Document:

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                                                                   EXHIBIT 10.16

STATE OF NORTH CAROLINA
                                                           AMENDED AND RESTATED
COUNTY OF WAKE                                               LEASE AGREEMENT

     THIS AMENDED AND RESTATED LEASE AGREEMENT (the "Lease") is made, entered
into and effective as of July 1, 1999, by and between WAKEMED PROPERTY SERVICES
(formerly known as Wake County Health Facilities and Services Authority, Inc.),
a North Carolina nonprofit corporation (hereinafter called the "Landlord"), and
LIPOMED, INC., a North Carolina corporation (hereinafter called the "Tenant").

                                   WITNESSETH

     WHEREAS, Landlord and Tenant are parties to that certain Lease Agreement
dated as of August 8, 1997, as the same has been amended by that certain
Amendment No. 1 to Lease Agreement dated as of November 1, 1997, that certain
Amendment No. 2 to Lease Agreement dated as of February 6, 1998, that certain
Amendment No. 3 to Lease Agreement dated as of May 21, 1998 and that certain
Amendment No. 4 to Lease Agreement dated as of September 22, 1998 (collectively,
the "Original Lease").

     WHEREAS, the parties desire to amend and restate in its entirety the
Original Lease as set forth in this Lease.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties to this Lease hereby agree to amend and
restate in its entirety the Original Lease as follows:

     1.   Premises. The Landlord hereby leases to the Tenant and the Tenant
          --------
hereby hires and takes from the Landlord the space being more particularly
described on the attached floor plan designated Exhibit A (hereinafter called
                                                ---------
the "Premises") consisting of seven thousand four hundred forty-eight (7,448)
square feet of net rentable area in the building (hereinafter called the
"Building") situated on the parcel of land described on attached Exhibit B
                                                                 ---------
(hereinafter called the "Land") located in the City of Raleigh, State of North
Carolina, together with the right to the use of and benefit from, in common with
others, the areas of the Building intended for the general common use and
benefit of all tenants of the Building (hereinafter called the "Common Area").

     2.   Use.
          ---

          (a)   The Building was designed to provide medical office space to
     health care professionals, and the Premises shall be used and occupied by
     the Tenant only for purposes consistent with the character of the Building
     and all other uses incidental and related to providing health care in Wake
     County, North Carolina. In order that the Building may serve the health
     care needs of the Raleigh area generally, the Tenant agrees that all

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     medical equipment used by Tenant on the Premises shall be approved by the
     Landlord (which approval shall not be unreasonably withheld). The Landlord
     acknowledges that the Tenant shall have the right to acquire and operate
     equipment and perform procedures customarily and reasonably associated with
     an office practice in Tenant's medical specialty or subspecialty; provided,
     however, that the Tenant acknowledges that the Landlord does not intend to
     approve substantial medical equipment or medical procedures which
     unnecessarily duplicate hospital services such as fixed x-ray and cardiac
     catheterization equipment. The parties hereto agree that the equipment,
     fixtures and procedures described on attached Exhibit C have been approved
                                                   ---------
     by Landlord pursuant to this Article 2. Tenant shall occupy the Premises,
     conduct its business and control its agents, employees, invitees and
     visitors in a lawful manner and will not create any nuisance or otherwise
     interfere with, annoy or disturb any other tenant in its normal business
     operations or the Landlord it its management of the Building. The Tenant
     shall abide by and observe all reasonable and uniform rules and regulations
     promulgated from time to time by Landlord for the operation, safety,
     security and maintenance of the Building.

          (b)   Tenant shall not damage any demising wall of the Building, or
     disturb the integrity and support provided by any demising wall and shall,
     at its sole cost and expense, promptly repair any damage or injury to any
     demising wall caused by Tenant or its employees, agents or invitees.

     3.   Lease Term and Condition of Premises.
          ------------------------------------

          (a)   The term of this Lease (the "Lease Term") shall commence on July
1, 1999 (the "Commencement Date") and shall end at midnight on June 30, 2002
(the "Expiration Date"), unless sooner terminated pursuant to the terms of this
Lease or extended pursuant to Article 3(b) below.

          (b)   Provided that Tenant is not in default hereunder, prior to the
expiration of the initial term of this Lease (as provided in Article 3(a)
above), Tenant may elect to renew this Lease for one (1) additional term of two
(2) consecutive years; provided, however, that such renewal shall be effective
and binding on the parties hereto if, and only if, Landlord and Tenant through
good faith negotiations reach mutual written agreement as to the terms and
conditions of such renewal term. Such negotiated terms shall include (without
limitation) the amount of Basic Rent and annual rent increases (which increases
shall, in no event, be less than 3% per year). Tenant shall notify Landlord in
writing of its election to enter into such negotiations no less than ninety (90)
days prior to the Expiration Date.

          (c)   The Premises shall be accepted by Tenant "as is," and Landlord
makes no representation or warranty as to the condition of the Premises, or to
repair or maintain the Premises, except as expressly provided

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herein. The taking of possession by Tenant shall be deemed conclusively to
establish that the Premises and any improvements thereto are in good and
satisfactory condition as of when possession was taken. Tenant further
acknowledges that no representations as to the repair of the Premises, nor
promises to alter, remodel or improve the Premises have been made by Landlord,
unless such representations or promises are expressly set forth in this Lease.

     4.   Preparation for Occupancy. The Premises shall be prepared for
          -------------------------
occupancy by Tenant in accordance with plans and specifications obtained by
Tenant (the "Plans"), and such Plans shall include the addition of a loading
dock to the Building. The Plans shall be subject to the review and approval of
Landlord, and shall be attached hereto and made a part hereof as Exhibit D upon
                                                                 ---------
such approval by Landlord. The upfit to be performed by Tenant pursuant to the
Plans shall be referred to as the "Tenant's Work". Tenant shall act to insure
that the upfit of the Premises is commenced promptly and completed no more than
one hundred twenty (120) days after the Commencement Date (the "Completion
Date"). The parties agree that all of Tenant's Work shall be performed at
Tenant's sole cost and expense; provided, however, that Landlord shall loan to
Tenant (the "Loan") an amount not to exceed Ninety-one Thousand Four Hundred
Eighty-one and No/100 ($91,481.00) for the sole purpose of paying for the work
contemplated by the Plans. The Loan shall be added to the current outstanding
principal amount of all other indebtedness of Tenant to Landlord (currently,
$22,630.30) and the aggregate amount thereof shall be evidenced by a promissory
note (the "Note") from Tenant to Landlord in the form of Exhibit E attached
                                                         ---------
hereto and made a part hereof. Tenant shall repay the Loan in accordance with
the terms of the Note, and payments under the Note shall be deemed Additional
Rent (as defined in Article 5(b)). Landlord shall have the right to approve the
general contractor selected by Tenant for the performance of the work
contemplated by the Plans, which approval shall not be unreasonably withheld.
Tenant's Work shall be completed in a good and workmanlike manner and in
compliance with federal, state, and local laws, and shall include obtaining a
certificate of occupancy or other form of authorization, if required by law,
issued by the appropriate government or agency thereof, stating that the
Premises may lawfully be occupied for the use permitted by this Lease.

     5.   Rent.
          ----

          (a)   Basic Rent. Subject to the rent adjustments set forth in Article
                ----------
5(c) below, the Tenant shall pay to the Landlord an annual rental ("Basic Rent")
during the term hereof equal to Ten and No/100 Dollars ($10.00) per square foot
of net rentable area contained in the Premises (calculated as $74,480.00 per
year and $6,206.67 per month, subject to adjustment). The Basic Rent shall be
payable in twelve equal monthly installments in advance on the first day of each
calendar month without deduction, setoff or defense, with

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Basic Rent for any period of less than one calendar month apportioned on the
basis of the number of days in that month.

          (b)   Additional Rent. All other sums of money as shall become due and
                ---------------
payable by the Tenant to the Landlord hereunder ("Additional Rent") shall
constitute consideration to the Landlord for the Lease Term, and the Landlord
shall have the same remedies for the Tenant's default in the payment of
Additional Rent as for Tenant's default in the payment of Basic Rent.

          (c)   Rent Adjustments. The Basic Rent shall be increased on the
                ----------------
anniversary of the Commencement Date each year of the Lease Term (hereafter
called an "Adjustment Date") by three percent (3%) of the Basic Rent payable for
the month immediately preceding the Adjustment Date; and said increased Basic
Rent shall be payable on said Adjustment Date and on the first day of each month
thereafter until the earlier of the next Adjustment Date or the end of the Lease
Term.

          (d)   Late Payments. Any installment of Rent, Additional Rent or other
                -------------
amount due or accruing hereunder, whether termed rent or otherwise, and payable
hereunder by Tenant to Landlord, not paid when due, shall be subject to a late
payment fee equal to five percent (5%) of the amount due, which amount shall be
added to, and constitute part of, Rent.

     6.   Taxes. Landlord shall pay all real estate taxes, assessments and
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other governmental charges which shall be levied or assessed, or which become
liens, upon the Land or Building.

     7.   Maintenance and Repairs. During the Lease Term the Tenant, at its
          -----------------------
sole cost and expense, shall take good care of the Premises and Landlord's
fixtures and appurtenances therein. The Tenant shall be responsible for any
damage to the Premises caused by the Tenant's occupation thereof, normal wear
and tear excepted. The Landlord shall perform all maintenance and make all
repairs to the Premises, Common Areas of the Building and Building service
systems of every kind and nature now or hereafter attached to or used in
connection with the operation of the Building, including but not limited to,
plumbing, sprinkler, HVAC, electrical and mechanical lines and equipment
associated therewith, and elevators (except to the extent any maintenance,
repair and/or replacement is caused by the acts or omissions of Tenant or its
employees, agents, patients, guests, invitees or contractors, in which case
Tenant shall be responsible for the costs of such maintenance, repair and/or
replacement). The Landlord shall perform all repairs and restoration required by
Article 11 ("Casualty") and Article 13 ("Condemnation").

     8.   Landlord's Services. The Landlord shall, at its own cost and
          -------------------
expense (except as set forth below), furnish to the Tenant the following
services, utilities, supplies and facilities:

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          (a) Access to the Premises twenty-four (24) hours a day, seven (7)
          days a week.

          (b) Elevator service.

          (c) Heat, ventilation and air conditioning on the Tenant's business
          days from 8:00 a.m. to 8:00 p.m. and on Saturdays from 8:00 a.m. to
          1:00 p.m. and at such other times as the Tenant may reasonably request
          as hereinafter provided.

          The Landlord shall furnish HVAC beyond the above stated hours,
          provided that notice requesting such service is delivered to the
          Landlord before noon on the business day when such service is required
          for that evening, and by noon of the preceding business day when such
          service is required on a Saturday, Sunday, or holiday of the Tenant.
          Landlord shall have the right to designate any person or department to
          which all requests for extraordinary HVAC service by Tenant shall be
          directed. The Landlord's cost of supplying such additional service
          shall be paid by the Tenant. The Landlord shall bill the Tenant on or
          before the last day of the month following the month in which such
          charges are incurred, and shall submit with its invoice a tabulation
          of the hours and the dates on which the overtime HVAC was furnished.
          The Tenant shall reimburse the Landlord therefor with thirty (30) days
          after receipt of the invoice.

          (d) Cleaning and janitor services, including removal of refuse and
          rubbish and furnishing washroom supplies.

          (e) Hot and cold running fresh water in certain common areas of the
          Building.

          (f) Electricity for lightning and for operation of such office
          machines, appliances and equipment as the Landlord may permit to be
          used on the Premises; provided, however, that Tenant shall be
          responsible for, and shall pay in a timely manner, all electric bills
          for the Premises.

          (g) Provision, installation and replacement of all necessary light
          bulbs, tubes and ballasts.

          (h) Vermin extermination.

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          (i) General security for the Building not including security personnel
          or a Building security system other than non-electric door key locks.

     9.   Alterations and Improvements. Tenant shall not make or allow to be
          ----------------------------
made any alterations or physical additions in or to the Premises without first
obtaining the written consent of the Landlord. Any alterations, physical
additions or improvements to the Premises made by the Tenant shall at once
become the property of the Landlord and shall be surrendered to the Landlord
upon termination or expiration of this Lease. The Landlord, at its option, may
require the Tenant to remove any physical additions and/or repair any
alterations in order to restore the Premises to the condition existing at the
time the Tenant took possession, all costs of removal and/or alterations to be
borne by the Tenant. This Article 9 shall not apply to moveable equipment or
furniture (including moveable partitions) owned by the Tenant which may be
removed by the Tenant at the end of the term of this Lease if the Tenant is not
then in default and if such equipment and furniture is not then subject to any
other rights, liens and interests of the Landlord. The Tenant will peaceably
yield up to the Landlord the Premises in good order and condition, excepting
ordinary wear and tear, repairs required to be made by the Landlord, or damage,
destruction or loss by fire or other casualty or by any other cause unless such
damage, destruction or loss is caused by the act, omission or negligence of the
Tenant or any employees, invitees, licensees or agents of the Tenant and is not
covered by insurance carried or required by this Lease to be carried by the
Landlord, and in such event the repair of such damage, destruction or loss is
the responsibility of Tenant. The Tenant shall repair all damage to the Premises
and the fixtures, appurtenances and equipment of the Landlord therein, and to
the Building, caused by the Tenant's removal of its furniture, equipment and
machinery.

     10.  Inspection. The Landlord shall, upon advance oral notice to the Tenant
          ----------
(except in an emergency, in which case no notice shall be required), have the
right at all reasonable times (including, without limitation, during business
hours) to inspect the Premises and show the same to prospective mortgagees or
tenants and, at all times, to make repairs or replacements as required by this
Lease or as may be necessary; provided, however, that the Landlord shall use
reasonable efforts not to disturb the Tenant's use and occupancy of the
Premises.

     11.  Casualty.
          --------

          (a)   Minor Damage. In the event any portion of the Premises, Common
                ------------
     Areas of the Building or Building equipment or systems serving the Premises
     or Common Areas (hereinafter collectively referred to as the "Damaged
     Property") is damaged by fire or other casualty, earthquake or flood or by
     any other cause of any kind or nature and the Damage Property can, in the
     opinion of the Landlord's architect, be repaired within

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     ninety (90) days from the date of damage, the Landlord shall proceed to
     make such repairs as required by paragraph (c) below. This Lease shall not
     terminate, but the Tenant shall be entitled to a proportionate abatement of
     Basic Rent payable during the period commencing on the date of the damage
     and ending on the date the Damaged Property is repaired as aforesaid. For
     purposes of paragraphs (a) and (b) of this Article 11, rental abatement
     shall be based upon the portion of the Premises rendered untenantable or
     unfit for use by the Tenant during such period as determined in the
     reasonable judgment of Landlord.

          (b)   Major Damage. If (i) in the opinion of the Landlord's architect,
                ------------
     damage to the Damaged Property cannot be repaired within ninety (90) days
     from the date of the damage, or (ii) in the opinion of the Landlord's
     architect, the cost of repair will exceed thirty (30%) of the replacement
     cost (exclusive of architectural and engineering fees, excavation, footings
     and foundations) of the Building, then either party may terminate this
     Lease by notice to the other within twenty (20) days from the date on which
     the architect's opinion is delivered to the Tenant when termination is
     based on the architect's opinion, and otherwise by such notice within
     twenty (20) days from the end of the ninety (90) day period, as it may have
     been extended by an excusable delay. In the event of termination under this
     Article, this Lease and the term hereof shall terminate on the date
     specified in the notice and Basic Rent shall be apportioned as of the date
     of the damage.

          (c)   Landlord's Repair. In the event neither party exercises its
                -----------------
     option to terminate hereunder, the Landlord shall, with due diligence,
     undertake to repair, alter and restore the Damaged Property as a complete
     architectural unit of substantially the same proportionate usefulness,
     design and construction existing immediately prior to the date of the
     damage. The Tenant shall be entitled to a proportionate abatement of Basic
     Rent the manner and to the extent provided in paragraph (a). When required
     by this Article, the architect's opinion shall be delivered to Tenant
     within thirty (30) days from the date of damage.

     12.  Insurance and Indemnity. The Landlord shall at all times during the
          -----------------------
term of this Lease maintain a policy or policies of fire, extended coverage or
similar casualty insurance covering the Building against loss, damage or
destruction in an amount equal to ninety percent (90%) of the full replacement
cost of the Building structure and its improvements as of the date of loss
(exclusive of architectural and engineering fees, excavation, footings and
foundations); provided, however, that the Landlord shall not be required in any
way or manner to insure any personal property of the Tenant or which the Tenant
may have upon or within the Premises or any fixtures installed by or paid for by
the Tenant upon or within the Premises; and provided further that Landlord may
self-insure the obligations described in this Article.

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     Tenant shall at all times during the term hereof maintain commercial
general liability insurance covering injury to persons or damage to property in
or about the Premises, insuring Landlord and Tenant, in coverage amounts
acceptable to Landlord.

     Each of Landlord and Tenant hereby releases the other from any loss or
damage to property caused by fire or any other perils insured through or under,
either by subrogation or otherwise, policies of insurance covering such
property, even if such loss or damage shall have been caused by the fault or
negligence of the other party, or anyone for whom such party may be responsible;
provided, however, that this release shall be applicable and in full force only
with respect to the loss or damage occurring during such times as the releasor's
policies shall contain a clause of endorsement to the effect that any such
release shall not adversely affect or impair said policies or prejudice the
right of the releasor to recover thereunder and then only to the extent of the
insurance proceeds payable under such policies. Each of Landlord and Tenant
agrees that it will request its insurance carriers to include in its policies
such a clause or endorsement. If extra cost shall be charged therefor, each
party shall advise the other thereof and of the amount of the extra cost, and
the other party, at its election, may pay the same, but shall not be obligated
to do so.

     Tenant shall defend Landlord, with counsel reasonably approved by Landlord,
from and against all actions against Landlord, any partner, trustee,
stockholder, officer, director, employee or beneficiary of Landlord, holders of
mortgages on the Premises and any other party having an interest in the Premises
(herein, the "Landlord Indemnified Parties") with respect to, and shall pay,
protect, indemnify and save harmless, to the extent permitted by law, all
Landlord Indemnified Parties from and against, any and all liabilities, losses,
damages, costs, expenses (including reasonable attorneys' fees and expenses),
causes of action, suits, claims, demands or judgments of any nature arising from
(i) bodily injury to or death of any person, or damage to or loss of tangible
property, on or about the Premises, the Building or the Land, or connected with
the use, condition or occupancy of any part thereof and not caused by the gross
negligence or willful misconduct of any Landlord Indemnified Party, or (ii) any
negligent act, omission or misconduct of Tenant of its agents, contractors,
licensees, sublessess or invitees, or (iii) any breach by Tenant of its
obligations under this Lease.

     13.  Condemnation.
          ------------

          (a)   Taking of Building. If at any time during the term the of this
                ------------------
     Lease, the whole of the Building shall be taken for any public or
     quasi-public use, under any statute, or by right of eminent domain, except
     as provided herein, this Lease shall terminate on the date of such taking.
     If less than all of the Building shall be taken and such portion taken does
     not

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     include all of the Premises and, in the Landlord's reasonable opinion
     communicated by notice to the Tenant within sixty (60) days after such
     taking, the Tenant is able to gain access to and continue the conduct of
     its business on the Premises, this Lease shall remain unaffected, except
     that the Tenant shall be entitled to a pro rata abatement of Basic Rant
     based on the proportion which the area of the Premises so taken bears to
     the area of the Premises immediately prior to such taking. For purposes of
     this Article 13, taking by condemnation or eminent domain shall include the
     exercise of any similar governmental power and any sale, transfer or other
     disposition of the Building and Land in lieu or under threat of
     condemnation. The term "Building," as used in this Article, shall include
     the Premises and the access ways thereto.

          (b)   Temporary Taking. If the use and occupancy of the whole or any
                ----------------
     part of the Premises is temporarily taken for a public or quasi-public use
     for a period less than the balance of the term of this Lease, at the
     Tenant's option to be exercised in writing and delivered to the Landlord
     not later than sixty (60) days after the date of such taking, this Lease
     shall terminate on the date specified in the notice or shall continue in
     full force and effect. If this Lease remains in effect, the Tenant shall be
     entitled to a proportionate abatement of Basic Rent in the manner and to
     the extent provided in paragraph (a) for the period during which the
     Premises or any part thereof is taken.

          (c)   Condemnation Awards. The Landlord shall be entitled to receive
                -------------------
     the entire award or awards in any condemnation proceeding without deduction
     therefrom for any estate vested in the Tenant and the Tenant shall receive
     no part of such award or awards from the Landlord or in the condemnation
     proceedings. Subject to the foregoing, Tenant shall be entitled to file a
     separate claim for its damages incurred due to the condemnation, provided
     that such claim does not affect the Landlord's claim or award.

          (d)   Repairs and Alterations. If there is a taking hereunder and this
                -----------------------
     Lease is continued, the Landlord shall make all necessary repairs and
     alterations to make the Premises an architectural whole, provided, that the
     Landlord shall not be obligated to expend for said repairs or alterations
     any amount in excess of the condemnation proceeds received by the Landlord.

     14.  Signs. The Tenant shall not place any signs on the Land or exterior of
          -----
the Building without the prior approval of the Landlord. The Tenant may place
its signs on the entrance doors to the Premises. The Tenant's name and the
location in the Building of the Premises shall be affixed to a directory board
to be provided by the Landlord at the Landlord's expense.

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     15.  Parking. The Landlord will maintain a parking lot providing free
          -------
parking for tenants in the Building and other persons having business therein.
Tenant and its employees, customers and licensees shall have the non-exclusive
right to use the parking areas as may be designated by Landlord in writing,
subject to reasonable rules and regulations as Landlord may from time to time
prescribe and subject to rights of ingress and egress of other tenants. Landlord
shall not be responsible for enforcing Tenant's parking rights against any third
parties. Landlord may require, at its option, in its sole discretion, that
Tenant, its employees, invitees and visitors use certain numbered spaces to be
designated by Landlord.

     16.  Default. In the event that (i) Tenant shall fail to pay Basic Rent,
          -------
Additional Rent or any other amounts on the due date therefor or within five (5)
days thereafter; or (ii) Tenant shall default in any payment due under the Note;
or (iii) any default, event of default or breach shall occur under the Note,
which default, event of default or breach is not cured following the giving of
any applicable notice and within any applicable cure period set forth in the
Note; or (iv) Tenant shall default in the performance of any of its other
obligations under this Lease and shall fail to cure such default within thirty
(30) days after receipt of written notice from the Landlord, then the Landlord
may:

          (a)   Cure any such default and any costs and expenses incurred by the
     Landlord therefor shall be deemed Additional Rent to be paid by the Tenant
     hereunder, but it is expressly agreed that such curing of any default shall
     not be deemed a waiver by the Landlord of any such default or remedy
     provided herein.

          (b)   Enter and take possession of the Premises without terminating
     this Lease and sublease the Premises for the account of the Tenant. The
     Tenant shall be liable for the difference between the rent and other
     amounts paid by the sublessee and the rent and other amounts payable by the
     Tenant hereunder and all reasonable expenses incurred in entering the
     Premises and preparing it for such sublease.

          (c)   Terminate this Lease without further notice and reenter the
     Premises and remove all persons and all or any property therefrom, either
     by summary proceedings, ejectment or otherwise, and repossess the Premises
     together with all additions, alterations, improvements and personal
     property, now or hereafter erected, maintained or located thereon. The
     Landlord shall have the right to take such action without being guilty of
     trespass. At any time and from time to time after such termination, the
     Landlord may, at its option, relet the Premises or any part thereof,
     without notice to the Tenant, upon such terms and conditions as the
     Landlord, in its sole discretion, deems advisable, and receive and collect
     their rents therefore, applying the same first to the payment of all costs
     and expenses of such reletting and then to the payment of damages

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     in amounts equal to the rental due hereunder and to the cost and expense of
     performing the other covenants of the Tenant. The Tenant agrees to pay to
     the Landlord the Basic Rent, Additional Rent and all other charges required
     to be paid by the Tenant up to the time of such termination of this Lease.
     Thereafter, the Tenant agrees to pay to the Landlord during the remainder
     of the term of this Lease, all Basic Rent and Additional Rent and all other
     charges required to be paid by the Tenant under this Lease, less the net
     proceeds, if any, received from the reletting of the Premises.

          (d)   Declare immediately due and payable the entire amount of Basic
     Rent, Additional Rent and amounts due under the Note, whether then payable
     or to become payable during the remainder of the term of the Lease. Upon
     acceleration of such amounts, Tenants agrees to pay the same at once,
     together with all rents and other amounts theretofore due. Such payment
     shall not constitute a penalty or forfeiture but shall constitute
     liquidated damages for Tenant's failure to comply with the terms and
     provisions of this Lease (Landlord and Tenant agreeing that Landlord's
     actual damages in such event are impossible to ascertain and that the
     amount set forth above is a reasonable estimate thereof).

     No remedy set forth in this Article 16 is intended to be exclusive of any
other remedy, and every remedy shall be cumulative and in addition to every
other remedy herein or now or hereafter existing at law, in equity or by
statute. No delay or failure to exercise any right or power accruing upon a
default under this Lease shall impair any such right or power or shall be
construed to be a waiver thereof.

     17.  Holdover. Tenant will, at the termination of this Lease by lapse of
          --------
time or otherwise, yield up immediate possession to Landlord. If Landlord agrees
in writing that Tenant may hold over after the expiration or termination of this
Lease, unless the parties hereto otherwise agree in writing on the terms of such
holding over, the hold over tenancy shall be subject to termination by Landlord
at any time upon not less than fourteen (14) days advance notice or by Tenant at
any time upon not less than thirty (30) days advance written notice, and all of
the other terms and provisions of this Lease shall be applicable during that
period, except that Tenant shall pay Landlord from time to time upon demand, as
rental for the period of any hold over, an amount equal to one and one-half
(1-1/2) times the Basic Rent in effect on the termination date, computed on a
basis for each day of the hold over period. No holding over by Tenant, whether
with or without the consent of Landlord, shall operate to extend this Lease
except as otherwise expressly provided. The preceding provisions of this
Paragraph 17 shall not be construed as Landlord's consent for Tenant to hold
over.

     18.  Liens. Tenant shall have no authority, express or implied, to create
          -----
or place any lien or encumbrance of any kind or nature whatsoever upon, or in
any manner to bind, the interest of Landlord in the Premises, Land or Building
for

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any claim in favor of any person dealing with Tenant, including those who may
furnish materials or perform labor for any upfit or repairs. Tenant covenants
and agrees that it will pay or cause to be paid all sums due and payable by it
on account of any labor performed or materials furnished in connection with any
work performed on the Premises on which any lien is or can be validly and
legally asserted against the Premises, Land or Building, or the improvements
thereon, and that it will save and hold Landlord harmless from any and all loss,
cost or expense based on or arising out of asserted claims or liens against the
leasehold estate or against the right, title and interest of Landlord in the
Premises, Land or Building or under the terms of this Lease.

     19.  Notices and Payments. Any notice, document or payment required or
          --------------------
permitted to be delivered or remitted hereunder or by law shall be deemed to be
delivered or remitted, whether actually received or not, three (3) days after
being deposited in the United States mail, postage prepaid, certified or
registered, return receipt requested, addressed to the parties hereto at the
respective addresses set out below, or at such other address as they shall have
specified by written notice delivered in accordance herewith:

     LANDLORD                                    TENANT
     --------                                    ------

WakeMed Property Services                          LipoMed, Inc.
P.O. Box 14743                                   3009 New Bern Ave.
Raleigh, North Carolina 27620-4743                 Raleigh, North Carolina 27610
Attn: Vice-President/Finance

     20.  Assignment And Subletting. The Tenant shall not by operation of law or
          -------------------------
otherwise, assign, mortgage, pledge, encumber or otherwise transfer any interest
in this Lease, and neither the Premises, nor any part thereof, shall be
encumbered in any manner by reason of any act or omission on the part of the
Tenant or anyone claiming under or through the Tenant, nor shall the Premises or
any part thereof be sublet or be used, occupied or utilized by anyone other than
the Tenant, without the prior written consent of the Landlord (which consent
shall not be unreasonably withheld). A transfer of more than 30% in interest of
the Tenant (whether stock, partnership interest or otherwise), whether in a
single transaction or a series of related or unrelated transactions taking place
within a twelve (12) month period, shall be deemed an assignment of this Lease.
Any assignment, sublease, mortgage, pledge, encumbrance or transfer by the
Tenant in contravention of this Article shall be void. If this Lease is
assigned, or if the Premises or any part thereof is sublet or occupied other
than by the Tenant, the Landlord may collect rent form the assignee, subtenant
or occupant, and apply the net amount collected to the Basic Rent; provided,
however, no such assignment, subletting, occupancy or collection shall be deemed
a waiver of this covenant, or an acceptance of the assignee, subtenant or
occupant as tenant under this Lease, or a release of the Tenant from the further
performance by the

                                       12

<PAGE>

Tenant of any covenants contained herein. The consent by the Landlord to an
assignment or subletting shall not in any way be construed to relieve the Tenant
from obtaining the express consent of the Landlord to any further assignment or
subletting.

     21.  Quiet Enjoyment. The Tenant shall have the peaceable and quiet
          ---------------
possession of the Premises for the term of this Lease provided the Tenant pays
the Basic Rent, Additional Rent and any amounts due under the Note and performs
and observes the other covenants to be performed and kept by the Tenant
hereunder.

     22.  Attornment and Non-Disturbance. With respect to any existing ground
          ------------------------------
lease, underlying lease and/or first mortgage, within thirty (30) days after the
Tenant executes this Lease and, with respect to any future ground lease,
underlying lease and/or first mortgage, on or before the effective date thereof,
the Landlord shall obtain from its ground lessor, underlying lessor and/or
mortgagee a written agreement with the Tenant which shall be binding on their
respective successors and assigns and provide that so long as this Lease shall
be in full force and effect (a) the Tenant shall not be joined as a defendant in
any proceeding which may be instituted to terminate or enforce the ground or
underlying lease or to foreclose or enforce the mortgage; and (b) the Tenant's
possession and use of the Land, Premises and Building in accordance with the
provisions of this Lease shall not be affected or disturbed by reason of any
modification of or default under the ground or underlying lease or first
mortgage. If the ground or underlying lessor and/or mortgagee or any successor
in interest shall succeed to the rights of the Landlord under this Lease,
whether through possession, surrender, assignment, subletting, judicial or
foreclosure action, or delivery of a deed or otherwise, the Tenant will attorn
to and recognize such successor-landlord as the Tenant's landlord and the
successor-landlord will accept such attornment and recognize the Tenant's rights
of possession and use of the Premises in accordance with the provisions of this
Lease. This clause shall be self-operative and no further instrument of
attornment and recognition shall be required.

     23.  Estoppel Certificate. The Tenant agrees, at any time and from time to
          --------------------
time, upon not less than thirty (30) days' prior notice from the Landlord, to
execute, acknowledge and deliver to the Landlord a statement in writing (i)
certifying that this Lease is unmodified and in full force and effect (or if
there have been modifications, that this Lease is in full force and effect as
modified and stating the modifications); (ii) stating the dates to which the
rent and other charges hereunder have been paid by the Tenant; (iii) stating
whether the Tenant has knowledge that the Landlord is in default in the
performance of any covenant, agreement or condition contained in this Lease,
and, if the Tenant has knowledge of such a default, specifying each such default
and (iv) stating the address to which notices to the Tenant shall be sent.

                                       13

<PAGE>

     24.  Memorandum Of Lease. The parties shall, if requested by either,
          -------------------
execute a memorandum of this Lease for recording purposes. The requesting party
shall pay all costs of recording.

     25.  Broker. Tenant warrants and represents to Landlord that it has had no
          ------
dealings with any real estate broker or agent in connection with this Lease, and
Tenant covenants to pay, hold harmless and indemnify Landlord from and against
any and all costs, expenses and liabilities (including reasonable attorneys'
fees), causes of action, claims or suits in connection with any compensation,
commission, fee or charges claimed by any real estate broker or agent with
respect to this Lease or the negotiation thereof, arising out of any act of
Tenant.

     26.  Hazardous Materials.
          -------------------

          (a)   Tenant agrees that it will not release, discharge, place, hold
     or dispose of any Hazardous Material (as hereinafter defined) on, under or
     at the Premises, in the Building or on the Land, and that it will not use
     the Premises, the Building, the Land or any portion thereof as a treatment,
     storage or disposal (whether permanent or temporary) site for any Hazardous
     Material. Tenant further agrees that it will not cause or allow any
     asbestos to be incorporated into any improvements or alteration that it
     makes or causes to be made to the Premises or the Building.

          (b)   Tenant hereby agrees to and does indemnify, defend and hold
     harmless Landlord from and against any and all claims of any and every kind
     whatsoever (including without limitation, court costs and attorneys' fees)
     which at any time or from time to time may be paid, incurred or suffered
     by, or asserted against, Landlord for, with respect to, or as a direct or
     indirect result of (i) any breach by Tenant of the provisions of this
     Article 26, or (ii) to the extent caused or allowed by tenant or any agent,
     employee, invitee or licensee of Tenant, the presence on or under, or the
     escape, seepage, leakage, spillage, discharge, emission, or release from,
     onto, or into the Premises, the Building, the Land the atmosphere or any
     watercourse, body of water or groundwater, of any Hazardous Material
     (including without limitation any losses, liabilities, damages, injuries,
     costs, expenses or claims asserted or arising under the Comprehensive
     Environmental Response, Compensation and Liability Act, any so-called
     "Superfund" or "Superlien" law, or any other Federal, state, local or other
     statute, law, ordinance, code, rule, regulation, order or decree
     regulating, relating to or imposing liability or standards of conduct
     concerning any Hazardous Material); and the provisions of and undertakings
     and indemnification set forth in this paragraph shall survive the
     termination of this Lease, for any reason, and shall constitute the
     liability, obligation and indemnification of Tenant, binding upon Tenant

                                       14

<PAGE>

     forever. The provisions of the preceding sentence shall govern and control
     over any inconsistent provision in this Lease.

          (c)   For purposes of this Lease, "Hazardous Material" means and
     includes any hazardous or toxic substance, pollutant, contaminant, gas or
     petroleum product defined as such in (or for purposes of) the Comprehensive
     Environmental Response, Compensation and Liability Act, as amended, any
     so-called "Superfund" or "Superlien" law, the Toxic Substances Control Act,
     as amended, or any other Federal, state or local statute, law, ordinance,
     code, rule, regulation, order or decree regulating, relating to, or
     imposing liability or standards of conduct concerning, any hazardous, toxic
     or dangerous waste, substance or material, as now or at any time hereafter
     in effect, or any other hazardous, toxic or dangerous waste, substance or
     material, gas or petroleum product or medical waste.

     27.  Landlord's Liability. Notwithstanding anything to the contrary
          --------------------
contained in this Lease, Tenant agrees and understands that Tenant shall look
solely to the estate and property of Landlord in the Building for the
enforcement of a judgment (or other judicial decree) requiring the payment of
money by Landlord to Tenant by reason of default or breach of Landlord in
performance of it obligations under this Lease, it being intended that there
will be absolutely no personal liability on the part of Landlord, its successors
and assigns (or their respective officers, directors, agents, members, managers
or partners) with respect to any of the terms, covenants and conditions of this
Lease, and no other assets of the Landlord shall be subject to levy, execution,
attachment or any other legal process for the enforcement or satisfaction of the
remedies pursued by Tenant in the event of such default or breach, this
exculpation of liability to be absolute and without exception whatsoever.

     28.  Miscellaneous. (1) This Lease shall be strictly construed neither
          -------------
against the Landlord nor the Tenant. (2) No remedy or election given by any
provision in this Lease shall be deemed exclusive unless so indicated, but each
shall, wherever possible, be cumulative and in addition to all other remedies in
law or equity which either party may have arising out of the default of the
other party and failure to cure such default within the applicable grace period.
(3) Each provision hereof shall be deemed both a covenant and a condition
running with the land. (4) Failure of either party to cure a default of the
other under this Lease shall not render such non-defaulting party in any way
liable therefor, or relieve the defaulting party from any of its obligations
hereunder, and failure of either party to exercise any of its rights hereunder
upon the default of the other party shall not be deemed to be a waiver of its
rights upon such default, or any future default hereunder.

     29.  Binding Agreement. This Lease shall bind and inure to the benefit of
          -----------------
the parties hereto and their respective executors, distributees, heirs,
representatives, successors and permitted assigns.

                                       15

<PAGE>

     30.  Applicable Law. This Lease shall be construed and enforced in
          --------------
accordance with the laws of the State of North Carolina, and the proper venue
for any dispute arising under this Lease shall be Wake County, North Carolina.

     31.  Counterparts. This Lease may be executed in several counterparts and
          ------------
all so executed shall constitute one agreement binding on all parties hereto,
notwithstanding that all of the parties have not signed the original or the same
counterpart.

     32.  Severability. If for any reason any provision of this Lease is
          ------------
determined to be invalid, such invalidity shall not impair the operation of or
affect those portions of this Lease which are valid.

     33.  Tenant's Authority. Tenant represents and warrants to Landlord as
          ------------------
follows: (i) Tenant is a corporation duly organized, validly existing and in
good standing under the laws of the State of North Carolina; (ii) Tenant has the
authority to enter into and perform its obligations under this Lease; (iii) this
Lease has been duly authorized and approved on behalf of Tenant by its board of
directors, and this Lease constitutes the legal, valid and binding obligation of
Tenant in accordance with its terms; and (iv) Tenant has taken all action
required of it by law, its Articles of Incorporation or its Bylaws, to authorize
the execution, delivery and performance of this Lease and the completion of its
terms.

     34.  Entire Agreement. This Lease contains the entire agreement of the
          ----------------
parties and may not be modified except by an instrument in writing that is
signed by both parties. This Lease supercedes all other prior oral or written
understandings of the parties regarding the subject matter hereof.

                                       16

<PAGE>

IN WITNESS WHEREOF, this Lease has been duly executed under seal by the parties
hereto as of the day and year first above written.

                                        LANDLORD:

ATTEST:                                 WAKEMED PROPERTY SERVICES

/s/ [signature]                         By:/s/ [signature]
---------------------------                 ---------------------------
(Asst.) Secretary                             Name:
                                              Title: President

[Corporate Seal]

                                        TENANT:

ATTEST:                                 LIPOMED, INC.

     /s/ James D. Otvos                 By: /s/ M. A. Harpold
---------------------------                 ---------------------------
(Asst.) Secretary                             Name:  Michael A. Harpold
                                              Title: Chief Operating Officer

[Corporate Seal]

                                       17

<PAGE>

                                    EXHIBIT A
                                  THE PREMISES

                                       18

<PAGE>

                           [FLOOR PLAN OF FIRST FLOOR]

                                       19

<PAGE>

                                    EXHIBIT B

                                    THE LAND

BEING all of those certain tracts or parcels of land lying and being in Wake
County, North Carolina and more particularly described as follows:

BEING those 2 tracts of land, the larger one containing 4.5656 acres and the
smaller one containing 1.3169 acres, as shown on plat entitled "Property of
William Lester Adcock, Jr., and Leroy Allen," prepared by John S. Lawrence,
Registered Surveyor, dated May 29, 1969, and recorded in Book of Maps 1969, Vol,
I, Page 78, Wake County Registry.

                                       20

<PAGE>

                                    EXHIBIT C

                  EQUIPMENT AND PROCEDURES APPROVED BY LANDLORD

     One or more "high field" NMR spectroscopy systems and related peripheral
devices required for the analysis of blood serum and/or plasma. Initial
activities will focus on the use of NMR for the analysis of lipoprotein
subclasses.

                                       21

<PAGE>

                                    EXHIBIT D

                                      PLANS

                                 (See attached)

                                       22

<PAGE>

                                    EXHIBIT D

                                      PLANS

Interior Upfit:
--------------

     1.   Remove several (approximately 6) non-load-bearing walls to open up
          area for general office use.

     2.   Remove a bathroom to enlarge the two contiguous offices.

     3.   Remove the bathroom at the end of the hallway and move the wall to
          make a larger corner office.

     4.   Remove a 36" door and replace it with a 60" open doorway.

     5.   Remove a second 36" door and replace the wallboard and vinyl
          wallcovering to match the hallway.

     6.   Close the two wall openings ("pass-throughs") with drywall and
          wallcovering.

     Overall, new carpet and ceiling tiles will be installed. All walls will be
     repainted and woodwork will be cleaned and refinished. Some receptables and
     light switches will be relocated as a result of some walls being removed. A
     few overhead fluorescent light fixtures will be added.

     NOTE:  See attached floor plan for location of work described above.

     Loading Dock:
     ------------

     Plans as drawn by Cynthia Cline, AIA. (not attached)

                                       23

<PAGE>

               [FLOOR PLAN FOR SECOND FLOOR OF A. ADCOCK BUILDING]

                                       24

<PAGE>

               [PRELIMINARY PROPOSAL FOR SECOND FLOOR RENOVATION]

                                       25

<PAGE>

                                    EXHIBIT E

                                  FORM OF NOTE

                                 (See attached)

                                       26

<PAGE>

                                 PROMISSORY NOTE

$114,111.30                                                         _______,1999

     FOR VALUE RECEIVED, the undersigned ("Borrower") promises to pay to WAKEMED
PROPERTY SERVICES, a North Carolina corporation, or order ("Lender"), the
principal sum of ONE HUNDRED FOURTEEN THOUSAND ONE HUNDRED ELEVEN AND 30/100
DOLLARS ($114,111.30), at P.O. Box 14743, Raleigh, North Carolina 27620-4743
(Attention: Vice-President/Finance), or at such other place as the legal holder
hereof may designate in writing, in lawful money of the United States of America
and in immediately available funds, together with interest thereon from and
after the date hereof on the unpaid principal balance outstanding, at the rates
and on the terms set forth below:

     1.   Term. If not sooner paid, the entire unpaid principal balance of this
          -----
Note, plus interest accrued thereon, shall be due and payable on July 1, 2002
(the "Maturity Date").

     2.   Interest. Interest shall accrue on the unpaid principal balance of
          ---------
this Note from the date first written above until payment in full at a fixed
rate of six percent (6%) per annum.

     3.   Payment of Interest and Principal. Principal and interest shall be due
          ---------------------------------
and payable as follows: (a) thirty-six (36) equal monthly installments of
principal and interest in the amount of $2,206.09 due and payable on the first
day of each month commencing on July 1, 1999, and ending on June 1, 2002; and
(b) one installment of $50,024.66 (or such other amount as remains due and
payable hereunder) due and payable on July 1, 2002. Each payment shall, unless
otherwise provided, be applied first to payment of interest then accrued and due
on the unpaid principal balance, with the remainder applied to the unpaid
principal. Notwithstanding the foregoing, Borrower acknowledges and agrees as
follows: (x) $8,317.00 of the initial principal balance of this Note was loaned
to Borrower to cover unanticipated overages (the "Contingency Amount") in
connection with Borrower's upfit of space leased by Borrower from Lender
pursuant to the Lease (as defined below), (y) use of the loan proceeds evidenced
hereby (including the Contingency Amount) is limited solely to such upfit
pursuant to the Lease and (z) to the extent that any part of the Contingency
Amount greater than $500.00 remains unused by the Tenant for the purpose
described in the Lease, Borrower shall refund such unused amount to Lender on
the Completion Date (as defined in the Lease).

     4.   Events of Default and Remedies. Each of the following shall constitute
          ------------------------------
an "Event of Default" under this Note:

                                       27

<PAGE>

          a.    Failure by Borrower to pay, as and when the same shall become
     due and payable, any payment of principal, interest or both, due hereunder,
     or on any other obligation owed to Lender, whether upon any regularly
     scheduled due date, upon acceleration or otherwise; or failure by Borrower
     to observe or perform any covenant, undertaking or other obligation arising
     under this Note, or under that certain Amended and Restated Lease Agreement
     dated as of ________,1999 (the "Lease") between Borrower and Lender, or
     under any other note, agreement or other document executed and delivered by
     Borrower to Lender, or any other person, firm or corporation, in connection
     with this Note or the Lease.

          b.    Any warranty, representation or statement made or furnished to
     Lender by or on behalf of Borrower in connection with this Note or the
     Lease proves to have been false in any material respect when made or
     furnished.

          c.    If, by the order of a court of competent jurisdiction, a
     trustee, custodian or receiver of the Borrower shall be appointed.

          d.    If Borrower shall file a petition in bankruptcy or for an
     arrangement or reorganization pursuant to the Federal Bankruptcy Act or any
     similar law, federal or state, or if, by decree of a court of competent
     jurisdiction Borrower shall be ordered a bankrupt, or be declared
     insolvent, or shall make an assignment for the benefit of creditors, or
     shall admit in writing its inability to pay its debts generally as they
     become due, or shall consent to the appointment of receiver or receivers.

     Upon the occurrence of an Event of Default, Lender at its option may
without notice to Borrower, declare immediately due and payable the entire
unpaid balance of principal and interest outstanding under this Note, together
with all other obligations of Borrower to Lender; whereupon Lender may exercise
each of its rights and remedies under any of the documents which evidence or
relate to this Note (including without limitation the Lease) and as otherwise
may be provided at law or in equity. Failure to exercise this remedy shall not
constitute a waiver of the right to exercise the same at any other time.

     The remedies of Lender as provided herein and in any other documents given
in connection with this Note shall be cumulative and concurrent, and may be
pursued singularly, successively or together at the sole discretion of Lender,
and may be exercised as often as occasion therefor shall occur, and the failure
to exercise any such right or remedy shall in no event be construed as a waiver
or release thereof.

                                       28

<PAGE>
     5. Prepayment.
        -----------

          a.    Borrower may voluntarily prepay the principal due under this
     Note, in whole or in part, without any penalty or premium whatsoever.

          b.    Each prepayment made pursuant to this Section 5 shall be applied
     (i) first, to costs and expenses payable pursuant to the terms hereof, (ii)
     second, to the payment of interest accrued and unpaid on the principal
     balance hereof and (iii) third, to the repayment of the outstanding
     principal of this Note.

     6.   Expenses of Collection. Should the indebtedness evidenced by this Note
          ----------------------
or any part thereof be collected at law or in equity, or in bankruptcy,
receivership or other court proceeding, or should this Note be placed in the
hands of attorneys for collection upon an Event of Default, Borrower agrees to
pay, in addition to all other sums due hereunder, all costs of collecting this
Note, including reasonable attorneys' fees and expenses.

     7.   Lease. This Note is given in connection with the Lease. All of
          -----
Borrower's representations, warranties, covenants and agreements contained in
the Lease are hereby made a part of this Note to the same extent and with the
same force and effect as if they were fully set forth herein, and Borrower
covenants and agrees to keep and perform them, or cause them to be kept and
performed, strictly in accordance with their terms.

     8.   Notices. Any notice, demand or other communication to any party hereto
          -------
shall effective if delivered by hand delivery or sent via telecopy, recognized
overnight courier service or certified mail, return receipt requested, and shall
be presumed to be received by a party hereto (i) on the date of delivery if
delivered by hand or sent via telecopy, (ii) on the next business day if sent by
recognized overnight courier service and (iii) on the third business day
following the date sent by certified mail, return receipt requested. Each such
notice, demand or other communication shall be addressed to such party at the
address set forth below (or at such other address as such party shall specify to
the other parties hereto in writing):

     If to Lender:

          WakeMed Property Services
          P.O. Box 14743
          Raleigh, North Carolina 27620-4743
          Attn: Vice President/Finance

     If to Borrower:

          LipoMed, Inc.
          3009 New Bern Avenue
          Raleigh, North Carolina 27610

                                       29

<PAGE>

          Attn: Michael A. Harpold

     9.   Waivers. Borrower and any and all endorsers, sureties or guarantors
          -------
hereby jointly and severally waive presentment for payment, demand, notice of
demand, notice of dishonor, protest and notice of protest of this Note, and all
other notices in connection with the delivery, acceptance, performance or
enforcement of the payment of this Note, and agree that liability hereunder
shall not be affected in any manner by any indulgence, extension of time,
renewal, waiver or modification granted or consented to by Lender. Borrower and
any and all endorsers, sureties or guarantors consent to any and all extensions
of time, renewals, waivers or modifications that may be granted by Lender with
respect to the payments or other provisions of this Note, and agree that
additional makers, endorsers, sureties or guarantors may become parties hereto
without notice to any of them or affecting any of their liability hereunder.

     10.  Savings Clause. If any provision of this Note is held to be invalid or
          --------------
unenforceable by a court of competent jurisdiction, the other provisions of this
Note shall remain in full force and effect and shall be liberally construed in
favor of Lender in order to effect the provisions of this Note. In no event
shall the rate of interest payable under this Note exceed the maximum rate of
interest permitted to be charged by applicable law (including the choice of law
rules), and any interest paid in excess of the permitted rate shall be refunded
to Borrower.

     11.  Lender's Waivers. Lender shall not be deemed, by any act of omission
          ----------------
or commission, to have waived any of its rights or remedies hereunder unless
such waiver is in writing and signed by Lender, and then only to the extent
specifically set forth in the writing. A waiver of one event shall not be
construed as continuing or as a bar to or waiver of any right or remedy to a
subsequent event.

     12.  Modification in Writing. No provision of this Note may be modified or
          -----------------------
discharged orally, but only by agreement in writing signed by Borrower and
Lender.

     13.  Successors and Assigns. Borrower shall not assign or transfer its
          ----------------------
rights and obligations under this Note without the prior written consent of the
Lender, which consent may be withheld for any reason. The Lender may assign or
transfer its rights and obligations hereunder at any time. This Note shall be
binding upon and inure to the benefit of the permitted successors and assigns of
Borrower and Lender.

     14.  Governing Law. This Note shall be governed by and construed in
          -------------
accordance with the laws of the State of North Carolina.

     15.  Number; Gender; Headings. Whenever used, the singular number shall
          ------------------------
include the plural, the plural the singular, the use of any gender shall be

                                       30

<PAGE>

applicable to all genders, and the words "Lender" and "Borrower" shall be deemed
to include the respective permitted successors and assigns of Lender and
Borrower. The headings of the various provisions of this Note are for
convenience of reference only and shall not define or limit the terms hereof.

     16.  Indemnification. Borrower hereby indemnifies and holds Lender and its
          ---------------
successors and assigns harmless from and against any and all claims, costs,
penalties, damages, losses, liabilities and expenses (including reasonable
attorneys' fees) that may at any time be incurred by Lender and its successors
and assigns as a result of any breach by Borrower of any of its warranties,
representations, covenants or obligations set forth herein.

     17.  Borrower's Authority. Borrower represents and warrants to Lender as
          --------------------
follows: (i) Borrower is a corporation duly organized, validly existing and in
good standing under the laws of the State of North Carolina; (ii) Borrower has
the authority to enter into and perform its obligations under this Note; (iii)
this Note has been duly authorized and approved on behalf of Borrower by its
board of directors, and this Note constitutes the legal, valid and binding
obligation of Borrower in accordance with its terms; and (iv) Borrower has taken
all action required of it by law, its Articles of Incorporation or its Bylaws,
to authorize the execution, delivery and performance of this Note.

     18.  Financial Reporting. Borrower hereby covenants and agrees that so long
          -------------------
as any amount shall remain due hereunder, Borrower shall deliver to Lender,
within thirty (30) days after the end of each fiscal quarter of Borrower, the
balance sheet of Borrower as at the end of such period and the related
statements of income, stockholders' equity and cash flow of Borrower for such
fiscal quarter and for the period from the beginning of the then-current fiscal
year to the end of such fiscal quarter, setting forth in each case in
comparative form the corresponding figures for the corresponding periods of the
previous fiscal year, all certified by the chief financial officer of Borrower
as fairly presenting the financial position of Borrower as at the dates
indicated. If, after a review of such financial statements, Lender believes that
Borrower cannot or may not satisfy its obligations under this Note, Lender may
exercise any of its rights under this Note and the Lease as if an Event of
Default has occurred.

     IN WITNESS WHEREOF, Borrower has caused this Note to be signed under seal
in the company name by its duly authorized officers, the day and year first
above written.

ATTEST:                                     LIPOMED, INC.

-----------------------                         -------------------------
(Asst.) Secretary                         Name:

                                       31

<PAGE>

                                            Title:

[Corporate Seal]

                                       32

<PAGE>

LIPOMED LOAN

<TABLE>
<CAPTION>
                                                                                     DATE            7/1/1999
                                                                                     LOAN AMOUNT     $114,111.30
                                                                                     RATE            6.00%
                                                                                     TERM (YEARS)    3

                                  # PERIODS PER YEAR                                 Periods         12
                                               MONTHLY P & I PAYMENT                                 $2,206.09
                                               YEARLY P & I PAYMENT                                  $26,473.08

                                                                                         Current      Current
                         Payment     Payment   Principal    Interest      Principal      Portion      Portion
 Month       Year        Number      Amount     Portion     Portion        Balance      Principal     Interest
 -----       ----        ------      ------     -------     -------        -------      ---------     --------
<S>          <C>         <C>       <C>         <C>          <C>          <C>            <C>           <C>
July         1999        1          2,206.09    1,635.53      570.56     112,475.77
Aug          1999        2          2,206.09    1,643.71      562.38     110,832.06
Sept         1999        3          2,206.09    1,651.93      554.16     109,180.13
Oct          1999        4          2,206.09    1,660.19      545.90     107,519.94
Nov          1999        5          2,206.09    1,668.49      537.60     105,851.45
Dec          1999        6          2,206.09    1,676.83      529.26     104,174.61
Jan          2000        7          2,206.09    1,685.22      520.87     102,489.40
Feb          2000        8          2,206.09    1,693.64      512.45     100,795.75
Mar          2000        9          2,206.09    1,702.11      503.98      99,093.64
Apr          2000        10         2,206.09    1,710.62      495.47      97,383.02
May          2000        11         2,206.09    1,719.17      486.92      95,663.85
June         2000        12         2,206.09    1,727.77      478.32      93,936.07
July         2000        13         2,206.09    1,736.41      469.68      92,199.66     20,276.10     6,196.98
Aug          2000        14         2,206.09    1,745.09      461.00      90,454.57     20,377.48     6,095.60
Sept         2000        15         2,206.09    1,753.82      452.27      88,700.76     20,479.37     5,993.71
Oct          2000        16         2,206.09    1,762.59      443.50      86,938.17     20,581.77     5,891.31
Nov          2000        17         2,206.09    1,771.40      434.69      85,166.77     20,684.68     5,788.40
Dec          2000        18         2,206.09    1,780.26      425.83      83,386.51     20,788.10     5,684.98
Jan          2001        19         2,206.09    1,789.16      416.93      81,597.36     20,892.04     5,581.04
Feb          2001        20         2,206.09    1,798.10      407.99      79,799.25     20,996.50     5,476.58
Mar          2001        21         2,206.09    1,807.09      399.00      77,992.16     21,101.48     5,371.60
Apr          2001        22         2,206.09    1,816.13      389.96      76,176.03     21,206.99     5,266.09
May          2001        23         2,206.09    1,825.21      380.88      74,350.82     21,313.02     5,160.06
June         2001        24         2,206.09    1,834.34      371.75      72,516.49     21,419.59     5,053.49
July         2001        25         2,206.09    1,843.51      362.58      70,672.98     21,526.69     4,946.39
Aug          2001        26         2,206.09    1,852.73      353.36      68,820.25     21,634.32     4,838.76
Sept         2001        27         2,206.09    1,861.99      344.10      66,958.26     21,742.49     4,730.59
Oct          2001        28         2,206.09    1,871.30      334.79      65,086.97     21,851.20     4,621.88
Nov          2001        29         2,206.09    1,880.66      325.43      63,206.31     21,960.46     4,512.62
Dec          2001        30         2,206.09    1,890.06      316.03      61,316.25     22,070.26     4,402.82
Jan          2002        31         2,206.09    1,899.51      306.58      59,416.74     22,180.61     4,292.47
Feb          2002        32         2,206.09    1,909.01      297.08      57,507.74     22,291.52     4,181.56
Mar          2002        33         2,206.09    1,918.55      287.54      55,589.19     22,402.98     4,070.10
Apr          2002        34         2,206.09    1,928.14      277.95      53,661.04     22,514.99     3,958.09
May          2002        35         2,206.09    1,937.78      268.31      51,723.26     22,627.56     3,845.52
June         2002        36         2,206.09    1,947.47      258.62      49,775.78     22,740.70     3,732.38

01-Jul-02    Balance Due           50,024.66   49,775.78      248.88           0.00
</TABLE>

                                       33<PAGE>

                                                                   EXHIBIT 10.17

                                 STANDARD LEASE

                                   Parker Business Center - Building 307 and 308
                                   ---------------------------------------------

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

                         ARTICLE 1. - BASIC LEASE TERMS

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

     1.1  Landlord.   Parker-Raleigh Development XXX, LLC
          --------

     1.2  Tenant.     Lipomed, Inc. a Delaware corporation
          -------     ------------------------------------

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

     1.4  Building. The Buildings, including the Premises) known as 2500 Sumner
          --------                                                  -----------
Boulevard, Raleigh, North Carolina 27616, located on that tract of land (the
----------------------------------------
"Land") described on Exhibit A hereto, together with all other buildings,
structures, fixtures and other improvements (the "Buildings") located thereon
from time to time, being presently as depicted on the drawing (the "Site Plan")
attached hereto as Exhibit B. The Building, Buildings and the Land are
collectively referred to herein as the "Property."

     1.5  Premises. The floor space and interior wall and ceiling space of that
          --------
portion of the Buildings outlined in red or highlighted on Exhibit C attached
hereto, resulting in an aggregate of approximately 85,000 square feet of gross
                                                   ------
leasable area known as Buildings 307 (39,820 square feet) and 308 (33,180 square
feet) and a 12,000 square foot connector (the "Connector") between the Buildings
all as shown on Exhibit C. Landlord will construct the "Improvements" (as
defined in the Addendum) and deliver Building 307 to Tenant first. The
Commencement Date for Building 307 is anticipated to be December 15, 2001. Prior
to completion of the Improvements in Building 307, Landlord will begin
construction of the Improvements in Building 308 and the Connector. The
Commencement Date for the Connector and Building 308 is anticipated to be July
1, 2002.

     1.6  Lease Term. 10 years, 6 months and 14 days beginning on the
          ----------  --        -            --
Commencement Date for Building 307.

     1.7  Commencement Date. The "Commencement Date" for each Building shall be
          -----------------
the earlier of the date that Tenant takes possession of the Premises or ten (10)
days after Landlord notifies Tenant that the Building is, or will be by a date
certain, ready for Tenant to take possession. The Commencement Date shall
constitute the commencement of the Lease Term for all purposes, whether or not
Tenant has actually taken possession as evidenced by a Certificate of Occupancy.
By mutual agreement of the parties, the Commencement Date may be changed. Within
thirty (30) days after the Commencement Date for each Building, Landlord will
provide to Tenant a letter acknowledging the Commencement, Rental Commencement
(if different) Expiration Dates, and the square footage of the Building which
letter will then be attached hereto as Exhibit D. Notwithstanding anything
herein to the contrary, the Lease Term shall extend through and end on the last
day of the last month of the Term. If Tenant is permitted access to the Premises
prior to the Commencement Date, such early entry will be subject to all the
terms and provisions of this Lease as though the Commencement Date had occurred,
unless otherwise agreed to in writing by Landlord. The Rental Commencement for
each Building shall be the fifteenth (15 th) day after the Commencement Date
except as provided in the Addendum.

     1.8  Base Rent. Base Rent is:
          ---------

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------

              Months                 Per Square Foot              Annually                         Monthly
---------------------------------------------------------------------------------------------------------------------
<S>                                  <C>                           <C>                           <C>
 1 through 6 -  Building 307             $11.85                         N/A                      $ 39,322.25
---------------------------------------------------------------------------------------------------------------------
 Approximately 7 through 12 -            $11.85                         N/A                      $ 83,937.50
 Building 308 and the Connector
---------------------------------------------------------------------------------------------------------------------
 13 through 24                           $12.15                    $1,032,750.00                 $ 86,062.50
---------------------------------------------------------------------------------------------------------------------
 25 through 36                           $12.45                    $1,058,250.00                 $ 88,187.50
---------------------------------------------------------------------------------------------------------------------
 37 through 48                           $12.76                    $1,084,600.00                 $ 90,383.33
---------------------------------------------------------------------------------------------------------------------
 49 through 60                           $13.08                    $1,111,800.00                 $ 92,650.00
---------------------------------------------------------------------------------------------------------------------
 61 through 72                           $13.41                    $1,139,850.00                 $ 94,987.50
---------------------------------------------------------------------------------------------------------------------
 73 through 84                           $13.75                    $1,168,750.00                 $ 97,395.83
---------------------------------------------------------------------------------------------------------------------
 85 through 96                           $14.09                    $1,197,650.00                 $ 99,804.17
---------------------------------------------------------------------------------------------------------------------
 97 through 108                          $14.44                    $1,227,400.00                 $102,283.33
---------------------------------------------------------------------------------------------------------------------
 109 through 120                         $14.80                    $1,258,000.00                 $104,833.33
---------------------------------------------------------------------------------------------------------------------
 121 through 126 + 14 days               $15.17           $694,870.34 (6 months, 14 days)        $107,454.17
---------------------------------------------------------------------------------------------------------------------
</TABLE>

     1.9  Security Deposit. Security Deposit is a $1,500,000.00 letter of credit
          ----------------                                      ----------------
in the form specified in the Addendum, due at execution of the Lease.
--------------------------------------------------------------------

     1.10 Addresses.
          ---------

<TABLE>
<CAPTION>
Landlord's Address:                               Tenant's Address:                   Manager's Address:
<S>                      <C>                           <C>                            <C>
                         UNTIL THE Commencement Date   AS OF THE Commencement Date
Post Office Box 58036    3009 New Bern Avenue          2500 Sumner Boulevard          Post Office Box 58036
                                                       -----------
Raleigh, NC 27658        Raleigh, NC 27610             Raleigh, NC  27616             Raleigh, NC  27658
                         -----------------
ATTN: Legal Department   ATTN: Richard A. Franco       ATTN: Richard A. Franco        ATTN: Accounting Department
                               -----------------
</TABLE>

                                  Page 1 of 12

<PAGE>

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

     1.11  Permitted Use: laboratory, testing and related assembly, distribution
           ---------------------------------------------------------------------
and offices.
-----------

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

     1.13  Proportionate Share. The proportion, expressed as a percentage, that
           -------------------
the gross leasable area in square feet in the Premises, as determined by
Landlord, bears to the total number of constructed gross leasable area in square
feet in the Building or Buildings (measured outside wall to outside wall), as
reasonably determined by Landlord, as of the date that the computation is made.
The Connector and Building 307 shall be measured upon completion but prior to
the Commencement Date. Landlord shall adjust the computation if additional
square footage is added to the Building or Buildings or to the Premises.

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

           PSF    2002 rate to be determined      Annual $ TBD     Monthly $ TBD
           ---    --------------------------      ------   ---     -------   ---

     1.15  Total Rental:
           ------------

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

                                         Annual $ TBD       Monthly $ TBD
                                         ------   ---       -------   ---

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

                                       N/A
     ---------------------------------------------------------------------------

                ARTICLE 2. - GRANTING CLAUSE AND RENT PROVISIONS

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

     2.2   Base Rent. Tenant agrees to pay monthly as Base Rent during the term
           ---------
of this Lease the sum of money set forth in Section 1.8 of this Lease, which
amount shall be payable to Landlord at the address shown above or at such other
address that Landlord in writing shall notify Tenant. One (1) monthly
installment of Base Rent for Building 307 shall be due and payable on the date
of execution of this Lease by Tenant for the first month's rent and a like
monthly installment shall be due and payable on or before the first day of each
calendar month succeeding the Commencement Date during the term of this Lease,
without demand, offset or deduction; provided, if the Commencement Date should
be a date other than the first day of a calendar month, the monthly rental set
forth above shall be prorated to the end of that calendar month, and all
succeeding installments of rent shall be payable on or before the first day of
each succeeding calendar month during the term of this Lease. The first month's
Base Rent for Building 308 and the Connector shall be due at the Commencement
Date thereof and thereafter, as set forth above. Tenant shall pay, as
"Additional Rent," all other sums due under this Lease. Base Rent and Additional
Rent are sometimes collectively referred to herein as "Rent."

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

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

     2.5   Adjustments to Common Area Costs. Within one hundred twenty (120)
           --------------------------------
days following the end of each calendar year, Landlord shall furnish to Tenant a
statement showing the total actual Common Area Costs for the calendar year just
expired, the amount of Tenant's Proportionate Share of the Common Area Costs,
and payments made by Tenant during such calendar year under Section 2.4. If
Tenant's Proportionate Share of the actual Common Area Costs for such calendar
year exceeds the aggregate of Tenant's monthly payments made during the calendar
year just expired, Tenant shall pay to Landlord the deficiency within thirty
(30)

                                  Page 2 of 12

<PAGE>

days after receipt of said statement. If Tenant's payments exceed Tenant's
Proportionate Share of the actual Common Area Costs as shown on such statement,
Tenant shall be entitled to offset the excess against payments thereafter
becoming due as Tenant's Proportionate Share of Common Area Costs. No portion of
the Common Area Costs paid by Tenant under this Article 2 shall be credited
against Base Rent or any other rental obligations hereunder. If such excess
occurs during the last year of the Lease Term, Landlord shall be obligated to
pay any such excess to Tenant within ninety (90) days after expiration of the
Lease. This obligation survives termination of Lease. Common Area Costs
(excluding Taxes and Insurance) shall not increase by more than ten percent
(10%) per square foot, per year.

     2.6   Late Payment. Other remedies for nonpayment of Rent notwithstanding,
           ------------
if any payment of Base Rent or Additional Rent is not received by Landlord on or
before the fifth (5th) business day of the month for which the Rent is due, or
if any other payment hereunder due Landlord by Tenant is not received by
Landlord on or before the fifth (5th) business day of the month next following
the month in which Tenant was invoiced, Tenant shall also pay (a) a late payment
charge of five percent (5%), but not less than $100.00, of such past due amount
and (b) interest of eighteen percent (18%) per annum or the maximum then allowed
by applicable law, whichever is less, on the remaining unpaid balance,
retroactive to the date originally due until paid. Notwithstanding the
foregoing, Landlord shall not invoke its rights to late payment fees unless
Tenant is late in payment on more than one (1) occasion per year in each Lease
year and provided such payment is made by the fifteenth (15 th) of that month.

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

     2.8   Security Deposit. This provision shall only apply in the event that
           ----------------
Tenant substitutes a cash deposit in accordance with Paragraph 4 of the
Addendum. The Security Deposit set forth in Section 1.9 (if any) shall be held
by Landlord for the performance of Tenant's covenants and obligations under this
Lease, it being expressly understood that the Security Deposit shall not be
considered an advance payment of Rent or a measure of Landlord's damage in case
of default hereunder by Tenant, and shall be held by Landlord without payment of
any interest thereon. Upon the occurrence of any event of default by Tenant
under this Lease, Landlord may, from time to time, without prejudice to any
other remedy, use the Security Deposit to the extent necessary to make good any
arrears of Rent, or to repair any damage or injury, or pay any expense or
liability incurred by Landlord as a result of the event of default or breach of
covenant, and any remaining balance of the Security Deposit shall be returned by
Landlord to Tenant upon the termination of this Lease. If any portion of the
Security Deposit is so used or applied, Tenant shall upon ten (10) days written
notice from Landlord, deposit with Landlord by cash or cashier's check an amount
sufficient to restore the Security Deposit to its original amount. The Security
Deposit may be assigned and transferred by Landlord to the successor in interest
of Landlord and, upon acknowledgment by such successor of receipt of such
security and its assumption of the obligation to account to Tenant for such
security in accordance with the terms of this Lease, Landlord shall thereby be
discharged of any further obligation relating thereto.

     2.9   Notice to Vacate. (SEE ADDENDUM.)
           ----------------

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

                   ARTICLE 3. - OCCUPANCY, USE AND OPERATIONS

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

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

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

          (a)  Landlord represents that the Premises will comply with all
applicable laws, regulations and codes at the Commencement Date. Thereafter,
Tenant, at Tenant's sole cost and expense, shall comply with all laws,
ordinances, orders, rules and regulations of state, federal, municipal or other
agencies or bodies having jurisdiction over the use, condition or occupancy of
the

                                  Page 3 of 12

<PAGE>

Premises. Tenant shall procure at its own expense all permits and licenses
required for the transaction of its business in the Premises.

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

          (c)  Tenant will comply with the rules and regulations of the Property
adopted by Landlord attached hereto as Exhibit E. If Tenant is not complying
with such rules and regulations, or if Tenant is in any way not complying with
this Article 3, then, notwithstanding anything to the contrary contained herein,
Landlord may, at its election, enter the Premises without liability therefor and
fulfill Tenant's obligations.

Tenant shall reimburse Landlord on demand, as Additional Rent, for any expenses,
which Landlord may incur in effecting compliance with Tenant's obligations, and
agrees that Landlord shall not be liable for any damages resulting to Tenant
from such action except due to Landlord's negligence or willful misconduct.
Landlord shall have the right at all times to change and amend the rules and
regulations in any reasonable manner as it may deem advisable for the safety,
care, cleanliness, preservation of good order and operation or use of the
Property or the Premises. All changes and amendments to the rules and
regulations of the Property will be forwarded by Landlord to Tenant in writing
and shall thereafter be carried out and observed by Tenant.

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

     3.5   Inspection. With reasonable prior notice and subject to accompaniment
           ----------
by Tenant, except in the event of an emergency. Landlord or its authorized
agents shall at any and all reasonable times have the right to enter the
Premises to inspect the same, to supply janitorial service or any other service
to be provided by Landlord, to show the Premises to prospective mortgagees,
purchasers or prospective tenants (within the last six (6) months of the Lease
Term), and to alter, improve or repair the Premises or any other portion of the
Property provided that such entry does not unreasonably interfere with Tenant's
use or occupancy of the Premises. Tenant hereby waives any claim for abatement
or reduction of rent, or for any damages for injury, or inconvenience to, or
interference with, Tenant's business, for any loss or occupancy or use of the
Premises, and for any other loss occasioned thereby unless such loss was caused
by the negligence or willful misconduct of Landlord. Landlord shall have the
right at all times to enter the Premises by any means in the event of an
emergency without liability therefor.

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

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

                       ARTICLE 4. - UTILITIES AND SERVICE

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

     4.2   Tenant Responsible for Charges. Tenant shall promptly pay all charges
           ------------------------------
and deposits for electricity, water, gas, telephone service and sewage service
and other utilities furnished to the Premises. Landlord may, if it so elects,
furnish one or more utility services to Tenant, and in such event, Tenant shall
purchase the use of such services as are tendered by Landlord, and shall pay on
demand the rates established therefor by Landlord which shall not exceed the
rate which would be charged for the same services if furnished to Tenant
directly by the local public utility furnishing the same to the public at large
and including any discounts or credits obtained by Landlord. Landlord may at any
time discontinue furnishing any such service without obligation to Tenant other
than to connect the Premises to the public utility, if any, furnishing such
service.

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

     4.4   No Liability. Landlord shall not be liable for any interruption
           ------------
whatsoever in utility services not furnished by it, nor for interruption in
utility service furnished by it which are due to fire, accident, strikes, acts
of God, riot, civil commotion, terrorist act, national emergency, shortage of
labor or materials or other causes beyond the control of Landlord or in order to
make alterations, repairs or improvements unless such interruption was because
of the negligence or willful misconduct of Landlord. Moreover, Landlord shall
not be liable for any interruption of such utility services, which continues
during any reasonable period necessary to restore such service upon the
occurrence of any of the foregoing conditions unless due to Landlord's
negligence or willful misconduct. Failure by Landlord to any extent to provide
any services of Landlord specified herein or any other services not specified,
or any cessation thereof,

                                  Page 4 of 12

<PAGE>

shall not render Landlord liable in any respect for damages to either person or
property, be construed as an eviction of Tenant, or an abatement of rent or
relieve Tenant from fulfillment of any covenant in this Lease unless such
interruption was because of the negligence or willful misconduct of Landlord. If
any of the equipment or machinery necessary or useful for provision of any
utility services, and for which Landlord is responsible, breaks down, or for any
cause ceases to function properly, shall use reasonable diligence to repair the
same promptly, but Tenant shall have no claim for rebate of rent or damages on
account of any interruption in service occasioned from the repairs unless such
failure to function was because of the negligence or willful misconduct of
Landlord.

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

                      ARTICLE 5. - REPAIRS AND MAINTENANCE

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

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

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

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

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

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

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

On the Commencement Date, Landlord shall assign to Tenant the warranty covering
the new HVAC unit and any other warranties on any portions or components of the
Premises, which Tenant is required to maintain or repair under this Lease.

     5.3   Request for Repairs. All requests for repairs or maintenance to
           -------------------
Landlord pursuant to Section 5.1 of this Lease must be made in writing to
Landlord at the address in Section 1. except, in an emergency situation, a
telephone call shall be acceptable with a written follow-up. All repairs must be
completed within a reasonable period of time.

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

                    ARTICLE 6. - ALTERATIONS AND IMPROVEMENTS

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

     6.2   Tenant Improvements. Tenant shall not make or allow to be made any
           -------------------
alterations, physical additions or improvements in or to the Premises without
first obtaining the written consent of Landlord, which consent shall not be
unreasonably withheld, conditioned, or delayed. Any alterations, physical
additions or improvements to the Premises made by or installed by either party
hereto shall remain upon and be surrendered with the Premises and become the
property of Landlord upon the expiration or earlier termination of this Lease
without credit to Tenant; provided, however, Landlord, at its option, may
require Tenant to remove any physical improvements or additions and/or repair
any alterations in order to restore the Premises to the condition existing at
the time Tenant took possession, all costs of removal and/or alterations to be
borne by Tenant. Notwithstanding the foregoing, Tenant may request in writing
that Landlord make a determination at the time of consent as to whether the
Tenant improvements will have to be removed at the end of the Lease Term. This
clause shall not apply to moveable equipment, furniture or moveable trade
fixtures owned by Tenant, which may be removed by Tenant at the end of the term
of this Lease. Tenant shall have no authority or power, express or

                                  Page 5 of 12

<PAGE>

implied, to create or cause any mechanic's or materialmen's lien, charge or
encumbrance of any kind against the Premises, the Property or any portion
thereof. Tenant shall promptly cause any such liens that have arisen by reason
of any work claimed to have been undertaken by or through Tenant to be released
by payment, bonding or otherwise within thirty (30) days after request by
Landlord, and shall indemnify Landlord against losses arising out of any such
claim (including, without limitation, reasonable legal fees and court costs).

     6.3   Common and Service Area Alterations. Landlord shall have the right to
           -----------------------------------
decorate and to make repairs, alterations, additions, changes or improvements,
whether structural or otherwise, in, about or on the exterior of the Property,
or any part thereof exclusive of the Premises, and to change, alter, relocate,
remove or replace service areas and/or Common Areas, and to otherwise alter or
modify the Property exclusive of the Premises, and for such purposes, to take
such measures for safety or for the expediting of such work as may be required,
in Landlord's judgment, all without affecting any of Tenant's obligations
hereunder, provided such changes do not unreasonably interfere with Tenant's use
and enjoyment of the Premises.

                       ARTICLE 7. - CASUALTY AND INSURANCE

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

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

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

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

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

                                  Page 6 of 12

<PAGE>

indemnify Tenant and hold Tenant harmless from any liability, loss, expense or
claim (including, but not limited to reasonable attorneys' fees) arising out of
the negligence or willful misconduct of Landlord.

     7.6   Insurance. Tenant at all times during the Lease shall, at its own
           ---------
expense, keep in full force and effect the following policies:

     (a)  commercial general liability insurance with "personal injury" coverage
and contractual liability coverage, with minimum combined bodily injury and
property damage limit of $1,000,000 per occurrence per location subject to no
deductible.

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

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

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

     These policies shall be written on an occurrence basis. All policies noted
above shall be written with insurance companies licensed to do business in the
State of North Carolina and rated no lower than A: 10 in the most current
edition of A.M. Best's Casualty Key Rating Guide. All policies shall be endorsed
to provide that in the event of cancellation, non-renewal or material
modification, Landlord shall receive thirty (30) days written notice thereof.
Landlord shall be an additional insured on the policies . Definition of
additional insured shall include all partners, officers, directors, employees,
agents and representatives of the named entities including its managing agent.
Further, coverage for additional insured shall apply on a primary basis
irrespective of any other insurance, whether collectible or not. All insurance
policies or duly executed certificates for the same required to be carried by
Tenant under this Lease, together with satisfactory evidence of the payment of
the premium thereof, shall be deposited with Landlord on the date Tenant first
occupies the Premises and upon renewals of such policies not less than fifteen
(15) days prior to the expiration of the term of such coverage. All insurance
required to be carried by Tenant under this Lease shall be in form and content,
and written by insurers acceptable to Landlord, in its reasonable discretion. If
Tenant shall fail to comply with any of the requirements contained relating to
insurance, Landlord may obtain such insurance and Tenant shall pay to Landlord,
on demand as additional rent hereunder, the premium cost thereof.

     7.8   Hazardous Materials. Throughout the term of this Lease, Tenant shall
           -------------------
prevent the presence, use, generation, release, discharge, storage, disposal, or
transportation of any Hazardous Materials (as hereinafter defined) on, under,
in, above, to, or from the Premises other than in strict compliance with all
applicable federal, state, and local laws, rules, regulations and orders. For
purposes of this provision, the term "Hazardous Materials" shall mean and refer
to any wastes, materials, or other substances of any kind or character that are
or become regulated as hazardous or toxic, or which require special handling or
treatment, under any applicable local, state or federal law, rule, regulation or
order. In addition, the term "Hazardous Materials" includes (i) oil of any kind
and in any form, including, but specifically not limited to, petroleum, crude
oil, diesel oil, fuel oil, gasoline, lubrication oil, oil refuse, oil mixed with
other waste, oil sludge, petroleum related products or by-products, and all
other liquid hydrocarbons, regardless of specific gravity, whether singly or in
combination with other substances; and (ii) natural gas, synthetic gas usable
for fuel, and mixtures of natural gas and such synthetic gas. If Tenant, its
employees, agents contractors, subtenants, licensees, concessionaires, invitees
or guests shall violate this provision, Tenant shall indemnify, defend, and hold
Landlord, its affiliates and their employees, agents, officers, directors,
members and managers, harmless from and against the following:

          (a)  any loss, cost, expense, claim, liability, injury or damage
(incidental, consequential, indirect and direct), including, but not limited to,
reasonable attorneys fees and expert and consulting fees, arising out of any
investigation, monitoring, clean-up, containment, removal, storage, or
restoration work (herein referred to as "Remedial Work") required by, or
incurred by Landlord or any other person or party in a reasonable belief that
such Remedial Work is required by any applicable federal, state or local law,
rule, regulation or order, or by any governmental agency, authority, or
political subdivision having jurisdiction over the Premises, and

          (b)  any claims of third parties for any loss, cost, expense, claim,
liability, injury or damage (incidental, consequential, indirect and direct),
including, but not limited to, reasonable attorneys fees and expert and
consulting fees, arising out of the presence, release, threatened release or
discharge of any Hazardous Materials on, under, in, above, to, or from the
Premises.

     In the event any Remedial Work is required under any applicable federal,
state, or local law, rule, regulation or order, as a result of any violation by
                                                -------------------------------
Tenant of the foregoing, Tenant shall promptly perform or cause to be performed
-----------------------
such Remedial Work in compliance with such law, rule, regulation, or order. In
the event Tenant shall fail to commence the Remedial Work in a timely fashion,
or shall fail to prosecute diligently the Remedial Work to completion, such
failure shall constitute an Event of Default on the part of Tenant under the
terms of this Lease, and Landlord, in addition to any other rights or remedies
afforded it hereunder, may, but shall not be obligated to, upon thirty (30) days
prior notice to Tenant (except in the event of exigent circumstances), cause the
Remedial Work to be performed, and Tenant shall promptly reimburse Landlord for
the cost and expense thereof upon demand.

Landlord represents and warrants to Tenant that, to the best of Landlord's
knowledge, as of the Commencement Date, no Hazardous Materials are present on,
under, in or above the Property in violation of any applicable federal, state or
local laws, rules, regulations or orders. Landlord shall indemnify, defend and
hold Tenant, its directors, employees, and officers harmless from and against
any loss, cost or damage arising out of any Hazardous Materials being present
on, under, in or above the Property as of the Commencement Date, or arising out
of any Hazardous Materials present, released or discharged following the
Commencement Date which are the result of the acts or omissions of Landlord.

                            ARTICLE 8. - CONDEMNATION

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

     8.2   Partial Taking. If in the reasonable determination of Landlord a
           --------------
portion of the Premises shall be taken for any public or quasi-public use under
any governmental law, ordinance or regulation, or by right of eminent domain or
by purchase in lieu thereof,

                                  Page 7 of 12

<PAGE>

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

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

                       ARTICLE 9. - ASSIGNMENT OR SUBLEASE

     9.1   Tenant Assignment. Tenant shall not assign, in whole or in part, this
           -----------------
Lease, or allow it to be assigned, in whole or in part, by operation of law or
otherwise (including without limitation by merger, dissolution or transfer of a
controlling interest in any partnership or corporate Tenant unless such transfer
of control occurs in connection with any public offering of the Shares of Common
Stock of the Tenant or if such transfer of control results from additional debt
or equity financings, which merger, dissolution or transfer shall be deemed an
assignment) or mortgage or pledge the same, or sublet the Premises, in whole or
in part, without the prior written consent of Landlord, not to be unreasonably
withheld, conditioned, or delayed, and in no event shall any such assignment or
sublease ever release Tenant or any guarantor from any obligation or liability
hereunder. No assignee or sublessee of the Premises or any portion thereof may
assign or sublet the Premises or any portion thereof without also obtaining such
                                                     ---------------------------
consent from Landlord. Notwithstanding the foregoing, Tenant may, without
---------------------
Landlord's consent but upon notice to Landlord, assign this Lease or sublet the
Premises, in whole or in part, to any entity controlled by, controlling or under
common control with Tenant or to any entity succeeding to Tenant or Tenant's
business by merger or purchase of assets, provided the assignee's credit is at
least as good as Tenant's at the time of the Commencement Date.

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

               (1)  cancel this Lease as to the Premises or portion thereof
proposed to be assigned or sublet;

               (2)  consent to the proposed assignment or sublease, and, if the
rent due and payable by any assignee or sublessee under any such permitted
assignment or sublease (or a combination of the rent payable under such
assignment or sublease plus any bonus or any other consideration or any payment
incident thereto) exceeds the rent payable under this Lease for such space,
Tenant shall pay to Landlord one-half of all such excess rent and other excess
consideration within ten (10) days following receipt thereof by Tenant; or

               (3)  refuse, in its reasonable discretion and judgment, to
consent to the proposed assignment or sublease, which refusal shall be deemed to
have been exercised unless Landlord gives Tenant written notice stating
otherwise.

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

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

     9.4   Rights of Mortgagee. Tenant accepts this Lease subject and
           -------------------
subordinate to any recorded lease, mortgage or deed of trust lien presently
existing, if any, or hereafter encumbering the Property and to all existing
ordinances and recorded restrictions, covenants, easements, and agreements with
respect to the Property. Landlord hereby is irrevocably vested with full power
and authority to subordinate Tenant's interest under this Lease to any mortgage
or deed of trust lien hereafter placed on the Property. Upon any foreclosure,
judicially or non-judicially, of any such mortgage, or the sale of the Property
in lieu of foreclosure, or any other transfer of Landlord's interest in the
Property, whether or not in connection with a mortgage, Tenant hereby does, and
hereafter agrees to attorn to the purchaser at such foreclosure sale or to the
grantee under any deed in lieu of foreclosure or to any other transferee of
Landlord's interest, and shall recognize such purchaser, grantee, or other
transferee as Landlord under this Lease, and no further attornment or other
agreement shall be required to effect or evidence Tenant's attornment to and
recognition of such purchaser or grantee as Landlord hereunder provided Tenant
is given a Non-Disturbance and Attornment Agreement. Such agreement of Tenant to
attorn

                                  Page 8 of 12

<PAGE>

shall survive any such foreclosure sale, trustee's sale, conveyance in lieu
thereof, or any other transfer of Landlord's interest in the Property. Tenant,
upon demand, at any time, before or after any such foreclosure sale, trustee's
sale, conveyance in lieu thereof, or other transfer shall execute, acknowledge,
and deliver to the prospective transferee and/or mortgage a Lease Subordination,
Non-Disturbance and Attornment Agreement and any additional written instruments
and certificates evidencing such attornment as the mortgagee or other
prospective transferee may reasonably require. Notwithstanding anything to the
contrary implied in this Section, any mortgagee under any mortgage shall have
the right at any time to subordinate any such mortgage to this Lease on such
terms and subject to such conditions as the mortgagee in its discretion may
consider appropriate.

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

                               ARTICLE 10. - LIENS

     10.1  INTENTIONALLY DELETED

     10.2  INTENTIONALLY DELETED

     10.3  Upon request of Tenant or Tenant's assignees or any subtenant,
Landlord shall execute and deliver a Landlord Waiver in the form attached hereto
as Exhibit H.

                       ARTICLE 11. - DEFAULT AND REMEDIES

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

               (1)  Tenant shall fail to pay within five (5) days of written
notice any installment of Rent or any other payment required pursuant to this
Lease;

               (2)  Tenant shall vacate, abandon or cease to operate its
business for a period of more than 5 business days in any substantial portion of
the Premises (other than for renovation or casualty) (If Tenant vacates or
ceases to operate its business in the Premises it must continue to comply with
all other obligations of the Lease and maintain one (1) full-time security guard
in the Premises during normal business hours.);

               (3)  Tenant or any guarantor of Tenant's obligations hereunder
shall file a petition or be adjudged bankrupt or insolvent under any applicable
federal or state bankruptcy or insolvency law or admit that it cannot meet its
financial obligations as they become due, or a receiver or trustee shall be
appointed for all or substantially all of the assets of Tenant or any guarantor
of Tenant's obligations hereunder;

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

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

               (6)  the liquidation, termination, dissolution or (if the Tenant
is a natural person) the death of Tenant or any guarantor of Tenant's
obligations hereunder;

               (7)  Tenant shall be in default of any other term, provision or
covenant of this Lease, and such default is not cured within thirty (30) days
after written notice thereof to Tenant.

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

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

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

               (3)  Landlord may terminate this Lease, in which event Tenant
shall immediately surrender the Premises to Landlord, and if Tenant fails to
surrender the Premises, Landlord may, without prejudice to any other remedy
which it may have for

                                  Page 9 of 12

<PAGE>

possession or arrearages in rent, enter upon and take possession of the
Premises, by picking or changing locks if necessary, and lock out, expel or
remove Tenant and any other person who may be occupying all or any part of the
Premises without being liable for any claim for damages. Tenant agrees to pay on
demand the amount of all loss and damage which Landlord may suffer for any
reason due to the termination of this Lease under this Section 11.2, including
(without limitation) past due amounts, any remaining unpaid balance of amortized
construction costs, loss and damage due to the failure of Tenant to maintain
and/or repair the Premises as required hereunder and/or due to the inability of
Landlord to relet the Premises on reasonably satisfactory terms or otherwise.

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

     Notwithstanding any other remedy set forth in this Lease, if Landlord has
made rent concessions of any type or character, or waived any Base Rent, and
Tenant fails to take possession of the Premises on the Commencement Date or
otherwise defaults at any time during the term of this Lease beyond any
applicable cure periods, the rent concessions, including any waived Base Rent,
shall be canceled and the amount of the Base Rent or other rent concessions
shall be due and payable immediately as if no rent concessions or waiver of any
Base Rent had ever been granted. A rent concession or waiver of the Base Rent
shall not relieve Tenant of any obligation to pay any other charge due and
payable under this Lease. Notwithstanding anything contained in this Lease to
the contrary, this Lease may be terminated by Landlord only by written notice of
such termination to Tenant given in accordance with Section 13.7 below, and no
other act or omission of Landlord shall be construed as a termination of this
Lease.

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

                            ARTICLE 12. - DEFINITIONS

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

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

                           ARTICLE 13. - MISCELLANEOUS

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

     13.2  Act of God. Neither party shall be required to perform any covenant
           ----------
or obligation in this Lease, or be liable in damages to the other party, so long
as the performance or non-performance of the covenant or obligation is delayed,
caused or prevented by an act of God, force majeure or by such other party.

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

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

     13.5  Rent Tax. If applicable in the jurisdiction where the Premises are
           --------
situated, Tenant shall pay and be liable for all rental, sales and use taxes or
other similar taxes, if any, levied or imposed by any city, state, county or
other governmental body having authority, such payments to be in addition to all
other payments required to be paid to Landlord by Tenant under the terms of this
Lease. Any such payment shall be paid concurrently with the payment of the Base
Rent, Additional Rent, Common Area Costs, or other charge upon which the tax is
based as set forth above.

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

     13.7  Notices. All rent and other payments required to be made by Tenant
           -------
shall be payable to Landlord, in care of Manager, at Manager's address set forth
on page 1 (or if no address be set forth for Manager, to Landlord at Landlord's
address set forth on page 1). All payments required to be made by Landlord to
Tenant shall be payable to Tenant at Tenant's address set forth on

                                 Page 10 of 12

<PAGE>

page 1. Any notice or document (other than rent) required or permitted to be
delivered by the terms of this Lease shall be deemed to be delivered when
deposited in the United States Mail, postage prepaid, certified mail, return
receipt required, addressed to the parties at the respective addresses set forth
on page 1, or to such other addresses as the parties may have designated by
written notice to each other, with copies of notices to Landlord being sent to
Landlord's address as shown on page 1. Manager shall be a co-addressee with
Landlord on all notices sent to Landlord by Tenant hereunder, and any notice
sent to Landlord and not to Manager, also, in accordance with this section shall
be deemed ineffective.

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

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

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

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

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

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

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

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

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

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

     13.18 Parking. Landlord will provide, at no additional cost, as many
           -------
parking spaces as required by the City of Raleigh (for the square footage of the
Premises' but in no event less than two and one-half (2.5) spaces per one
thousand (1,000) square feet. Landlord may, from time to time, designate
specific areas in which vehicles owned by Tenant and its employees shall be
parked, and Tenant shall use best efforts to see that such vehicles are parked
in such areas. Upon request, Tenant shall furnish to Landlord a

                                                            Please Initial

                                 Page 11 of 12

<PAGE>

complete list of the license numbers of all vehicles operated by Tenant and its
employees.

     13.19 Tenant's Indemnities. All representations, warranties and indemnities
           --------------------
given by Tenant or Landlord pursuant to this Lease shall survive the expiration
or earlier termination of the Lease Term.

              ARTICLE 14. - AMENDMENT AND LIMITATION OF WARRANTIES

     14.1  Entire Agreement. IT IS EXPRESSLY AGREED BY TENANT, AS A MATERIAL
           ----------------
CONSIDERATION FOR THE EXECUTION OF THIS LEASE, THAT THIS LEASE, WITH THE
SPECIFIC REFERENCES TO EXTRINSIC DOCUMENTS, IS THE ENTIRE AGREEMENT OF THE
PARTIES; THAT THERE ARE, AND WERE, NO VERBAL REPRESENTATIONS, WARRANTIES,
UNDERSTANDINGS, STIPULATIONS, AGREEMENTS OR PROMISES PERTAINING TO THE SUBJECT
MATTER OF THIS LEASE OR OF ANY EXPRESSLY MENTIONED EXTRINSIC DOCUMENTS THAT ARE
NOT INCORPORATED IN WRITING IN THIS LEASE OR IN SUCH DOCUMENTS.

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

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

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

     14.5  Non-Disclosure of Lease Terms. NOTWITHSTANDING ANYTHING CONTAINED
           -----------------------------
WITHIN THIS LEASE TO THE CONTRARY, IF TENANT DISCLOSES ANY OF THE MATERIAL TERMS
AND/OR PROVISIONS OF THIS LEASE, INCLUDING BUT NOT LIMITED TO THE BASE RENT,
TENANT'S COMMON AREA COSTS OR ANY CAPS ON SUCH COSTS, THE TENANT FINISH OUT
ALLOWANCE, TENANT'S PROPORTIONATE SHARE OF GENERAL TAXES OR ANY CAP ON SUCH
EXPENSE, TENANT'S PROPORTIONATE SHARE OF INSURANCE PREMIUMS OR ANY CAP ON SUCH
EXPENSE, OR THE LEASE TERM TO ANY PERSON OR ENTITY NOT A PARTY TO THIS LEASE,
EXCEPT TENANT'S ATTORNEY AND TENANT'S REAL ESTATE REPRESENTATIVE (BUT ONLY TO BE
USED FOR PURPOSES OF THIS TRANSACTION AND NO OTHER), THEN TENANT SHALL BE LIABLE
FOR ALL DAMAGE OR INJURY TO LANDLORD RESULTING FROM TENANT'S FAILURE TO KEEP ALL
SUCH INFORMATION CONFIDENTIAL AND TENANT SHALL INDEMNIFY AND HOLD LANDLORD
HARMLESS FROM ANY DAMAGE, LOSS OR INJURY OCCASIONED THEREBY. IN THE ALTERNATIVE,
AND AT LANDLORD'S SOLE OPTION, IF DAMAGES ARE DIFFICULT TO CALCULATE, TENANT
SHALL PAY LIQUIDATED DAMAGES EQUAL TO ONE (1) MONTH'S BASE RENT AS DEFINED IN
ARTICLE 1 HEREOF.

     14.6  The parties shall prepare, execute and record a memorandum of this
Lease, which shall include a summary of the basic terms of the Lease, including
the names of the parties, the Lease Term, and all extended term periods, a
description of the Premises.

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

     IN WITNESS WHEREOF, the parties have executed this Lease causing their
respective seals to be affixed hereto.

     EXECUTED by Tenant on ________________________________________, 2001, and
by Landlord on October 4, 2001, to be effective upon full execution by Landlord
               ---------
and Tenant.

                                            LANDLORD:

                                            PARKER-RALEIGH DEVELOPMENT XXX, LLC
                                            By: Parker Lincoln Developers, Inc.,
                                                    its Managing Agent

ATTEST:

/s/  Vickie B. Poor                         By: /s/ David L. Brady, CEO  (SEAL)
-------------------------------                 -------------------------

Asst.  Secretary                                    Vice President
----                                                ----

(CORPORATE SEAL)

                                            TENANT:

                                            LIPOMED, INC.,
                                                    a Delaware corporation

ATTEST:

/s/ Fred D. Hutchison                       By: /s/ Richard A. Franco    (SEAL)
-------------------------------                 -------------------------

Asst. Secretary                             _____________ Chairman
-----

(CORPORATE SEAL)                            Name:  ______________________
                                                       Type or Print

                                                                  Please Initial

                                 Page 12 of 12

<PAGE>

                                    Exhibit A

                                Legal Description

                             Parker Business Center
                                  Building #307
                              2540 Sumner Boulevard
                                Raleigh, NC 27616

BEING all of lot 16 (consisting of 3.507 acres) as shown on Plat entitled
"Subdivision and Right of Way Dedication Map of Parker Business Center" prepared
by Kenneth Close, Inc., Land Surveying and recording in Book of Maps 1998, Page
201, Wake County Registry.

                             Parker Business Center
                                  Building #308
                              2500 Sumner Boulevard
                                Raleigh, NC 27616

BEING all of Lot 17 (consisting of 3.016 acres) as shown on Plat entitled
"Recombination Map of Parker Business Center Lots 17 - 19" prepared by Kenneth
Close, Inc., Land Surveying and recording in Book of Maps 2000, Page 201, Wake
County Registry.

                                                                  Please Initial

<PAGE>

                                    EXHIBIT B

                                    SITE PLAN

                             Parker Business Center
                             Raleigh, North Carolina

                               [MAP APPEARS HERE]

                                                                  Please Initial

<PAGE>

                                    EXHIBIT C
                                  BUILDING PLAN

                             Parker Business Center

                      Buildings 307, 308 and the Connector

                    2500 Sumner Boulevard, Raleigh, NC 27616

                              [TO BE FORTHCOMING.]

                                                                  Please Initial

<PAGE>

                                    EXHIBIT D

                               Commencement Letter

                              [TO BE FORTHCOMING.]

                                                                  Please Initial

<PAGE>

                                    EXHIBIT E

                               RULES & REGULATIONS

The following rules and regulations will remain in full force and affect until
Landlord notifies Tenant of any changes in writing.

   1.  Access to the Building. Access to the Premises shall be gained by use of
       ----------------------
       a key to the outside doors of the Premises. Landlord may, from time to
       time, establish security controls for the purpose of regulating access to
       the Building. Tenant shall abide by all such security regulations to be
       established.

   2.  Protecting Premises. Before leaving the Premises unattended, Tenant shall
       -------------------
       close and securely lock all doors or other means of entry to the
       Premises. Tenant must maintain an adequate number of suitable fire
       extinguisher on the Premises at all times for use in case of fire,
       including electrical or chemical fires.

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

   4.  Signs. Tenant shall not paint, display, inscribe, maintain or affix any
       -----
       sign, placard, picture, advertisement, name, notice, lettering or
       direction on any part of the outside or inside of the Building, or any
       part of the inside of the Premises which can be seen from the outside of
       the Premises, without the written consent of the Landlord, and then only
       such name or names or matter and in such color, size, style, character
       and material as shall be first approved Landlord in writing. Landlord
       reserves the right to remove, at the Tenant's expense, all matter other
       than that above provided for without notice to Tenant. Under no
       circumstances shall Tenant display or cause or allow to be displayed, on
       or in the Premises, any sign for a real estate company, broker, brokerage
       company or person or company engaged in the leasing of real property
       other than Parker Lincoln Commercial Realty, Inc. Further, Tenant shall
       not place a "For Rent" or "For Lease" sign in or on the Premises.

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

   6.  Waste Disposal. Tenant must keep, and prepare for collection, all garbage
       --------------
       and refuse in a container approved by Landlord. Landlord must also
       approve the location of the container. Tenant will be responsible for the
       cost of container and the cost of trash removal. Tenant must not burn
       trash or garbage of any kind on or about the Premises or the Building or
       Property where located.

   7.  Antenna or satellite dish. Tenant may not erect any aerial, antenna or
       -------------------------
       satellite dish on the roof or exterior walls of the Premises or on the
       grounds. Any such installation will be subject to removal without notice
       at any time.

   8.  Obstruction of Public Areas. Tenant may not place or permit any
       ---------------------------
       obstructions, materials or equipment in the outside areas adjoining the
       Premises without the written consent of the Landlord. All equipment,
       merchandise, freight or other materials must be moved inside the Premises
       at the end of each business day. Tenant shall not, whether temporarily,
       accidentally or otherwise, allow anything to remain in, place or store
       anything in, or obstruct in any way, any sidewalk, court, passageway,
       entrance, or shipping area. Tenant shall lend its full cooperation to
       keep such areas free from all obstruction and in a clean and sightly
       condition, and move all supplies, furniture and equipment as soon as
       received directly to the Premises, and shall move all such items and
       waste (other than waste customarily removed by the Building employees)
       that are any time being taken from the Premises directly to the areas
       designated for disposal. All courts, passageways, entrances, exits,
       elevators, escalators, stairways, corridors, halls and roofs are not for
       the use of the general public and Landlord shall in all cases retain the
       right to control and prevent access thereto by all persons whose presence
       in the judgement of Landlord shall be prejudicial to the safety,
       character, reputation and interest of the Building and its tenants;
       provided, however, that nothing herein contained shall be construed to
       prevent such access to persons with whom Tenant deals within the normal
       course of Tenant's business unless such persons are engaged in illegal
       activities.

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

   10. Additional Locks. Tenant shall not attach or permit to be attached
       ----------------
       additional locks or similar devices to any door or window, change
       existing locks or the mechanism thereof, or make or permit to be made any
       keys for any door

                                                             Please Initial

                                  Page 1 of 3

<PAGE>

       other than those provided by Landlord. Upon termination of this lease or
       termination of Tenant's possession, Tenant shall surrender all keys to
       the Premises.

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

       Tenant shall not operate any electrical device from which may emanate
       electrical waves, which may interfere with or impair radio or television
       broadcasting or reception from or in the Building or elsewhere and/or
       cause distributing noises or vibrations. Tenant shall not use any
       illumination or power for the operation of any equipment or device other
       than electricity.

   12. Parking. Parking is in designated parking areas only. There should not be
       -------
       any parking in the "no parking" zones or at curbs. Handicapped spaces are
       for handicapped persons and the Police Department will ticket unauthoriz-
       ed (unidentified) cars in handicapped spaces. Tenant's employees should
       not use visitor parking spaces. Storage of vehicles on the parking lot is
       prohibited except with the written consent of the Landlord. Landlord will
       designate tenant employee parking.

   13. Pest Control. Tenant must keep the Premises free from pests, insects and
       ------------
       rodents by using a professional pest-exterminating contractor when
       needed, at Tenant's expense.

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

   15. Solicitation. Tenant shall not make any room-to-room canvass to solicit
       ------------
       business from other tenants in the Building or on the Property and shall
       not exhibit, sell or offer to sell, use, rent or exchange any products or
       services in or from the Premises unless ordinarily embraced within the
       Tenant's use of the Premises specified herein and specific authority
       granted in the Lease. Tenant, his employees, and agents, may not solicit
       business in the parking lot or other common areas and may not distribute
       handbills or other advertising matter in automobiles parked in the
       parking area or other common area.

   16. Energy Conservation. Tenant shall not waste electricity, water, heat or
       -------------------
       air conditioning and agrees to cooperate fully with Landlord to assure
       the most effective operation of the Building's heating and air
       conditioning, and shall not allow the adjustment (except by Landlord's
       authorized Building personnel) of any controls.

   17. Intoxication. Landlord reserves the right to exclude or expel from the
       ------------
       Property any person who, in the judgement of Landlord, is intoxicated or
       under the influence of liquor or drugs, or who shall in any manner do any
       act in violation of any of the rules and regulations of the Property.

   18. Nuisances and Certain Other Prohibited Uses. Tenant shall not:
       -------------------------------------------

       (a)  engage in any mechanical business, utilize any article or thing, or
            engage in any service in or about the Premises or Property, except
            those ordinarily embraced within the permitted use of the Premises;

       (b)  use the Premises for housing, lodging, or sleeping purposes;

       (c)  create excessive noise, place a musical or sound producing
            instrument or device inside or outside the Premises which may be
            heard outside the Premises;

       (d)  bring or permit to be in the Building any bicycle or other vehicle,
            or dog (except in the company of a blind person) or other animal or
            bird;

       (e)  cause or permit any noxious or offensive odors, fumes, gases, smoke,
            dust, steam or vapors;

       (f)  do anything in or about the Premises tending to create or maintain a
            nuisance or do any act tending to injure the reputation of the
            Property.

   19. HVAC Equipment. All heating and air conditioning equipment must be
       --------------
       maintained by Tenant and inspected and serviced by a qualified, licensed
       contractor on a quarterly basis. The quarterly inspections and service
       must occur no later than March 31, June 30, September 30, and December 31
       of each calendar year. Within ten (10) days of each quarterly inspection
       and service date, Tenant must provide to Landlord a report from the
       contractor performing such inspection and service. If the Commencement
       Date of Tenant's Lease is less than sixty-day (60 days) from the next
       scheduled quarterly inspection and service date, Tenant shall be
       permitted to skip such inspection and service and begin on the following
       date. If Tenant fails to have the quarterly inspection and service
       performed in accordance with this provision or fails to provide the
       required report to Landlord, Landlord may have the inspection and service
       performed and bill Tenant for the cost thereof plus a 15% administrative
       cost.

                                                              Please Initial

                                  Page 2 of 3

<PAGE>

   20. Window Treatments. If Tenant desires to install window coverings,
       -----------------
       Landlord must approve them in writing before installation.

   21. Amendment of Rules & Regulations. Landlord reserves the right to amend or
       --------------------------------
       waive any of the foregoing rules or regulation at any time when, in its
       judgement, it is in the property's best interests and the Tenant's best
       interests. No such amendment or waiver of any rules and regulation in
       favor of one Tenant operates as an alteration or waiver in favor of any
       other Tenant. Landlord is not responsible to any Tenant for the
       non-observance or violation by any other Tenant of any of these rules and
       regulations at any time.

                                                              Please Initial

                                  Page 3 of 3

<PAGE>

                                    EXHIBIT F
                                   FLOOR PLAN

                             Parker Business Center

                      Buildings 307, 308 and the Connector

                    2500 Sumner Boulevard, Raleigh, NC 27616

                              [TO BE FORTHCOMING.]

                                                              Please Initial

<PAGE>

                                    EXHIBIT G

                                  Sign Criteria

                             Parker Business Center

                      Buildings 307, 308 and the Connector

                    2500 Sumner Boulevard, Raleigh, NC 27616

                              [TO BE FORTHCOMING.]

                                                              Please Initial

<PAGE>

                                    ADDENDUM

     This Addendum is attached to and incorporated by reference in the lease by
and between PARKER-RALEIGH DEVELOPMENT XXX, LLC ("Landlord") and LIPOMED, INC.
("Tenant") dated October 4, 2001 (the "Lease"). In the event of a conflict
between the terms and conditions of this Addendum and the Lease, this Addendum
shall govern and control. All terms defined in the Lease shall have the same
meaning herein. Except as modified herein, all provisions of the Lease shall be
in full force and effect.

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

     1. Construction of the Premises. The Premises are comprised of Buildings
        ----------------------------
        307 and 308 and the Connector between the Buildings. Tenant desires, and
        Landlord has agreed, to construct improvements (the "Improvements") to
        the exterior and interior of the Premises to meet the needs of Tenant's
        business operations. Landlord will construct the Connector and the
        Improvements in accordance with construction plans (the "Construction
        Plans") to be prepared by Landlord's architects and engineers. The
        Construction Plans for Building 307 will be submitted to Tenant for
        review and approval within ten (10) days of execution hereof and Tenant
        shall respond to Landlord with all comments within five (5) days of
        receipt. Both Landlord and Tenant must approve the Construction Plans
        within twenty (20) days of execution hereof.

        Within forty-five (45) days of the execution of the Lease, Landlord will
        deliver to Tenant the Construction Plans for Building 308 and the
        Connector. Tenant shall have ten (10) days to review and comment on the
        Construction Plans for Building 308 and the Connector. The parties must
        agree on the Building 308 and the Connector Construction Plans within
        sixty (60) days of execution of the Lease. Upon approval, the
        Construction Plans for Building 307, Building 308, and the Connector
        will be attached to the Lease as an exhibit and incorporated herein by
        reference. Landlord and Tenant will work in good faith to agree on the
        Construction Plans for all the Buildings.

        Interior Improvements: Landlord will provide to Tenant a construction
        allowance not to exceed thirty dollars ($30) per square foot of the
        Premises (85,000 square feet) (the "Interior Fit-Up Allowance") for the
        construction of the interior Improvements. Landlord will construct the
        interior Improvements in accordance with the Construction Plans. If the
        cost of the interior Improvements exceeds the Interior Fit-Up Allowance,
        the excess shall be at Tenant's sole expense. Upon completion of the
        interior Improvements for each Building and prior to occupancy of each
        Building, if there is any excess costs over the Interior Fit-Up
        Allowance, Tenant shall reimburse Landlord in current funds for
        Landlord's expenses of every kind and nature in connection with
        construction of the interior Improvements, including, but not limited
        to, all amounts paid by Landlord to the general contractor for
        materials, labor, and services, plus overhead and profit of sixteen
        percent (16%). In the event that the total cost of the interior
        Improvements is less than the Interior Fit-Up Allowance, the difference
        shall be applied to Tenant's monthly Base Rent under the Lease.

        Prior to commencement of construction of the interior Improvements for
        each Building, Landlord will submit to Tenant a breakdown of the
        construction costs. Within five (5) days of receipt of the breakdown,
        Tenant may review, in Landlord's offices, Landlord's supporting
        documentation. The final cost of the interior Improvements for Building
        307 must be agreed upon between Landlord and Tenant within thirty (30)
        days of full execution hereof. The final cost of the interior
        Improvements for Building 308 and the Connector must be agreed upon
        within sixty (60) days of execution hereof.

        Exterior Improvements: Landlord will construct the following
        Improvements to the exterior of the Buildings as shown on the
        Construction Plans:

     (a)  install edge levelers on four (4) existing docks;

     (b)  replace all other existing dock overhead doors with windows;

     (c)  install "spandrel glass" on the exterior ends of the Buildings and the
          side of the Connector facing Sumner Boulevard;

     (d)  construct the "special entry feature"; and

                                  Page 1 of 6

<PAGE>

        (e)   construct two outside break areas (each with one thousand (1,000)
              square feet of concrete pad and two hundred (200) square feet of
              awning.

     2. Construction Delays. In the event that completion of the Buildings is
        -------------------
        delayed due to any act or omission of Tenant or its agents, including
        but not limited to, design changes, change orders, failure to timely
        give an approval or improperly timed activities which are Tenant's
        responsibility ("Tenant Delay") then, in that event, the Rental Waiver
        for both Buildings shall be reduced on a day-for-day basis. If the
        Tenant Delay is longer than fourteen (14) days, Rent shall commence on
        the anticipated completion dates for each Building (December 15, 2001,
        for Building 307 and July 1,2002, for Building 308 and the Connector)
        irrespective of completion of the Improvements or occupancy by Tenant.

        In the event that completion of the Buildings is delayed for any reason
        other than a Tenant Delay, Rent shall not commence until fifteen (15)
        days after the Commencement Date for each Building, and otherwise there
        shall be no other penalty to Landlord.

     3. Rental Waiver. As consideration for Tenant's performance of all
        -------------
        obligations under the Lease, Landlord hereby conditionally waives the
        Base Rent for the first fourteen (14) days of the Lease Term for each
        Building, provided Tenant shall not be in default hereunder. Should
        Tenant at any time during the Lease Term be in default, the total sum of
        such Base Rent so conditionally waived shall become immediately due and
        payable by Tenant to Landlord. If at the expiration of this Lease,
        including any option or renewal periods, Tenant is not in default
        hereunder, Landlord shall permanently waive payment of the conditionally
        waived Base Rent. This waiver does not include Common Area Costs
        Payment, which Tenant shall begin paying on the Commencement Date.

     4. Letter of Credit. Simultaneously with the execution of the Lease, Tenant
        ----------------
        will provide to Landlord a clean, unconditional, irrevocable,
        payable-at-sight letter of credit, which shall conform, in all material
        respects, to the form attached hereto as Exhibit H in the stated
        principal amount of $1,500,000.00, drawn on a bank chartered in North
        Carolina and approved by Landlord (the "Letter of Credit").

        The Letter of Credit shall name Landlord as its beneficiary and shall
        remain outstanding until thirty (30) days after the expiration of the
        Lease Term, including all extensions and renewals. If there shall be an
        event of default under the Lease, in addition to the remedies set forth
        in Section 11.2 of the Lease, Landlord shall have the right immediately,
        without further notice, to draw on the Letter of Credit in whole or in
        part at Landlord's sole discretion to reimburse Landlord for the default
        and all related costs. If Landlord elects to allow Tenant to cure the
        event of default, which Landlord shall not be obligated to do, Tenant
        must provide to Landlord a replacement letter of credit in the same
        amount and with the same terms, and pay to Landlord a nonrefundable fee
        of $5,000.00 to reimburse Landlord for its costs associated with drawing
        upon the Letter of Credit.

        The Letter of Credit may be reduced as follows:

        (a)   on January 1, 2003: to $1,000,000.00 on the condition that Tenant
              had not less than $2,500,000.00 in gross sales each month for the
              year 2002 and 2002 annual net income of not less than
              $5,400,000.00 for 2002, solely from its United States operations,
              coronary heart disease division (the "US Heart Division");

        (b)   on July 1, 2003: to $500,000.00 on the condition that the
              requirements of (a) were timely met and, in addition, the US Heart
              Division had not less than $4,000,000.00 in gross sales each month
              and $6,960,000.00 in net income for the first six (6) months of
              2003;

        (c)   on January 1, 2004: to an amount equal to two (2) months of the
              then current Rent on the condition that the requirements of (a)
              and (b) were timely met and, in addition, that the US Heart
              Division had not less than $5,000,000.00 in gross sales each
              month and a net income of $8,700,000.00 for the last six (6)
              months of 2003. (Subparagraphs (a), (b), (c) are collectively the
              "Financial Benchmarks").

        The Financial Benchmarks must exclude all inter-company sales,
        transfers, and other such transactions. The Financial Benchmarks must be
        based upon examination, by an independent certified public accountant
        ("CPA") reasonably acceptable to Landlord, of Tenant's audited
        (unqualified) balance sheets, statements of income, retained earnings
        and statement of cash flow (collectively "Tenant's Financial
        Statements") for the years in question. The examination must be made in
        accordance with generally accepted auditing standards. The CPA must
        determine in his or her opinion that the Financial Statements present
        fairly the financial

                                  Page 2 of 6

<PAGE>

        position of the Tenant in conformity with generally accepted accounting
        principles ("GAAP") applied on a consistent basis. The CPA must express
        an unqualified opinion based on agreed upon procedures, verifying that
        Tenant's US Heart Division has achieved the applicable Financial
        Benchmarks. Landlord will respond to Tenant within ten (10) days of
        receipt of the audited Financial Statements and an acceptable CPA
        verification. Immediately upon receipt of the audited Financial
        Statements and Landlord's acceptance of the CPA verification, Tenant may
        reduce the Letter of Credit.

        The Letter of Credit will remain at two (2) months Rent for the balance
        of the Lease Term including any renewals and extensions. Tenant may
        substitute a cash deposit of an equal amount for the Letter of Credit in
        which case Section 2.8 of the Lease shall apply.

     5. Renewal Options. On the condition that Tenant has fully complied with
        ---------------
        all the terms and conditions of the Lease, and on the further condition
        that Tenant gives Landlord one hundred eighty (180) days advance written
        notice of its desire to exercise its option to renew (failure to give
        notice being an absolute bar to any right on the part of the Tenant to
        so renew), Landlord hereby gives to Tenant the right to renew this Lease
        for two (2) terms of five (5) additional years each at the then current
        Base Rent plus three percent (3%). Thereafter, the Base Rent shall
        increase annually by three percent (3%). The Common Area Costs shall be
        at Landlord's then current rate. Except as provided above for Base Rent,
        the same terms and conditions as set forth in the Lease shall govern the
        parties' rights and obligations during the renewal term.

     6. Expansion Options. To accommodate Tenant's expansion needs, Landlord
        -----------------
        hereby gives Tenant an option to lease (the "Expansion Option") up to
        one hundred percent (100%), but not less than fifty percent (50%), of a
        building of approximately one-hundred thousand ( 100,000) square feet,
        or of whatever size the City of Raleigh will allow (the "Expansion
        Building") to be constructed by Landlord on the land shown on the
        attached Exhibit B-1. The initial term of the Expansion Option shall
        commence upon the Commencement Date hereof and shall automatically
        expire on January 1, 2003. The Expansion Option shall be at no cost to
        Tenant for the initial term.

        If Tenant elects to lease the Expansion Building, such lease shall
        contain substantially the same terms and conditions as in this Lease
        with the specific business terms to be agreed upon between the parties
        within thirty (30) days of receipt of detailed plans and specifications
        for the Tenant Improvements. Landlord will provide to Tenant a "bid" to
        construct the new building and all improvements. If Tenant elects to
        lease one hundred percent (100%) of the Expansion Building, Tenant may
        obtain bids for the construction from two other qualified, licensed,
        general contractors. If Tenant wishes to use one of the other
        contractors, Tenant must submit the bid and all supporting and related
        documentation to Landlord. Upon receipt of the competing bid with
        supporting documentation, Landlord will have thirty (30) days to notify
        Tenant as to whether Landlord will match the bid or allow Tenant to use
        the other contractor. If Landlord elects to allow Tenant to use the
        other contractor, Tenant must do so and, prior to commencing
        construction, must deliver to Landlord a letter of credit in the amount
        of the bid and in the form required by the Lease as shown on Exhibit H.
        If Tenant elects to lease less than one hundred percent (100%) of the
        Expansion Building, Tenant must use Landlord for all construction.

        All negotiations concerning the Expansion Option must be conducted in
        good faith with the parties using their best efforts to reach an
        agreement. All negotiations and a fully executed lease must be completed
        prior to the expiration of the Expansion Option term (initial or
        extended, as applicable), failure to do so being an absolute bar of
        Tenant's rights under the Expansion Option. Time is of the essence with
        regard to the Expansion Option

     7. Tenant's Right to Audit. Tenant shall have the right to audit Landlord's
        -----------------------
        Books and Records upon the following conditions:

        a. So long as no event of default by Tenant has occurred beyond any
        applicable cure periods, nor any other event with which the passage of
        time or the giving of notice, or both, would constitute an event of
        default by Tenant, under this Lease, Tenant, or its representative,
        shall have the right, at Tenant's sole expense, to inspect and copy
        Landlord's books and records relating to any Common Area Cost
        reconciliation statement (the "Reconciliation Statement") for the
        purpose of verifying the information contained therein (the "Tenant
        Audit"), provided that:

                                  Page 3 of 6

<PAGE>

          i.    Tenant shall have sent notice, in writing, no later than ninety
                (90) days after receipt of the Reconciliation Statement to be
                verified, of its desire to conduct the Tenant Audit (the "Audit
                Notice");

          ii.   The Audit Notice identifies with specificity the particular
                item(s) in the Reconciliation Statement that the Tenant believes
                is/are incorrect; and,

          iii.  Tenant has paid the Reconciliation Statement in full.

     b.   Procedures for Review.

          i.    The Tenant Audit shall be conducted only:

                (A)  By an independent firm of certified public accountants of
                     national standing that is not being compensated by Tenant
                     on a contingency fee basis; and

                (B)  During regular business hours at the office where Landlord
                     maintains its books and records.

          ii.   The Tenant Audit shall commence by no later than thirty (30)
                days after Landlord's receipt of the Audit Notice, and shall be
                completed within five (5) business days after such commencement.

          iii.  A copy of the results of the Tenant Audit shall be delivered to
                Landlord within thirty (30) days after the completion of the
                Tenant Audit.

     c.   Waiver. If Tenant fails to timely request the Tenant Audit as required
          by subparagraph (a) hereof, or the results of the Tenant Audit are not
          timely delivered to Landlord as required by subparagraph (b) hereof,
          or Tenant fails to follow any of the procedures set forth in
          subparagraph (b) hereof, then such Reconciliation Statement shall be
          deemed to have been approved and accepted by Tenant as correct.

     d.   Limitations on Tenant Audit.

          i.    The Tenant Audit shall be limited strictly to those items in the
                Reconciliation Statement that Tenant has specifically identified
                in writing as being allegedly incorrect.

          ii.   Tenant shall not be entitled to inspect any of Landlord's books
                and records that apply to any prior Reconciliation Statements or
                to any calendar year other than the year covered by the most
                recent Common Area Cost Reconciliation Statement delivered to
                Tenant unless Tenant was due a credit for an overpayment
                (pursuant to subparagraph (f) hereof) in a Tenant Audit of a
                Reconciliation Statement, and then solely:

                (A)  in connection with the same specific item that was the
                     subject of the previous Tenant Audit in which Tenant was
                     due a credit; and

                (B)  for the two (2) years immediately preceding the calendar
                     year for which Tenant was due a credit in such inspection,
                     but in no event shall Tenant be entitled to conduct an
                     inspection for a period earlier than three (3) years prior
                     to the year in which Landlord delivers the most recent
                     Reconciliation Statement.

          iii.  Tenant shall be entitled to no more than one (1) Tenant Audit
                per calendar year.

          iv.   no subtenant has any right to conduct a Tenant Audit and no
                assignee shall conduct a Tenant Audit for any period during
                which such assignee was not in possession of the Premises.

          v.    once having conducted a Tenant Audit with respect to a specific
                item of a Reconciliation Statement in any year, Tenant shall
                have no right to conduct another Tenant Audit of the same
                specific item for such year.

          vi.   if Tenant violates this Lease at any time during the Tenant
                Audit, the Tenant Audit shall immediately cease and the matters
                originally set forth in the Common Area Cost Reconciliation
                Statement shall be deemed to be correct.

     e.   Confidential Information. Tenant acknowledges and agrees that any
          records reviewed under this Clause constitute confidential information
          of Landlord, which shall not be disclosed to anyone other than:

          i.    the auditor performing the Tenant Audit;

          ii.   the principals of Tenant who receive the results of the Tenant
                Audit. Tenant further acknowledges and agrees that the
                disclosure of information to any other person, whether by Tenant
                or anyone acting on behalf of Tenant, shall constitute a
                material

                                  Page 4 of 6

<PAGE>

     breach of this Lease. Accordingly, Tenant and its auditor shall execute and
     deliver to Landlord a confidentiality agreement prepared by Landlord, in
     favor of Landlord, prior to any Tenant Audit.

          f.   Overpayment. In the event that the results of the Tenant Audit
               reveal that Tenant has overpaid its obligations and is due a
               credit for a preceding period, Landlord shall credit the amount
               due against Tenant's next installment(s) of its obligations of
               estimated Common Area Costs Payments. Tenant will not have the
               right to terminate the Lease on account of an overpayment.

          g.   Under-billing. In the event that, as a result of the Tenant
               Audit, it is ascertained that Tenant has been under-billed for a
               preceding period, Tenant shall pay the amount of such
               under-billing to Landlord with the next installment obligation of
               estimated Common Area Costs Payments.

          h.   Costs of Tenant Audit. Tenant shall pay Landlord, on demand and
               as Additional Rent, Landlord's invoice for:

               i.   the photocopying of documents;

               ii.  the retrieval of documents from Landlord's storage archives;

               iii. the time spent by Landlord's employees in supervising,
                    coordinating, and cooperating with the Tenant Audit;

               iii. any other expenses of Landlord incidental to the Tenant
                    Audit: and,

               iv.  in the event the Tenant Audit reflects that Tenant has been
                    overcharged by Landlord by an amount greater than five
                    percent (5%) of the total charge, Landlord shall reimburse
                    Tenant for the reasonable cost of the Tenant Audit.

                   [END OF DOCUMENT; SIGNATURE PAGE FOLLOWS.]

                                  Page 5 of 6

<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Addendum causing their
respective seals to be affixed hereto.

     EXECUTED by Tenant on ___________________, 2001, and by Landlord on October
                                                                         -------
4, 2001, to be effective upon full execution by Landlord and Tenant.
-

                                      LANDLORD:

                                      PARKER-RALEIGH DEVELOPMENT XXX, LLC
                                      By: Parker Lincoln Developers, Inc.,
                                              its Managing Agent

ATTEST:

/s/ Vickie B. Poor                    By:/s/ David L. Brady, CEO      (SEAL)
---------------------------              -----------------------------

Asst.  Secretary                               Vice President

(CORPORATE SEAL)

                                      TENANT:

                                      LIPOMED, INC.,
                                      a Delaware corporation

ATTEST:

/s/  James Otvos                      By: /s/ Richard A. Franco       (SEAL)
---------------------------              -----------------------------

James Otvos  Secretary                        Chairman

(CORPORATE SEAL)                      Name: Richard A. Franco
                                            --------------------------
                                                   Type or Print

                                  Page 6 of 6

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