, shall have caused it.

 

		14.	Intoxication. Landlord reserves the right to exclude or expel from the Building any person
who, in the judgment of Landlord, is intoxicated, or under the influence of liquor or drugs, or who in any way violates any of
the Rules and Regulations of the Building.

 

		15.	Nuisances and Certain Other Prohibited Uses. Tenant shall not (a) install or operate any
internal combustion engine, boiler, machinery, refrigerating, heating or air conditioning apparatus in or about the Premises; (b)
engage in any mechanical business, or in any service in or about the Premises or Building, except those ordinarily embraced within
the Permitted Use as specified in Section 3 of the Lease; (c) use the Premises for housing, lodging, or sleeping purposes; (d)
prepare or warm food in the Premises or permit food to be brought into the Premises for consumption therein (heating coffee and
individual lunches of employees excepted) except by express permission of Landlord; (e) place any radio or television antennae
on the roof or on or in any part of the inside or outside of the Building other than the inside of the Premises, or place a musical
or sound producing instrument or device inside or outside the Premises which may be heard outside the Premises; (f) use any power
source for the operation of any equipment or device other than dry cell batteries or electricity; (g) operate any electrical device
from which may emanate waves that could interfere with or impair radio or television broadcasting or reception from or in the Building
or elsewhere; (h) bring or permit to be in the Building any bicycle, other vehicle, dog (except in the company of a blind person),
other animal or bird; (i) make or permit any objectionable noise or odor to emanate from the Premises; (j) disturb, harass, solicit
or canvass any occupant of the Building; (k) do anything in or about the Premises which could be a nuisance or tend to injure the
reputation of the Building; (i) allow any firearms in the Building or the Premises except as approved by Landlord in writing.

 

		16.	Solicitation. Tenant shall not canvass other tenants in the Building to solicit business
or contributions and shall not exhibit, sell or offer to sell, use, rent or exchange any products or services in or from the Premises
unless ordinarily embraced within the Tenant's Permitted Use as specified in Section 3 of the Lease.

 

		17.	Energy Conservation. Tenant shall not waste electricity, water, heat or air conditioning
and agrees to cooperate fully with Landlord to insure the most effective operation of the Building's heating and air

 

    	14

    	 

    

 

			conditioning,
and shall not allow the adjustment (except by Landlord's authorized Building personnel) of any controls.

 

		18.	Building Security. At all times other than normal business hours the exterior Building doors
and suite entry door(s) must be kept locked to assist in security. Problems in Building and suite security should be directed to
Landlord at (___)________.

 

		19.	Parking. Parking is in designated parking areas only. There shall be no vehicles in "no
parking" zones or at curbs. Handicapped spaces are for handicapped persons only and the Police Department will ticket unauthorized
(unidentified) cars in handicapped spaces. Landlord reserves the right to remove vehicles that do not comply with the Lease or
these Rules and Regulations and Tenant shall indemnify and hold harmless Landlord from its reasonable exercise of these rights
with respect to the vehicles of Tenant and its employees, agents and invitees.

 

		20.	Janitorial Service. The janitorial staff will remove all trash from trashcans. Any container
or boxes left in hallways or apparently discarded unless clearly and conspicuously labeled DO NOT REMOVE may be removed without
liability to Tenant. Any large volume of trash resulting from delivery of furniture, equipment, etc., should be removed by the
delivery company, Tenant, or Landlord at Tenant's expense. Janitorial service will be provided after hours five (5) days a week.
All requests for trash removal other than normal janitorial services should be directed to Landlord at (___)________.

 

		21.	Construction. Tenant shall make no structural or interior alterations of the Premises. All
structural and nonstructural alterations and modifications to the Premises shall be coordinated through Landlord as outlined in
the Lease. Completed construction drawings of the requested changes are to be submitted to Landlord or its designated agent for
pricing and construction supervision.

 

    	15

    	 

    

 

LEASE
AMENDMENT NUMBER ONE

 

This
LEASE AMENDMENT NUMBER ONE entered into this 6th day of December, 2011 (the “First Amendment”), by and between HIGHWOODS
REALTY LIMITED PARTNERSHIP, a North Carolina limited partnership (the “Landlord”) and NEPHROGENEX INCORPORATED,
a Delaware corporation (“Tenant”).

 

W
I T N E S S E T H:

 

WHEREAS,
Tenant and Landlord entered into that certain Short Term Office Lease dated June 15, 2011 (the “Lease”), for space
designated as Suite 290, comprising approximately 3,073 rentable square feet, in the 4401 Research Commons Building, located at
79 T.W. Alexander Drive, Research Triangle Park, North Carolina 27709; and

 

WHEREAS,
the parties hereto desire to alter and modify said Lease in the manner hereinafter set forth,

 

NOW
THEREFORE, in consideration of the mutual and reciprocal promises contained herein and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant hereby agree to amend the Lease as follows:

 

		1.	Term. Effective on January 1, 2012, Section 2 of the
Lease, entitled “Term”, shall be amended to extend the Expiration Date through June 30, 2012. The period commencing
January 1, 2012 and ending June 30, 2012 shall hereinafter be referred to as the “First Renewal Term”. Landlord and
Tenant acknowledge and agree that the extension of the Lease for the First Renewal Term exercises Tenant’s Extension Option
pursuant to the Lease and Tenant shall have no further options to extend the Term of the Lease unless otherwise agreed in writing
by Landlord.

 

		2.	Base Rent. Effective on January 1, 2012, Section 3
of the Lease, entitled “Base Rent”, shall be amended to provide that cumulative Base Rent during the First Renewal
Term shall be $24,583.98, to be payable in equal monthly installments of $4,097.33 in accordance with the Lease. 

 

		3.	Brokers’ Commissions. Tenant hereby represents
and warrants to Landlord that Tenant has not dealt with any real estate broker, finder or other person with respect to this First
Amendment and the extension of the Lease. Tenant shall indemnify, defend and hold harmless Landlord from and against any claims,
damages, expenses and liabilities arising from Tenant’s breach of this representation and warranty. 

 

		4.	Miscellaneous. The foregoing is intended to be an
addition and a modification to the Lease. Unless otherwise defined herein, all capitalized terms used in this First Amendment shall
have the same definitions ascribed in the Lease. Except as modified and amended by this First Amendment, the Lease shall remain
in full force and effect. If anything contained in this First Amendment conflicts with any terms of the Lease, then the terms of
this First Amendment shall govern and any conflicting terms in the Lease shall be deemed deleted in their entirety.

 

		5.	Tenant Acknowledgment. Tenant acknowledges that
Landlord has complied with all of its obligations under said Lease to date, and, to the extent not expressly modified hereby, all
of the terms and conditions of said Lease shall remain unchanged and in full force and effect.

 

    	1

    	 

    

 

IN
WITNESS WHEREOF, Tenant and Landlord have caused this instrument to be executed as of the date first above written, by their respective
officers or parties thereunto duly authorized.

 

Tenant:

 

NEPHROGENEX
INCORPORATED

a Delaware
corporation

 

	 	By: 	/s/ Bob Peterson	 
	 	Name: 	Bob Peterson	 
	 	Title: 	VP Operations	 
	 	 	 	 
	 	Date: 	12/6/11	 

 

 

	Landlord:	 
	 	 
	HIGHWOODS REALTY LIMITED PARTNERSHIP	 
	a North Carolina limited partnership	 
	By: Highwoods Properties, Inc., its general partner	 
	a Maryland corporation	 

 

	 	By: 	/s/ Thomas S. Hill III	 
	 	 	Thomas S. Hill, III
	 	 	Vice President and Division Manager

 

    	2

    	 

    

 

LEASE
AMENDMENT NUMBER TWO

 

This
LEASE AMENDMENT NUMBER TWO entered into this 27th day of June, 2012 (the “Second Amendment”), by and between
HIGHWOODS REALTY LIMITED PARTNERSHIP, a North Carolina limited partnership (the “Landlord”) and NEPHROGENEX
INCORPORATED, a Delaware corporation (“Tenant”).

 

W
I T N E S S E T H:

 

WHEREAS,
Tenant and Landlord entered into that certain Short Term Office Lease dated June 15, 2011 (the “Lease Agreement”),
as amended by that Lease Amendment Number One dated December 6, 2011 (the "First Amendment”), for space designated as
Suite 290, comprising approximately 3,073 rentable square feet, in the 4401 Research Commons Building, located at 79 T.W. Alexander
Drive, Research Triangle Park, North Carolina 27709; 

 

WHEREAS,
the Lease Agreement and the First Amendment are collectively referred to hereinafter as the “Lease”; and

 

WHEREAS,
the parties hereto desire to alter and modify said Lease in the manner hereinafter set forth.

 

NOW
THEREFORE, in consideration of the mutual and reciprocal promises contained herein and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant hereby agree to amend the Lease as follows:

 

		1.	Term. Effective on July 1, 2012, Section 2 of the
Lease entitled “Term” shall be amended to extend the Expiration Date through December 31, 2012. The period commencing
July 1, 2012 and ending December 31, 2012 shall hereinafter be referred to as the “Second Renewal Term”. Landlord and
Tenant acknowledge and agree that Landlord’s consent to the extension of the Lease for the Second Renewal Term is specific
and exclusive to this Second Amendment and that Tenant’s lone Extension Option under the Lease was previously exercised by
Tenant under the First Amendment and that Tenant has no further options to extend the Term of the Lease unless otherwise agreed
in writing by Landlord.

 

		2.	Base Rent. Effective on July 1, 2012, Section 3 of
the Lease entitled “Base Rent” shall be amended to provide that cumulative Base Rent during the Second Renewal Term
shall be $25,321.50, to be payable in equal monthly installments of $4,220.25 in accordance with the Lease. 

 

		3.	Brokers’ Commissions. Tenant hereby represents
and warrants to Landlord that Tenant has not dealt with any real estate broker, finder or other person with respect to this Second
Amendment and the extension of the Lease. Tenant shall indemnify, defend and hold harmless Landlord from and against any claims,
damages, expenses and liabilities arising from Tenant’s breach of this representation and warranty. 

 

		4.	Miscellaneous. The foregoing is intended to be an
addition and a modification to the Lease. Unless otherwise defined herein, all capitalized terms used in this Second Amendment
shall have the same definitions ascribed in the Lease. Except as modified and amended by this Second Amendment, the Lease shall
remain in full force and effect. If anything contained in this Second Amendment conflicts with any terms of the Lease, then the
terms of this Second Amendment shall govern and any conflicting terms in the Lease shall be deemed deleted in their entirety.

 

		5.	Tenant Acknowledgment.  Tenant acknowledges
that Landlord has complied with all of its obligations under said Lease to date, and, to the extent not expressly modified hereby,
all of the terms and conditions of said Lease shall remain unchanged and in full force and effect.

 

    	1

    	 

    

 

IN
WITNESS WHEREOF, Tenant and Landlord have caused this instrument to be executed as of the date first above written, by their respective
officers or parties thereunto duly authorized.

 

Tenant:

 

NEPHROGENEX
INCORPORATED

a Delaware
corporation

 

	 	By: 	/s/ J. Wesley Fox	 
	 	Name: 	J. Wesley Fox	 
	 	Title: 	President and CEO	 
	 	 	 	 
	 	Date: 	June 27, 2012	 

 

 

	Landlord:	 
	 	 
	HIGHWOODS REALTY LIMITED PARTNERSHIP	 
	a North Carolina limited partnership	 
	By: Highwoods Properties, Inc., its general partner	 
	a Maryland corporation	 

 

	 	By:	/s/ Thomas S. Hill III	 
	 	 	Thomas S. Hill, III
	 	 	Vice President and Division Manager

 

    	2

    	 

    

 

LEASE
AMENDMENT NUMBER THREE

 

This
LEASE AMENDMENT NUMBER THREE entered into this 20th day of December, 2012 (the “Third Amendment”), by and
between HIGHWOODS REALTY LIMITED PARTNERSHIP, a North Carolina limited partnership (the “Landlord”) and NEPHROGENEX
INCORPORATED, a Delaware corporation (“Tenant”).

 

W I
T N E S S E T H:

 

WHEREAS,
Tenant and Landlord entered into that certain Short Term Office Lease dated June 15, 2011 (the “Lease Agreement”),
as amended by that Lease Amendment Number One dated December 6, 2011 (the "First Amendment”), and as amended by that
Lease Amendment Number Two dated June 27, 2012 (the “Second Amendment”) for space designated as Suite 290, comprising
approximately 3,073 rentable square feet, in the 4401 Research Commons Building, located at 79 T.W. Alexander Drive, Research Triangle
Park, North Carolina 27709; 

 

WHEREAS,
the Lease Agreement, First Amendment and Second Amendment are collectively referred to hereinafter as the “Lease”;
and

 

WHEREAS,
the parties hereto desire to alter and modify said Lease in the manner hereinafter set forth.

 

NOW THEREFORE,
in consideration of the mutual and reciprocal promises contained herein and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, Landlord and Tenant hereby agree to amend the Lease as follows:

 

		1.	Term. Effective on January 1, 2013, Section 2 of the
Lease entitled “Term” shall be amended to extend the Expiration Date through June 30, 2013. The period commencing January
1, 2013 and ending June 30, 2013 shall hereinafter be referred to as the “Third Renewal Term”. Landlord and Tenant
acknowledge and agree that Landlord’s consent to the extension of the Lease for the Third Renewal Term is specific and exclusive
to this Third Amendment and that Tenant’s lone Extension Option under the Lease was previously exercised by Tenant under
the First Amendment and that Tenant has no further options to extend the Term of the Lease unless otherwise agreed in writing by
Landlord.

 

		2.	Base Rent. Effective on January 1, 2013, Section 3
of the Lease entitled “Base Rent” shall be amended to provide that cumulative Base Rent during the Third Renewal Term
shall be $26,081.15, to be payable in equal monthly installments of $4,346.86 in accordance with the Lease. 

 

		3.	Brokers’ Commissions. Tenant hereby represents
and warrants to Landlord that Tenant has not dealt with any real estate broker, finder or other person with respect to this Third
Amendment and the extension of the Lease. Tenant shall indemnify, defend and hold harmless Landlord from and against any claims,
damages, expenses and liabilities arising from Tenant’s breach of this representation and warranty. 

 

		4.	Miscellaneous.
The foregoing is intended to be an addition and a modification to the Lease. Unless otherwise defined herein, all capitalized
terms used in this Third Amendment shall have the same definitions ascribed in the Lease. Except as modified and amended by this
Third

 

 

    	1

    	 

    
 

			Amendment,
the Lease shall remain in full force and effect. If anything contained in this Third Amendment conflicts with any terms of the
Lease, then the terms of this Third Amendment shall govern and any conflicting terms in the Lease shall be deemed deleted in their
entirety.

 

		15.	Tenant Acknowledgment.  Tenant acknowledges
that Landlord has complied with all of its obligations under said Lease to date, and, to the extent not expressly modified hereby,
all of the terms and conditions of said Lease shall remain unchanged and in full force and effect.

 

    	2

    	 

    

 

IN WITNESS
WHEREOF, Tenant and Landlord have caused this instrument to be executed as of the date first above written, by their respective
officers or parties thereunto duly authorized.

 

Tenant:

 

NEPHROGENEX
INCORPORATED

a Delaware
corporation

 

	 	By:	/s/ J. Wesley Fox	 
	 	Name: 	J. Wesley Fox, Ph. D.	 
	 	Title: 	President and CEO	 
	 	 	 	 
	 	Date: 	12-20-12	 

 

 

	Landlord:	 
	 	 
	HIGHWOODS REALTY LIMITED PARTNERSHIP	 
	a North Carolina limited partnership	 
	By: Highwoods Properties, Inc., its general partner	 
	a Maryland corporation	 

 

	 	By: 	/s/ Thomas S. Hill III	 
	 	 	Thomas S. Hill, III
	 	 	Vice President and Division Manager

 

    	3

    	 

    

 

LEASE
AMENDMENT NUMBER FOUR

 

This
LEASE AMENDMENT NUMBER FOUR entered into this 1st day of July, 2013 (the “Fourth Amendment”), by and between HIGHWOODS
REALTY LIMITED PARTNERSHIP, a North Carolina limited partnership (the “Landlord”) and NEPHROGENEX INCORPORATED,
a Delaware corporation (“Tenant”).

 

W
I T N E S S E T H:

 

WHEREAS,
Tenant and Landlord entered into that certain Short Term Office Lease dated June 15, 2011 (the “Lease Agreement”),
as amended by that Lease Amendment Number One dated December 6, 2011 (the "First Amendment”), as amended by that certain
Lease Amendment Number Two dated June 27, 2012 (the “Second Amendment”), and as amended by that certain Lease Amendment
Number Three dated December 20, 2012 (the “Third Amendment”) for space designated as Suite 290, comprising approximately
3,073 rentable square feet, in the 4401 Research Commons Building, located at 79 T.W. Alexander Drive, Research Triangle Park,
North Carolina 27709; 

 

WHEREAS,
the Lease Agreement, First Amendment, Second Amendment, and Third Amendment are collectively referred to hereinafter as the “Lease”;
and

 

WHEREAS,
the parties hereto desire to alter and modify said Lease in the manner hereinafter set forth.

 

NOW
THEREFORE, in consideration of the mutual and reciprocal promises contained herein and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant hereby agree to amend the Lease as follows:

 

		1.	Term. Effective on July 1, 2013, Section 2 of the
Lease entitled “Term” shall be amended to extend the Expiration Date through December 31, 2013. The period commencing
July 1, 2013 and ending December 31, 2013 shall hereinafter be referred to as the “Fourth Renewal Term”. Landlord and
Tenant acknowledge and agree that Landlord’s consent to the extension of the Lease for the Fourth Renewal Term is specific
and exclusive to this Fourth Amendment and that Tenant’s lone Extension Option under the Lease was previously exercised by
Tenant under the First Amendment and that Tenant has no further options to extend the Term of the Lease unless otherwise agreed
in writing by Landlord.

 

		2.	Base Rent. Effective on July 1, 2013, Section 3 of
the Lease entitled “Base Rent” shall be amended to provide that cumulative Base Rent during the Fourth Renewal Term
shall be $26,081.15, to be payable in equal monthly installments of $4,346.86 in accordance with the Lease. 

 

		3.	Brokers’ Commissions. Tenant hereby represents
and warrants to Landlord that Tenant has not dealt with any real estate broker, finder or other person with respect to this Fourth
Amendment and the extension of the Lease. Tenant shall indemnify, defend and hold harmless Landlord from and against any claims,
damages, expenses and liabilities arising from Tenant’s breach of this representation and warranty. 

 

		4.	Miscellaneous. The foregoing is intended to be an
addition and a modification to the Lease. Unless otherwise defined herein, all capitalized terms used in this Fourth Amendment
shall have the same definitions ascribed in the Lease. Except as modified and amended by this Fourth Amendment, the Lease shall
remain in full force and effect. If anything contained in this Fourth Amendment conflicts with any terms of the Lease, then the
terms of this Fourth Amendment shall govern and any conflicting terms in the Lease shall be deemed deleted in their entirety.

 

		5.	Tenant Acknowledgment.  Tenant acknowledges
that Landlord has complied with all of its obligations under said Lease to date, and, to the extent not expressly modified hereby,
all of the terms and conditions of said Lease shall remain unchanged and in full force and effect.

 

    	1

    	 

    

 

IN
WITNESS WHEREOF, Tenant and Landlord have caused this instrument to be executed as of the date first above written, by their respective
officers or parties thereunto duly authorized.

 

Tenant:

NEPHROGENEX
INCORPORATED

a Delaware
corporation

 

	 	By: 	/s/ J. Wesley Fox	 
	 	Name:	J. Wesley Fox, Ph.D.	 
	 	Title:	President and CEO	 
	 	 	 	 
	 	Date:	July 1, 2013	 

 

 

	Landlord:	 
	 	 
	HIGHWOODS REALTY LIMITED PARTNERSHIP	 
	a North Carolina limited partnership	 
	By: Highwoods Properties, Inc., its general partner	 
	a Maryland corporation	 

 

	 	By: 	/s/ Thomas S. Hill III	 
	 	 	Thomas S. Hill, III
	 	 	Vice President and Division Manager

 

    	2Exhibit 10.10.1

 

NephroGenex,
Inc.

 

2005
Stock Option Plan

 

Adopted
Effective February 1, 2005

Amended
and Restated Effective August 13, 2007

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 
	SECTION 1.    Establishment and Purpose	1
	 	 
	SECTION 2.    Administration	1
	(a)	Committees of the Board of Directors	1
	(b)	Authority of the Board of Directors	1
	 	 
	SECTION 3.    Eligibility	1
	(a)	General Rule	1
	(b)	Ten-Percent Stockholders	2
	 	 
	SECTION 4.    Stock Subject to Plan	2
	(a)	Basic Limitation	2
	(b)	Additional Shares	2
	 	 
	SECTION 5.    Terms and Conditions of Awards or Sales	2
	(a)	Stock Purchase Agreement	2
	(b)	Duration of Offers and Nontransferability of Rights	3
	(c)	Purchase Price	3
	(d)	Withholding Taxes	3
	(e)	Restrictions on Transfer of Shares and Minimum Vesting	3
	 	 
	SECTION 6.    Terms and Conditions of Options	3
	(a)	Stock Option Agreement	3
	(b)	Number of Shares	4
	(c)	Exercise Price	4
	(d)	Exercisability	4
	(e)	Basic Term	4
	(f)	Termination of Service (Except by Death)	4
	(g)	Leaves of Absence	5
	(h)	Death of Optionee	5
	(i)	Restrictions on Transfer of Shares and Minimum Vesting	6
	(j)	Transferability of Options	6
	(k)	Withholding Taxes	6
	(l)	No Rights as a Stockholder	6
	(m)	Modification, Extension and Assumption of Options	6
	 	 
	SECTION 7.    Payment for Shares	7
	(a)	General Rule	7
	(b)	Services Rendered	7
	(c)	Promissory Note	7
	(d)	Surrender of Stock	7
	(e)	Exercise/Sale	7
	(f)	Other Forms of Payment	8

 

    	i

    	 

    

 

	SECTION 8.    Adjustment of Shares	8
	(a)	General	8
	(b)	Mergers and Consolidations	8
	(c)	Reservation of Rights	9
	 	 
	SECTION 9.    Securities Law Requirements	9
	(a)	General	9
	(b)	Financial Reports	9
	 	 
	SECTION 10.  No Retention Rights	10
	 	 
	SECTION 11.  Duration and Amendments	10
	(a)	Term of the Plan	10
	(b)	Right to Amend or Terminate the Plan	10
	(c)	Effect of Amendment or Termination	10
	 	 
	SECTION 12.  Definitions	10

 

    	ii

    	 

    

 

NephroGenex,
Inc. 2005 Stock Option Plan

 

SECTION 1.  Establishment
And Purpose 

 

The purpose of the Plan is
to offer selected persons an opportunity to acquire a proprietary interest in the success of the Company, or to increase such interest,
by purchasing Shares of the Company’s Stock. The Plan provides both for the direct award or sale of Shares and for the grant
of Options to purchase Shares. Options granted under the Plan may include Nonstatutory Options as well as ISOs intended to qualify
under Section 422 of the Code.

 

Capitalized terms are defined
in Section 12.

 

SECTION 2.  Administration 

 

(a)      Committees of
the Board of Directors

 

The Plan may be administered
by one or more Committees. Each Committee shall consist of one or more members of the Board of Directors who have been appointed
by the Board of Directors. Each Committee shall have such authority and be responsible for such functions as the Board of Directors
has assigned to it. If no Committee has been appointed, the entire Board of Directors shall administer the Plan. Any reference
to the Board of Directors in the Plan shall be construed as a reference to the Committee (if any) to whom the Board of Directors
has assigned a particular function.

 

(b)      Authority
of the Board of Directors

 

Subject to the provisions
of the Plan, the Board of Directors shall have full authority and discretion to take any actions it deems necessary or advisable
for the administration of the Plan. All decisions, interpretations and other actions of the Board of Directors shall be final and
binding on all Purchasers, all Optionees and all persons deriving their rights from a Purchaser or Optionee.

 

SECTION 3.  Eligibility 

 

(a)      General
Rule

 

Only Employees, Outside
Directors and Consultants shall be eligible for the grant of Nonstatutory Options
or the direct award or sale of Shares. Only Employees shall be eligible for the grant of ISOs.

 

    	 

    	 

    

 

(b)      Ten-Percent
Stockholders

 

A person who owns more
than 10% of the total combined voting power of all classes of outstanding stock of the Company, its Parent or any of its Subsidiaries
shall not be eligible for designation as an Optionee or Purchaser unless (i) the Exercise Price is at least 110% of the Fair
Market Value of a Share on the date of grant, (ii) the Purchase Price (if any) is at least 100% of the Fair Market Value of
a Share and (iii) in the case of an ISO, such ISO by its terms is not exercisable after the expiration of five years from
the date of grant. For purposes of this Subsection (b), in determining stock ownership, the attribution rules of Section 424(d)
of the Code shall be applied.

 

SECTION 4.  Stock
Subject To Plan 

 

(a)      Basic Limitation

 

Not more than 3,367,270
Shares may be issued under the Plan (subject to Subsection (b) below and Section 8(a)). All of these Shares may be issued
upon the exercise of ISOs. The number of Shares that are subject to Options or other rights outstanding at any time under the Plan
shall not exceed the number of Shares that then remain available for issuance under the Plan. The Company, during the term of the
Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan. Shares offered under
the Plan may be authorized but unissued Shares or treasury Shares.

 

(b)      Additional
Shares

 

In the event that Shares
previously issued under the Plan are reacquired by the Company, such Shares shall be added to the number of Shares then available
for issuance under the Plan. In the event that an outstanding Option or other right for any reason expires or is canceled, the
Shares allocable to the unexercised portion of such Option or other right shall be added to the number of Shares then available
for issuance under the Plan.

 

SECTION 5.  Terms
And Conditions Of Awards Or Sales 

 

(a)      Stock Purchase
Agreement

 

Each award or sale of Shares
under the Plan (other than upon exercise of an Option) shall be evidenced by a Stock Purchase Agreement between the Purchaser and
the Company. Such award or sale shall be subject to all applicable terms and conditions of the Plan and may be subject to any other
terms and conditions which are not inconsistent with the Plan and which the Board of Directors deems appropriate for inclusion
in a Stock Purchase Agreement. The provisions of the various Stock Purchase Agreements entered into under the Plan need not be
identical.

 

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(b)      Duration
of Offers and Nontransferability of Rights

 

Any right to acquire Shares
under the Plan (other than an Option) shall automatically expire if not exercised by the Purchaser within 30 days after the grant
of such right was communicated to the Purchaser by the Company. Such right shall not be transferable and shall be exercisable only
by the Purchaser to whom such right was granted.

 

(c)      Purchase
Price

 

The Purchase Price of Shares
to be offered under the Plan shall not be less than 85% of the Fair Market Value of such Shares, and a higher percentage may be
required by Section 3(b). Subject to the preceding sentence, the Board of Directors shall determine the Purchase Price at
its sole discretion. The Purchase Price shall be payable in a form described in Section 7.

 

(d)      Withholding
Taxes

 

As a condition to the purchase
of Shares, the Purchaser shall make such arrangements as the Board of Directors may require for the satisfaction of any federal,
state, local or foreign withholding tax obligations that may arise in connection with such purchase.

 

(e)      Restrictions
on Transfer of Shares and Minimum Vesting

 

Any Shares awarded or sold
under the Plan shall be subject to such special forfeiture conditions, rights of repurchase, rights of first refusal and other
transfer restrictions as the Board of Directors may determine. Such restrictions shall be set forth in the applicable Stock Purchase
Agreement and shall apply in addition to any restrictions that may apply to holders of Shares generally. In the case of a Purchaser
who is not an officer of the Company, an Outside Director or a Consultant:

 

(i)     Any right
to repurchase the Purchaser’s Shares at the original Purchase Price (if any) upon termination of the Purchaser’s Service
shall lapse at least as rapidly as 20% per year over the five-year period commencing on the date of the award or sale of the Shares;

 

(ii)     Any such
right may be exercised only for cash or for cancellation of indebtedness incurred in purchasing the Shares; and

 

(iii)    Any such
right may be exercised only within 90 days after the termination of the Purchaser’s Service.

 

SECTION 6.  Terms
And Conditions Of Options 

 

(a)      Stock
Option Agreement

 

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Each grant of an Option
under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. The Option shall be subject
to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent
with the Plan and which the Board of Directors deems appropriate for inclusion in a Stock Option Agreement. The provisions of the
various Stock Option Agreements entered into under the Plan need not be identical.

 

(b)      Number of Shares

 

Each Stock Option Agreement
shall specify the number of Shares that are subject to the Option and shall provide for the adjustment of such number in accordance
with Section 8. The Stock Option Agreement shall also specify whether the Option is an ISO or a Nonstatutory Option.

 

(c)      Exercise Price

 

Each Stock Option Agreement
shall specify the Exercise Price. The Exercise Price of any Option shall not be less than 100% of the Fair Market Value of a Share
on the date of grant, and a higher percentage may be required by Section 3(b). Subject to the preceding sentence, the Exercise
Price shall be determined by the Board of Directors at its sole discretion. The Exercise Price shall be payable in a form described
in Section 7.

 

(d)      Exercisability

 

Each Stock Option Agreement
shall specify the date when all or any installment of the Option is to become exercisable. No Option shall be exercisable unless
the Optionee (i) has delivered an executed copy of the Stock Option Agreement to the Company or (ii) otherwise agrees
to be bound by the terms of the Stock Option Agreement. In the case of an Optionee who is not an officer of the Company, an Outside
Director or a Consultant, an Option shall become exercisable at least as rapidly as 20% per year over the five-year period commencing
on the date of grant. Subject to the preceding sentence, the Board of Directors shall determine the exercisability provisions of
the Stock Option Agreement at its sole discretion. All of an Optionee’s Options shall become exercisable in full if Section 8(b)(iv)
applies.

 

(e)      Basic
Term

 

The Stock Option Agreement
shall specify the term of the Option. The term shall not exceed 10 years from the date of grant, and a shorter term may be required
by Section 3(b). Subject to the preceding sentence, the Board of Directors at its sole discretion shall determine when an
Option is to expire.

 

(f)       Termination
of Service (Except by Death)

 

If an Optionee’s
Service terminates for any reason other than the Optionee’s death, then the Optionee’s Options shall expire on the
earliest of the following occasions:

 

(i)     The expiration
date determined pursuant to Subsection (e) above;

 

    	4

    	 

    

 

(ii)     The date
three months after the termination of the Optionee’s Service for any reason other than Disability, or such later date as
the Board of Directors may determine; or

 

(iii)    The date
six months after the termination of the Optionee’s Service by reason of Disability, or such later date as the Board of Directors
may determine.

 

The Optionee may exercise
all or part of the Optionee’s Options at any time before the expiration of such Options under the preceding sentence, but
only to the extent that such Options had become exercisable before the Optionee’s Service terminated (or became exercisable
as a result of the termination) and the underlying Shares had vested before the Optionee’s Service terminated (or vested
as a result of the termination). The balance of such Options shall lapse when the Optionee’s Service terminates. In the event
that the Optionee dies after the termination of the Optionee’s Service but before the expiration of the Optionee’s
Options, all or part of such Options may be exercised (prior to expiration) by the executors or administrators of the Optionee’s
estate or by any person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance,
but only to the extent that such Options had become exercisable before the Optionee’s Service terminated (or became exercisable
as a result of the termination) and the underlying Shares had vested before the Optionee’s Service terminated (or vested
as a result of the termination).

 

(g)      Leaves of Absence

 

For purposes of Subsection (f)
above, Service shall be deemed to continue while the Optionee is on a bona fide leave of absence, if such leave was approved by
the Company in writing and if continued crediting of Service for this purpose is expressly required by the terms of such leave
or by applicable law (as determined by the Company).

 

(h)      Death of Optionee

 

If an Optionee dies while
the Optionee is in Service, then the Optionee’s Options shall expire on the earlier of the following dates:

 

(i)     The expiration
date determined pursuant to Subsection (e) above; or

 

(ii)     The date
12 months after the Optionee’s death, or such later date as the Board of Directors may determine.

 

All or part of the Optionee’s
Options may be exercised at any time before the expiration of such Options under the preceding sentence by the executors or administrators
of the Optionee’s estate or by any person who has acquired such Options directly from the Optionee by beneficiary designation,
bequest or inheritance, but only to the extent that such Options had become exercisable before the Optionee’s death (or became
exercisable as a result of the death) and the underlying Shares had vested before the Optionee’s death (or vested as a result
of the Optionee’s death). The balance of such Options shall lapse when the Optionee dies.

 

    	5

    	 

    

 

(i)       Restrictions
on Transfer of Shares and Minimum Vesting

 

Any Shares issued upon
exercise of an Option shall be subject to such special forfeiture conditions, rights of repurchase, rights of first refusal and
other transfer restrictions as the Board of Directors may determine. Such restrictions shall be set forth in the applicable Stock
Option Agreement and shall apply in addition to any restrictions that may apply to holders of Shares generally. In the case of
an Optionee who is not an officer of the Company, an Outside Director or a Consultant:

 

(i)     Any right
to repurchase the Optionee’s Shares at the original Exercise Price upon termination of the Optionee’s Service shall
lapse at least as rapidly as 20% per year over the five-year period commencing on the date of the option grant;

 

(ii)    Any such
right may be exercised only for cash or for cancellation of indebtedness incurred in purchasing the Shares; and

 

(iii)    Any such
right may be exercised only within 90 days after the later of (A) the termination of the Optionee’s Service or (B) the
date of the option exercise.

 

(j)       Transferability
of Options

 

An Option shall be transferable
by the Optionee only by (i) a beneficiary designation, (ii) a will or (iii) the laws of descent and distribution,
except as provided in the next sentence. If the applicable Stock Option Agreement so provides, a Nonstatutory Option shall also
be transferable by gift or domestic relations order to a Family Member of the Optionee. An ISO may be exercised during the lifetime
of the Optionee only by the Optionee or by the Optionee’s guardian or legal representative.

 

(k)      Withholding
Taxes

 

As a condition to the exercise
of an Option, the Optionee shall make such arrangements as the Board of Directors may require for the satisfaction of any federal,
state, local or foreign withholding tax obligations that may arise in connection with such exercise. The Optionee shall also make
such arrangements as the Board of Directors may require for the satisfaction of any federal, state, local or foreign withholding
tax obligations that may arise in connection with the disposition of Shares acquired by exercising an Option.

 

(l)       No Rights as a
Stockholder

 

An Optionee, or a transferee
of an Optionee, shall have no rights as a stockholder with respect to any Shares covered by the Optionee’s Option until such
person becomes entitled to receive such Shares by filing a notice of exercise and paying the Exercise Price pursuant to the terms
of such Option.

 

(m)     Modification,
Extension and Assumption of Options

 

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Within the limitations
of the Plan, the Board of Directors may modify, extend or assume outstanding Options or may accept the cancellation of outstanding
Options (whether granted by the Company or another issuer) in return for the grant of new Options for the same or a different number
of Shares and at the same or a different Exercise Price. The foregoing notwithstanding, no modification of an Option shall, without
the consent of the Optionee, impair the Optionee’s rights or increase the Optionee’s obligations under such Option.

 

SECTION 7.  Payment
For Shares 

 

(a)      General Rule

 

The entire Purchase Price
or Exercise Price of Shares issued under the Plan shall be payable in cash or cash equivalents at the time when such Shares are
purchased, except as otherwise provided in this Section 7.

 

(b)      Services
Rendered

 

At the discretion of the
Board of Directors, Shares may be awarded under the Plan in consideration of services rendered to the Company, a Parent or a Subsidiary
prior to the award.

 

(c)      Promissory
Note

 

At the discretion of the
Board of Directors, all or a portion of the Purchase Price or Exercise Price (as the case may be) of Shares issued under the Plan
may be paid with a full-recourse promissory note. The Shares shall be pledged as security for payment of the principal amount of
the promissory note and interest thereon. The interest rate payable under the terms of the promissory note shall not be less than
the minimum rate (if any) required to avoid the imputation of additional interest under the Code. Subject to the foregoing, the
Board of Directors (at its sole discretion) shall specify the term, interest rate, amortization requirements (if any) and other
provisions of such note.

 

(d)      Surrender
of Stock

 

At the discretion of the
Board of Directors, all or any part of the Exercise Price may be paid by surrendering, or attesting to the ownership of, Shares
that are already owned by the Optionee. Such Shares shall be surrendered to the Company in good form for transfer and shall be
valued at their Fair Market Value as of the date when the Option is exercised.

 

(e)      Exercise/Sale

 

To the extent that a Stock
Option Agreement so provides, and if Stock is publicly traded, all or part of the Exercise Price and any withholding taxes may
be paid by the delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker approved by the
Company to sell Shares and to deliver all or part of the sales proceeds to the Company.

 

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(f)       Other
Forms of Payment

 

To the extent that a Stock
Purchase Agreement or Stock Option Agreement so provides, the Purchase Price or Exercise Price of Shares issued under the Plan
may be paid in any other form permitted by the Delaware General Corporation Law, as amended.

 

SECTION 8.  Adjustment
Of Shares 

 

(a)      General

 

In the event of a subdivision
of the outstanding Stock, a declaration of a dividend payable in Shares, a combination or consolidation of the outstanding Stock
into a lesser number of Shares, a reclassification, or any other increase or decrease in the number of issued shares of Stock effected
without receipt of consideration by the Company, proportionate adjustments shall automatically be made in each of (i) the
number of Shares available for future grants under Section 4, (ii) the number of Shares covered by each outstanding Option
and (iii) the Exercise Price under each outstanding Option. In the event of a declaration of an extraordinary dividend payable
in a form other than Shares in an amount that has a material effect on the Fair Market Value of the Stock, a recapitalization,
a spin-off, or a similar occurrence, the Board of Directors at its sole discretion may make appropriate adjustments in one or more
of (i) the number of Shares available for future grants under Section 4, (ii) the number of Shares covered by each
outstanding Option or (iii) the Exercise Price under each outstanding Option.

 

(b)      Mergers and Consolidations

 

In the event that the Company
is a party to a merger or consolidation, outstanding Options and Shares acquired under the Plan shall be subject to the agreement
of merger or consolidation, which need not treat all outstanding Options in an identical manner. Such agreement, without the Optionees’
consent, may dispose of Options that are not exercisable as of the effective date of such merger or consolidation in any manner
permitted by applicable law, including (without limitation) the cancellation of such Options without the payment of any consideration.
Such agreement, without the Optionees’ consent, shall provide for one or more of the following with respect to Options that
are exercisable as of the effective date of such merger or consolidation:

 

(i)     The continuation
of such Options by the Company (if the Company is the surviving corporation).

 

(ii)     The assumption
of such Options by the surviving corporation or its parent in a manner that complies with Section 424(a) of the Code (whether
or not such Options are ISOs).

 

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(iii)    The substitution
by the surviving corporation or its parent of new options for such Options in a manner that complies with Section 424(a) of
the Code (whether or not such Options are ISOs).

 

(iv)    The cancellation
of such Options and a payment to the Optionees equal to the excess of (A) the Fair Market Value of the Shares subject to such
Options as of the effective date of such merger or consolidation over (B) their Exercise Price. Such payment shall be made
in the form of cash, cash equivalents, or securities of the surviving corporation or its parent with a Fair Market Value equal
to the required amount.

 

(v)     The cancellation
of such Options. Any exercise of such Options prior to the closing date of such merger or consolidation may be contingent on the
closing of such merger or consolidation.

 

(c)      Reservation
of Rights

 

Except as provided in this
Section 8, an Optionee or Purchaser shall have no rights by reason of (i) any subdivision or consolidation of shares
of stock of any class, (ii) the payment of any dividend or (iii) any other increase or decrease in the number of shares
of stock of any class. Any issuance by the Company of shares of stock of any class, or securities convertible into shares of stock
of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price
of Shares subject to an Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or power of the
Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate
or to dissolve, liquidate, sell or transfer all or any part of its business or assets.

 

SECTION 9.  Securities
Law Requirements 

 

(a)      General

 

Shares shall not be issued
under the Plan unless the issuance and delivery of such Shares comply with (or are exempt from) all applicable requirements of
law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state
securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company’s
securities may then be traded.

 

(b)      Financial
Reports

 

The Company each year shall
furnish to Optionees, Purchasers and stockholders who have received Stock under the Plan its balance sheet and income statement,
unless such Optionees, Purchasers or stockholders are key Employees whose duties with the Company assure them access to equivalent
information. Such balance sheet and income statement need not be audited.

 

    	9

    	 

    

 

SECTION 10.  
No Retention Rights 

 

Nothing in the Plan or in
any right or Option granted under the Plan shall confer upon the Purchaser or Optionee any right to continue in Service for any
period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary
employing or retaining the Purchaser or Optionee) or of the Purchaser or Optionee, which rights are hereby expressly reserved by
each, to terminate his or her Service at any time and for any reason, with or without cause.

 

SECTION 11.  
Duration and Amendments 

 

(a)      Term
of the Plan

 

The amended and restated
Plan, as set forth herein, shall become effective on the date of its adoption by the Board of Directors. The Plan shall terminate
automatically on the later of (i) January 31, 2005, or (ii) 10 years after the date when the Board of Directors
approved the most recent increase in the number of Shares reserved under Section 4 that was also approved by the Company’s
stockholders. The Plan may be terminated on any earlier date pursuant to Subsection (b) below.

 

(b)      Right
to Amend or Terminate the Plan

 

The Board of Directors
may amend, suspend or terminate the Plan at any time and for any reason; provided, however, that any amendment of the Plan shall
be subject to the approval of the Company’s stockholders if it (i) increases the number of Shares available for issuance
under the Plan (except as provided in Section 8) or (ii) materially changes the class of persons who are eligible for
the grant of ISOs. Stockholder approval shall not be required for any other amendment of the Plan. If the stockholders fail to
approve an increase in the number of Shares reserved under Section 4 within 12 months after its adoption by the Board of Directors,
then any grants, exercises or sales that have already occurred in reliance on such increase shall be rescinded and no additional
grants, exercises or sales shall thereafter be made in reliance on such increase.

 

(c)      Effect
of Amendment or Termination

 

No Shares shall be issued
or sold under the Plan after the termination thereof, except upon exercise of an Option granted prior to such termination. The
termination of the Plan, or any amendment thereof, shall not affect any Share previously issued or any Option previously granted
under the Plan.

 

SECTION 12.  
Definitions

 

 

    	10

    	 

    

 

(a)      “Board of
Directors” shall mean the Board of Directors of the Company, as constituted from time to time.

 

(b)      “Code”
shall mean the Internal Revenue Code of 1986, as amended.

 

(c)      “Committee”
shall mean a committee of the Board of Directors, as described in Section 2(a).

 

(d)      “Company”
shall mean NephroGenex, Inc., a Delaware corporation.

 

(e)      “Consultant”
shall mean a person who performs bona fide services for the Company, a Parent or a Subsidiary as a consultant or advisor, excluding
Employees and Outside Directors.

 

(f)       “Disability”
shall mean that the Optionee is unable to engage in any substantial gainful activity by reason of any medically determinable physical
or mental impairment.

 

(g)      “Employee”
shall mean any individual who is a common-law employee of the Company, a Parent or a Subsidiary.

 

(h)      “Exercise
Price” shall mean the amount for which one Share may be purchased upon exercise of an Option, as specified by the Board
of Directors in the applicable Stock Option Agreement.

 

(i)       “Fair Market
Value” shall mean the fair market value of a Share, as determined by the Board of Directors in accordance with applicable
law. Such determination shall be conclusive and binding on all persons.

 

(j)       “Family Member”
shall mean (i) any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships, (ii) any
person sharing the Optionee’s household (other than a tenant or employee), (iii) a trust in which persons described
in Clause (i) or (ii) have more than 50% of the beneficial interest, (iv) a foundation in which persons described
in Clause (i) or (ii) or the Optionee control the management of assets and (v) any other entity in which persons
described in Clause (i) or (ii) or the Optionee own more than 50% of the voting interests.

 

(k)      “ISO”
shall mean an employee incentive stock option described in Section 422(b) of the Code.

 

(l)       “Nonstatutory
Option” shall mean a stock option not described in Sections 422(b) or 423(b) of the Code.

 

(m)      “Option”
shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares.

 

(n)      “Optionee”
shall mean a person who holds an Option.

 

    	11

    	 

    

 

(o)      “Outside
Director” shall mean a member of the Board of Directors who is not an Employee.

 

(p)      “Parent”
shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the
corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption
of the Plan shall be considered a Parent commencing as of such date.

 

(q)      “Plan”
shall mean this NephroGenex, Inc. 2005 Stock Option Plan.

 

(r)       “Purchase
Price” shall mean the consideration for which one Share may be acquired under the Plan (other than upon exercise of an
Option), as specified by the Board of Directors.

 

(s)       “Purchaser”
shall mean a person to whom the Board of Directors has offered the right to acquire Shares under the Plan (other than upon exercise
of an Option).

 

(t)       “Service”
shall mean service as an Employee, Outside Director or Consultant.

 

(u)       “Share”
shall mean one share of Stock, as adjusted in accordance with Section 8 (if applicable).

 

(v)       “Stock”
shall mean the Common Stock of the Company.

 

(w)      “Stock Option
Agreement” shall mean the agreement between the Company and an Optionee that contains the terms, conditions and restrictions
pertaining to the Optionee’s Option.

 

(x)       “Stock Purchase
Agreement” shall mean the agreement between the Company and a Purchaser who acquires Shares under the Plan that contains
the terms, conditions and restrictions pertaining to the acquisition of such Shares.

 

(y)       “Subsidiary”
shall mean any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of
the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined
voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a
Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date.

 

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