Document:

<PAGE>
                                                                   EXHIBIT 10.44
                                                                   -------------

NEITHER THIS WARRANT NOR THE SHARES OF STOCK ISSUABLE UPON EXERCISE HEREOF HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. NO SALE, TRANSFER
OR OTHER DISPOSITION OF THIS WARRANT OR SAID SHARES MAY BE EFFECTED WITHOUT (I)
AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO, (II) AN OPINION OF COUNSEL
FOR THE HOLDER, REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH REGISTRATION
IS NOT REQUIRED OR (III) RECEIPT OF OTHER EVIDENCE REASONABLY SATISFACTORY TO
THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.

                             PARADIGM GENETICS INC.
                   WARRANT TO PURCHASE SHARES OF COMMON STOCK
                   ------------------------------------------

                     DATE OF INITIAL ISSUANCE JULY 20, 1999

     THIS CERTIFIES THAT, for value received, TBCC Funding Trust II is entitled
to subscribe for and purchase One Hundred Sixteen Thousand Two Hundred Seventy-
Nine (116,279) shares (as adjusted pursuant to the provisions hereof, the
"Shares") of the fully paid and nonassessable Common Stock, $.01 par value, of
Paradigm Genetics Inc., a North Carolina corporation (the "Company"), at a price
per share of Two and 15/100 Dollars ($2.15) (such price and such other price as
shall result, from time to time, from adjustments specified herein is herein
referred to as the "Warrant Price"), subject to the provisions and upon the
terms and conditions hereinafter set forth. As used herein, the term "Common
Stock" shall mean the Company's presently authorized Common Stock, and any stock
into or for which Common Stock may hereafter be converted or exchanged, in
either case pursuant to the Articles of Incorporation of the Company as from
time to time amended as provided by law and in such Articles; and the term,
"Grant Date" shall mean July 20, 1999. This Warrant is issued pursuant to the
Loan and Security Agreement between Paradigm Genetics Inc. and TBCC Funding
Trust II, dated July 20, 1999 (the "Loan Agreement").

1.  Term. The purchase right represented by this Warrant is exercisable, in
    ----
whole or in part, at any time and from time to time from and after the Grant
Date to the seventh annual anniversary date of the Grant Date.

2.  Method of Exercise; Net Issue Exercise.
    --------------------------------------

     2.1   Method of Exercise; Payment: Issuance of New Warrant. The purchase
           ----------------------------------------------------
right represented by this Warrant may be exercised by the holder hereof, in
whole or in part and from time to time, by either, at the election of the holder
hereof, (a) the surrender of this Warrant (with the notice of exercise form
attached hereto as Exhibit A duly executed) at the principal office of the
Company and by the payment to the Company, by check, of an amount equal to the
then applicable Warrant Price per share multiplied by the number of Shares then
being purchased or (b) if in connection with a registered public offering of the
Company's securities, the surrender
<PAGE>

of this Warrant (with the notice of exercise form attached hereto as Exhibit A-I
duly executed) at the principal office of the Company together with notice of
arrangements reasonably satisfactory to the Company for payment to the Company
either by check or from the proceeds of the sale of shares to be sold by the
holder in such public offering of an amount equal to the then applicable Warrant
Price per share multiplied by the number of Shares then being purchased. The
person or persons in whose name(s) any certificate(s) representing shares of
Common Stock shall be issuable upon exercise of this Warrant shall be deemed to
have become the holder(s) of record of, and shall be treated for all purposes as
the record holder(s) of, the shares represented thereby (and such shares shall
be deemed to have been issued) immediately prior to the close of business on the
date or dates upon which this Warrant is exercised. In the event of any exercise
of the rights represented by this Warrant, certificates for the shares of stock
so purchased shall be delivered to the holder hereof as soon as possible and in
any event within thirty (30) days of receipt of such notice and, unless this
Warrant has been fully exercised or expired, a new Warrant representing the
portion of the Shares, if any, with respect to which this Warrant shall not then
have been exercised shall also be issued to the holder hereof as soon as
possible and in any event within such thirty (30)-day period.

     2.2  Net Issue Exercise.

          (a)  In lieu of exercising this Warrant, the holder may elect to
receive shares equal to the value of this Warrant (or the portion thereof being
canceled) by surrender of this Warrant at the principal office of the Company
together with notice of such election in which event the Company shall issue to
the holder a number of shares of the Company's Common Stock computed using the
following formula:

                                    X=Y(A-B)
                                      ------
                                       A

Where:

     X = the number of shares of Common Stock to be issued to holder

     Y = the number of shares of Common Stock purchasable under this Warrant

     A = the fair market value of one share of the Company's Common Stock

     B = Warrant Price (as adjusted to the date of such calculations)

          (b) For purposes of this Section, fair market value of one share of
the Company's Common Stock shall mean the average of the closing bid and asked
prices of the Company's Common Stock quoted in the Over-The-Counter Market
Summary or the closing price quoted on the Nasdaq National Market or any
exchange on which the Common Stock is listed, whichever is applicable, as
published in the Eastern Edition of The Wall Street Journal for the ten trading
days prior to the date of determination of fair market value. If the Common
Stock is not traded Over-The-Counter or on such market or exchange, the fair
market value of the Company's Common Stock will be the price per share which the
Company could obtain from a

                                       2
<PAGE>

willing buyer for shares sold by the Company from authorized but unissued
shares, as determined by the Company's Board of Directors in good faith.

3.  Stock Fully Paid: Reservation of Shares. All Shares that may be issued upon
    ---------------------------------------
the exercise of the rights represented by this Warrant will, upon issuance, be
fully paid and nonassessable. During the period within which the rights
represented by the Warrant may be exercised, the Company will at all times have
authorized and reserved for the purpose of issuance upon exercise of the
purchase rights evidenced by this Warrant, a sufficient number of shares of its
Common Stock to provide for the exercise of the right represented by this
Warrant.

4.  Adjustment of Warrant Price and Number of Shares. The number and kind of
    ------------------------------------------------
securities purchasable upon the exercise of this Warrant and the Warrant Price
shall be subject to adjustment from time to time upon the occurrence of certain
events, as follows:

          (a) Reclassification or Merger. In case of any reclassification,
              --------------------------
change or conversion of securities of the class issuable upon exercise of this
Warrant (other than a change in par value, or from par value to no par value, or
from no par value to par value, or as a result of a subdivision or combination),
or in case of any merger of the Company with or into another corporation (other
than a merger with another corporation in which the Company is a continuing
corporation and which does not result in any reclassification or change of
outstanding securities issuable upon exercise of this Warrant), or in case of
any sale of all or substantially all of the assets of the Company, the Company,
or such successor or purchasing corporation, as the case may be, shall execute a
new Warrant (in form and substance reasonably satisfactory to the holder of this
Warrant) providing that the holder of this Warrant shall have the right to
exercise such new Warrant and upon such exercise to receive, in lieu of each
share of Common Stock theretofore issuable upon exercise of this Warrant, the
kind and amount of shares of stock, other securities, money and property
receivable upon such reclassification, change or merger by a holder of one share
of Common Stock. Such new Warrant shall provide for adjustments that shall be as
nearly equivalent as may be practicable to the adjustments provided for in this
Section 4. The provisions of this paragraph (a) shall similarly apply to
successive reclassifications, changes, mergers and transfers.

          (b) Subdivisions or Combination of Shares. If the Company at any time
              -------------------------------------
while this Warrant remains outstanding and unexpired shall subdivide or combine
its Common Stock, the Warrant Price and the number of Shares issuable upon
exercise hereof shall be proportionately adjusted.

          (c) Stock Dividends. If the Company at any time while this Warrant is
outstanding and unexpired shall pay a dividend payable in shares of Common Stock
or other securities exercisable for or convertible into shares of Common Stock
(except any distribution specifically provided for in the foregoing
subparagraphs (a) and (b)), then the Warrant Price shall be adjusted, from and
after the date of determination of shareholders entitled to receive such
dividend or distribution, to that price determined by multiplying the Warrant
Price in effect immediately prior to such date of determination by a fraction
(a) the numerator of which shall be the total number of shares of Common Stock
outstanding immediately prior to such dividend or distribution (assuming the
conversion, exchange or exercise of all securities of the Company

                                       3
<PAGE>

which are convertible, exchangeable or exercisable) ("Fully Diluted Common
Stock"), and (b) the denominator of which shall be the total number of shares of
Fully Diluted Common Stock outstanding immediately after such dividend or
distribution, and the number of Shares subject to this Warrant shall be
proportionately adjusted.

          (d) Dilutive Issuances. If and whenever the Company should issue
              ------------------
shares of its Common Stock or other securities exercisable for or convertible
into shares of Common Stock at a price per share less than the Warrant Price, as
adjusted for stock splits, combinations, dividends and recapitalizations
pursuant to this Section 4, in effect immediately prior to such issuance (other
than shares issued or issuable to the officers or directors of or consultants to
the Company issued pursuant to a stock option or purchase plan or similar
arrangement), then the Warrant Price shall be adjusted to an amount (calculated
to the nearest cent) determined by dividing (1) the sum of (A) the total number
of shares of Fully Diluted Common Stock outstanding immediately prior to such
issuance multiplied by the then effective Warrant Price and (B) the value of the
consideration received by the Company upon such issuance as determined by the
Board of Directors by (2) the total number of shares of Fully Diluted Common
Stock outstanding immediately after such issuance. The holder of the Warrant
shall thereafter be entitled to purchase, at the Warrant Price resulting from
such adjustment, the number of shares of Common Stock (calculated to the nearest
whole share) obtained by multiplying the Warrant Price in effect immediately
prior to such adjustment by the number of shares of Fully Diluted Common Stock
issuable upon the exercise hereof immediately prior to such adjustment and
dividing the product thereof by the Warrant Price resulting from such
adjustment. For the purposes of this paragraph (d), the consideration received
for securities convertible into or exercisable or exchangeable for the Common
Stock shall be deemed to include the minimum aggregate amount payable upon
conversion, exercise or exchange of such securities. In the event the right to
convert, exercise or exchange such securities expires unexercised, the Warrant
Price of shares issuable upon the exercise hereof shall be readjusted
accordingly.

          (e) No Impairment. The Company will not, by amendment of its Articles
              -------------
of Incorporation or through any reorganization, recapitalization, transfer of
assets, consolidation, merger, dissolution, issue or sale of securities or any
other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms to be observed or performed hereunder by the Company, but will
at all times in good faith assist in the carrying out of all the provisions of
this Section 4 and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the holder of this Warrant against
impairment.

          (f) Notices of Record Date. In the event of any taking by the Company
              ----------------------
of a record of its shareholders for the purpose of determining shareholders who
are entitled to receive payment of any dividend (other than a cash dividend) or
other distribution, any right to subscribe for, purchase or otherwise acquire
any share of any class or any other securities or property, or to receive any
other right, or for the purpose of determining shareholders who are entitled to
vote in connection with any proposed merger or consolidation of the Company with
or into any other corporation, or any proposed sale, lease or conveyance of all
or substantially all of the assets of the Company, or any proposed liquidation,
dissolution or winding up of the Company, the Company shall mail to the holder
of the Warrant, at least twenty (20) days prior to the date specified therein, a
notice specifying the date on which any such record is to be taken for the
purpose of such dividend, distribution or right, and the amount and character of
such dividend, distribution or right

                                       4
<PAGE>

     5.   Notice of Adjustments. Whenever the Warrant Price shall be adjusted
          ---------------------
pursuant to the provisions hereof, the Company shall within thirty (30) days
after such adjustment deliver a certificate signed by its chief financial
officer to the registered holder(s) hereof setting forth, in reasonable detail,
the event requiring the adjustment, the amount of the adjustment, the method by
which such adjustment was calculated, and the Warrant Price after giving effect
to such adjustment

     6.  Fractional Shares. No fractional shares of Common Stock will be issued
         -----------------
in connection with any exercise hereunder, but in lieu of such fractional shares
the Company shall make a cash payment therefor upon the basis of the Warrant
Price then in effect.

     7.   Compliance with Securities Act; Disposition of Warrant or Shares of
Stock.

          (a) Compliance with Securities Act. The holder of this Warrant, by
              ------------------------------
acceptance hereof, agrees that this Warrant, the shares of Common Stock to be
issued upon exercise hereof are being acquired for investment and that such
holder will not offer, sell or otherwise dispose of this Warrant, any shares of
Common Stock to be issued upon exercise hereof, except under circumstances which
will not result in a violation of the Securities Act of 1933, as amended (the
"Act"). This Warrant and all shares of Common Stock issued upon exercise of this
Warrant (unless registered under the Act) shall be stamped or imprinted with a
legend in substantially the following form:

          THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
          1933, AS AMENDED. NO SALE, TRANSFER OR OTHER DISPOSITION MAY BE
          EFFECTED WITHOUT (i) AN EFFECTIVE REGISTRATION STATEMENT RELATED
          THERETO, (ii) AN OPINION OF COUNSEL FOR THE HOLDER, REASONABLY
          SATISFACTORY TO THE COMPANY, THAT SUCH REGISTRATION IS NOT REQUIRED OR
          (iii) RECEIPT OF OTHER EVIDENCE REASONABLY SATISFACTORY TO THE COMPANY
          AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.

          (b) Disposition of Warrant and Shares. With respect to any offer, sale
              ---------------------------------
or other disposition of this Warrant, or any shares of Common Stock acquired
pursuant to the exercise of this Warrant prior to registration of such shares,
the holder hereof and each subsequent holder of the Warrant agrees to give
written notice to the Company prior thereto, describing briefly the manner
thereof, together with a written opinion of such holder's counsel, if reasonably
requested by the Company, to the effect that such offer, sale or other
disposition may be effected without registration or qualification (under the Act
as then in effect or any federal or state law then in effect) of this Warrant or
such shares of Common Stock and indicating whether or not under the Act
certificates for this Warrant or such shares of Common Stock to be sold or
otherwise

                                       5
<PAGE>

disposed of require any restrictive legend as to applicable restrictions on
transferability in order to insure compliance with the Act. Each certificate
representing this Warrant or the shares of Common Stock thus transferred (except
a transfer pursuant to Rule 144) shall bear a legend as to the applicable
restrictions on transferability in order to insure compliance with the Act,
unless in the aforesaid opinion of counsel for the holder, such legend is not
required in order to insure compliance with the Act. The Company may issue stop
transfer instructions to its transfer agent in connection with the foregoing
restrictions.

     8.   Rights as Shareholders: Information. No holder of this Warrant, as
          -----------------------------------
such, shall be entitled to vote or receive dividends or be deemed the holder of
Common Stock or any other securities of the Company which may at any time be
issuable on the exercise thereof for any purpose, nor shall anything contained
herein be construed to confer upon the holder of this Warrant, as such, any of
the rights of a shareholder of the Company or any right to vote for the election
of directors or upon any matter submitted to shareholders at any meeting
thereof, or to receive notice of meetings, or to receive dividends or
subscription rights or otherwise until this Warrant shall have been exercised
and the Shares purchasable upon the exercise hereof shall have become
deliverable, as provided herein.

     9.  Registration Rights. Upon exercise of this Warrant, the holder shall
         -------------------
have and be entitled to exercise, together with all other holders of
Registerable Securities possessing registration rights under that certain
Amended and Restated Registration Rights Agreement dated as of February 12, 1998
and amended and restated as of March 12, 1999 between the Company and the
parties who have executed the counterpart signature pages thereto or are
otherwise bound thereby (the "Registration Rights Agreement"), the rights of
registration granted under the Registration Rights Agreement to Registerable
Securities with respect to the Shares. By its receipt of this Warrant, holder
agrees to be bound by the Registration Rights Agreement.

     10.  Representations and Warranties. This Warrant is issued and delivered
          ------------------------------
on the basis of the following:

          (a) this Warrant has been duly authorized and executed by the Company
and when delivered will be the valid and binding obligation of the Company
enforceable in accordance with its terms; and

          (b) the Common Stock issuable upon the exercise of this Warrant have
been duly authorized and reserved for issuance by the Company and, when issued
in accordance with the terms hereof, will be validly issued, fully paid and
nonassessable.

     11.  Modification and Waiver. This Warrant and any provision hereof may be
          -----------------------
changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of the same is sought.

     12.  Notices. Any notice, request or other document required or permitted
          -------
to be given or delivered to the holder hereof or the Company shall be delivered,
or shall be sent by certified or registered mail, postage prepaid, to each such
holder at its address as shown on the books of the Company or to the Company at
the address indicated therefor on the signature page of this Warrant

                                       6
<PAGE>

     13.  Lost Warrants or Stock Certificates. The Company covenants to the
          -----------------------------------
holder hereof that upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction, or mutilation of this Warrant or any
stock certificate and, in the case of any such loss, theft or destruction, upon
receipt of an indemnity reasonably satisfactory to the Company, or in the case
of any such mutilation upon surrender and cancellation of such Warrant or stock
certificate, the Company will make and deliver a new Warrant or stock
certificate, of like tenor, in lieu of the lost, stolen, destroyed or mutilated
Warrant or stock certificate.

     14.  Governing Law. This Warrant shall be construed and enforced in
          -------------
accordance with, and the rights of the parties shall be governed by, the laws of
the State of North Carolina without reference to conflicts of laws principles.

                                       7
<PAGE>

                              [signature page to Warrant]

                              PARADIGM GENETICS INC.

                              By:       /s/ John Ryals
                                 --------------------------------
                              Name:
                              Title

                              Address:  104 Alexander Drive
                                        Building 2
                                        Research Triangle Park, NC 27709-4538

Date: July 20, 1999

                                       8
<PAGE>

                                   EXHIBIT A
                                   ---------

                               NOTICE OF EXERCISE

To:

     1.  The undersigned hereby elects to purchase ______ shares of Common Stock
of Paradigm Genetics Inc. pursuant to the terms of the attached Warrant, and
tenders herewith payment of the purchase price of such shares in full.

     2.  Please issue a certificate or certificates representing said shares in
the name of the undersigned or in such other name or names as are specified
below:

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

                                         --------------------------------------
                                         (Address)

     3.  The undersigned represents that the aforesaid shares are being acquired
for the account of the undersigned for investment and not with a view to, or for
resale in connection with, the distribution thereof and that the undersigned has
no present intention of distributing or reselling such shares.

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

-------------------
(Date)

                                       9
<PAGE>

                                  EXHIBIT A-1
                                  -----------

                               NOTICE OF EXERCISE

To:

     1.  Contingent upon and effective immediately prior to the closing (the
"Closing") of the Company's public offering contemplated by the Registration
Statement on Form S-_______, filed _______(month) ______, (day) ______ (year)
the undersigned hereby elects to purchase shares of Common Stock of the Company
(or such lesser number of shares as may be sold on behalf of the undersigned at
the Closing), pursuant to the terms of the attached Warrant.

     2.  Please deliver to the custodian for the selling shareholders a stock
certificate representing such ___ shares of Common Stock.

     3.  The undersigned has instructed the custodian for the selling
shareholders to deliver to the Company $________ or, if less, the net proceeds
due the undersigned from the sale of shares in the aforesaid public offering. If
such net proceeds are less than the purchase price for such shares, the
undersigned agrees to deliver the difference to the Company prior to the
Closing.

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

____________________
(Date)

                                       10<PAGE>
                                                                   Exhibit 10.45

                                ESCROW AGREEMENT

     This Escrow Agreement (this "Agreement"), is entered into and made and
effective as of January 19, 2000 (the "Effective Date"), between Paradigm
Genetics Inc., a North Carolina corporation ("Paradigm"), and ARE-104 Alexander
Road, LLC, a Delaware limited liability company ("ARE").

     WHEREAS, Paradigm and ARE have entered into a Lease Agreement dated as of
July 27, 1999 (the "Original Lease") regarding certain facilities to be
constructed on land leased by ARE from Triangle Service Center, Inc., a North
Carolina corporation ("Triangle");

     WHEREAS, Paradigm and ARE have agreed to enter into an Amended and Restated
Lease Agreement (Office/Laboratory), to be effective as of July 27, 1999,
amending the Original Lease to eliminate certain greenhouse provisions (such
agreement, the "Amended Lease");

     WHEREAS, in connection with the Amended Lease, Paradigm and ARE desire to
enter into a Lease Agreement (Greenhouse) regarding certain greenhouse
facilities (the "Greenhouse Lease");

     WHEREAS, in connection with the Amended Lease and the Greenhouse Lease,
Paradigm and ARE desire that ARE and Triangle enter into a certain Agreement
Regarding Allocation of Development Rights (the "Rights Agreement"); and

     WHEREAS, as consideration for the foregoing, Paradigm has agreed to issue
and place in escrow a Warrant for the Purchase of Shares of Common Stock
entitling ARE to purchase 60,000 shares of common stock of Paradigm at an
exercise price of $5.00 per share pursuant to the terms thereof (the "Warrant")
to be held in, and released from, escrow as provided in this Agreement;

     NOW, THEREFORE, in consideration of the foregoing, and for other good and
valuable consideration, the receipt and sufficiency of which the parties hereby
acknowledge, Paradigm and ARE agree as follows:

1.  Attached to this Agreement as Exhibit A is a copy of the Warrant. As of the
Effective Date, Paradigm shall issue and hold in escrow the Warrant pursuant to
the terms and conditions of this Agreement.

2.  If, on or before July 19, 2000, subject to extension by the mutual written
agreement of Paradigm and ARE (the "Release Date"), the definitive Amended Lease
and a related Memorandum of Lease, Greenhouse Lease and a related Memorandum of
Lease, and Rights Agreement and a related Memorandum of Rights Agreement
(collectively, the "New Agreements") are each duly executed and delivered by the
parties thereto, and such Memoranda are duly recorded in the appropriate real
property records (collectively, the execution and delivery by the parties of all
of the New Agreements and the recordation of such related Memoranda, the
"Triggering Event"), then, as of the date of the last to occur of such
Triggering Event, the Warrant shall be released from escrow and Paradigm shall
promptly deliver the Warrant to ARE.
<PAGE>

3.  If the New Agreements are not duly executed, delivered, and (where
applicable) recorded on or before the Release Date, then, as of the Release
Date, the Warrant shall be retained and cancelled by Paradigm and Paradigm shall
have no further obligation to hold in escrow or to deliver the Warrant to ARE.

4.  Prior to the occurrence of the Triggering Event, ARE shall not be entitled
to any rights as a holder of, or under the terms of, such Warrant. Upon
occurrence of such Triggering Event (whether or not such Warrant shall have been
delivered by Paradigm to ARE), ARE shall become the record holder of the Warrant
and shall be entitled to all rights as a holder of, or under the terms of, such
Warrant.

5.  This Agreement constitutes the full understanding of the parties with
respect to the issuance, escrow, release from escrow, and delivery or
cancellation of the Warrant, and supersedes any prior agreements or
communications of the parties, oral or written relating to the same. This
Agreement may be executed in any number of counterparts, each of which shall be
deemed to an original, and all of which taken together shall constitute one and
the same instrument. This Agreement may be executed and delivered by fax and
execution by such manner shall be deemed an original. This Agreement shall not
be assigned by ARE, and any attempted assignment shall be void; provided,
however, that ARE may assign this Agreement to an affiliate of ARE. This
Agreement shall be governed by and construed in accordance with North Carolina
law, without regard to conflict of law provisions.

                                       2
<PAGE>

     IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the
date first written above.

                              PARADIGM GENETICS INC.

                              By: /s/ Ian Howes
                                 ---------------------------
                              Name:     Ian Howes
                              Title     CFO

                              ARE-104 ALEXANDER ROAD, LLC,
                              a Delaware limited liability company

                              By: Alexandria Real Estate Equities, L.P.,
                                  a Delaware limited partnership
                                  Its Managing Member

                                  By:  ARE QRS Corp.,
                                     A Maryland corporation
                                     Its General Partner

                                     By:
                                        ---------------------------

Dated January 19, 2000

                                       3
<PAGE>

          IN WITNESS WHEREOF, the parties have duly executed this Agreement as
of the date first written above.

                              PARADIGM GENETICS INC.

                              By:
                                 ---------------------------
                              Name:
                              Title

                              ARE-104 ALEXANDER ROAD, LLC,
                              a Delaware limited liability company

                              By: Alexandria Real Estate Equities, L.P.,
                                  a Delaware limited partnership
                                  Its Managing Member

                                  By:  ARE QRS Corp.,
                                     A Maryland corporation
                                     Its General Partner

                                     By: /s/ Lynn Anne Shapiro
                                        ---------------------------

Dated January 19, 2000

                                       4
<PAGE>

                                   EXHIBIT A
                             (See Warrant Attached)

                                       5
<PAGE>

THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY
STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT
IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN EXEMPTION TO SUCH
ACT.

    Void After January 19, 2010 (the Tenth Anniversary of the Date Hereof)

                                WARRANT FOR THE
                      PURCHASE OP SHARES OF COMMON STOCK

                                      OF

                            PARADIGM GENETICS INC.

          INCORPORATED UNDER THE LAWS OF THE STATE OF NORTH CAROLINA
          ----------------------------------------------------------

     THIS CERTIFIES THAT, for value received, ARE-104 Alexander Road, LLC, a
Delaware limited liability company, together with its successors and assigns
(the "Investor"), is initially entitled to purchase up to Sixty Thousand
(60,000) duly authorized, validly issued, fully paid and nonassessable shares of
Common Stock (the "Common Stock") of Paradigm Genetics Inc., a North Carolina
corporation (the "Company"), at the per share purchase price described in
Section 1.3 below, subject to the provisions and upon the terms and conditions
hereinafter set forth.

     1.  Exercise of Warrant. The terms and conditions upon which this Warrant
         -------------------
may be exercised, and the Common Stock covered hereby (the "Warrant Stock") may
be purchased, are as follows:

         1.1  Term. The purchase right represented by this Warrant may be
              ----
exercised in whole or in part at any time and from time to time from and after
the date hereof and on or before the earlier of (i) January 19, 2010 (the tenth
anniversary of the date hereof) or (ii) the fifth anniversary of the date of the
consummation of a bona fide, underwritten initial public offering of Common
Stock, at a public offering price equal to or exceeding $10.00 per share (as
adjusted for any stock dividends, combinations, splits or the like with respect
to such shares) and an aggregate offering price to the public of not less than
$20,000,000; provided that, if the last day on which this Warrant may be
exercised is a Sunday or a legal holiday or a day on which banking institutions
doing business in the State of North Carolina are authorized by law to close,
this Warrant may be exercised prior to 5:00 p.m. local time) on the next
succeeding full business day with the same force and effect as if exercised on
such last day specified herein.

         1.2  Number of Shares. This Warrant is initially exercisable for Sixty
              ----------------
Thousand (60,000) shares of Common Stock, subject to adjustment pursuant to
Section 2 of this Warrant.
<PAGE>

         1.3  Purchase Price. The initial per share purchase price for the
              --------------
shares of Common Stock to be issued upon exercise of this Warrant shall be
$5.00, subject to adjustment as provided herein (the "Warrant Price").

         1.4  Method of Exercise. The exercise of the purchase rights evidenced
              ------------------
by this Warrant shall be effected by (a) the surrender of the Warrant, together
with a duly executed copy of the form of a subscription attached hereto, to the
Company at its principal offices and (b) the delivery of the purchase price
(i) by check or bank draft payable to the Company's order or by wire transfer to
the Company's account for the number of shares for which the purchase rights
hereunder are being exercised or (ii) pursuant to the procedure set forth in
Section 1.5. Any such exercise of this Warrant may be made contingent upon the
closing of a public offering, merger, recapitalization or similar transaction.

         Each exercise of this Warrant shall be deemed to have been effected
immediately prior to the close of business on the day on which this Warrant
shall have been surrendered to the Company as provided herein or at such latter
date as may be specified in the executed form of subscription, and at such time
the person or persons in whose name or names any certificate or certificates for
shares of Common Stock shall be issuable upon such exercise as provided herein
shall be deemed to have become the holder or holders of record thereof.

         1.5  Cashless Exercise.  In addition to and without limiting the rights
              -----------------
of the holder hereof under the terms hereof, at the holders option this Warrant
may be exercised in whole or in part at any time or from time to time prior to
its expiration for a number of shares of Common Stock having an aggregate fair
market value on the date of such exercise equal to the difference between
(a) the fair market value of the number of shares of Common Stock subject to
this Warrant designated for exercise by the holder hereof on the date of the
exercise and (b) the aggregate Warrant Price for such shares in effect at such
time.

         The "fair market value" of shares of Common Stock shall be calculated
on the basis of (a) if the Common Stock is then traded on a securities exchange
or the Nasdaq National Market, the average of the closing prices of the Common
Stock on such exchange or marker over the 20 trading day period ending three (3)
trading days prior to the date of exercise, (b) if the Common Stock is then
regularly traded over-the-counter, the average of the sale prices or secondarily
the closing bid of the Common Stock over the 20 trading day period ending three
(3) trading days prior to the date of exercise, or (c) if there is no active
public market for the Common Stock, the fair market value thereof shall be the
price per share that the Company could obtain from a willing buyer for shares
sold by the Company from authorized but unissued shares, as determined in good
faith by the Company's Board of Directors. If the holder of this Warrant
exercises this Warrant contingent upon the closing of a public offering, the
"fair marker value" of a share of Common Stock on the date of exercise shall be
equal to the initial price to the public specified in the final prospectus with
respect to such public offering.

         No payment of any cash or other consideration to the Company shall be
required from the holder of this Warrant in connection with any exercise of this
Warrant pursuant to this Section 1.5. Such exercise shall be effective upon the
date of receipt by the Company of the

                                       2
<PAGE>

original Warrant surrendered for cancellation and a written request from the
holder hereof that the exercise pursuant to this Section 1.5 be made, or at such
later date as may be specified in such request.

         1.6  Issuance of Shares. As soon as reasonably practicable after each
              ------------------
exercise of this Warrant, in whole or in part, the Company at its expense
(including the payment by it of any applicable issue taxes) will cause to be
issued in the name of and delivered to the holder hereof or as such holder (upon
payment by such holder of any applicable transfer taxes) may direct, (a) a
certificate or certificates for the number of duly authorized, validly issued,
fully paid and nonassessable shares of Common Stock to which such holder shall
be entitled upon such exercise, and (b) in case such exercise is in part only, a
new Warrant or Warrants of like tenor, calling in the aggregate on the face or
faces thereof for the number of shares of Common Stock equal (without giving
effect to any adjustment thereof) to the number of such shares called for on the
face of this Warrant minus the Dumber of such shares designated by the holder
upon such exercise as provided herein.

     2.  Certain Adjustments.
         -------------------

         2.1  Mergers, Consolidations or Sale of Assets. If after the date
              -----------------------------------------
hereof there shall be a capital reorganization (other than a combination or
subdivision of Common Stock otherwise provided for herein), or spin-off, or a
merger or consolidation of the Company with or into another corporation, or the
sale of all or substantially all of the Company's properties and assets to any
other person, then, as a part of such transaction, lawful provision shall be
made so that the Investor shall thereafter be entitled to receive upon exercise
of this Warrant, during the period specified in this Warrant and upon payment of
the purchase price, the number of shares of stock or other securities, cash or
property of the Company or the successor corporation resulting from such
transaction, to which a holder of the Common Stock deliverable upon exercise of
this Warrant would have been entitled under the provisions of the agreement in
such transaction if this Warrant had been exercised immediately before such
transaction. In any such case, appropriate adjustment (as determined reasonably
and in good faith by the Company's Board of Directors) shall be made in the
application of the provisions of this Warrant with respect to the rights and
interests of the Investor after such transaction to the end that the provisions
of this Warrant (including adjustment of the purchase price then in effect and
the number of shares of Common Stock issuable upon exercise hereof) shall be
applicable after that event, as near as reasonably may be, in relation to any
shares or other property deliverable after that event upon exercise of this
Warrant.

         2.2  Splits and Subdivisions Dividends. If the Company should effect or
              ---------------------------------
fix a record date for the effectuation of a split or subdivision of the
outstanding shares of Common Stock or the determination of the holders of Common
Stock entitled to receive a dividend or other distribution payable in additional
shares of Common Stock or other securities or warrants, options or other rights
convertible into, or entitling the holder thereof to receive directly or
indirectly, additional shares of Common Stock (hereinafter referred to as
"Common Stock Equivalents") without payment of any consideration by such holder
for the additional shares of Common Stock or Common Stock Equivalents (including
the additional shares of Common Stock issuable upon conversion or exercise
thereof), then, as of such record date (or the date of

                                       3
<PAGE>

such distribution, split or subdivision if no record date is fixed), the per
share purchase price shall be appropriately decreased and the number of shares
of Common Stock issuable upon exercise hereof shall be appropriately increased
in proportion to such increase of outstanding shares.

         2.3  Combination of Shares. If the number of shares of Common Stock
              ---------------------
outstanding at any time after the date hereof is decreased by a combination of
the outstanding shares of Common Stock, the per share purchase price shall be
appropriately increased and the number of shares of Common Stock issuable upon
exercise hereof shall be appropriately decreased in proportion to such decrease
in outstanding shares.

         2.4  Adjustments for Other Distributions. In the event the Company
              -----------------------------------
shall declare a distribution payable in securities of the Company (other than
Common Stock Equivalents) or other persons, evidences of indebtedness issued by
the Company or other persons, assets (including cash dividends) or options or
rights not referred to in Section 2.2, then, in each such case for purposes of
this Section 2.4, upon exercise of this Warrant the holder hereof shall be
entitled to a proportionate share of any such distribution as though such holder
was the holder of the number of shares of Common Stock of the Company into which
this Warrant may be exercised as of the record date fixed for the determination
of the holders of Common Stock of the Company entitled to receive such
distribution.

         2.5  Issuance of Additional Common Stock
              -----------------------------------

              (a) If, after the date hereof, the Company shall issue or sell

                  (i) Additional Shares (defined below) without consideration or
                  for a consideration per share less than the Warrant Price, or

                  (ii) Common Stock Equivalents exercisable for Additional
                  Shares with a minimum exercise or exchange price less than the
                  Warrant Price,

then, and in each such case, the Warrant Price shall be reduced, concurrently
with such issue or sale, to a price (calculated to the nearest .001 of a cent)
determined by multiplying such Warrant Price by a fraction:

                  (i) the numerator of which shall be (A) the number of shares
                  of Common Stock outstanding immediately prior to such issue or
                  sale plus (B) the number of shares of Common Stock that the
                  aggregate consideration received by the Company upon such
                  issuance or sale (or, in the case of Common Stock Equivalents
                  exercisable for Additional Shares, receivable by the Company
                  upon exercise or exchange) would purchase at such Warrant
                  Price, and

                                       4
<PAGE>

                  (ii) the denominator of which shall be the number of shares of
                  Common Stock outstanding immediately after such issue or sale
                  (or, in the case of Common Stock Equivalents exercisable for
                  Additional Shares, assuming exercise or exchange thereof).

              (b) For the purposes of this Section 2.5, the consideration for
the issue or sale of Additional Shares shall, irrespective of the accounting
treatment of such consideration, (i) insofar as it consists of cash, be computed
at the net amount of cash received by the Company, and (ii) insofar as it
consists of property (including securities) other than cash, be computed at the
fair value thereof at the time of such issue or sale as determined in good faith
by the Board of Directors.

              (c) Notwithstanding anything contained herein to the contrary, the
consideration for any Common Stock Equivalents shall be the total amount of
consideration received by the Company for the issuance of such Common Stock
Equivalents plus the minimum amount of consideration payable to the Company upon
exercise, conversion or exchange of Common Stock Equivalents (the "Net
Consideration") determined as of the date of issuance of such Common Stock
Equivalents. Any obligation, agreement or understanding to issue Common Stock
Equivalents at any time in the future shall be deemed to be an issuance at the
time such obligation or agreement is made or arises. No adjustment of the
Warrant Price shall be made under this Section 2.5 upon the issuance of any
shares of Common Stock which are issued pursuant to the exercise, conversion or
exchange of any Common Stock Equivalents if any adjustment shall previously have
been made upon the issuance of any such Common Stock Equivalents.

              Should the Net Consideration for any such Common Stock Equivalents
be increased or decreased from time to time, then, upon the effectiveness of
such change, the Warrant Price will be that which would have been obtained
(i) had the adjustments made upon the issuance of such Common Stock Equivalents
been made upon the basis of the actual Net Consideration (as so increased or
decreased) of such Common Stock Equivalents, and (ii) had adjustments to such
Warrant Price since the date of issuance of such Common Stock Equivalents been
made to such Warrant Price as adjusted pursuant to (i) above. Any adjustment of
the Warrant Price with respect to this paragraph which relates to Common Stock
Equivalents shall be disregarded if, as, and when all of such Common Stock
Equivalents expire or are canceled without being exercised, so that the Warrant
Price effective immediately upon cancellation or expiration shall be equal to
the Warrant Price in effect at the time of the issuance of the expired or
canceled Common Stock Equivalents, with such additional adjustments as would
have been made to such Warrant Price had the expired or canceled Common Stock
Equivalents not been issued.

              (d) "Additional Shares" means all shares of Common Stock, whether
or not subsequently reacquired or retired by the Company other than shares of
Common Stock issued or to be issued to directors, officers, employees and
consultants of the Company or any subsidiary pursuant to any bona fide qualified
or non-qualified stock option plan or agreement, stock purchase plan or
agreement, stock restriction agreement, employee stock ownership plan (ESOP) or
other stock incentive plans or arrangements.

                                       5
<PAGE>

              (e) The number of shares of Common Stock that the holder of this
Warrant shall be entitled to receive upon each exercise hereof after any
adjustment pursuant to this Section 2.5 shall be determined by multiplying
(i) the number of shares of Common Stock that were issuable immediately prior to
such adjustment, by (ii) the fraction of which (A) the numerator is the Warrant
Price immediately prior to such adjustment and (B) the denominator is the
Warrant Price immediately following such adjustment.

         2.6  Certificate as to Adjustments. In the case of each adjustment or
              -----------------------------
readjustment of the Warrant Price pursuant to this Section 2, the Company at its
expense will promptly Compute such adjustment or readjustment in accordance with
the terms hereof and cause a certificate, signed by the Company's Chief
Financial Officer, setting forth such adjustment or readjustment and showing in
detail the facts upon which such adjustment or readjustment is based to be
delivered to the holder of this Warrant. The Company will furnish or cause to be
furnished to such holder a certificate setting forth (a) such adjustments and
readjustments, (b) the Warrant Price at the time in effect and how it was
calculated and (c) the number of shares of Common Stock issuable upon exercise
hereof and the amount, if any, of other property at the time receivable upon the
exercise of the Warrant.

         2.7  Other Dilutive Events. If any event shall occur as to which the
              ---------------------
provisions of Section 2 are not strictly applicable but the failure to make any
adjustment would not fairly protect the purchase rights represented by this
Warrant in accordance with the essential intent and principles of such sections,
then, in each such case, the Board of Directors of the Company shall make such
adjustment, if any, on a basis consistent with the essential intent and
principles established in Section 2, necessary to preserve, without dilution,
the purchase rights represented by this Warrant. The Company will promptly
notify the Investor of any such adjustments and shall make the suggested
adjustments.

         2.8  No Dilution or Impairment. The Company will not, by amendment of
              -------------------------
its certificate of incorporation or through any consolidation, merger,
reorganization, transfer of assets, dissolution, issue or sale of securities or
any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms of this Warrant, but will at all times in good faith assist
in the carrying out of all such terms and in the taking of all such action as
may be necessary or appropriate in order to protect the rights of the holder of
this Warrant against dilution or other impairment.

         Without limiting the generality of the foregoing, the Company (a) will
not permit the par value of any shares of stock receivable upon the exercise of
this Warrant to exceed the amount payable therefor upon such exercise, (b) will
take all such action as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable shares of
stock on the exercise of the Warrants from time to time outstanding; and
(c) will not take any action which results in any adjustments of the Warrant
Price if the total number of shares of Common Stock issuable after the action
upon the exercise of all of the Warrants would exceed the total number of shares
of Common Stock then authorized by the Company's certificate of incorporation
and available for the purpose of issue upon such exercise.

                                       6
<PAGE>

         2.9  Notices of Record Date etc. In the event of:
              ---------------------------

              (a) any taking by the Company of a record of the holders of any
class of securities of the Company for the purpose of determining the holders
thereof who are entitled to receive any dividend (other than a cash dividend
payable out of earned surplus at the same rate as that of the last such cash
dividend thereto paid) or other distribution, or any right to subscribe for,
purchase or otherwise acquire any shares of stock of any class or any other
securities or property, or to receive any other right;

              (b) any capital reorganization of the Company, any
reclassification or recapitalization of the capital stock of the Company or any
transfer of all or substantially all of the assets of the Company to any other
person or any consolidation or merger involving the Company; or

              (c) any voluntary or involuntary dissolution, liquidation or
winding-up of the Company,

the Company will mail to the holder of this Warrant at least thirty (30) days
prior to the earliest date specified below, a notice specifying: (i) the date on
which any such record is to be taken for the purpose of such dividend,
distribution or right, and the amount and character of such dividend,
distribution or right; and (ii) the date on which any such reorganization,
reclassification, transfer, consolidation, merger, dissolution, liquidation or
winding-up is expected to become effective and the record date for determining
stockholders entitled to vote thereon and the time, if any such time is to be
fixed, as of which the holders of record of Common Stock shall be entitled to
exchange their shares of Common Stock for the securities or other property
deliverable upon such reorganization, reclassification, recapitalization,
consolidation, merger, transfer, dissolution, liquidation or winding-up.

     3.  Fractional Shares. No fractional shares shall be issued in connection
         -----------------
with any exercise of this Warrant. In lieu of the issuance of such fractional
share, the Company shall make a cash payment equal to the then fair market value
of such fractional share as determined in accordance with Section 1.5 hereof.

     4.  Representations and Warranties of the Company.
         ---------------------------------------------

         4.1  Authorization. The Company has full power arid authority to enter
              -------------
into this Warrant. This Warrant has been duly authorized, executed and delivered
by the Company and constitutes its valid and legally binding obligation,
enforceable in accordance with its terms.

         4.2  Reservation of Common Stock. The Company shall at all times
              ---------------------------
reserve and keep available out of its authorized but unissued shares of Common
Stock, solely for the purpose of effecting the exercise of this Warrant, such
number of its shares of Common Stock, free from preemptive rights, as shall from
time to time be sufficient to effect the exercise of this Warrant, and if at any
time the number of authorized but unissued shares of Common Stock shall not be
sufficient to effect the exercise of the entire Warrant, in addition to such
other remedies as shall be available to the holder of this Warrant, the Company
will take such action as may be

                                       7
<PAGE>

necessary to increase its authorized but unissued shares of Common Stock to such
number of shares as shall be sufficient for such purposes. If any shares of its
Common Stock to be reserved for the purpose of issuance upon exercise of the
Warrants require registration with or approval of any governmental authority
under any applicable law (other than registration of the Common Stock under the
Act) before such shares of Common Stock may be validly issued or delivered, then
it shall secure such registration or approval, as the case may be, and maintain
such registration or approval in effect so long as so required.

         4.3  Adjustment in Number of Shares Issuable and Purchase Price.
              ----------------------------------------------------------
There has not been nor will there be any adjustment to the number of shares
issuable or the purchase price payable upon the exercise of any securities of
the Company convertible into or exchangeable for shares of Common Stock
resulting from the issuance or exercise of this Warrant.

         4.4  Valid Issuance. This Warrant, when issued and delivered in
              --------------
accordance with the terms hereof will be duly authorized and validly issued, and
the Common Stock issuable upon the exercise hereof, when issued pursuant to the
terms hereof and upon payment of the exercise price shall, upon such issuance,
be duly authorized, validly issued, fully paid and nonassessable.

     5.  Privilege of Stock Ownership. Prior to the exercise of this Warrant,
         ----------------------------
the Investor shall not be entitled, by virtue of holding this Warrant, to any
rights of a stockholder of the Company, including (without limitation) the right
to vote, receive dividends or other distributions, exercise preemptive rights or
be notified of stockholder meetings, and such holder shall not be entitled to
any notice or other communication concerning the business or affairs of the
Company. Nothing in this Section 5, however, shall limit the right of the
Investor to be provided the notices described in Section 2 hereof or to
participate in distributions described in Section 2 hereof if the Investor
ultimately exercises this Warrant.

     6.  Limitation of Liability. Except as otherwise provided herein, in the
         -----------------------
absence of affirmative action by the holder hereof to purchase the Common Stock
in accordance herewith, no mere enumeration herein of the rights or privileges
of the holder hereof shall give rise to an obligation on such holder to purchase
any securities or any liability of such holder for the purchase price or as a
stockholder of the Company, whether such obligation or liability is asserted by
the Company or by creditors of the Company.

     7.  Representations and Warranties of the Investor. The Investor represents
         ----------------------------------------------
and warrants to the Company as follows;

         7.1  Investment Experience. The Investor represents that it can bear
              ---------------------
the economic risk of its investment and has such knowledge and experience in
financial or business matters that it is capable of evaluating the merits and
risks of the investment in the Warrant and the Common Stock issuable upon
exercise hereof. The Investor also represents it has not been organized solely
for the purpose of acquiring the Warrant or the Common Stack issuable upon
exercise hereof.

                                       8
<PAGE>

         7.2  Restricted Securities. The Investor understands that the Warrant
              ---------------------
being issued hereunder and the Common Stock issuable upon exercise hereof are
characterized as "restricted securities" under the federal securities laws
inasmuch as they are being acquired from the Company in a transaction not
involving a public offering and have not been registered under the Act nor
qualified under applicable state securities laws and that under such laws and
applicable regulations such securities may not be resold without registration
under the Act, except in certain limited circumstances. In this connection, the
Investor represents that it is familiar with Rule 144 promulgated under the Act
("Rule 144"), as presently in effect, and understands the resale limitations
imposed thereby and by the Act.

         7.3  Accredited Investor. The Investor is an "accredited investor"
              -------------------
within the meaning of Rule 501 of Regulation D promulgated under the Act.

         7.4  Legends. It is understood that the certificates evidencing the
              -------
Common Stock issuable upon exercise hereof may bear the following legend:

         "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES
         LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
         HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A
         REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE
         SECURITIES UNDER SUCH ACT OR AN EXEMPTION TO SUCH ACT"

     8.  Transfers and Exchanges.
         -----------------------

         8.1  The Investor agrees not to sell, hypothecate, pledge or otherwise
dispose of any interest in the Warrant or the Common Stock issuable upon
exercise hereof in the United States, its territories, possessions or any area
subject to its jurisdiction, or to any person who is a national thereof or
resident therein (including any estate of such person), or any corporation,
partnership or other entity created or organized therein, other than in
accordance with the Act. With respect to any offer, sale or other disposition of
this Warrant, or any shares of Common Stock acquired pursuant to the exercise of
this Warrant prior to registration of such shares, the holder hereof and each
subsequent holder of the Warrant agrees to give written notice to the Company
prior thereto, describing briefly the manner thereof, together with a written
opinion of such holder's counsel, if reasonably requested by the Company, to the
effect that such offer, sale or other disposition may be effected without
registration or qualification (under the Act as then in effect or any federal or
state law then in effect) of this Warrant or such shares of Common Stock and
indicating whether or nor under the Act certificates for this Warrant or such
shares of Common Stock to be sold or otherwise disposed of require any
restrictive legend as to applicable restrictions on transferability in order to
insure compliance with the Act; provided, however, that the holder may transfer
or assign this Warrant, or any shares of Common Stock acquired pursuant to the
exercise of this Warrant prior to registration of such shares to Alexandria Real
Estate Equities, Inc., a Maryland corporation ("Alexandria") or to another
wholly-owned subsidiary of Alexandria without written notice to the Company or
an opinion of holder's

                                       9
<PAGE>

counsel. Each certificate representing this Warrant or the shares of Common
Stock thus transferred (except a transfer pursuant to Rule 144) shall bear a
legend as to the applicable restrictions on transferability in order to insure
compliance with the Act, unless in the aforesaid opinion of counsel for the
holder, such legend is not required in order to insure compliance with the Act.
The Company may issue stop transfer instructions to its transfer agent in
connection with the foregoing restrictions.

         8.2  Upon presentation to the Company of the form of Assignment
attached hereto, a new Warrant shall be issued to the new holder hereof. New
Warrants issued in connection with transfers or exchanges shall not require the
signature of the new holder hereof and shall be identical in form and provision
to this Warrant except as to the number of shares.

         8.3  Each certificate evidencing the shares of Common Stock issued upon
exercise of this Warrant, or upon any transfer of such shares (other than a
transfer registered under the Act or any subsequent transfer of shares so
registered) shall, at the option of the Company, contain a legend, in form and
substance reasonably satisfactory to the Company and its counsel, restricting
the transfer of such shares to sales or other dispositions exempt from the
requirements of the Act.

         8.4  Ownership of Warrants. The Company may treat the person in whose
              ---------------------
name any Warrant is registered on the register kept at the office of the Company
as the owner and holder thereof for all purposes, notwithstanding any notice to
the contrary, except that, if and when any Warrant is properly assigned in
blank, the Company may (but shall not be obligated to) treat the bearer thereof
as the owner of such Warrant for all purposes, notwithstanding any notice to the
contrary. A Warrant, if properly assigned, may be exercised by a new holder
without a new Warrant first having been issued.

         8.5  Transfer and Exchange of Warrants. Upon the surrender of any
              ---------------------
Warrant, properly endorsed, for registration of transfer or for exchange, the
Company at its expense will execute and deliver to or upon the order of the
holder thereof a new Warrant or Warrants of like tenor, in the name of such
holder or as such holder (upon payment by such holder of any applicable transfer
taxes) may direct, calling in the aggregate on the face or faces thereof for the
number of shares of Common Stock called for on the face or faces of the Warrant
or Warrants so surrendered.

     9.  Successors and Assigns. The terms and provisions of this Warrant shall
         ----------------------
be binding upon the Company and the Investor and their respective successors and
assigns, subject at all times to the restrictions set forth herein.

     10.  Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the
          -------------------------------------------------
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to the Company,
and upon reimbursement to the Company of all reasonable expenses incidental
thereto, and upon surrender and cancellation of this Warrant, if mutilated, the
Company will make and deliver a new warrant of like tenor and dated as of such
cancellation, in lieu of this Warrant.

                                       10
<PAGE>

     11.  Saturdays, Sundays, Holidays, etc. If the last or appointed day for
          ----------------------------------
the taking of any action or the expiration of any right required or granted
herein shall be a Saturday or Sunday or shall be a legal holiday, then such
action may be taken or such right may be exercised on the next succeeding day
not a legal holiday.

     12.  Amendments and Waivers. Any term of this Warrant may be amended and
          ----------------------
the observance of any term of this Warrant may be waived (either generally or in
a particular instance and either retroactively or prospectively), only with the
written consent of the Company and the Investor. Any such amendment or waiver
shall be binding on the parties.

     13.  Governing Law. The terms and conditions of this Warrant shall be
          -------------
governed by and construed in accordance with North Carolina law, without regard
to conflict of law provisions.

     14.  Notices. Except as otherwise provided in this Warrant, any requirement
          -------
for a notice, demand or request under this Warrant will be satisfied by a
writing (a) hand delivered with receipt; (b) mailed by United States registered
or certified mail or Express Mail, return receipt requested, postage prepaid; or
(c) sent by Federal Express or any other nationally recognized overnight courier
service, and addressed as follows: if to the holder, at its address as shown on
the books of the Company; and if to the Company, at the address indicated on the
signature page of this Warrant, Attn: Chief Financial Officer, with a copy to
Gerald F. Roach, Esq., Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan,
L.L.P., 2500 First Union Capital Center, Raleigh, North Carolina 27601. All
notices that are sent in accordance with this Section 14 will be deemed received
by the holder or the Company on the earliest of the following applicable time
periods: (i) the date the return receipt is executed; or (ii) the date delivered
as documented by the overnight courier service or the hand delivery receipt.
Either the holder or the Company may designate a change of address by written
notice to the other party.

     15.  Registration Rights.
          -------------------

          (a) The shares of Common Stock issued or issuable upon the exercise
hereof shall constitute "Registrable Securities" for purposes of this Warrant;
provided, that Registrable Securities shall not include any shares of Common
Stock that have been sold to the public either pursuant to a registration
statement or the exemption from registration under the Securities Act provided
by Rule 144.

          (b) if at any time the Company proposes to file a registration
statement under the Act with respect to an offering of equity securities by the
Company for its own account or for the account of any securityholders of any
class of its equity securities (other than (i) a registration statement on Form
S-4 or S-8 (or any substitute form that may be adopted by the Securities and
Exchange Commission (the "Commission") or (ii) a registration statement filed in
connection with an exchange offer or offering of securities solely to the
Company's existing securityholders) or a registration on any registration form
that does not permit secondary sales, then the Company shall give written notice
of such proposed filing to the Investor as soon as practicable (but in no event
less than 20 days before the anticipated filing date), and such notice

                                       11
<PAGE>

shall offer such Investor the opportunity to register such number of shares of
Registrable Securities as each such Investor may request in writing within 15
days after such notice from the Company (which request shall specify the
Registrable Securities intended to be disposed of and the intended method of
distribution thereof) (a "Piggy-Back Registration").

     The Company shall use its best efforts to cause the managing Underwriter or
Underwriters of a proposed underwritten public offering to permit the
Registrable Securities requested by the Investor thereof to be included in a
Piggy-Back Registration on the same terms and conditions as any similar
securities of the Company or any other securityholder included therein and to
permit the sale or other disposition of such Registrable Securities in
accordance with the intended method of distribution thereof. The Investor shall
have the right to withdraw its request for inclusion of its Registrable
Securities in any registration statement pursuant to this Section 15 by giving
written notice to the Company of its request to withdraw. The Company may
withdraw a Piggy-Back Registration at any time prior to the time it becomes
effective; provided that the Company shall reimburse the Investor for all
reasonable out-of-pocket expenses (including counsel fees and expenses) incurred
prior to such withdrawal. Notwithstanding the foregoing, if the representative
of the underwriters advises the Company in writing that market factors require a
limitation on the number of shares to be underwritten, the representative may
reduce the number of Registrable Securities to be included in the registration
and underwriting (to zero, if necessary) on a pro rata basis (based on number of
shares owned) with all other secondary shares sought to be included therein.

     No failure to effect a registration under Section 15(b) and to complete the
sale of Registrable Securities in connection therewith shall relieve the Company
of any other obligation under this Agreement (including, without limitation, the
Company's obligations under Sections 15(d) and 15(e)).

         (c)  In the case of a Piggy-Back Registration:

              (1) The Company will, as expeditiously as possible:

                  (A) prepare and file with the Commission such amendments and
post-effective amendments to the applicable registration statement as may be
necessary to keep the registration statement effective for as long as such
registration is required to remain effective pursuant to the terms hereof, cause
the prospectus to be supplemented by any required prospectus supplement, and, as
so supplemented, to be filed pursuant to Rule 424 under the Act;

                  (B) furnish to the Investor at least one signed copy of the
registration statement and any post-effective amendment thereto, as soon as such
documents become available to the Company, and such number of conformed copies
thereof and such number of copies of the prospectus (including each preliminary
prospectus) and any amendments or supplements thereto, and any documents
incorporated by reference therein, as the Investor may reasonably request as
soon as such documents become available to the Company;

                                       12
<PAGE>

                  (C) on or prior to the date on which the registration
statement is declared effective, quality such Registrable Securities requested
to be included under such other securities or blue sky laws of such
jurisdictions as the Investor reasonably requests and do any and all other acts
and things which may be reasonably necessary or advisable to enable time
Investor to consummate the disposition in such jurisdictions of such Registrable
Securities; provided, that the Company will not be required to (i) qualify
generally to do business in any jurisdiction where it would not otherwise be
required to qualify, (ii) subject itself to general taxation in any such
jurisdiction or (iii) consent to general service of process in any such
jurisdiction;

                  (D) notify the Investor at any time when a prospectus relating
to such Registrable Securities is required to be delivered under the Act of the
happening of any event as a result of which the prospectus included in such
registration statement contains an untrue statement of a material fact or omits
to state any material fact required to be stated therein or necessary to make
the statements therein not misleading, and prepare a supplement or amendment to
such prospectus so that, as thereafter delivered to the purchasers of such
Registrable Securities, such prospectus will not contain an untrue statement of
a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading;

                  (E) notify the Investor of any stop order or other suspension
of effectiveness of the registration statement; and obtain the withdrawal of any
order suspending the effectiveness of the registration statement at the earliest
possible time;

                  (F) enter into such agreements (including an underwriting
agreement in form, scope and substance as is customary in underwritten
offerings) and take all such other actions in connection therewith (including
those requested by the managing underwriters, if any, or the Investor) in order
to expedite or facilitate the disposition of such Registrable Securities and in
such connection, whether or not an underwriting agreement is entered into and
whether or not the registration is an underwritten registration, (i) make such
representations and warranties to the Investor and the underwriters, if any,
with respect to the business of the Company and its subsidiaries, the
registration statement, prospectus and documents incorporated by reference or
deemed incorporated by reference, if any, in each case, in form, substance and
scope as are customarily made by issuers to underwriters in underwritten
offerings and confirm the same if and when requested; (ii) obtain opinions of
counsel to the Company and updates thereof (which counsel and opinions in form,
scope and substance) shall be reasonably satisfactory to the managing
underwriters, if any, and the Investor addressed to the Investor and each of the
underwriters, if any, covering the matters customarily covered in opinions
requested in underwritten offerings and such other matters as may be reasonably
requested by such holders and underwriters, including without limitation the
matters referred to clause (i) above; (iii) obtain "cold comfort" letters and
updates thereof from the independent certified public accountants of the Company
(and, if necessary, any other certified public accountants of any subsidiary of
the Company or of any business acquired by the Company for which financial
statements and financial data is, or is required to be, included in the
registration statement), addressed to the Investor and each of the underwriters,
if any, such letters to be in customary form and covering matters of the type
customarily covered in "cold comfort" letters in

                                       13
<PAGE>

connection with underwritten offerings; and (iv) deliver such documents and
certificates as may be requested by the Investor, its counsel and the managing
underwriters, if any, to evidence the continued validity of the representations
and warranties of the Company and its subsidiaries made pursuant to clause
(i) above and to evidence compliance with any customary conditions contained in
the underwriting agreement or other agreement entered into by the Company; and
notify the Investor promptly of the receipt by the Company of any notification
with respect to the suspension of the qualification of the Warrant and/or Common
Stock for sale in any jurisdiction; and

                  (G) take all other steps reasonably necessary to effect the
registration of the Registrable Securities contemplated hereby.

              (2) The Company will otherwise use its best efforts to comply with
all applicable rules and regulations of the Commission, and make available to
its securityholders, as soon as reasonably practicable, an earnings statement
covering a period of 12 months, beginning within three months after the
effective date of the registration statement, which earnings statement shall
satisfy the provisions of Section 11(a) of the Act.

              (3) The Company will use its best efforts (i) to cause any class
of Registrable Securities to be listed on a national securities exchange (if
such shares are not already so listed) and on each additional national
securities exchange on which similar securities issued by the Company are then
listed (if any), if the listing of such Registrable Securities is then permitted
under the rules of such exchange or (ii) to secure designation of all such
Registrable Securities covered by such registration statement as a NASDAQ
"national market system Security" within the meaning of Rule 11Aa2-1 of the
Commission or, failing that, to secure NASDAQ authorization for such Registrable
Securities.

         (d)  The Company shall keep effective and maintain any registration,
qualification, approval or listing specified in this Section 15 for a period of
180 days plus the term of any lock-up or until the holders have completed the
distribution described in the registration statement, whichever occurs first,
and from time to time shall amend or supplement the prospectus used in
connection therewith to the extent necessary in order to comply with applicable
law. All expenses, disbursements and fees in connection with any action to be
taken hereunder (including, without limitation, all registration and filing
fees, fees and expenses of compliance with securities or blue sky laws, printing
expenses and fees and expenses of counsel for the Company and its independent
certified public accountants and all reasonable fees and expenses of the
Investor and one Investor's counsel and appropriate local counsel (all such
expenses being herein called "Registration Expenses") will be borne by the
Company; provided that in no event shall Registration Expenses include any
underwriting discounts, sales commissions or similar fees or transfer taxes
attributable to the sale of Registrable Securities.

         (e)  The rights to cause the Company to register securities granted to
a holder under this Section 15 may be transferred or assigned by a holder only
to (i) an affiliate of such holder or (ii) a transferee or assignee of not less
than 20% of such holder's Registrable Securities (as determined on the date of
this Warrant and subject to subsequent adjustments for stock splits, stock
dividends, reverse stock splits, and the like), provided that, in either case

                                       14
<PAGE>

(A) the Company is given written notice at the time of or within 30 days after
transfer or assignment, stating the name and address of the transferee or
assignee and identifying the securities with respect to which such registration
rights are being transferred or assigned, (B) the transferee or assignee of such
rights assumes in writing the obligations of such holder under this Section 15
and (C) in the reasonable opinion of the Company, the transferee is neither a
competitor to the Company nor a party who is demonstrably hostile to the
Company.

         (f)  If requested by the Company and an underwriter of Common Stock (or
other securities) of the Company, an Investor shall not sell or otherwise
transfer or dispose of any Common Stock (or other securities) of the Company
held by such Investor (other than those included in the registration) during a
period not to exceed 180 days following the effective date of a registration
statement of the Company filed under the Securities Act, provided that all
officers and directors of the Company and holders of at least five percent of
the Company's voting securities are bound by and have entered into similar
agreements. The Company may impose stop-transfer instructions with respect to
the shares of Common Stock (or other securities) subject to the foregoing
restriction until the end of such 180 day period.

         (g)  The holders under this Warrant agree that, upon receipt of any
notice from the Company of the existence of any state of facts or the occurrence
of any event (including, without limitation, pending negotiations relating to,
or the consummation of, a transaction or the occurrence of any event which, in
the reasonable opinion of the Company, might require additional disclosure of
material, non-public information by the Company in any registration statement
provided for in this Warrant as to which the Company believes in good faith that
it has a bona fide business purpose for preserving confidentiality or which
renders the Company unable to comply with the published rules and regulations of
the Commission promulgated under the Securities Act or the Exchange Act, as in
effect at any relevant time) which might reasonably result in (A) such
registration statement, any amendment or post-effective amendment thereto, or
any document incorporated therein by reference containing an untrue statement of
a material fact or omitting to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, or (B) the
prospectus issued under such registration statement, any prospectus supplement,
or any document incorporated therein by reference including an untrue statement
of material fact or omitting to sate a material fact necessary in order the make
the statements therein, in light of the circumstances under which they were
made, nor misleading, the holders will forthwith discontinue disposition of the
Registrable Securities pursuant to such registration statement for a period
which is the shorter of (i) 30 calendar days from the Company's notice to such
holders or (ii) until the holders receive copies of prospectus supplements or
amendments prepared by or on behalf of the Company. If so directed by the
Company, the holders will deliver to the Company all copies in their possession
of the prospectus covering such Registrable Securities current at the time of
receipt of such notice. The Company shall not be permitted to require the
suspension of the disposition of Registrable Securities far a period in excess
of 90 calendar days in any 12 month period.

         (h)  The rights to request registration of any Company securities
pursuant to this Section 15 shall terminate as to any bolder who holds
Registrable Securities upon the earlier of (i) when a holder holds one percent
or less of the Company's Common Stock on an as-converted basis; (ii) when all of
a holder's Registrable Securities may be sold during a

                                       15
<PAGE>

single three-month period under Rule 144; (iii) when a holders Registrable
Securities may be transferred under Rule 144(k) unless such holder later becomes
an affiliate of the Company (as defined in Rule 144), in which case such
holder's rights to request registration shall be revived until such holder's
rights otherwise terminate under this subsection (h); and (iv) three years after
the closing of a firm commitment underwritten public offering pursuant to an
effective registration statement under the Securities Act covering the offer and
sale of the Company's Common Stock at a price per share of not less than $10.00
(as adjusted for stock splits, dividends, combinations and the like) and an
aggregate offering price to the public of not less than $20,000,000. Such three-
year period shall not include any period of time during which adequate current
public information, as defined in Rule 144(c) promulgated under the Securities
Act, is not available with respect to the Company.

         (i)  The Company hereby indemnifies, to the fullest extent permitted by
law, the Investor or each person, if any, who controls Investor within the
meaning of Section 15 of the Act, and the directors, officers, employees, agents
and representatives of each of them, against all losses, claims, damages,
liabilities, costs and expenses (including, without limitation, fees and
expenses of counsel), as incurred, arising out of, relating to, or caused by any
untrue statement or alleged untrue statement of a material fact contained in any
registration statement, prospectus or preliminary prospectus (or any amendment
or supplement thereto) or any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, except insofar as such losses, claims, damages,
liabilities or expenses are caused by any untrue statement contained in, or
omission from, information furnished in writing to the Company by Investor
expressly for use therein. In connection with any registration statement in
which Investor is participating, Investor will furnish to the Company in writing
such information as shall reasonably be requested by the Company for use in any
such registration statement or prospectus and will indemnify, to the extent
permitted by law, the Company, its directors and officers and each person, if
any, who controls the Company within the meaning of the Act against any losses,
claims, damages, liabilities and expenses resulting from any untrue statement
or, alleged untrue statement of a material fact or any omission or alleged
omission of a material fact required to be stated in the registration statement
or prospectus or necessary to make the statements therein not misleading, but
only to the extent that such untrue statement of a material fact is contained
in, or such material fact is omitted from, information so furnished in writing
by such Investor expressly for use therein.

         (j)  For purposes of this Section 15, the Investor shall include any
transferee of the Investor if such transfer is made in accordance herewith.

     16.  Remedies. The Company acknowledges and agrees that irreparable harm,
          --------
for which there may be no adequate remedy at law and for which the ascertainment
of damages would be difficult, would occur in the event any of the provisions of
this Warrant were not performed in accordance with its specific terms or were
otherwise breached. The Company accordingly agrees that the holders shall be
entitled to an injunction or injunctions to prevent breaches of the provisions
of this Warrant and to enforce specifically the terms and provisions hereof in
any court of the United States or any state thereof having jurisdiction, in each
instance

                                       16
<PAGE>

without being required to post bond or other security and in addition to, and
without having to prove the inadequacy of other remedies at law.

     17.  Securities Matters
          ------------------

     At such time as the Company becomes subject to the reporting requirements
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and at
all times thereafter, the Company agrees to deliver to the Investor all such
reports, information and other documents as it shall be required to file with
the Commission pursuant to Section 13 or 15(d) of the Exchange Act within 15-
days after the date it is required to file such reports with the Commission.
Prior to such time as the Company becomes subject to the reporting requirements
of the Exchange Act, and in order to make available the benefits of certain
rules and regulations of the Commission which may at any time permit the sale of
the shares of Common Stock issuable upon exercise of the Warrant to the public
without registration, the Company agrees to deliver to the Investor all such
reports, information and other documents as it may be required to provide to any
lender or other creditor. From and after the time the Company files a
registration statement with the Commission with respect to the Warrants or the
shares of Common Stock issuable thereunder, the Company shall file such
information with the Commission; provided, that the Company shall not be in
default of the provisions of this Section 17 for any failure to file reports
with the Commission solely by refusal by the Commission to accept the same for
filing.

                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       17
<PAGE>

[Warrant for the Purchase of Shares of Common Stock of Paradigm Genetics Inc.]

                                             PARADIGM GENETICS INC.,
                                             a North Carolina corporation

Address: 104 Alexander Drive                 By: _____________________________
         Building 2                              Name:    Ian Howes
         Research Triangle Park, NC 27709        Title:   CFO

                                                 Dated:  January 19, 2000

ACCEPTED AND AGREED:

ARE-104 ALEXANDER ROAD, LLC,
a Delaware limited liability company

By:  Alexandria Real Estate Equities, L. P.,
     a Delaware limited partnership,
     Its Managing Member

     By: ARE-QRS Corp.,
         ________________________________
         a Maryland corporation,
         Its General Partner

     By: ________________________________
         Name:
         Title:

Dated:  January ___, 2000

                                       18
<PAGE>

                                 SUBSCRIPTION
                                 ------------

Paradigm Generics Inc.
104 Alexander Drive
Building 2
Research Triangle Park, North Carolina 27709

Ladies and Gentlemen:

The undersigned, _____________________, hereby elects to purchase, pursuant to
the provisions of the Warrant dated, January __, 2000 held by the undersigned,
________ shares of the Common Stock of Paradigm Genetics Inc., a North Carolina
corporation, and renders herewith payment of the purchase price of such shares
in full.

In exercising its rights to purchase such Common Stock, the undersigned hereby
confirms the investment representations made in Section 7.

Dated:  ____________, ___.

                                       _______________________________________

                                       By ____________________________________

                            Address:   _______________________________________

                                       _______________________________________

                                       19
<PAGE>

                             [FORM OF ASSIGNMENT]

The undersigned hereby assigns this Warrant to

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
     (Print or type name, address and zip code of assignee)

Please insert Social Security or other
identifying number of assignee

------------------------------

and irrevocably appoints ___________________ as agent to transfer this Warrant
on the books of the Company. The agent may substitute another to act far him or
it.

Dated: _____________  Signed: __________________________

          (Sign exactly as name appears on the front of this Warrant)

Dated: _____________             Signed: ______________________________

                                 Name: ________________________________

                                 Title: _______________________________

                                       20

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