Document:

<PAGE>

                                                                   EXHIBIT 10.7

                               MOLICHEM R&D, INC.
                          STANDARD TERMS OF EMPLOYMENT

         THIS AGREEMENT is made as of the 17th day of September, 2001, by and
among Molichem Medicines, Inc., a Delaware corporation, with its mailing address
at 100 Europa Drive, Suite 421, Chapel Hill, North Carolina 27514 ("MLCM"),
MoliChem R&D, Inc., a North Carolina corporation with its mailing address at 100
Europa Drive, Suite 421, Chapel Hill, North Carolina 27514 (the "Employer"), and
Ronald E. Keeney, an individual residing at 1433 Princess Ann Drive, Raleigh,
North Carolina 27607 ("Employee").

         The following terms of employment are agreed to by the Parties:

         1. Engagement. Employer agrees to engage Employee and Employee accepts
an engagement from Employer to serve initially as Executive Vice President and
Chief Medical Officer, subject to change as appropriate to the needs of the
Employer.

         2. Commitment. During and throughout the term of this Agreement,
Employee will devote Employee's entire working time, attention, and energies to
carry out, fulfill and perform the duties and responsibilities to be performed
by Employee under the terms of this Agreement, and as assigned to Employee by
Employer from time to time, and shall not, during the term of this Agreement,
engage in any other business activity unless specifically sanctioned by the
President of Employer. Employee's commitment under this Agreement shall be
full-time. This provision shall not be construed as preventing Employee from
investing Employee's assets in other businesses provided that the investment
does not require significant services or time commitments on the part of
Employee in the affairs of the businesses in which the investments are made;
provided, however, that Employee shall not devote any time to any business
related to or likely to be competitive with the business of Employer, as that
business is defined in Employee's Special Terms and Conditions of Employment,
which are ancillary to this Agreement, without written authorization from the
President of Employer.

         Notwithstanding the foregoing, Employer agrees that Employee may engage
in consulting activities for third parties for up to ten (10) hours per week
provided such activities do not detract from Employee's obligations to Employer,
and are not in violation of the terms of confidentiality or non-competition set
forth in this Agreement or in the "Special Terms of Employment" entered into by
Employee in connection herewith, and provided Employee assumes responsibility
for all of his expenses and taxes in connection with such consulting.

         3. Compensation.

         A. Employee shall be paid an initial salary at the annual rate of one
hundred twenty-five thousand dollars ($125,000), payable in monthly installments
or in such other intervals during the year as Employer regularly pays its other
employees. Employer and Employee shall

                                      E-65

<PAGE>

review Employee's performance on an annual basis in accordance with Employer's
standard practice, and at that time shall determine whether Employee's salary
should be increased.

         B. Employee shall be paid a signing bonus in the amount of thirty
thousand dollars ($30,000). Such payment is in consideration of Employees' start
date in advance of his prior employer's bonus payment date. Such bonus shall be
due upon the commencement of employment, provided however, if Employee receives
his annual bonus from his previous employer prior to his commencement date with
Employer, no signing bonus shall be due to Employee. In the event Employee
receives his annual bonus from his previous employer after his commencement date
with Employer, Employee shall reimburse Employer for the amount of the signing
bonus.

         C. Upon the approval of the Board of Directors, Employee shall have the
opportunity to earn an annual bonus in the amount of twenty percent (20%) of
base compensation and shall be eligible for other incentive compensation
payments, in accordance with such plans as may be adopted by the Board of
Directors of Employer.

         D. In addition to the compensation under Sections 3.a., 3.b. and 3.c.,
Employee shall be awarded an option to purchase one hundred thousand (100,000)
shares of the common stock of MLCM at a purchase price of one dollar and fifty
cents ($1.50) per share pursuant to the terms and conditions of the Option
Agreement in the form of Exhibit A, which agreement provides for vesting of the
options at a rate of 1/36 per month for three years beginning October 1, 2001.
In addition, at the discretion of the Board of Directors of MLCM, Employee may
be granted additional options for the common stock of MLCM upon the completion
of minimum revenue and funding targets to be established by MLCM.

         E. All applicable federal and state taxes and other governmental
assessments shall be deducted from Employee's salary or bonus payments, as
required by law.

         4. Benefits.

         A. Vacation. Employee shall be entitled to fifteen (15) days of paid
vacation each calendar year, which shall accrue at the rate of 3.25 days per
quarter, and to compensation in respect of earned but unused vacation. Vacation
days not used in one calendar year shall carry over to the following calendar
year up to a maximum amount of five (5) days. No compensation shall be due for
unused vacation days that do not carry over.

         B. Sick and Personal Leave. Employee shall be entitled to ten (10) days
of sick and personal leave each calendar year, which shall accrue at the rate of
2.5 days per quarter. Sick leave may be used with respect to illness of Employee
or to attend to illness of any member of his or her immediate family who resides
with Employee. Personal leave may be used to attend to personal matters such as
medical appointments, or funerals of family members. Sick and personal leave
days not used in one calendar year shall carry over to the following calendar
year up to a maximum of thirty (30) days of such leave. No payment shall be made
for unused sick and personal leave.

                                      E-66

<PAGE>

         C. Leave Policies. Employer may at its sole option change its vacation
or sick and personal leave policy by providing a new policy in writing to
Employee and specifically referencing it as an amendment to this Agreement, such
amendment to be prospective only.

         D. Holidays. Employee shall be entitled to such paid holidays as are
provided to the other Employer employees.

         E. Insurance. Employer agrees to Employee's individual health, life and
disability insurance premiums for Employee's Glaxo Retirement Medical coverage,
American Medical Association excess major medical coverage, American Medical
Association Life Insurance and American Express Financial long term disability
insurance; provided however, Employer may at any time at its option elect to
discontinue payment of part of all of such premiums and to instead provide
Employee with the standard health, life and disability coverage provided to
other employees, which coverage may vary from time to time or may be eliminated,
provided that Employee is treated the same as other employees similarly
situated. If the Employer offers family coverage on any such policy and Employee
elects such coverage, Employee shall be responsible for payment of the premiums
for Employee's family members other than Employee.

         F. Membership Fees. Employer shall pay Employee's following membership
fees during the term of employment: American Medical Association, American
Academy of Pediatrics, American Academy of Pharmaceutical Physicians,
Association of Clinical Research Professionals, Drug Information Association,
Faculty of Pharmaceutical Physicians of the Royal College of Physicians U.K.,
Ambulatory Pediatric Association and any other organizations as are mutually
agreed upon by Employer and Employee.

         G. Other Benefits. Employee shall be entitled to participate in any
other group benefit plans or arrangements made available to Employer's employees
in the future, subject to and on a basis consistent with the terms, conditions
and overall administration of such plans and arrangements. Nothing paid to
Employee under any plan or arrangement shall be deemed to be in lieu of
compensation payable to Employee pursuant to Paragraph 4.

         H. Expenses. During the term of this Agreement Employee shall be
entitled to receive prompt reimbursement for all reasonable expenses incurred by
Employee in performing services on behalf of Employer, including all expenses of
travel, provided that such expenses are documented by proper receipts and in
accordance with the travel and reimbursement policies established by Employer.

         5. Drug and Alcohol Use. Employee acknowledges that the use,
possession, or sale of narcotics, hallucinogens, depressants, stimulants,
marijuana, or other controlled substances on Employer premises or while in
pursuit of Employer business is prohibited. (This does not apply to medication
prescribed by a licensed physician and taken in accordance with such
prescription). The use of the above substances on or away from Employer premises
or of any other substance such as alcohol, which adversely affects Employee's
job performance, or which may reflect unfavorably on public confidence in the
manner in which Employer carries out its responsibilities, as determined by
Employer, is also prohibited.

                                      E-67

<PAGE>

         6. Term and Termination.

         A. Employee may terminate his employment at any time upon giving two
week's written notice to Employer.

         B. Employer may terminate Employee at any time, at?will, and with or
without cause, upon two weeks' prior notice, or upon immediate notice with
payment of two weeks' salary in accordance with subparagraph (d) below; provided
however, in the event Employee is terminated for other than cause, Employer
shall pay Employee a severance payment in the amount of six (6) months salary in
accordance with subparagraph (d) below. For the purpose of this Agreement,
"cause" shall mean (i) the failure of Employee to perform or observe (other than
by reason of illness, injury or incapacity) any of the material terms or
provisions of this Agreement, (ii) dishonesty or misconduct on the part of
Employee that is or is reasonably likely to be materially damaging or materially
detrimental to the business of the Company, (iii) conviction of a felony, (iv)
failure to comply with the reasonable directions of the Board of Directors or
officers of the Company in a way that is materially damaging or materially
detrimental to the business of the Company, or (v) failure to perform his
material duties under this Agreement due to abuse of alcohol or drugs. Prior to
terminating this Agreement on account of Employee's failure to perform or
observe any of the material terms and conditions of this Agreement (as described
in clauses (i), (iv) or (v) of the preceding sentence), the Company shall give
Employee thirty (30) days' written notice and an opportunity to cure such
failure to the satisfaction of the Company.

         C. In addition, Employer may terminate Employee's employment
immediately upon the happening of any of the following:

         (1) Employee's death; or

         (2) Except as may otherwise be provided under the Americans with
Disabilities Act, Employee's disability defined as Employee becoming ill or
injured or otherwise so incapacitated that Employee cannot, in the opinion of
the Board, carry out and perform Employee's duties, and such incapacity
continues for a period in excess of three (3) months; or

         (3) Dissolution of Employer or discontinuance of its business; or

         (4) Employee's violation of representations or obligations under
Paragraph 3 of this Agreement, or of Employee's Special Terms and Conditions of
Employment; or

         (5) Misconduct, including, but not limited to violation of Employer
policies or procedures, unwillingness to perform, insubordination, or a
reasonably based suspicion of dishonesty or other material breach of ethical or
professional standards.

         D. Upon termination, Employer shall make a final payment of all amounts
due for any reason no later than three (3) months after the termination date,
provided that any salary due and payable to Employee shall be paid no later than
the next pay period net of any amounts due from Employee to Employer and
provided further that any severance payment due to Employee shall be paid in
regular monthly installments. Employee agrees that to the extent Employee owes
money or

                                      E-68

<PAGE>

property to Employer, such amounts can be offset by the amounts due to Employee.
As a condition to final payment, Employee shall sign a release indicating that
no further compensation of any type is due prior to receiving the final payment.

         E. Notwithstanding any such termination, the obligations and
restrictions imposed on the Employee pursuant to the Special Terms and
Conditions of Employment shall survive termination of this Agreement and shall
exist in accordance with the terms of that document.

         7. Employee Handbook. From time to time, Employer may distribute
employee manuals or handbooks, and officers or other representatives of Employer
may make written or oral statements relating to Employer's policies and
procedures. Employee shall abide by such policies, procedures and statements. No
policies, procedures, or statements of any nature by or on behalf of Employer
(whether written or oral, and whether or not contained in any formal employee
manual or handbook) shall be construed to modify this Agreement or Employee's
Special Terms and Conditions of Employment.

         This Agreement is effective as of the date first above written and is
executed in duplicate originals.
                                        MOLICHEM R&D, INC.

                                        By:
----------------------------               ------------------------------
Employee
                                        Its:
                                           ------------------------------

                                        MOLICHEM MEDICINES, INC.

----------------------------
Witness                                 By:
                                           -------------------------------

                                        Its:
                                            ------------------------------

                                      E-69

<PAGE>

                               MOLICHEM R&D, INC.
                   SPECIAL TERMS AND CONDITIONS OF EMPLOYMENT

         This Agreement is made the 17th day of September, 2001, between
MoliChem R&D, Inc., a North Carolina corporation with its mailing address at 100
Europa Drive, Suite 421, Chapel Hill, North Carolina 27514, (the "Company"), and
Ronald E. Keeney, an individual residing at 1433 Princess Ann Drive, Raleigh,
North Carolina 27607 ("Employee").

         This Agreement is based on the following understandings:

         A. The Company wishes to employ Employee and Employee desires to be
employed by the Company in a position of trust and confidence to aid the Company
in its Business; and

         B. Prior to employment of Employee, as a condition of employment, and
as part of the initial financial compensation established for Employee, the
Parties wish to establish their respective rights in and to the use of certain
proprietary and confidential information and intellectual property and to the
work product of Employee, and to enter into an understanding regarding the use
of the Company's assets, information and goodwill to compete with the Company;
and

         C. The Company has informed Employee that entering into this Agreement
is a condition of initial employment and the Company would not employ Employee
unless Employee agreed to the terms herein; and

         D. Nothing contained in this Agreement shall be deemed to give Employee
the right to be employed by the Company for any specific length of time or at
any specific wage, it being understood that this Agreement is ancillary to the
understandings between the Company and Employee related to compensation,
benefits and other terms of employment.

         Therefore, the Parties to this Agreement, affirming the correctness of
each recital above, contract and agree as follows:

         1. Consideration. This Agreement is executed by Employee in
consideration of initial employment of Employee by the Company, it being
understood and agreed that the execution of this Agreement by Employee was
contemplated in accepting employment and agreeing to the compensation the
Company is to pay to Employee. Employee acknowledges that this consideration is
sufficient and adequate consideration for all covenants and commitments made by
Employee to the Company in this Agreement.

         2. Reasonableness and Enforceability. EMPLOYEE HAS READ AND CAREFULLY
CONSIDERED THE TERMS OF THIS AGREEMENT, HAS HAD THE OPPORTUNITY TO CONTACT
EMPLOYEE'S OWN LEGAL COUNSEL TO ADVISE EMPLOYEE REGARDING THE TERMS OF THIS
AGREEMENT, AND EMPLOYEE NOW AGREES THAT THE TERMS OF THIS AGREEMENT ARE FAIR AND
REASONABLE AND ARE REASONABLY REQUIRED FOR THE PROTECTION OF THE INTEREST OF THE
COMPANY AND THE COMPANY'S SHAREHOLDERS. EMPLOYEE FURTHER AGREES THAT THE
RESTRICTIONS AND COVENANTS OF THIS AGREEMENT WILL NOT IMPAIR

                                      E-70

<PAGE>

THE ABILITY OF EMPLOYEE TO SECURE EMPLOYMENT SO AS TO BE ABLE TO MAKE A
REASONABLE LIVING. The provisions of this Agreement shall be enforceable
notwithstanding the existence of any claim or cause of action of Employee
against the Company whether predicated on this Agreement or otherwise. Failure
of the Company to enforce at any time or for any period of time any of the
conditions or covenants of this Agreement shall not be construed as a waiver of
such provisions or of the right of the Company to enforce subsequent breaches of
the same or other conditions and covenants, unless such permanent waiver is
provided to Employee in writing and signed by President of the Company.

         3. The Company's Business. It is understood by Employee that the
"Company's Business" includes, without limitation, research, development and
commercialization of treatments for respiratory diseases, including but not
limited to cystic fibrosis, chronic obstructive pulmonary disorders,
tuberculosis, chronic bronchitis and related diseases and treatment of sepsis,
ARDS and related diseases. Any notification of Employee by the Company, oral or
written, or any reasonable knowledge on the part of Employee that the Company's
Business includes other specific aspects shall expand Employee's obligations
under this Agreement to include those additional aspects of the Company's
Business.

        4.  Confidential Information.

         (a) For the purposes of this Agreement, "Confidential Information"
shall mean each of the following: (i) any information or material proprietary to
the Company or designated as confidential either orally or in writing by the
Company; (ii) any information not generally known by non?Company personnel
(other than persons subject to an obligation of confidentiality); (iii) any
information which Employee should know the Company would not care to have
revealed to others or used in competition with the Company; and (iv) any
information which Employee made or makes, conceived or conceives, developed or
develops or obtained or obtains knowledge or access through or as a result of
Employee's relationship with the Company (including information received,
originated, discovered or developed in whole or in part by Employee) from the
initial date of Employee's employment with the Company. The Confidential
Information includes but is not limited to the following types of information
and other information of a similar nature (whether or not reduced to writing):
Inventions (as defined below), development procedures, test methodologies,
research results, know-how, specifications, models, software in various stages
of development, technical, user and product documentation under development,
internal documentation, diagrams, data, flowcharts, spreadsheets, marketing and
development plans, customer (licensee) names and other information related to
current and potential customers (licensees) (including without limitation names,
addresses, phone and fax numbers, hardware configurations, computer software
licenses, support required, terms of dealing, and other customer information
acquired in the course of providing products or services to customers), price
lists, pricing policies, supplier lists, financial information and employee
files. Confidential Information shall also include, without limitation, data,
notes, records, files, memoranda, email, reports, designs, drawings, plans,
sketches, documents, print?outs, and the like, in any way or in any medium
incorporating or reflecting any of the Confidential Information, or relating to
the Company's Business, or to any client, vendor, licensor, licensee or other
party transacting business with the Company. Confidential Information also
includes any information described above which the Company obtains from another
party and which the Company treats as proprietary or designates as Confidential
Information, whether or not owned

                                      E-71

<PAGE>

or developed by the Company, including without limitation information of or
concerning the Company's customers. The failure of the Company to mark any of
the above-described information as proprietary, confidential, or secret shall
not affect its status as part of the Confidential Information protected by this
Agreement.

         (b) For the purposes of this Agreement, "Inventions" shall mean ideas,
designs, creations, concepts, techniques, inventions, improvements, discoveries,
and works of authorship, whether or not patentable or protectable by copyright
or patent, whether or not fixed in a tangible medium of expression and whether
or not reduced to practice, including but not limited to the nature and results
of research and development activities, processes, formulae, devices, designs,
processes, computer programs, and methods, together with any improvements
thereon or thereto, derivative works or applications derived therefrom, and
know?how related thereto.

         (c) Information publicly known that is generally employed by the
industry of the Company (the "Company's Industry") at or after the time Employee
first learns of such information, or generic information or knowledge which
Employee would have learned in the course of similar employment or work
elsewhere in the Company's Industry shall not be deemed part of the Confidential
Information.

         5. Nondisclosure and Non-use of Confidential Information.

         (a) Employee agrees that Employee has a fiduciary duty to the Company
and that Employee shall hold in confidence and shall not, except in the course
of performing Employee's employment obligations or pursuant to written
authorization from the Company: (i) directly or indirectly reveal, report,
publish, disclose or transfer the Confidential Information or any part thereof
to any person or entity; (ii) use any of the Confidential Information or any
part thereof for any purpose other than for the benefit of the Company; or (iii)
assist any person or entity other than the Company to secure any benefit from
the Confidential Information or any part thereof.

         (b) This Paragraph 5 shall remain in effect from Employee's initial
employment with the Company and at all times during Employee's employment with
the Company and for ten (10) years after termination of Employee's relationship
with the Company, except that this Paragraph 5 shall remain in effect
indefinitely as to Confidential Information that is a trade secret (as defined
by statute and common law).

         6. Ownership of Confidential Information and Work Product.

         (a) Except as limited by this Paragraph, Employee agrees that all
Confidential Information and all other work product of any type or nature
created by Employee or resulting from work performed by Employee for the
Company, using the Company's facilities, equipment, supplies or other property,
during business hours, or related to the Company's Business, even if not
Confidential Information (such Confidential Information and work product being
defined as "Work Product"), shall belong to the Company exclusively and without
any additional compensation to Employee. Employee agrees that any original
copyrightable Work Product shall be considered as "works made for hire," and
that the Company shall be deemed the author thereof, provided that to the extent
such Work Product is determined not to constitute "works made for hire"

                                      E-72

<PAGE>

as a matter of law, Employee hereby irrevocably assigns and transfers to the
Company all rights in and to such Work Product.

         (b) The Company's ownership right to such Work Product shall extend
regardless of the hours during which or facilities at which the Work Product is
made or the resources or ownership of resources used in making it; provided
however that the assignment of rights shall not apply to creations developed
entirely on Employee's own time without using the Company's facilities,
equipment, supplies or other property, Confidential Information or Work Product,
provided that the creations do not (a) relate to the Company's Business or
actual or demonstrably anticipated research or development, or (b) result from
any work performed by Employee for the Company. This Agreement is not intended
to, and shall not be interpreted to, assign or vest in the Company rights not
assignable pursuant to North Carolina General Statutes Section 66-57.1.

         (c) Upon request Employee will execute any instrument required to vest
in the Company complete title and ownership to all Work Product, and will, at
the request and expense of the Company, execute any instruments necessary to
obtain legal protection in the United States and foreign countries for all Work
Product and for the purpose of vesting title thereto in the Company, or its
nominee, all without any additional compensation of any kind to Employee. Only
if the Company executes a written statement that it does not desire to obtain
protection for a particular Invention or copyrightable creation is Employee free
to obtain protection in Employee's own name and at Employee's own expense,
provided, however, that the Company shall have a royalty-free nonexclusive
irrevocable license under any patent or copyright so obtained by Employee.

         7. Disclosure to the Company. Upon the conception of any Work Product
by Employee (either solely or in conjunction with others) and without waiting to
perfect or complete it, Employee promises and agrees immediately to fully
disclose to an officer of the Company, and to no one else, and thereafter to
treat the Work Product as the property and secret of the Company. This shall
include Work Product made, conceived or reduced to practice after the term of
Employee's employment but which belong to the Company pursuant to Paragraphs 6
and 14. Upon request Employee will reduce any concept in the Work Product to
writing and deliver all copies of the writing to the President of the Company,
or if Employee is the President of the Company, such copies shall be delivered
to the Secretary of the Company. These obligations shall continue beyond the
termination of employment with respect to Work Product conceived or made during
the period of employment.

         8. Collaboration. Employee warrants that Employee will disclose the
participation of any other person in any of Employee's work for the Company.
Absent such disclosure, Employee warrants that all work performed by Employee
will be Employee's own and that no other person shall have any right, title, or
interest in any work submitted to the Company.

         9. Records. Employee agrees that Employee will keep and maintain
adequate and current written records of all Work Product created by Employee.
All written records relating to any Work Product, whether in the form of notes,
data, reference materials, sketches, drawings, memoranda, correspondence,
blueprints, manuals, letters, notebooks, reports, flowcharts, programs,
proposals, or any other form, and whether in written, electronic or other media,
concerning the

                                      E-73

<PAGE>

Company's Business or incorporating or reflecting any of the Work Product, shall
be and remain the property of and available to the Company at all times, and
shall be delivered to the Company on demand or upon Employee leaving the
Company's service. The Company may, at any time and without notice to Employee,
take possession of such records regardless of their location, including
Employee's files, desk, computer or other areas under the control of the
Company.

         10. Assistance After Employment. Employee agrees that if, subsequent to
Employee's employment by the Company, his assistance is needed in regard to
securing, defending, or enforcing any patent or copyright of which Employee is
an inventor, co-inventor, author or co-author Employee shall provide requested
assistance and the Company shall pay reasonable compensation for his time at a
rate to be agreed upon but not higher than 150% of the last salary rate paid to
Employee by the Company during his employment, together with full reimbursement
of reasonable and necessary directly-related expenses.

         11. Third-Party Obligations. Employee acknowledges that the Company
from time to time may have agreements with other person or entities or with
government or other agencies that impose obligations or restrictions on the
Company regarding work to be created by Employee or the Company during the
course of work thereunder, or regarding the confidential nature of the work or
Confidential Information of the third party disclosed during or used as part of
such work. Employee agrees to be bound by all such obligations and restrictions
and to take all action necessary to discharge the obligations of the Company
thereunder.

         12. Non-Competition. Employee will obtain access to Confidential
Information and to the Company's clients and goodwill immediately or within a
very short period of time after employment, all of which can be used to provide
Employee with an unfair advantage if used to compete against the Company.
Employee recognizes that the Company has invested substantial amounts of money
and other resources to place the Company in a position where the Company and its
employees are accorded respect as a member of a premiere organization in the
areas of the Company's Business, that Employee by reason of Employee's
affiliation with the Company has acquired a high stature and goodwill in the
industry related to the Company's Business, and that it would be unfair for
Employee to trade on this stature and goodwill to the competitive disadvantage
of the Company. Employee further acknowledges that the nature of the Company's
Business results in activities and customers located throughout the United
States and the world. The Company's Business could be performed and its goodwill
used in any location in the United States or the world; the fact that a customer
or employee is not currently located in a city or state does not mean that the
undertaking of activities by Employee in such city or state in competition with
the Company's Business would have a different impact than undertaking of the
activity in a city or state where customers or employees are located. The
Parties also recognize that it is the intent of the Company, to the fullest
extent permitted by law, to protect the unique aspects of the Company's Business
and to prevent specialized knowledge, skills and relationships acquired by
Employee during the course of Employee's employment with the Company from being
used in a manner that interferes with the Company's goodwill or customer
relations or gives an unfair advantage to the former Employee and/or Employee's
new employer, or places Employee or the new employer in an unfair competitive
position. Employee recognizes that in order to protect the legitimate business
interests and goodwill of the Company and the investments of its Shareholders,
it is reasonable and necessary for Employee to restrict certain of Employee's
actions during Employee's employment and for the period of time

                                      E-74

<PAGE>

after the date of Employee's termination of employment as specified below.
Therefore Employee agrees as follows:

         (a) Employee (i) will not consult with or accept employment with a
business which competes with the Company's Business if such consulting or
employment will require Employee to engage in actions similar to those actions
undertaken by Employee in the course and scope of Employee's employment with the
Company, draw upon specialized training or knowledge received at the Company,
utilize specialized skills developed at the Company, draw upon the Company's
goodwill, draw upon industry or current or potential customer contacts developed
at the Company, or utilize procedures developed by the Company; and (ii) will
not accept consult or accept employment with a business that competes with the
Company's Business if such employment will require Employee to engage in actions
similar to those actions undertaken by Employee in the course and scope of
Employee's employment with the Company; and (iii) will not engage in, or take
action for the purpose of enabling Employee to engage in, either as an
individual, employee, consultant, independent contractor, advisor, or otherwise,
or be interested in (as present or prospective owner, partner, investor,
shareholder (except in a publicly traded company), advisor, or otherwise), a
business which engages in or competes with the Company's Business, except that
Employee may be employed by such a competing business provided that Employee
does not work in the section or division of the competing business which
competes with the Company's Business and that such employment will not require a
breach of the non-disclosure and non-use requirements of Paragraph 5.

         (b) Employee will not, either individually or through any other person
or entity: (i) employ or seek to employ or engage as an independent contractor
or seek to engage as an independent contractor in any business competitive with
the Company's Business, any person who is an employee of the Company or is an
independent contractor engaged in the provision of services to the Company, or
any person who was an employee of the Company or was an independent contractor
engaged in provision of services to the Company (x) within six months prior to
such employment or engagement of such person by Employee, or (y) within seven to
twelve months prior to such employment or engagement of such person by Employee,
or (y) within thirteen to eighteen months prior to such employment or engagement
of such person by Employee; or (ii) knowingly take any action detrimental to the
relationship between the Company and its present and future employees or
independent contractors.

         (c) Employee will not, either individually or through any other person
or entity, solicit, (i) influence, or attempt to influence any customer
(licensee) or potential customer (licensee) of the Company with regard to the
customer's purchase (or licensing) of products or services from the Company or
from any competing business offering the same or substitutable products or
services if such business is a customer or prospective (under negotiation)
customer of the Company or was a customer or prospective (under negotiation)
customer of the Company (x) within six months prior to the termination of
Employee's employment with the Company, or (y) within seven to twelve months
prior to the termination of Employee's employment with the Company, or (z)
within thirteen to eighteen months prior to the termination of Employee's
employment with the Company; or (ii) take any action detrimental to the existing
or prospective (under negotiation) relationships between the Company and any
customer or potential customer.

                                      E-75

<PAGE>

         (d) Employee will not, either individually or through any other person
or entity, (i) solicit, influence, or attempt to influence any provider of
services or products to the Company, with regard to the provision of services or
products to the Company, nor shall Employee do so with respect to any person or
entity which was a provider of services or products to the Company (x) within
six months prior to the termination of Employee's employment with the Company,
or (y) within seven to twelve months prior to the termination of Employee's
employment with the Company, or (z) within thirteen to eighteen months prior to
the termination of Employee's employment with the Company; or (ii) take any
action detrimental to the existing or prospective (under negotiation)
relationships between the Company and any provider of services or products.

         (e) The term of the restrictions specified in this Paragraph 12 is the
period of Employee's employment by the Company and for one (1) year after the
termination of Employee's employment by the Company. The term specified in this
subparagraph (e) shall be tolled during any period of actual competition by the
Employee and/or any period of litigation required to enforce the Employee's
obligations under this Agreement.

         (f) The geographic scope of the restriction set forth in this Paragraph
12 is: (i) a fifty mile radius of the corporate headquarters of the Company; and
(ii) a fifty mile radius of Employee's residence; and (iii) a fifty mile radius
of all cities where the Company is conducting research, development,
manufacturing or commercialization activities related to the Company's products;
(iv) a fifty mile radius of all cities where the Company has contracted to do
business; and (v) a fifty mile radius of all cities where the Company has
contracts pertaining to license, research, development, manufacture or sales of
the Company's products, or has or had negotiations related to the same; and (vi)
the United States; and (vii) Canada; and (viii) the world.

         The provisions and clauses of this Paragraph 12 are separate and
independent covenants, and the invalidity or unenforceability of one or more of
the provisions or clauses hereof shall not affect the validity or enforceability
of the remaining provisions or clauses.

       13.  Change of Noncompetition Restrictions.

         (a) The parties recognize that the law relating to noncompetition has
been and is evolving, and what may be permitted as restrictions change with
decisions of the courts and new statutes. Therefore, the parties agree that to
the extent the law changes the Company may, without the prior consent of
Employee or any further compensation to Employee, amend any provision or clause
of Paragraph 12 to meet the requirements of the change; provided, however, that
no such amendment shall impose any greater restrictions on Employee than those
in Paragraph 12.

         (b) Employee agrees that if Employee believes the provisions and
clauses of Paragraph 12 are unreasonable, based on the circumstances existing at
the relevant time and the legitimate interests of the Company, Employee will
request that the Company waive or modify such provisions and clauses so as to
reasonably protect the Company's legitimate interests, which request shall
include an explanation of the how and to what extent the provisions and clauses
of Paragraph 12 are unreasonable. The Company may, but shall not be required to,
waive or modify the provisions and clauses of Paragraph 12.

                                      E-76

<PAGE>

         14. Warranty by Employee. Employee represents and warrants that his
performance of all terms under this Agreement does not result in a breach of any
duty owed by Employee to another, under contract or otherwise, or violate any
confidence of another. Employee agrees not to disclose to the Company or induce
the Company to use any confidential or proprietary information belonging to any
of the Employee's previous employers or others. Employee warrants that Employee
has executed no prior noncompetition, nondisclosure or confidentiality
agreements that would in any way interfere with his work for or employment by
the Company. Employee represents and warrants that Exhibit A attached hereto,
entitled "List of Work Product," is a true and complete list of all creations,
if any, whether or not patented or copyrighted and whether or not reduced to
practice, made by Employee prior to his employment with the Company, and which
therefore are not subject to the provisions of Paragraph 6; provided, however,
that any improvements, whether or not patentable or reduced to practice, made to
or on, or any derivative work made from, any of the listed confidential and
propriety information after Employee's commencement of employment by the Company
are subject to the terms of Paragraph 6.

         Employee agrees to notify the Company in writing before Employee makes
any disclosure to or performs any work on behalf of the Company which appears to
threaten or conflict with any proprietary right Employee claims in any Work
Product and in the event of Employee's failure to give such notice, Employee
shall make no claim against the Company with respect to any such Work Product.

         15. Exit Interview. Employee agrees that upon termination of Employee's
employment for any reason, Employee shall participate in an exit interview with
Company personnel. At or prior to the time of this interview Employee shall
deliver to the Company all materials or media referenced in Paragraph 4 of this
Agreement containing Confidential Information, as well as all records referenced
in Paragraph 9 of this Agreement, in Employee's possession or control, or which
the Employee has otherwise removed from the premises of the Company. Employee
agrees that, upon request Employee will execute a sworn statement that Employee
has complied with the terms of the Agreement. Should Employee fail to execute
such a statement, in addition to any other remedies the Company may have, the
Company may withhold any and all amounts due to Employee for any reason, except
minimum compensation required by law.

         16. Extraordinary Relief. Nothing in this Agreement shall be construed
as prohibiting the Company from pursuing all remedies available to the Company
for breach of this Agreement. Employee recognizes and agrees that because of the
unique nature of the Confidential Information and the competitive position of
the Company, his breach of this Agreement will irreparably injure the Company
for which the Company could not adequately be compensated by remedies at law.
Should Employee at any time reveal or use for the benefit of other than the
Company or threaten to so reveal or use any Confidential Information, or during
any restricted period violate or threaten to violate any of the restrictions in
Paragraph 12, the Company shall be entitled to an injunction restraining
Employee from doing or continuing to do or performing any such acts, and
Employee hereby consents to the issuance of such injunction against Employee.
Employee further agrees to waive any bond requirement that may arise if the
Company is forced to seek injunctive relief to enforce the terms of this
Agreement. Employee agrees that the existence of any other claim or cause of
action, whether predicated on any other provision of this Agreement; or
otherwise as a result of the relationship between the parties, shall not
constitute a defense to the

                                      E-77

<PAGE>

enforcement of the restrictions in Paragraph 12 or any provisions protecting the
Confidential Information.

         17. Accounting for Profits; Indemnification. Employee covenants and
agrees that, if Employee shall violate any of Employee's covenants or agreements
under this Agreement, the Company shall be entitled to an accounting and
repayment of all profits, compensation, royalties, commissions, remunerations or
benefits which Employee directly or indirectly shall have realized or may
realize relating to, growing out of or in connection with any such violation;
such remedy shall be in addition to and not in limitation of any injunctive
relief or other rights or remedies to which the Company is or may be entitled at
law or in equity or otherwise under this Agreement. Employee hereby agrees to
defend, indemnify and hold harmless the Company against and in respect of: (i)
any and all losses and damages resulting from, relating or incident to, or
arising out of any misrepresentation or breach by Employee of any warranty,
covenant or agreement made or contained in this Agreement; and (ii) any and all
actions, suits, proceedings, claims, demands, judgments, payments, costs and
expenses (including reasonable attorneys' fees) incident to the foregoing.

         18. Successor Employers. Employee hereby authorizes the Company to
provide a copy of this Agreement, including any Exhibits, to any and all future
employers, and to notify any and all future employers that the Company intends
to exercise its legal rights arising out of or in conjunction with the Agreement
and/or any breach or any inducement of breach of it.

         19. Reformation/Severability of Agreement. If any provision of this
Agreement shall for any reason be adjudged by any court of competent
jurisdiction or arbiter to be illegal, invalid or otherwise unenforceable, such
judgment shall not affect, impair or invalidate the remainder of this Agreement
but shall be confined in its operation to the provision of this Agreement
directly involved in the controversy in which such judgment shall have been
rendered. The invalid or unenforceable provision shall be reformed so that each
party shall have the obligation to perform reasonably alternatively to give the
other party the benefit of its bargain. In the event the invalid or
unenforceable provision cannot be reformed, the other provisions or applications
of this Agreement shall be given full effect, and the invalid or unenforceable
provision shall be deemed struck.

         20. Successor and Assigns. This Agreement shall inure to the benefit of
and be binding upon the Company, its successors and assigns, including without
limitation any entity which may acquire all or substantially all of the
Company's assets and business or into which the Company may be consolidated or
merged, and the Employee, his/her heirs, executors, administrators and legal
representatives. Employee may not assign any of his obligations under this
Agreement.

         21. Governing Law and Venue. This Agreement shall be governed by and
construed in accordance with the laws of North Carolina applicable to contracts
between residents of North Carolina which are wholly executed and performed in
North Carolina and no conflict of law provisions shall be invoked to permit the
laws of any other state or jurisdiction to apply. Any lawsuit brought under the
terms of this Agreement shall have exclusive venue in the state and federal
courts of Orange County, North Carolina; provided, however, that with respect to
any proceeding for injunctive relief the Company may, at its option, bring the
proceeding before a court where Employee resides at the time of such proceeding.

                                      E-78

<PAGE>

         22. Merger. This Agreement (together with my other employment
agreement(s) that may exist between the Company and Employee (the "Additional
Agreements")) constitutes the entire Agreement between the Parties with respect
to the subject matter hereof; and supersedes and replaces any oral or written
communications and any undertakings otherwise made between the Parties relating
to the subject matter. The Additional Agreements (if any) shall remain in full
force and effect except that to the extent this Agreement and any Additional
Agreement are inconsistent, this Agreement shall prevail. Except as specified in
Paragraph 13 or 19, no changes, modifications, or amendments of any terms and
conditions of this Agreement are valid or binding unless agreed to in a writing
signed by Employee and the President of the Company or, if Employee is the
President, the Secretary of the Company.

         This Agreement is effective as of the date first above written and is
executed in duplicate originals.

MOLICHEM R&D, INC.

By:
     --------------------------
             President

EMPLOYEE                                  WITNESS

-------------------------------           -------------------------------
         (Signature)                               (Signature)

-------------------------------           -------------------------------
        (Print Name)                              (Print Name)

                                      E-79<PAGE>

                                                                   EXHIBIT 10.8

                           EUROPA CENTER OFFICE LEASE

                          CONTENTS OF LEASE BY SECTION

SECTION NUMBER AND SUBJECT                                          PAGE NUMBER
-------------------------------------------------------------------------------

1.       Definitions                                                         3
2.       Demise                                                              3
3.       Term                                                                4
4.       Rent                                                                4
5.       Late Payment                                                        5
6.       Security Deposit                                                    5
7.       Use of Leased Premises                                              5
8.       Signs                                                               5
9.       Care and Maintenance                                                5
10.      Alterations by Tenant                                               6
11.      Acceptance of Leased Premises                                       6
12.      Delay in Commencement                                               7
13.      Subleasing and Assignment                                           7
14.      Default                                                             9
15.      Holding Over                                                        9
16.      Surrender of Rented Space                                           9
17.      Damage to Rented Space or Building                                 10
18.      Tenant's Indemnity and Tenant's Insurance                          10
19.      Tenant's Waiver of Claim; Mutual Releases                          11
20.      Eminent Domain                                                     11
21.      Utilities and Other Services                                       12
22.      Covenants of Title and Quiet Enjoyment                             12
23.      Common Areas                                                       12
24.      Use of Parking Facilities                                          13
25.      Information Concerning Tenant                                      13
26.      Authority of Tenant                                                13
27.      Estoppel                                                           13
28.      Right to Relocate                                                  14
29.      Landlord's Access to Rented Space                                  14
30.      Managing Agent                                                     14
31.      Subordination                                                      14
32.      Reservation of Rights                                              15
33.      Notices                                                            15
34.      Entire Agreement; Modification                                     15
35.      Riders and Exhibits                                                15
36.      Section Headings                                                   15
37.      Number and Gender                                                  15
38.      Governing Law                                                      15

                                      E-80

<PAGE>

39.      Severability                                                       16
40.      Modification by Mortgage                                           16
41.      Binding Effect                                                     16
42.      Limitation on Right of Recovery                                    16
43.      Brokerage                                                          16
44.      Confidentiality                                                 [sic]

EXHIBITS
         EXHIBIT A.
               Site of Europa Center                                        18
         EXHIBIT B.
               Sketch of Rented Space                                       19
         EXHIBIT C.
               Rules and Regulations                                        20

This lease is made as of July 2, 2001 by and between Europa Center, LLC
(collectively, "Landlord") and MoliChem R&D, Inc., a Delaware Corporation [sic].
Both parties acknowledge that Graham Associates, Ltd., a North Carolina
corporation, is the authorized agent of Landlord, with full power and authority
to execute this Lease on behalf of Landlord and to bind the Landlord to its
terms. In consideration of the reciprocal obligations stated herein, Landlord
and Tenant agree as follows:

1.   DEFINITIONS.    When used in this Lease, the terms listed below shall have
the meanings stated in this Section 1.

     (a) "Building": the five-story office building in which the Rented Space is
located.

     (b) "Commencement Date": the actual date on which the initial term of this
Lease commences, as provided in Section 3 below.

     (c) "Common Areas": Any existing or future equipment, improvements, areas
or spaces intended for the joint use of Landlord, Tenant and other tenants,
occupants or users of the Europa Center. Common Areas include but are not
limited to sidewalks, driveways, stairways, halls, lobbies, elevators, passages
and parking facilities.

     (d) "CPI" shall mean the Consumer Price Index - U.S. City Averages for
Urban Wage Earners and Clerical Workers - All Items (base year 1982-84=100),
published by the United State Bureau of Labor Statistics.

     (e) "Europa Center": that tract of land located in Chapel Hill Township,
Orange County, North Carolina, described in Exhibit A attached hereto and
incorporated herein, and all improvements situated thereon.

     (f) "Lease Year": each twelve (12) month period of the Term beginning with
August 15, 2001 and ending on August 14, 2004. The first Lease Year shall begin
on August 15, 2001 and shall end August 14, 2002.

                                      E-81
<PAGE>

     (g) "Leased Premises": the Rented Space, together with the nonexclusive
right to use the Common Areas as provided in Sections 23 and 24 of this Lease.

     (h) "Rentable Square Feet": the useable square feet of any area multiplied
by a core factor of 1.14.

     (i) "Rented Space": that office space area shown as the cross-hatched area
on Exhibit B attached hereto and incorporated herein, which is designated Suite
421 of the Europa Center and which consists of approximately 3312 Rentable
Square Feet.

     (j) "Term": the initial term of this Lease, and if the term is extended
pursuant to subsection (b) of Section 3 below, the extension term.

2.   DEMISE.         Subject to the terms and conditions stated in this Lease,
Landlord hereby leases the Leased Premises to Tenant, and Tenant hereby leases
the Leased Premises from Landlord.

3.   TERM.

     (a) Initial Term. The initial term of this Lease shall commence on the
earlier of: (1) the date that Tenant takes possession of any part of the Rented
Space, or (2) August 15, 2001. The initial term shall terminate at 11:59 P.M. on
August 14, 2004, if not sooner terminated by Landlord pursuant to the terms of
this Lease.

     (b) Extension Term. Provided that Tenant is not in default hereunder,
Tenant shall have the option to extend the term of this Lease for an extension
term of three (3) years, commencing August 15, 204 and ending August 14, 2007 at
11:59 P.M., if not sooner terminated by Landlord pursuant to the terms of this
Lease. Tenant's option to extend the term of this Lease shall automatically
expire if Tenant does not give Landlord written notice of its intention to
exercise the option on or before January 31, 2004.

     (c) No Reinstatement. No receipt of money by Landlord from Tenant or any
other party after the termination of this Lease shall reinstate, continue or
extend the Term or affect any notice of termination served on Tenant by
Landlord.

4.   RENT.

     (a) Initial Annual Base Rent. For the First Lease Year, Tenant shall pay to
Landlord annual base rent in the amount of $76,176.00, payable in equal monthly
installments of $6,348.00 each, commencing August 15, 2001. For each succeeding
Lease Year of the Term, Tenant shall pay to Landlord annual base rent as
determined pursuant to subsection (b) below, payable in equal monthly
installments commencing on the first day of each Lease Year. All monthly base
rent payments shall be due on the first day of each month in advance, without
notice or demand. All rent payments shall be made to Landlord at its address
shown in Section 33 below, or at such other place as Landlord may designate from
time to time in writing.

                                      E-82
<PAGE>

     (b) Adjustments to Annual Base Rent. At the end of each Lease Year of the
Term, the annual base rent to be paid to Landlord by Tenant for th upcoming
Lease Year will increase to four (4%) percent per Lease Year.

     (c) Base Rent for Partial Month. Base rent due for any partial month at the
beginning of the Term shall be $211.60 per day, payable in advance on the
Commencement Date. Base rent due for any partial month at the end of the Term
shall be determined on a per diem basis, using the then applicable annual base
rent.

     (d) Additional Rent. All other charges, costs and sums required to be paid
by Tenant to Landlord under this Lease shall be deemed to be additional rent,
and shall be collectable by Landlord as such.

     (e) Independent Covenant. The obligation to pay any and all rent hereunder
is a separate and independent covenant of Tenant, and no breach or alleged
breach by Landlord of the terms hereof shall give Tenant any right to withhold
or escrow any rental payments when due.

5.   LATE PAYMENT.   Tenant recognizes and acknowledges that if rent payments
are not received when due, Landlord will suffer damages and additional expense.
Tenant therefore agrees that a late fee equal to five (5%) percent of the rent
which is late may be assessed by Landlord as additional rent if the Landlord has
not received any monthly installment of annual rent or other rent or additional
rent due pursuant to this Lease within five (5) days of its due date. If any
check given in payment of rent is not honored when due, Landlord may assess the
late fee and may also require that subsequent rent payments be made by certified
or cashier's check. Landlord's rights under this Section 5 are in addition to
and may be exercised cumulatively with Landlord's rights and remedies under
Section 14 below.

6.   SECURITY DEPOSIT. Landlord acknowledges receipt from Tenant of the sum of
$6,348.00 which sum Landlord shall retain as security for the performance by
Tenant of each of its obligations under this Lease. The security deposit will be
placed in a non-interest bearing trust account with interest earned accruing to
LANDLORD. If Tenant fails at any time to perform its obligations, Landlord may
at its option apply the deposit, or so much thereof as is required, to cure
Tenant's default. If at any time prior to the termination of this Lease Landlord
depletes the deposit in whole or in part, Tenant shall immediately restore the
amount so used by Landlord. Unless Landlord uses the deposit to cure a default
of Tenant, or to restore the Leased Premises to the condition that Tenant is
required to leave them at the conclusion of the Term, Landlord shall within
thirty (30) days of the termination of the Lease refund so much of the deposit
as it continues to hold to Tenant, less any interest earned.

7.   USE OF LEASED PREMISES AND COMPLIANCE WITH LAW. The Leased
Premises shall be used only for general office purposes, and for no other
purposes without the Landlord's prior written consent. Tenant shall not use the
Leased Premises for any unlawful purpose or in any manner that might constitute
a nuisance. Tenant shall comply with all land use covenants and Rules and
Regulations (see Exhibit C) pertaining to the Leased Premises, and all
ordinances and regulations of governmental authorities applicable to the Leased
Premises.

                                      E-83
<PAGE>

8.   SIGNS. Landlord shall furnish, install and maintain a sign at the entry to
Tenant's office, and a Building directory at a convenient location in the
Building, listing the name of the Tenant and the suite number of Tenant's
entrance office. No other signage shall be installed by Tenant anywhere at the
Europa Center without Landlord's written consent, which may be withheld in
Landlord's sole discretion. Any other sign requested by the Tenant and approved
by Landlord which is of greater cost than the sign ordinarily furnished by the
Landlord shall be paid for by the Tenant, and shall be installed by the Landlord
at Tenant's expense

9.   CARE AND MAINTENANCE. Subject to the provisions of Section 29, Tenant
shall, at the Tenant's own expense, keep the Rented Space in good condition and
shall pay for the repair of any damages caused by the Tenant, its agents,
employees, invitees or contractors. Tenant shall make at its sole cost and
expense, replacements or restorations, in quality equivalent to or better than
the original work, as may be required to maintain the Rented Space in good
repair and condition, ordinary wear excepted. With respect to repairs requested
by Tenant to be performed by Landlord, the Tenant shall pay the Landlord for any
expense incurred by the Landlord, including overtime, in the event repairs,
alterations, decorating or other work in the Rented Space are not made during
ordinary business hours.

10.  ALTERATIONS BY TENANT.

     (a) Requirements. Tenant shall not do any painting or decorating, or erect
any partitions, make any alterations in or additions to the Rented Space or do
any nailing, boring or screwing into the ceilings, walls or floors (collectively
and individually, "Alterations") without the Landlord's prior written general
and specific consent in each and every instance, with the exception of picture
hanging and limited installation of shelving. Landlord may withhold its consent,
in its sole discretion. Unless otherwise agreed by Landlord and Tenant in
writing, the work on all such Alterations shall be performed either by or under
the direction of Landlord, but at the cost of Tenant. If the Landlord gives its
preliminary consent to any such Alterations, the Tenant shall furnish to the
Landlord for approval before commencement of the work or delivery of any
materials to the Europa Center all of the following:
         (i)   all plans and specifications;
         (ii)  names and addresses of all contractors;
         (iii) copies of all contracts;
         (iv)  all necessary permits;
         (v)   an indemnification of Landlord by all contractors in form and
               amount satisfactory to Landlord; and
         (vi)  certificates of insurance from all contractors performing labor
               or furnishing materials, insuring against any and all claims,
               costs, damages, liabilities and expenses which may arise in
               connection with such Alterations.

Within ten (10) business days of receiving all of the items specified in (i)
through (v) above, in full and complete form, Landlord shall specifically
approve or disapprove in writing each of the items. Tenant shall modify,
supplement or substitute such items as Landlord disapproves, pursuant to
Landlord's written instructions, and resubmit such items to Landlord for its
approval. Landlord shall respond in writing to each resubmission within ten (10)
business days. Tenant

                                      E-84
<PAGE>

shall not commence any work or have any supplies or materials delivered to the
Europa Center until it has received Landlord's specific written approval of all
such items.

     (b) No Interference or Disruption. The Alterations and all related
construction activities shall not interfere with the normal operations of the
Europa Center. The Landlord reserves the right to determine whether the
Alterations or any portion of them must be made after normal business hours.

     (c) Liability. Regardless of who performs any Alterations and
notwithstanding Landlord's consent thereto, Tenant shall hold the Landlord, its
agents and employees forever harmless from any and all liabilities of every kind
and description which may arise out of or be connected in any way with the
Alterations, unless as a direct result of willful misconduct or negligence. Any
mechanic's lien filed against the Rented Space or the Europa Center for work or
materials claimed to have been furnished to the Tenant shall be discharged of
record by the Tenant within ten (10) days after filing, at the Tenant's expense.
Upon completing any Alterations, the Tenant shall furnish the Landlord with
contractors' affidavits, full and final waivers of lien and receipted bills
covering all labor and materials expended and used. All Alterations shall comply
with all insurance requirements and with all ordinances and regulations of any
applicable public authority. All Alterations shall be performed in a good and
workmanlike manner, using first class materials.

     (d) Ownership. All Alterations, made by either party, including without
limitation all paneling, decorations, partitions, railings, mezzanine floors,
carpets, galleries, heating or air conditioning equipment, plumbing, electrical
machinery and equipment, shall become the property of Landlord and shall remain
upon and be surrendered with the Rented Space as a part of the Rented Space at
the end of the Term; provided that if requested by Landlord on termination of
this Lease, Tenant shall restore the Rented Space to the same condition as at
the Commencement Date. Furniture and movable trade fixtures which are installed
by Tenant at its expense, except for those referred to above, shall remain
Tenant's property and may be removed at any time prior to the termination of the
Term provided Tenant is not then in Default and further provided Tenant promptly
repairs any damage caused by such removal. Any such trade fixtures which Tenant
has the right to remove under the above provisions, or personal property
belonging to Tenant or to any invitee, assignee or subtenant, shall be deemed
abandoned by Tenant if not removed prior to termination of the Term, and shall
become the property of the Landlord without any payment or offset for the
property, if Landlord so elects. If the Landlord does not so elect, the Landlord
may remove any fixtures or property from the Leased Premises and store them at
the Tenant's sole risk and expense or dispose of them in any manner, including
the sale, scrapping or destruction thereof, and to the extent permitted by law
Tenant waives all claims against Landlord therefor. The Tenant shall repair and
restore, and save the Landlord forever harmless from, any and all damage to the
Leased Premises caused by such removal, whether by the Tenant or by the
Landlord.

11.  ACCEPTANCE OF LEASED PREMISES. Occupation of the Rented Space by Tenant
shall constitute acceptance of the Leased Premises AS IS, except for latent
defects and deficiencies specified in writing by Tenant to Landlord within ten
(10) days after Tenant's occupancy. Landlord makes no representation or
warranty, oral or written, as to the condition of

                                      E-85
<PAGE>

the Leased Premises nor as to the use or fitness of the Leased Premises for any
particular purpose except for general office use. Landlord shall not be
responsible for obtaining any governmental approvals or permits necessary to
enable Tenant to occupy or use the Leased Premises (other than the certificates
of occupancy or other approvals related to work done by Landlord to upfit the
Rented Space). Obtaining such approvals and certificates shall be the sole
responsibility of the Tenant. The Landlord shall not be responsible for
obtaining any certificate of occupancy or other approvals required in connection
with construction work done by the Tenant or contractors engaged by the Tenant.
Notwithstanding the foregoing, MoliChem shall have the right to terminate this
Lease without further obligation to Landlord in the event that Landlord fails to
tender complete and exclusive possession of the Rented Space by September 1,
2001, unless said delays are a direct result of tenant's [sic] scope of work or
interferrance [sic].

12.  DELAY IN COMMENCEMENT.  Landlord shall not be liable to Tenant or any third
party for failure to deliver possession of the Rented Space to Tenant on or
before the Commencement Date, if such failure is due to any of the following:
     (i)   labor disputes and/or material shortages;
     (ii)  force majeure or acts of God, including but not limited to abnormal
           weather conditions;
     (iii) the hold over or retention of possession of any other tenant,
           tenants, or occupants; or
     (iv)  any other circumstances beyond Landlord's reasonable control.

Under such circumstances, the Base Rent shall be abated until the Rented Space
is available for occupancy by Tenant, and no such failure to give possession on
the Commencement Date shall affect the validity of this Lease or the obligation
of the Tenant under this Lease. At the option of Landlord, to be exercised
within thirty (30) days of the Commencement Date, the Lease may be amended so
that the Term is extended by the period of time possession by Tenant is delayed.
The Rented Space shall not be deemed to be unready for Tenant's occupancy or
incomplete if:
     (i)   only minor or insubstantial details of construction, decoration or
           mechanical adjustment remain to be done in the Rented Space or any
           part of the Rented Space;
     (ii)  the delay in the availability of the Rented Space for occupancy shall
           be due to special work, changes, alterations or additions required or
           made by Tenant in the layout or finish of the Rented Space or any
           part thereof;
     (iii) the delay is caused in whole or in part by the delay of Tenant in
           submitting plans, supplying information, approving plans,
           specifications or estimates, giving authorizations or otherwise; or
     (iv)  the delay is caused in whole or in part by delay and/or default on
           the part of Tenant and/or its subtenant or subtenants.

In the event of any dispute as to whether the Rented Space are ready for
Tenant's occupancy, the decision of the Landlord's architect shall be final and
binding on the parties.

                                      E-86
<PAGE>

13.  ASSIGNMENT OR SUBLEASE.

     (a) Assignment. Tenant may not assign this Lease. If Tenant is not a
publicly owned corporation whose outstanding voting stock is listed on a
national securities exchange, then any transfer of any interest in Tenant that
results in a change of the controlling ownership of Tenant shall be deemed an
assignment of this Lease a default by Tenant hereunder; provided that nothing
herein shall be deemed to prohibit (i) a public offering of the stock of Tenant
pursuant to the Securities Act of 1933 and/or Securities Exchange Act of 1934,
as amended; or (ii) a transfer of ownership between the current owners of Tenant
and their spouses, children, or grandchildren by inter vivos or testamentary
transfer. Any involuntary transfer of any interest in Tenant or Tenant's
interest in this Lease shall be deemed an assignment of this Lease and a default
hereunder. Should Tenant be involved in a merger or sale of substantially all
the assets, said assignment can occur following proper notification in writing
to the Landlord.

     (b) Subletting. Tenant may not sublet the Leased Premises or any part
thereof without the prior written consent of Landlord, which shall not be
unreasonably withheld. In any event, Tenant shall not advertise or publicize the
Leased Premises for subletting whether through a broker, agent, representative
or otherwise at a rental rate less than that for which space in the Europa
Center is being offered for rent by Landlord. If Tenant seeks to sublet all or
any part of the Leased Premises, then the following shall apply:
         (1) Prior to entering into any sublease, Tenant shall notify Landlord
in writing of its intent to sublet all or a portion of the Leased Premises, such
notice to include a copy of the proposed sublease. At any time within fifteen
(15) business days afer service of said notice, Landlord shall notify Tenant
that:
         (i)   it consents to the sublease; or
         (ii)  it refuses to consent to the sublease; or
         (iii) with respect to a proposed sublease of the entire Rented Space,
               that it terminates this Lease effective as of the beginning of
               the proposed sublease term, which Landlord shall be fully
               empowered to do, at Landlord's option, if Tenant seeks to sublet
               the entire Rented Space; or
         (iv)  with respect to a proposed sublease of part of the Rented Space,
               that, effective as of the beginning of the sublease term, it
               amends the Lease to reduce the Rented Space by the portion of the
               Rented Space proposed to be sublet and further amends the Lease
               because of the reduction of the Rented Space so that all
               calculated items are reduced proportionately to the reduction in
               the Rentable Square Feet of the Rented Space.

         (2) If the Landlord refuses to consent to the proposed sublease, it
shall state the reason(s) why the proposed sublease is unacceptable; however,
Landlord's refusal shall be final and controlling. If Landlord consents to the
proposed sublease, then the following shall apply:
         (i)   if Tenant shall sublet the Leased Premises at a rental or other
               economic benefit in excess of the then current Base Rent, Fifty
               percent (50%) of such excess shall be for benefit of Landlord and
               shall be paid to Landlord in cash promptly when due under any
               such sublease as additional rent due under this Lease

                                      E-87
<PAGE>

         (ii)  Tenant agrees to pay to Landlord, on demand, all reasonable costs
               incurred by Landlord in connection with any request by Tenant for
               Landlord's consent to any sublease, including but not limited to
               reasonable attorney's fees and recording fees.
         (iii) any sublease shall not release Tenant from its liability under
               this Lease, or be deemed to permit any subsequent sublease.

14.  DEFAULT BY TENANT AND LANDLORD'S REMEDIES.

     (A) Events of Default. In addition to the other occurrences listed
elsewhere in this Lease, the occurrence of any one or more of the following
shall constitute a default hereunder:

         (1) If Tenant fails to pay any rent or other monetary payments as and
     when provided in this Lease;

         (2) If Tenant breaches any other agreement or obligation herein set
     forth and fails to cure such breach within ten (10) days after notice
     thereof; or if cure of the breach would require more than ten (10) days to
     effect, if Tenant fails to initiate action necessary to cure such breach
     within the ten (10) day period and to pursue such action diligently
     thereafter until the breach is cured;

         (3) If there is a levy, execution, attachment or taking of property,
     assets or the leasehold interest of Tenant by process of law or otherwise
     or in satisfaction of any judgment, debt or claim; or

         (4) If Tenant files, or has filed against it, any petition or action
     for relief under any debtor's relief law (including bankruptcy,
     reorganization or similar actions or proceedings) either in state or
     federal court.

     (b) Landlord's Rights and Remedies. In the event of any default,
Landlord may at any time thereafter, with thirty (30) day written notice or
demand and without limiting Landlord in the exercise of any right or remedy
which Landlord may have by reason of default:

         (1) Terminate this Lease.

         (2) Without terminating this Lease, terminate Tenant's right to
     possession of the Leased Premises, enter upon and take possession of the
     Leased Premises and rent the Leased Premises for a reasonable rental for
     the account of Tenant, and after paying from rents collected the reasonable
     costs of such entry, reletting and collection and the costs of any
     necessary repairs made by Landlord which Tenant is obligated to make
     hereunder, apply the remainder of the rent collected to the amounts due and
     to become due from Tenant hereunder;

         (3) Pursue any other remedy now or hereafter available to Landlord
     under this Lease or under the laws of the state of North Carolina.

                                      E-88
<PAGE>

All rights and remedies of Landlord pursuant to this Section shall be
cumulative, and may be exercised singly, successively or, if appropriate,
concurrently. In the event Landlord terminates this Lease or terminates Tenant's
right to possession of the Leased Premises, then Tenant shall surrender
possession of the Premises to Landlord, and Landlord shall have the full and
free right to enter into and upon the Rented Space with or without process of
law, to repossess the Rented Space, to expel or remove the Tenant and any others
who may be occupying or be within the Rented Space, to remove any and all
property from the Rented Space and to the [sic] change the locks on the Rented
Space, without being deemed in any manner guilty of trespass, eviction or
forcible entry or detainer. In any event of default by Tenant, Landlord shall be
entitled to recover from Tenant all damage incurred by Landlord by reason of
Tenant's default, including but not limited to: any unpaid rent; the cost of
recovering possession of the Premises, including reasonable attorney's fees;
expenses of reletting, including necessary renovation and alteration of the
Premises, reasonable attorney's fees, and any real estate commission actually
paid; any loss of future rental; and a pro rata portion of any leasing
commission paid by Landlord based on the number of days of any period for which
a commission was paid that remain after the date of Tenant's default. Any rent
unpaid when due, including additional rent not paid upon demand, shall bear
interest from the date due at the rate of twelve percent (12.00%) per annum.

     (c) Treatment of Tenant's Property. Any and all property which may be
removed from the Rented Space by the Landlord pursuant to the authority of the
Lease or law, to which the Tenant is or may be entitled, may be handled, removed
or stored by the Landlord at the risk, cost and expense of the Tenant, and
except strictly as required by law the Landlord shall in no event be responsible
for the value, preservation or safekeeping thereof. The Tenant shall pay to the
Landlord, upon demand, any and all expenses incurred in such removal and all
storage charges for such property so long as the property shall be in the
Landlord's possession or under the Landlord's control. Any such property of the
Tenant not retaken from storage by the Tenant within thirty (30) days after the
end of the term, however terminated, may be disposed of by Landlord in any
manner whatsoever, including without limitation, the sale, scrapping and/or
destruction of the property without any further obligation to the Tenant, and
Tenant shall pay to Landlord promptly on demand the reasonable expenses of such
disposal.

     (d) Landlord's Lien on Tenant's Interest. Tenant hereby grants to Landlord
a first lien upon the interest of Tenant under this Lease to secure the payment
of moneys due under this Lease, which lien may be enforced in equity.

     (e) Landlord's Lien on Tenants' [sic] Property. Tenant hereby grants to
Landlord a lien for the payment of rent, additional rent and all other moneys to
be paid by Tenant to Landlord hereunder, upon all of the goods, wares, chattels,
fixtures, furniture, equipment and other property of Tenant which may be in or
upon the Rented Space or the Europa Center. Such lien may be enforced in any
lawful manner by of [sic] the Landlord.

     (f) Landlord's Option to Cure. If Tenant defaults in the performance of any
of its obligations under this Lease, including without limitation, its
obligations under Section 9 hereof, then Landlord or any mortgagee or ground
lessee of Landlord may, at its option, cure such default, and Tenant shall pay
to Landlord or such mortgagee or ground lessor, as the case may be, the cost of
such cure immediately upon being billed for same.

                                      E-89
<PAGE>

     (g) No Waiver. The failure of Landlord to declare Tenant to be in default
at any time or to exercise any of its rights or remedies upon default any [sic]
by Tenant shall not be deemed to be a waiver by Landlord of any of its rights or
remedies hereunder.

15.  HOLDING OVER. In the event the Tenant remains in possession of the Rented
Space after the expiration of the Term without the written consent of Landlord,
then the Tenant shall be a tenant at sufferance from month to month only, and
the Tenant shall then be obligated to pay one hundred and fifty percent (150%)
of the then current Base Rent and all other sums then payable hereunder
("Holding Over Rent"), in equal installments on the first day of each calendar
month for so long as Landlord is kept out of possession of the Rented Space.
Neither such payment nor the acceptance of such payment shall in any way
constitute a waiver of the rights of Landlord to dispossess the Tenant and
recover possession of the Rented Space and the just and former estate of the
Landlord and to bring any action for damages suffered by Landlord on account of
Tenant's failure to vacate the Rented Space.

16.  SURRENDER OF RENTED SPACE. Upon the expiration or other termination of the
Term, Tenant shall quit and surrender to Landlord the Rented Space, broom clean,
in good order and condition, ordinary wear accepted [sic], and Tenant shall
remove all of its property except as otherwise provided in Section 10.

17.  DAMAGE TO RENTED SPACE OR BUILDING.

     (a) Landlord's Insurance. Landlord shall maintain standard fire and
extended coverage insurance covering the Building in an amount not less than 80%
(or such greater percentage as may be necessary to comply with the provisions of
any co-insurance clauses of the policy) of the "replacement cost" thereof as
such term is defined in the Replacement Cost Endorsement to be attached thereto,
insuring against special causes of loss (including the perils of fire and
lighting [sic]), such coverages and endorsements to be as defined, provided and
limited in the standard bureau forms prescribed by the insurance regulatory
authority for the State of North Carolina. Subject to the provisions of Section
19 below, such insurance shall be for the sole benefit of Landlord and under its
sole control.

     (b) Notice by Tenant. If the Rented Space is damaged or destroyed by any
peril covered by the insurance to be provided by Landlord under subparagraph (a)
above, Tenant shall give immediate written notice thereof to Landlord.

     (c) Extensive Damage. If the Rented Space is so damaged by any peril
covered by the insurance to be provided by Landlord under subparagraph (a) above
that rebuilding or repairs cannot in Landlord's estimation be completed within
sixty (60) days after the date upon which Landlord is notified by Tenant of such
damage, this Lease shall terminate, and the rent shall be abated during the
unexpired portion of this Lease, effective upon the date of the occurrence of
such damage.

     (d) Repairable Damage. If the Rented Space is damaged by any peril covered
by the insurance to be provided by Landlord under subparagraph (a) above, but
only to such extent that rebuilding or repairs can, in Landlord's estimation, be
completed within one hundred fifty (150)

                                      E-90
<PAGE>

days after the date upon which Landlord is notified by Tenant of such damage,
this Lease shall not terminate, and Landlord shall, at its sole cost and
expense, thereupon proceed with reasonable diligence to rebuild and repair the
Rented Space to substantially the condition in which it existed prior to such
damage, except that Landlord shall not be required to rebuild, repair or replace
any part of the partitions, fixtures, additions and other improvements which may
have been placed in, on or about the Rented Space by Tenant. There shall be
abatement of rent during any such period of rebuilding and repair, should Tenant
be unable to occupy said space.

     (e) Options to Terminate:

         (1) Notwithstanding anything herein to the contrary, in the event the
holder of any indebtedness secured by a mortgage or deed of trust covering the
Building requires that the insurance proceeds be applied to such indebtedness,
then Landlord or Tenant shall have the right to terminate this Lease by
delivering written notice of termination to Tenant within fifteen (15) days
after such requirement is made by any such holder, whereupon all rights and
obligations hereunder thereafter accruing shall cease and terminate.

         (2) Notwithstanding any other provision herein, if any portion of the
Rented Space is damaged or destroyed during the final Lease Year of the initial
term or any extension term of this Lease, then Landlord and/or Tenant shall have
the option to terminate this Lease upon written notice to Tenant and/or Landlord
within thirty (30) days of the date of such damage.

         (e) Notwithstanding any other provision herein, if any portion of the
Building other than the Rented Space is destroyed by fire or other destructive
force and Landlord, in its sole discretion, elects to cease operation of the
Europa Center as a result of such damage, then Landlord shall have the option to
terminate this Lease upon written notice to Tenant within thirty (30) days of
the date of such damage.

18.  TENANT'S INDEMNITY OF LANDLORD AND TENANT'S INSURANCE.

     (a) Tenant's Indemnity of Landlord. Tenant shall indemnify and save the
Landlord, Graham Associates, Ltd., and their respective agents and employees
harmless against any and all claims, demands, costs, and expenses, including
reasonable attorney's fees for the defense thereof, arising directly or
indirectly out of or in connection with Tenant's occupancy at the Europa Center
or from any breach or default on the part of Tenant in the performance of any
covenant or agreement on the part of Tenant to be performed pursuant to the
terms of this Lease, or from any act or negligence of Tenant, its agents,
servants, employees or invitees, in or about the Europa Center. Furthermore,
Tenant covenants to arrange defense of Landlord, Graham Associates, Ltd. and
their respective agents and employees from any such claim, demand or action by
counsel reasonably acceptable to Landlord.

     (b) Tenant's Commercial General Liability Insurance. Tenant shall at all
times during the Term, at its sole cost and expense, procure and maintain in
force and effect a policy or policies of commercial general liability insurance
issued by a company or companies from time to time approved by Landlord, which
companies must be authorized to transact business in North Carolina. Such policy
or policies shall insure against loss, damage or liability for injury to or

                                      E-91
<PAGE>

death of persons and loss or damage to property occurring from any cause
whatsoever in, upon or about the Europa Center. Such policies of public
liability insurance shall name Landlord as an additional insured and shall be in
amounts and afford coverage against perils as reasonably required from time to
time by Landlord. Coverage shall initially be in the single limit amount of one
million dollars ($1,000,000.00). Such policy or policies shall include
affirmative coverage of Tenant's indemnity of Landlord pursuant to subsection
(a) above.

     (c) Tenant's Property Insurance. Tenant shall obtain and maintain property
insurance upon its furniture, equipment, trade fixtures and any other personal
property of Tenant or of any third parties which may from time to time be
located in, on or around the Europa Center. Such insurance shall be maintained
in the amount of the full replacement cost of such property. All such policies
shall include a waiver of subrogation of any and all claims against the Landlord
and name the Landlord as an additional insured. Tenant shall look solely to its
insurance policy for recovery of any loss for any such property, and in no event
shall it make any claim against the Landlord for any loss to any such property,
unless such loss is a direct result of willful misconduct on the part of the
Landlord. The Tenant hereby releases Landlord from any such liability, and
Tenant shall indemnify and hold the Landlord harmless from and against any claim
of Tenant's insurance carrier or arising out of Tenant's failure to maintain
such insurance.

     (d) Tenant's Business Interruption Insurance. Tenant shall at all times
during the Term maintain business interruption insurance, insuring Tenant from
loss, damage, cost or expense from any disruption to or interruption of its
business resulting from damage to or malfunction of the Rented Space or the
Building or any components thereof or any of the systems (heating, plumbing,
mechanical or otherwise) or utilities serving them. Such insurance shall cover a
continuous period of disruption or interruption of not less than one hundred
eighty (180) days per occurrence.

     (e) Policies or Certificates of Insurance. At the request of Landlord, the
Tenant shall furnish certified copies of policies or certificates of insurance
in the form or on ACORD 27 bearing notations evidencing the payment of premiums
and evidencing the insurance coverage required to be carried by Tenant
hereunder. Each policy and certificate shall contain an endorsement or provision
requiring not fewer than thirty (30) days written notice to Landlord prior to
the cancellation, diminution in the perils insured against or reduction of the
amount of coverage of the particular policy in question.

19.  TENANT'S WAIVER OF CLAIMS; MUTUAL RELEASES.

     (a) Tenant's Waiver of Claims. Except with respect to any act or omission
of Landlord or its employees, agents or contractors to the extent permitted by
law, the Tenant releases the Landlord and Graham Associates, Ltd. and their
respective agents and servants from, and waives all claims for damage or injury
to person or property or disruption to business sustained by Tenant or any
occupant of the Europa Center, the Building or the Rented Space, or any part or
any of them, resulting from any accident, mishap or other occurrence in or about
the Europa Center, whatever the cause. This shall include but not be limited to,
the flooding of basements or other subsurface areas, and damage caused by
refrigerators, sprinkling devices, air conditioning and/or electrical equipment,
water, snow, frost, steam, excessive heat or cold,

                                      E-92
<PAGE>

falling plaster, broken glass, sewage, gas, odors or noise or the bursting or
leaking of pipes or plumbing fixtures, and shall apply equally whether any such
damage results from the act or neglect of the Landlord, Graham Associates, Ltd.,
other tenants, occupants or servants in the Building or any other person, and
whether such damage be caused or result from any thing or circumstance above
mentioned or referred to, or any other ting or circumstance whether of a like
nature or of a wholly different nature.

     (b) Landlord's Release. Notwithstanding anything to the contrary contained
in this Lease, Landlord hereby releases Tenant from any and all liability for
loss or damage caused by fire or any of the extended coverage perils coverable
by the insurance required to be carried by Landlord in subsection 17(a) above,
even if the insured peril shall be brought about by the default, negligence or
other action of the Tenant, its agents, employees, invitees or any of them.

     (c) Tenant's Release. Notwithstanding anything to the contrary contained in
this Lease, Tenant hereby releases Landlord from any and all liability for loss
or damage coverable by the insurance required to be carried by Tenant in Section
18 above, even if the insured peril shall be brought about by the default,
negligence or other action of the Landlord, its agents, employees, tenants,
invitees or any of them.

20. EMINENT DOMAIN. If all of the Rented Space, or such part thereof as will
make the same unusable for the purposes contemplated by this Lease, be taken
under the power of eminent domain (or a conveyance in lieu thereof), then this
Lease shall terminate as of the date possession is taken by the condemner, and
rent shall be adjusted between Landlord and Tenant as of that date. If only a
portion of the Rented Space is taken and Tenant can continue use of the
remainder, then the Lease will not terminate, but rent shall abate in a just and
proportionate amount to the loss of use occasioned by the taking. Tenant shall
have no right or claim to any part of any award made to or received by Landlord
for any taking and no right or claim for any alleged value of the unexpired
portion of this Lease; provided, however, that Tenant shall not be prevented
from making a claim against the condemning party (but not against Landlord) for
any moving expenses, loss of profits, or taking of Tenant's personal property
(other than its leasehold estate) to which Tenant may be entitled. In the event
of a temporary taking of ninety (90) days or less, this Lease shall not
terminate, but the term of this Lease shall be extended by the period of the
taking and the rent shall abate in proportion to the area taken for th period of
such taking.

21.  UTILITIES AND OTHER SERVICES.

     (a) Standard Services. Landlord shall furnish:
         -----------------
         (1) Heat and/or air conditioning to maintain the Rented Space at a
reasonably comfortable temperature from 6:00 a.m. until 11:59 p.m. on Monday
through Friday, 8:00 a.m. until 6:00 p.m. on Saturdays and 10:00 a.m. to 6:00
p.m. on Sundays, except New Year's Day, Memorial Day, Independence Day, Labor
Day, Thanksgiving, and Christmas Day.
         (2) During the times specified in Subsection (a) above, Landlord shall
furnish the Rented Space, at no cost to Tenant, with electricity and maintenance
of building standard fluorescent lighting, composed of 2' x 4' fixtures.
Incandescent fixtures, table lamps, all lighting other than the building
standard fluorescent lighting, dimmers and all lighting controls other than
controls for the aforesaid building standard fluorescent lighting shall be
serviced and

                                      E-93
<PAGE>

maintained by Tenant at Tenant's expense. Landlord shall also furnish the Rented
Space, at no additional cost, with electricity for lighting other than the
building standard fluorescent lighting and for the operation of general office
machines, such as personal computers, electric typewriters, dictating equipment,
adding machines and calculators, and general service non- production type office
copy machines. Landlord shall have the right to enter and inspect the Rented
Space and all electrical devices therein from time to time with reasonable
notice.
         (3) Elevator service in the Building.
         (4) Janitorial and cleaning services Monday through Friday of each
week, except the holidays listed above. Landlord's cleaning service shall
include emptying of normal office trash cans and disposing of their contents.
Tenant shall dispose of all other refuse, boxes, cans, books, abandoned
furniture and all other large, unusual or heavy items at Tenant's sole cost and
expense and shall not permit the accumulation thereof in the Rented Space or
elsewhere in the Building or at the Europa Center. It is understood that
employees of Landlord are prohibited as such from receiving any packages or
other articles delivered to the Building for Tenant and that, should any such
employee receive any such packages or articles, he or she in doing so shall be
the agent of Tenant and not of Landlord. Landlord shall not be liable in anyway
for any damage or inconvenience caused by the cessation or interruption of such
heating, air conditioning, electricity, elevator, or janitor or cleaning service
occasioned by fire, accident, strikes, break down, necessary maintenance,
alterations, repairs, replacements, conduct of other tenants, requirements of
public authority or causes beyond Landlord's control.

     (b) Extended Services. In the event that Tenant desires to utilize any of
Landlord's services specified in this Section beyond the hours or permitted use,
Tenant shall, prior to such use, request permission from the Landlord and
obtain, in writing, signed by Landlord and Tenant, an agreement specifying the
charge for such use to be paid by Tenant to Landlord and the time of such
payment. In the event that Tenant makes any such use without such request and
mutual agreement, then, and in such event, Tenant covenants and agrees to pay to
Landlord for such use an amount determined by Landlord's selected engineer, upon
demand.

     (c) Special Equipment of Tenant. For computers and all other equipment
requiring heavier than the normal office use of electricity, Tenant shall
separately meter (or submeter, if approved by Landlord in writing), at its
expense, the electricity serving such equipment and shall pay upon demand all
costs to Landlord for such utility consumption; or, in the alternative, Tenant
shall, prior to utilizing any such equipment, enter into a written agreement
with Landlord specifying the charge for such use to be paid by Tenant to
Landlord, the time of such payment and the method of determining increases from
time to time as rates change or such use by Tenant is changed. In the event that
Tenant makes any such use without such request and mutual agreement, then, and
in such event, Tenant covenants and agrees to pay to Landlord for such in an
amount determined by Landlord's selected engineer, upon demand. Landlord may
cause an electric check meter to be installed in the Leased Premises or cause a
reputable independent electrical engineering or consulting firm to survey and
determine the value of the electric service furnished for such excess electric
current, the cost of either of which shall be paid by Tenant. Tenant shall be
responsible for all repairs, maintenance, replacements and service to all
equipment serving Tenant's computers and other special equipment, including
without limitation HVAC equipment. Tenant covenants to pay for its electrical
consumption referred to in this

                                      E-94
<PAGE>

paragraph in a timely fashion, which covenant shall survive the expiration or
earlier termination of this Lease as hereinafter provided.

22.  COVENANT OF TITLE AND QUIET ENJOYMENT. Landlord covenants that it has full
right and power to execute this Lease and to grant the estate demised in this
Lease. The Landlord's title is and always shall be paramount to the title of the
Tenant, and nothing herein contained shall empower the Tenant to do any act
which can, shall or may encumber such title. Landlord also covenants that if
Tenant promptly and punctually complies with each of its obligations hereunder,
it shall peacefully have and enjoy the possession of the Leased Premises during
the term of this Lease, provided that no action of Landlord in repairing or
restoring the Rented Space or in working in other space in the Building, shall
be deemed a breach of this covenant.

23.  COMMON AREAS.

     (a) Nonexclusive Right of Use. Tenant shall have the right together with
other tenants and occupants and invitees to the non-exclusive use of the
sidewalks, driveways, stairways, halls, lobbies, elevators and passages in the
Building and at the Europa Center for reasonable ingress to and egress from the
Rented Space, and for no other purpose, subject to the other provisions of this
Lease, including without limitation the Rules and Regulations in Exhibit C.

     (b) Controlled Access. The Common Areas and roof 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
interests of the the [sic] Europa Center and its tenants.

     (c) Landlord's Right to Close or Alter. The Landlord reserves the right
to use any portion of the Common Areas from time to time and/or to deny access
to the same temporarily in order to repair, maintain or restore such facilities
or to construct improvements under, over, along, across and upon the same, and
to relocate such Common Areas, for the benefit of the Europa Center and its
tenants.

24.  USE OF PARKING FACILITIES. Subject to the other provisions of this Lease,
Tenant shall have free non-exclusive use of parking facilities, driveways and
islands for Tenant, Tenant's employees, Tenant's business invitees and Tenant's
agents, from 6:00 a.m. through 11:00 p.m. each day of the week. Such areas for
non-exclusive parking spaces shall serve all tenants, their employees, business
invitees and agents; provided, however, that at no time during any day of the
original or extended term of this Lease shall the aggregate number of
non-exclusive parking spaces actually occupied by Tenant, Tenant's employees,
business invitees and agents exceed 10 of the parking spaces on the site (which
figure is a maximum number of spaces to be utilized by or for the Tenant at any
one time, but Landlord in no respect guarantees that such number of spaces will
in fact be available at any one time for the Tenant). Tenant shall upon written
notice from Landlord, within five (5) days, furnish Landlord, or its authorized
agent, the state motor vehicle license number assigned to each of its motor
vehicles to be parked on the site and the motor vehicles of all of its employees
employed in the Rented Space. Tenant shall not at any

                                      E-95
<PAGE>

time park any trucks or any delivery vehicles in the parking areas or driveways,
except as specifically designated by Landlord from time to time, and shall
confine all truck parking, loading and unloading to times and locations
specifically designated by Landlord from time to time. Tenant shall require all
trucks servicing Tenant to be promptly loaded or unloaded and removed from the
site. Landlord hereby reserves the exclusive right with respect to the use of
parking facilities, roadways, sidewalks, driveways, islands and walkways for
advertising purposes. Tenant covenants and agrees to enforce the provisions of
this Lease against Tenant's employees and business invitees. Landlord may from
time to time circulate free parking stickers for the purpose of identifying
motor vehicles of Tenant and Tenant's employees and/or circulate free validation
tickets for the purpose of identifying Tenant's business invitees. Landlord
shall have the right, but not the obligation: (a) to police said parking
facilities, (b) to provide parking attendants, (c) to cause unauthorized and/or
unstickered motor vehicles to be towed away at the sole risk and expense of the
owner of such motor vehicles, (d) to designate certain parking spaces to be for
the exclusive use of the handicapped, for the exclusive use of certain tenants
and/or for the exclusive use of visitors, (e) to use any portion of the parking
facilities from time to time and/or to deny access to the same temporarily in
order to repair, maintain or restore such facilities or to construct
improvements, under, over, along, across and upon the same for the benefit of
the site and to grant easements in the Parking facilities to public and
quasi-public authorities and, (f) to adopt and modify from time to time rules
and regulations for parking and vehicular ingress and egress, for traffic speed
and flow and for times and places for move-ins, move-outs and deliveries.

25.  INFORMATION CONCERNING TENANT. Tenant shall furnish within fifteen (15)
days afer request from Landlord such current information concerning the
financial condition of Tenant as Landlord may reasonably require. Such financial
information shall include (but is not necessarily limited to) a financial
statement dated not more than twelve (12) months prior to Landlord's request.
Such financial statement shall be prepared in accordance with generally accepted
accounting principles and certified by a certified public accountant. A general
partner or officer or manager of Tenant shall furnish a certification to
Landlord to the effect that there either has or has not been any material
adverse change in the financial condition of Tenant since the date of the
financial statement submitted, and if such certification states that there has
been a material adverse change, furnishing such details concerning same as
landlord [sic] may request. If Tenant does not execute and return such
certificate as required above, Tenant hereby irrevocably appoints Landlord as
its attorney in fact to execute such certificate on behalf of Tenant.

26.  AUTHORITY OF TENANT. Tenant shall furnish to Landlord within fifteen (15)
days after request from Landlord such corporate or company resolutions,
certificates of incumbency, partnership resolutions, partnership agreements,
operating agreements, bylaws or legal opinions or other information as Landlord
may reasonably request in order to confirm that the execution and delivery of
this Lease has been duly authorized by Tenant and that the person(s) executing
this Lease on behalf of Tenant were duly authorized to do so. All such company,
corporate or partnership resolutions, certificates or agreements shall be
certified as being duly adopted and/or in full force and effect, without
amendment, by an appropriate officer, manager or partner of Tenant.

                                      E-96
<PAGE>

27.  ESTOPPEL. Within ten (10) days after request therefore [sic] by Landlord,
Tenant agrees to execute and deliver to Landlord a certificate prepared by
Landlord to any proposed mortgagee, ground lessee or purchaser of the Europa
Center or to Landlord certifying (if such is the case) that this Lease is in
full force and effect, that there are no defenses or offsets thereto, or stating
those claimed by Tenant, and such other facts related to this Lease, the Leased
Premises or Tenant as Landlord may request, if and only to the extent that the
statements contained therein are at that time true. If Tenant does not execute
and return such certificate as required above, Tenant hereby irrevocably
appoints Landlord as its attorney in fact to execute such certificate on behalf
of Tenant.

28.  RIGHT TO RELOCATE.

     (a) Substitute Premises. Landlord, at its option, may substitute for the
Rented Space other space(hereafter called "Substitute Space") within the
Building before the Commencement Date or at any time during the Term. As far as
is reasonably possible, the Substitute Space shall have comparable Rentable
Square Feet and a configuration substantially similar to the Rented Space.
Landlord shall pay Tenant's reasonable cost of moving Tenant's furnishings,
trade fixtures, inventory, and existing telephone system to the Substitute
Space. Except as provided in this Section, Landlord shall not be liable or
responsible in any way for damages or injuries suffered by Tenant pursuant to
the relocation in accordance with this Section, including, but not limited to,
loss of goodwill, business or profits.

     (b) Notice. Landlord shall give Tenant at least sixty (60) days notice of
its intention to relocate Tenant to the Substitute Space. This notice will be
accompanied by a floor plan of the Substitute Space. After such notice, Tenant
shall have seven (7) calendar days within which to accept in writing the
proposed Substitute Space. If Tenant does not accept the Substitute Space within
such period of time, this Lease shall terminate at the end of sixty (60) days
following the service of notice on the Tenant.

     (c) Alteration of Substitute Space. Landlord agrees to construct or alter,
at its own expense, the Substitute Space as expeditiously as possible so that it
is in substantially the same condition that the Rented Space was in immediately
prior to the relocation. Landlord shall have the right to reuse the fixtures,
improvements, and alterations used in the Rented Space. Tenant agrees to occupy
the Substitute Space as soon as Landlord's work is substantially completed.
Landlord shall be responsible for all expenses related to the relocation such as
stationary, business cards, marketing literature, telephone and computer
networks.

     (d) Rent During and After Relocation. Except as provided above, all of
Tenant's obligations under this Lease, including the payment of rent, will
continue despite Tenant's relocation to the Substitute Space. Upon substantial
completion of the Substitute Space, this Lease will apply to the Substitute
Space as if it had been the Rented Space originally described in the Lease,
Tenant shall use all reasonable efforts to open for business in the Substitute
Space as quickly as is reasonably possible under the circumstances.

29.  LANDLORD'S ACCESS TO RENTED SPACE. The Tenant shall permit the Landlord to
erect, use and maintain pipes, ducts, wiring and conduits in and through the
Rented Space. The

                                      E-97
<PAGE>

Landlord or Landlord's agent shall have the right to enter upon the Rented
Space, to inspect them, to perform janitorial and cleaning services and to make
such repairs or alterations to the Rented Space or the Building as the Landlord
may deem necessary or desirable, and the Landlord shall be allowed to take all
material into and upon the Rented Space that may be required for repairs and
alterations without the same constituting an eviction of the Tenant in whole or
in part, and the rent reserved shall in no wise abate(except [sic] as provided
in Section 17) while repairs and alterations are being made, by reason of loss
or interruption of business of the Tenant, or otherwise. If the Tenant shall not
be personally present to open and permit an entry into the Rented Space at any
time when for any reason an entry into the Rented Space shall be necessary or
permissible, the Landlord or Landlord's agents may enter the same by a master
key, or may forcibly enter the same, without rendering the Landlord or such
agents liable therefore [sic] (if during such entry Landlord or Landlord's
agents shall accord reasonable care to Tenant's property) and without in any
manner affecting the obligations and covenants of this Lease. Nothing herein
contained, however, shall be deemed or construed to impose upon the Landlord any
obligations, responsibility or liability whatsoever, for the care, supervision
or repair of the Building or any part thereof, other than as provided in this
Lease. The Landlord shall also have the right at any time without the same
constituting an actual or constructive eviction and without incurring any
liability to the Tenant therefor, to change the arrangement and/or locations of
entrances and passageways, doors and doorways, and corridors, elevators,
toilets, parking areas and other Common Areas. The Landlord shall have the right
to show the Rented Space to prospective new tenants during the last 120 days of
the Term. The Landlord shall not be liable to the Tenant for any expense,
injury, loss or damage resulting from work done in or upon, or the use of, any
adjacent or nearby building, land, street or alley.

30.  MANAGING AGENT. Landlord reserves the right to designate a Managing Agent
and to delegate any or all of Landlord's powers, duties, obligations, or rights
under this Lease to the Managing Agent. To the extent Landlord's duties or
obligations under this Lease are assumed in writing by the Managing Agent,
Landlord shall not be responsible for the assumed duties or obligations.
Tenant's rights and obligations under this Lease shall not be affected by
designation of a Managing Agent by the Landlord.

31.  SUBORDINATION. This Lease is subject and subordinate to all security liens,
mortgages, deeds of trust and related financing instruments which may now or
hereafter affect the Europa Center or any part thereof, and to all renewals,
modifications, consolidations, replacements, amendments and extension thereof,
unless Landlord or any lender secured by a mortgage, deed of trust or similar
security instrument elects to make this Lease superior to same, which it may do
at its option. Tenant shall execute within ten (10) days after request any
certificate, subordination agreement, priority agreement or other form of
instrument in confirmation of such subordinate or superior status that Landlord
may request, including an agreement to attorn. Tenant hereby irrevocably
appoints Landlord its attorney in fact to execute and deliver any such
instrument on behalf of Tenant if Tenant fails or refuses to execute or deliver
same as required by this Lease. Tenant shall also execute within ten (10) days
after request an agreement with any lender pursuant to which Tenant agrees to
give such lender a minimum period of sixty (60) days after Tenant's notice to
such lender for the lender to cure Landlord's default prior to Tenant's
terminating this Lease due to Landlord's default.

                                      E-98
<PAGE>

32.  RESERVATION OF RIGHTS. Landlord hereby reserves to itself and its
successors and assigns the following rights (all of which are hereby consented
to by Tenant):

     (a) to change the street address and/or name of the Building and/or the
         arrangement and/or location of entrances, passageways, doors, doorways,
         corridors, elevators, stairs, toilets or other public parts of the
         Building;

     (b) to grant to anyone the exclusive right to conduct any particular
         business or undertaking in the Building; and

     (c) to construct future phases of the Europa Center attached to the
         Building.

Landlord may exercise any or all of the foregoing rights without being deemed to
be guilty of an eviction, actual or constructive, or a disturbance or
interruption of the business of Tenant or Tenant's use or occupancy of the
Leased Premises.

33.  NOTICES.  Any notices which Landlord or Tenant requires or desires to give
to the other relating to this Lease or the Leased Premises must be in writing
and shall be deemed sufficiently given and delivered if:

     (a) Hand-delivered to the following addresses:

         If to Landlord:          Europa Center LLC
                                  c/o Graham Associates, Ltd.
                                  100 Europa Drive, Suite 190
                                  Chapel Hill, NC  27514

         If to Tenant:            MoliChem R&D, Inc.
                                  100 EUROPA DRIVE
                                  SUITE 421
                                  CHAPEL HILL, NC, 27514

                                      -OR-

     (b) Sent by facsimile transmission to the following facsimile numbers:

         If to Landlord:          The Trustees of the Frank H. Kenan 1988 Trust
                                  c/o Graham Associates, Ltd.
                                  Facsimile No. (919) 929-7913

         If to Tenant:            ----------------------------------------------
                                  ----------------------------------------------

Either party may change its designated facsimile number for receipt of notice by
written notice to the other party pursuant to this Section 33.

                                      E-99
<PAGE>

34.  ENTIRE AGREEMENT; MODIFICATION. This Lease contains the entire agreement of
the parties in regard to the Leased Premises. There are no oral agreements
existing between them and there shall be no oral changes. Neither Landlord nor
any agent of Landlord has made any representations, warranties or promises with
respect to the Rented Space, the Building or the Europa Center, or the use of
any amenities or facilities, except as expressly set forth in this Lease. Any
agreement made after this Lease is signed shall be ineffective to change, waive,
modify, discharge, or terminate it in whole or in part unless such agreement is
in writing and executed by both Landlord and Tenant.

35.  RIDERS AND EXHIBITS. All riders and exhibits attached to this Lease and
initialed by the Landlord and Tenant are hereby made a part of this Lease as
though inserted in this Lease. The following Exhibits are attached hereto and
incorporated herein:

                     Exhibit A        Site of Europa Center
                     Exhibit B        Sketch of Rented Space
                     Exhibit C        Rules and Regulations

36.  SECTION HEADINGS. The headings of sections are for convenience only and do
not limit or alter the contents of the sections.

37.  NUMBER AND GENDER. The words "Landlord" and "Tenant" wherever used in the
Lease shall be construed to mean plural where necessary, and th necessary
grammatical changes required to make the provisions hereof apply either to
corporations, partnerships or individuals, men or women, shall in all cases be
assumed as though in each case fully expressed.

38.  GOVERNING LAW. This Lease shall be governed and construed pursuant to the
laws of North Carolina.

39.  SEVERABILITY. If any term, covenant or condition of this Lease or the
application thereof to any person or circumstance shall, to any extent, be
invalid or unenforceable, the remainder of this Lease shall not be affected
thereby; and each term, covenant or condition of this Lease shall be valid and
be enforced to the fullest extent permitted by law.

40.  MODIFICATION BY MORTGAGEE. Should any mortgagee or ground lessee of
Landlord require a modification or modifications of this Lease, which
modification or modifications will not bring about any increased cost or expense
to Tenant or in any other way substantially change the rights and obligations of
Tenant hereunder, then Tenant shall execute a written modification to such
effect within ten (10) business days of request by Landlord.

41.  BINDING EFFECT.  Each provision of this Lease shall extend to and shall
bind and inure to the benefit of the Landlord and the Tenant and their
respective heirs, legal representatives, successors and assigns.

42.  LIMITATION ON RIGHT OF RECOVERY AGAINST LANDLORD. Tenant acknowledges and
agrees that the liability of Landlord under this Lease shall be limited to its
interest in the Europa Center and any judgments rendered against Landlord shall
be satisfied

                                     E-100
<PAGE>

solely out of the proceeds of the sale of its interest in the Europa Center. No
personal judgment shall lie against Landlord upon extinguishment of its rights
in the Europa Center and any judgment so rendered shall not give rise to any
right of execution or levy against Landlord's assets. The provisions hereof
shall inure to Landlord's successors and assigns, including any Mortgagee. The
foregoing provisions are not intended to relieve Landlord from the performance
of any of Landlord's obligations under this Lease, but only to limit the
personal liability of Landlord in case of recovery of a judgment against
Landlord; nor shall the foregoing be deemed to limit Tenant's rights to obtain
injunctive relief or specific performance or to avail itself of any other right
or remedy which may be awarded Tenant by law or under this Lease.

43.  BROKERAGE. The Tenant and Landlord each represents to the other that it has
dealt directly with and only with GRAHAM ASSOCIATES, LTD. and GRUBB & ELLIS
THOMAS LINDERA are the brokers in connection with this Lease, and that no other
broker procured this Lease or is entitled to any commission in connection with
the Lease and in the event either party has hired another broker such hiring
party shall indemnify, defend and hold forever harmless the other party from and
against any claim by such hired broker and from and against any and all costs
directly or indirectly arising out of any such hiring.

44.  CONFIDENTIALITY. The terms of this Lease are confidential. Neither Landlord
nor Tenant shall disclose any term of this Lease, including but not limited to
any rental provision, to any third party; provided that Landlord shall have the
right to disclose terms to a prospective or existing investor, mortgagee, ground
lessee or purchaser, and Tenant shall have the right to disclose terms to
Tenant's bank, Tenant's accountants, Tenant's attorneys and other professional
[sic] bound by an obligation of confidentiality to Tenant. Both parties shall
require any third parties to whom they disclose information regarding this Lease
to keep the information confidential. It is understood that Tenant may divulge
contents of this lease to it [sic] Shareholders, Board Members, Potential
Investors and Advisors.

IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Lease, to be
effective as of the date first stated above.

                                LANDLORD: Europa Center, LLC

                                BY: Graham Associates, Ltd., Agent

Attest:                                   /s/ John P. Graham
       ---------------------    ------------------------------------------------
         , ____ Secretary                John P. Graham, President

                                TENANT:    Education Foundation Inc.
[sic]

Attest:                         By:      /s/ Luis Molina
       ---------------------    ------------------------------------------------
         ,_____Secretary        Luis Molina, President & Chief Executive Officer

                                     E-101

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00030-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00030-of-00352.parquet"}]]