Document:

SUBLEASE AGREEMENT DATED SEPTEMBER 22, 1997 BETWEEN THE REGISTRANT AND INSPIRE

 Exhibit 10.12 
  
 SUBLEASE AGREEMENT 
  
 This Sublease Agreement (“Sublease”) dated this 22 day of September, 1997, by and between ICAgen, Inc., as sublessor (“Sublessor”) and Inspire
Pharmaceuticals, Inc, as sublessee (“Sublessee”). 
  
 WITNESETH: 
  
 WHEREAS, pursuant to a Lease
Agreement dated December 17, 1992, and amended by First Amendment of Lease dated August 26, 1996 between Sublessor as Tenant, and Imperial Center Partnership and Petula Associates, Ltd., as tenants in common operating as a joint venture, as
Landlord, (the “Lease”), attached hereto as Exhibit A and made a part hereof, Sublessor has leased from Landlord certain building space located at 4222 Emperor Boulevard, Suite 500, Durham, North Carolina containing approximately
2,372 square feet, such premises being shown on the floor plan attached hereto as Exhibit B (the “Premises”); and 
  
 WHEREAS, Sublessee desires to sublease from Sublessor the Premises on the terms and conditions set forth herein; and 
  
 WHEREAS, Landlord has consented to the sublease of the Premises and all of
the terms and conditions of this Sublease as indicated by Landlord’s Certificate to be delivered within ten (10) days of the execution of this Sublease. 
  
 NOW THEREFORE, for and in consideration of the payments referenced herein, and other mutual good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows: 
  

	1.	Sublease Term: Sublessor hereby subleases the Premises to Sublessee for a period of approximately three (3) years commencing Sept. 22, 1997 and terminating on the
Sublessor’s initial lease termination date of August 31, 2000. Sublessee may extend this Sublease for one (1) additional term of three (3) years (the “Renewal Term”) pursuant to the provisions of this Section 1. Sublessee shall give
Sublessor written notice (“Sublessee’s Notice”) of its desire to extend to Sublease at least one hundred and eighty (180) days prior to the expiration of the original term, provided Sublessee is not in default beyond any applicable
cure period set forth in this Sublease on the date of such notice. Within 30 days from the receipt of the Sublessee’s Notice, Sublessor shall give Sublessee written (“Sublessor’s Notice”) of the amount of the increase, if any, as
determined by the Landlord under paragraph 36A of the Lease, to the Base Rent as defined herein for such Renewal Term. Any such increase shall represent Sublessor’s increased costs under the Lease associated with the Premises. Within 10 days
from the receipt of Sublessor’s Notice, Sublessee shall give Sublessor written notice of its intention to extend the Sublease. In the event Sublessee does not respond within 10 days to Sublessor’s Notice, the Sublease shall extend on the
terms of the Sublessor’s Notice. Such Renewal Term shall be upon all of the terms and conditions hereof. The parties agree that this Sublease shall terminate upon the termination of the Lease, for whatever reason. As used herein, the
“Term” of this Sublease shall include the original term and any Renewal Term. 

	2.	Base Rent: During the Term of this Sublease, Sublessee shall pay to Sublessor as Base Rent the monthly sum of $1,680.17 for the rent of the Premises, which amount may
be increased during any Renewal Term, provided, however, that Base Rent for any partial month shall be prorated. Each installment of Base Rent shall be due and payable for each month during the Term of this Sublease on or before the twentieth day of
the previous month, at the address shown for Sublessor in Article 12 hereof, or at such other address as Sublessor may direct in writing. 

  

	3.	Additional Rent: In addition to the Base Rent, Sublessee shall pay to Sublessor, at the same time as monthly installment payments to rent are made, a sum which
represents Sublessor’s proportionate share of insurance costs, taxes and operating expense charges owed by Sublessor under the terms of the Lease for the Premises. For the purposes of this Sublease, the Sublessor’s proportionate share of
such pass through expenses paid by the Sublessor under the Lease for the Premises is 5.77% (2,372 square feet of the Premises divided by 41,094 square feet of the Building) and the initial monthly estimated amount of such payment shall be $398.02.
The actual amount of additional rent due from Sublessee shall be adjusted when the actual amount of Sublessor’s proportionate share of insurance costs, taxes and operating expense charges are determined under the Lease for the Premises. Upon
request of Sublessee, Sublessor shall provide Sublessee evidence supporting any and all amounts allocated to the Premises. 

  

	4.	Compliance with Lease: With respect to the Premises, Sublessee shall comply with all of the provisions of the Lease, except those provisions which conflict with or are
different from the terms of this Sublease in which event the terms of this Sublease shall control, and all rules and regulations of Landlord or Sublessor therein promulgated thereunder. Notwithstanding anything to the contrary in this Sublease,
Sublessee shall not take any action or omit to take any action which would cause Sublessor to be in default under the Lease. 

  

	5.	Utilities: During the Term, Sublessee shall establish its own account and shall pay for all Utilities for the Premises. For purpose of this Section 5,
“Utilities” shall mean costs with respect to the Premises for water, electricity, gas, sewage and any other utilities used by the Sublessee at the Premises. 

  

	6.	Indemnity and Insurance: Sublessee agrees to indemnify and hold harmless Sublessor, from any liability for damages to any person or property in, on or about the
Premises from any cause, unless caused by the negligence or willful act of Sublessor or its agents. If such damages are caused by the negligence or willful act of Sublessor or its agents, Sublessor shall indemnify and hold harmless Sublessee from
any resulting liability. Sublessee shall procure and keep in effect during the Term public liability and property damage insurance coverage of at least $1,000,000 per occurrence, $2,000,000 aggregate limit with excess of $2,000,000 and workers’
compensation insurance of at least $100,000 per employee and $500,000 per occurrence with the Sublessor named as an additional insured thereunder. Such policies shall 

  

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	 	contain language that the policies may not be canceled or changed except after thirty (30) days notice to Sublessor. Sublessee shall deliver copies of original policies or
satisfactory certificates thereof. 

  

	7.	Condition of Premises: Sublessee acknowledges it has examined the Premises and accepts the same “as is”. All improvements or alterations proposed for the
Premises must be approved by the Sublessor and the Landlord prior to construction and shall be at Sublessee’s sole expense. 

  

	8.	Assignment or Subletting: Sublessee may not assign its interest in the Sublease or sublet the Premises. 

  

	9.	Management Fee: Sublessee shall pay Sublessor an annual management fee of $1,000 on the commencement of the Term and on each anniversary date of the Term to reimburse
the Sublessor for management of the Sublease. 

  

	10.	Default: If at any time there shall occur any of the following events: 

  

	 	a.	If Sublessee shall default a payment of rent or any other sum of money becoming due hereunder and such default shall continue for fifteen (15) days after the due date; or

	 	b.	If Sublessee shall default on the performance of any other agreement, covenant or stipulation set forth in this Sublease and such default shall continue for thirty (30) days after a
written notice thereof; or 

	 	c.	If Sublessee shall be adjudicated bankrupt or insolvent under any federal or state law; or 

	 	d.	If Sublessee shall file or have against it a petition for the appointment of a receiver or trustee for all or essentially all of the assets of Sublessee and such appointment shall
not be vacated or set aside within thirty (60) days 

  
 then and in
any such event after the expiration of any applicable cure periods, Sublessor, without excluding other rights or remedies that it may have, shall have the right of reentry and may remove all persons and property from the Premises and dispose of such
property pursuant to summary or other legal process and without being deemed guilty of trespass or becoming liable for any loss or damage which may be occasioned hereby. If Sublessor should elect to reenter as herein provided and take possession
pursuant to legal proceedings, it may either terminate this Sublease, or it may from time to time without terminating this Sublease make such alterations or repairs as may be necessary in order to relet the Premises and relet the Premises for such
term and at such rentals and upon such other terms and conditions as Sublessor may deem advisable. No such reentry or taking possession of the Premises by Sublessor shall be construed as an election to terminate this Sublease unless a written notice
of such intention be given to Sublessee by Sublessor at the time of such reentry, but, notwithstanding such reentry and reletting without termination, Sublessor may at any time thereafter elect to terminate this Sublease for such previous breach. In
the event of any termination by Sublessor, whether before or after reentry, 
  

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 Sublessee shall remain obligated through the term of the Lease to continue to make monthly payments of Base Rent and any
additional rent pursuant to Section 3 hereof (except that the amount of such continuing payments shall be reduced by the amount of any rental payments received by Sublessor from a new subtenant in connection with the reletting of the Premises), and
Sublessor may recover from Sublessee damages incurred by reason of such breach. Notwithstanding the foregoing, such damages shall not include the cost of any upfitting of the Premises required to relet the Premises to the extent that such costs are
paid by the new subtenant. Sublessor agrees to use its reasonable good faith efforts to have such costs of upfitting paid by such new subtenant. As a remedy upon occurrence of any default only in the event that Sublessee fails to make timely and
continued monthly payments, Sublessor may accelerate the Base Rent to accrue during the remainder of the Term and declare the same immediately due and payable. No remedy herein or otherwise conferred upon or reserved to Sublessor shall be considered
exclusive of any other remedy but the same shall be distinct, separate and commutative and shall be in addition to any other remedy given by Sublessor by this Sublease and may be exercised from time to time as often as occasion may arise or may be
deemed expedient. No delay or omission of Sublessor to exercise any right or power arising from any delay on the part of Sublessee shall impair any right or power or shall be construed to be a waiver of any such default of any acquisition thereto.
Sublessee shall pay all costs, expenses and reasonable attorney’s fees that may be incurred or paid by Sublessor in enforcing the covenants, conditions and agreements of this Sublease with the remedies provided hereunder whether incurred as a
result of litigation or otherwise. 
  

	11.	Authorization and Warranty: The parties warrant that they are fully authorized and empowered to enter into this Agreement. Sublessor further warrants that the Lease is
not currently in default and will not be in default at any time prior to the date of delivery of the Premises to Sublessee. In the event Sublessor becomes aware or receives notice from the Landlord of a default by Sublessor under the Lease,
Sublessor shall promptly notify Sublessee of the same, and Sublessee shall have such rights as Sublessor has under the Lease to cure such default and Sublessor indemnifies Sublessee from and against the losses, costs and damages, arising out of
Sublessee’s curing such default. 

  

	12.	Covenant of Quiet Enjoyment: Sublessor covenants that, provided Sublessee is not in default hereunder beyond any applicable cure periods, Sublessee shall have and
enjoy the quite and peaceful possession of the Premises without interference from Sublessor. 

  

	13.	Miscellaneous: 

  

	 	(a)	The headings of the various articles of this Agreement are intended only for convenience and are not intended to limit, define or construe the scope of any article of this
Agreement, nor offset the provisions thereof. 

	 	(b)	Neither the method of computation of rent nor any other provision of this Agreement shall be deemed to create any relationship between the parties hereto other than that of
Sublessor and Sublessee. 

	 	(c)	This Agreement shall be governed by and construed in accordance with the laws of North Carolina. 

  

 4 

	 	(d)	This Agreement may be modified or amended only by written agreement of both parties hereto. 

	 	(e)	If any provision of this Agreement shall be deemed to be in contravention of any law, then the court rendering such determination shall have the authority to strike the contravening
provision from this Agreement, with the remaining provisions of this Agreement remaining in full force and effect. 

	 	(f)	This Agreement, and the covenants, conditions, warranties and agreements made and entered into by the parties hereto are declared binding on their respective heirs, successors,
representatives and assigns. 

	 	(g)	Whenever under this Agreement a provision is made for notice of any kind, it shall be deemed sufficient service thereof if such notice is in writing addressed to the respective
parties at the address shown below and delivered via hand delivery or overnight courier, with proof of delivery thereof. 

	 	(h)	Sublessor and Sublessee respectively represent and warrant to each other that neither of them has consulted or negotiated with any broker or finder with regard to the Premises or
otherwise in connection with this transaction. Each such party shall indemnify the other against and hold the other harmless from and against all liabilities, costs and expenses (including reasonable attorneys’ fees) for any claims for fees or
commissions from anyone arising out of their respective actions in connection with this Sublease. 

	 	(i)	If requested by Sublessee, Sublessor shall execute a recordable Memorandum of Sublease, prepared by and at Sublessee’s expense, specifying the exact term of this Sublease and
such other terms as the parties shall mutually determine and agree. 

  

	14.	Landlord’s Consent: The execution and delivery, within ten (10) days of the execution of this Sublease, of a Landlord’s Certificate in form reasonably
acceptable to both Sublessor and Sublessee shall be a condition precedent to the effectiveness of this Sublease. 

  

 5 

 If to Sublessor: 
  
 ICAgen, Inc. 
 4222 Emperor Boulevard, Suite
460 
 Durham, NC 27703 
  
 If to Sublessee: 
  
 Inspire Pharmaceuticals, Inc. 
 4222 Emperor
Boulevard, Suite 480 
 Durham, NC 27703 
  
 [Signature Page Attached and Incorporated herein By Reference] 
  

 6 

 IN WITNESS WHEREOF, the undersigned have hereunto set their hands and seals as of the day and year first
written above. 
  

			
	 SUBLESSOR:

	
	 ICAgen, Inc.

		
	 By:
	 	 /s/ P. Kay Wagoner

	 Its:
	 	 President and CEO

  

	
	 ATTEST:

	
	 /s/ Mary Ann Windon

	 Secretary/Assistant Secretary

	
	 [CORPORATE SEAL]

  

			
	
	 SUBLESSEE:

	
	 Inspire Pharmaceuticals, Inc.

		
	 By:
	 	 /s/ David J. Drutz

	 Its:
	 	 President + CEO

  

	
	 ATTEST:

	
	 /s/ Michael Lytle

	 Secretary/Assistant Secretary

	
	 [CORPORATE SEAL]

  

 7 

 CONSENT TO SUBLEASE AGREEMENT 
  
 As of this 21st day of November, 1997, Imperial Center Ltd. Partnership, a North Carolina limited partnership
(hereinafter, whether one or more, referred to as the “Landlord”); ICAgen, Inc., (hereinafter, whether one or more, referred to as the “Tenant”); and Inspire Pharmaceuticals, Inc., (hereinafter, whether one or
more, referred to as the “Subtenant”) do hereby enter into this Consent to Sublease Agreement. 
  
 WITNESSETH: 
  
 WHEREAS, Landlord and Tenant entered into a Lease Agreement dated December 17, 1992, amended August 26, 1996, (hereinafter the “Amendment”), for the leasing of all of that real property and all improvements located
thereon, located at 4222 Emperor Boulevard, Durham, Durham County, North Carolina, being more particularly described in paragraph 1 of the First Amendment of Lease and on Exhibit A attached thereto (hereinafter the “Premises”); and

  
 WHEREAS, Tenant and Subtenant have entered into a Sublease of
the Premises of even date herewith and in the form attached hereto and, by this reference, incorporated herein (hereinafter the “Sublease”); 
  
 NOW, THEREFORE, Landlord does hereby consent to the Sublease in the form attached hereto, contingent and conditioned upon the following terms and
conditions: 
  

	 	1.	Tenant shall not be released in any manner from any of its obligation or duties under the Lease. 

  

	 	2.	Tenant shall pay to Landlord as additional rent all rents received by Tenant from Subtenant in excess of the rent payable by Tenant to Landlord under the Lease.

  

	 	3.	The Sublease shall be subject to all terms and conditions of the Lease and no use and occupancy of the Premises shall be permitted by Tenant or undertaken by Subtenant which is in
any way inconsistent with, or violates, the terms and conditions of the Lease. 

  

	 	4.	Landlord shall not be obligated to Subtenant under any of the provisions of the Sublease. 

  

	 	5.	Subtenant shall indemnify and hold Landlord harmless from and against any and all claims arising out of (a) Subtenant’s use of the Premises or any part thereof; (b) any
activity, work or other thing done, permitted or suffered by Subtenant in or about the Premises, or any part thereof; (c) any breach or default by Subtenant in the performance of any of its obligations under the Sublease; or (d) any act or
negligence of the Subtenant, or any officer, agent, employee, contractor, servant, invitee, or guest of the Subtenant, and in each case from and against any and all damages, losses, liabilities, lawsuits, costs and expenses (including reasonable
attorneys’ fees) arising in connection with any such claim or claims as described in subparagraphs(a) through (d) above, or any action brought thereon. Subtenant assumes all risk of damage or loss to its property or injuries or death to persons
in, on, or about the Premises, from all causes except those for which the law imposes liability on Landlord regardless of any attempted waiver thereof, and Subtenant hereby waives such claims in respect thereof against Landlord. The provisions of
this paragraph shall survive the termination or expiration of the Sublease. 

  

	 	6.	This consent to Sublease Agreement constitutes an agreement as between the undersigned, but nevertheless shall not be deemed to constitute a consent to any future sublease (or any
future assignment) and each and every such proposed future sublease (and any proposed future assignment) shall require the prior written consent of Landlord. 

  

 8 

	 	7.	If Landlord so elects, the expiration or termination of the Lease by the lapse of time or otherwise shall immediately cause the Sublease to be terminated and of no further force or
effect. 

  

	 	8.	If requested by Subtenant, Landlord shall execute a recordable Memorandum of Sublease, prepared at Subtenant’s expense, specifying the exact term of this Sublease and such
other terms as the parties shall mutually determine. 

  
 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed by hand and under seal affixed hereto as of the date first written above. 
  

									
	 [CORPORATE SEAL]
	 	 LANDLORD:
	 	 Imperial Center Ltd. Partnership,
 a North Carolina limited partnership

				
	 	 	 	 	 BY:
	 	 Petula Associates, Ltd.
 an Iowa corporation, its general partner

			
	 ATTEST
	 	 	 	 
	 	 	 	 	 By:
	 	 /s/ Michael S. Duffy

	 	 	 	 	 Title:
	 	 Vice President

			
	 /s/ Ronald B. Franklin

	 	 	 	 
	 Vice President & Secretary
	 	 	 	 
	 	 	 By:
	 	  

	 	 	 Title:
	 	  

		
	 [CORPORATE SEAL]
	 	 TENANT: ICAgen, Inc.

		
	 ATTEST
	 	 
	 	 	 	 	 By:
	 	 /s/ P. Kay Wagoner

	 	 	 	 	 Title:
	 	 President CEO

			
	 /s/ Mary Ann Windon

	 	 	 	 
	 Asst. Secretary
	 	 	 	 
		
	 [CORPORATE SEAL]
	 	 SUBTENANT: Inspire Pharmaceuticals, Inc.

			
	 ATTEST
	 	 	 	 
	  

	 	 	 	 
	                                      
                                        
                       Secretary	 	 	 	 
			
	 	 	 By:
	 	 /s/ David J. Drutz

	 	 	 Title:
	 	  

  

 9 

	 STATE OF Iowa 
	 (Landlord Acknowledgement) 

  
 COUNTY OF Polk 
  
 I, Rachel J. Mischke, a Notary Public in and for said County and State, do certify that Ronald B. Franklin personally came before me this day and
acknowledged that he/she is Vice President & Secretary of Petula Associates, Ltd., a Corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its Vice
President, sealed with its corporate seal, and attested by him/herself as its Vice President & Secretary. 
  
 WITNESS my hand and notarial seal this 19th day of November, 1997. 
  

	
	 /s/ Rachel J. Mischke

	 Notary Public

  
 My Commission Expires:

  
 RACHEL J. MISCHKE 
 MY COMMISSION EXPIRES May 19, 2000 
  
 (NOTARIAL SEAL OR STAMP) 
  

	 STATE OF NC 
	 (Tenant Acknowledgement) 

  
 COUNTY OF DURHAM 
  
 I, W. E. Walker, a Notary Public in and for said County and State, do certify that Mary Ann Windon personally came before me this day and
acknowledged that he/she is                      Secretary of ICAgen, Inc., a Corporation, and that by authority duly given and as the
act of the corporation, the foregoing instrument was signed in its name by its              President, sealed with its corporate seal, and attested by him/herself as its
                     Secretary. 
  
 WITNESS my hand and notarial seal this 20th day of October, 1997. 
  

	
	 /s/ W. E. Walker

	 Notary Public

  
 My Commission Expires:

  
 7/14/02 
  
 (NOTARIAL SEAL OR STAMP) 

 INSPIRE 
 PHARMACEUTICALS, INC. 
  
 February 14, 2000

  
 ICAgen, Inc. 
 4222 Emperor Boulevard, Suite 460 
 Durham, NC 27703 
  
 RE: Extension of Sublease Agreement 
  
 This letter serves as notice that, in accordance with Section 1. Sublease Term of the Sublease Agreement (“Sublease”) between ICAgen, Inc.
(“Sublessor”) and Inspire Pharmaceuticals, Inc. (“Sublessee”) dated September 22, 1997, Inspire Pharmaceuticals, Inc. wishes to extend the Sublease for one (1) additional term of three (3) years. 
  
 Please contact our Director of Finance, Roger Francis, should you have any questions or need
additional information. 
  
 Best Regards, 
  
  

	
	 /s/ Christy L. Shaffer

	Christy L. Shaffer
	President and CEO

  
 4222 Emperor Boulevard,
Suite 470  •  Durham, North Carolina 27703 
 Telephone 919.941.9777  •  Fax 919.941.9797

 ICAgen Inc. 

	 Ion Channel Advances 
	 P. O. Box 14487  •  Research Triangle Park, NC 27709 

  
 Tuesday, March 14, 2000 
  
 Ms. Christy L. Shaffer 
 President and CEO 
 Inspire Pharmaceuticals, Inc. 
 4222 Emperor Boulevard, Suite 470 
 Durham, NC 27703 
  
 RE: Sublessors’ Notice 
  
 This letter will serve as notice for the change in the sublease rent for the sublease for Suite 500, in accordance with the Sublease Agreement (“Sublease”)
between ICAgen, Inc. (“Sublessor”) and Inspire Pharmaceuticals, Inc. (“Sublessee”) dated September 22, 1997. 
  
 The base rent as proposed by the Sublessor’s Landlord are as follows: 
  

	 	1.	For the twelve months beginning August 1, 2000 and ending July 31, 2001: $22,059.60 ($1,838.30 per month) 

  

	 	2.	For the twelve months beginning August 1, 2001 and ending July 31, 2002: $22,721.39 ($1,893.45 per month) 

  

	 	3.	For the twelve months beginning August 1, 2002 and ending July 31, 2003: $23,403.03 ($1,950.25 per month) 

  
 In addition we propose to keep the CAM charges the same at $398.02 and the management fee of $1,000 per year, due on each anniversary date.

  
 Please let me know if you have any questions. 
  
 Sincerely, 
  

	
	 /s/ Robert J. Jakobs

	 Robert J. Jakobs

	 Director of Finance

  
  
 4222 Emperor Boulevard, Suite 460  •  Durham, NC 27703 
 Phone:
919-941-5206  •  Fax: 919-941-0813 

 SECOND AMENDMENT TO SUBLEASE AND CONSENT 
  
 THIS SECOND AMENDMENT TO SUBLEASE (the “Agreement”) is dated as of
August 13, 2003, by and among ICAgen, Inc. (the “Sublessor”), Inspire Pharmaceuticals, Inc. (the “Sublessee”) and Imperial Center Partnership and Petula Associates, Ltd. as tenants in common, operating as a joint venture
(“Landlord”). 
  
 WITNESSETH: 
  
 WHEREAS, Sublessor and Sublessee entered into that certain Sublease
Agreement dated as of September 22, 1997 (the “Sublease”), pursuant to which Sublessee leased from Sublessor approximately 2,372 square feet located at 4222 Emperor Boulevard, Suite 500, Durham County, Durham, North Carolina 27713 (the
“Premises”). (Terms used and not otherwise defined herein shall have the meaning ascribed to them in the Sublease); and 
  
 WHEREAS, by letter dated March 14, 2000 Sublessor and Sublessee extended the term of the Sublease to July 31, 2003; and 
  
 WHEREAS, Sublessor and Sublessee desire to amend the Sublease by extending
the term of the Sublease and adjusting the rent; and 
  
 WHEREAS,
Landlord, Sublessor and Sublessee entered into that certain Consent to Sublease dated November 21, 1997, pursuant to which the Landlord consented to the Sublease; and 
  
 WHEREAS, Landlord desires to consent to the extension of the term and this Agreement. 
  
 NOW, THEREFORE, in consideration of the premises, which are incorporated
herein by reference, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Sublessor and Sublessee hereby agree as follows: 
  

	 	1.	Extension of Term. The term of the Sublease shall terminate on August 31, 2005. 

  

	 	2.	Adjustment of Rent. Base Rent for the period commencing September 1, 2003 and ending on August 31, 2004 shall be $1950.97 per month. Base Rent for the period commencing
September 1, 2004 and ending on August 31, 2005 shall be $2010.27 per month. 

  

	 	3.	Management Fee. On each of September 1, 2003 and September 1, 2004, Sublessee shall pay to Sublessor a management fee equal to $1,000.00. Section 9 of the Sublease is hereby
deleted in its entirety. 

  

	 	4.	Consent of Landlord. Landlord hereby consents to the extension of the term and this Agreement. 

	 	5.	No Other Changes. Except as set forth above, the original terms and conditions of the Sublease shall remain in full force and effect. 

  

	 	6.	Binding Agreement. This Agreement shall be binding upon the parties, their representatives, successors and assigns. 

  

	 	7.	Governing Law. This Agreement shall be governed by North Carolina law. 

  

IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their duly authorized representatives as of the day and year first
written. 
  

			
	 SUBLESSOR:
	 	 ICAGEN, INC. [SEAL]

	 	 	 a Delaware corporation

		
	 	 	 By: /s/ P. Kay Wagoner

	 	 	 Name: P. Kay Wagoner

	 	 	 Its: CEO

		
	 SUBLESSEE:
	 	 INSPIRE PHARAMCEUTICALS, INC. 
 [SEAL]

	 	 	 a Delaware corporation

		
	 	 	 By: /s/ M. Bennett

	 	 	 Name: Mary Bennett Sr. VP Operations &

	 	 	 Its: /s/ MB

		
	 LANDLORD:        
	 	 IMPERIAL CENTER PARTNERSHIP
 AND PETULA ASSOCIATES, LTD.,
 tenants in common, operating as a joint
 venture

	 	 	 [SEAL]

		
	 	 	 By:

	 	 	 Name:

	 	 	 Its:

  

 2MASTER LOAN AND SECURITY AGREEMENT

 EXHIBIT 10.13 
  
 MASTER LOAN AND SECURITY AGREEMENT 
  

	 No. 7688 
	 Dated July 14, 1999 

  

			
	 LENDER:
	  	CUSTOMER:
	 OXFORD VENTURE FINANCE, LLC
 a Virginia limited liability corporation
	  	 ICAGEN, INC.
 a Delaware corporation

		
	 Address:
	  	Address:
	 133 North Fairfax Street
 Alexandria, Virginia 22314
	  	 4222 Emperor Blvd
 Durham, NC 27703

  
 In consideration of
each Loan Agreement, Customer hereby agrees with Lender that, whenever Customer shall be at any time or times directly or contingently indebted, liable or obligated to Lender in any manner whatsoever, Lender shall have the following rights:

  
 1. DEFINITIONS. To the extent not otherwise specifically
defined in this Agreement, unless the context otherwise requires, all other terms contained in this Agreement shall have the meanings assigned or referred to them in the UCC. The following terms shall have the following meanings: 
  
 “Acceptance Date” with respect to each item of Equipment shall
have the meaning assigned to such term in Section 3 of this Agreement. 
  
 “Affiliate” shall mean, with respect to any person, firm or entity, any other person, firm or entity controlling, controlled by, or under common control with such person, firm or entity; for the purposes hereof “control”
shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of any such person, firm or entity, whether through the legal or beneficial ownership of voting securities, by contract
or otherwise. 
  
 “Agreement” shall mean this Master
Loan and Security Agreement, as amended or modified from time to time. 
  
 “Attorneys’ Fees and Expenses” shall mean all reasonable attorneys’ fees and legal costs and expenses (including, without limitation, those fees, costs and expenses incurred in connection with bankruptcy proceedings,
including Relief from Stay Motions, Cash Collateral Motions and disputes concerning any proposed disclosure statement and/or bankruptcy plan). 
  
 “Collateral” shall mean all Equipment and any licenses, trademarks or other tangible or intangible property ancillary to the Equipment and all
products, proceeds, rents and profits therefrom or thereof including proceeds in the form of goods, accounts, chattel paper, documents, instruments and insurance proceeds. 
  
 “Default” shall have the meaning ascribed to such term in Section 8 of this Agreement. 
  
 “Equipment” shall mean one or more items or units of personal
property now owned or hereafter acquired by Customer, as described in each Equipment Schedule, wherever the same may be located, including all present and future additions, attachments, accessions and accessories thereto and all replacements,
substitutions and a right to use license for any software related to any of the foregoing and proceeds thereof, including all proceeds of insurance thereon. 
  
 “Equipment Schedule” shall mean each Equipment Schedule, which incorporates by reference the terms and conditions of this Agreement and
describes one or more items of Equipment and specific terms and conditions with respect thereto. 
  
 “Event of Default” shall have the meaning ascribed to such term in Section 8 of this Agreement. 
  
 “Loan Agreement” shall mean the applicable Equipment Schedule
incorporating the terms and conditions of this Agreement, including all exhibits, addenda, schedules, certificates, riders and all other documents and instruments executed and delivered in connection with the applicable Equipment Schedule or this
Master Loan and Security Agreement. 
  

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 “Note” shall mean a promissory note of Customer in favor of Lender evidencing Customer’s
obligations to Lender with respect to Loan Agreement. 
  
 “Obligations” shall mean all liabilities, absolute or contingent, joint, several or independent, of Customer or any Affiliate of Customer now or hereafter existing, due or to become due to, or held or to be held by, Lender for its
own account or as agent for another or others, whether credited directly or acquired by assignment or otherwise and howsoever evidenced, including, without limitation, the Loan Agreement, and all interest, taxes, fees, charges, expenses and
Attorneys’ Fees and Expenses chargeable to Customer or incurred by Lender under the Loan Agreement, or any other document or instrument delivered in connection herewith. 
  
 “Person” shall mean any individual, partnership, joint venture, firm, corporation, association, trust, or other
enterprise or any government or political subdivision or any agency, department or instrumentality thereof. 
  
 “Security Deposit” with respect to each item of Equipment shall have the meaning assigned to such term in the Equipment Schedule applicable to
such item of Equipment. 
  
 “UCC “ shall mean the
Uniform Commercial Code as enacted in the State of Connecticut. 
  
 2. INDEPENDENT LOAN; CROSS-COLLATERALIZATION; SECURITY INTEREST. Each Equipment Schedule shall constitute a separate, distinct and independent Loan Agreement and contractual obligation of Customer. As security for the due and punctual
payment of any and all of the present and future Obligations of Customer to Lender, Customer hereby (i) grants to Lender with respect to each Loan Agreement and for the full amount of all Obligations, a security interest in all of the Collateral and
all collateral securing any other lease or security agreement between Customer and Lender, whether now in existence or hereafter entered into and (ii) assigns to Lender all of its rights, title and interest in surplus money to which Customer may be
entitled upon the sale of all such Collateral provided that such assignment shall not apply to proceeds received by Customer once the obligations have been paid in full. The extent to which Lender’s security interest in any item of Collateral
shall be entitled to purchase money priority shall be determined by reference to the unpaid principal balance of any Note evidencing the financing of the purchase price of such item of Equipment. 
  
 3. ACCEPTANCE OF EQUIPMENT. The Equipment is to be delivered and installed at
the location specified or referred to in the applicable Equipment Schedule. The Equipment shall be deemed to have been accepted by Customer for all purposes under this Agreement upon Customer’s execution of an Equipment Schedule (the
“Acceptance Date”) without limiting Customer’s ability to pursue any rights it may have against any vender or supplier of the Equipment. Customer shall not be liable or responsible for any failure or delay in the delivery of the
Equipment to Customer for whatever reason. 
  
 4. TERM; PRINCIPAL
AND INTEREST; NO PREPAYMENT; LATE CHARGES. The term for any Loan Agreement shall be as specified in the applicable Equipment Schedule. No Loan Agreement is prepayable by Customer, in whole or in part, without the express written consent of Lender in
its sole discretion. Principal and interest payments shall be in the amounts and shall be due and payable as set forth in the applicable Equipment Schedule. If any payment of principal or interest or other amount payable hereunder shall not be paid
within 10 days of the date when due, Customer shall pay as an administrative and late charge an amount equal to 5% of the amount of any such overdue payment. In addition, Customer shall pay overdue interest on any delinquent payment or other amounts
due under any Loan Agreement (by reason of acceleration or otherwise) from the due date until paid at the rate of one and one-half percent (1.5%) per month or the maximum amount permitted by applicable law, whichever is lower. All payments to be
made to Lender shall be made to Lender in immediately available funds at the address shown above, or at such other place as Lender shall specify in writing. 
  
 5. REPRESENTATIONS, WARRANTIES AND COVENANTS. Customer hereby represents and warrants to and covenants with Lender that, as of the date hereof and for so
long as any Obligations shall remain outstanding: 
  
 (a)
Customer is duly organized and is existing in good standing under the laws of its jurisdiction of organization and is duly qualified and in good standing in those jurisdictions where the conduct of its business or the ownership of its properties
requires qualification; 
  
 (b) Customer has the power and
authority to own the Collateral, to enter into and perform this Agreement and any other document or instrument delivered in connection herewith and to incur the Obligations; 
  
 (c) Customer’s chief executive office is located at the address set forth above; 
  

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 (d) Customer does not utilize, and has not in the last five years utilized, any trade names in the
conduct of its business except as set forth on Schedule 1 hereto; 
  
 (e) Customer has not changed its name, been the surviving entity in a merger, acquired any business or changed the location of its chief executive office within the previous five years, except as set forth on Schedule 2 hereto; 

 
 (f) Neither the execution, delivery or performance by Customer of the Loan
Agreement nor compliance by it with the terms and provisions hereof, nor the consummation of the transactions contemplated herein, (i) will contravene any applicable provision of any law, statute, rule or regulation, or any order, writ, injunction
or decree of any court or governmental instrumentality, (ii) will conflict or be inconsistent with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in any lien upon any
property, pursuant to the terms of any indenture, mortgage, deed of trust, loan agreement or any other material agreement or instrument to which Customer is a party or by which it or any of its property or assets are bound or to which it may be
subject or (iii) will violate any provision of its Certificate of Incorporation or By-Laws, or other governance documents; 
  
 (g) The Loan Agreement, the Note and any document or instrument delivered in connection herewith and the transactions contemplated hereby or thereby are
duly authorized, executed and delivered, and the Loan Agreement, the Note and such other documents and instruments constitute valid and legally binding obligations of Customer and are enforceable against Customer in accordance with their respective
terms; 
  
 (h) Other than filings required by the UCC, No order,
consent, approval, license, authorization, or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or any subdivision thereof, is required to authorize or required in connection with
(i) the grant by Customer of the security interest in connection with the Loan Agreement, (ii) the execution, delivery and performance of the Loan Agreement, (iii) the legality, validity, binding effect or enforceability of the Loan Agreement or
(iv) the perfection or maintenance of the aforementioned lien and security interest; 
  
 (i) Customer has filed all federal, state and local tax returns and other reports it is required to file (and which, if not filed, would have a material adverse effect on the Customer) and, has paid or made adequate
provision for payment of all such taxes, assessments and other governmental charges, and shall pay or deposit promptly when due all sales, use, excise, personal property, income, withholding, corporate, franchise and other taxes, assessments and
governmental charges upon or relating to the manufacture, purchase, ownership, maintenance, modification, delivery, installation, possession, condition, use, acceptance, rejection, operation or return of the Equipment and, upon request by Lender,
Customer will submit to Lender proof satisfactory to Lender that such payments and/or deposits have been made; 
  
 (j) There are no pending or, to the best knowledge of the Customer upon due inquiry, threatened actions or proceedings before any court or administrative
agency, an unfavorable resolution of which could have a material adverse effect on Customer’s financial condition or operations; 
  
 (k) No representation, warranty or statement by Customer contained in the Loan Agreement or in any certificate or other document furnished or to be
furnished by Customer pursuant to the Loan Agreement contains or at the time of delivery shall contain any untrue statement of material fact, or omits, or shall omit at the time of delivery, to state a material fact necessary to make it not
misleading; 
  
 (l) All financial statements delivered and to be
delivered by Customer to Lender in connection with the execution and delivery of the Loan Agreement presented fairly in all material respects the assets, liabilities and financial condition of Customer as of the date of such financial statements,
and have been prepared in accordance with generally accepted accounting principles, and at all times since the date of the most recent financial statements, there has been no material change in Customer’s financial affairs or business
operations. Customer shall furnish Lender: (i) within 120 days after the last day of each fiscal year of Customer, a financial statement including a balance sheet, income statement, statement of retained earnings and statement of cash flows, each
prepared in accordance with generally accepted accounting principles consistently applied with a report signed by an independent certified public accountant satisfactory to Lender; (ii) upon the request of Lender, within 45 days after the close of
each quarter of each fiscal year of Customer, financial statements similar to those described in the immediately preceding clause, prepared by Customer and certified by the chief financial officer of Customer; (iii) promptly upon the request of
Lender, such tax returns or financial statements regarding any guarantor of the Obligations or any Affiliate of Customer as Lender may reasonably request from time to time; (iv) promptly upon request of Lender, in form satisfactory to Lender, such
other and additional information as Lender may reasonably request from time to time, and; (v) promptly inform Lender of any Defaults (defined below) or any events or changes in the financial condition of Customer occurring since the date of the last
financial statements of Customer delivered to Lender which, individually or cumulatively, when viewed in light of prior financial statements, may result in a material adverse change in the financial condition of Customer; 
  

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 (m) Customer shall permit Lender, at Lender’s expense and with reasonable advanced notice, through
its authorized attorneys, accountants and representatives, to inspect and examine the Equipment and the books, accounts, records, ledgers and assets of every kind and description of Customer with respect thereto at all reasonable times; provided,
however, that the failure of Lender to inspect the Equipment or to inform Customer of any noncompliance shall not relieve Customer of any of its Obligations hereunder; 
  
 (n) Other than liens and security interests granted to the Lender and liens for taxes not yet due and payable, Customer is
the owner of the Equipment free and clear of all rights, title, security interests, encumbrances or liens of any other party, will defend the Equipment against all claims and demands of all persons at any time claiming any interest therein and shall
deliver to Lender any and all evidence of ownership of, and certificates of title to, any and all of the Equipment; 
  
 (o) The Equipment is personal property and not a fixture under the law of the jurisdiction in which the Equipment is located even though the Equipment may
hereafter become attached or affixed to real property; 
  
 (p)
Each site where Equipment is located, if not owned by Customer, is leased by Customer pursuant to a valid lease or rental agreement which permits the possession, use and operation of the Equipment at such location; 
  
 (q) Customer shall provide Lender with disclaimers and waivers from
landlords, mortgagees and other persons holding any interest or claim in and to any premises where Equipment is located, acceptable in all respects to Lender, which may be necessary or advisable in the reasonable discretion of Lender to confirm that
the first priority security interest and rights of Lender in the Equipment are and will remain valid and superior against all other parties; 
  
 (r) The Equipment is in the possession of Customer at the location(s) specified in the applicable Equipment Schedule, and shall not be removed from such
location without the prior written consent of Lender, which consent shall in any event be conditioned upon Customer having completed all notifications, filings, recordings, and other actions in such new location as Lender may require to protect and
perfect Lender’s interests in the Collateral; 
  
 (s)
Customer shall not, without the prior written consent of Lender, sell, offer to sell, lease, rent, hire or in any other manner dispose, transfer or surrender use and possession of any Equipment; 
  
 (t) Customer will not, directly or indirectly, create, incur or permit to
exist any lien, encumbrance, mortgage, pledge, attachment or security interest on or with respect to the Equipment other than in connection with the execution and delivery of the Loan Agreement and liens for taxes not yet due and payable;

  
 (u) Customer shall permit each item of Equipment to be used
only within the continental United States by qualified personnel solely for business purposes and the purpose for which it was designed and, at its sole expense, shall service, repair, overhaul and maintain each item of Equipment in the same
condition as when received, ordinary wear and tear excepted, in good operating order, consistent with prudent industry practice (but, in no event less than the same extent to which Customer maintains other similar equipment in the prudent management
of its assets and properties) and in material compliance with all applicable laws, ordinances, regulations, and conditions of all insurance policies required to be maintained by Customer under the Loan Agreement and all manuals, orders,
recommendations, instructions and other written requirements as to the repair and maintenance of such item of Equipment issued at any time by the vendor and/or manufacturer thereof; 
  
 (v) If any item of Equipment does not comply with the requirements of the Loan Agreement, Customer shall bring such
Equipment into compliance with the provisions hereof; and Customer shall not use any Equipment, nor allow the same to be used, for any unlawful purpose; 
  
 (w) Customer acknowledges that Lender has not selected, manufactured or supplied the Equipment to Customer and has acquired any Equipment subject hereto
solely in connection with this Loan Agreement and Customer has received and approved the terms of any purchase order or agreement with respect to the Equipment; and 
  
 (x) Customer has all permits, licenses and other authorizations which are required with respect to its business under
Environmental Laws (as defined below) and is in material compliance with all terms and conditions of such permits, licenses and other authorizations, including all limitations, restrictions, standards, prohibitions, requirements, obligations,
schedules and timetables. The Customer is not presently in violation of any Environmental Laws. “Environmental Laws” shall mean any Federal, state or local law relating to releases or threatened releases of Hazardous 
  

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 Substances; the manufacture handling, transport, use, treatment, storage or disposal of Hazardous Substances or materials
containing Hazardous Substances; or otherwise relating to pollution of the environment or the protection of human health. “Hazardous Substances” shall mean substances or materials which contain substances defined in or regulated as toxic
or hazardous materials, chemicals, substances, waste or pollutants under any present or future Federal statutes and their state counterparts, as well as any implementing regulations as amended from time to time and as interpreted by administering
agencies. 
  
 6. DISCLAIMER OF WARRANTIES; LIMITATION OF REMEDY;
LIMITATION OF LIABILITY. Customer has selected both the Equipment and the supplier (identified in the Equipment Schedule, herein (“Supplier”)) from whom Customer agrees to purchase the Equipment. CUSTOMER ACKNOWLEDGES THAT LENDER HAS NO
SPECIAL FAMILIARITY OR EXPERTISE WITH RESPECT TO THE EQUIPMENT. CUSTOMER AGREES THAT THE EQUIPMENT IS “AS IS” AND IS OF A SIZE, DESIGN AND CAPACITY SELECTED BY CUSTOMER AND THAT CUSTOMER IS SATISFIED THAT THE SAME IS SUITABLE FOR
CUSTOMER’S PURPOSES, AND THAT EXCEPT AS MAY OTHERWISE BE SPECIFICALLY PROVIDED HEREIN OR IN THE EQUIPMENT SCHEDULE, LENDER HAS MADE NO REPRESENTATION OR WARRANTY AS TO ANY MATTER WHATSOEVER. LENDER DISCLAIMS, AND CUSTOMER HEREBY EXPRESSLY
WAIVES AS TO LENDER, ALL WARRANTIES WITH RESPECT TO THE EQUIPMENT INCLUDING BUT NOT LIMITED TO ALL EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, QUALITY, CAPACITY, OR WORKMANSHIP, ALL EXPRESS OR IMPLIED
WARRANTIES AGAINST PATENT INFRINGEMENTS OR DEFECTS, WHETHER HIDDEN OR APPARENT, AND ALL EXPRESS OR IMPLIED WARRANTIES WITH RESPECT TO COMPLIANCE OF THE EQUIPMENT WITH THE REQUIREMENTS OF ANY LAW, REGULATION, SPECIFICATION OR CONTRACT RELATIVE
THERETO. IN NO EVENT SHALL LENDER BE LIABLE (INCLUDING WITHOUT LIMITATION, UNDER ANY THEORY IN TORTS) FOR ANY LOSS OF USE, REVENUE, ANTICIPATED PROFITS OR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH
THE LOAN OR THE USE, PERFORMANCE OR MAINTENANCE OF THE EQUIPMENT. If the Equipment is not properly installed, does not operate as represented or warranted by the Supplier, manufacturer and/or service company or is unsatisfactory for any reason,
Customer shall make any claim on account thereof solely against the Supplier, manufacturer and/or service company and shall, nevertheless, pay Lender all amounts payable under the Loan Agreement and any such claims shall not act as a defense,
counterclaim, deduction, setoff or otherwise limit Customer’s Obligations under the Loan Agreement. 
  
 7. RISK OF LOSS AND DAMAGE; INSURANCE. Customer assumes all risk of loss, damage or destruction to the Equipment from whatever cause and for whatever
reason. If all or a portion of an item of Equipment shall become lost, stolen, destroyed, damaged beyond repair or rendered permanently unfit for use for any reason, or in the event of any condemnation, confiscation, theft or seizure or requisition
of title to or use of such item of Equipment, Customer shall immediately pay to Lender an amount equal to the outstanding principal balance of and accrued and unpaid interest on any Note with respect to such Equipment, less the net amount of the
recovery, if any, received by Lender from insurance on the Equipment. For so long as any Obligations shall remain outstanding, Customer shall procure and maintain insurance in such amounts and with such coverages, and upon such terms and with such
companies, as Lender may approve, at Customer’s expense; provided, however, that in no event shall such insurance be less than the following coverages and amounts: (a) Worker’s Compensation and Employer’s Liability Insurance, in the
full statutory amounts provided by law; (b) Comprehensive General Liability Insurance including product/completed operations and contractual liability coverage, with minimum limits on a per occurrence basis, as reasonably required by Lender, and
Combined Single Limit Bodily Injury and Property Damage on an aggregate basis, as reasonably required by Lender or, in either case, as otherwise specified in any Equipment Schedule hereto; and (c) All Risk Physical Damage Insurance, including
earthquake and flood, on each item of Equipment, in an amount not less than the greater of (i) the outstanding principal balance owing under any Note with respect to such Equipment; or (ii) its full replacement value. Customer shall cause Lender to
be included as an additional insured on each such Comprehensive General Liability Insurance policy. On each such All Risk Physical Damage Insurance policy Lender shall be named as loss payee. Such policies shall be endorsed to provide that the
coverage afforded to Lender shall not be rescinded, impaired or invalidated by any act or neglect of Customer. Customer agrees to waive Customer’s rights and its insurance carrier’s rights of subrogation against Lender for any and all loss
or damage. In addition to the foregoing minimum insurance coverage, Customer shall procure and maintain such other insurance coverage as Lender may reasonably require. All policies shall be endorsed or contain a clause requiring the insurer to
furnish Lender with at least 30 days prior written notice of any material change, cancellation or non-renewal of coverage. Upon execution of this Agreement, and thereafter, 30 days prior to the expiration of each insurance policy required hereunder,
Customer shall furnish Lender with a certificate of insurance or other evidence satisfactory to Lender that the insurance coverages required under such policy are and will continue in effect, provided, however, that Lender shall be under no duty
either to ascertain the existence of or to examine such insurance coverage or to advise Customer in the event such insurance coverage should not comply with the requirements hereof. If Customer shall at any time or times hereafter fail to obtain
and/or maintain any of the policies of insurance required herein, or 
  

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 fail to pay any premium in whole or in part relating to any such policies, Lender may, but shall not be obligated to,
obtain, and or cause to be maintained, insurance coverage with respect to the Collateral, including, at Lender’s option, the coverage provided by all or any of the policies of Customer and pay all or any part of the premium therefor, without
waiving any Event of` Default by Customer, and any sums so disbursed by Lender shall be additional Obligations of Customer to Lender payable on demand upon an event of default. Lender shall have the right to settle and compromise any and all claims
under any of the All Risk Physical Damage policies required to be maintained by Customer hereunder and Customer hereby appoints Lender as its attorney-in-fact, with power to demand, receive and receipt for all monies payable thereunder, to execute
in the name of Customer or Lender or both any proof of loss, notice, draft or other instruments in connection with such policies or any loss thereunder and generally to do and perform any and all acts as Customer, but for this appointment, might or
could perform. 
  
 8. EVENTS OF DEFAULT. An “Event of
Default” under this Agreement shall be deemed to have occurred upon the occurrence or existence of any one or more of the following events or conditions (each a “Default”) and after the giving of any required notice or the passage of
any required period of time (or both) specified below with respect to such Default: (a) Customer shall fail to make any payment due under any Note or as required under the Loan Agreement within 10 days of its due date; or (b) Customer shall fail to
obtain or maintain any of the insurance required under the Loan Agreement; or (c) Customer shall remove, sell, transfer, encumber, or part with possession of any Equipment; (d) Customer shall fail to perform or observe any other covenant, condition
or agreement under the Loan Agreement and such failure shall continue for 30 days after written notice thereof to Customer; or (e) Customer or any of its Affiliates shall default in the payment or performance of any Obligation owing to Lender, and
such default shall continue for 30 days after written notice thereof to Customer; or (f) any representation or warranty made by Customer herein or in any certificate, agreement, statement or document heretofore or hereafter furnished Lender,
including without limitation any financial information disclosed to Lender, shall prove to be false or incorrect in any material respect; or (g) the commencement of any bankruptcy, insolvency, arrangement, reorganization, receivership, liquidation
or other similar proceeding by or against Customer or any of its properties or businesses, or the appointment of a trustee, receiver, liquidator or custodian for Customer or any of its properties or businesses, or if Customer suffers the entry of an
order for relief under Title 11 of the United States Code; or (h) the making by Customer of general assignment or deed of trust for the benefit of creditors; or (i) Customer shall default in any payment or other material obligation to any other
lender and such lender has accelerated the debt in accordance with its terms provided such obligation is in excess of $50,000; or (j) Customer shall merge with or consolidate into any other entity or sell all or substantially all of its assets or in
any manner terminate its existence unless Customer is the surviving entity or Customer’s Shareholders, as of the date of this agreement, constitutes a majority of the Shareholders of the new entity provided, however, the new entity has a
financial standing equal to or greater than the original entity; or (k) if Customer is a privately held corporation, more than 50% of Customer’s voting capital stock, or effective control of Customer’s voting capital stock, issued and
outstanding from time to time, is not retained by the holders of such stock on the date the Loan Agreement is executed; or (l) Lender shall reasonably determine that there has been a material adverse change in the financial condition or business
operations of Customer since the date of the execution of the Loan Agreement, or that Customer’s ability to perform its obligations is materially impaired; or (m) if Customer leases the premises where any Equipment is located, a breach by
Customer of any such lease and the commencement of an action by the landlord to evict Customer or to repossess the premises. Customer shall promptly notify Lender of the occurrence of any Event of Default or the occurrence or existence of any event
or condition which, upon the giving of notice or lapse of time, or both, would constitute an Event of Default. 
  
 9. RIGHTS AND REMEDIES; ACCELERATION. (a) Upon the occurrence of an Event of Default, Lender shall have all of the rights and remedies enumerated herein
(all of which are cumulative and not exclusive of any other right or remedy available to Lender) and Lender may, at its sole option and discretion, exercise one or more of the following remedies with respect to any or all of the Collateral: (i) by
written notice to Customer, terminate any or all Loan Agreements as such notice shall specify, and, with respect to such terminated Loan Agreements, declare immediately due and payable and recover from Customer, as liquidated damages for loss of
Lender’s bargain and not as a penalty, an amount equal to the aggregate of all unpaid periodic installment payments and other sums due under Loan Agreements to the date of default plus the charges set forth in Section 4 hereof, if any, plus an
amount equal to the outstanding principal balances of and accrued and unpaid interest on any of the Notes with respect to the Loan Agreements, (ii) Lender may declare, at its option, all or any part of the Obligations immediately due and payable,
without demand, notice of intention to accelerate, notice of acceleration, notice of nonpayment, presentment, protest, notice of dishonor, or any other notice whatsoever, all of which are hereby waived by Customer and any endorser, guarantor, surety
or other party liable in any capacity for any of the Obligations; (iii) cause Customer to promptly ship, with insurance and freight prepaid by Customer, any or all Equipment to such location as Lender may designate, or Lender, at its option, may
enter upon the premises where the Equipment is located and take immediate possession of and remove the same by summary proceedings or otherwise, all without liability to Lender for or by reason of damage to property or such entry or taking
possession except for Lender’s gross negligence or willful misconduct; (iv) sell any or all Collateral at public or private sale or otherwise dispose of, hold, use, operate, lease to others or keep idle the Equipment, all as Lender in its sole
discretion may determine and all free and clear of any rights of Customer; (v) remedy such default, including making repairs or modifications to the Equipment, for the account and expense of Customer and Customer agrees to 
  

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 reimburse Lender for all of Lender’s costs and expenses; (vi) apply any Security Deposit or other cash collateral or
sale or remarketing proceeds of the Equipment at any time to reduce any amounts due to Lender, or (vii) exercise any other right or remedy which may be available to Lender under applicable law, or proceed by appropriate court action to enforce the
terms hereof or to recover damages for the breach hereof, including Attorneys’ Fees and Expenses. Any notice required to be given by Lender of a sale or other disposition or other intended action which is made in accordance with the terms of
the Loan Agreement at least seven (14) days prior to such proposed action, shall constitute fair and reasonable notice to Customer of any such action. Lender shall be liable to Customer only for its gross negligence or willful misconduct in failing
to comply with any applicable law imposing duties upon Lender; Lender’s liability for any such failure shall be limited to the actual loss suffered by Customer directly resulting from such failure, and in no event shall Lender have any
liability to Customer for incidental, consequential, punitive or exemplary damages. No remedy referred to in this Section 9 shall be exclusive, but each shall be cumulative and in addition to any other remedy referred to above or otherwise available
to Lender at law or in equity. 
  
 (b) The exercise or pursuit by
Lender of any one or more of such remedies shall not preclude the simultaneous or later exercise or pursuit by Lender of any or all such other remedies, and all remedies hereunder shall survive termination of the Loan Agreement. In the event Lender
takes possession and disposes of the Collateral, the proceeds of any such disposition shall be applied in the following order: (1) to all of Lender’s costs, charges and expenses incurred in taking, removing, holding, repairing and selling or
leasing the Equipment; (2) to pay the Lender the remaining amount of any Obligations owed to Lender and (3) the balance, if any, to Customer. A termination shall occur only upon written notice by Lender and only with respect to such Equipment as
Lender shall specify in such notice. Termination under this Section 9 shall not affect Customer’s duty to perform Customer’s Obligations under the Loan Agreement in full. Customer agrees to reimburse Lender on demand for any and all costs
and expenses reasonably incurred by Lender in enforcing its rights and remedies hereunder following the occurrence of an Event of Default, including, without limitation, Attorneys’ Fees and Expenses, and the costs of repossession, storage,
insuring, reletting, selling and disposing of any and all Equipment. 
  
 10. INDEMNITY. (a) Customer agrees to indemnify, reimburse and hold Lender and its successors, Affiliates, assigns, officers, directors, employees, agents and servants (hereinafter in this Section 10 referred to individually as
“Indemnitee”, and collectively as “Indemnitees”) harmless from any and all liabilities, obligations, damages, injuries, penalties, claims, demands, actions, suits, judgments and any and all costs, expenses or disbursements,
including Attorneys’ Fees and Expenses of whatsoever kind and nature imposed on, asserted against or incurred by any of the Indemnitees in any way relating to or arising out of the Loan Agreement or any other document executed in connection
herewith or therewith or in any other way connected with the administration of the transactions contemplated hereby or thereby or the enforcement of any of the terms of, or the preservation of any rights under any thereof, or in any way relating to
or arising out of the manufacture, ownership, ordering, purchase, delivery, control, acceptance, lease, financing, possession, operation, condition, sale, return or other disposition, or use of the Equipment (including, without limitation, latent or
other defects, whether or not discoverable), the violation of the laws of any country, state or other governmental body or unit, any tort (including, without limitation, claims arising or imposed under the doctrine of strict liability, or for or on
account of injury to or the death of any Person (including any Indemnitee), or property damage), or contract claim, or any claim based on patent, trademark or copyright infringement or any obligation or liability to the manufacturer or supplier of
the Equipment under any Supply Contracts (referenced in the Equipment Schedule), including purchase orders issued by Customer or Lender or assigned to Lender; provided, however, that no Indemnitee shall be indemnified pursuant to this Section 10 for
losses, damages or liabilities to the extent caused solely by the gross negligence or willful misconduct of such Indemnitee. Customer agrees that upon written notice by any Indemnitee of the assertion of such a liability, obligation, damage, injury,
penalty, claim, demand, action, suit or judgement, Customer shall assume full responsibility for the defense thereof. Each Indemnitee agrees to use its best efforts to promptly notify Customer of any such assertion of which such Indemnitee has
knowledge. 
  
 (b) Without limiting the application of Section
10(a) hereof, Customer agrees to pay, or reimburse Lender for any and all reasonable fees, costs and expenses (including Attorneys’ Fees and Expenses) of whatever kind or nature reasonably incurred in connection with the creation, preservation
or protection of Lender’s liens on, and security interest in, the Collateral, including, without limitation, all fees and taxes in connection with the recording or filing of instruments and documents in public offices, payment or discharge of
any taxes or liens upon or in respect of the Collateral, premiums for insurance with respect to the Collateral and all other fees, costs and expenses in connection with protecting, maintaining or preserving the Collateral and Lender’s interest
therein, whether through judicial proceedings or otherwise, or in defending or prosecuting any actions, suits or proceedings arising out of or relating to the Collateral. 
  
 (c) Customer shall, at its sole cost and expense, protect, defend, indemnify release and hold harmless the Indemnitees from
and against any and all Losses imposed upon or incurred by or asserted against any Indemnitees, and arising out of or in any way relating to any one or more of the following, unless caused solely by the gross negligence or willful misconduct of any
Indemnitee: (i) any presence of any Hazardous Substances in, on, above or under Customer’s leased or owned real property (the “Property”); (ii) any past, present or threatened Release of Hazardous Substances 
  

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 in, on, above, under or from the Property; or (ii) any past or present violation of any Environmental Laws. The term
“Release” of any Hazardous Substance includes, but is not limited to, any release, deposit, discharge, emission, leaking, spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing or other movement
of Hazardous Substances. The term “Losses” includes any and all claims, suits, liabilities (including, without limitation, strict liabilities), actions, proceedings, obligations, debts, damages, losses, costs, expenses, diminutions in
value, fines, penalties, charges, fees, expenses, judgments, awards, amounts paid in settlement, costs of remediating a Hazardous Substance (whether or not performed voluntarily), engineers’ fees, environmental consultants’ fees, and costs
of investigation (including, but not limited to sampling, testing and analysis of soil, water, air, building materials and other materials and substances whether solid, liquid or gas) or punitive damages, of whatever kind or nature (including, but
not limited to Attorneys’ Fees and Expenses). 
  
 (d) Without
limiting the application of Section 10(a) or (b), or (c) hereof, Customer agrees to pay, indemnify and hold each Indemnitee harmless from and against any loss, costs, damages and expenses (including Attorneys’ Fees and Expenses) which such
Indemnitee may suffer, expend or incur in consequence of or growing out of any misrepresentation or omission of a material fact by Customer in the Loan Agreement or in any writing contemplated by or made or delivered pursuant to or in connection
with the Loan Agreement. 
  
 (e) If and to the extent that the
obligations of Customer under this Section 10 are unenforceable for any reason, Customer hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law. 
  
 11. MAINTENANCE; INSPECTION. During the term of the Loan Agreement, Customer
shall, unless Lender shall otherwise consent in writing: (a) maintain conspicuously on any Equipment such labels, plates, decals or other markings as Lender may reasonably require, stating that Lender has a security interest in such Equipment; (b)
furnish to Lender such information concerning the condition, location, use and operation of the Equipment as Lender may reasonably request; (c) permit any person designated by Lender to visit and inspect any Equipment and any records maintained in
connection therewith at all reasonable times, provided, however, that the failure of Lender to inspect the Equipment or to inform Customer of any noncompliance shall not relieve Customer of any of its obligations hereunder; and (d) make no
additions, alterations, modifications or improvements (collectively, “Improvements”) to any item of Equipment that are not readily removable without causing material damage to such item of Equipment or which will cause the value, utility
or useful life of such item of Equipment to materially decline. If any such Improvement is made and cannot be removed without causing material damage or decline in value, utility or useful life (a “Non-Severable Improvement”), then
Customer warrants that such Non-Severable Improvement shall immediately become subject to Lender’s security interest upon being installed and shall be free and clear of all liens and encumbrances, other than Lender’s security interest, and
shall become Equipment subject to all of the terms and conditions of the Loan Agreement. 
  
 12. FURTHER ASSURANCES. Customer shall promptly execute and deliver to Lender such further documents and take such further action as Lender may require in order to more effectively carry out the intent and purpose of
the Loan Agreement. Customer shall execute and deliver to Lender upon Lender’s request any and all schedules, forms and other reports and information as Lender may deem reasonably necessary or appropriate to respond to requirements or
regulations imposed by any governmental authorities or to comply with the provisions of the law of any jurisdiction in which Customer may then be conducting business or in which any of the Equipment may be located. Customer shall execute and deliver
to Lender upon Lender’s request such further and additional documents, instruments and assurances as Lender deems reasonably necessary to acknowledge and confirm, for the benefit of Lender or any assignee or transferee of any of Lender’s
rights, title and interests hereunder in accordance with Section 13 hereof (an “Assignee”), all of the terms and conditions of all or any part of the Loan Agreement and Lender’s or Assignee’s rights with respect thereto, and
Customer’s compliance with all of the terms and provisions thereof 
  
 13. ASSIGNMENT. The provisions of the Loan Agreement shall be binding upon and shall inure to the benefit of the heirs, administrators, successors and assigns of Lender and Customer, provided, however, Customer may not assign any of its
rights, transfer any interest in the Equipment or delegate any of its obligations under the Loan Agreement without the prior written consent of Lender in its sole discretion. Lender may, from time to time, absolutely or as security, without notice
to Customer, sell, assign, transfer, participate, pledge or otherwise dispose of all or any part of a Loan Agreement, the Obligations and/or the Collateral therefor, subject to the rights of Customer under the Loan Agreement for the use and
possession of the Equipment. In such event, each and every immediate and successive Assignee shall have the right to enforce the Loan Agreement with respect to those Obligations and/or Collateral transferred to the Assignee, by legal action or
otherwise, for its own benefit as fully as if such Assignee were herein by name specifically given such rights. Customer agrees that the rights of any such Assignee hereunder or with respect to the related Obligations, shall not be subject to any
defense, set off or counterclaim that Customer may assert or claim against Lender, and that any such Assignee shall have all of Lender’s 
  

 Page 8 

 rights hereunder but none of Lender’s obligations. Lender shall have an unimpaired right to enforce the Loan
Agreement for its benefit with respect to that portion of any Loan Agreement, Obligations and/or Collateral that Lender has not sold, assigned, pledged or otherwise transferred. 
  
 14. GOVERNING LAW; MEDIATION OF THE LOAN AGREEMENT. THE LOAN AGREEMENT AND THE LEGAL RELATIONS OF THE PARTIES HERETO SHALL
IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CONNECTICUT, WITHOUT REGARD TO PRINCIPLES REGARDING THE CHOICE OF LAW. CUSTOMER HEREBY CONSENTS AND SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF
THE STATE OF CONNECTICUT AND THE FEDERAL DISTRICT COURT FOR THE DISTRICT OF CONNECTICUT FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF ITS OBLIGATIONS UNDER THE LOAN AGREEMENT, AND EXPRESSLY WAIVES ANY OBJECTIONS THAT IT MAY
HAVE TO THE VENUE OF SUCH COURTS. CUSTOMER HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THE LOAN AGREEMENT. Any action by Customer against Lender for any cause of action under the Loan Agreement
shall be brought within one year after any such cause of action first arises. If requested by Lender, Customer agrees that prior to the commencement of any litigation regarding the terms and conditions of the Loan Agreement, the parties hereto shall
subject themselves to non-binding mediation with a qualified mediator mutually satisfactory to both parties. 
  
 15. NOTICES. Any demand or notice required or permitted to be given hereunder shall be deemed effective (a) when deposited in the United States mail, and
sent by certified mail, return receipt requested, postage prepaid, addressed to Lender or to Customer at the addresses set forth herein, or to such other address as may be hereafter provided by the party to be notified by written notice complying
with the provisions hereof or (b) when transmitted to Lender or Customer by facsimile at the respective numbers provided for such purpose; provided, that such facsimile notice is promptly followed by notice given in accordance with the immediately
preceding subsection (a). 
  
 16. SECURITY DEPOSIT. Lender may, at
its option, apply the Security Deposit, if any is indicated in an Equipment Schedule, to cure any default of Customer, whereupon Customer shall promptly restore such Security Deposit to its original amount. Lender shall return to Customer any
unapplied Security Deposit, without interest, upon full payment and performance of Customer’s Obligations under the Loan Agreement. 
  
 17. MISCELLANEOUS; GENERAL PROVISIONS. The Loan Agreement will not be binding on Lender until accepted and executed by Lender at its executive office in
South Norwalk, Connecticut. All options, powers and rights granted to Lender hereunder or under any promissory note, guaranty, letter of credit agreement, depository agreement, instrument, document or other writing delivered to Lender shall be
cumulative and shall be in addition to any other options, powers or rights which Lender may now or hereafter have under any applicable law or otherwise. Time is of the essence in the payment and performance of all of Customer’s obligations
under the Loan Agreement. The captions in the Loan Agreement are for convenience only and shall not define or limit any of the terms thereof. 
  
 Any provisions of the Loan Agreement which are unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
unenforceability without invalidating the remaining provisions hereof, and any such unenforceability in any jurisdiction shall not render unenforceable such provisions in any other jurisdiction. To the extent permitted by applicable law, Customer
hereby waives any provisions of law which render any provision of the Loan Agreement unenforceable in any respect. 
  
 CUSTOMER ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS LOAN AGREEMENT IS A PART IS A COMMERCIAL TRANSACTION AND EXCEPT AS OTHERWISE PROVIDED IN THE LOAN
AGREEMENT CUSTOMER HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, NOTICE AND JUDICIAL HEARING IN CONNECTION WITH LENDER’S TAKING POSSESSION OR LENDER’S DISPOSITION OF ANY OF THE COLLATERAL, INCLUDING, WITHOUT LIMITATION, ANY AND
ALL PRIOR NOTICE AND HEARING FOR ANY PREJUDGMENT REMEDY OR REMEDIES AND ANY SUCH RIGHT WHICH CUSTOMER WOULD OTHERWISE HAVE UNDER THE CONSTITUTION OR ANY STATUTE OF THE UNITED STATES OR OF ANY STATE. 
  
 THE LOAN AGREEMENT AND ANY OTHER WRITTEN AGREEMENT(S) BETWEEN THE PARTIES
EXECUTED SIMULTANEOUSLY HEREWITH, REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES CONCERNING THE SUBJECT MATTER HEREOF, AND SUPERSEDE AND MAY NOT BE CONTRADICTED BY ANY PRIOR WRITTEN AGREEMENTS BETWEEN THE PARTIES, INCLUDING, WITHOUT LIMITATION,
PROPOSALS, LETTERS, COMMITMENT LETTERS OR BY ANY PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. CUSTOMER ACKNOWLEDGES AND CERTIFIES 
  

 Page 9 

 original, but all of which together shall constitute but one and the same instrument. Each reference herein to
“Lender” shall be deemed to include its successors and assigns, and each reference to “Customer” and any pronouns referring thereto as used herein shall be construed in the masculine, feminine, neuter, singular or plural as the
context may require, and shall be deemed to include the legal representatives, successors and assigns of Customer, all of whom shall be bound by the provisions hereof. EACH REFERENCE HEREIN TO “CUSTOMER” SHALL MEAN AND INCLUDE ANY AND ALL
CUSTOMERS WHO SIGN BELOW, EACH OF WHOM SHALL BE JOINTLY AND SEVERALLY LIABLE UNDER THIS LOAN AGREEMENT. 
  
 The Loan Agreement and all related documents, including (a) amendments, addenda, consents, waivers and modifications which may be executed
contemporaneously or subsequently herewith, (b) documents received by Lender from the Customer, and (c) financial statements, certificates and other information previously or subsequently furnished to Lender, may be reproduced by Lender by any
photographic, photostatic, microfilm, micro-card, miniature photographic, compact disk reproduction or other similar process and Lender may destroy any original document so reproduced. Customer agrees, herein waives all right to object to the
admissibility of such reproduction and stipulates that any such reproduction shall, to the extent permitted by law, be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original itself is
in existence and whether or not the reproduction was made by Lender in the regular course of business) and that any enlargement, facsimile or further reproduction of the reproduction shall likewise be admissible in evidence. 
  
 18. SURVIVAL. Sections 6, 7, 9, 10, 11, 13, 15, 16 and 17 shall survive and
continue in full force and effect without regard to the payment in full of all Obligations under the Loan Agreement. 
  
 Executed and delivered by duly authorized representatives of the parties hereto as of the date set forth below. 
  

							
	 LENDER:
	 	 CUSTOMER:

		
	 OXFORD VENTURE FINANCE, LLC
	 	 ICAGEN, INC.

				
	 By:
	 	 /s/ J. Alden Philbrick, IV

	 	 By:
	 	 /s/ P. Kay Wagoner

	 Name:
	 	 J. Alden Philbrick, IV
	 	 Name:
	 	 P. Kay Wagoner

	 Title:
	 	 President
	 	 Title:
	 	 President and CEO

	 Date:
	 	 7/16/99
	 	 Date:
	 	 7/15/99

  

 Page 10 

 SCHEDULE 1 
  

Trade Names 
  

 Page 11 

 SCHEDULE 2 
  

Name Changes; Changes in Chief Executive Office 
  

 Page 12 

 OXFORD 
 VENTURE FINANCE 
  
 December 20, 2001 
  
 Mr. Robert J. Jakobs

 Controller 
 ICAgen, Inc. 
 4222 Emperor Boulevard 
 Suite 460 
 Durham, NC 27703 
  
 Dear Bob: 
  
 Oxford Venture
Finance is pleased to provide the following loan proposal to ICAgen, Inc. for laboratory and other internal use equipment, subject to terms and conditions embodied in formal loan agreements which shall include but not be limited to the following
terms and conditions: 
  

			
	 Borrower:
	  	ICAgen, Inc.
		
	 Lender:
	  	Oxford Venture Finance, LLC, or its assigns.
		
	 Equipment:
	  	Laboratory and computer equipment for the internal use of Borrower as summarized in Attachment A (“Equipment”). Equipment must be acceptable to Lender.
		
	 Total Loan Amount:
	  	$1,250,000
		
	 Funding Dates:
	  	December 2001 through December 2002
		
	 Term:
	  	Each Schedule shall have a fixed term of 48 months for laboratory equipment, and 36 months for computers and soft costs.
		
	 Loan Payment Rate:
	  	2.6010% of the Loan Amount per month for 48 months; 3.2825% of the Loan Amount per month for 36 months.
		
	 Periodicity:
	  	Monthly, in advance.
		
	 Index Basis:
	  	The four-year Treasury Bill Weekly Average at a rate of 3.615% for 48 month term and three-year Treasury Bill Weekly Average at a rate of 3.26% for 36 month term as published in Federal
Reserve statistical release H.15 (519) on November 19, 2001.
		
	 Payment Commencements:
	  	Upon Schedule fundings
		
	 Documentation:
	  	Master Loan and Security Agreement #7688 dated July 14, 1999 between Lender and Borrower.
		
	 Commitment Fee:
	  	Borrower will provide a $5,000 Commitment Fee to Lender upon execution of this proposal letter. The Commitment Fee

  
 OXFORD VENTURE
FINANCE, LLC 
 133 North Fairfax Street  •  Alexandria, Virginia 22314  •  (703)
519-4910 FAX 

 Mr. Robert J. Jakobs 
 December 20, 2001 
 Page 2 
  

			
	 	  	will be applied to any transaction Costs, as defined herein, with the remainder to be retained by Lender after funding commences. Should the Lender not issue a commitment to provide funding,
the Commitment Fee, less any transaction Costs, will be returned.
		
	 Rate Adjustment:
	  	The effective Loan Rate will remain fixed for the duration of each Term. Prior to Schedule funding, Lender may adjust the Loan Rate in order to maintain its originally anticipated rate of
return if there is an increase in the yield on the U.S Treasury Bills, as quoted in the Federal Reserve statistical release H.15 (519), from the Index Basis specified in this proposal letter.
		
	 Costs:
	  	Borrower shall be responsible for all costs and expenses relating to the transaction, including, without limitation, extraordinary attorneys’ and appraisal fees, lien search and filing
fees relating to the preparation, execution and recording of all documents
		
	 Expiration:
	  	This loan proposal will expire if a signed copy of this proposal letter is not received by Oxford on or before December 20, 2001.

  
 This proposal letter
and the collateral described are subject to final review and approval by Oxford Venture Finance, LLC and its Executive Credit Committee, and is not a commitment to provide financing. Any material adverse change in Borrower’s financial condition
may render this proposal or established loan line null and void, at the sole discretion of Lender. Neither party shall have any obligation or liability to the other with respect to funding against collateral under this proposal in the
above-described transaction until a binding Loan Agreement satisfactory to all parties has been executed. 
  
 Oxford Venture Finance welcomes the opportunity to be of service to ICAgen, Inc. We look forward to working with you. 
  

	
	 Sincerely,

	 OXFORD VENTURE FINANCE, LLC

	
	 /s/ J. Alden Philbrick, IV

	 J. Alden Philbrick, IV

	 President

  

			
	 ACKNOWLEDGED AND AGREED:

	 ICAgen, Inc.

		
	 By:
	 	 /s/ P. Kay Wagoner

	 Title: CEO & President

	 Date: 12/20/01

 Mr. Robert J. Jakobs 
 December 20, 2001 
 Page 3 
  
 ATTACHMENT A 
  
 Estimated Categories of Equipment: 
  

						
	 Category

	  	Amount

	  	Percentage

	 
	 Laboratory
	  	850,000	  	68	%
	 Software, Tenant Improvements
	  	250,000	  	20	%
	 Computers
	  	150,000	  	12	%
	 	  	
	  	
	

	 Total
	  	1,250,000	  	100	%

 OXFORD 
  
 February 24, 2003 
  
 Mr. Bob Jakobs 
 Director of Finance 
 42222 Emperor Blvd. 
 Suite 350 
 Durham, NC 27703 
  
 Transmitted via facsimile: 919-941-0813 
  
 Dear Bob: 
  
 This is to notify you that Oxford Finance
Corporation has approved your request for a credit line extension good through December 31, 2003 under the same terms and conditions of the original proposal executed on December 20, 2001. This is to accommodate your anticipated funding of $500,000
worth of capital expenditures in 2003. If you need to increase this amount, or if you have any questions or concerns about this extension, please do not hesitate to contact me at 703-519-6080. 
  

	
	 Sincerely,

	
	 /s/ Chad D. Norman

	 Chad D. Norman

	 Business Development Officer

  

	 133 NORTH FAIRFAX STREET  
	 OXFORD FINANCE CORPORATION 

 ALEXANDRIA, VIRGINIA 22314 
 TEL.: 703-519-4900
FAX: 703-519-4910 
 WWW.OXFORDFINANCE.COM

 OXFORD 
  
 September 2, 2003 
  
 Mr. Bob Jakobs 
 Director of Finance 
 42222 Emperor Blvd 
 Suite 350 
 Durham, NC 27703 
  
 Transmitted via facsimile: 919-941-0813 
  
 Dear Bob: 
  
 This is to notify you that Oxford Finance
Corporation has approved your request for a credit line expansion good through December 31, 2003 under the same terms and conditions of the original proposal executed on December 20, 2001. This is to accommodate your anticipated funding of $600,000
worth of capital expenditures in the third and fourth quarters of 2003. If you need to increase this amount, or if you have any questions or concerns about this expansion, please do not hesitate to contact me at 703-519-6080. 
  

	
	 Sincerely,

	
	 /s/ Chad D. Norman

	 Chad D. Norman

	 Business Development Officer

  

	 133 NORTH FAIRFAX STREET  
	 OXFORD FINANCE CORPORATION 

 ALEXANDRIA, VIRGINIA 22314 
 TEL.: 703-519-4900
FAX: 703-519-4910 
 WWW.OXFORDFINANCE.COM

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