Document:

Asset Purchase Agreement

 Exhibit 10.49 

ASSET PURCHASE AGREEMENT 

THIS ASSET PURCHASE AGREEMENT (“Agreement”) is made and executed as of the
28th day of June, 2010 (“Effective Date”)
by and among COSMIC PET PRODUCTS, INC., a Delaware corporation (“Cosmic”), CONFUSION, INC., a Maryland corporation (“Parent”), LEON SEIDMAN (“Seidman”), Cosmic, Parent and
Seidman being hereinafter sometimes collectively referred to as “Seller Parties”, and OURPET’S COMPANY, a Colorado corporation (“Purchaser”). 

RECITALS: 
 A.
Cosmic is in the business of developing and marketing pet products, including catnip products, catnip toys, scratchers, treats and shuttles, under the names “Cosmic Cat”, “Cosmic Pet”, and other trade names (the
“Business”). 
 B. Parent is the sole shareholder of Cosmic. 

C. Seidman is the sole shareholder of Parent and a director and officer of both Cosmic and Parent. 

D. Cosmic desires to sell to Purchaser, and Purchaser desires to purchase from Cosmic, certain assets of the Business, as more fully
described herein. 
 NOW, THEREFORE, in consideration of, and in reliance upon, the mutual covenants, agreements,
representations and warranties herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, do hereby agree as follows: 

1. Sale and Purchase of Assets; Assumed Liabilities. 

 

	 	(a)	Assets to be Acquired. Cosmic agrees to sell, convey, transfer, assign and deliver to Purchaser, and Purchaser agrees to purchase, acquire and accept from
Cosmic, certain assets of the Business set forth as follows (collectively, the “Purchased Assets”): 

  

	 	(i)	“Inventory”, which shall mean such inventory of the Business as Purchaser, in its sole discretion, determines that it is willing to purchase
following completion of an inventory review by Purchaser to be performed prior to the Closing Date (as defined below). Prior to the Closing Date, Purchaser shall provide Cosmic with a list of the Inventory, including the proposed value of same,
which shall be attached to and incorporated into this Agreement as Schedule 1(a)(i). Purchaser shall not be obligated to acquire damaged, obsolete, unsaleable or excess inventory; 

 

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	 	(ii)	“Equipment”, which shall mean all of the equipment used in connection with the Business. Purchaser, at its sole cost and expense, shall retain
the services of an appraiser to ascertain the fair market value of the Equipment and, prior to the Closing Date, Purchaser shall provide Cosmic with a copy of the appraisal (“Appraisal”), and a list of the Equipment with the
appraised fair market value thereof, which list shall be attached to and incorporated into this Agreement as Schedule 1(a)(ii). Purchaser shall not be obligated to acquire any Equipment that is damaged, obsolete or no longer required
for the operation of the Business; 

  

	 	(iii)	Personal property of Cosmic, such as computer equipment, furniture and trade fixtures, including the items listed on Schedule 1(a)(iii) (the
“Fixed Assets”); provided, however, that Purchaser shall not be obligated to acquire Fixed Assets that are damaged, obsolete or no longer required for the operation of the Business; 

 

	 	(iv)	Any and all intellectual property, including, but not limited to, know-how, processes, all trademarks and trade names (including, without limitation, the exclusive
right to use the “Cosmic Cat” and “Cosmic Pet” trade names), trade secrets, and domain names, used or useable in the conduct of the Business to the extent they are transferable; 

 

	 	(v)	All licenses, permits, consents, authorizations, approvals and certificates of any regulatory, administrative or other governmental agency or body relating to the
Business, to the extent the same are transferable; 

  

	 	(vi)	Goodwill and all rights to customers, customer lists, websites, telephone numbers and fax numbers of the Business; 

 

	 	(vii)	Copies of all books of account related to customer transactions, customer lists, files, papers and records used in or relating to the conduct of the Business;

  

	 	(viii)	 All rights of Cosmic under existing sales contracts, agreements, commitments, purchase and sales orders, each of which shall be duly assigned to
Purchaser (collectively, the “Assumed Contracts”), provided however, that to the extent that the assignment of any agreement, contract, commitment and purchase or sales order requires the consent of the other party thereto,
this Agreement shall not constitute an agreement to assign the same if any attempted assignment would constitute a breach thereof, but Seller Parties agree each will use its or his commercially reasonable efforts to obtain the written consent of the
parties to any 

  

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such agreement, contract, commitment and purchase or sales order to the assignment thereof to Buyer, and if such consent is not obtained, Seller Parties will cooperate with Purchaser in any
reasonable arrangement designed to provide for Purchaser the benefits under any such agreement, contract, commitment and purchase or sales order; 

  

	 	(ix)	All prepayments and deposits (exclusive of any deposit or prepayment related to real estate or taxes) which have been made or paid by Cosmic, to the extent to which an
economic benefit is transferable to Purchaser; and 

  

	 	(x)	All other property of Seller pertaining to the Business, tangible or intangible, including, but not limited to, rights or interests used or useful in the operation of
the Business, to the extent transferable. 

  

	 	(b)	Excluded Assets. Notwithstanding anything to the contrary set forth above, the following assets of Cosmic shall not be sold to Purchaser hereunder:

  

	 	(i)	Cash; 

  

	 	(ii)	Accounts receivable arising prior to the Closing Date (“Pre-Closing A/R”); and 

 

	 	(iii)	Cosmic’s tax records, general books of accounts and company organizational records. 

 

	 	(c)	Assumed Liabilities. Subject to the terms and conditions set forth in this Agreement, Purchaser agrees to assume and pay or discharge as they come due only the
following obligations and liabilities of Cosmic as they exist as of the Effective Date, and no others (the “Assumed Liabilities”): 

  

	 	(i)	Cosmic’s liabilities/obligations arising under its capital leases for the Equipment (the “Equipment Leases”) as set forth in Schedule 1(c)
and the Assumed Contracts; 

  

	 	(ii)	all sales orders and commitments of Cosmic made in the ordinary course of its Business as to which shipments or deliveries shall not have been made or as to which
services have not be rendered; and 

  

	 	(iii)	Certain of Cosmic’s open purchase orders and commitments for goods, services and supplies not yet delivered as of closing, subject to OurPet’s express consent
on a case-by-case basis to assume such purchase order or commitment. 

  

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	 	(d)	Liabilities Not Assumed. Except for the Assumed Liabilities identified in Section 1(c), Purchaser does not assume or agree to be responsible for any debts,
obligations, liabilities or expenses of Seller Parties whatsoever (the “Excluded Liabilities”). 

  

	 	(e)	Assistance with A/R Collection. Following the closing of the transactions contemplated by this Agreement (the “Closing”), Purchaser agrees to
use reasonable commercial efforts to assist Cosmic with the collection of Pre-Closing A/R owed to Cosmic by customers who are also customers of the Purchaser. 

2. Purchase Price; Payment. 
  

	 	(a)	The purchase price (“Purchase Price”) for the Purchased Assets and other rights acquired herein shall be Eight Hundred Thousand Dollars ($800,000) and
is based upon the assumptions that (x) the fair market value of the Equipment as set forth in the Appraisal less the outstanding principal amount due as of the Closing Date on the Equipment Leases (the “Net Equipment
Value”) will be $70,000, and (y) the value of the Inventory (the “Inventory Value”) will be $450,000. The Purchase Price is subject to the following adjustments at Closing: 

 

	 	(i)	plus or minus the differential between the actual Net Equipment Value and $70,000; 

 

	 	(ii)	plus or minus the differential between Inventory Value determined as of Closing and $450,000; 

 

	 	(iii)	minus $25,000, which amount reflects (A) a $20,000 discount related to a prepaid product order for scratchers, and (B) a $5,000 credit for estimated labor
costs to be provided by OurPets after the Closing to assist Cosmic in its completion of the prepaid product order; and 

  

	 	(iv)	minus the aggregate amount of all inventory sold to Cosmic by Purchaser and currently reflected on Purchaser’s books as an accounts receivable.

 The parties shall agree on the actual total Purchase Price not later than three (3) days prior to the
Closing. 
  

	 	(b)	The Purchase Price, as adjusted, shall be delivered to Cosmic at Closing as follows: 

 

	 	(i)	$200,000 in cash; 

  

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	 	(ii)	wire transfer payment with respect to Cosmic’s current debt obligation (to be determined as of the Closing Date) to Centra Bank, Inc. of $400,000; and

  

	 	(iii)	the remainder in units comprised of four (4) shares of Purchaser’s common stock (the “Common Stock”) in certificated form to one
(1) warrant. The actual number of shares of Common Stock and the exercise price of the warrants to be issued will be determined by taking the average trading price of the Common Stock over twenty (20) trading days prior to the Closing Date
(as defined below) and dividing it into the remaining portion of the Purchase Price. 

 (c) Additional Purchase
Price Consideration. Purchaser acknowledges that Cosmic is actively negotiating with potential new customers that, if successful, would significantly impact the projected revenues and gross profits for Cosmic’s products over the next five
years. In the event Cosmic succeeds in securing such new customers with firm purchase orders prior to Closing, Purchaser will consider increasing the base purchase price set forth in Section 2(a) above from $800,000 up to an amount not to
exceed $900,000. 
 3. Allocation of Purchase Price. The Purchase Price shall be allocated in accordance with
Schedule 3 attached hereto, which allocation shall be according to generally accepted accounting principles and set forth on IRS Form 8594. The parties agree that this allocation of the Purchase Price shall be conclusive and binding,
and each party hereby covenants and agrees to use such allocation for all purposes, including tax returns. Such Schedule 3 may be attached in draft form at Closing and replaced with a final schedule within thirty (30) days of Closing. A
copy of the completed IRS Form 8594 shall be executed by OurPet’s and Cosmic and included in their respective tax returns. 

4. Related Agreements. At the Closing, and as a condition to Closing, Purchaser and Seller Parties shall enter into the following
agreements (hereinafter sometimes collectively referred to as the “Related Agreements”): 
  

	 	(a)	An employment agreement between Purchaser and Seidman, under the terms of which Seidman would be employed by Purchaser as a senior advisor with a salary of $50,000 per
year, plus all of Purchaser’s standard employee benefits. 

  

	 	(b)	An inventor agreement between Purchaser and Seidman using Purchaser’s standard form of inventor agreement, a copy of which is attached hereto as Schedule
4(b). 

  

	 	(c)	 A sales representative agreement (“Sales Rep Agreement”) between Purchaser and Parent using Purchaser’s standard sales
representative agreement (attached hereto as Schedule 4(c)), under the terms of which sales commissions would be payable to Parent for five (5) years at a rate

  

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of three percent (3%) of base sales of certain Cosmic Pet/Cosmic Cat products, consisting of catnip products, catnip toys, scratchers, Hide Perch and Go product, treats and shuttles
(“Category A Products”). Base sales shall mean net sales (i.e., gross revenues received less returns, allowances, discounts, mis-shipments and defectives). Certain other products not included as Category A Products
(“Category B Products”) shall be subject to a five percent (5%) commission payment on base sales of such products. The products constituting a Category A Product or a Category B Product shall be more specifically identified in
exhibits to the Sales Rep Agreement at Closing. 

  

	 	(d)	Seller Parties shall enter into a confidentiality, non-competition and non-solicitation agreement (the “Noncompete”) for a term of five (5) years,
on terms to be mutually agreed upon between Purchaser and Seller Parties. 

  

	 	(e)	Purchaser shall enter into a lease agreement with Seidman for the Business premises (the “Premises”) for a minimum two (2) year term, on terms to
be mutually agreed upon between Purchaser and Seidman. 

 5. Employees. Purchaser shall be under no
obligation to hire any employees of Cosmic, however Purchaser may hire such employees of Cosmic as Purchaser, in its sole discretion, may deem advisable. Cosmic shall terminate all of its employees as of the Closing Date in accordance with all
applicable laws, and Purchaser would hire those employees it elects to hire pursuant to its standard process and provide its standard benefits. All employees (including Seidman) would be required to execute Purchaser’s standard Employee Patent,
Copyright and Confidentiality Agreement. 
 6. Liabilities of Seller Parties. This Agreement provides for Purchaser to
acquire the Assets from Cosmic; Purchaser is not acquiring any stock in Cosmic or Parent. Further, it is the intent of the parties that Purchaser shall not assume nor become liable for, directly or indirectly, and Seller Parties do not intend to
sell, assign, or otherwise transfer, convey or create any liability (by agreement or by operation of law) in Purchaser with respect to any liability or obligation that any of Seller Parties now has, which any of Seller Parties may have at the
Closing Date, or which may thereafter accrue, other than the Assumed Liabilities. Cosmic shall perform, observe, pay or otherwise discharge any and all liabilities and obligations which arose, accrued or relate to any period prior to the Closing, in
particular, but not limited to, the payment of income taxes, utilities, FICA, FUTA, franchise taxes, federal, state, county and local sales and other taxes, unemployment taxes and workers compensation deposits. Seller Parties, jointly and severally,
agree to indemnify, defend and hold harmless Purchaser from and against any and all liabilities and obligations that Seller Parties now have, which Seller Parties may have at the Closing Date or which may hereafter accrue except for the Assumed
Liabilities. 
 7. Closing. The Closing shall occur on or before July 31, 2010 (the
“Closing Date”), or at such other date as may be mutually agreed upon by Seller Parties and Purchaser. The Closing will be held at the offices of Purchaser’s counsel, Kohrman Jackson & Krantz P.L.L., One Cleveland
Center, 20th Floor, 1375 East Ninth Street, Cleveland,
Ohio 44114, or in 
  

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such manner or location as the Seller Parties and Purchaser shall mutually agree. The Closing shall be deemed effective as of 5:00 p.m. on the Closing Date. 

8. Conditions to Purchaser’s Obligations. Unless waived in writing by Purchaser in its sole discretion, all
obligations of Purchaser under this Agreement are subject to the following conditions: 
  

	 	(a)	Representations, Warranties and Covenants. All representations and warranties of Seller Parties contained in this Agreement and in all documents delivered
pursuant hereto or in connection with the transactions contemplated hereby shall be true and accurate as of the date when made and shall be deemed to be made again at and as of the time of the Closing and shall then be true and accurate in all
respects. Seller Parties shall have performed and complied with all covenants, agreements and conditions required by this Agreement to be performed or complied with by them prior to or on the Closing Date. 

 

	 	(b)	No Adverse Proceedings. No material suit, action or other proceeding against any of Seller Parties or their respective shareholders, directors or officers shall
be pending or threatened before any court or governmental agency seeking to restrain or prohibit or to obtain damages or other relief which in the reasonable judgment of Purchaser makes the consummation of the transactions contemplated by this
Agreement inadvisable. 

  

	 	(c)	Noncompete. Seller Parties shall have entered into the Noncompete, in form and substance satisfactory to Purchaser. 

 

	 	(d)	Delivery of Items. Seller Parties shall have delivered to Purchaser the items required by Section 10 hereof. 

 

	 	(e)	Diligence. Purchaser shall be fully satisfied, in its sole discretion, with its diligence review of the Business. 

 

	 	(f)	Customers and Suppliers. Purchaser shall be fully satisfied, in its sole discretion, with the status of Cosmic’s relationships with its suppliers and
customers, and the reasonable likelihood of such business relationships being retained after the Closing. 

  

	 	(g)	Lender Approval. Purchaser’s lender shall have approved the transactions contemplated by this Agreement. 

 

	 	(h)	Inventory and Equipment. Purchaser and Seller Parties shall have reached agreement on the Inventory and Equipment to be purchased, including the Inventory Value
and Net Equipment Value. 

  

	 	(i)	 Approvals/Consents. Seller Parties shall have obtained any required 

 

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third party approvals and consents as may be necessary to close the transactions contemplated by this Agreement, including the prior written consents required to assign the Equipment Leases to
Purchaser. 

  

	 	(j)	Operation of Business. Cosmic shall have operated the Business in full compliance with all applicable codes, regulations, ordinances, orders and laws, and shall
have conducted the Business in the ordinary course and in the absence of any material adverse change in the financial condition, results of operation, business, assets, properties or prospects of Cosmic, or any of the Seller Parties.

  

	 	(k)	Liens. Any liens or encumbrances against the Purchased Assets shall have been removed prior to Closing. 

 

	 	(l)	Excess Inventory. OurPets and Cosmic shall have agreed upon the disposition by Cosmic of any excess Inventory not purchased by OurPets at Closing.

 9. Conditions to Seller Parties’ Obligations. Unless waived in writing by Seller Parties, all
obligations of Seller Parties under this Agreement are subject to the fulfillment, prior to or at the Closing, of each of the following conditions: 
  

	 	(a)	Representations, Warranties and Covenants. All representations and warranties of Purchaser contained in this Agreement and in all documents delivered pursuant
hereto or in connection with the transactions contemplated hereby shall be true and accurate as of the date when made and shall be deemed to be made again at and as of the time of the Closing and shall then be true and accurate in all respects.
Purchaser shall have in all material respects performed each obligation and complied with each covenant required by this Agreement to be performed or complied with by it on or prior to the Closing Date. 

 

	 	(b)	Delivery of Items. Purchaser shall have delivered to Seller Parties the items required by Section 11 hereof. 

10. Obligations of Seller Parties. At or prior to the Closing, Seller Parties shall deliver to Purchaser the following:

  

	 	(a)	an executed bill of sale, and an assignment and assumption agreement (in form and substance reasonably satisfactory to Purchaser and Purchaser’s counsel) conveying
to Purchaser fee simple title to the Purchased Assets free and clear of all liens, security interests and encumbrances. 

  

	 	(b)	certificates of good standing for Cosmic issued by the Delaware Secretary of State and the Maryland Secretary of State dated no earlier than ten (10) days prior to
the Closing. 

  

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	 	(c)	a certificate of good standing for Parent issued by the Maryland Secretary of State dated no earlier than ten (10) days prior to the Closing.

  

	 	(d)	certified copies of the resolutions of Cosmic’s and Parent’s respective shareholders and directors approving this Agreement and the transactions contemplated
herein. 

  

	 	(e)	delivery of the executed Related Agreements in form and substance reasonably satisfactory to Purchaser. 

11. Obligations of Purchaser. Upon satisfaction or waiver (by Purchaser) of all of the terms, covenants and conditions required by
this Agreement, Purchaser shall at the Closing, pay the Purchase Price to Cosmic, subject to the adjustments set forth in this Agreement, and deliver to Seller Parties the following: 

 

	 	(a)	an executed assignment and assumption agreement. 

  

	 	(b)	a certificate of good standing for Purchaser issued by the Colorado Secretary of State dated no earlier than ten (10) days prior to the Closing.

  

	 	(c)	certified copy of the resolutions of Purchaser’s directors approving this Agreement and the transactions contemplated herein. 

 

	 	(d)	delivery of the executed Related Agreements in form and substance reasonably satisfactory to Seller Parties. 

12. Representations and Warranties of Seller Parties. As a specific inducement for Purchaser to enter into this Agreement, Seller
Parties hereby, jointly and severally, represent and warrant to Purchaser as follows: 
  

	 	(a)	Cosmic Organization. Cosmic is a corporation organized, validly existing and in good standing under the laws of the State of Delaware and is qualified to do
business in the State of Maryland. Cosmic has the corporate power and lawful authority to enter into and perform the provisions of this Agreement and all agreements and documents to be delivered by Cosmic in connection herewith.

  

	 	(b)	Parent Organization. Parent is a corporation organized, validly existing and in good standing under the laws of the State of Maryland. Parent has the corporate
power and lawful authority to enter into and perform the provisions of this Agreement and all agreements and documents to be delivered by Parent in connection herewith. 

 

	 	(c)	 Authorization. The execution, delivery and performance of this Agreement, and all agreements and documents to be delivered by

  

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Cosmic and Parent in connection herewith, have been, or will on the Closing Date have been, duly authorized by the respective shareholders and directors of Cosmic and Parent; no further corporate
authorization will be necessary for the performance of Cosmic’s or Parent’s respective obligations hereunder or thereunder; and this Agreement and all agreements and documents to be delivered by Cosmic and Parent in connection herewith,
constitute valid and binding legal obligations of Cosmic and Parent, enforceable in accordance with their terms. 

  

	 	(d)	No Impediments. Neither the execution or delivery of this Agreement nor any documents and agreements delivered or to be delivered in connection herewith by
Seller Parties, nor their performance by Seller Parties, will result in the breach of any term or provision of, or will constitute a default under any indenture, mortgage, deed of trust, license agreement, patent, or other agreement or instrument to
which any of Seller Parties is a party or by which any of Seller Parties is bound. 

  

	 	(e)	Approvals. All consents, approvals, authority and other requirements prescribed by any law, rule or regulation, or any contract, agreement, commitment or
undertaking, which must be obtained or satisfied by any of Seller Parties for the consummation of the sale and transfer of the Purchased Assets contemplated by this Agreement have been obtained and satisfied, or will be obtained and satisfied on or
prior to the Closing Date. 

  

	 	(f)	Title. Cosmic has, or on the Closing Date will have, good and marketable title to all of the Purchased Assets, free and clear of all liens, pledges, security
interests or other encumbrances of any nature whatsoever, whether fixed or contingent, and whether due or to become due. Title and all risk of loss with respect to the Purchased Assets shall remain exclusively with Cosmic until the Closing.

  

	 	(g)	 Tax Returns. All tax returns and reports of Seller Parties required by law with respect to the Business and Purchased Assets have been duly
filed, and all taxes, assessments, and other fees and governmental charges upon the Seller Parties which might affect the Business or Purchased Assets or upon any of the Purchased Assets which are due and payable have been paid, other than those
presently payable without penalty or interest. None of the Seller Parties have executed or filed with any governmental authority any agreement extending the period for assessment or collection of any taxes. There are no claims pending against any of
the Seller Parties for deficient or past due taxes and no unassessed tax deficiencies are proposed or, to the best knowledge of Seller Parties, threatened against any of Seller Parties. No audits of any tax return of any of the Seller Parties are
currently in progress, and there are not in force any extensions of time with respect to the dates on which 

  

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any tax return was or is due to be filed by any of Seller Parties, or any waivers or agreements for the extension of time for the assessment or payment of any tax. 

 

	 	(h)	Broker. No broker or finder has acted for Seller Parties in connection with this Agreement or the transactions contemplated hereby, and no broker or finder is
entitled to any brokerage or finder’s fee or other commission in respect thereof, based in any way on agreements, arrangements or understandings made by or on behalf of Seller Parties. 

 

	 	(i)	Applicable Laws. No notice of a violation of any applicable federal, state or local statute, law, ordinance, regulation, rule, code, order or requirement, or of
any covenant, condition, easement or restriction, affecting the Business, the Business Premises, or relating to the use or occupancy thereof has been received by any of Seller Parties. To the knowledge of Seller Parties, Cosmic has operated the
Business in material compliance with all applicable laws, regulations, and other requirements of governmental authorities, and to the knowledge of Seller Parties, none of Seller Parties is now in violation of any applicable laws, regulations or
orders of any governmental authority. 

  

	 	(j)	Judgments. None of Seller Parties is a party to or subject to any judgment, order or decree entered in any action or proceeding brought by any federal, state,
municipal, foreign or other governmental department or agency or any other party against any of Seller Parties enjoining any of them in respect of, or the effect of which is to limit, restrict, regulate or prohibit the Business.

  

	 	(k)	Litigation. There are no claims, actions, suits, demands or other proceedings or investigations, either administrative or judicial, pending or, to the knowledge
of Seller Parties, threatened against any of Seller Parties. 

  

	 	(l)	Collective Bargaining Agreements. There are no collective bargaining agreements with respect to the Business. All of Cosmic’s employees are employees at
will and are subject to discharge without cause at any time. None of Seller Parties has received notice of any violation of any federal or state law or applicable regulation respecting employment, employment practices, terms and conditions of
employment, or wages and hours. Seller Parties have not received any notice of any attempt to organize a union. 

  

	 	(m)	 Employee Benefit Plans. There is no contract or plan that is an “Employee Benefit Plan” (as defined in Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended, as modified by regulations thereunder) which is or has been maintained by Cosmic 

 

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covering its employees or to which Cosmic has been obligated to contribute. 

  

	 	(n)	Financial Statements. Seller Parties have has delivered to Purchaser its most recent balance sheets, and statements of income and cash flow (the
“Financial Statements”) for the Business. [The most recent Financnail Statements provided by Seller Parties are for the fiscal year ended December 31, 2009.] The Financial Statements were prepared on a consistent basis with
prior periods, are consistent with the federal income tax returns filed by Seller Parties, and present fairly the financial condition and results of operation of the Business as of the dates set forth therein. The Financial Statements reflect all of
the assets necessary to the operation of the Business on the dates thereof and necessary for the Purchaser’s conduct of the Business following Closing. 

 

	 	(o)	Purchased Assets. The Purchased Assets constitute all of the assets material to the operation of the Business in the ordinary course and, other than the real
property owned by Seidman which will be leased to OurPets at Closing, there are no assets material to the Business owned by another entity or individual. Seller Parties represent that, with respect tangible assets, they know of no hidden or latent
defects that would not be discoverable upon reasonable inspection of those tangible assets. 

  

	 	(p)	Trade Names. Purchaser shall have the exclusive unencumbered right to use the names “Cosmic Pet” and “Cosmic Cat” following the Closing.
Seller Parties shall have no right to use such trade names after the Closing Date. 

  

	 	(q)	Disclosure. No representation or warranty made by Seller Parties contained in this Agreement or in any other writing furnished pursuant hereto or in connection
therewith contains an untrue statement of a material fact or omits to state a material fact necessary to make the statements and facts contained herein or therein, in light of the circumstances in which they were or are made, false or misleading.

  

	 	(r)	Contracts and Agreements. Except for the Equipment Leases and Cosmic’s current lease for the Premises, Cosmic is not a party to a contact or agreement
(whether written or oral), not cancelable without penalty or premium upon not more than thirty (30) days’ notice. 

  

	 	(s)	 Business Relations. None of Seller Parties has received any oral or written notification, and are not otherwise aware of: (i) any
circumstances which would reasonably cause them to believe that Cosmic’s business relationship with any customer, sales representative, dealer or supplier would be materially adversely affected by the transactions contemplated hereunder; or
(ii) any specific potential 

  

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customer returns. 

  

	 	(t)	Hazardous Wastes. To the knowledge of Seller Parties knowledge, there are no toxic or hazardous wastes, substances or materials in, on or about the Premises.

  

	 	(u)	No Material Changes. Since January 1, 2010 and through the Closing, the Business has been operated in the normal course and no materially adverse changes
have occurred except as expressly disclosed to the Purchaser. 

 13. Representations and Warranties of
Purchaser. Purchaser represents and warrants to Seller as follows: 
  

	 	(a)	Organization. Purchaser is a corporation organized, validly existing and in good standing under the laws of the State of Colorado. Purchaser has full power and
lawful authority to enter into and perform the provisions of this Agreement and all agreements and documents to be delivered by Purchaser in connection herewith. 

 

	 	(b)	Authorization. The execution, delivery and performance of this Agreement, and all agreements and documents to be delivered by Purchaser in connection herewith,
have been, or will on the Closing Date have been, duly authorized by the directors of Purchaser; no further authorization will be necessary for the performance of Purchaser’s obligations hereunder or thereunder; and this Agreement and all
agreements and documents to be delivered by Purchaser in connection herewith, constitute valid and binding legal obligations of Purchaser, enforceable in accordance with their terms. 

 

	 	(c)	Broker. No broker or finder has acted for Purchaser in connection with this Agreement or the transactions contemplated hereby, and no broker or finder is
entitled to any brokerage or finder’s fee or other commission in respect thereof based in any way on agreements, arrangements or understandings made by or on behalf of Purchaser. 

14. Access to Records. Following the Closing, Purchaser and Seller Parties shall give one another the right to access and, at the
accessing party’s expense, to make copies of appropriate books or records of the Business for proper purposes (including, but not limited to, for tax preparation purposes). 

15. Indemnification; Limitations. 
  

	 	(a)	 Indemnification by Seller Parties. Notwithstanding the payment of the Purchase Price and the delivery of instruments of conveyance, from and
after the Closing Date, Seller Parties, jointly and severally, will 

  

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indemnify, defend and save and hold the Purchaser and its officers, directors, shareholders, employees, affiliates, successors and assigns (solely for purposes of this Section 15(a),
included as a “Purchaser”) harmless from and against any and all damages, losses, costs, claims, liabilities, causes of action and expenses (including reasonable attorneys’ fees) (collectively, the “Damages”)
arising out of or resulting from, and will pay to Purchaser on demand the full amount of any sum that Purchaser may pay or become obligated to pay on account of: (i) any inaccuracy of any representation or the breach of any warranty made by any
of Seller Parties hereunder; (ii) any failure of Seller Parties to duly perform or observe any term, provision, covenant, agreement or condition under this Agreement, and all agreements delivered in connection with this Agreement, on the part
of Seller Parties to be performed or observed; (iii) any liability arising out of Cosmic’s operation of the Business or Cosmic’s ownership of the Purchased Assets prior to Closing; (iv) any Excluded Liabilities; and (v) any
liability of Purchaser arising through operation of law as the transferee of the Purchased Assets arising out of any act or omission of any of Seller Parties, including but not limited to Seller Parties’ failure to comply with any bulk sales or
fradulent transfer laws that may be applicable to the transactions contemplated by this Agreement. 

  

	 	(b)	Indemnification by Purchaser. Purchaser will indemnify, defend and save and hold the Seller Parties and its employees, affiliates, successors and assigns (solely
for purposes of this Section 15(b), included in “Seller Parties”) harmless from and against any and all Damages arising out of or resulting from, and will pay to Seller Parties on demand the full amount of any sum that Seller
Parties may pay or become obligated to pay on account of: (i) any inaccuracy of any representation or the breach of any warranty made by purchaser hereunder; (ii) any failure of Purchaser to duly perform or observe any term, provision,
covenant, agreement or condition under this Agreement, including payment of the Assumed Liabilities, and all agreements delivered in connection with this Agreement, on the part of Purchaser to be performed or observed; and (iii) any liability
arising out of Purchaser’s operation of the Business subsequent to Closing. 

  

	 	(c)	Absence of Investigation. No investigation made heretofore by or on behalf of any party shall limit or affect in any way the representations, warranties,
covenants, agreements and indemnities of the other party hereunder, each of which shall survive any such investigation. 

  

	 	(d)	 Limitations on Indemnification. The maximum amount of damages for which either party (the “Indemnifying Party”) shall be liable
to the other party (the “Indemnified Party”) for claims made pursuant to this Section shall be the Purchase Price; provided, however, Damages for which the

  

 - 14 - 

	 	 
Indemnified Party is seeking indemnification from the Indemnifying Party that are the direct result of a third party claim or action shall not be subject to the cap set forth herein.

  

	 	(e)	Exceptions. Notwithstanding anything to the contrary in this Agreement, claims for indemnification based on allegations of actual fraud or intentional
misrepresentation shall not be subject to the limitations set forth in this Section. 

  

	 	(f)	Insurance. The amount of any Damages for which indemnification is provided under this Section shall be net of any insurance proceeds received by the Indemnified
Party as an offset of such damages (net of any costs incurred in connection with the collection thereof, including deductibles, legal and administrative costs and costs of investigation). 

 

	 	(g)	No Waiver. The closing of the transactions contemplated by this Agreement shall not constitute a waiver by any party of its rights to indemnification hereunder,
regardless of whether the party claiming the right to indemnification has knowledge of the breach, violation or failure of condition constituting the basis of the claim at or before the date hereof, and regardless of whether such breach, violation,
or failure is deemed to be material. 

 16. Additional Covenants of the Parties. 

 

	 	(a)	Covenants of Seller Parties. 

  

	 	(i)	Other Instruments. Seller Parties covenant and agree to execute and deliver to Purchaser at its request from time to time after the Closing Date such instruments
of transfer, bills of sale, assignments and other documents as may be necessary or appropriate to complete the transactions contemplated by this Agreement. 

 

	 	(ii)	Transfer of Operations. Seller Parties agree to use their best efforts to transfer the Business to Purchaser, and shall respond to Purchaser’s inquiries
relating to the Business or the Purchased Assets. If requested by Purchaser, Seller Parties shall cooperate with Purchaser in making public announcements of the purchase. 

 

	 	(iii)	Workers Compensation. Seller Parties shall be responsible for all costs associated with claims for workers’ compensation and other occupational health or
injury claims of employees of Cosmic prior to the Closing and for any claim filed subsequent to the Closing made in connection with any injury, event or occurrence taking place prior to the Closing. 

 

 - 15 - 

	 	(b)	Covenants of Purchaser. Purchaser shall timely pay all obligations under the Equipment Leases and the lease for the Premises. 

17. Survival of Representations, Warranties, Agreements and Covenants. All representations and warranties made by Seller Parties
and Purchaser hereunder in connection with the transactions contemplated hereby shall survive the Closing and the delivery of any instrument of transfer and conveyance until the second anniversary of the Effective Date and shall terminate; provided,
however, that the representations and warranties of the Seller Parties set forth in (i) Sections 12(a), (b), (c) and (f) shall have no expiration date, and (ii) Sections 12 (g), (k) and (l) shall survive until sixty
(60) days after the applicable statute of limitations expires. The agreement and covenants of the parties set forth in this Agreement shall survive the Closing and continue until all obligations set forth therein shall have been performed and
satisfied or suntil such agreements and covenants shall have terminated in accordance with their terms. 
 18. Fees and
Expenses. Each of the parties hereto shall pay its own expenses incident to the preparation of this Agreement and the consummation of the transactions contemplated hereby, including, but not limited to, the fees and expenses of attorneys and
accountants representing such parties in connection herewith. 
 19. Payments and Prorations. All sales, use and transfer
taxes, if any, payable on the Purchased Assets transferred to Purchaser shall be paid by Seller Parties. Utilities servicing the Premises shall be prorated to the Closing Date. 

20. Possession. Sole and exclusive possession of the Premises and Purchased Assets shall be delivered to Purchaser on the Closing
Date. 
 21. Notices. Any notice required or permitted to be given under this Agreement shall be in writing and shall be
sufficiently delivered if sent by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
  

	 	(a)	If to any of the Seller Parties, to: 

Mr. Leon Seidman 

1539 Kensington Drive 

Hagerstown, Maryland 21740 

With a copy to: 

Kenneth Grove, Esq. 

Myers, Young & Grove, P.A. 

82 West Washington Street 

Hagerstown, Maryland 21740 

Fax: (301) 733-4110 
  

 - 16 - 

	 	(b)	If to Purchaser, to: 

Dr. Steven Tsengas 

OurPet’s Company 

1300 East Street 

Fairport Harbor, Ohio 44077 

Fax: (440) 354-9129 

With a copy to: 

Connie S. Carr, Esq. 

Kohrman Jackson & Krantz P.L.L. 

One Cleveland Center,
20th Floor 

1375 East Ninth Street 

Cleveland, Ohio 44114 

Fax: (216) 621-6536 

22. Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of and be enforceable by the respective
parties hereto, their personal representatives, successors and assigns; provided, however, that none of the parties may assign its rights or obligations under this Agreement without the other parties’ prior written consent. 

23. Governing Law; Jurisdiction and Venue. This Agreement shall be deemed to have been entered into and to be performed in the
State of Ohio and shall be governed and construed and enforced in accordance with the laws of such state. Jurisdiction and venue for any action or claim arising hereunder shall lie exclusively in the Lake County, Ohio Court of Common Pleas, and each
party irrevocably consents to the personal and subject matter jurisdiction of that court. 
 24. Entire Agreement; No Oral
Modification. This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior oral and written understandings relating thereto. No modification or termination of this Agreement,
nor any waiver of any provision hereof shall be valid or effective unless in writing and signed by the party or parties sought to be charged therewith. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any
other or subsequent breach or condition, whether of like or different nature. 
 25. Enforcement. Seller Parties
acknowledge and agree that the Purchased Assets are unique, that damages for any failure of Seller Parties to transfer and convey said Purchased Assets to Purchaser pursuant to this Agreement would be an inadequate remedy, and that Purchaser shall
be entitled to enforcement of this Agreement by judgment for specific performance, as well as for damages. 
 26. Section
Headings. The section headings set forth herein are included for convenience of reference only and shall not affect the meaning or construction of any provision of this Agreement. 

 

 - 17 - 

 27. No Third Party Beneficiaries. Nothing in this Agreement is intended nor will it
be construed to give any person other than the parties hereto and their respective successors and permitted assigns, any right, remedy or claim under or in respect of this Agreement or any provisions hereof. 

28. Severability. Any term or provision of this Agreement which is invalid or unenforceable shall be ineffective to the extent of
such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement. 

29. Counterparts. This Agreement may be executed in any number of counterparts, including by facsimile or electronic signature
included in an Adobe PDF file, each of which shall, for all purposes, be deemed an original, but all of which shall constitute one and the same instrument. 

30. No Shop. From and after the date hereof unless and until this Agreement shall have been terminated in accordance with its
terms, the Seller Parties hereby agree: (i) to immediately cease any existing discussions or negotiations with any other person conducted prior to the date of this Agreement, directly or indirectly, with respect to any sale of the assets,
shares or other equity securities of Cosmic or Parent; (ii) not to directly or indirectly solicit, initiate, encourage or facilitate the submission of proposals or offers from any person other than Purchaser relating to any merger or
acquisition of the Shares or other equity securities of Cosmic or Parent or a material portion of the assets of, or other similar transaction involving, Cosmic or Parent (an “Acquisition Proposal”), or (iii) directly or
indirectly participate in any discussions or negotiations regarding, or furnish any information to any person other than Purchaser in connection with, or consummate or enter into any agreement, contract or understanding with respect to, any
Acquisition Proposal by any person other than Purchaser. The Seller Parties shall immediately notify any person who contacts any of them with respect to an Acquisition Proposal of the existence of this Agreement. 

31. Bulk Transfers. The parties hereto waive compliance with the requirements of the bulk transfer and/or bulk sales laws of any
jurisdiction in connection with the sale of the Purchased Assets to Purchaser hereunder. Seller Parties shall indemnify and hold harmless Purchaser against any losses that may be incurred by Purchaser as a result of noncompliance with any such bulk
transfer and/or bulk sales laws. 
 [signature page follows] 

 

 - 18 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
dates set forth below their respective signatures. 
  

							
	SELLER PARTIES:	 	PURCHASER:
		
	COSMIC PET PRODUCTS, INC.	 	OURPET’S COMPANY
				
	By:	 	 /s/ Leon L. Seidman
	 	By:	 	 /s/ Dr. Steven Tsengas

	Name:	 	Leon L. Seidman	 	Name:	 	Steven Tsengas
	Title:	 	President	 	Title:	 	Chairman/CEO

  

			
	CONFUSION, INC.
		
	By:	 	 /s/ Leon L. Seidman

	Name:	 	Leon L. Seidman
	Title:	 	President

  

	
	 /s/ Leon L. Seidman

	LEON SEIDMAN, Individually

  

 - 19 -Lease Agreement

Table of Contents

 Exhibit 10.1 

BRIER CREEK OFFICE PARK 

WAKE COUNTY, NORTH CAROLINA 

LEASE BETWEEN 

BRIER CREEK CORPORATE CENTER ASSOCIATES LIMITED PARTNERSHIP 

Landlord, 

AND 

INSPIRE PHARMACEUTICALS, INC., 

Tenant 

DATED JUNE 28, 2010 

Table of Contents

 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page
			
	 1.
	  	Principal Terms	  	1
			
	 2.
	  	Premises	  	4
			
	 3.
	  	Term	  	5
			
	 4.
	  	Rent	  	5
			
	 5.
	  	Operating Expense Payments	  	6
			
	 6.
	  	Use	  	7
			
	 7.
	  	Assignment, Mortgaging and Subletting	  	9
			
	 8.
	  	Repairs	  	9
			
	 9.
	  	Access	  	10
			
	 10.
	  	Common Facilities/Landlord’s Maintenance	  	10
			
	 11.
	  	Utilities and Services	  	11
			
	 12.
	  	Alterations	  	13
			
	 13.
	  	Insurance	  	14
			
	 14.
	  	Non-Liability and Indemnification	  	15
			
	 15.
	  	Casualty Damage	  	15
			
	 16.
	  	Eminent Domain	  	16
			
	 17.
	  	Events of Default	  	16
			
	 18.
	  	Landlord’s Remedies	  	17
			
	 19.
	  	Landlord’s Defaults	  	18
			
	 20.
	  	Subordination and Attornment	  	18
			
	 21.
	  	Surrender	  	18
			
	 22.
	  	Holding Over	  	19
			
	 23.
	  	Quiet Enjoyment	  	19
			
	 24.
	  	Security Deposit	  	19

  

 i 

Table of Contents

					
			
	 25.
	  	Rules and Regulations	  	19
			
	 26.
	  	Guaranty	  	20
			
	 27.
	  	Miscellaneous	  	20
			
	 28.
	  	Exhibits	  	23
			
		  	Exhibit A - Description of Premises	  	A-1
		  	Exhibit B - Rules and Regulations	  	B-1
		  	Exhibit C - Work Letter Agreement	  	C-1
		  	Exhibit D - Operating Expenses	  	D-1
		  	Exhibit E - Basic Rent	  	E-1
		  	Exhibit F – Intentionally Deleted	  	F-1
		  	Exhibit G - Other Terms	  	G-1
		  	Exhibit H - Description of the Land	  	H-1
		  	Exhibit I – Commencement Date Stipulation	  	I-1

Table of Contents

 LEASE AGREEMENT 

THIS LEASE AGREEMENT is made and entered into as of this 28th day of June, 2010 (the “Effective Date”) by and between BRIER
CREEK CORPORATE CENTER ASSOCIATES LIMITED PARTNERSHIP, a North Carolina limited partnership (“Landlord”), and INSPIRE PHARMACEUTICALS, INC., a Delaware corporation (“Tenant”). 

W I T N E S S E T H : 

1. Principal Terms. The following terms shall have the meanings set forth below for all purposes in this Lease: 

(a) Additional Rent means all sums of money whatsoever, including an increase in Operating Expenses above the Base Factor, other
than Basic Rent, due and payable by Tenant to Landlord under this Lease. 
 (b) Base Factor means the actual annual
Operating Expenses for the Building during calendar year 2012, and which is included in Basic Rent. 
 (c) Basic Rent
means that amount set forth on Exhibit E attached hereto. 
 (d) Building means the building improvements commonly
known as “Brier Creek Office #6” located or to be located upon the Land. The Building contains (or, once constructed, will contain) approximately 121,388 Rentable Square Feet. 

(e) Building Standard means the materials and work which Landlord, in its sole discretion, purchases or obtains, from time to time
and at any time, from its suppliers or contractors for general use in finishing premises in the Building for individual tenants. 

(f) Business Days means all days other than Saturdays, Sundays and days proclaimed as legal holidays by the State of North
Carolina, the City of Raleigh or the Federal Government, provided that upon such holidays, professional businesses, such as law firms or accounting firms, are not generally open for business. 

(g) Business Hours means the hours from 6:30 a.m. to 6:30 p.m., on Business Days, and from 8:00 a.m. to 1:00 p.m. on Saturdays and
Sundays, exclusive of (i) New Year’s Day, (ii) Memorial Day, (iii) Independence Day, (iv) Labor Day, (v) Thanksgiving Day, and (vi) Christmas Day. 

(h) Commencement Date shall mean January 1, 2011 provided that Landlord has delivered the Premises to Tenant “Ready for
Occupancy” as defined Paragraph 3(b); provided, however, if Tenant shall first occupy any part of the Premises for any purpose other than in connection with Tenant’s Work as described on Exhibit C annexed hereto or for installation of
furniture fixtures and equipment in accordance with Section 3(b), the Commencement Date, for all purposes hereunder, shall be deemed to be the date of such occupancy by Tenant. In the event that the Premises are not Ready for Occupancy on
January 1, 2011, the Commencement Date and the Rent Commencement Date and all other dates that may be affected by their change shall be revised to conform to Landlord’s delivery of the Premises to Tenant in accordance with this Lease.

 (i) Development means that certain commercial development known as “Brier Creek Office Park,” which
Development includes the Land. 
 (j) Expiration Date means December 31, 2017. 

 

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Table of Contents

 (k) Hazardous Substance means any substance which is toxic, ignitable, reactive, or
corrosive and which is regulated by any local government, the state of North Carolina, or the United States Government, and includes any and all materials or substances which are defined as “hazardous waste,” “extremely hazardous
waste,” or a “hazardous substance” pursuant to state, federal, or local governmental law, including but not limited to asbestos, polychlorobiphenyls (“PCB’s”) and petroleum. 

(l) Insurance Requirements means all requirements of any insurance policy covering or applicable to all or any part of the Land,
the Building or the Premises or the use thereof, all requirements of the issuer of any such policy and all orders, rules, regulations, recommendations and other requirements of the local board of fire underwriters or any other body exercising the
same or similar functions and having jurisdiction or cognizance of all or any part of the Land, the Building or the Premises. 

(m) Land means that certain parcel of land within the Development which is described on Exhibit H attached hereto and
incorporated herein by reference. 
 (n) Landlord means Brier Creek Corporate Center Associates Limited Partnership.

 (o) Landlord’s Notice Address means c/o American Asset Corporation, 3700 Arco Corporate Drive, Suite 350,
Charlotte, North Carolina 28273, or such other address as Landlord shall give in accordance with Paragraph 27(k). 
 (p)
Landlord’s Work shall have the definition for such term set forth in the Work Letter Agreement. 
 (q) Latent
Defects means any defects in Landlord’s Work that were not known or reasonably discoverable by Tenant by observation or inspection within 60 days after the Commencement Date. 

(r) Legal Requirements means all laws, statutes and ordinances (including building codes and zoning regulations and ordinances)
and the orders, rules, regulations, directives and requirements of all federal, state, county and city departments, bureaus, boards, agencies, offices, commissions and other subdivisions thereof, or of any official thereof, or of any other
governmental, public or quasi-public authority, whether now or hereafter in force, which may be applicable to the Land, the Building or the Premises, or any part thereof, and all requirements, obligations and conditions of all instruments of record
affecting the Land and the Building. 
 (s) Operating Expenses means all expenses relating to the Building and Public
Areas, and all expenses and costs (but not specific costs which are allocated or separately billed to and paid by specific tenants) of every kind and nature which Landlord shall pay or become obligated to pay because of or in connection with owning,
operating, managing, painting, repairing, insuring, cleaning, maintaining, decorating, securing, and replacing components or systems in the Building and Public Areas, computed on an accrual basis and in accordance with generally accepted accounting
principles consistently applied, including, but not limited to, all Taxes and the items enumerated in Exhibit D annexed hereto; provided, however, notwithstanding anything herein to the contrary or in Exhibit D, the
following shall be excluded from Operating Expenses: (i) depreciation or amortization (except as otherwise provided above), (ii) debt service or interest (paid or accrued) or financing charges associated with the Building,
(iii) leasing commissions, brokerage fees, or special tenant inducements, (iv) repairs to the Premises and any demised premises where the occurrence causing the damage or loss necessitating repair is reimbursed by insurance carried by
Landlord, (v) costs incurred by Landlord for Tenant’s alterations, (vi) the cost of capital improvements other than those that result in a reduction to Operating Expenses, (vii) costs of correcting building code violations which
violations were in existence on the Commencement Date, (viii) repairs and replacements for which and to the extent that Landlord has been reimbursed by insurance and/or paid pursuant to warranties, (ix) advertising, marketing and
promotional expenses, (x) costs representing amounts paid to an affiliate of 
  

 2 

Table of Contents

 
Landlord for services or materials which are in excess of the amounts which would have been paid in the absence of such relationship, (xi) reserves for anticipated future expenses,
(xii) accounting services rendered for the benefit of Landlord; (xiii) any costs or expenses incurred by Landlord in bringing the Premises or Building, or any portion thereof, into compliance with any applicable federal, state or local
statutes, codes, ordinances or rules and (ix) costs related to remediation or clean up of hazardous materials. 
 (t)
Partnership Tenant means a partnership of two (2) or more persons or entities, individually, or as joint ventures or as co-partners of a partnership. 

(u) Premises means approximately 42,854 rentable square feet rentable square feet on the
1st,
4th and
5th floors of the Building, said Premises being more
particularly depicted on Exhibit A attached (the parties hereto agree that Exhibit A is used solely to depict the general Premises and the actual floor plan for construction purposes shall be mutually agreed upon by Landlord and Tenant
pursuant to Exhibit C hereof), subject, however, to the right to re-measure per BOMA standards as set forth in Paragraph 2. 

(v) Public Areas means the sidewalks, driveways, public entrances, passageways, doors, doorways, corridors, elevators, stairs,
toilets, parking areas, parking decks, entrance drives and other public portions of the Building and the Land. 
 (w) Ready
for Occupancy has the definition ascribed to it in Paragraph 3(b) hereof. 
 (x) Rent means Basic Rent and Additional
Rent. 
 (y) Rent Commencement Date means the date which is 8 months after the Commencement Date. 

(z) Rentable Square Feet of the Premises means 42,854 rentable square feet, subject to the terms of Paragraph 2 hereof.

 (aa) Rules and Regulations means those attached to this Lease as Exhibit B and such reasonable changes therein
as Landlord hereafter may make and communicate in writing to Tenant. 
 (bb) Security Deposit means the sum of
$142,847.00, to be held and used in accordance with Paragraph 24 hereof. 
 (cc) Taxes means all taxes, assessments, and
governmental charges, whether or not directly paid by Landlord, whether federal, state, county, or municipal and whether assessed by taxing district or authorities presently taxing the Building and the Land or by others subsequently created or
otherwise, and any other taxes and assessments attributable to the Land and the Building or its operation, excluding, however, federal and state taxes on income, death taxes, franchise taxes, and any taxes imposed or measured on or by the income of
Landlord from the operation of the Building or imposed on Landlord’s profit in connection with any change of ownership of the Building; provided, however, that if at any time during the Term the present method of taxation or assessment shall be
so changed that the whole or any part of the taxes, assessments, levies, impositions, or charges so levied, assessed, or imposed on real estate and the improvements thereof shall be discontinued and as a substitute therefor, or in lieu of or in
addition thereto, taxes, assessments, levies, impositions, or charges shall be levied, assessed and/or imposed wholly or partially as a capital levy or otherwise on the rents received from the Building, such substitute or additional taxes,
assessments, levies, impositions, or charges, to the extent so levied, assessed, or imposed, shall be deemed to be included within Taxes. 

(dd) Tenant means Inspire Pharmaceuticals, Inc. 

 

 3 

Table of Contents

 (ee) Tenant’s Notice Address means 4222 Emperor Boulevard, Suite 200, Durham, NC
27703 prior to the Commencement Date and the address of the Premises thereafter. 
 (ff) Tenant’s Operating Payment
means an amount equal to Tenant’s Proportionate Share of the amount by which Operating Expenses for a calendar year exceeds the Base Factor. 

(gg) Tenant’s Plans means the plans and specifications for the build-out or upfit of the Premises as approved by Landlord and
Tenant in accordance with and as contemplated in the Work Letter Agreement. 
 (hh) Tenant’s Proportionate Share
means, as of the date hereof, 33.6%., provided, however, such percentage may be adjusted in the event the Building is re-measured in accordance with Paragraph 2 hereof. 

(ii) Tenant’s Work shall have the definition for such term set forth in the Work Letter Agreement attached hereto as Exhibit
C. 
 (jj) Term means that certain term of this Lease, commencing and expiring as set forth in Paragraph 3(a) hereof,
subject to Tenant’s renewal rights as set forth on Exhibit G. 
 (kk) Unavoidable Delays means any delays caused by
other tenants, war, civil commotion, riot, acts of God, strikes or other labor disputes, governmental restrictions, regulations or actions, fire or other casualty, shortage or unavailability of labor or materials obtainable on reasonable terms,
adverse weather conditions or unusual inclement weather or any other factors beyond the reasonable control of Landlord, whether similar or not to any of those listed above. 

(ll) Intentionally Deleted. 

2. Premises 

Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the Premises, together with the right to the use of and benefit
from, in common with others, the Public Areas. Notwithstanding the provisions of the immediately preceding sentence, (i) Tenant and Tenant’s guests and invitees shall not, at any given time, be entitled to use more than four
(4) parking spaces within the Development for each 1,000 Rentable Square Feet within the Premises, and (ii) Landlord shall have the right during the Term to reserve parking spaces on the Land for the exclusive use of other tenants in the
Building, provided the reservation of such spaces for the exclusive use of other tenants in the Building does not have the effect of denying Tenant the non-exclusive use of 4 parking spaces for each 1,000 square feet of Rentable Square Feet within
the Premises. Tenant acknowledges that parking for the Building at the rate of four (4) parking spaces for each 1,000 Rentable Square Feet within the Premises shall be made available beginning on the Commencement Date through the expiration of
the Lease as follows: (i) within the Building’s parking lot, 2 designated spaces expressly reserved for Tenant and 6 designated spaces expressly reserved for visitors to the Building and 3.6 parking spaces for each 1,000 square feet of
Rentable Square Feet in the Premises and (ii) the balance of parking spaces shall be through the entire Brier Creek Urban Park through cross-parking easements and interconnectivity with the adjacent buildings and land in the park. 

Landlord and Tenant acknowledge that, at any time within ninety (90) days of the Commencement Date, Landlord or Tenant shall be
entitled to cause the Rentable Square Feet within the Premises to be measured by BOMA. In the event that Landlord or Tenant exercises such option, and in the event that such measurement, performed in accordance with BOMA, reveals, in Landlord’s
and Tenant’s reasonable discretion, that the number of Rentable Square Feet within the Premises differs from 42,854 rentable square feet by (a) one percent (1%) or more, then the amount of Basic Rent payable hereunder, Tenant’s
Proportionate Share hereunder, and all other amounts payable and computations made hereunder based on the number of Rentable Square Feet in the Premises shall be adjusted (upward or downward, as the case may be) to reflect such measurement and
(b) being 
  

 4 

Table of Contents

 
reduced by five percent (5%) or more, then the cost of such measurement shall be paid by Landlord, in all other cases by Tenant. 

3. Term 

(a) The Term of this Lease shall commence on the Commencement Date, and shall end on the Expiration Date, unless the Term shall sooner
terminate pursuant to any of the terms of this Lease or pursuant to law or shall be extended pursuant to the renewal terms set forth on Exhibit G. Within ten (10) days following the Commencement Date, Tenant shall execute and deliver to
Landlord duplicate originals of a stipulation in the form attached to this Lease as Exhibit I (with the blanks properly completed, to the extent possible). Subject to Landlord’s reasonable approval of the information inserted by Tenant
in the blanks, Landlord shall execute the duplicate originals of the stipulation and shall promptly return one (1) fully executed original to Tenant. 

(b) Tenant shall be granted access to the Premises when the Premises are Ready for Occupancy in order to install Tenant’s furniture,
fixtures and equipment. “Ready for Occupancy” shall mean that (i) Landlord’s Work is sufficiently complete so as to allow Tenant to occupy the Premises for the use and purposes intended without unreasonable disturbance or
interruption as reasonably determined by the Landlord and Tenant and (ii) a certificate of occupancy (which may be temporary in nature) or its equivalent has been issued for the Premises. In the event Landlord is unable to deliver
possession of the Premises to Tenant on or before January 1, 2011, then Tenant shall be entitled to one (1) day of free Basic Rent for each calendar day occurring between January 2, 2011 and the date Landlord delivers
possession.
 4. Rent 

(a) Tenant shall pay to Landlord without notice or demand or set-off, in lawful money of the United States of America at the office of
Landlord or at such other place as Landlord may designate, Rent as follows: 
 (i) Basic Rent, which shall be payable in advance
in monthly installments beginning on the Rent Commencement Date and continuing on the first day of each calendar month thereafter during the Term; and 

(ii) Additional Rent, which shall be payable within the time limitations elsewhere provided in this Lease, or if no such time limit is
elsewhere provided, within fifteen (15) days after receipt of notice from Landlord as to the amount due and payable, beginning on the Commencement Date. 

The Basic Rent together with Additional Rent shall constitute the “contract rent”, as such term is used in N.C.G.S. §
42-34(b). 
 (b) Notwithstanding and not to the exclusion of any other remedies for Tenant’s default, if any installment of
Basic Rent or Additional Rent payable under Paragraph 5(c) remains unpaid for a period of five (5) days after such installment shall have become due, or if any payment of Additional Rent (other than that payable under Paragraph 5(c)) remains
unpaid for a period of fifteen (15) days after such installment or payment shall have become due, Tenant shall pay interest thereon at a rate equal to the lesser of 2% per annum above the prime rate as announced by Bank of America, N.A.,
or its successors, or the maximum contractual rate permitted by applicable North Carolina law, from the date on which such installment or payment is due to the date of payment thereof. Such interest shall be deemed Additional Rent. If the Rent
Commencement Date shall occur on a day other than the first day of a calendar month, the monthly installment of Basic Rent and any monthly installment of Additional Rent payable under Paragraph 5(c) for the unexpired portion of the month in which
the Rent Commencement Date occurs shall be prorated on the basis of the actual number of calendar days in such month. 
  

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 5. Operating Expense Payments 

(a) Subject to Paragraph 5(e), if Operating Expenses payable in any calendar year falling wholly or partially within the Term shall be in
such amount as shall constitute an increase above the Base Factor, Tenant shall pay as Additional Rent for such calendar year Tenant’s Operating Payment. Tenant acknowledges and agrees that upon verification of the Base Factor, Tenant shall pay
with the next scheduled payment of Basic Rent, the retroactive amounts owed to Landlord for 2013 based on the actual Base Factor. 

(b) Notwithstanding any other provision contained herein to the contrary, if the Building is not fully occupied during any calendar year
or if the entire Building is not provided with complete building standard services during any calendar year, then for purposes of the computation of Tenant’s Operating Payment, each component of Operating Expenses which are
“variable”, may be computed for such year as though 100% of the entire Building had been fully occupied and provided with complete building standard services during such year and the adjusted amount of such “variable” Operating
Expenses shall be used in determining Operating Expenses for each calendar year, including the calendar year 2012. Such adjustment shall not, however, result in Landlord receiving from Tenant and other tenants in connection with such
“variable” Operating Expenses more than 100% of the cost of such “variable” Operating Expenses. Operating Expenses which are “variable” shall include those expenses that vary based upon occupancy levels and shall not
include such expenses as are fixed, including, but not limited to, expenses related to the common areas including electrical power, landscaping, and janitorial expenses, management fees, taxes and insurance, on-site labor and maintenance contracts.

 (c) Landlord may, with respect to any calendar year, furnish to Tenant an estimate of Tenant’s
Operating Payment for such year, and upon receipt of such estimate, Tenant will thereafter pay to Landlord on the first
(1st) day of each month during such year an amount
equal to one-twelfth of such estimate. Landlord may revise such estimate from time to time twice per year. Until such estimate has been furnished to Tenant relative to any calendar year, Tenant shall pay to Landlord, on the first day of each month
during such year, an amount equal to one-twelfth of the Tenant’s Operating Payment for the previous calendar year. On or before April 30 of each calendar year, Landlord shall furnish Tenant with a reconciliation statement, with reasonable
supporting documentation (i.e., a worksheet that lists all relevant Operating Expenses), setting forth the Tenant’s Operating Payment for such prior calendar year and the amounts paid to date by Tenant on account thereof. Any additional
amount payable as Tenant’s Operating Payment as set forth on such statement shall be payable within thirty (30) days after Tenant’s receipt of such statement, and the amount of any overpayment by Tenant shall be applied to the next
month’s installment of Tenant’s Operating Payment then due, with the residual, if any, refunded by Landlord to Tenant within thirty (30) days after delivery of such statement. 

(d) Any Additional Rent payable by Tenant pursuant to this Paragraph 5 shall be collectible by Landlord in the same manner as Basic Rent.

 (e) If the Commencement Date or the Expiration Date shall occur on a date other than January 1 or December 31,
respectively, Tenant’s Operating Payment for the calendar year in which the Commencement Date or Expiration Date shall occur, as the case may be, shall be prorated based upon the actual number of days in the particular calendar year. In no
event shall Basic Rent ever be reduced by operation of this Paragraph 5. The rights and obligations of Landlord and Tenant under the provisions of this Paragraph 5 with respect to any Additional Rent shall survive the Expiration Date or any sooner
termination of the Term. 
 (f) Landlord has advised Tenant that presently Progress Energy (the “Electric Service
Provider”) is the utility company selected by Landlord to provide electricity service for the Building. Notwithstanding the foregoing, if permitted by applicable law, Landlord shall have the right at any time and from time to time during the
Term to either contract for service from a different company or companies providing electricity service (each such company being hereinafter referred to as an “Alternative Service Provider”) or continue to contract for service from the
Electric Service Provider; provided, however, before contracting with an Alternative Service Provider, Landlord shall use good faith efforts to ensure that such provider’s rates shall be customary and in line

  

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with rates for the Raleigh/Durham market area. In the event that Landlord shall contract with an Alternate Service Provider during the Term, Landlord shall reimburse Tenant for any losses, costs
or charges incurred by Tenant directly related to any interruption in service arising from such change. Tenant shall cooperate with Landlord, the Electric Service Provider, and any Alternative Service Provider at all times and, as reasonably
necessary, shall allow Landlord, Electric Service Provider, and any Alternative Service Provider reasonable access to the Building’s electric lines, feeders, risers, wiring, and any other machinery within the Premises. Except as otherwise
provided for herein, unless due to Landlord, its agents or employee’s negligence or willful misconduct, Landlord shall in no way be liable or responsible for any loss, damage, or expense that Tenant may sustain or incur by reason of any change,
failure, interference, disruption, or defect in the supply or character of the electric energy furnished to the Premises, or if the quantity or character of the electric energy supplied by the Electric Service Provider or any Alternative Service
Provider is no longer available or suitable for Tenant’s requirements, and no such change, failure, defect, unavailability, or unsuitability shall constitute an actual or constructive eviction, in whole or in part, or entitle Tenant to any
abatement or diminution of rent, or relieve Tenant from any of its obligations under the Lease. 
 (g) Tenant will be
responsible for ad valorem taxes on its personal property and on the value of the leasehold improvements in the Premises to the extent the same exceed Building Standard. 

(h) Notwithstanding anything in this Lease to the contrary, for each calendar year after the Controllable Base Year which is 2012,
Tenant’s Controllable Operating Expenses shall not exceed the Controllable Cap. The “Controllable Base Year” shall mean the total, actual Controllable Operating Expenses for the calendar year of 2012. The “Controllable Cap”
shall mean: (i) with respect to the calendar year 2013, the amount obtained by multiplying the amount of Controllable Operating Expenses for the Controllable Base Year by 1.05; and (ii) relative to each calendar year subsequent thereto,
the amount obtained by multiplying the higher of the Controllable Cap for the previous calendar year or Tenant’s actual proportionate share for the previous calendar year by 1.05, on a cumulative basis. “Controllable Operating
Expenses” shall be those expenses reasonably determined by Landlord to be within its control with respect to price and not set or determined by a governmental agency or other third party. 

(i) Landlord shall maintain complete and accurate records of all expenses incurred in the operation of the Building and the furnishing of
services to tenants, including those which Landlord intends to include in Operating Expenses. Landlord’s records of its Operating Expenses shall be kept using accounting practices consistently maintained on a year-to-year basis, in accordance
with good accounting practices, consistently applied and shall be made available to Tenant once per year at any reasonable time, within one year (1) year after Landlord’s reconciliation statement for any given year, for inspection and
audit at Landlord’s offices at Tenant’s expense; provided that Tenant gives Landlord three (3) days prior telephonic or written notice and that the inspection rights are performed by an employee or CPA on a non-contingency basis and
the results of which are kept strictly confidential. If the audit reveals that the charges to Tenant for a particular calendar year was overstated by more than five percent (5%), the reasonable costs of the audit shall be borne by Landlord.

 6. Use 

(a) Tenant covenants that throughout the Term it will use the Premises for general, clerical, administrative, and executive offices
consistent with a first class office building in the area in which the Building is located, for research and the development and commercializing of pharmaceutical products and for no other purpose. 

(b) Subject to Landlord’s Warranties set forth on Exhibit G, Tenant, at its sole cost and expense, shall comply with all Legal
Requirements and all Insurance Requirements relating to or affecting Tenant’s use of the Premises. Without limiting the generality of the foregoing, in the event the Premises must be modified or any other action relating to the Premises must be
undertaken in the future to comply with any regulation concerning 
  

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the Americans With Disabilities Act or any similar federal, state or local statute, law, or ordinance taking effect subsequent to the Commencement Date, the responsibility for such modification
or action (including the payment of all costs incurred in connection therewith) shall belong to Tenant provided that such modification or action is solely due to Tenant’s unique use or activity in the Premises. If the Public Areas must be
modified or any other action relating to the Public Areas must be undertaken in the future to comply with the Americans With Disabilities Act or any similar federal, state or local statute, law, or ordinance and if such modification or action is
required because of (i) any special or unique use or activity in the Premises or (ii) the performance of any alterations within the Premises, the responsibility for such modification or action (including the payment of all costs incurred
in connection therewith) shall belong to Tenant. Except as provided in the immediately preceding sentence, in the event the Public Areas must be modified or any other action relating to the Public Areas must be undertaken in the future to comply
with the Americans With Disabilities Act or any similar federal, state or local statute, law, or ordinance, the responsibility for such modification or action (including the payment of all costs incurred in connection therewith, subject to the terms
and provisions of this Lease relating to the pass-through of Operating Expenses) shall belong to Landlord. 
 (c) If anything is
done, omitted to be done, or suffered to be done by Tenant, or kept or suffered by Tenant to be kept in, upon or about the Premises that shall cause the rate of fire or other insurance on the Premises or the Building procured by Landlord to be
increased, Tenant shall be provided written notice by Landlord of such rate increase (as well as the schedule referred to herein) and either (i) discontinue those activities which account for the increased rates or (ii) continue such
activities and pay the entire amount of such increase promptly upon Landlord’s demand therefor as Additional Rent. In determining whether increased premiums are a result of something done, omitted or suffered to be done or kept or suffered to
be kept in, upon or about the Premises solely by Tenant, a schedule issued by the organization computing the insurance rate for the Building showing the various components of such rate shall be conclusive evidence of the several items and charges
which make up such rate. 
 (d) Tenant shall not place a load upon any floor that exceeds the floor load per square foot that
such floor was designed to carry or violates any Legal Requirement; provided that neither the file room nor any other area approved by Landlord shall be deemed in violation of this subsection (d). All mechanical equipment and other applicable
property of Tenant in the Premises shall be placed and maintained by Tenant, at Tenant’s sole expense, in such manner as shall be sufficient, in Landlord’s reasonable judgment, to prevent vibration, noise, annoyance or inconvenience to
Landlord and the other tenants. 
 (e) Tenant shall not cause or permit any Hazardous Substance to be used, stored, generated or
disposed of on or in the Premises, the Building, or the Land in violation of any applicable law by Tenant or Tenant’s agents, employees, contractors or invitees. If Hazardous Substances are used, stored, generated or disposed of by Tenant on or
in the Premises, the Building or the Land, or if the Premises, the Building, or the Land become contaminated in any manner for which Tenant is legally liable, Tenant shall indemnify and hold harmless Landlord from any and all claims, damages, fines,
judgments, penalties, costs, liabilities or losses (including, without limitation, a decrease in value of the Building or the Land, damages due to loss or restriction of rentable or usable space, or any damages due to adverse impact on marketing of
the Building, and any and all sums paid for settlement of claims, reasonable attorneys’ fees, consultant and expert fees) arising during or after the Term and arising as a result of such contamination by Tenant. This indemnification includes,
without limitation, any and all costs incurred due to any investigation of the site or any cleanup, removal or restoration mandated by a federal, state or local agency or political subdivision, and shall expressly survive expiration or termination
of this Lease. Without limitation of the foregoing, if Tenant causes or permits the presence of any Hazardous Substance on the Premises, the Building or the Land in violation of any applicable law, and same results in contamination, Tenant shall
promptly, at its sole expense, take any and all necessary actions to return the Premises to the condition existing prior to the presence of any such Hazardous Substance on the Premises, the Building or the Land. Tenant shall first obtain
Landlord’s approval, however, for any such remedial action. 
  

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 7. Assignment, Mortgaging and Subletting 

(a) Except as otherwise set forth in this Section 7, Tenant shall not (i) wholly or partially assign or otherwise transfer this
Lease or any rights herein granted, (ii) sublet all or part of the Premises or allow the same to be used or occupied by others or in violation of Paragraph 6 hereof, or (iii) mortgage, pledge, or encumber this Lease or all or any part of
the Premises in any manner by reason of any act or omission on the part of Tenant, without the prior written consent of Landlord in each instance, which consent shall not be unreasonably withheld, delayed or conditioned. If Tenant or any assignee of
Tenant is a corporation or partnership, the terms “assign” and “assignment” shall, for purposes of this Lease, be deemed to include the aggregate transfer of effective control of the applicable entity and/or a majority of the
stock or partnership interest, as the case may be, of Tenant or such assignee of Tenant. Tenant shall reimburse Landlord an administrative fee of $500.00 in connection with any request by Tenant for Landlord’s consent to an assignment, sublease
or any other transfer or encumbrance as provided above in this Paragraph 7(a). Notwithstanding the foregoing, Tenant may assign or sublet all or any portion of the Premises without advance notice to Landlord (i) to an entity controlled by
Tenant or which controls Tenant, (ii) in connection with a merger or consolidation or (iii) pursuant to a sale of all or substantially all of the business and assets or stock of Tenant and any such assignment or subletting shall not be
subject to the provisions of Paragraph 7(d) below. 
 (b) If this Lease is assigned, whether or not in violation of the terms of
this Lease, Landlord may collect rent from the assignee with written notice. If the Premises or any part thereof be sublet or be used or occupied by any person other than Tenant, whether or not in violation of this Lease, Landlord may, after default
by Tenant and expiration of Tenant’s time to cure such default, if any, collect rent from the subtenant or occupant. In either event, Landlord may apply the net amount collected to the Rent herein reserved. The consent by Landlord to an
assignment, transfer, encumbering or subletting pursuant to any provision of this Lease shall not in any way be considered to relieve Tenant from obtaining the express prior consent of Landlord to any other or further assignment, transfer,
encumbering or subletting. Neither any assignment of this Lease nor any subletting, occupancy or use of the Premises or any part thereof by any person other than Tenant, nor any collection of rent by Landlord from any person other than Tenant, nor
any application of any Rent as provided in this Paragraph 7 shall, under any circumstances be deemed a waiver of any of the provisions of Paragraph 7(a) hereof, or relieve, impair, release, or discharge Tenant of its obligations fully to perform the
terms of this Lease on Tenant’s part to be performed, and Tenant shall remain fully and primarily liable therefor. 
 (c)
No assignment (whether or not consented to by Landlord) shall be valid unless, within ten (10) days after the execution thereof, Tenant shall deliver to Landlord a duplicate original instrument of assignment and assumption in form and substance
reasonably satisfactory to Landlord, duly executed by Tenant and by the assignee, pursuant to which such assignee shall assume performance of all terms of this Lease on Tenant’s part to be performed. 

(d) Except as otherwise provided for in Paragraph 7(a) above, in the event of any assignment, sale or other transfer of Tenant’s
interest in this Lease or subletting of the Premises (in whole or in part), whether consented to by Landlord or not, Tenant shall pay to Landlord one-half of any and all consideration, money or items of value received by Tenant or payable to Tenant
less any costs incurred by Tenant in connection with such assignment, subletting or other transaction that is in excess of rental payable by Tenant hereunder (computed on a per rentable square foot basis). 

8. Repairs 

Provided Tenant has received written notice from Landlord of the need for repair, replacement or alteration and reasonable time to
effectuate the same, Tenant shall pay to Landlord, promptly upon demand, all reasonable costs and expenses incurred by Landlord in connection with all repairs, replacements and alterations to the Premises and the Building whether such repairs,
replacements, and alterations are interior or exterior, structural, or otherwise, ordinary or extraordinary, the need for which arises out of (i) the installation, use, operation, or existence of Tenant’s alterations (other than
Landlord’s Work) or personal property, or the moving 
  

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of the same in or out of the Building or the Premises by Tenant or any of its subtenants, or any of such parties’ employees, agents, contractors, licensees or invitees or (ii) the acts,
omissions or negligence of Tenant or any of its subtenants, or any of such parties’ employees, agents, contractors, licensees or invitees, but excluding such repairs, replacements or alterations attributable to Landlord, its agents and
employees. Tenant, at its sole cost and expense, shall promptly replace scratched, damaged or broken doors and glass in and about the Premises and shall be responsible for all repairs and maintenance of wall and floor coverings in the Premises,
normal wear and tear, acts of Landlord, its agents and employees and casualty excluded. 
 9. Access 

(a) Except in the event of emergency, Landlord or its representatives or designees may enter the Premises at all reasonable times, with
twenty four hours notice to Tenant and accompanied by a representative of Tenant, to inspect the Premises, to enforce any provisions of this Lease, to make or cause to be made such repairs as Landlord may deem necessary or desirable, to cure any
uncured defaults of Tenant notice and cure periods have expired and pursuant to the rights granted Landlord under this Lease, to repair any utility lines or systems servicing other parts of the Building, to rectify any condition in the Premises
adversely affecting other occupants of the Building, or, upon prior reasonable notice to Tenant, to exhibit the Premises to others during the last nine (9) months of the Term (as same may be extended from time to time). If Tenant, its agents or
employees shall not elect to be present or shall not permit an entry into the Premises at any time when such entry shall be permissible, or in the case of an emergency, Landlord may use a master key (or master code, card or switch if Tenant’s
security system is other than conventional locks and keys), or, solely in the event of an emergency, forcibly enter the Premises. 

(b) Landlord has installed, and shall be entitled to expand, at any time during the Term, and from time to time, a card access system or
other similar access system (the “Access System”) regulating access to and from the Building or the Premises or both. Tenant shall be permitted to tie Tenant’s access system control box and panels (“Access Equipment”) to the
existing Access System in order to program access cards (or other access devices) to the Building and the Premises (if applicable) for its employees. Landlord shall install, in connection with Landlord’s Work, at Tenant’s sole cost and
expense (subject, however, to reimbursement from the Upfit Allowance), such connections as are required to permit Tenant to tie its Access Equipment to the Access System. Except for a reasonable number of access devices for issuance to guests and
visitors, in no event shall Tenant produce or issue more access devices to the Building and the Premises (if applicable) than the number of full-time employees, contractors or agents Tenant has working in the Premises at any time. Landlord, at
Tenant’s sole cost and expense, shall provide Tenant with a reasonable number of unprogrammed access devices, which Tenant may program for use by its full-time employees, contractors or agents as provided in the immediately preceding sentence.
Tenant shall obtain additional unprogrammed access devices only from Landlord, and all access devices obtained by Tenant during the Term and the Access System control box shall be returned to Landlord immediately upon the expiration or earlier
termination of the Term. Tenant shall pay to Landlord (as Additional Rent), within thirty (30) days after Tenant receives an invoice therefor, Ten and No/100 Dollars ($10.00) for each unprogrammed access device obtained by Tenant during the
Term that is not returned to Landlord immediately upon the expiration or earlier termination of the Term as provided above in this Paragraph 9. At the expiration or termination of this Lease, Tenant shall not be required to remove, or to pay
for the removal of, the Access Equipment which if remaining on the Premises at such time shall become the property of Landlord. 

10. Common Facilities/Landlord’s Maintenance 

(a) Landlord shall have the right at any time, without the same constituting an eviction and without incurring liability to Tenant
therefor, to change the arrangement and/or location of the Public Areas, provided such changes do not materially interfere with or adversely impact Tenant’s access to the Building, or Tenant’s use of the Premises or materially diminish
Tenant’s proportionate share of parking spaces set forth in Paragraph 2. The Public Areas shall at all times be maintained by Landlord in good condition comparable to other similar buildings in the market area and be subject to the exclusive
control and management of Landlord. Tenant shall 
  

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share pro-rata with other tenants of the Building any reduction in Operating Expenses attributable to any such change to the arrangement and/or location of the Public Areas. 

(b) Except for the obligations of Tenant as set forth herein, Landlord shall repair, replace, manage, insure and maintain the Building as
follows which shall in all ways be commensurate with comparable class A buildings in the RTP, Raleigh area taking into account the location, age quality and fit up of the Premises: 

(i) Landlord shall purchase all standard supplies and materials used and labor charges incurred, in performing its duties hereunder
related to the operation, maintenance, decoration, repairing, and cleaning of the Building. 
 (ii) Landlord shall purchase such
insurance coverage for the Building as Landlord shall deem in its discretion desirable, which insurance may include casualty, rental abatement, and liability insurance no less than full replacement cost of Building. 

(iii) Landlord shall perform all repairs, replacements and general maintenance to the Building, structural or non-structural, including
without limitation the roof and mechanical, electrical and heating, ventilating and air-conditioning equipment and/or systems, in a manner consistent with other comparable office buildings in the market area (provided, however, Tenant shall be
responsible for the maintenance, repair and replacement, such that the Premises remains at all times in good and tenantable condition, of the non-structural portions of the Premises, of any alterations, additions, changes or other improvements to
the Premises constructed by Tenant and of any mechanical, electrical, heating, ventilating, air-conditioning and other systems and equipment which serve the Premises exclusively). 

(iv) Landlord shall provide for the removal of trash, rubbish, garbage, and other refuse from the Building, as well as removal of ice and
snow from the sidewalks on or adjacent to the Land. 
 (v) Landlord shall provide janitorial service, including service to areas
of the Building leased to tenants, as more particularly set forth in Paragraph 11 below. 
 The cost of performance of such obligations of
Landlord shall be paid from the Operating Expenses collected from Tenant and the other tenants of the Building. 
 11.
Utilities and Services 
 (a) Except as otherwise provided herein, Landlord shall maintain and operate the heating,
ventilating and air-conditioning systems and shall furnish heat and air-conditioning to the Premises during Business Hours at temperatures customary and usual for similar office space in the RTP, Raleigh market area, except to the extent reduced
service is required by any governmental body. 
 (b) If Tenant requests heating, ventilating, or air-conditioning services
during other than Business Hours, Landlord shall make the same available to Tenant in accordance with such request, provided that Tenant shall pay to Landlord, as Additional Rent, Landlord’s charges therefor, which must approximate actual
electricity cost plus a reasonable allowance for equipment wear and tear and overhead and in no event constitute a profit to Landlord. 

(c) Notwithstanding the foregoing provisions of this Paragraph 11, Landlord shall not be responsible if the normal operation of the
Building heating, ventilating and air-conditioning system shall fail to provide conditioned air at reasonable temperatures, pressures or degrees of humidity or in reasonable volumes or velocities in any portion of the Premises (i) which shall
have an electrical load in excess of six (6) watts per square foot of usable area of the Premises for all purposes (including lighting and power), or which shall have a human occupancy factor in excess of one person per 100 square feet of
usable area of the Premises (i.e., the 
  

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average electrical load and human occupancy factors for which such system is designed), or (ii) because of any rearrangement of partitioning or other improvements, alterations, changes,
additions or use of the Premises by Tenant which directly impact such systems ability to provide such reasonable temperatures. Tenant shall cooperate fully with Landlord at all times and abide by all regulations and requirements which Landlord may
reasonably prescribe for the proper functioning and protection of the heating, ventilating, and air-conditioning system. 
 (d)
Landlord shall provide elevator service during Business Hours with and without card access and shall have at least one passenger elevator subject to call at all other times with card access. 

(e) Landlord shall provide such janitorial services to the Premises after normal business hours consistent with those services currently
being provided to the Building, a schedule for which shall be furnished to Tenant upon request. 
 (f) Landlord shall furnish
water to each floor on which the Premises are located for normal drinking, lavatory, and cleaning purposes. 
 (g) Landlord
shall furnish electrical energy reasonably required, subject to the provisions herein, in connection with Tenant’s use and occupancy of the Premises for the operation of such lighting, electrical appliances and equipment as Tenant shall require
in connection with its business operations and Use as described in Section 6. As part of this subsection (g), Landlord shall provide such electrical energy as required to accommodate Tenant’s server room, which shall be located within the
Premises as mutually agreed by Landlord and Tenant. Tenant shall cause the server room to be separately metered and Landlord shall bill Tenant for the actual electricity cost for the server room on a monthly basis. 

(h) Other than Tenant’s electrical use associated with Tenant’s server room described in subsection (g) above, Tenant
covenants that at no time shall the use of electrical energy in the Premises exceed six (6) watts per square foot of usable area (consisting of 5.5.0 watts per square foot for lighting and 0.5 watts per square foot for power (i.e.,
electric outlets)). Tenant shall not, without the prior consent of Landlord, (i) make or perform, or permit the making or performing of, any alteration to wiring installations or other electrical facilities in or serving the Premises or any
additions to the electrical fixtures other than the initial improvements to the Premises; or (ii) install and/or use business machines, office equipment, or other appliances in the Premises which utilize electrical energy other than small
business machines normally used in Tenant’s business operations and consistent with Tenant’s Use described in Section 6. Should Landlord grant such consent, all additional risers or other equipment required therefor, including,
without limitation, air-conditioning equipment, unless otherwise required by Landlord, shall be provided by Landlord and the reasonable cost thereof shall be paid by Tenant within fifteen (15) days after being billed therefor. Landlord may
grant such consent subject to such terms and conditions as are necessary in the opinion of the Landlord to ensure that Landlord will be reimbursed by Tenant as applicable for Landlord’s installation of any relevant alterations, wiring,
fixtures, appliances, or equipment, as well as Landlord’s provision of any additional electrical service. 
 (i) Landlord
reserves the right to stop, interrupt or reduce the level of services required of Landlord under this Lease, whenever and for so long as may be necessary, by reason of accidents, emergencies, introduction of foreign substances, laws, regulations,
controls, or guidelines, strikes, maintenance, repairs or changes which Landlord is required by this Lease or by law to make or in good faith deems necessary, or by reason of difficulty in securing proper supplies of fuel, water, electricity, or
labor, or by reason of any other cause beyond Landlord’s reasonable control. In each instance, Landlord shall exercise reasonable diligence to eliminate the cause of stoppage and to effect restoration of service and shall give Tenant reasonable
notice, when practicable, of the commencement and anticipated duration of such stoppage, interruption or reduction in service. Tenant shall not be entitled to any diminution or abatement of Rent or other compensation by reason of any such stoppage,
interruption or reduction unless resulting from Landlord’s wrongful acts or gross negligence. 
  

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Notwithstanding the foregoing, in the event Tenant’s ability to conduct its business operations is materially impacted by a service interruption and Landlord has failed to commence repair
within three (3) days of such interruption, Tenant shall be entitled to undertake necessary repairs, the cost of which Landlord shall pay to Tenant upon demand therefor. 

12. Alterations. 

(a) Tenant shall make no improvements, alterations, changes, or additions to the Premises, other than those which are cosmetic in nature
and the costs of which do not exceed $25,000.00 for which Landlord consent is expressly not required, without the prior written consent of Landlord, not to be unreasonably withheld, delayed or conditioned. As to any such permitted, cosmetic
improvements, alterations, changes, or additions, Tenant shall provide Landlord with notice of such alterations along with a copy of plans related thereto. For any alterations for which Landlord consent is required hereunder, Tenant shall provide
Landlord working drawings for Landlord’s review and approval thereof. Landlord shall provide Tenant with any comments to such working drawings within fifteen (15) days of Landlord’s receipt of same, provided such deadline is clearly
noted on Tenant’s requesting cover letter. Tenant shall reimburse Landlord for all reasonable expenses incurred by Landlord in connection with approving and inspecting said improvements, alterations, changes or additions, including
Landlord’s reasonable and actual legal fees, if any, and an administrative fee of $500.00. 
 (b) All alterations,
additions or improvements (excluding, however, any trade fixtures of Tenant) made by, for, or at the direction of Tenant shall, when made, become the property of Landlord, at Landlord’s sole election, and shall, unless otherwise specified by
Landlord at the time Landlord gives its consent thereto or within thirty (30) days of notice of any alteration not requiring Landlord’s consent, remain upon the Premises at the expiration or earlier termination of this Lease. 

(c) Tenant shall cause no damage to the Premises and the Building from removal of Tenant’s personal property from the Building. Any
such damage or injury to the Premises and the Building shall be promptly repaired by Tenant at its sole cost and expense. Any personal property of Tenant not removed by Tenant prior to the Expiration Date or date of sooner termination of this Lease
shall, at Landlord’s option, either become the property of Landlord or shall be disposed of or stored by Landlord at Tenant’s risk and expense. 

(d) No approval of plans or specifications by Landlord or consent by Landlord allowing Tenant to make improvements, alterations, changes
or additions to the Premises shall in any way be deemed to be an agreement by Landlord that the contemplated work complies with any Legal Requirements or Insurance Requirements, or the certificate of occupancy for the Building, or deemed to be a
waiver by Landlord of any of the provisions of this Lease. Tenant shall construct all approved improvements, alterations, changes or additions in a good and workmanlike manner, free of all defects and in compliance with all Legal Requirements and
Insurance Requirements. Tenant is not acting as an agent for Landlord and neither Landlord, Landlord’s agents, nor the holder of any mortgage on the Land and Building shall be liable for any labor or materials furnished or to be furnished to
Tenant upon credit, and no mechanic’s or materialman’s or other liens for such labor or materials shall attach to or affect any estate or interest of Landlord or any other such party in and to the Premises, the Land and the Building.
Tenant shall not permit any mechanic’s or materialmen’s lien to attach, be placed or filed against the Premises, the Building or the Land arising out of such work prosecuted under the Work Letter Agreement or this Paragraph 12; and if such
a lien is filed, Tenant shall satisfy, bond off, or otherwise cause such lien to be cancelled or discharged immediately. Tenant agrees that any damage to the Premises caused by Tenant’s Work shall be repaired at Tenant’s sole cost and
expense. No later than thirty (30) days after completion of any work in the Premises by Tenant (including, but not limited to, the addition of equipment, cables or any material that must be inspected), Tenant shall provide to Landlord
(i) an affidavit from the general contractor performing the work that same has been substantially completed in accordance with the approved plans and specifications and that all mechanics and materialmen in

  

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connection therewith have been paid in full; (ii) a waiver of lien with respect to such construction work executed by the general contractor and each subcontractor, except as to any
contractor for which Tenant has obtained a bond to pay any claims by such persons; and (iii) a certificate of occupancy from the applicable governmental authorities evidencing completion of such work in accordance all applicable laws, codes and
ordinances. In the event a certificate of occupancy cannot be obtained for the Premises due to any action or inaction by Tenant, Tenant shall be in default hereunder and must immediately comply with any and all requirements to obtain a certificate
of occupancy. 
 13. Insurance. 

(a) Tenant shall, during the Term and during any period (if any) of rent abatement or period of occupancy prior to the Commencement Date,
at its sole cost and expense, obtain, maintain and keep in full force and effect, with Landlord and the holder of any mortgage or deed of trust (if Tenant has been notified of the name of such holder) on the Land and Building named as additional
insureds therein or as their respective interests may appear, as appropriate, the following insurance: 
 (i) hazard insurance,
including extended coverage, vandalism and malicious mischief, upon property owned by Tenant or anyone claiming through or under Tenant and located in the Building, or for which Tenant is legally liable, or which was installed by or on behalf of
Tenant or anyone claiming through or under Tenant, including, without limitation, Tenant’s personal property and all other improvements, alterations, changes and additions, in an amount not less than the full insurable value thereof;

 (ii) commercial general liability insurance (occurrence coverage), to include personal injury, bodily injury, broad form
property damage, operations hazard, contractual liability and products and completed operations liability in combined single limits not less than $2,000,000 inclusive; and 

(iii) worker’s compensation in no less than statutory limits and employer’s liability insurance in limits of $1,000,000 each
Accident/$1,000,000 by Disease-Policy Limit/$1,000,000 by Disease-Each Employee. 
 (b) All policies shall be taken out with
insurers whose AM Best rating is no less than A-X and in form that is consistent with and available in the commercial insurance marketplace at the current time. Tenant agrees that certificates of insurance will be delivered to Landlord as soon as
practicable after the placing of the required insurance. All policies shall contain an undertaking by the insurers to notify Landlord in writing not less than 30 days prior to any material change or reduction in coverage or cancellation or
termination thereof. 
 (c) In the event of damage to or destruction of the Premises and the termination of this Lease as
provided for pursuant to Paragraph 15 hereof, Tenant shall pay to Landlord all of its insurance proceeds relating to any improvements, alterations, changes and additions made by Tenant to the Premises, except for any such proceeds paid on
(i) items installed by Tenant and which Landlord has agreed may be removed from the Premises upon the expiration of the Term, and (ii) any personal property of Tenant (iii) any above standard building improvements Tenant’s
insurance has been paying for. 
 (d) Landlord shall not carry insurance of any kind on any improvements, alterations, changes
or additions made by Tenant to the Premises or on any of Tenant’s personal property, and Landlord shall not be obligated to repair any damage thereto or replace the same. 

(e) Any policy or policies of hazard, extended coverage, or similar casualty insurance which either party obtains in connection with the
Premises or Building shall include a clause or endorsement denying the insurer any rights of subrogation against the other party to the extent rights have been waived by the insured prior 

 

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to the occurrence of injury or loss. Tenant and Landlord waive any rights of recovery against the other for injury or loss due to hazards covered by the hazard insurance that either party is
required to maintain hereunder or otherwise elects to maintain, but only to the extent of the injury or loss covered thereby. 

(f) Landlord shall carry (i) hazard insurance covering full replacement cost of the Building (exclusive of foundations and footings)
and (ii) commercial general liability insurance (occurrence coverage) with limits of not less than $10,000,000.00 at all times. 

14. Non-Liability and Indemnification 

(a) Unless caused by Landlord’s gross negligence or intentional misconduct, or that of Landlord’s employees, agents or
contractors, Tenant shall indemnify and hold harmless Landlord and its agents from and against any and all claims for damage to the person or property of anyone or any entity arising from Tenant’s negligent use of the Premises, or from any
negligence or intentional misconduct of Tenant in or about the Premises or elsewhere, and shall further indemnify and hold harmless Landlord from and against any and all claims, costs, and expenses arising from any breach or default in the
performance of any obligation on Tenant’s part to be performed under the terms of this Lease, or arising from any other negligent act or omission of Tenant or any of Tenant’s agents, contractors, employees, or invitees, and from and
against all costs, reasonable attorney’s fees, expenses and liabilities incurred by Landlord as the result of any such use, breach, default, misconduct or negligence, and in dealing reasonably therewith, including, but not limited to, the
defense or pursuit of any claim or any action or proceeding involved therein; and in case any action or proceeding be brought against Landlord by reason of any such matter, Tenant upon notice from Landlord shall defend the same at Tenant’s
expense by counsel reasonably satisfactory to Landlord and Landlord shall cooperate with Tenant in such defense. Landlord need not have first paid any such claim in order to be so indemnified. This indemnity shall expressly survive expiration or
termination of this Lease. Tenant, as a material part of the consideration to Landlord, hereby assumes all risk of damage to property of Tenant or injury to person, in, upon, or about the Premises arising from any cause, except for the negligence or
intentional misconduct of Landlord, its agents, employees and contractors, and Tenant hereby waives all claims in respect thereof against Landlord. 

(b) Unless caused by Tenant’s gross negligence or intentional misconduct, or that of Tenant’s agents, employees, or
contractors, Landlord shall indemnify and hold harmless Tenant and its agents from and against any and all claims for damage to the person or property of anyone or any entity arising from Landlord’s negligent operation of the Building, or from
any negligence or intentional misconduct of Landlord in or about the Building, and shall further indemnify and hold harmless Tenant from and against any and all claims, costs, and expenses arising from any breach or default in the performance of any
obligation on Landlord’s part to be performed under the terms of this Lease, or arising from any other negligent act or omission of Landlord or any of Landlord’s agents, contractors or employees, and from and against all costs, reasonable
attorney’s fees, expenses and liabilities incurred by Tenant as the result of any such use, breach, default, misconduct, or negligence, and in dealing reasonably therewith, including, but not limited to, the defense or pursuit of any claim or
any action or proceeding involved therein; and in case any action or proceeding be brought against Tenant by reason of any such matter, Landlord upon notice from Tenant shall defend the same at Landlord’s expense by counsel reasonably
satisfactory to Tenant and Tenant shall cooperate with Landlord in such defense. Tenant need not have first paid any such claim in order to be so indemnified. This indemnity shall expressly survive expiration or termination of this Lease.

 15. Casualty Damage 

(a) Tenant shall give immediate notice (by telephone, confirmed in writing) to Landlord of any damage caused to the Premises by fire or
other casualty, and if neither party elects to terminate this Lease as provided in Paragraph 15(b), Landlord shall proceed with reasonable diligence and at its sole cost and expense to repair and restore the Premises (other than any improvements
beyond the initial Tenant Improvements , alterations, changes and additions to the Premises performed by Tenant and any personal property of Tenant) to substantially the same condition as immediately prior to said damage or destruction. 

 

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 (b) If (i) the Building or the Premises shall be destroyed or substantially damaged by
a casualty not covered by Landlord’s insurance; or (ii) 25% or more of the Premises is damaged or rendered untenantable by a casualty covered by Landlord’s insurance; or (iii) the Premises are not affected but 25% of the Building
or such portion of the Public Areas as shall render the Premises or the Building untenantable is damaged or rendered untenantable, then in any such event either Landlord or Tenant may elect to terminate this Lease. Any party so electing to terminate
this Lease shall provide the non-terminating party written notice of such election within ninety (90) days after the occurrence of such casualty. If such notice of termination shall be given, this Lease shall terminate as of the date provided
in such notice of termination (whether or not the Term shall have commenced) with the same effect as if that date were the Expiration Date. If neither party shall elect to terminate this Lease, Landlord shall commence to repair and reconstruct the
Building and/or the Premises (subject to the limitations set forth in Paragraph 15(a) above), provided, however, in the event such repair or reconstruction is not complete within one hundred eighty (180) days of such damage or casualty, then
Tenant shall have the right upon notice to Landlord to terminate this Lease. 
 (c) If the Premises are damaged and the Lease is
not terminated pursuant to Paragraph 15(b), the Basic Rent and the Additional Rent payable pursuant to Paragraph 4 hereof shall be abated in proportion to the degree in which Tenant’s ability to use the Premises is impaired during the period of
any damage, repair or restoration provided for in this Paragraph 15 (i.e., until such time as Landlord has satisfied its restoration obligations under this Paragraph 15). Except for such abatement, Tenant shall not be entitled to any
compensation or damage for loss in the use of the whole or any part of the Premises and/or any inconvenience or annoyance occasioned by damage, destruction, repair or restoration. 

16. Eminent Domain 

(a) Subject to the rights of Landlord to relocate Tenant pursuant to Paragraph 27(n), if the whole or any portion of the Premises shall
be acquired or condemned by eminent domain for any public or quasi-public use or purpose, this Lease shall terminate as of the date of the vesting or acquisition of title in the condemning authority with the same effect as if said date were the
Expiration Date. In addition, if the whole or any portion of the Building other than the Premises shall be acquired or condemned by eminent domain for any public or quasi-public use or purpose, this Lease shall, at the option of Landlord, terminate
as of the date of the vesting or acquisition of title in such condemning authority with the same effect as if such date were the Expiration Date. 

(b) The proceeds of any condemnation award shall be the property of Landlord, whether such award is compensation for damages to
Landlord’s or Tenant’s interest in the Premises, and Tenant hereby assigns all of its interest in any such award to Landlord; provided, however, that Landlord shall have no interest in any award made to Tenant for loss of business,
relocation expenses, or for the taking of Tenant’s personal property if a separate award for such items is made to Tenant. 

17. Events of Default. The occurrence of any one or more of the following events shall constitute a material default of this Lease
by Tenant: 
 (a) The failure by Tenant to make any payment on or before the due date of (i) Basic Rent and such payment
shall not have been received by Landlord by the sixth day following such due date or (ii) Additional Rent payable in monthly installments pursuant to Paragraph 5(c) hereof, provided such default is not remedied within five (5) days of
Landlord providing Tenant written notice of such default. 
 (b) The failure by Tenant to make any payment of Additional Rent
(other than pursuant to Paragraph 5(c) hereof) or any other payment required to be made by Tenant hereunder other than that described in Paragraph 17(a), as and when due, where such failure shall continue for a period of twenty (20) days after
written notice thereof from Landlord to Tenant. If Landlord serves Tenant with a Notice to Pay Additional Rent 
  

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or Quit, such Notice to Pay Additional Rent or Quit shall also constitute the notice required by this Paragraph 17(b). 

(c) The failure of Tenant to execute the documents contemplated in Paragraphs 20(b) or 27(e) hereof, and such failure shall continue for
a period of ten (10) days after written notice thereof from Landlord to Tenant. 
 (d) The failure by Tenant to observe or
perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Tenant other than those referenced above, where such failure shall continue for a period of thirty (30) days after written notice thereof from
Landlord to Tenant; provided, however, that if the nature of Tenant’s noncompliance is such that more than thirty (30) days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commenced such
cure within said thirty (30) day period and thereafter diligently pursues such cure to completion. To the extent permitted by law, such thirty (30) day notice shall constitute the sole and exclusive notice required to be given to Tenant
under applicable statutes. 
 (e) (i) The making by Tenant of any general arrangement or general assignment for the benefit of
creditors; (ii) Tenant becoming a “debtor” as defined in 11 U.S.C. §101 or any successor statute thereto (unless, in the case of a petition filed against Tenant, the same is dismissed within sixty (60) days); (iii) the
appointment of a trustee or receiver to take possession of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease; or (iv) the attachment, execution, or other judicial seizure of
substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease, where such seizure is not discharged within thirty (30) days. 

(f) The discovery by Landlord that any financial statement given to Landlord by Tenant, by Tenant’s successor in interest, or by any
guarantor of Tenant’s obligations hereunder was materially false when presented to Landlord. 
 18. Landlord’s
Remedies. In the event of any material default or breach of this Lease by Tenant, Landlord may at any time thereafter, without further notice or demand and without limiting Landlord in the exercise of any right or remedy which Landlord may have
by reason of such default: 
 (a) Terminate this Lease or terminate Tenant’s right to possession of the Premises, and in
either event, accelerate all obligations of Tenant owed Landlord under the Lease throughout the remainder of the Term such that all such obligations are immediately due and payable, and force Tenant to immediately surrender the Premises to Landlord.
Tenant agrees to pay to Landlord on demand the costs which Landlord may suffer by reason of such termination including, but not limited to, the cost of recovering possession of the Premises. Immediately upon any termination Landlord shall be
entitled to recover from Tenant all outstanding and unpaid Rent as of the date of such termination and all future Rent due using a customary and reasonable present value formula; and/or 

(b) Pursuant to judicial process, enter upon and take possession of the Premises and expel or remove Tenant and any other person who may
be present, by reasonable force if necessary (to the extent allowed by law), without terminating the Lease or being liable for prosecution or any claim for damages, and, if Landlord so elects, relet the Premises on such terms as Landlord may
determine and receive from Tenant any difference between the aggregate rentals to be collected under such replacement lease during the remainder of the Term and the aggregate rentals payable under this Lease for the remainder of the Term (discounted
using a customary and reasonable present value formula). Tenant agrees to pay to Landlord on demand any such deficiency that may arise by reason of such reletting and any and all costs (including, without limitation, any reasonable costs of
upfitting the Premises for any replacement tenant and any applicable brokerage commissions) expended by Landlord in connection with such reletting; and/or 
  

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 (c) Pursuant to judicial process, enter the Premises at any time to cure any default without
thereby incurring any liability to Tenant or anyone claiming through or under Tenant. Any expenses incurred by Landlord in connection with any such performance or involved in collecting or endeavoring to collect rent or enforcing or endeavoring to
enforce any rights against Tenant under or in connection with this Lease or pursuant to law shall be paid by Tenant as Additional Rent on demand; and/or 

(d) Pursue any other remedies now or hereafter available to Landlord under applicable laws or judicial decisions and/or under this Lease.

 The remedies provided under this Paragraph 18 are non-exclusive and may be combined with other remedies hereunder available
to Landlord for Tenant’s material default or breach hereunder. 
 19. Landlord’s Defaults. Landlord shall not
be in default under this Lease unless Landlord fails to perform obligations required of Landlord within thirty (30) days after written notice by Tenant to Landlord (and Tenant shall use reasonable efforts to provide such notice to the holder of
any first mortgage or deed of trust covering the Premises whose name and address shall have theretofore been furnished to Tenant in writing), specifying wherein Landlord has failed to perform such obligation; provided, however, that if the nature of
Landlord’s obligation is such that more than thirty (30) days are required for performance, then Landlord shall not be in default if Landlord commences performance within such 30-day period and thereafter diligently pursues the same to
completion. Tenant shall have the right to cure any such failure by Landlord to perform its obligations as set forth herein and Landlord shall reimburse Tenant for actual and reasonable expenses incurred in connection with such cure of
Landlord’s default. 
 20. Subordination and Attornment. 

(a) This Lease shall be automatically subordinate to any ground lease, mortgage, deed of trust, or any other hypothecation or security
now or hereafter placed upon the Premises and to any and all advances made on the security thereof and to all renewals, modifications, consolidations, replacements and extensions thereof. Notwithstanding the foregoing, if any mortgagee, trustee or
ground lessor shall elect to have this Lease prior to the lien of such mortgage, deed of trust, or ground lease, and shall give written notice thereof to Tenant, this Lease shall be deemed prior to such mortgage, deed of trust, or ground lease,
whether this Lease is dated prior or subsequent to the date of said mortgage, deed of trust, or ground lease or the date of recording thereof. 

(b) Tenant agrees, upon the request of Landlord, to execute any reasonable documents required to effectuate an attornment or a
subordination, or to make this Lease prior to the lien of any mortgage, deed of trust, or ground lease, as the case may be, provided such mortgagee, deed of trust beneficiary or ground lessor agrees, in writing, not to disturb Tenant in its use and
enjoyment of the Premises for the remainder of the Term, , including any renewals properly exercised, as long as Tenant is not in default under this Lease beyond any applicable cure period. Tenant’s failure to execute such documents within
twenty (20) days after written demand shall constitute a material default by Tenant hereunder without further notice to Tenant. 

(c) Landlord shall use its best efforts to obtain from any existing lender within thirty (30) days of the Effective Date (and as to
any future lender within thirty (30) days of Tenant’s request therefore), a written subordination/attornment agreement agreeing not to disturb Tenant in its in its use and enjoyment of the Premises for the remainder of the Term, including
any renewals properly exercised, as long as Tenant is not in default under this Lease beyond any applicable cure period. 
 21.
Surrender. On the Expiration Date or upon the sooner termination of this Lease or upon re-entry by Landlord upon the Premises in accordance with Section 18, Tenant shall surrender, vacate,

  

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and deliver to Landlord the Premises, including all improvements, additions, alterations, and replacements thereon, “broom clean” and in good order, condition and repair except for
ordinary wear, tear, and damage by fire or other casualty and the acts of Landlord, its agents and employees. If the Premises are not surrendered upon the expiration or termination of this Lease, Tenant hereby indemnifies Landlord against liability
resulting from delay by Tenant in so surrendering the Premises, including any claims made by any succeeding tenant or prospective tenant founded upon such delay. Tenant’s obligations under this Paragraph 21 shall survive the termination of this
Lease. 
 22. Holding Over. If Tenant shall hold over the Premises after the expiration or earlier termination of the
Term, then Tenant waives all notice to quit and agrees to pay Landlord for the period that Tenant is in possession after the Expiration Date or earlier termination date, monthly rent which is one hundred twenty five percent (125%) of the Rent
applicable to the last full month of the Term. Tenant expressly agrees to hold Landlord harmless from all direct loss and damages which Landlord may suffer in defense of claims by any parties against Landlord arising out of the holding over by
Tenant, including, without limitation, reasonable attorneys’ fees which may be incurred by Landlord in defense of such claims. Acceptance of Rent by Landlord subsequent to the Expiration Date or earlier termination of this Lease shall not
constitute consent to any holding over. Landlord shall have the right to apply all payments received after the Expiration Date or earlier termination of this Lease toward payment for use and occupancy of the Premises subsequent to the Expiration
Date or earlier termination of this Lease and toward any other sums owed by Tenant to Landlord. 
 23. Quiet Enjoyment.
Tenant, if and so long as it pays the Rent and performs and observes the other terms and covenants as provided in this Lease, shall have the peaceable and quiet possession of the Premises during the Term free of the claims of Landlord or anyone
claiming by, through or under Landlord, subject to the terms of this Lease and any ground lease, mortgage or deed of trust as set forth in Paragraph 20 hereof. This covenant shall be construed as a covenant running with the land and shall not be
construed as a personal covenant or obligation of Landlord. 
 24. Security Deposit. Tenant shall deposit with Landlord
simultaneously with the execution of this Lease, the amount stipulated in Paragraph 1 as a security deposit. Provided Tenant is not in default in the payment of any Rent or any other charges due Landlord and further provided the Premises are left in
the condition described in Paragraph 21 upon the Expiration Date or earlier termination of this Lease, the Security Deposit (which shall not bear interest to Tenant) shall be returned to Tenant within forty-five (45) days after the Expiration
Date or earlier termination of this Lease. If the Tenant is in default under this Lease or the Premises are not left in good condition, reasonable wear and tear accepted, then the Security Deposit shall be applied to the extent available on account
of sums due Landlord or to the cost of repairing damages to the Premises. If all or any part of the Security Deposit is applied to an obligation of the Tenant hereunder while Tenant is in possession of the Premises, Tenant shall immediately upon
request of Landlord, restore the Security Deposit to its original amount. Tenant shall not have the right to call upon Landlord to apply any or all of the Security Deposit to cure any default or fulfill any obligation of Tenant, but such use shall
be solely in the discretion of Landlord. Upon any conveyance by Landlord of its fee simple interest in the Building, the Security Deposit may be delivered by Landlord to Landlord’s grantee or transferee, and upon such delivery, Landlord shall
thereupon be released of any and all liability with respect to the Security Deposit, its application and return, and the Tenant agrees to look solely to such grantee or transferee. 

25. Rules and Regulations. Except as provided elsewhere in this Lease, Tenant and its employees, agents, invitees and licensees
shall faithfully observe and strictly comply with, and shall not permit violation of, the Rules and Regulations attached hereto as Exhibit B and incorporated herein by reference. In case of any conflict or inconsistency between the provisions
of this Lease and any Rules and Regulations, the provisions of this Lease shall control. Landlord shall have no duty or obligation to 

 

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enforce any Rule or Regulation, or any term, covenant or condition of any other lease, against any other tenant, and Landlord’s failure or refusal to enforce any Rule or Regulation or any
term, covenant or condition of any other lease against any other tenant shall not result in any liability of Landlord to Tenant. Landlord will make reasonable efforts to uniformly apply the rules and regulations consistently to all comparably sized
tenants. 
 26. Intentionally Deleted. 

27. Miscellaneous. 

(a) No agreement to accept a surrender of this Lease or possession of the Premises shall be valid unless in writing signed by Landlord.
The delivery of keys or possession to Landlord or any agent or employee of Landlord shall not operate as a termination of this Lease or a surrender of the Premises. 

(b) No provision of this Lease shall be deemed to have been waived by Landlord or Tenant unless such waiver be in writing signed by the
party making such waiver. The failure of Landlord or Tenant to seek redress for violation of, or to insist upon the strict performance of, any covenant or condition of this Lease, shall not be deemed a waiver thereof or prevent a subsequent act,
which would have originally constituted a violation, from having all the force and effect of an original violation. 
 (c) The
receipt by Landlord of Rent with knowledge of the breach of any covenant, warranty, or obligation by Tenant contained in this Lease shall not be deemed a waiver of such breach. No payment by Tenant or receipt by Landlord of a lesser amount than the
Basic Rent herein stipulated shall be deemed to be other than on account of the earliest Basic Rent reserved hereby which is due and owing at the time such payment is received by Landlord. No payment by Tenant or receipt by Landlord of a lesser
amount than the Additional Rent herein stipulated shall be deemed to be other than on account of the earliest Additional Rent reserved hereby which is due and owing at the time such payment is received by Landlord. No endorsement or statement on any
check or any letter accompanying any check or payment of any such Rent shall be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to remedies provided in this Lease. If Tenant
is in arrears in payment of Rent, Tenant waives Tenant’s right, if any, to designate the items against which any payments made by Tenant are to be credited, irrespective of and notwithstanding any designation or requests by Tenant as to the
items against which any such payments shall be credited. 
 (d) This Lease and all attachments and exhibits hereto contain the
entire agreement between the parties, and no agreement, representation or inducement shall be effective to change, modify or terminate this Lease in whole or in part unless such agreement, representation or inducement is in writing and signed by
both parties hereto. 
 (e) Tenant at any time or from time to time at the request of Landlord or at the request of the holder
of any ground lease, mortgage or deed of trust referred to in Paragraph 20 hereof, shall execute, acknowledge and deliver to the party so requesting, a certificate by Tenant, certifying (i) that this Lease has not been modified, changed,
altered or amended in any respect and is in full force and effect (or, if there have been modifications, stating the modifications and that the Lease is in full force and effect as modified); (ii) that this Lease is the only Lease between
Landlord and Tenant affecting the Premises (or specifying any other leases); (iii) that Tenant has accepted the Premises (or a part thereof), is in occupancy of the Premises (or a part thereof) and is paying all Rent hereunder, for which it is
then liable on a current basis; (iv) that there are then existing no credits, offsets or defenses against the enforcement of any provisions of this Lease (or, if any of same exist, specifying the same); (v) the dates, if any, to which the
Rent or other charges due hereunder have been paid in advance and that there has been no prepayment of Rent other than as provided for in this Lease; (vi) that there are no known existing defaults

  

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by Landlord or Tenant under this Lease (or, if any such default exists, specifying such default); (vii) whether or not Tenant has exercised any renewal options or other options which may be
provided in this Lease; (viii) that there are no actions, whether voluntary or otherwise, pending against Tenant under the bankruptcy laws of the United States or any insolvency laws of any state thereof; and (ix) such further information
with respect to the Lease or the Premises as Landlord, or such lessor, mortgagee or deed of trust beneficiary, may request. Any such certificate may be relied upon by any prospective purchaser of the Land and Building or of the interest of Landlord
in any part thereof, by any mortgagee or prospective mortgagee thereof, by any deed of trust beneficiary or any prospective deed of trust beneficiary thereof, by any lessor or prospective lessor thereof, by any lessee or prospective lessee thereof,
or by any prospective assignee of any mortgage or deed of trust thereof. 
 (f) If any provision of this Lease should be held to
be invalid or unenforceable, such invalid and unenforceable provisions shall be stricken and the validity and enforceability of the remaining provisions of this Lease shall not be affected thereby. 

(g) The terms, provisions and covenants contained in this Lease shall apply to, inure to the benefit of, and be binding upon the parties
hereto and their respective heirs, personal representatives, successors and permitted assigns. 
 (h) In the event of any
default or breach by Landlord with respect to any of the terms, covenants and conditions of this Lease to be observed and performed by Landlord, Tenant shall look solely to the estate and property of Landlord in the Land and Building for the
collection of any sum of money on a judgment, or for the payment or expenditure of any money under any decree of specific performance, injunctive relief or other equitable relief (or other judicial process) requiring performance by Landlord of any
obligation under this Lease. No other property or assets of the Landlord, Landlord’s agents, partners, principals (disclosed or undisclosed) or affiliates shall be subject to levy, execution or other enforcement procedure for the satisfaction
of Tenant’s remedies. 
 (i) The term “Landlord” shall mean only the owner at the time in question of the present
Landlord’s interest in the Building, and in the event of a sale or transfer of the Building (by operation of law or otherwise) the transferor shall be and hereby is automatically and entirely released and discharged, from and after the date of
such sale or transfer, of all liability in respect of the performance of any of the terms of this Lease arising from and after such date of transfer or sale on the part of Landlord thereafter to be performed. 

(j) Tenant, at its expense, may record a memorandum of the Lease; provided the memorandum contains only such information as is necessary
to provide adequate record notice of the existence of the Lease, including the parties, the term, the property involved and whether options to renew or purchase exist and Tenant shall pay all transfer taxes, recording fees and other charges in
connection with such recording. Upon a termination of the Lease, Landlord, on its own signature, may record a termination of any recorded memorandum. 

(k) Except as otherwise expressly set forth herein all notices, requests, demands, approvals or consents required hereunder or by law
shall be in writing and shall be given by personal delivery, by overnight courier service, or by mailing the same, certified or registered mail, return receipt requested, postage prepaid, addressed, if to Landlord, to Landlord’s Notice Address,
and if to Tenant, to Tenant’s Notice Address. Such notices, requests, demands, approvals or consents shall be deemed given upon such personal delivery; if sent by overnight courier service, one (1) business day after deposit with such
service; and if mailed, two (2) business days after mailing. The persons designated for the receipt of such, and the addresses to which such may be given or made by either party, may be changed or supplemented by notice given by such party to
the other and notwithstanding the preceding sentence, such notice (and therefore such new notice address) shall be effective ten (10) days after mailing or delivery. 
  

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 (l) Tenant warrants that it has not employed nor had any dealings or discussions with any
broker or agent other than Cassidy Turley in connection with the negotiation or execution of, relative to the Premises or Building, an agreement to lease, a letter of intent to lease, or this Lease. Tenant and Landlord agree to indemnify the other
and hold it harmless from and against any and all liability for commissions or other compensation or charges due to any other brokers claiming compensation through such party and all costs and expenses incurred in defense of the claim if this
warranty is breached. In the event of a suit on any such claim, Landlord shall notify and implead Tenant, or Tenant may intervene. This warranty shall survive termination or expiration of this Lease. Landlord shall pay a commission to Cassidy Turley
in accordance with a separate commission agreement. 
 (m) If Tenant is a Partnership Tenant or if Tenant’s interest in
this Lease shall be assigned (in accordance with the provisions of Paragraph 7 hereof) to a Partnership Tenant, the following provisions shall apply to such Partnership Tenant: (i) the liability of each of the parties comprising Partnership
Tenant shall be joint and several, (ii) each of the parties comprising Partnership Tenant hereby consents in advance to and agrees to be bound by, any modifications, termination, discharge, or surrender of this Lease which may hereafter be made
and by any notices, demands, requests, or other communications which may hereafter be given, by Partnership Tenant or by any of the parties comprising Partnership Tenant, (iii) any bills, statements, notices, demands, requests, or other
communications given or rendered to Partnership Tenant or to any of the parties comprising Partnership Tenant shall be deemed given or rendered to Partnership Tenant or to any of the parties comprising Partnership Tenant and shall be binding upon
Partnership Tenant and all such parties, (iv) if Partnership Tenant shall admit new partners, all such new partners shall, by their admission to Partnership Tenant, be deemed to have assumed performance of all of the terms, covenants, and
conditions of this Lease on Tenant’s part to be observed and performed, and (v) Partnership Tenant shall give prompt notice to Landlord of the admission of any such new partners. 

Similarly, if Tenant is comprised of two (2) or more individuals or if Tenant’s interest in this Lease shall be assigned (in
accordance with the provisions of Paragraph 7 hereof) to two (2) or more individuals, the following provisions shall apply: (i) the liability of each of the individuals comprising Tenant shall be joint and several, (ii) each of the
individuals comprising Tenant hereby consents in advance to and agrees to be bound by any modifications, termination, discharge, or surrender of this Lease which may hereafter be made, and by any notices, demands, requests, or other communications
which may hereafter be given, by Tenant or by any of the individuals comprising Tenant, and (iii) any bills, statements, notices, demands, requests, or other communications given or rendered to Tenant or to any of the individuals comprising
Tenant shall be deemed given or rendered to Tenant or to any of the individuals comprising Tenant, and shall be binding upon Tenant and all such individuals. 

(n) Intentionally Deleted. 

(o) This Lease shall be deemed to be made under and shall be construed in accordance with and governed by the internal laws of the State
of North Carolina, without regard to principles of conflicts of laws. 
 (p) Tenant expressly acknowledges that neither Landlord
nor Landlord’s agents has made or is making any warranties, representations, promises, or statements, except to the extent that the same are expressly set forth in this Lease, that Tenant, in executing and delivering this Lease, is not relying
upon any such warranties, representations, promises, or statements, and that no rights, easements, or licenses are or shall be acquired by Tenant by implication or otherwise unless expressly set forth in this Lease. 

 

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 (q) Intentionally Deleted. 

(r) During the Term, should a real estate investment trust become Landlord hereunder, all provisions of this Lease shall remain in full
force and effect except as modified by this Paragraph 27(r). If Landlord in good faith determines that its status as a real estate investment trust under the provisions of the Internal Revenue Code of 1986, as heretofore or hereafter amended, will
be jeopardized because of any provision of this Lease, Landlord may request reasonable amendments to this Lease and Tenant will not unreasonably withhold, delay or defer its consent thereto, provided that such amendments do not (a) increase the
monetary obligations of Tenant pursuant to this Lease or (b) in any other manner adversely affect Tenant’s interest in the Premises. 

(s) Whenever a period of time is herein prescribed for the taking of any action by either party, the party required to take such action
shall not be liable or responsible for, and there shall be excluded from the computation of such period of time, any delays due to any Unavoidable Delay. 

(t) If, following the execution of this Lease, Tenant requests that Landlord execute any document or instrument that is other than
(i) a document or instrument the form of which is attached hereto as an exhibit, or (ii) a document that solely sets forth facts or circumstances that are then existing and reasonably ascertainable by the requested party with
respect to the lease, then Tenant shall be responsible for paying the out-of-pocket costs and expenses, including without limitation, reasonable attorneys fees, and an administrative fee of $500.00, incurred by Landlord in connection with the review
(and, if applicable, the negotiations) related to such document(s) or instrument(s), regardless of whether such document(s) or instrument(s) is (are) ever executed by Landlord. All such costs and expenses incurred by Landlord in connection with its
review and negotiation of any such document(s) or instrument(s) shall be deemed to be additional rental due hereunder and shall be payable by Tenant promptly upon demand. 

(u) Landlord and Tenant have agreed to additional terms of this Lease, which are more fully set forth on Exhibit G attached hereto
and made a part hereof. In the event of a conflict between the provisions of this Lease and the provisions of Exhibit G, the provisions of Exhibit G shall control. 

(v) Whenever a party is in default under the Lease, the non-defaulting party shall use commercially reasonable efforts to mitigate the
damages resulting from the default. 
 (w) Tenant shall have the right to file this lease with the Securities Exchange
Commission. 
 (x) “Reasonable Attorneys Fees” shall be deemed to be those fees actually charged based upon time
actually spent at customary and reasonable charges normally incurred for those type of services, as opposed to any statutory presumption which may then be in effect. 

28. Exhibits. Except as noted on the Table of Contents of this Lease, the following exhibits are attached hereto and are made a
part of this Lease as if fully set out herein: (a) description of the Premises as set forth in Exhibit A, “Description of Premises”; (b) rules and regulations governing Tenant’s occupancy of the Premises as set forth
in Exhibit B, “Rules and Regulations”; (c) upfitting obligations as set forth in Exhibit C, “Work Letter Agreement”; (d) enumerated operating expenses as set forth in Exhibit D, “Operating
Expenses”; (e) a schedule of Basic Rent as set forth in Exhibit E, “Basic Rent”; (f) (intentionally deleted); (g) other terms as set forth in Exhibit G, “Other Terms”; (h) a description of
the Land as set forth in Exhibit H, “Description of the Land”; and (i) a commencement date stipulation as set forth in Exhibit I, “Commencement Date Stipulation”. 

[SIGNATURES BEGIN ON FOLLOWING PAGE] 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Lease under seal on the day and
year first above written. 
  

							
	 LANDLORD:

	
	 BRIER CREEK CORPORATE CENTER ASSOCIATES LIMITED PARTNERSHIP,

a North Carolina limited partnership

			
		 	 By:
	 	AAC-Corporate Center Development GP, LLC, a North Carolina limited liability company, its General Partner
				
		 		 	By:	 	 /s/ Paul L. Herndon

		 		 		 	Name: Paul L. Herndon
		 		 		 	Title: Vice President
	
	 TENANT:

	
	 INSPIRE PHARMACEUTICALS, INC

a Delaware corporation

			
	By:	 		 	 /s/ Thomas R. Staab, II

	Name:	 		 	Thomas R. Staab, II
	Title:	 		 	Chief Financial Officer & Treasurer

  

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 EXHIBIT A 

DESCRIPTION OF PREMISES 
  

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 EXHIBIT B 

RULES AND REGULATIONS 

1. The Public Areas shall not be obstructed or encumbered by any tenant or used for any purpose other than ingress and egress to and from
the Premises, and no tenant shall permit any of its employees, agents, licensees or invitees to congregate or loiter in any of the Public Areas. Tenant shall not invite to, or permit to visit, the Premises persons in such numbers or under such
conditions as may interfere with the use and enjoyment by others of the Public Areas. Fire exits and stairways are for emergency use only, and they shall not be used for any other purposes by any tenant, or the employees, agents, licensees or
invitees of any tenant. Landlord reserves the right to control and operate, and to restrict and regulate the use of, the Public Areas and the public facilities, as well as other facilities furnished for the common use of the tenants, in such manner
as it deems best for the benefit of the tenants generally, including the right to allocate certain elevators for delivery service, and the right to designate which Building entrances shall be used by persons making deliveries in the Building. No
doormat of any kind whatsoever shall be placed or left in any public hall or outside any entry door of the Premises. 
 2. No
awnings or other projections shall be attached to the outside walls of the Building. No curtains, blinds, shades or screens shall be attached to or hung in, or used in connection with, any window or door of the Premises, without the consent of
Landlord. Such curtains, blinds, shades or screens must be of a quality, type, design and color, and attached in the manner, approved by Landlord. In order that the Building can and will maintain a uniform appearance to those persons outside of the
Building, each tenant occupying the perimeter areas of the Building shall (a) use only building standard lighting in areas where lighting is visible from the outside of the Building and (b) use only building standard blinds in window areas
which are visible from the outside of the Building. 
 3. No sign, insignia, advertisement, lettering, notice or other object
shall be exhibited, inscribed, painted or affixed by Tenant on any part of the outside or inside of the Premises or the Building (including, without limitation, any patios or balconies that are part of, or that are connected to, the Building) or on
doors, corridor walls, the Building directory or in the elevator cabs without the prior approval of Landlord as to size, color, style, content and location, and Tenant shall obtain all necessary approvals and permits from governmental or
quasi-governmental authorities in connection with such signs. Tenant shall submit sign drawings to Landlord for approval prior to fabrication and installation. The following submission requirements, in duplicate, constitute the minimum data
required: (i) layout, size, location and color of test; (ii) layout of additional symbols or logo; (iii) installation details; and (iv) lighting details, if applicable. Such signs shall, at the expense of Tenant, be inscribed,
painted or affixed by signmakers approved by Landlord. In the event of the violation of the foregoing by any tenant, Landlord may remove such signs without any liability, and may charge the expense incurred in such removal to the tenant or tenants
violating this rule. Only the Tenant named in the Lease shall be entitled to appear on the directory tablet. Additional names may be added in Landlord’s sole discretion under such terms and conditions as Landlord may approve. 

4. No object (including, without limitation, furniture, signs, insignia, lettering, flags, and banners) shall be placed, stored or
exhibited outside of the Premises or the Building (including, without limitation, any patios or balconies that are part of, or that are connected to, the Building) by Tenant, without the prior written consent of Landlord, which may be granted,
withheld or conditioned in Landlord’s sole and absolute discretion. 
 5. Neither the sashes, sash doors, skylights or
windows that reflect or admit light and air into the halls, passageways or other public places in the Building nor the heating, ventilating and air conditioning vents and doors shall be covered or obstructed by any tenant, nor shall any bottles,
parcels or other articles be placed on the window sills on the peripheral heating enclosures. Whenever the heating, ventilating or air conditioning systems are in operation, Tenant agrees to draw the shades, blinds or other window coverings, as
reasonably 
  

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required because of the position of the sun. Tenant shall have no right to remove or change shades, blinds, or other window-coverings within the Premises without Landlord’s consent.

 6. No showcases or other articles shall be placed by Tenant in front of or affixed to any part of the exterior of the
Building, nor placed in the Public Areas. 
 7. No acids, vapors, or other harmful materials shall be discharged, or permitted
to be discharged, into the waste lines, vents, or flues of the Building. The water and wash closets and other plumbing fixtures shall not be used for any purposes other than those for which they were designed and constructed, and no sweepings,
rubbish, rags, acids, or other foreign substances shall be thrown or deposited therein. Nothing shall be swept or thrown into the Public Areas or other areas of the Building, or into or upon any heating or ventilating vents or registers or plumbing
apparatus in the Building, or upon adjoining buildings or land or the street. The cost of repairing any damage resulting from any misuse of such fixtures, vents, registers, and apparatus and the cost of repairing any damage to the Building, or to
any facilities of the Building, or to any adjoining building or property, caused by Tenant, or the employees, agents, licensees or invitees of Tenant, shall be paid by Tenant. Any cuspidors or similar containers or receptacles shall be emptied,
cared for and cleaned by and at the expense of such tenant. 
 8. Tenant shall not mark, paint, drill into, or in any way
deface, any part of the Premises or the Building. No boring, cutting, or stringing of wires shall be permitted, except with the prior written consent of, and as directed by, Landlord. No telephone, telegraph, or other wires or instruments shall be
introduced into the Building by Tenant except in a manner approved by Landlord. Tenant shall not lay linoleum, or other similar floor covering, so that the same shall come in direct contact with the floor of the Premises, and, if linoleum or other
similar floor covering is desired to be used, an interlining of builder’s deadening felt shall be first affixed to the floor, by a paste or other material, soluble in water, the use of cement or other similar adhesive material being expressly
prohibited. 
 9. No bicycles, vehicles, animals (except seeing eye dogs), fish or birds of any kind shall be brought into, or
kept in or about, the Premises. 
 10. No noise, including, but not limited to, music, the playing of musical instruments,
recordings, radio or television, which, in the judgment of Landlord, might disturb other tenants in the Building, shall be made or permitted by Tenant. Nothing shall be done or permitted by any tenant which would impair or interfere with the use or
enjoyment by any other tenant of any other space in the Building. 
 11. Nothing shall be done or permitted in the Premises, and
nothing shall be brought into, or kept in or about the Premises, which would impair or interfere with any of the Building equipment or the services of the Building or the proper and economic heating, cleaning or other services of the Building or the
Premises, nor shall there be installed by Tenant any ventilating, air-conditioning, electrical, or other equipment of any kind which, in the judgment of Landlord, might cause any such impairment or interference. Neither Tenant, nor the employees,
agents, licensees, or invitees of Tenant, shall at any time bring or keep upon the Premises any inflammable, combustible, or explosive fluid, chemical, or substance not generally used in similar office buildings. 

12. No additional locks or bolts of any kind shall be placed upon any of the doors or windows by any tenant, nor shall any changes be
made in locks or the mechanism thereof. Duplicate keys for the Premises and toilet rooms shall be procured only from Landlord, and Landlord may make a reasonable charge therefor. Each tenant shall, upon the expiration or sooner termination of the
Lease of which these Rules and Regulations are a part, turn over to Landlord all keys to stores, offices and toilet rooms, either furnished to, or otherwise procured by, Tenant, and in the event of the loss of any keys furnished by Landlord, Tenant
shall pay to Landlord the cost of replacement locks. Notwithstanding the foregoing, Tenant may, with Landlord’s prior written 

 

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consent, install a security system on the Premises which uses master codes or cards instead of keys provided that Tenant shall provide Landlord with the master code or card for such system.

 13. All removals, or the carrying in or out of, any safes, freight, furniture, packages, boxes, crates, or any other object
or matter of any description shall take place only during such hours and in such elevators as Landlord may from time to time determine, which may involve overtime work for Landlord’s employees. Tenant shall reimburse Landlord for extra costs
incurred by Landlord including but not limited to the cost of such overtime work. Landlord reserves the right to inspect all objects and matter to be brought into the Building and to exclude from the Building all objects and matter which violate any
of these Rules and Regulations or the Lease of which these Rules and Regulations are a part. Landlord may require any person leaving the Building with any package or other object or matter to submit a pass, listing such package or object or matter,
from the tenant from whose premises the package or object or matter is being removed, but the establishment and enforcement of such requirement shall not impose any responsibility on Landlord for the protection of any tenant against the removal of
property from the premises of such tenant. Landlord shall in no way be liable to Tenant for damages or loss arising from the admission, exclusion or ejection of any person to or from the Premises or the Building under the provisions of this Rule 13
or of Rule 16 hereof. 
 14. Tenant shall not use or occupy, or permit any portion of the Premises to be used or occupied, as an
office for a public stenographer or public typist, or for the possession, storage, manufacture, or sale of narcotics or other illegal substances or as a barber, beauty, or manicure shop, telephone or telegraph agency, telephone or secretarial
service, messenger service, travel or tourist agency, retail, wholesale or discount shop for sale of merchandise, retail service shop, labor union, or for a public finance (personal loan) business, or as a hiring or employment agency, or as a stock
brokerage board room. Tenant shall not engage or pay any employee on the Premises, except those actually working for Tenant on the Premises, nor advertise for laborers giving an address at the Building. Tenant shall not use the Premises or any part
thereof, or permit the Premises or any part thereof to be used as a restaurant, shop, booth or other stand, or for the conduct of any business or occupation which predominantly involves direct patronage of the general public, or for manufacturing,
or for the sale at retail or auction of merchandise, goods, or property of any kind. 
 15. Landlord shall have the right to
prohibit any advertising or identifying sign by Tenant which, in the judgment of Landlord, tends to impair the appearance or reputation of the Building or the desirability of the Building, and upon written notice from Landlord, Tenant shall refrain
from and discontinue such advertising or identifying sign. 
 16. Landlord reserves the right to exclude from the Building at
all times other than Business Hours all persons without authorization from Tenant for admission to the Building. Each Tenant shall be responsible for all persons for whom it authorizes admission to the Building and shall be liable to the Landlord
for all acts of such person or persons. Landlord shall in no case be liable for damages for any error with regard to the admission to or exclusion from the Building of any person. Landlord reserves the right to exclude or expel from the Building any
person who, in the judgment of Landlord, is intoxicated or under the influence of liquor or drugs, or who shall in any manner do any act in violation of any of the rules and regulations of the Building. In the event of invasion, riot, public
excitement or other commotion, Landlord may prevent all access to the Building during the continuance of the same by closing the doors or otherwise, for the safety of tenants and the protection of property in the Building. 

17. Tenant, before closing and leaving the Premises at any time, shall see that all lights, typewriters, copying machines and other
electrical equipment are turned off. All entrance doors in the Premises shall be kept locked by Tenant when the Premises are not in use. Entrance doors shall not be left open at any time. 

 

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 18. Tenant shall, at its expense, provide light, power and water for the employees of
Landlord, and the agents, contractors and employees of Landlord, while performing janitorial service or other cleaning in the Premises and while making repairs or alterations in the Premises. 

19. The Premises shall not be used for lodging or sleeping or for any immoral or illegal purpose. 

20. Unless otherwise expressly provided in the Lease, Tenant shall not use, occupy or permit any portion of the Premises to be used or
occupied for the manufacture or sale of liquor. 
 21. The requirements of Tenant will be attended to only upon application at
the office of the Building. Employees of Landlord shall not perform any work or do anything outside of their regular duties, unless under special instructions from Landlord. 

22. Canvassing, soliciting, and peddling in the Building are prohibited, and Tenant shall cooperate to prevent the same. 

23. The employees, agents, licensees and invitees of Tenant shall not loiter around the Public Areas or the front, roof, or any part of
the Building used in common by other occupants of the Building. 
 24. There shall not be used in any space, or in the Public
Areas, either by Tenant or by others, in the moving or delivery or receipt of safes, freight, furniture, packages, boxes, crates, paper, office material or any other matter or thing, any hand trucks except those equipped with rubber tires, side
guards and such other safeguards as Landlord shall require. 
 25. Tenant shall not cause or permit any odor of cooking or other
processes, or any unusual or objectionable odors, to emanate from the Premises which would annoy other tenants or create a public or private nuisance. No cooking shall be done in the Premises except as is expressly permitted in the Lease of which
these Rules and Regulations are a part. 
 26. All paneling, doors, trim or other wood products not considered furniture shall
be of fire-retardant materials. Before installation of any such materials, certification of the materials’ fire-retardant characteristics shall be submitted to and approved by Landlord, and all such materials shall be installed in a manner
approved by Landlord. 
 27. Whenever Tenant shall submit to Landlord any plan, agreement, or other document for the consent or
approval of Landlord, Tenant shall pay to Landlord, on demand, a processing fee in the amount of the reasonable fees for the review thereof, including the services of any outside architect, engineer or attorney employed by Landlord to review such
plan, agreement, or document. 
 28. All employees of the Tenant will park in their assigned or designated areas, as may be
determined by Landlord from time to time. Tenant will insure that its employees are prohibited from utilizing the visitor parking areas. 

29. Landlord will direct electricians as to where and how telephone and telegraph wires are to be introduced. No boring or cutting for
wires or stringing of wires will be allowed without written consent of Landlord. The location of telephones, call boxes and other office equipment affixed to the Premises shall be subject to the approval of Landlord. All such work shall be effected
pursuant to permits issued by all applicable governmental authorities having jurisdiction. 
  

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 30. All Public Areas shall be under the sole and absolute control of Landlord, with Landlord
having the exclusive right to regulate and control these areas. Tenant agrees to conform to the rules and regulations that may be established by Landlord for these areas from time to time. 

31. Smoking is prohibited in all common areas including, without limitation, all restrooms, hallways, stairwells, elevators, lobbies,
etc. 
 32. All Tenant move-ins and move-outs will be limited to Monday through Friday: 5:30 p.m. until 6:00 a.m., or anytime on
Saturday or Sunday. Tenant must notify Landlord of moving arrangements in advance. 
 33. Landlord reserves the right to
rescind, alter, waive, or add, as to one or more or all tenants, any rule or regulation at any time prescribed for the Building when, in the judgment of Landlord, Landlord deems it necessary or desirable for the reputation, safety, character,
security, care, appearance, or interests of the Building, or the preservation of good order therein, or the operation or maintenance of the Building, or the equipment thereof, or the comfort of tenants or others in the Building. No rescission,
alteration, waiver, or addition of any rule or regulation in respect of one tenant shall operate as a rescission, alteration, or waiver in respect of any other tenant. 
  

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 EXHIBIT C 

WORK LETTER AGREEMENT 

This Work Letter Agreement (“Work Letter”) is executed simultaneously with that certain Lease (“Lease”) between
Inspire Pharmaceuticals, Inc., as Tenant, and Brier Creek Corporate Center Associates Limited Partnership, a North Carolina limited partnership, as Landlord, relating to leased premises (“Premises”) at the building commonly known as Brier
Creek Office #6 (the “Building”), which Premises are more fully identified in the Lease. Capitalized terms used herein, unless otherwise defined in this Work Letter, shall have the respective meanings ascribed to them in the Lease.

 For and in consideration of the agreement to lease the Premises and the mutual covenants contained herein and in the Lease,
Landlord and Tenant hereby agree as follows: 
 1. WORK. Landlord, at Tenant’s sole cost and expense, is obligated to
perform, or cause to be performed, Landlord’s Work (“Landlord’s Work”) relative to the initial upfit of the Premises as provided for in the Approved Landlord Plans (as defined in Paragraph 2 hereof) and upon the terms and
conditions set forth herein and shall deliver the Premises to Tenant Ready for Occupancy (as defined in Section 1 of the Lease). Subject to Tenant’s satisfaction of the conditions specified in this Work Letter Agreement, Tenant shall
receive, as a credit against the costs of Landlord’s Work payable by Tenant hereunder (including, without limitation, all architectural, engineering, design, planning, permitting, administrative and hard and soft construction costs, all of
which shall count against the Upfit Allowance), up to a maximum amount of $30.00 per square foot (the “Upfit Allowance”). Any costs of Landlord’s Work incurred by Landlord in excess of the Upfit Allowance shall be paid to Landlord by
Tenant, fifty percent (50%) of such excess costs upon the start of construction and the balance when the Premises are Ready for Occupancy, upon written demand therefore accompanied by invoices detailing the additional costs incurred. In the
event the total costs of Landlord’s Work are less than the Upfit Allowance, Tenant shall be entitled to apply the balance to any other costs associated directly with Tenant’s relocation to the Premises including Tenant’s furniture,
fixtures and equipment. 
 2. PRE-CONSTRUCTION ACTIVITIES. As used herein the term “Approved Landlord Plans” shall
mean the Landlord Plans (as hereinafter defined), as and when approved in writing by Landlord and Tenant which shall be incorporated herein and made a part hereof. As used herein, the term “Landlord Plans” shall mean the full and detailed
architectural and engineering plans and specifications covering Landlord’s Work (including, without limitation, architectural, mechanical and electrical working drawings for Landlord’s Work). As used herein, “Landlord’s
Work” shall mean the construction and installation of such improvements to the Premises as set forth in the Approved Landlord Plans. The Landlord Plans shall be subject to Landlord’s and Tenant’s approval and the approval of all local
governmental authorities requiring approval of Landlord’s Work and/or the Approved Landlord Plans. Tenant shall give its approval or disapproval (giving reasons in case of disapproval) of the Landlord Plans within ten (10) days after their
delivery to Tenant. Tenant agrees not to unreasonably withhold its approval of said Landlord Plans. If Tenant notifies Landlord that changes are required to the Landlord Plans submitted by Landlord, and if, in Landlord’s reasonable estimation,
such required changes are commercially reasonable, Landlord shall, within ten (10) business days thereafter, submit to Tenant, for its approval, the Landlord Plans amended in accordance with the changes so required. In the event that Landlord
and Tenant have not mutually approved the Landlord Plans on or before July 15, 2010, Landlord and Tenant shall meet to promptly resolve any disputes in good faith. 

3. LANDLORD’S WORK. Utilizing a general contractor (“Contractor”) selected by Tenant and reasonably approved by Landlord,
not to be unreasonably withheld or delayed, Landlord shall diligently prosecute the Landlord’s Work using materials identified in the Approved Landlord Plans, subject to compliance with all governmental laws, regulations and requirements.
Landlord shall make the Premises Ready for Occupancy (as defined in Section 3(b)) no later than December 15, 2010. Once 

 

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Landlord has notified Tenant that the Premises are Ready for Occupancy, Landlord and Tenant shall mutually agree on a punch list of items, if any, which remain to be completed and, upon mutual
agreement of the same, Landlord agrees to promptly commence and complete such items. Landlord and the Contractor shall be allowed to enter upon the Premises at any reasonable times after the Premises are Ready for Occupancy as necessary to complete
any unfinished details and the punch list, and such entry shall not constitute an actual or constructive eviction of Tenant, in whole or in part, nor shall it entitle Tenant to any abatement or diminution of rentals or relieve Tenant from any
obligation under the Lease. 
 4. TENANT’S WORK. As used herein, “Tenant’s Work” shall mean the
wiring of the Premises for Tenant’s use and occupancy and other minor “move-in” work required for Tenant’s use and occupancy of the Premises. Tenant and Tenant’s agents shall be permitted to enter the Premises upon
commencement of Landlord’s Work by the Contractor in order that Tenant may do Tenant’s Work and such other work as may be required by Tenant to make the Premises ready for Tenant’s use and occupancy. All work done in or upon the
Premises by Tenant shall be done according to the standards set forth in this Paragraph 4. 
 (a) Tenant’s Work shall
comply with all applicable statutes, ordinances, regulations, laws, codes and industry standards, including, but not limited to, requirements of Landlord’s fire insurance underwriters. 

(b) Tenant shall, at its own cost and expense, obtain all required building permits and other permits associated with Tenant’s Work,
if any. Tenant’s failure to obtain such permits shall not cause a delay in the Commencement Date or the obligation to pay Rent or any other obligations set forth in the Lease. 

(c) Tenant shall use only new, first-class materials in performing Tenant’s Work. All of Tenant’s Work shall be done in a good
and workmanlike manner. 
 (d) Without limitation of the indemnification provisions contained in the Lease, to the fullest
extent permitted by law, Tenant agrees to indemnify, protect, defend and hold harmless Landlord, the parties listed in, or required by, the Lease to be named as additional insureds, Landlord’s contractors, Landlord’s architects, and their
respective beneficiaries, partners, directors, officers, employees and agents, from and against all claims, liabilities, losses, damages and expenses of whatever nature arising out of or in connection with Tenant’s Work or the entry of Tenant
or Tenant’s contractors into the Building and the Premises, including, without limitation, mechanic’s liens, the cost of any repairs to the Premises or Building necessitated by activities of Tenant or Tenant’s contractors, bodily
injury to persons or damage to the property of Tenant, its employees, agents, invitees, licensees or others. It is understood and agreed that the foregoing indemnity shall be in addition to the insurance requirements set forth above and shall not be
in discharge of or in substitution for same or any other indemnity or insurance provision of the Lease. 
 5. DELAYS. In the
event Tenant fails to deliver or deliver in sufficient and accurate detail the information required under Paragraph 2 above on or before the respective dates specified in said Paragraph 2, or in the event Landlord, for any reason associated with
delays solely caused by Tenant or its employees, agents, contractors, subcontractors and/or licensees, fails to deliver the Premises as required in paragraph 3 hereof, Tenant shall be responsible for Rent and all other obligations set forth in the
Lease from and after the date that Landlord would have delivered the Premises but for such delays (regardless of the degree of completion of Landlord’s Work on such date), and no such delay in completion of Landlord’s Work shall relieve
Tenant of any of its obligations under the Lease. 
 6. CHANGE ORDERS. All changes to the Approved Landlord Plans requested by
Tenant must be approved by Landlord in advance of the implementation of such changes as part of Landlord’s Work. All delays caused by Tenant-initiated change orders, including, without limitation, any stoppage of work during the change order
review process, are solely the responsibility of Tenant; and, in the event of any such delays Tenant shall be responsible for Rent and all other obligations set forth in the Lease from and after the date that Landlord

  

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would have delivered the Premises to Tenant in accordance with Paragraph 3 hereof but for such delays (regardless of the degree of completion of Landlord’s Work on such date), and no such
delay in completion of Landlord’s Work shall relieve Tenant of any of its obligations under the Lease. All increases in the cost of Landlord’s Work resulting from such change orders shall be borne by Tenant. Landlord shall have no
authority to deviate from the Approved Landlord Plans in performance of Landlord’s Work except as authorized by Tenant hereunder. If required by Tenant, Landlord shall provide Tenant “as-built” drawings of Landlord’s Work within
thirty (30) days of completion thereof. 
 7. MISCELLANEOUS. 

(a) Time is of the essence of this Work Letter Agreement. 

(b) Any person signing this Work Letter Agreement on behalf of Landlord and Tenant warrants and represents he/she has authority to sign
and deliver this Work Letter Agreement and bind the party on behalf of which he/she has signed. 
 (c) If Tenant fails to make
any payment relating to Landlord’s Work as required hereunder, such failure shall also constitute a default under the Lease and Landlord shall have all the rights and remedies granted to Landlord under the Lease for nonpayment of any amounts
owed thereunder or failure by Tenant to perform its obligations thereunder, provided such default is not remedied within five (5) days of Landlord providing Tenant written notice of such default. 

(d) Notices under this Work Letter shall be given in the same manner as under the Lease. 

(e) The headings set forth herein are for convenience only. 

(f) This Work Letter, together with the applicable provisions of the Lease, sets forth the entire agreement of Tenant and Landlord
regarding Landlord’s Work and Tenant’s Work. This Work Letter may only be amended if in writing, duly executed by both Landlord and Tenant. Tenant acknowledges that Landlord’s Work consists solely of hiring a contractor and/or
designer, competitively biding the upfit contract, administering the upfit contract and coordinating completion of all punch list items and that Landlord shall manage and oversee Landlord’s Work without charge to Tenant. The Contractor and
designer shall be solely liable for all work performed. Tenant shall have the right, but not the obligation, to hire a technical expert to oversee construction of Landlord’s Work or hire Landlord directly to perform additional services.

 (g) All amounts due from Tenant hereunder shall be deemed to be Rent due under the Lease. 

(h) Landlord shall obtain from the Contactor a one year warranty, transferable to Tenant, for defective workmanship and materials.

 8. EXCULPATION OF LANDLORD. Notwithstanding anything to the contrary contained in this Work Letter Agreement, it is expressly
understood and agreed by and between the parties hereto that: 
 (a) the recourse of Tenant or its successors or assigns against
Landlord with respect to the alleged breach by or on the part of Landlord of any representation, warranty, covenant, undertaking or agreement contained in this Work Letter Agreement (collectively, “Landlord’s Work Letter
Undertakings”) shall extend only to Landlord’s interest in the Building, as same may be encumbered from time to time, and not to any other assets of Landlord or of its partners; and 

 

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 (b) except to the extent of Landlord’s interest in the Building, no personal liability
or personal responsibility of any sort with respect to any of Landlord’s Work Letter Undertakings or any alleged breach thereof is assumed by, or shall at any time be asserted or enforceable against, Landlord, its partners, Landlord’s
property managers or against any of their respective directors, officers, employees, agents, partners, beneficiaries, trustees or representatives. 
  

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 IN WITNESS WHEREOF, this Work Letter Agreement is executed as of this 28th day of June 2010.

  

							
	 LANDLORD:

	
	 BRIER CREEK CORPORATE CENTER ASSOCIATES LIMITED PARTNERSHIP,

a North Carolina limited partnership

			
		 	By:	 	AAC-Corporate Center Development GP, LLC, a North Carolina limited liability company, its General Partner
				
		 		 	By:	 	 /s/ Paul L. Herndon

		 		 		 	Name: Paul L. Herndon
		 		 		 	Title: Vice President
	
	 TENANT:

	
	 INSPIRE PHARMACEUTICALS, INC.

a Delaware corporation

			
	By:	 		 	 /s/ Thomas R. Staab, II

	Name:	 		 	Thomas R. Staab, II
	Title:	 		 	Chief Financial Officer & Treasurer

  

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 EXHIBIT D 

OPERATING EXPENSES 

(i) all supplies and materials used, and labor charges incurred, in the operation, maintenance, decoration, repairing, and cleaning of
the Building and the Public Areas; 
 (ii) cost of all equipment purchased or rented which is utilized in the performance of
Landlord’s obligations hereunder, other than in connection with the upfitting of the Premises, and the cost of maintenance and operation of any such equipment; 

(iii) cost of all management, maintenance, and service agreements for the Building and the Public Areas and the equipment therein and
thereon, including, without limitation, alarm service, security service, window cleaning, and elevator maintenance, janitorial service, and landscaping and signage maintenance; 

(iv) accounting costs, including the cost of audits by certified public accountants, and legal and engineering fees and expenses incurred
in connection with the operation and management of the Land and the Building, other than incurred in connection with the upfitting of any tenant spaces; 

(v) wages, salaries, commissions, and related expenses of all on-site agents or employees engaged in the operation, maintenance, security
and management of the Building and the Public Areas; 
 (vi) cost of all insurance coverage for the Building and the Public
Areas, including, but not limited to, the cost of casualty, rental abatement, and liability insurance applicable to the Building and the Public Areas and Landlord’s personal property used in connection therewith; 

(vii) cost of repairs, replacements and general maintenance to the Building and the Public Areas, structural or non-structural, including
without limitation the roof and mechanical, electrical and heating, ventilating and air-conditioning equipment and/or systems of the Building (excluding repairs and general maintenance paid by proceeds of insurance or by tenants or other third
parties, and alterations attributable solely to tenants), such cost to be included in Operating Expenses for the calendar year in which such cost is incurred by Landlord; 

(viii) any and all maintenance or redecoration (including repainting) of the Building and the Public Areas, and exterior and interior
landscaping; 
 (ix) cost of removal of trash, rubbish, garbage, and other refuse from the Building and the Public Areas, as
well as removal of ice and snow from the sidewalks on or adjacent to the Land; 
 (x) all supplies, tools, equipment and
materials used in the operation and maintenance of the Building and the Public Areas; 
 (xi) straight line depreciation of the
cost of any capital improvements made to the Building and the Public Areas subsequent to the Commencement Date (including, without limitation, legal, architectural and engineering fees incurred in connection therewith), but only to the extent
permitted by the definition of Operating Expenses in Paragraph 1 of the Lease. 
 (xii) all charges for gas, water, sewerage
service, and other utilities furnished to the Building and the Public Areas, to the extent not separately metered for a particular tenant premises; 
  

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 (xiii) all electricity furnished to the Building and the Public Areas, including, without
limitation, electricity furnished to individual tenants of the Building (to the extent same is not metered to a particular tenant premises), and to the machinery and equipment, including, without limitation, any heating, ventilation, and
air-conditioning equipment, used in the operation and maintenance of the Building and the Public Areas; 
 (xiv) janitorial
service, including service to areas of the Building leased to tenants; 
 (xv) every other expense which would be considered an
expense of maintaining, operating, insuring, managing, or repairing the Building and the Public Areas; 
 (xvi) management fees
payable to any managing agent of the Building and the Public Areas; 
 (xvii) the Building’s proportionate share of the
costs of leasing, operating and maintaining any on-site leasing and management office within the Development; 
 (xviii) the
Building’s proportionate share of any and all assessments and other charges payable by Landlord relative to the Development under the terms of any applicable restrictive covenants, agreements or similar documents; and 

(xix) the Building’s proportionate share of the costs of maintenance, repair, replacement and operation of any common area
improvements (including, without limitation, parking areas, parking decks, roadways, driveways, landscaped areas, utility facilities, signage and other similar or related improvements) serving the Building as well as other property within the
Development. 
  

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 EXHIBIT E 

BASIC RENT 
 Beginning
January 1, 2013 and on each subsequent January 1 during the Term (each such date being a “Basic Rent Increase Date”), Basic Rent for the following twelve month period shall be increased over the Basic Rent for the previous twelve
month period (the “Old Basic Rent”) according to the following formula: 
 Basic Rent = 1.025 x (Old Basic Rent - Base
Factor) + Base Factor 
 Landlord and Tenant hereby agree that as soon as Landlord is able to accurately calculate Basic Rent payable for
calendar year 2013, Landlord and Tenant shall enter into an agreement specifying the Basic Rent payable by Tenant under this Lease in a form substantially as set out in Exhibit E-1 attached hereto. The failure by Landlord or Tenant to execute
such agreement shall not affect Tenant’s obligation to make any payment of Rent due under this Lease. 
  

				
	 Lease Year
	  	Monthly Rent
	 January 1, 2011 – August 30, 2011
	  	$	0.00
	 September 1, 2011 – December 31, 2011
	  	$	71,423.33
	 January 1, 2012 – December 31, 2012
	  	$	73,208.97
	 January 1, 2013 – December 31, 2013
	  	 	TBD
	 January 1, 2014 – December 31, 2014
	  	 	TBD
	 January 1, 2015 – December 31, 2015
	  	 	TBD
	 January 1, 2016 – December 31, 2016
	  	 	TBD
	 January 1, 2017 – December 31, 2017
	  	 	TBD

 The actual Basic Rent
shall be determined pursuant to the formula set forth above upon verification by Landlord of the actual Base Factor. 
  

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 EXHIBIT E-1 

Basic Rent Confirmation Agreement 

This Basic Rent Confirmation Agreement made this      day of
            ,              by and between
                                         
            (the “Landlord”) and
                                         
                                         
                           (the “Tenant”). 

W I T N E S S E T H 

WHEREAS, on
                    ,             , Landlord and Tenant entered into a
Lease Agreement (the “Lease”) relating to the building and premises located at                     . 

WHEREAS, on
                    ,             , the Tenant entered the Premises (as
defined in the Lease) and therefore, pursuant to Section                      of the Lease, the term of the Lease has commenced; and

 WHEREAS, the parties desire to confirm the amount of Basic Rent to be paid by Tenant under the Lease. 

NOW THEREFORE, in consideration of the mutual covenants herein contained, Landlord and Tenant agree as follows: 

1. Basic Rent. Landlord and Tenant hereby agree that Exhibit E of the Lease is hereby amended to read as follows:

  

										
	 Period
	  	Basic Rent
PRSF	  	Annual Basic Rent	  	Basic Rent
Monthly Payment
	 January 1, 2011 – August 30, 2011
	  	 	N/A	  	 	N/A	  	 	Free
	 September 1, 2011 – December 31, 2011
	  	$	            	  	$	            	  	$	            
	 January 1, 2012 – December 31, 2012
	  	$	            	  	$	            	  	$	            
	 January 1, 2013– December 31, 2013
	  	$	            	  	$	            	  	$	            
	 January 1, 2014– December 31, 2014
	  	$	            	  	$	            	  	$	            
	 January 1, 2015– December 31, 2015
	  	$	            	  	$	            	  	$	            
	 January 1, 2016– December 31, 2016
	  	$	            	  	$	            	  	$	            
	 January 1, 2017– December 31, 2017
	  	$	            	  	$	            	  	$	            

 

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 2. No Further Amendment. Except as expressly modified herein, the Lease remains in
full force and effect and is hereby ratified and confirmed. 
 IN WITNESS WHEREOF, Landlord and Tenant have caused this
Agreement to be duly executed on the date first written above. 
  

			
	LANDLORD:
	
	  

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	TENANT:
	
	 INSPIRE PHARMACEUTICALS, INC.

a Delaware corporation

		
	By:	 	  

	Name:	 	  

	Title:	 	  

 

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 EXHIBIT F 

INTENTIONALLY DELETED 
  

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 EXHIBIT G 

OTHER TERMS 
 1. Renewal
Option. So long as Tenant is not in default under this Lease, Tenant is hereby granted the option to renew the term of the Lease as to the entire Premises for two (2) periods (each, a “Renewal Term”) of three (3) years
each, to commence at the expiration of the initial Term or the first Renewal Term. Tenant shall exercise its option to renew by delivering written notice to Landlord six (6) months prior to the expiration of the initial Term or first Renewal
Term, time being of the essence. If notification of the exercise of this option is not so given and received, all options granted hereunder shall automatically expire. Any such renewal of this Lease shall be upon the same terms and conditions of
this Lease, except there shall be either one or no further renewal option, as applicable, and the annual Basic Rent during each Renewal Term shall be at the then prevailing Market Rate for comparable office buildings in Raleigh, North Carolina.

 The “Market Rate” means the rental rate which Landlord and a third party tenant would agree upon the renewal option, as of the
commencement date of such Renewal Term, taking into consideration the uses permitted under the Lease, the quality, size, design and location of the Premises, and the rental for the renewal of leases for comparable space located in the vicinity. The
Market Rate shall include any tenant improvements, tenant improvement allowances, abatement of rentals or concessions that are then being offered by Landlord or other property owners for space comparable to the Premises. 

In the event Tenant exercises any such Renewal Option, within sixty (60) days after commencement of each Renewal Term, Landlord shall clean the
carpet throughout the Premises and touch-up the paint on interior walls within the Premises as needed. 
 2. Right of First Refusal.
In the event Tenant is not in default of this Lease, Tenant shall be granted an ongoing right of first refusal to lease contiguous and adjacent space on the third and fourth floors of the Building (the “Vacant Space”). In the event
Landlord receives an offer to lease any portion of the Vacant Space from a third party, Landlord shall so notify Tenant. Thereupon, Tenant shall, for a period of twenty (20) days following receipt of such notice, time being of the essence, have
a right and option to lease the applicable Vacant Space upon the same terms and conditions as this Lease, as the same may be equitably adjusted based on the additional square footage and the term remaining on this Lease. Upon addition of space to
the Premises pursuant to the exercise by Tenant of its option hereunder, Landlord and Tenant shall execute and deliver an amendment to this Lease confirming the same. Notwithstanding anything in this Lease to the contrary, the right of first refusal
granted to Tenant pursuant to this paragraph is not applicable during the final twelve (12) months of the initial Term or any Renewal Term, unless Tenant has exercised its Renewal Term, in which event, this right of first refusal shall not be
applicable during the last twelve (12) months of the Renewal Term. If notification of the exercise of this option by Tenant is not given and received as set forth above, Landlord shall be permitted to lease the Vacant Space to any third party.

 Notwithstanding the forgoing, Landlord hereby agrees that it will not actively market or lease to any party other than Tenant, the fourth
floor contiguous space for a period beginning on the Effective Date and expiring on June 15, 2012. 
 3. Signage.
Tenant may install, at Tenant’s request and sole expense, up to two (2) exterior building façade signs at a location on the Building to be mutually acceptable to both Landlord and Tenant. The design of such exterior signs shall be
designated by Tenant and subject to Landlord’s consent, not to be unreasonably withheld, and all restrictions and applicable ordinances as well as the architectural review 

 

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committee for Brier Creek. Tenant acknowledges that this exterior sign right is granted to Inspire Pharmaceuticals, Inc. and is specific to Inspire Pharmaceuticals, Inc In the event this Lease is
assigned or sublet, there shall be no exterior signage right for such successor tenant or subtenant; provided, however, that if the exterior sign does not require any change, as a result of a merger or successor company taking over this Lease, it
shall be permitted to remain on the Building. Tenant shall be required to remove its signs, at its sole cost and expense, and repair the Building if necessary, upon the expiration or earlier termination of this Lease. 

4. Rules and Regulations. Notwithstanding anything to the contrary set forth in the Rules and Regulations set forth on Exhibit B, as the
same may be amended from time to time, (i) Tenant may install curtains, blinds, shades or screens in connection with, any window or door of the Premises without consent of Landlord, (ii) Tenant may keep in or about the Premises, bicycles
and fish, (iii) computers may be left on before, during and after Business Hours regardless of whether or not in use, (iv) janitorial service shall be provided during Business Hours, (v) Tenant shall not be charged for the cost of
HVAC service used while Landlord, its agents, contractors or employees are performing Landlord’s Work or non-routine repair items while Tenant is not in occupancy of the Premises and (vi) Landlord shall establish a designated smoking area
outside the Building for use by Tenant’s employees, guests and invitees. 
 5. Landlord’s Warranties. Landlord
warrants that as of the Commencement Date: (i) Landlord’s Work has been substantially completed in accordance with approved plans and otherwise in a workmanlike manner, is free from any defects, and is in substantial compliance with all
applicable codes and regulations; (b) all the Premises’ mechanical systems (i.e., HVAC, etc.) are functional and in good condition; (c) the Premises are suitable for use by Tenant for its Use; (d) neither the Premises nor the
Building contains any Hazardous Substances; and (e) the Premises and the Building comply with all applicable laws and regulations, including, but not limited to, the Americans with Disabilities Act. 

6. Generator and Scissor Lift. Landlord shall install, in accordance with the terms and conditions set forth on Exhibit C and according to
the specifications set forth in the Approved Landlord Plans, at such locations shown on the map attached as an exhibit to Exhibit C, (a) a generator pad and 125KW Natural Gas Generac (277/480 voltage, 200 AMPS) and (b) a scissor lift. The
cost and expense of (i) the scissor lift and its installation and (ii) installation of the generator shall be paid by Tenant subject the Upfit Allowance. Notwithstanding the provisions of Section 12, Alterations, Landlord and
Tenant agree that the generator and the scissor lift are the personal property of Tenant, for Tenant’s sole use, and Tenant shall have the right to remove such personal property upon the expiration or earlier termination of this Lease, provided
that Tenant shall repair any damage or repair to the Premises or the Building upon the removal thereof. Landlord shall take such action as is necessary to prevent use of the scissor lift by any third party other than the contractors, agents,
employees, licensees or invitees of Tenant. The indemnity and insurance provisions of the Lease shall specifically apply to the generator area and scissor lift, regardless of whether the same is within the Premises and Tenant shall at all times be
liable and legally responsible therefor and shall indemnify Landlord for any costs, damages, loss or liability as a result of the same being placed on the Land. 
  

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 EXHIBIT H 

DESCRIPTION OF THE LAND 
 Lying
and being located in the City of Raleigh, Wake County, North Carolina and being more particularly described as follows: 
 Being all of Lot 7
containing 6.55 acres as shown on “Brier Creek Corporate Center – Parcel J Subdivision Ph.1, Open Space Ph. 2-4 & Tree Conservation Area Ph. 1-4 Plat” recorded in the Wake County Registry in Book of Maps 2008, Pages 1636-1645.

  

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 EXHIBIT I 

COMMENCEMENT DATE STIPULATION 

Pursuant to that certain Lease Agreement (the “Lease”) Brier Creek Corporate Center Associates Limited Partnership, a
North Carolina limited partnership (the “Landlord”) and Inspire Pharmaceuticals, Inc., a Delaware corporation (“Tenant”) for certain premises in the Brier Creek Office #6 Building located at 8051 Arco Corporate Drive,
Raleigh, North Carolina, Landlord and Tenant hereby stipulate and certify that: 
 1. Commencement Date. The Commencement
Date of the term of the Lease shall be at 12:01 o’clock A.M. on the      day of             , 2010. 

2. Termination Date. The Termination Date of the term of the Lease shall be at 12:00 o’clock Midnight on the
                    , 2017; provided, however, Tenant has the option to extend the term of the Lease for two additional terms of three years.

 3. Confirmation Of Square Footage. The verified square footage of the Premises is
                    . All square footage references in the Lease are hereby amended to read
“                    ” and all calculations based on the square footage are hereby amended to be calculated based on a square
footage of                     . 

4. Rent. The total monthly rent payment due under the Lease for the first year of the term is $71,423.33 (Fixed Minimum Rent is $
             and Additional Rent is $             ). Rent shall commence on
            , 2011. 
 5. Occupancy Date. Tenant
occupied the Premises on              and by execution of this agreement acknowledges that it has accepted the Premises in its “as-is” condition, Landlord’s turnover
requirements have been met and all Landlord’s Work and any other construction obligations have been completed to Tenant’s full satisfaction. 

6. Effect. This Commencement Date Acknowledgment in no way alters, modifies, or amends the Lease, and the Lease continues
uninterrupted, unabated and in full force and effect. 
 The terms and provisions of this Commencement Date Stipulation are
hereby incorporated into the Lease and modify any and all provisions to the contrary contained therein. 
  

 I 

Table of Contents

 Executed under seal as of the      day of
                    , 2010. 

TENANT: 
  

			
	INSPIRE PHARMACEUTICALS, INC.
	 a Delaware corporation

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

LANDLORD: 
  

									
	BRIER CREEK CORPORATE CENTER ASSOCIATES LIMITED PARTNERSHIP,
	 a North Carolina limited partnership
	 	
			
		 	By:	 	 AAC-Corporate Center Development GP, LLC, a

North Carolina limited liability company, its General Partner

					
		 		 	By:	 	  
	 	
		 		 	Name:	 	Paul L. Herndon	 	
		 		 	Title:	 	Vice President	 	

  

 I

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