Document:

LEASE AGREEMENT DECEMBER 17, 1992 BETWEEN REGISTRANT AND ROYAL CENTER IC, LLC

 Exhibit 10.10 
  
  
  
  
  
 LEASE 
  
 FOR 
  
 ROYAL CENTER I 
  
 LANDLORD: IMPERIAL CENTER PARTNERSHIP 
  
 TENANT: ICAgen, INC. 

 INDEX 
  

					
	Section

	  	 	  	Page

			
	1.	  	Premises	  	1
			
	2.	  	Term	  	1
			
	3.	  	Rental	  	1
			
	4.	  	Additional Rent	  	2
			
	5.	  	Use	  	2
			
	6.	  	Parking and Common Areas	  	2
			
	7.	  	Utilities	  	3
			
	8.	  	Tenant Repairs	  	3
			
	9.	  	Landlord Repairs	  	3
			
	10.	  	Signs and Advertising; Use of Name	  	4
			
	11.	  	Improvements	  	4
			
	12.	  	Fixtures & Interior Alterations	  	4
			
	13.	  	Indemnification	  	5
			
	14.	  	Tenant’s Compliance; Insurance Requirements; Waiver of Subrogation	  	5
			
	15.	  	Casualty Damage	  	6
			
	16.	  	Pass Through—Prorated Insurance Costs	  	7
			
	17.	  	Pass Through—Prorated Taxes	  	7
			
	18.	  	Pass Through—Operating Expense Charges	  	7
			
	19.	  	Accounting for Pass Through Charges	  	8
			
	20.	  	Limitation of Landlord Liability	  	8
			
	21.	  	Care of Premises	  	9
			
	22.	  	Quiet Enjoyment	  	9
			
	23.	  	Surrender; Holdover	  	9
			
	24.	  	Assignment or Subleasing	  	10
			
	25.	  	Subordination; Attornment	  	10
			
	26.	  	Default	  	10
			
	27.	  	Attorney’s Fees	  	11
			
	28.	  	Inspection	  	11
			
	29.	  	Condemnation	  	11
			
	30.	  	(Intentionally omitted)	  	N/A
			
	31.	  	Security Deposit	  	12
			
	32.	  	Notices	  	12
			
	33.	  	Hazardous Materials; Environmental Compliance	  	12
			
	34.	  	Miscellaneous	  	13
			
	35.	  	Special Conditions, Addendum One and Exhibits	  	14

			
	STATE OF NORTH CAROLINA:	 	LEASE

  
 COUNTY OF DURHAM 
  
 THIS LEASE, made as of this 17th day of December, 1992, by and between
Imperial Center Partnership, a North Carolina general partnership and Petula Associates, Ltd., an Iowa corporation, tenants in common operating as a joint venture, Imperial center, hereinafter “Landlord” and ICAgen, Inc. a North Carolina
corporation, hereinafter (whether one or more) “Tenant”; 
  
 WITNESSETH: 
  
 Upon the terms and conditions hereinafter
set forth, the Landlord leases to Tenant and Tenant leases from Landlord property hereinafter defined and referred to as the Premises, all as follows: 
  
 1.    PREMISES. The property hereby leased to Tenant is: 
  
 That area shown on Exhibit A-1 (Space Plan) consisting of approximately 7,009 square feet and located in Royal Center I, Imperial Center Business Park
with an address at 4222 Emperor Boulevard, Morrisville, North Carolina, the above-described leased property being herein referred to as the Premises, which is also indicated on Exhibit A-2 (Site Plan). 
  
 2.    TERM. The term of this Lease shall be for a period of Five (5)
years commencing the 1st day of April, 1993, and ending the 31st day of March, 1998, with such commencement date (sometimes hereinafter referred to as the “Commencement Date”) being adjusted as provided in this paragraph to the actual date
of delivery of possession. If for any reason whatsoever, Landlord cannot deliver possession of the Premises as of the commencement date, this Lease shall not be void or voidable; no obligation of Tenant shall be affected thereby; and neither
Landlord nor Landlord’s agent shall be liable to Tenant for any loss or damage resulting therefrom; provided, however, that in such event, the commencement and expiration dates of this Lease and all other dates affected thereby may be revised
by written notice from Landlord to Tenant within thirty (30) days of the originally anticipated commencement date specified above to conform all affected dates under this Lease to the date of Landlord’s delivery of possession to the Tenant.
Notwithstanding any language herein to the contrary, if possession of the premises is not delivered by June 1, 1993 (accounting nevertheless on a day-by-day basis for any delay beyond Landlord’s control or caused by Tenant), Tenant shall have
the option to terminate this Lease by written notice to Landlord, provided that such written notice shall have no effect if given after Tenant takes, or if Tenant elects to take, possession of the Premises, whereupon any and all amounts paid herein
by Tenant to Landlord shall be returned immediately and neither party shall have any further obligation to the other. If with Landlord’s prior written approval, Tenant occupies the Premises prior to the commencement date specified above, such
occupancy by Tenant shall be subject to all terms and conditions of this Lease, shall not advance the expiration date, and Tenant shall pay pro-rated rent for such period of occupancy at the initial monthly rate set forth below. 
  
 3.    RENTAL. All rent payable by Tenant shall be without previous demand
therefor by Landlord, and without setoff or deduction. The minimum rent (“Minimum Rent”) for the term shall be the sum of $138,427.75, which rent shall be payable in advance in equal monthly installments as follows: 
  

							
	 Months

	  	 Rate Per S.F.

	  	 Monthly
 Rent

	  	 Annual
 Rent

	 1-60
	  	$3.95	  	$2,307.13	  	$27,685.55

 The foregoing rent shall be payable in addition to any other sum due hereunder, including, without
limitation, additional rent or any Upfit Improvements payment due pursuant to the terms of Section 40 hereof. 
  
 Each monthly installment of rent shall be payable on or before the first day of each calendar month during the term of this Lease, unless the term
commences other than on the first day of the month, in which event rent at the above rate pro-rated until the end of that month shall be due and payable on the first day of the next calendar month. In addition to such remedies as may be provided
under the default provisions of this Lease, Landlord shall be entitled to a late charge of five (5%) percent of the amount of the monthly rent if not received by the fifth day of each calendar month, and a charge of Twenty Dollars ($20.00) or the
maximum amount allowed by law, whichever is greater, any check given by Tenant not paid when first presented by Landlord. 
  
 4.    ADDITIONAL RENT. In addition to rent, Tenant shall pay to Landlord, at the same time as monthly installment payments to rent are made, a sum
which represents Tenant’s proportionate share of insurance costs, taxes and operating expense charges owed by Tenant pursuant to the terms of Sections 16, 17 and 18 of this Lease, respectively. The actual amount of additional rent due from
Tenant shall be adjusted on an annual basis as and when the actual amount of tenant’s proportionate share of insurance costs, taxes and operating expense charges are determined, and if Tenant has underpaid, it shall on demand pay the shortfall
as a lump sum payment, and if Tenant has overpaid, Landlord shall reduce the next monthly payments of additional rent and rent for the coming year so as to credit to Tenant the amount of overpayment. Upon request of Tenant, Landlord shall provide
Tenant evidence supporting any and all amounts allocated to the Premises. 
  
 5.    USE. The Premises may be used for office, warehouse, storage, and light assembly uses and for all other legal purposes as are necessary for Tenant’s business and for no other purpose without Landlord’s
written consent first had and obtained. The Tenant shall not use or occupy nor permit the Premises to be used or occupied, nor do or permit anything to be done in or on the Premises, in a manner which may (a) make void or voidable any insurance in
force with respect thereto; (b) result in any increase in the premiums charged for warehouse insurance or cause Landlord to be unable to obtain at regular rates fire or other insurance required to be maintained; (c) cause structural damage to the
building, the Premises or any part thereof; or (d) constitute a public or private nuisance; or (e) otherwise violate any present or future laws of any governmental authority. If as a result of any act or neglect of Tenant, its employees, agents,
representatives, clients or visitors, or change in the manner in which Tenant’s business or operations are conducted at the Premises, any insurance rate shall be increased over the existing rate and assessed against Landlord, then and in that
event, Tenant shall pay to Landlord on demand the amount of such increase as additional rent. 
  
 6.    PARKING AND COMMON AREAS. For as long as Tenant affirmatively complies with the terms of this Lease, Landlord grants to Tenant, its employees and invitees, a nonexclusive right to use during
the term of this Lease, but subject to such rules and regulations as Landlord may enact in accordance with the terms hereof, the common areas generally shown on Exhibit A-2 (Site Plan) and which areas are or shall be designated by Landlord and are
acknowledged to be for use of such persons along with others similarly entitled, for parking, and for ingress and egress between the Premises and other portions of the common areas as shown on Exhibit A-2, which may include adjoining streets,
sidewalks, and highways. Tenant’s employees shall park only in areas reasonably designated from time to time by Landlord, and not in any other parking area. Landlord shall not unreasonably reduce the amount of parking available to the Premises
within walking distance therefrom. Common areas include, without limitation, parking areas and 

  

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entrances and exits thereto, driveways and truck serviceways, sidewalks, landscaped areas, and other areas and facilities provided for the common or joint
use and benefit of occupants of the Building and others, their respective employees, agents, customers and invitees. Landlord reserves the right, from time to time, to reasonably alter the common areas, to exercise control and management of the
common areas and to establish, modify, change and enforce such reasonable rules and regulations as Landlord in its discretion may deem desirable for the management of the Building, the common areas or any part thereof. In using any part of the
common areas, Tenant shall not permit anything which may impede the free flow of traffic through such common areas, endanger persons or property or encroach on the loading or unloading, service and parking areas of any other tenant. Rules and
Regulations which apply in part to Tenant’s use of the common areas are set forth in Exhibit C. 
  
 7.    UTILITIES. Tenant shall procure for its own account and shall pay all charges for water, telephone, electricity, gas, sewage, and other utilities used by Tenant at or in the Premises, and
Landlord agrees at all times to provide Tenant with access to such utilities for the purpose of Tenant maintenance, repair or replacement of such facilities or systems. Tenant shall be responsible for separate meters for all utilities used at or in
the Premises. To the extent that any service or utility used by Tenant at or in the Premises is not separately metered, Tenant agrees to pay as additional rent and as a monthly charge its “pro rata share” of the charges due for such
service or utility, unless otherwise agreed in writing by Landlord, Tenant and any other affected tenant. Tenant’s “pro-rata share” shall be determined in accordance with the terms of Section 16 for calculating the same, except that
the denominator for the computation shall be the square footage of all premises affected or served by the particular meter. 
  
 8.    TENANT REPAIRS. Tenant shall keep the non-structural components of the Premises, together with all systems, fixtures or equipment therein which
serve the Premises, including, without limitation, interior surfaces, flooring, wiring, plumbing, heating and air conditioning equipment, trade fixtures, and other facilities, systems or equipment, whether or not originally installed by Landlord or
Tenant in good condition and repair. Tenant shall be responsible for maintenance and replacement of all broken plate glass and windows (unless breakage or damage results from settling of the building or faulty initial construction undertaken by
Landlord) and of all lights and ballasts. Tenant shall maintain all lighting serving the Premises in good working order at all times during the term of this Lease. In connection with the day-to-day maintenance and repair of the heating and air
conditioning systems and equipment at the Premises, Tenant agrees to enter into and maintain (for the term of this Lease) a maintenance contract with a reputable company offering maintenance and repair services acceptable to Landlord, this contact
to be subject to the specifications set forth in Exhibit “D”. Tenant shall provide Landlord with satisfactory evidence that it has entered into and maintained the aforesaid maintenance contract upon Landlord’s request therefor.
Notwithstanding any language herein to the contrary, Tenant shall not be obligated to repair or replace any part of the Premises damaged as a result of the fault of Landlord, its employees or agents. 
  
 9.    LANDLORD REPAIRS. The Landlord shall be responsible for maintenance
of the roof and structural walls of the Premises and all other structural components of the Premises, the common areas (exclusive of any common area which Tenant is obligated to maintain hereunder) and any portion of the remainder of the building
housing the Premises which Landlord is obligated to maintain. As used herein, the term “wall” shall not include doors, windows or other components of the Premises which are not load bearing. There shall be no allowance to Tenant for a
diminution of rentals value and no liability on the part of Landlord for inconvenience, annoyance or injury to business arising from Landlord or others making any construction or repair 

  

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to the Premises, the Building, the common areas or an adjoining premises. Landlord shall not be liable to Tenant for any damage caused to Tenant and its
property due to the Premises or the Building, or any part or appurtenance thereof, being improperly constructed or being or becoming out of repair, or arising from the leaking of a pipe, facility or system for gas, water, sewage, steam, electricity
or other utility unless due to Landlord’s failure to maintain the Premises or the fault of Landlord, its employees and agents. Tenant shall immediately report to Landlord any defective condition in or about the Premises known to Tenant, and if
such defect is not so reported and such failure results in other damage, Tenant shall be liable for the same. Regardless of any obligation otherwise imposed upon Landlord, Tenant shall pay the cost of any repairs or damage resulting from the
negligence or the unlawful or willful acts of its employees, representatives or visitors. 
  
 10.    SIGNS AND ADVERTISING; USE OF NAME. Without first obtaining the prior approval of Landlord (and after submitting such design specifications as Landlord may reasonably require), Tenant shall
not permit the installation, painting and display of any sign, plaque, lettering or advertising material of any kind on or near the exterior of the Premises, or in the interior thereof that will be visible from the exterior. Any such installation of
a sign or other advertising by Tenant shall be installed in compliance with applicable law, shall be maintained by Tenant at its sole cost and expense and shall be removed by Tenant at the expiration or sooner termination of this Lease, whereupon
Tenant shall repair any damage caused to the Premises or Building by such removal. Tenant shall keep all approved signage and other material in good working order clearly illuminated during business hours. Tenant shall not have any property right or
interest in any name or distinctive designation which may become associated with the Building or the common areas of which the Building may be a part. Landlord shall retain all property rights in, and the exclusive right of use of, such name or
designation excluding Tenant’s name or any trade name, trademark or service mark of Tenant. 
  
 11.    IMPROVEMENTS. Tenant agrees to accept the Premises in the condition existing as of the date of this Lease except for any latent defects. If there are any changes to be made by Landlord, such
changes, if any, are set forth on Exhibit B, Up-fit Improvements, initialed by both Landlord and Tenant. Landlord or Landlord’s agents have made no representations or promises with respect to the Premises or the Building except as expressly set
forth herein. The taking of possession of the Premises by Tenant shall be conclusive evidence as against Tenant, that Tenant accepts the same “as is” and that the Premises and Building were in good condition at the time when possession was
taken by Tenant except for any latent defects. Landlord may at any time construct additional buildings or improvements in any part of the common areas and may remodel or remove the Building or any existing building in any part of the common areas.
Any sidewall of the Premises may be used by Landlord as a “party wall” for other buildings or improvements. However, in connection with Landlord’s construction of any additional buildings or improvements, or remodeling or removal,
Landlord shall not unreasonably interfere with Tenant’s use and occupancy of the Premises or impair Tenant’s rights under this Lease. 
  
 12.    FIXTURES & INTERIOR ALTERATIONS. The Tenant, with Landlord’s prior written consent but at Tenant’s own expense, may from time to
time during the term of this Lease make interior alterations in and to the Premises which it may deem necessary or desirable providing that in no case may it affect the structural integrity of the Premises or the Building. Any such work shall be
done in a good workmanlike manner and in accordance with applicable law and shall not result in any claim or lien against Landlord or its property. All permanent improvements or alterations shall belong to the Landlord and become a part of the
Premises upon the expiration or sooner termination of this Lease, unless Landlord requests the Tenant to remove such improvements or alterations at Tenant’s sole expense, whereupon Tenant shall 

  

 4 

 
also cause to be repaired any damage to the Premises resulting from the removal. Tenant may construct or install in the Premises, all racks, counters,
shelves, mirrors, chairs, and other trade fixtures and equipment in accordance with applicable law as may be necessary or convenient for Tenant’s business, which racks, counters, shelves, mirrors, chairs, and other trade fixtures and equipment
shall at all times be and remain the property of the Tenant, and if not then in default hereunder, the Tenant shall have the right to remove all or any part of the same from said Premises at any time within five (5) days after the expiration or
sooner termination of this Lease, provided nevertheless that Tenant shall repair any damage to the Premises resulting from installation or removal. 
  
 13.    INDEMNIFICATION. Tenant shall indemnify and hold harmless Landlord, its agents, representatives, successors or assigns, from and against any
and all losses, damages, liabilities, claims, penalties, costs or expenses (including attorney’s fees), whether caused by Tenant or by its agents, servants, employees, independent contractors or licensees, occasioned by, arising or resulting
from or growing out of (a) Tenant’s use or occupancy of the Premises, or from the conduct of Tenant’s business, or from any activity, work or things done, permitted or suffered by Tenant in or about the Premises; (b) the 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 act or omission of the Tenant; or (c) any alleged or actual violation by Tenant, its agents, servants, employees,
independent contractors or licensees of any Environmental Law (as defined below), any unsafe or improper use or storage by Tenant, its agents, servants, employees, independent contractors or licensees of any Hazardous Substance (as defined below) or
any condition created by or arising therefrom including any actual or threatened pollution or contamination at or about the Premises or the Building, whether or not due to negligence, an omission or a willful act. 
  
 The indemnification provisions contained herein shall not be deemed to be
limited by the limits of any insurance policies required under this Lease and shall survive the expiration or sooner termination of this Lease. Tenant shall defend any suit, action or proceeding commenced or brought against Landlord in connection
with any indemnity or obligation of Tenant contained in this Section 13 regardless of any alleged fault or cause and Tenant shall employ legal counsel reasonably satisfactory to Landlord to defend such suits, actions or proceedings. Tenant shall
deliver to Landlord copies of the documents served in any such suit, action or proceeding and, whenever requested by Landlord, shall advise as to the status of such suit, action or proceeding. If Tenant fails to defend diligently any such suit,
action or proceeding, or if Landlord elects to defend by written notice to Tenant at any time, Landlord shall have the right (but not the obligation) to defend the same at Tenant’s expense. Tenant shall not settle any such suit, action or
proceeding without Landlord’s prior written consent. Tenant shall give timely notice of such suit, action or proceeding and the claims thereof to Landlord and each insurer issuing an insurance policy required under this Lease. 
  
 14.    TENANT’S COMPLIANCE; INSURANCE REQUIREMENTS; WAIVER OF
SUBROGATION. Tenant shall comply with all applicable laws, ordinances and regulations affecting the Premises, including the Rules and Regulations set forth in Exhibit C and any other rules for tenants as may be developed from time to time by
Landlord and delivered to Tenant or posted on the Premises. Tenant shall maintain and care for its personal property and trade fixtures located in the Premises, insure such personal property and fixtures in all respects, and shall neither have nor
make any claim against Landlord for any loss or damage to the same, regardless of the cause therefor unless such loss or damage was due to the fault of Landlord, its employees or agents but then only to the extent that Tenant’s loss exceeds
insurance proceeds available to it. Throughout the term of this Lease, Tenant at its sole cost and expense shall keep or cause to be kept for the mutual benefit of Landlord, Landlord’s managing agent(s) Tri 

  

 5 

 
Properties, Inc. and Tenant (with appropriate cross-liability endorsements so showing) through companies licensed to do business in North Carolina having a
Best’s rating of at least AXIII (as the same may be adjusted from time to time) public liability and property damage insurance with combined single limit coverage of at least $2,000,000.00, which policies insure against all liability of Tenant,
Tenant’s authorized representatives, and anyone for whom Tenant is responsible arising out of and in connection with Tenant’s use of the Premises, and shall insure Tenant’s performance of the indemnity provisions contained herein. Not
more frequently than once each year, Landlord may require the limits to be increased if in its reasonable judgment (or that of its mortgagee) the coverage is insufficient. Prior to taking possession of the Premises and thereafter at least ten (10)
business days prior to the renewal dates hereof, Tenant shall deliver to Landlord copies of original policies or satisfactory certificates thereof. All such policies shall be non-assessable and shall contain language, to the extent obtainable, that
(a) any loss shall be payable notwithstanding any act or negligence of Landlord or Tenant that might otherwise result in forfeiture of the insurance, (b) that the policies are primary and non-contributing with any insurance that Landlord may carry,
and (c) that they cannot be cancelled or changed except after thirty (30) days’ notice to Landlord. 
  
 Provided Tenant’s insurer will issue a waiver of subrogation for Landlord’s benefit without additional charge to Tenant or if an additional
premium is due therefor at Landlord’s cost at Landlord’s election, neither Tenant, nor any person claiming through Tenant on Tenant’s behalf, shall have any claim, right of action or right of subrogation against Landlord for any loss
or damage caused by casualty at or concerning the Premises, or to Tenant’s contents, furniture, furnishings, equipment, fixture or other property at or in the Premises, whether such casualty arose from any act, fault or negligence of Landlord,
its agents, representatives, employees, or otherwise. 
  
 15.    CASUALTY DAMAGE. If the Premises, or any part thereof, shall be damaged by fire or other casualty, Tenant shall give prompt written notice thereof to Landlord. In case the Premises shall be so damaged by fire or
other casualty that substantial alteration or reconstruction of the Premises shall, in Landlord’s reasonable opinion, be required, Landlord may, at its option, terminate this Lease and the term and estate hereby granted, by notifying Tenant in
writing of such termination within thirty (30) days after the date of damage, in which event the rent and additional rent shall be abated as of the date of damage. If Landlord does not elect to terminate this Lease, Landlord shall within forty-five
(45) days after the date of such damage (if insurance proceeds are available therefor) commence to repair and restore the Premises and shall proceed to restore the Premises (except that Landlord shall not be responsible for delays beyond its
control) to substantially the same condition in which it was immediately prior to the happening of the casualty, except that Landlord shall not be required to rebuild, repair, or replace any part of Tenant’s furniture, furnishings, fixtures or
equipment removable by Tenant, and such work shall not in any event exceed the scope of the work done by Landlord in originally constructing the Premises nor shall Landlord in any event be required to spend for such work an amount in excess of the
insurance proceeds actually received by Landlord as a result of the fire or other casualty. For the period of restoration, rent and additional rent shall abate as of the date of damage, unless Tenant is able to operate its business on the Premises
during restoration whereupon rent and additional rent shall be adjusted and prorated in the proportion which the area of unusable lease space bears to the total Premises. Notwithstanding anything in this Lease to the contrary, Tenant shall have the
option to terminate this Lease within ten (10) days of the following 180 day period if the Premises are not fully restored to their original condition within 180 days after the date of damage. In any event, Landlord shall not be liable for any
inconvenience or annoyance to Tenant, injury to the business of the Tenant, loss of use of any part of the Premises by the Tenant or loss of 

  

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Tenant’s personal property resulting in any way from such damage or the repair thereof. If the Premises or any other portion of the Building are damaged
by fire or other casualty resulting from the omission, fault or negligence of Tenant or any of Tenant’s agents, employees, or invitees, rent due hereunder shall not be abated or diminished during the repair of such damage and Tenant shall be
liable to Landlord without prejudice to subrogation rights of Landlord’s insurer for the cost and expense of the repair and restoration of the Premises and Building caused thereby to the extent such cost and expense is not covered by insurance
proceeds. 
  
 16.    PASS THROUGH—PRORATED INSURANCE
COSTS. For the term of this Lease, Landlord shall keep the Building containing the Premises insured against loss or damage by fire with extended coverage endorsement in an amount sufficient to prevent the Landlord from becoming a co-insurer under
the terms of applicable policies, but, in any event, in an amount not less than ninety (90%) percent of the full insurable replacement value of the Building as determined from time to time. Tenant agrees to pay Landlord in advance monthly as
additional rent its “pro rata share” (as defined below) of the estimated premiums and costs of such Landlord insurance throughout the term of this Lease, and any renewals or extensions hereof. Tenant’s “pro rata share” of
such insurance costs shall mean that percentage found by dividing the square footage area of the Premises by the square footage of the Building(s) (in which the Premises is located) subject of the insurance. In this instance, the “pro rata
share” computation is as follows: 7,009 square feet of the Premises divided by 41,094 square feet of the Building equals 17%. This computed monthly charge estimated by Landlord shall be paid by Tenant until such time when the charge shall be
adjusted to reflect actual insurance costs for the year. If the reconciliation of the charges shows a deficiency, such deficiency shall be paid by Tenant to Landlord upon demand; if it shows a credit, the credit will be applied against Tenant’s
next rent and additional rent payments. 
  
 17.    PASS
THROUGH—PRORATED TAXES. Tenant shall pay Landlord in advance monthly as additional rent its “pro rata share” (as determined in accordance with the terms of Section 16 hereof) of any sale, use and/or occupancy tax imposed on rents
collected by Landlord (other than City, State or Federal Income Tax or successor income tax) or any tax on rents in lieu of ad valorem taxes, notwithstanding that any such tax may be levied or assessed against the Landlord. Tenant further agrees to
pay Landlord its “pro rata share” (as determined in accordance with the terms of Section 16) of ad valorem or any other property tax imposed upon the Building(s) (of which the Premises is a part) subject to the tax, regardless of the
taxing authority or authorities levying the same. Furthermore, Tenant shall make timely payments of all ad valorem taxes and assessments made against Tenant’s stock of merchandise, furniture, furnishings, trade fixtures, equipment, supplies and
other property located on or used in connection with the Premises and of all privilege and business licenses, taxes and similar charges for which Tenant may be responsible. If the assessed value of the Building in which the Premises are located is
increased by a taxing authority because of alterations or modifications to the Building made at Tenant’s request or made by Tenant, then, during the term of this Lease only, the additional taxes attributable to such increase in valuation shall
be the sole responsibility of Tenant, and shall be included monthly as additional rent to be paid by Tenant. 
  
 18.    PASS THROUGH—OPERATING EXPENSE CHARGES. Landlord will operate and maintain the common areas of the Building and related areas and facilities referred to in Section 6 above, all as shown
in Exhibit A-2 (Site Plan). For the term of this Lease or any extension hereof, Tenant shall pay Landlord as additional rent a projected sum as a common areas operating expense charge equal to forty-five cents ($.45) per square foot for each square
foot of the Premises, per annum, namely the sum of three thousand one hundred fifty-four and 05/100 ($3,154.05) Dollars which shall be due and payable in monthly installments of two hundred sixty-two 

  

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and 84/100 ($262.84) Dollars each, in advance as rent is due. In the event that the actual operating expenses for the common areas as prorated shall exceed
the projected sum shown above, Tenant shall pay its “pro rata share” (as determined in accordance with the terms of Section 16) of any such increase, as a monthly charge in advance as rent is due. If the actual operating expenses shall be
less than the projected sum, no credit shall be due to Tenant. As-used herein, The term “operating expense” shall mean and include all operating costs concerning the operation or maintenance of the common areas as determined by standard
accounting practices and shall include by way of illustration, but not limited to: common area maintenance services, labor, management fees as reasonably related to the Building, materials, supplies, equipment and tools, permits, licenses and
inspection fees. The term “operating expense” shall not include depreciation on the Building in which the Premises are located or equipment therein (except for the reasonable amortization of the costs for capital investment items which are
purchased and installed for the purpose of reducing “operating expenses” or complying with a governmental requirement), interest, executive salaries or real estate broker commissions. The annual statement of said operating expenses shall
be made available to Tenant upon Tenant’s request. 
  
 19.    ACCOUNTING FOR PASS THROUGH CHARGES. Landlord shall send to Tenant, in writing, a statement of the amount of any additional rent determined due from Tenant pursuant to Sections 16, 17 and 18 within ninety (90)
days, more or less, after the end of the year with respect to which such additional rent is due. The amount of such additional rent required to be paid pursuant to the provisions of this Lease, as well as any other sums of money or charges required
to be paid by Tenant under this Lease, whether or not the same shall be designated “additional rent” shall nevertheless, if not paid when due, be collectible as additional rent with the next installment of rent thereafter falling due.
Nothing herein contained shall be deemed to suspend or delay the payment of any amount of money or charge at the time the same becomes due and payable hereunder or otherwise limit any remedy of Landlord to collect the same. Tenant shall pay to
Landlord monthly in advance, one-twelfth (1/12) of the estimated annualized amounts shown as Tenant’s “pro rata share” of any additional rent to be paid in anticipation of increases in operating expenses and other expenses as
specified in Sections 16, 17 or 18 hereof for the then current calendar year, and all such additional monthly payments shall be credited to Tenant’s rent next due to the extent that the amount paid by Tenant exceeds the amount actually due. Any
deficiency owed by Tenant pursuant to such an accounting shall be paid by Tenant upon demand by Landlord therefor. 
  
 20.    LIMITATION OF LANDLORD LIABILITY. Tenant agrees that Landlord shall not be liable for injury to Tenant’s business or any loss of income
therefrom or for any damage to any goods, wares, merchandise, or other property of Tenant, or Tenant’s contractors, agents, employees, invitees, customers or any other person in or about the Premises, unless such damage or loss is caused by
Landlord, its agents, employees or representatives, nor shall Landlord be liable for injury to the person of the Tenant or to the Tenant’s contractors, agents, employees, invitees or customers whether such damage or injury is caused by or
results from fire, steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or other defect of pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures or from any other cause, unless such
damage or injury was due to the negligence or wilful misconduct of Landlord, its employees, agents or representatives, whether said damage or injury results from conditions arising upon the Premises or upon other portions of the Building of which
the Premises are a part, or from other sources or places, regardless of whether the cause of such damage or injury or means of repairing the same is inaccessible to Tenant. Landlord shall not be liable for any loss or damages arising from any act or
neglect of any other tenant. The term “Landlord” as used in this Lease so far as covenants or obligations on the part of Landlord are 
  

 8 

 concerned shall be limited to mean and include only the owner or owners of the Premises and Building at the time in
question, and in the event of any transfers or conveyances, the then grantor shall be automatically freed and released from and after the date of such transfer or conveyance of all liability as respects the performance of any covenant or obligation
on the part of Landlord contained in this Lease. Any covenant or obligation on the part of Landlord shall be binding on the Landlord, its successors and assigns only during and in respect to their respective successive periods of ownership.

  
 21. CARE OF PREMISES. Tenant shall at all times keep the Premises and
adjoining areas and appurtenances (subject to its reasonable control) in a clean and neat condition. Tenant covenants and agrees that Tenant, for itself, its employees, representatives and visitors, shall: 
  
 (a) Prohibit anything on the Premises and adjoining areas and appurtenances
(subject to its reasonable control) which shall endanger or cause injury to any person or property. 
  
 (b) Prohibit any excessive loads within the Premises or any part of the common areas, including parking areas. 
  
 (c) Prohibit any disturbing or offensive odors, fumes, gases, smoke, dust,
steam vapors, noise or vibrations from the Premises and adjoining areas and appurtenances (subject to its reasonable control). 
  
 (d) Keep the entryways, sidewalk and delivery and service areas clean and free from rubbish and dirt. 
  
 (e) Keep the interior free of vermin. 
  
 (f) Prohibit the use of sinks, toilets or urinals for any purpose except
that for which they are designated and installed. 
  
 (g) Store
all trash and garbage inside the Premises and provide for its prompt and regular removal for disposal outside the Building and common areas. 
  
 (h) Comply otherwise with all rules and regulations of Landlord, including those Rules and Regulations set forth in Exhibit C. 
  
 22. QUIET ENJOYMENT. Upon Tenant’s paying the rent and other sums herein reserved and
its performing the covenants and agreements hereof, Tenant shall peaceably and quietly have, hold and enjoy the Premises, and all rights, privileges, easements and appurtenances in any way appertaining thereto, during the term of this Lease.

  
 23. SURRENDER; HOLDOVER. Tenant will vacate and deliver up the Premises and
all improvements, additions and alterations thereto (except Tenant signs, equipment and trade fixtures installed by Tenant at its expense which may be removed by Tenant) at the expiration or termination of this Lease, in a good, clean and tenantable
condition as the same were at the beginning of Tenant’s occupancy, excepting reasonable wear, damage by fire and other casualty or appropriation by eminent domain. All Tenant trade fixtures and equipment necessary or convenient for
Tenant’s business which have been supplied or installed at the sole expense of Tenant, shall remain Tenant’s property. Tenant may remove its trade fixtures and equipment within five (5) days after the expiration or sooner termination of
this Lease, provided (a) Tenant is not in default hereunder; (b) removal of the Tenant item can be accomplished without mayor damage to the Premises; and (c) Tenant immediately repairs (or reimburses Landlord for the cost of repairing any resulting
damage or defacement). Otherwise, all such items shall become Landlord’s property. Upon its surrender of the Premises, Tenant agrees to provide that all entrance and exit doors are repaired and in good order, all lighting and ballast are
repaired and in good working order and all lights are replaced, as necessary and burning, in 
  

 9 

 addition to any other Tenant obligation in connection with the condition of the Premises upon surrender. 
  
 Tenant shall not acquire any right or interest in the Premises by remaining in possession
after the expiration or sooner termination of this Lease. During any such period of holding over, Tenant shall be a tenant-at-will, but nevertheless subject to and bound by all terms and conditions of this Lease except those as to term hereof and
except that during such holdover tenancy, Tenant shall pay to Landlord (a) rent at the rate equal to One Hundred Fifty Percent (150%) of that provided for in the foregoing Section 3, as such rental amount may have been increased in accordance with
the terms hereof, and (b) any and all operating expenses and all other additional rent payable hereunder. 
  
 24. ASSIGNMENT OR SUBLEASING. Tenant may not assign this Lease, or sublease the Premises, in whole or in part, without first obtaining the prior written consent of the Landlord, which consent shall not be unreasonably
withheld, accounting nevertheless for the reputation and creditworthiness of the assignee, and provided further that any such assignment or sublease consented to by the Landlord will not relieve the Tenant of its obligations for the payment of rent
and due performance of all other terms, covenants and conditions of this Lease. Any rental from a subtenant to whom Landlord consents which is in excess of the rental due hereunder shall be due and paid to Landlord as additional rent hereunder. Any
assignment or sublease to which Landlord may consent (one consent not being any basis to contend that Landlord should consent to a further change) shall not relieve Tenant of any of its obligations hereunder. In no event shall this Lease be
assignable by operation of any law, and Tenant’s rights hereunder may not become, and shall not be listed by Tenant as an asset under any bankruptcy, insolvency or reorganization proceedings. Tenant is not, may not become, and shall never
represent itself to be an agent of Landlord, and Tenant expressly recognizes that Landlord’s title is paramount, and that it can do nothing to affect or impair Landlord’s title. 
  
 25. SUBORDINATION; ATTORNMENT. Tenant agrees that this Lease will either be subordinate or superior to any mortgage or other security
instrument heretofore or hereafter executed by the Landlord covering the Premises, depending on the requirements of such mortgagee. On request, Tenant will execute such agreements making this Lease superior or subordinate as Landlord’s
mortgagee may request, and will agree to attorn to said mortgagee providing the mortgagee agrees not to disturb Tenant’s possession hereunder so long as Tenant is in compliance with this Lease. Landlord consents to Tenant’s execution of
Landlord’s mortgagee’s subordination, attornment and non-disturbance agreement, and to be bound by the provisions thereof. Further Tenant agrees to execute within five (5) days of request therefor, and as often as requested, estoppel
certificates setting forth the facts with respect to date of occupancy, termination date of this Lease, the amount of rent due and date to which rent is paid, whether or not it has any defense or offsets to the enforcement of the Lease or knowledge
of any default or breach by Landlord, and that this Lease is in full force and effect except as to any modifications or amendments, copies of which Tenant shall attach to such estoppel certificate. Tenant agrees to attorn to any successor of
Landlord. 
  
 26. DEFAULT. If Tenant: (a) fails to pay all rent as provided in
this Lease when due; (b) breaches any other agreement or obligation herein set forth; (c) files (or has filed against it) any petition or action for relief under any creditor’s law (including bankruptcy, reorganizations, or similar actions),
either in state or federal court which petition is not dismissed within sixty (60) days; (d) becomes insolvent, makes any transfer in fraud of creditors, has a receiver appointed for its assets, or makes an assignment for benefit of creditors, then
in addition to any other lawful right or remedy which it may have, Landlord, after all applicable cure periods, may do the following: (a) 
  

 10 

 declare the rent for the balance of the term immediately due and payable, and collect the same by distress or otherwise;
(b) exercise any rights provided by statute to seize personal property; (c) exercise any rights provided by statute to evict the Tenant; (d) terminate this Lease; or (e) repossess the Demised Premises, and with or without terminating, relet the same
at such amount as Landlord deems reasonable, and if the amount is less than Tenant’s rent, Tenant shall immediately pay the difference on demand to Landlord, but if in excess of Tenant’s rent, the entire amount shall belong to Landlord
free of any claim of Tenant thereto. Tenant shall have five (5) days to cure any monetary default hereunder after written notice thereof and thirty (30) days or such other period as provided hereunder, if less, to cure any non-monetary default
provided nevertheless that in no event shall Tenant’s right of cure for a non-monetary default occur more frequently than twice per calendar year (the occurrence of three (3) or more non-monetary defaults within a calendar year constituting an
event of default for which no cure right shall be available). In the event that the cure of a nonmonetary default shall reasonably require more than thirty (30) days to complete, Tenant shall not be in default as long as it immediately commences the
cure and diligently and continuously proceeds with the same in full satisfaction of the breach. All expenses of Landlord in repairing, restoring or altering the Premises or reletting, together with leasing fees, all other expenses in seeking and
obtaining a new tenant, the unamortized portion of Landlord’s upfit costs incurred in connection with this Lease and other damages and costs, shall be charged to and a liability of Tenant. Landlord’s reasonable attorneys fees in pursuing
any of the foregoing remedies, or in collecting any rents due by Tenant hereunder, shall be paid by Tenant, which fees as to rents collected shall be the amount of such rents or the actual amount of such fees and expenses but not to exceed fifteen
(15%) percent of the amount of such rents as may be allowed by law. All rights and remedies of Landlord are cumulative, and the exercise of any one shall not be an election excluding Landlord at any other time from exercising a different or
inconsistent remedy. No waiver by Landlord or any covenant or condition shall be deemed to imply or constitute a further waiver of the same at a later time, and acceptance of rent by Landlord even with knowledge of a default by Tenant shall not
constitute a waiver of such default. 
  
 27. ATTORNEY’S FEES. Provided
Landlord prevails in the litigation, Tenant hereby agrees to pay all reasonable attorney’s fees and expenses which the Landlord may incur in enforcing any of the obligations of the Tenant under this Lease, or in any litigation commenced by or
against the Tenant in which the Landlord shall be made a party. 
  
 28.
INSPECTION. Tenant agrees that the Landlord, its agents and other representatives, shall have the right upon reasonable prior notice to enter into, and upon, the Premises, or any part thereof, at all reasonable times for the purposes of inspecting
or showing the same provided that Landlord’s inspection will not unreasonably disturb the Tenant’s operations on the Premises. Prior to any inspection pursuant to this Section or Subsection 3(D), Landlord hereby agrees to execute a
reasonable confidentiality agreement if deemed necessary by Tenant. 
  
 29.
CONDEMNATION. If the Premises or any significant part of the common areas are totally taken by condemnation, this Lease shall terminate on the date of taking. If only a portion of the Premises or any significant part of the common areas is taken by
condemnation and Tenant can continue to operate its business on the remainder, then the Lease will not terminate, but rent and additional rent shall abate in a just and proportionate amount to the loss of use occasioned by the taking. Tenant shall
have no right or claim to any part of any award made to or received by the Landlord for any taking and no right or claim for any alleged value of the unexpired portion of this Lease; provided, however, that Tenant shall not be prevented from making
a claim against the condemning party (but not against Landlord) for any moving expenses, loss of profits, or taking of Tenant’s personal 
  

 11 

 property (other than its leasehold interest) to which Tenant may be entitled. 
  
 30. (Intentionally Omitted) 
  
 31. SECURITY DEPOSIT. Upon occupancy, Tenant shall deliver to Landlord the sum of Two Thousand Three Hundred Seven and 13/100
($2,307.13) Dollars which sum Landlord shall retain as security for the performance by Tenant of each of its obligations hereunder. If Tenant fails at any time to perform it obligations, Landlord may at its option apply said deposit, or so much
thereof as is required, to cure Tenant’s default. If prior to the expiration or termination of this Lease Landlord depletes said deposit in whole or in part, Tenant shall immediately restore the amount so used by Landlord. This deposit shall
not bear interest, and unless Landlord uses the same to cure a default of Tenant, or to restore the Premises to the condition that Tenant is required to leave them at the conclusion of the term, Landlord shall within thirty (30) days of the
termination or expiration of the Lease refund so much of the deposit as remains. 
  
 32. NOTICES. Any notices which Landlord or Tenant is required or desires to give the other shall be deemed sufficiently given or rendered if, in writing, is delivered personally or sent by certified or registered
mail, return receipt requested, or if an event of default is claimed, then either delivered personally or sent by certified or registered mail, postage prepaid, to the address listed after the signature of the party to be given notice, at the end of
this Lease document. Any notice given herein shall be deemed delivered when the return receipt therefore is signed, or refusal to accept the mailing by the addressee is noted thereon by the postal authorities. 
  
 33. HAZARDOUS MATERIALS; ENVIRONMENTAL COMPLIANCE. 
  
 A. Tenant’s Responsibility. Tenant shall not (either with or
without negligence) cause or permit the escape, disposal or release of any biologically active or other hazardous substances, or materials causing harm in or about the Premises. Tenant shall not allow the storage or use of said substances or
materials in any manner not sanctioned by law or by the highest standards prevailing in the industry for the storage and use of such substances or materials, nor allow to be brought into the Building or the office park as generally shown in Exhibit
A-2 any such materials or substances except to use in the ordinary course of Tenant’s business, and then only after written notice is given to Landlord of the identity of such substances or materials. Tenant covenants and agrees that the
Premises will, at all times during its use or occupancy thereof, be kept and maintained so as to comply with all now existing or hereafter enacted or issued statutes, laws, rules, ordinances, orders, permits, and regulations of all state, federal,
local, and other governmental and regulatory authorities, agencies, and bodies applicable to the Premises, pertaining to environmental matters, or regulating, prohibiting or otherwise having to do with asbestos and all other toxic, radioactive, or
hazardous wastes or materials including, but not limited to, the Federal Clean Air Act, the Federal Water Pollution Control Act, and the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as from time to time amended (all
hereafter collectively called “Laws”). 
  
 B.
Tenant’s Liability. In addition to the indemnifications contained in Section 13 hereof, Tenant shall hold Landlord free, harmless, and indemnified from any penalty, fine, claim, demand, liability, cost, or charge whatsoever which
Landlord shall incur, or which Landlord would otherwise incur, by reason of Tenant’s failure to comply with this Section 33; including, but not limited to: (i) the cost of bringing the Premises into compliance with all Laws; (ii) the reasonable
cost of all appropriate tests and examinations of the Premises to confirm that the Premises have been brought into compliance with all Laws; and (iii) the reasonable fees and expenses of Landlord’s attorneys, engineers, 
  

 12 

 and consultants incurred by Landlord in enforcing and confirming compliance with Section 33. 
  
 C. Property. For the purposes of this Section 33, the Premises shall
include the Premises identified in Section 1 above, together with the real estate covered within the Site Plan, Exhibit A-2, and all structures and improvements thereon; all personal property used in connection with the Premises (including that
owned by Tenant); and the soil, ground water, and surface water of the Premises, as this term is defined in this Subsection 33(C). 
  
 D. Inspections by Landlord. Landlord and its engineers, technicians, and consultants (collectively the “Auditors”) may, from time to time
as Landlord deems appropriate, upon reasonable prior notice conduct periodic tests and examinations (“Audits”) of the Premises to confirm and monitor Tenant’s compliance with this Section 33. Such Audits shall be conducted in such
manner as to minimize the interference with Tenant’s permitted activities on the Premises; however, in all cases, the Audits shall be of such nature and scope as shall be reasonably required by then existing technology to confirm Tenant’s
compliance with this Section 33. Tenant shall fully cooperate with Landlord and its Auditors in the conduct of such Audits. The cost of such Audits shall be paid by Landlord unless an Audit shall disclose a material failure of Tenant to comply with
this Section 33, in which case the cost of such Audit, and the cost of all subsequent Audits made during the Lease term and within thirty (30) days thereafter (not to exceed two (2) such Audits per calendar year) shall be paid for on demand by
Tenant. 
  
 E. Landlord’s Liability. Provided,
however, the foregoing covenants and undertakings of Tenant contained in this Section 33 shall not apply to condition or matter constituting a violation of any Law: (1) which existed prior to the commencement of Tenant’s use or occupancy of the
Premises and such prior condition or matter was not caused, in whole or in part, by Tenant or Tenant’s agents, employees, officers, partners, contractors, suppliers, representatives or invitees; or (ii) to the extent such violation is caused
by, or results from, the acts or neglects of Landlord or Landlord’s agents, employees, officers, partners, contractors, representatives or invitees. 
  
 F. Tenant’s Liability After Termination of Lease. The covenants contained in this Section 33 shall survive the expiration or termination of
this Lease, and shall continue for so long as Landlord and its successors and assigns may be subject to any expense, liability, charge, penalty, or obligation against which Tenant has agreed to indemnify Landlord under this Section 33. 

 
 34. MISCELLANEOUS. Headings of sections are for convenience only and shall not be
considered in construing the meaning of the contents of such sections. The invalidity of any portion of this Lease shall not have any effect on the balance hereof. Should Landlord institute any legal proceedings against Tenant for breach of any
provision herein contained, and prevail in such action, Tenant shall in addition be liable for the costs and expenses of the Landlord, including its reasonable attorney’s fees. This Lease shall be binding upon the respective parties hereto and
upon their heirs, executors, successors and assigns. This Lease supersedes and cancels all prior negotiations between the parties, and changes shall be in writing signed by the party affected by such change. Landlord reserves the right to make and
change from time to time rules it deems appropriate for the common use and benefit of all tenants, with which rules Tenant shall comply. Landlord may sell the Premises in the normal course of its business provided that such sale does not materially
affect the rights or obligations of Tenant hereunder. This Lease may not be recorded without Landlord’s prior consent, but Tenant agrees on request of Landlord to execute a memorandum hereof for recording purposes. The singular shall include
the plural, and the masculine, feminine or neuter includes the other. Each of the Landlord and Tenant respectively represent that each 
  

 13 

 has the lawful authority to enter into this Lease and by signing it in their name as set forth below, to be legally bound
in accordance with its terms and conditions. No failure by Landlord to insist upon the strict performance or observance of any term or condition of this Lease, or to seek redress or to exercise any right or remedy after any such failure or breach
hereof, shall constitute a waiver of any such term, condition, obligation, right or remedy, or any such failure or breach then or thereafter occurring. No term, condition or obligation of this Lease to be performed or observed by Tenant shall be
waived, altered or modified except by a writing executed by Landlord. No waiver of any failure, breach or default hereof shall affect or alter this Lease, but each and every term, condition and obligation of this Lease shall continue in full force
and effect with respect to any other failure, breach or default. This Lease, and the rights and obligations of each of the Landlord and Tenant hereunder shall be governed by and construed in accordance with the laws of the State of North Carolina.

  
 35. SPECIAL CONDITIONS, ADDENDUM ONE AND EXHIBITS. The following special
conditions, if any, shall apply, and where in conflict with earlier provisions in this Lease shall control. If any Lease Exhibits or Addenda are noted below, such exhibits and addenda are incorporated herein and made a part of this Lease. If there
are no special conditions, exhibits or addenda, the word NONE shall be written in the blank below. 
  

					
	Exhibit A-1	 	—	 	Space Plan
	Exhibit A-2	 	—	 	Site Plan
	Exhibit B	 	—	 	Upfit Improvements
	Exhibit C	 	—	 	Rules and Regulations
	Exhibit D	 	 —
 —
	 	Contract Standards for HVAC Inspection, Maintenance and Repair
	Exhibit E	 	—	 	Guaranty
	Exhibit F	 	—	 	Revisions to Guarani
	Addendum No. 1	 	—	 	 Section 36, Options to Renew
 Section 37, Expansion
Space
 Section 38, Buyout Provision
 Section 39, Measurement of
Premises
 Section 40, Amortization of Upfit Improvements Cost

  
 IN WITNESS
WHEREOF, Landlord and Tenant have executed this Lease by hand and under seal affixed hereto in duplicate originals, all as of the day and year first above written. 
  

									
	 	 	 	 	 LANDLORD:IMPERIAL CENTER
 BY: IMPERIAL CENTER PARTNERSHIP,
 a North Carolina general partnership (SEAL)
	 	 
					
	 	 	 	 	By:	 	/s/    SEBY B. JONES        	 	(SEAL)
	 	 	 	 	 	 	
	 	 
					
	 [Corporate Seal]
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 By:   PETULA ASSOCIATES, LTD.
	 	 
	 ATTEST:
	 	 	 	 	 	 
					
	/s/    STANLEY K. GIBSON        	 	 	 	By:	 	/s/    JON M. JACOBSON        	 	 
	
	 	 	 	 	 	
	 	 
	 STANLEY K. GIBSON
	 	 	 	 Name:
	 	 Jon M. Jacobson
	 	 
	 VICE PRESIDENT & SECRETARY
	 	 	 	 Title:
	 	 Senior Regional Asset Manager
 Commercial Real Estate Equities
	 	 

  
 POST
OFFICE BOX 17186 
 RALEIGH, NC 27619 
  

 14 

 (Corporate Seal) 
  

							
	 ATTEST:
	 	 	 	 TENANT: ICAgen, INC.

				
	 	 	 	 	By:	 	 /s/    P. KAY WAGONER        

	
	 	 	 	 	 	

	 	 	 	 	Name:	 	 P. Kay Wagoner

	 	 	 	 	 	 	

	 	 	 	 	Title:	 	 President

	 	 	 	 	 	 	

	 	 	 	 	Address:	 	 4222 Emperor Blvd.

	 	 	 	 	 	 	

	 	 	 	 	 	 	 Morrisville, N.C. 277

	 	 	 	 	 	 	

	 	 	 	 	 	 	 
	 	 	 	 	 	 	

  

 (Landlord Acknowledgement(s)) 
  

					
	 STATE OF
	  	 NORTH CAROLINA
	  	(Partnership Acknowledgment)
	 	 	
	 	 
			
	 COUNTY OF
	  	 WAKE
	  	 
	 	 	
	 	 

  
 I, W.E. WALKER,
a Notary Public in and for said County and State, do certify that SEBY B. JONES, of IMPERIAL CENTER PARTNERSHIP, personally appeared before me this day, executed the foregoing instrument in behalf of said partnership and acknowledged
to me that he/she executed the same for the purposes therein stated. 
  
 WITNESS my hand and notarial seal this 16TH day of FEBRUARY, 1993. 
  

					
			
	  	 	 	 	/s/    W.E. WALKER        
	
	 	 	 	

	 	 	 	 	Notary Public

  
 My
Commission Expires: 

	
	6/28/97
	

  
 (NOTARIAL SEAL OR STAMP) 

 

					
	 STATE OF
	  	 Iowa
	  	(Corporate Acknowledgment)
	 	 	
	 	 
			
	 COUNTY OF
	  	 Polk
	  	 
	 	 	
	 	 

  
 I, Lori E.
McElroy, a Notary Public in and for said County and State, do certify that Stanley K. Gibson personally came before me this day and acknowledged that he/she is Corporate Secretary of Petula Associates, Ltd., a Corporation, and that
by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its Senior Regional Asset Manager President, sealed with its corporate seal, and attested by him/herself, as
its Corporate Secretary. 
  
 WITNESS my hand and notarial
seal this 25th day of March, 1993. 
  

					
			
	  	 	 	 	/s/    LORI E. MCELROY        
	
	 	 	 	

	 	 	 	 	Notary Public

  
 My
Commission Expires: 

	
	 Lori E. McELROY
 MY COMMISSION EXPIRES
 August 16, 1993

	

  
 (NOTARIAL SEAL OR STAMP) 

 

 15 

 (Tenant Acknowledgement) 
  
 (NOTARIAL SEAL OR STAMP) 
  

					
	 STATE OF
	  	 North Carolina
	  	(Corporate Acknowledgment)
	 	 	
	 	 
			
	 COUNTY OF
	  	 WAKE
	  	 
	 	 	
	 	 

  
 I, Rebecca M.
Wood, a Notary Public in and for said County and State, do certify that P. Kay Wagoner personally came before me this day and acknowledged that he/she is President Secretary of ICAgen, Inc.,
a Corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its her as its President., sealed with its corporate seal, and attested by
him/herself, as its Secretary. 
  
 WITNESS my hand and
notarial seal this 12th day of February, 1993. 
  

					
			
	  	 	 	 	/s/    REBECCA M. WOOD        
	
	 	 	 	

	 	 	 	 	Notary Public

  
 My
Commission Expires: 

	
	1-28-97
	

  
 (NOTARIAL SEAL OR STAMP) 
  

 16 

 EXHIBIT B 
  
 UP-FIT IMPROVEMENTS 
  
 Upfit Improvements will be added upon final design and approval by Tenant. 
  
 DRAWING ATTACHED DATED MARCH 23, 1993 BY ENVIROTEK 

 EXHIBIT C 
  
 RULES AND REGULATIONS 
  
 The following rules and regulations have been adopted by the Landlord for the care, protection and benefit of the building and the park and for the
general comfort and welfare of the tenants. 
  
 1.    The sidewalks, entrances, halls, passage, elevators, and stairways shall not be obstructed by the Tenant or used by him for any other purpose than for ingress and egress. 
  
 2.    Toilet rooms and other water apparatus shall not be
used for any purpose other than those for which they are constructed. 
  
 3.    The Tenant shall not do anything in the Premises, or bring or keep anything therein, which shall in any way conflict with any law, ordinance, rule or regulation affecting the occupancy and use of the Premises,
which are or may hereafter be enacted or promulgated by any public authority or by the Board of Fire Underwriters. 
  
 4.    In order to insure proper use and care of the Premises, neither the Tenant nor agent nor employee of the Tenant shall:

  

	 	(a)	Allow any furniture, packages or articles of any kind to remain in corridors except for short periods incidental to moving same in or out of building or to cleaning or rearranging
occupancy of leased space. 

  

	 	(b)	Maintain or utilize bicycles or other vehicles in the building. 

  

	 	(c)	Mark or defile elevators, toilet rooms, walls, windows doors or any part of the building. 

  

	 	(d)	Deposit waste paper, dirt or other substances in corridors, stairways, elevators, toilets, restrooms, or any other part of the building not leased to him. 

 

	 	(e)	Fasten any article, drill holes, drive nails or screws into the exterior walls, floors, doors, or otherwise mar or deface any of them by paint, papers or otherwise, unless written
consent is first obtained from the Landlord. 

  

	 	(f)	Operate any machinery within the building except customary office equipment, such as dictaphones, calculators, electric typewriters, and the like and any equipment related to the
anticipated business of Tenant as a laboratory research facility. Any other equipment or machinery may be operated only with the prior written consent of the Landlord. 

  

	 	(g)	Tamper or interfere in any way with windows, doors, locks, lighting, electric or plumbing fixtures in any part of the building not leased to it. 

  
 5. The Landlord shall have the right to prohibit any advertising by the
Tenant which, in their opinion, tends to damage the reputation of the building or its desirability, and upon written notice from Landlord, the Tenant shall discontinue any such advertising. 

 6.    The Tenant will reimburse the Landlord for the cost of repairing any damage to
the Premises or other parts of the building caused by the Tenant or the agents or employees of the Tenant, including replacing any glass broken. 
  
 7.    The Landlord shall furnish a reasonable number of door keys for the needs of the Tenant, which shall be surrendered on
termination of the lease, and reserves the right to require a reasonable deposit to insure their return at termination of the Lease. The Tenant shall obtain keys only from the Landlord, shall not obtain duplicate keys from any outside source, and
shall not alter the locks or effect any substitution. 
  
 8.    The Tenant shall not install in the Premises any metal safes or permit any concentration of excessive weight in any portion thereof without first having obtained the written permission of Landlord. 
  
 9.    The Landlord reserves the right at all times to
exclude newsboys, loiterers, vendors, solicitors and peddlers, from the building and to require registration, satisfactory identification and credentials from all persons seeking access to any part of the building outside of ordinary business hours.
Ordinary business hours shall mean Monday through Friday, 8:00 a.m. to 6:00 p.m., except on legal holidays. The Landlord will exercise its best judgment in the execution of such control but shall not be held liable for the granting or refusal of
such access. The Landlord reserves the right to exclude the general public from the building after ordinary business hours and on weekends and holidays. 
  
 10.    The attaching of wires to the outside of the building is absolutely prohibited, and no wires shall be run or installed in and
part of the building without the Landlord’s permission and direction. 
  
 11.    Signs or any other Tenant identification shall be in accordance with building standard signage. No signs of any nature shall be placed in the windows so as to be visible from the exterior of
the building. All signs not approved in writing by the Landlord shall be subject to removal without notice. 
  
 12.    Any improvements or alterations to the Premises by Tenant shall be approved in advance by the Landlord as required by the
Lease. 
  
 13.    Tenant shall have a
non-exclusive right to use of all driveways and parking areas adjoining said premises. Landlord shall have the authority to assign parking areas for Tenant and Tenant’s employees, if deemed necessary by Landlord. 
  
 14.    If additional drapes or window decorations are
desired by Tenant, they shall be approved by Landlord and installed at the Tenant’s expense under the direction of the Landlord. 
  
 The Landlord shall have the right to make such other and further reasonable rules and regulations as, in the judgment of the Landlord, may from time to
time be necessary for the safety, care and cleanliness of the Premises, the building or the park, and for the preservation of good order therein, effective five (5) days after all tenants have been given written notice thereof. 

 EXHIBIT D 
  
 Contract Standards for HVAC 
 Inspection,
Maintenance and Repair 
  
 Pursuant to Section 8 of the Lease,
Tenant is obligated to enter into and maintain a maintenance contract for heating and air conditioning systems and equipment at the Premises, for the term of the Lease, and any renewal or extension hereof. The following sets forth minimum standards
in connection with the services contract so as to accomplish a preventive maintenance inspection and service program for the HVAC systems and equipment at the Premises. At minimum, contract services shall include four (4) scheduled inspections and
routine preventative maintenance service calls per year. The contract shall further provide that emergency call service shall be available on a twenty-four (24) hour a day on call basis. The services contract shall include, without limitation, the
following types of services: 
  
 (1)    Regular preventative maintenance to heating, ventilation and air conditioning equipment as follows: 
  

	 	A.	Compressors 

  

	 	1.	Check suction and head pressures 

	 	2.	Electrical amperes 

	 	3.	All electrical connections 

  

	 	B.	Condenser Coil 

  

	 	1.	Clean coil (if needed) and check fan condition 

	 	2.	Check oil level and condition 

	 	3.	Check for refrigerant leaks 

  

	 	C.	Air Handling Side 

  

	 	1.	Volts and amperes of motor 

	 	2.	Electrical connections 

	 	3.	Adjust belts and pulleys 

	 	4.	Check and lube bearings and motors 

	 	5.	Clean coil (if needed) and check fan condition 

	 	6.	Change filters 

	 	7.	Check for condensate leaks 

  

	 	D.	Boiler (if applicable) 

  

	 	1.	Check fire 

	 	2.	Pressures 

	 	3.	Oil and check pumps 

	 	4.	Burners 

	 	5.	Water temperature 

	 	6.	Safety controls 

  

	 	E.	Check out heating side of units as well as cooling side. 

  

	 	F.	Check to make sure thermostats are operating properly. 

  
 (2)    Emergency call service as needed (beyond routine preventative service) due to mechanical failure of HVAC equipment. 

 EXHIBIT E 
  
 GUARANTY 
  
 For value received and in consideration for and as an inducement to Landlord to lease the premises referred to in the annexed Lease dated December 17,
1992 between Imperial Center Partnership and Petula Associates, Ltd., Tenants in common operating as a Joint Venture, Imperial Center as Landlord, and ICAgen, Inc. as Tenant. The undersigned does hereby guaranty to Landlord the punctual payment of
the portion of the rent defined as “Tenant Improvements” in the amount of two hundred thirty-three thousand and No/100 ($233,000.00), this amount being amortized over the five (5) year term of the Lease at ten percent (10%) annual
percentage rate and totalling two hundred ninety-seven thousand thirty-three and 60/100 ($297,033.60) Dollars (hereafter collectively called “Rents”), and if any default shall be made by the Tenant under said Lease, the undersigned does
hereby, covenant and agree to pay to the Landlord in each and every instance such sum or sums of money as the Tenant is and shall become liable for and/or obliged to pay under said Lease. Also, to pay also any and all damages, expenses and
attorney’s fees (hereafter collectively called “damages”) that may be suffered or incurred by Landlord in consequence of the nonpayment of said rents. Such payments of rents to be made monthly or at such other intervals as the same
shall or may become payable under said Lease, including any accelerations thereof when incurred by Landlord, all without requiring any notice from Landlord of such non-payment, non-performance or non-observance or proof of notice or demand, all of
which the undersigned hereby expressly waives; and the maintenance of any action or proceeding by the Landlord to recover any sum of rents that may be or become due under said Lease. The undersigned does hereby consent that without affecting the
liability of the undersigned under this guaranty and without notice to the undersigned, time may be given by Landlord to Tenant for payment of rents, and such time extended and indulgences granted, from time to time, or the Tenant may be
dispossessed or the Landlord may avail itself of or exercise any or all of the rights and/or remedies against the Tenant provided by law or by said Lease, and may proceed either against the Tenant alone or jointly against the Tenant and the
undersigned or against the undersigned alone without proceeding against the Tenant. The undersigned does hereby further consent to any subsequent change, modification and/or amendment of said Lease in any of its terms, covenants or conditions, or in
the rents payable thereunder, and/or to any assignment or assignments of said Lease, and/or to any renewals or extensions thereof all of which may be made without notice to or consent of the undersigned and without in any manner releasing or
relieving the undersigned from liability under this guaranty except in such case that any modifications, assignments or amendments increase the liability of Medical Science Partners, L.P. The undersigned does hereby further agree that in respect of
any payments made by the undersigned hereunder, the undersigned shall not have any rights based on suretyship or otherwise to stand in the place of the Landlord so as to compete with Landlord as a creditor of Tenant, unless and until all claims of
the Landlord under said Lease shall have been fully paid and satisfied. As a further inducement to Landlord to make said Lease and in consideration therefore, Landlord and the undersigned hereby agree that in any action, proceeding or counterclaim
brought by either the Landlord or the undersigned against the other on any matters whatsoever arising out of or in any way connected with said Lease or this guaranty, that Landlord and the undersigned shall and do hereby waive a trial by jury. The
undersigned represents that this guaranty has been duly authorized and is binding on the undersigned. 

 EXHIBIT F 
  
 REVISIONS TO GUARANTY 
  
 If Genesis Pharmaceutics, Inc (the parent company of ICAgen, Inc.) closes the sale of $5,000,000.00 of Genesis equity securities, Imperial Center will
release the foregoing security provided that Genesis Pharmaceutics, Inc substitutes an identical guarantee of Genesis or Genesis provides a letter of credit for the unamortized portion, if any, of the Tenant improvements 
  
 Imperial Center also agrees to release all guarantees in the event and at
such time that ICAgen, Inc. closes a sale of $2,000,000 of ICAgen, Inc equity securities. 
  
 Notwithstanding the foregoing, any release or substitution for the Guaranty by Medical Science Partners, L P attached as Exhibit “E” to this Lease is conditioned upon Landlord’s review of financial
information of any guarantor to be substituted for Medical Science Partners, L P or the financial information of Tenant in the event that Tenant requests that the guaranty of Medical Science Partners, L P be released. Said release or substitution
shall be at the sole discretion of Landlord, it being expressly understood that Landlord does not have any obligation regarding such release or substitution of the Guaranty of Medical Science Partners, L.P merely because of the sale of securities of
Tenant has occurred. If Landlord agrees to said release or substitution, Landlord shall notify Tenant in writing. 
  
 Landlord, however, agrees that it will release the Guaranty of Medical Science Partners, L.P or any other guarantor(s) (a) in the event that a stand-by
letter of credit or other form of escrow reasonably acceptable to Landlord is established in an amount equal to the unamortized balance of the “Tenant Improvements” in the original amount of $233,000, this amount being amortized over the
five (5) year term of the Lease at 10% annual percentage rate and totaling $297,033.60 or (b) in the event that Tenant pays in full the outstanding balance of the Tenant Improvements. Such stand-by letter of credit or escrow account shall be
permitted to decrease as the unamortized balance of such Tenant Improvements is reduced. 

 EXHIBIT F 
  
 REVISIONS TO GUARANTY 
  
 If Genesis Pharmaceutics, Inc. (the parent company of ICAgen, Inc.) closes the sale of $5,000,000.00 of Genesis equity securities, Imperial Center will
release the foregoing security provided that Genesis Pharmaceutics, Inc. substitutes an identical guarantee of Genesis or Genesis provides a letter of credit for the unamortized portion, if any, of the Tenant improvements. 
  
 Imperial Center also agrees to release all guarantees in the event and at
such time that ICAgen, Inc. closes a sale of $2,000,000.00 of ICAgen, Inc. equity securities. 

 ADDENDUM NO. 1, attached to and forming a part of that Lease by and between Imperial Center Partnership
and Petula Associates, Ltd., as tenants in common operating as a joint venture, the Landlord, and ICAgen, Inc., the Tenant, dated December 17, 1992. 
  
 *                
*                 *                
*                 *                
*                 *                
*                 *                
*                 *                * 
  
 36.    A.    FIRST OPTION TO RENEW. If Tenant shall
have complied with all of the conditions of the Lease up to the time of exercising of this option, the Tenant shall have the option to extend the term of this Lease by written notice to Landlord at least one hundred and twenty (120) days prior to
the expiration of the initial term of this Lease, for a period of three (3) years upon the same terms and conditions except that during the said three (3) year renewal term, the minimum rental for the Premises shall be calculated as follows:

  
 Rental rate as the parties shall agree but nevertheless based
upon a survey of comparable space (exclusive of upfit) in the Research/Triangle Park Area. As the parties agree, the renewal rate shall then be based upon 95% of the then current market rate, but in no event less than the rate previously existing
under this Lease. 
  
 B.    SECOND OPTION TO
RENEW. If Tenant shall have complied with all of the conditions of the Lease up to the time of exercising of this option, the Tenant shall have the option to extend the term of this Lease by written notice to Landlord at least one hundred and twenty
(120) days prior to the expiration of the first three (3) year renewal term of this Lease, for a period of two (2) years upon the same terms and conditions except that during the said two (2) year renewal term, the minimum rental for the Premises
shall be calculated as follows: 
  
 Rental rate as the parties
shall agree but nevertheless based upon a survey of comparable space (exclusive of upfit) in the Research/Triangle Park Area. As the parties agree, the renewal rate shall then be based upon 95% of the then current market rate but in no event less
than the rate previously existing under this Lease. 
  
 37.    RIGHT OF FIRST OFFER. Tenant shall have a right-of-first offer throughout the initial term of this Lease, and any renewal term hereof, of any and all vacant or vacated space at the building, Royal Center I. Prior
to entering negotiations with another prospective tenant for any such space, the Landlord will provide Tenant with a written notice specifying the amount of space that would be available, the date of availability, and the then prevailing market
terms for comparable space in the Imperial Center or the Building; Tenant must respond in writing within ten (10) days of Landlord’s notice if it wishes to lease said space. Any space leased by Tenant shall be for a minimum lease term
coinciding with the remainder of Tenant’s then remaining lease term under this Lease. For the last one hundred twenty (120) days of either the initial term of this Lease or any renewal period as specified in Section 36, Landlord shall have no
obligation to extend Tenant any right of first offer unless Tenant has elected to extend this Lease or enter into a new lease for the Premises, as the case may be. 
  
 38.    TENANT’S RIGHT OF CANCELLATION. Notwithstanding any other provision contained in this Lease to the contrary,
and provided nevertheless no event of default has occurred after any applicable cure period at the time Tenant exercises this right of cancellation, Tenant shall have the option to cancel this Lease effective as of the last day of the third lease
year (i.e. projected as March 31, 1996) by serving prior written notice upon Landlord of Tenant’s intent to exercise this option to cancel not less than one hundred twenty (120) days prior to the last day of the third lease year (i.e. projected
as March 31, 1996) and further provided that Tenant shall absolutely pay to Landlord by certified funds without offset or demand, as of the date of notice (i.e. at least one hundred twenty (120) days prior to the last day of the third lease year) a
cancellation fee equal to the 

 
remaining unamortized portion of Upfit Improvements as specified in Section 40 hereof (i.e. projected as $139,800.00). In providing its notice of
cancellation, together with the cancellation payment, Tenant shall deliver to Landlord an executed Termination Statement suitable for recording. 
  
 39.    MEASUREMENT OF SPACE. At the request of either party, the parties agree to determine actual square footage leased for the Premises for the
purpose of prospectively determining any rent or additional rent obligation (based on Tenant’s actual proportionate share of a pass-through expense), by mutually measuring the Premises in accordance with a commonly accepted measuring standard
for warehouse space measurement (and accordingly, measured from the centerline of exterior walls). 
  
 40.    AMORTIZATION OF UPFIT IMPROVEMENTS COST. As set forth in Exhibit B, Upfit Improvements, and in accordance with the terms of Section 11 and other applicable sections of this Lease, Landlord
agrees to construct Upfit Improvements at the Premises at a cost not to exceed $233,000.00. The cost of the Upfit Improvements which shall be $233,000.00 or such lesser amount actually expended shall be financed by Landlord but paid by Tenant to
Landlord in a monthly installment of $4,950.56 (which represents an amortized monthly payment of the projected Upfit Improvements cost, subject to adjustment, payable at a 10% interest over five (5) years, in accordance with that payment
schedule attached as Exhibit B-1, and by this reference, made a part hereof). This monthly upfit payment of $4,950.56 shall be added as additional rent to each monthly rental payment for the initial term of this Lease, commencing as of April
1, 1993 or such other first day of the first month following the actual Commencement Date. Notwithstanding the foregoing payment schedule, the Upfit Improvements cost due to Landlord may be prepaid at any time by Tenant in whole or in part without
premium or penalty. In connection with the Upfit Improvements, any contractor warranties obtained by Landlord shall be assigned to Tenant upon the receipt thereof. In the event of an uncured default by Tenant hereunder, the unamortized portion of
the Upfit Improvements cost, together with a sum representing 10% simple interest annually accruing thereon, shall be immediately due to Landlord, without offset or deduction, and shall represent monies last to be paid to Landlord by Tenant (prior
to rent due, damages or costs and expenses) but nevertheless first to be paid by any guarantor upon an event of uncured default. As additional security for this obligation to reimburse Landlord the unamortized Upfit Improvements cost, a guaranty
from Medical Science Partners, L.P., a Delaware limited partnership shall be required to be executed and delivered to Landlord on or about the date hereof, in that form as set forth in Exhibit E. 

 ADDENDUM NO.    1, attached to and forming a part of that Lease by and between Imperial Center
Partnership and Petula Associates, Ltd., as tenants in common operating as a joint venture, the Landlord, and ICAgen, Inc., the Tenant, dated December 17, 1992. 
  

*                
*                 *                
*                 *                
*                 *                
*                 *                
*                 *                * 
  
 36.    A.    FIRST OPTION TO RENEW. If Tenant shall
have complied with all of the conditions of the Lease up to the time of exercising of this option, the Tenant shall have the option to extend the term of this Lease by written notice to Landlord at least one hundred and twenty (120) days prior to
the expiration of the initial term of this Lease, for a period of three (3) years upon the same terms and conditions except that during the said three (3) year renewal term, the minimum rental for the Premises shall be calculated as follows:

  
 Rental rate as the parties shall agree but nevertheless based
upon a survey of comparable space (exclusive of upfit) in the Research/Triangle Park Area. As the parties agree, the renewal rate shall then be based upon 95% of the then current market rate, but in no event less than the rate previously existing
under this Lease. 
  
 B.    SECOND OPTION TO RENEW. If Tenant
shall have complied with all of the conditions of the Lease up to the time of exercising of this option, the Tenant shall have the option to extend the term of this Lease by written notice to Landlord at least one hundred and twenty (120) days prior
to the expiration of the first three (3) year renewal term of this Lease, for a period of two (2) years upon the same terms and conditions except that during the said two (2) year renewal term, the minimum rental for the Premises shall be calculated
as follows: 
  
 Rental rate as the parties shall agree but
nevertheless based upon a survey of comparable space (exclusive of upfit) in the Research/Triangle Park Area. As the parties agree, the renewal rate shall then be based upon 95% of the then current market rate but in no event less than the rate
previously existing under this Lease. 
  
 37.    RIGHT OF
FIRST OFFER. Tenant shall have a right-of-first-offer throughout the initial term of this Lease, and any renewal term hereof, of any and all vacant or vacated space at the building, Royal Center I. Prior to entering negotiations with another
prospective tenant for any such space, the Landlord will provide Tenant with a written notice specifying the amount of space that would be available, the date of availability, and the then prevailing market terms for comparable space in the Imperial
Center or the Building; Tenant must respond in writing within ten (10) days of Landlord’s notice if it wishes to lease said space. Any space leased by Tenant shall be for a minimum lease term coinciding with the remainder of Tenant’s then
remaining lease term under this Lease. For the last one hundred twenty (120) days of either the initial term of this Lease or any renewal period as specified in Section 36, Landlord shall have no obligation to extend Tenant any right of first offer
unless Tenant has elected to extend this Lease or enter into a new lease for the Premises, as the case may be. 
  
 38.    TENANT’S RIGHT OF CANCELLATION. Notwithstanding any other provision contained in this Lease to the contrary, and provided nevertheless no event of default has occurred after any
applicable cure period at the time Tenant exercises this right of cancellation, Tenant shall have the option to cancel this Lease effective as of the last day of the third lease year (i.e. projected as March 31, 1996) by serving prior written notice
upon Landlord of Tenant’s intent to exercise this option to cancel not less than one hundred twenty (120) days prior to the last day of the third lease year (i.e. projected as March 31, 1996) and further provided that Tenant shall absolutely
pay to Landlord by certified funds without offset or demand, as of the date of notice (i.e. at least one hundred twenty (120) days prior to the last day of the third lease year) a cancellation fee equal to the 

 
remaining unamortized portion of Upfit Improvements as specified in Section 40 hereof (i.e. projected as $139,800.00). In providing its notice of
cancellation, together with the cancellation payment, Tenant shall deliver to Landlord an executed Termination Statement suitable for recording. 
  
 39.    MEASUREMENT OF SPACE. At the request of either party, the parties agree to determine actual square footage leased for the Premises for the
purpose of prospectively determining any rent or additional rent obligation (based on Tenant’s actual proportionate share of a pass-through expense), by mutually measuring the Premises in accordance with a commonly accepted measuring standard
for warehouse space measurement (and accordingly, measured from the centerline of exterior walls). 
  
 40.    AMORTIZATION OF UPFIT IMPROVEMENTS COST. As set forth in Exhibit B, Upfit Improvements, and in accordance with the terms of Section 11 and other applicable sections of this Lease, Landlord
agrees to construct Upfit Improvements at the Premises at a cost not to exceed $233,000.00. The cost of the Upfit Improvements which shall be $233,000.00 or such lesser amount actually expended shall be financed by Landlord but paid by Tenant to
Landlord in a monthly installment of $4,950.56 (which represents an amortized monthly payment of the projected Upfit Improvements cost, subject to adjustment, payable at a 10% interest over five (5) years, in accordance with that payment
schedule attached as Exhibit B-1, and by this reference, made a part hereof). This monthly upfit payment of $4,950.56 shall be added as additional rent to each monthly rental payment for the initial term of this Lease, commencing as of April
1, 1993 or such other first day of the first month following the actual Commencement Date. Notwithstanding the foregoing payment schedule, the Upfit Improvements cost due to Landlord may be prepaid at any time by Tenant in whole or in part without
premium or penalty. In connection with the Upfit Improvements, any contractor warranties obtained by Landlord shall be assigned to Tenant upon the receipt thereof. In the event of an uncured default by Tenant hereunder, the unamortized portion of
the Upfit Improvements cost, together with a sum representing 10% simple interest annually accruing thereon, shall be immediately due to Landlord, without offset or deduction, and shall represent monies last to be paid to Landlord by Tenant (prior
to rent due, damages or costs and expenses) but nevertheless first to be paid by any guarantor upon an event of uncured default. As additional security for this obligation to reimburse Landlord the unamortized Upfit Improvements cost, a guaranty
from Medical Science Partners, L.P., a Delaware limited partnership shall be required to be executed and delivered to Landlord on or about the date hereof, in that form as set forth in Exhibit E. 

 This guaranty or any of the provisions thereof cannot be modified, waived or terminated, unless in
writing, signed by the Landlord and the undersigned. The provisions of this guaranty shall apply to and bind and inure to the benefit of the undersigned and the Landlord and their respective heirs, legal representatives, successors and assigns.

  

			
	MEDICAL SCIENCE PARTNERS, L.P.
		
	By:	 	Medical Science Ventures, L.P.
	Its General Partner

  

			
	MEDICAL SCIENCE PARTNERS, L.P.
		
	By:	 	/s/    ANDRE LAMOTTE         
	 	 	

	 Title:
	 	Managing General Partner

  
  
 (Acknowledgement) 
  
 STATE OF MASSACHUSETTS 
  
 COUNTY OF
MIDDLESEX 
  
 I, LAURA J. DESOUZA, a Notary Public
in and for said county and state, do certify that ANDRE LAMOTTE,
                            , of MEDICAL SCIENCE
PARTNERS             personally appeared before me this day, executed the foregoing instrument in behalf of said partnership and acknowledged to me that he/she
executed the same for the purpose therein stated. 
  
 Witness my hand and Notarial
Stamp/Seal this 15th day of January , 1993. 
  
  

	
	
	/s/    LAURA J. DESOUZA        
	

	Notary Public

  
 My commission expires: 
 August 15, 1997 
  
 (Notarial seal or stamp) 

  
  
 EXHIBIT A-1 
  
 SPACE PLAN 
  
 ROYAL CENTER I 
 4222 EMPEROR BLVD. 
 IMPERIAL CENTER 

 
  
  
  
 [SPACE PLAN APPEARS HERE] 

  
  
 EXHIBIT A-2 
  
 SITE PLAN 
  
  
  
  
 [SITE PLAN APPEARS HERE] 

 FIRST AMENDMENT TO LEASE 
  
 THIS FIRST AMENDMENT TO LEASE, made this 26th day of August, 1996, between hereinafter called Imperial Center Partnership, a North Carolina Partnership, “Landlord” and ICAgen,
Inc., a North Carolina Corporation, “Tenant”, which terms “Landlord” and “Tenant” shall include, whenever the context admits or requires, singular or plural, and the heirs, legal and representatives, successors and
assigns of the respective parties. 
  
 WITNESSETH: 
  
 WHEREAS, by Lease dated December 17, 1992 Landlord did lease and demise unto
Tenant certain premises situated at 4222 Emperor Boulevard, Durham, Durham County, State of North Carolina for an initial term of Five (5) years and subject to the covenants and conditions particularly set forth in said lease; and

  
 WHEREAS, the parties desire to amend said Lease as herein
below described. 
  
 NOW, THEREFORE, in consideration of the sum
of one and no/100 Dollars ($1.00) and other good and valuable considerations paid by Landlord to Tenant, the receipt and sufficiency whereof are hereby acknowledged, the parties agree, each with the other as follows: 
  
 1.    Beginning August 15, 1996, Tenant agrees to expend to suite 500,
Royal Center I, consisting of 2,371 rentable square feet (expansion space) as shown on Exhibit “A”. 
  
 2.    The term for the expansion space shall be for a period of four (4) years commencing August 15, 1996, and terminating August 14, 2000.

  
 3.    The expansion space to be occupied in
“as is” condition. All required work demising wall and HVAC to be completed by Landlord prior to commencement of term. 
  
 4.    The base rental schedule to commence on August 15, 1996 shall be as follows: 
  

							
	 MONTHS

	 	 RATE PER RST

	 	 TOTAL
 MONTHLY RENT

	 	 TOTAL
 ANNUAL RENT

	 1-48
	 	$8.50	 	$1,680.17	 	$20,162.00

  
  
 5.    Additional rent (Section 4. of base lease) shall apply to expansion space. 
  
 6.    Renewal options for expansion space are as follows: 
  
 Three (3) year renewal option at the end of the initial four (4) year term
and a second renewal option of two (2) years at the end of the three (3) year renewal term, rental rate for both renewal terms to be based on 95% of the then market value for comparable space in the area. 

 THAT, EXCEPT AS HEREIN MODIFIED, said Lease shall remain in full force and effect and the covenants and
agreements contained herein shall bind and inure to the benefit of the parties hereto, their heirs, personal representatives, successors and assigns and any number and gender shall include the other number and gender. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment of
Lease. 
  

					
	 (Corporate Seal)
	 	 LANDLORD:
	 	 IMPERIAL CENTER LIMITED

	 	 	 	 	 PARTNERSHIP a North Carolina
 limited partnership
[SEAL]

			
	  	 	 By:
	 	PETULA ASSOCIATES, LTD. an Iowa
corporation, its general partner
			
	ATTEST:	 	 By:
	 	/s/    FRANK G. SULLIVAN        
	 	 	 	 	

	 	 	 	 	Frank Sullivan
	/s/    KURT D. SHAEFFER        	 	 	 	Senior Regional Asset Manager
	
	 	 	 	 
	 Kurt D. Shaeffer
 Vice President &
Secretary
	 	 	 	Commercial Real Estate Equities
	  	 	 By: 
	 	  
	 	 	 	 	

	 	 	 	 	President
			
	 (Corporate Seal)
	 	 TENANT:
	 	 ICAgen, INC.
 a North Carolina corporation

			
	 ATTEST:
	 	 By:
	 	/s/    P. K. WAGONER        
	 	 	 	 	

	/s/    MARY ANN GRIMM WINDON	 	 	 	President
	
	 	 	 	 
	Assistant Secretary	 	ADDRESS:	 	 4222 Emperor Boulevard

	 	 	 	 	 Suite 470,
 Durham, NC 27703

 STATE OF
                                        
                     (Partnership Acknowledgement) 
 COUNTY OF
                                        

  
 I,
                            , a Notary Public in and for said County and State, do certify that
                                ,  
                                 of
                                       
 ,  
                                        
     personally appeared before me this day, executed the foregoing instrument in behalf of said partnership and acknowledged to me that he/executed the same for the purposes therein stated. 
  
 WITNESS my hand and notarial seal this
                 day of             , 199_. 
  
  

	
	
	 
	

	Notary Public

  

	
	 My Commission Expires:

	  
	

 [NOTARIAL SEAL OR STAMP] 
  

STATE OF NORTH
CAROLINA                                     (Corporate
Acknowledgement) 
 COUNTY OF DURHAM 
  
 I, W. E. Walker, a Notary Public in and for said County and State, do certify that Mary Ann Grimm-Windon personally came before me this day and
acknowledged that he/she is Asst. Secretary of ICAgen, Inc., a corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its
             President, sealed with its corporate seal, and attested by him/herself as its ASST. Secretary. 
  
 WITNESS my hand and notarial seal this 12th day of August, 1996. 
  
  

	
	
	/s/    W. E. WALKER        
	

	Notary Public

  
  

	
	My Commission Expires:
	
	6/28/97
	

	 [NOTARIAL SEAL OR STAMP]

  
  
 STATE OF Iowa
                                        
                    (Corporate Acknowledgement) 
 COUNTY
OF Polk 
  
 I, Nancy S. Yando, a Notary Public in and for
said County and State, do certify that Kurt D. Schaeffer personally came before me this day and acknowledged that he/she is Vice President & Secretary of Petula Associates, Ltd., an Iowa corporation, and that by authority
duly given and as the act of the corporation, the foregoing instrument was signed in its name by its Senior Regional Asset Manager Commercial Real Estate President, sealed with its corporate seal, and attested by
him/herself as its Vice President & Secretary. 
  
 WITNESS my hand and notarial seal this 12th day of August, 1996. 
  
  

	
	
	/s/     NANCY S. YANDO
	

	Notary Public

  
  

	
	 My Commission Expires:

	
	8/23/96
	

	 [NOTARIAL SEAL OR STAMP]

  

 ROYAL CENTER I 
 SUITE 500 
 APPROXIMATELY 2,372 sf 
  
  
 [FLOOR PLANS APPEAR HERE] 

 STATE OF NORTH CAROLINA 
 SECOND AMENDMENT TO LEASE 
 COUNTY OF DURHAM 
  
 THIS SECOND AMENDMENT TO LEASE (the “Amendment”) is dated as of the
29th day of September, 1998, by and between IMPERIAL CENTER LIMITED PARTNERSHIP (“Landlord”), and ICAGEN,
INC. ( “Tenant”), 
  
 STATEMENT OF PURPOSE

  
 A. Landlord and Tenant entered into a Lease dated as of
December 17, 1992 for the occupancy of 7,099 rentable square feet of space (the “Premises”) at 4222 Emperor Boulevard, Durham County, North Carolina for an initial term of five (5) years and subject to the covenants and conditions
particularly set forth in said lease. 
  
 B. Landlord and Tenant
desire to amend the terms of the Lease to extend the initial term of the Lease, and to change certain other provisions of the Lease. 
  
 NOW, THEREFORE, in consideration of the premises, covenants and agreements herein contained, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree to amend the Lease on the terms set forth below. The capitalized terms used but not defined herein shall have the meanings set forth within the Lease. 
  
 AGREEMENT 
  
 1. Term. The initial term of the Lease shall be extended for a period of three (3) years (the “Extension
Term”) commencing August 1, 1998 (the “Revised Commencement Date”) and expiring at midnight on July 31, 2001 (the “ Revised Expiration Date”). 
  
 2. Rent. 
  
 (a) Commencing on the Revised Commencement Date and continuing through July 31, 1999, Tenant shall pay Annual Minimum Rent in the amount of Forty Thousand
Seven Hundred Ninety-Two and 38/100 Dollars ($40,792.38) per annum [which equals Five and 82/100 Dollars ($5.82) per rentable square foot of the Premises] payable in equal monthly installments of Three Thousand Three Hundred Ninety-Nine and 37/100
Dollars ($3,399.37). 
  
 (b) Commencing August 1, 1999 and
continuing through July 31, 2000, Tenant shall pay Annual Minimum Rent in the amount of Forty-One Thousand Nine Hundred Eighty-Three and 91/100 Dollars ($41,983.91) per annum [which equals Five and 99/100 Dollars ($5.99) per rentable square foot of
the Premises] payable in equal monthly installments of Three Thousand Four Hundred Ninety-Eight and 66/100 Dollars ($3,498.66). 
  
 (c) Commencing August 1, 2000 and continuing through the Revised Expiration Date, Tenant shall pay Annual Minimum Rent in the amount of Forty-Three
Thousand Two 

 
Hundred Forty-Five and 53/100 Dollars ($43,245.53) per annum [which equals Six and 17/100 Dollars ($6.17) per rentable square foot of the Premises] payable
in equal monthly installments of Three Thousand Six Hundred Three and 79/100 Dollars ($3,603.79). 
  
 Each installment of Annual Minimum Rent shall be due and payable in advance on or before the first day of each month. 
  
 Notwithstanding the foregoing, due to an overpayment of Minimum Rent during
the first month of the Extension Term (August, 1998), the monthly installment of Minimum Rent due and payable by Tenant for the second month only of the Extension Term (September, 1998) shall be adjusted to be Two Thousand Seven Hundred Ten and
16/100 Dollars ($2,710.16). 
  
 3. Condition of Premises.
Tenant acknowledges that it presently occupies the Premises and that it shall continue to occupy the Premises during the Extension Term in its current “as is” condition. 
  
 4. Applicability of Lease Terms. Except as otherwise modified herein, the terms of the Lease shall apply during the
Extension Term, and all terms of the Lease (as amended hereby) are ratified, confirmed and continued in full force and effect. 
  

 2 

 IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to Lease to be duly executed as
of the day and year first above written. 
  

			
	“LANDLORD”
	
	 IMPERIAL CENTER LIMITED PARTNERSHIP [SEAL]
 a
North Carolina limited partnership

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

		
	By:	 	/s/    RANDALL C. MUNDT
	 	 	

	 	 	 Randall C. Mundt, Vice President

		
	 By:
	 	 /s/    DAVID P. ELLINGSON

	 	 	

	 	 	 David P. Ellingson, Vice President and
 Associate General Counsel

  

	
	ATTEST:
	
	/s/    RONALD B. FRANKLIN
	

	 Ronald B. Franklin
 Director & Secretary
  
 [CORPORATE SEAL]

  

			
	 “TENANT”
  
 ICAGEN, INC.

		
	By:	 	/s/    P. K. WAGONER
	 	 	

	 	 	                     President

  

	
	ATTEST:
	
	/s/    ROBERT J. JAKOBS
	

	 Assistant Secretary

  
 [CORPORATE SEAL]

  

 3 

			
		
	 STATE OF IOWA
  
 COUNTY OF POLK
	 	 )
 )
 )

  
 On this 21 day of
October, 1998, before me, a Notary Public in and for said County, personally appeared Randall C. Mundt and David P. Ellingson, to me know to be the persons who executed the within instrument as the Vice President and Vice President, respectively, of
PETULA ASSOCIATES, LTD., an Iowa corporation, and they being duly sworn did state that the seal affixed to the said instrument is the seal of said corporation and that said instrument was signed and sealed on behalf of the said corporation by
authority of its board of directors, and the aforesaid officers each acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, by and of each of them voluntarily executed. 
  

	
	/s/    DANIELLE JOHNSON
	

	 Notary Public in and for said County and State
  
 DANIELLE JOHNSON
 MY COMISSION EXPIRES
 May 11, 2001

 STATE OF NC 
 (Corporate Acknowledgement) 
  
 COUNTY OF DURHAM 
  
 I, W. E. Walker, a Notary Public in and for said County and State, do certify
that Robert J. Jakobs personally came before me this day and acknowledged that he/she is Asst. Secretary of ICAgen, Inc., a North Carolina corporation, and that by authority duly given and as the act of the corporation,
the foregoing instrument was signed in its name by its              President, sealed with its corporate seal, and attested by him/herself as its
             Secretary. 
  
 WITNESS my hand and notarial seal this 29th day of SEPTEMBER, 1998. 
  

	
	/s/    W. E. WALKER
	

	 Notary Public

  

	
	My Commission Expires:
	
	         7/15/02

	[NOTARIAL SEAL OR STAMP]

 STATE OF NORTH CAROLINA 
 THIRD AMENDMENT TO LEASE 
 COUNTY OF DURHAM 
  
 THIS THIRD AMENDMENT TO LEASE (the “Amendment”) is dated as of the 6th day of July, 2000, by and between PETULA ASSOCIATES, LTD., an Iowa corporation and PRINCIPAL LIFE INSURANCE COMPANY, an Iowa corporation, as tenants-in-common
(hereinafter collectively referred to as “Landlord”) [successor in interest to Imperial Center Limited Partnership and Imperial Center, a joint venture (“Imperial”)], and ICAGEN, INC. (“Tenant”), 
  
 STATEMENT OF PURPOSE 
  
 A. Imperial and Tenant entered into a Lease (as amended, the
“Lease”) dated as of December 17, 1992, for the occupancy of 7,009 rentable square feet of space (the “Initial Premises”) in the building known as Royal Center I (the “Building”) at 4222 Emperor Boulevard, Durham
County, North Carolina for an initial term of five (5) years (the “Initial Premises Term”) and subject to the covenants and conditions particularly set forth in said lease. 
  
 B. Imperial and Tenant entered into a First Amendment of Lease dated August 26, 1996 for additional space in the Building
containing 2,372 rentable square feet (the “Additional Space”) for an initial term of four (4) years (the “Additional Space Term”). 
  
 C. Imperial and Tenant entered into a Second Amendment of Lease dated September 29, 1998 wherein the first renewal option for the Initial Premises was
exercised thereby extending the Initial Premises Term to July 31, 2001. 
  
 D. Effective as of March 31, 1999, the general and limited partners of Imperial terminated their partnership and distributed the assets of the partnership as follows: (1) an 83.33% undivided interest to Petula Associates, Ltd., an Iowa
corporation; and (2) a 16.67% undivided interest to The SBJ Growth L.P., a Georgia limited partnership d/b/a The SBJ Growth Limited Partnership (“SBJ”). 
  
 E. Effective as of June 1, 1999, Principal Life Insurance Company, an Iowa corporation, acquired all of SBJ’s interest
in the assets of Imperial, including the Initial Premises and Additional Space. 
  
 F. Landlord and Tenant desire to amend the terms of the Lease to extend the Additional Space Term, and to change certain other provisions of the Lease. 
  
 NOW, THEREFORE, in consideration of the premises, covenants and agreements herein contained, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree to amend the Lease on the terms set forth below. The capitalized terms used but not defined herein shall have the meanings set forth within the Lease.

  

 1 

 AGREEMENT 
  

1. Additional Space Term. The Additional Space Term shall be extended for a period of three (3) years (the “Additional Space Extension
Term”) commencing August 15, 2000 (the “Revised Additional Space Commencement Date”) and expiring at midnight on August 14, 2003 (the “ Revised Additional Space Expiration Date”). 
  
 2. Rent. 
  
 (a) Commencing on the Revised Additional Space Commencement Date and continuing through August 14, 2001, Tenant shall pay
Minimum Rent for the Additional Space (in addition to the Minimum Rent for the Initial Premises) in the amount of Twenty-Two Thousand Fifty-Nine and 60/100 Dollars ($22,059.60) per annum [which equals Nine and 30/100 Dollars ($9.30) per rentable
square foot of the Additional Space] payable in equal monthly installments of One Thousand Eight Hundred Thirty-Eight and 30/100 Dollars ($1,838.30). 
  
 (b) Commencing on August 15, 2001 and continuing through August 14, 2002, Tenant shall pay Minimum Rent for the Additional Space in the amount of
Twenty-Two Thousand Seven Hundred Twenty-Three and 76/100 Dollars ($22,723.76) per annum [which equals Nine and 58/100 Dollars ($9.58) per rentable square foot of the Additional Space] payable in equal monthly installments of One Thousand Eight
Hundred Ninety-Three and 65/100 Dollars ($1,893.65). 
  
 (c)
Commencing on August 15, 2002 and continuing through the Revised Additional Space Expiration Date, Tenant shall pay Minimum Rent for the Additional Space in the amount of Twenty-Three Thousand Four Hundred Eleven and 64/100 Dollars ($23,411.64) per
annum [which equals Nine and 87/100 Dollars ($9.87) per rentable square foot of the Additional Space] payable in equal monthly installments of One Thousand Eight Hundred Ninety-Three and 65/100 Dollars ($1,893.65). 
  
 Each installment of Minimum Rent shall be due and payable in advance on or
before the first day of each month. 
  
 3. Condition of
Additional Space. Tenant acknowledges that it presently occupies the Additional Space and that it shall continue to occupy the Additional Space during the Additional Space Extension Term in its current “as is” condition. 
  
 4. Applicability of Lease Terms. Except as otherwise modified herein,
the terms of the Lease shall apply during the Additional Space Extension Term, and Tenant shall continue to occupy the Additional Space in accordance with the terms and conditions of the Lease, which are hereby ratified, confirmed and continued in
full force and effect. Northing contained in this Amendment shall be deemed to impact Tenant’s lease of the Initial Premises and Tenant shall continue to occupy the Initial Premises in accordance with the terms and conditions of the Lease.

  

 2 

 IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to Lease to be duly executed as
of the day and year first above written. 
  

									
	 	 	 	 	 LANDLORD:
	 	 
				
	 	 	 	 	 PETULA ASSOCIATES, LTD.,
 An Iowa
corporation
	 	 
					
	 ATTEST:
	 	 	 	By:	 	 /s/    BILL BRAMWELL        
	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	 	 	 Bill Bramwell
	 	 
	 	 	 	 	 	 	 Vice President
	 	 
	 /s/    RONALD B. FRANKLIN
	 	 	 	 	 	 	 	 
	
	 	 	 	 	 	 	 	 
	 Ronald B. Franklin
 Director & Secretary
 Commercial Real Estate
 Closing/Loan Administration
 [CORPORATE SEAL]
	 	 	 	By:	 	 	 	 
	 	 	 	 	 	
	 	 
	 	 	 	Name:	 	 	 	 
	 	 	 	 	 	
	 	 
	 	 	 	Its:	 	                  President
	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
				
	 	 	 	 	 PRINCIPAL LIFE INSURANCE COMPANY,
 an Iowa corporation
	 	 
					
	 	 	 	 	By:	 	 PRINCIPAL CAPITAL MANAGEMENT, LLC,
 a Delaware limited
liability company, its authorized agent (SEAL)
	 	 
	 	 	 	 	By:	 	 /s/    HENRY W. ANDERSON
	 	 (SEAL)

	 	 	 	 	 	 	
	 	 
	 	 	 	 	Name:	 	 Henry W. Anderson
	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	Title:	 	 Director
	 	 
	 	 	 	 	 	 	
	 	 
					
	 	 	 	 	By:	 	 	 	 (SEAL)

	 	 	 	 	 	 	
	 	 
	 	 	 	 	Name:	 	 	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	Title:	 	 	 	 
	 	 	 	 	 	 	
	 	 
				
	 	 	 	 	 TENANT
	 	 
				
	 	 	 	 	ICAGEN, INC.	 	 
					
	 	 	 	 	By:	 	 /s/    P. K. WAGONER        
	 	 
	 	 	 	 	 	 	
	 	 
	 	 	 	 	 	 	                  President
	 	 
					
	 ATTEST:
	 	 	 	 	 	 	 	 
					
	 /s/    ROBERT J. JAKOBS
	 	 	 	 	 	 	 	 
	
	 	 	 	 	 	 	 	 
	 ASSIST Secretary
	 	 	 	 	 	 	 	 
	 [CORPORATE SEAL]
	 	 	 	 	 	 	 	 

  

 3 

 STATE OF NORTH CAROLINA 
 FOURTH AMENDMENT TO LEASE 
 COUNTY OF DURHAM 
  
 THIS FOURTH AMENDMENT TO LEASE (the “Amendment”) is dated as of the
16th day of July, 2001, by and between ROYAL CENTER IC, LLC, [successor in interest to IMPERIAL CENTER LIMITED
PARTNERSHIP (“Imperial”)], and ICAGEN, INC. (“Tenant”), 
  
 STATEMENT OF PURPOSE 
  
 A.
Imperial and Tenant entered into a Lease dated as of December 17, 1992, (as amended, the “Existing Lease”) for the occupancy of 7,009 rentable square feet of space (the “Premises”) in the building known as Royal Center I (the
“Building”) at 4222 Emperor Boulevard, Durham County, North Carolina for an initial term of five (5) years (the “Initial Premises Term”) and subject to the covenants and conditions particularly set therein; 
  
 B. Imperial and Tenant entered into a First Amendment of Lease dated August
26, 1996 for additional space in the Building containing 2,372 rentable square feet (the “Additional Space”) for an initial term of four (4) years (the “Additional Space Term”); 
  
 C. Imperial and Tenant entered into a Second Amendment of Lease dated
September 29, 1998 wherein the first renewal option for the Initial Premises was exercised thereby extending the Initial Premises Term to July 31, 2001 (the “Extended Initial Term”); 
  
 D. Effective March 31, 1999, the general and limited partners of Imperial
terminated their partnership and distributed the assets of the partnership as follows: (1) a 66.66% undivided interest to Petula Associates, Ltd., an Iowa corporation (“Petula”); (2) a 13.34% undivided interest to The SBJ Growth L.P., a
Georgia limited partnership d/b/a The SBJ Growth Limited Partnership (“SBJ”); and (3) a 20.00% undivided interest to J. Samuel Glasscock, Trustee, under the Will of Louise R. Pickard, deceased (“Glasscock”); 
  
 E. Effective as of June 1, 1999, Principal Life Insurance Company, an Iowa
corporation, acquired all of SBJ’s interest and Glasscock’s interest in the assets of Imperial, including the Premises; 
  
 F. Petula and Principal and Tenant entered into a Third Amendment to Lease dated July 6, 2000 wherein the Additional Space Term was extended for a period
of three (3) years to August 14, 2003; 
  
 G. Effective as of
September 1, 2000, Landlord acquired the interest of Petula and Principal in the Premises; and 
  
 H. Landlord and Tenant desire to amend the terms of the Lease to extend the Extended Initial Term, and to change certain other provisions of the Lease. 
  

 1 

 NOW, THEREFORE, in consideration of the premises, covenants and agreements herein contained, and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree to amend the Lease on the terms set forth below. The capitalized terms used but not defined herein shall have the meanings set forth
within the Lease. 
  
 AGREEMENT 
  
 1. Term. The Extended Initial Term shall be extended for a period of
five (5) years (the “Second Extension Term”) commencing August 1, 2001 (the “Second Revised Commencement Date”) and expiring at midnight on July 31, 200 (the “Second Revised Expiration Date”). 
  
 2. Rent. 
  
 (a) Commencing on the Second Revised Commencement Date and continuing through July 31, 2002, Tenant shall pay Annual Minimum
Rent in the amount of Forty-Four Thousand Five Hundred Seventy-seven and 24/100 Dollars ($44,577.24) per annum [which equals Six and 36/100 Dollars ($6.36) per rentable square foot of the Premises] payable in equal monthly installments of Three
Thousand Seven Hundred Fourteen and 77/100 Dollars ($3,714.77). 
  
 (b) Commencing on August 1, 2002 and continuing through July 31, 2003, Tenant shall pay Annual Minimum Rent in the amount of Forty-Five Thousand Nine Hundred Eight and 95/100 Dollars ($45,908.95) per annum [which equals Six and 55/100
Dollars ($6.55) per rentable square foot of the Premises] payable in equal monthly installments of Three Thousand Eight Hundred Twenty-five and 75/100 Dollars ($3,825.75). 
  
 (c) Commencing on August 1, 2003 and continuing through July 31, 2004, Tenant shall pay Annual Minimum Rent in the amount of
Forty-seven Thousand Seven Hundred Thirty-one and 29/100 Dollars ($47,731.29) [which represents Six and 81/100 Dollars ($6.81) per rentable square foot of the Premises] payable in equal monthly installments of Three Thousand Nine Hundred
Seventy-seven and 61/100 Dollars ($3,977.61). 
  
 (d) Commencing
on August 1, 2004 and continuing through July 31, 2005, Tenant shall pay Annual Minimum Rent in the amount of Forty-nine Thousand Six Hundred Twenty-three and 72/100 Dollars ($49,623.72) [which represents Seven and 08/100 Dollars ($7.08) per
rentable square foot of the Premises] payable in equal monthly installments of Four Thousand One Hundred Thirty-five and 31/100 Dollars ($4,135.31). 
  
 (c) Commencing on August 1, 2005 and continuing through the Second Revised Expiration Date, Tenant shall pay Annual Minimum Rent in the amount of
Fifty-one Thousand Five Hundred Eighty-six and 24/100 Dollars ($51,586.24) [which represents Seven and 36/100 Dollars ($7.36) per rentable square foot of the Premises] payable in equal monthly installments of Four Thousand Two Hundred Ninety-eight
and 85/100 Dollars ($4,298.85). 
  

 2 

 Each installment of Annual Minimum Rent shall be due and payable in advance on or before the first day of
each month. 
  
 3. Condition of Premises. Tenant
acknowledges that it presently occupies the Premises and that it shall continue to occupy the Premises during the Second Extension Term in its current “as is” condition. 
  
 4. Applicability of Lease Terms. Except as otherwise modified herein, the terms of the Lease shall apply during the
Second Extension Term, and all terms of the Lease (as amended hereby) are hereby ratified, confirmed and continued in full force and effect. 
  
 5. Landlord’s Notice Address. As of the date hereof, Landlord’s address for notice purposes under the lease shall be deemed to be:

  
 Royal Center IC, LLC 
 c/o Tri Properties, Inc. 
 4309 Emperor Boulevard, Suite 110 
 Durham, NC 27703 
  
 6. Broker. Tenant warrants that it has no dealings with any real
estate broker or agent in connection with the negotiations of this Fourth Amendment excepting Tri Properties, Inc. (the “Broker”) and Tenant knows of no other real estate broker or agent who is entitled to a commission in connection with
this Fourth Amendment. Tenant shall indemnify, defend, and hold Landlord harmless from any claim, loss, cost, liability or demand (including reasonable attorneys fees and costs) arising out of any claim for commission due to any broker or agent
except the Broker referenced above. To the extent Landlord has a separate written agreement with the Broker, Landlord agrees to pay the commissions due pursuant to such written agreement. 
  
 [remainder of page left intentionally blank] 
  

 3 

 IN WITNESS WHEREOF, the parties hereto has duly executed this Fourth Amendment as of the day and year
first above written. 
  

							
	 	 	 LANDLORD:

		
	 	 	 ROYAL CENTER IC, LLC,
 a Delaware limited liability company

			
	 	 	By:	 	 Principal Capital Management, LLC
 a Delaware
limited liability company,
 its authorized agent

				
	 	 	 	 	By:	 	 /s/    TONY HEPNER

	 	 	 	 	 	 	

	 	 	 	 	Name:	 	 Tony Hepner

	 	 	 	 	 	 	

	 	 	 	 	Title:	 	 Director

	 	 	 	 	 	 	

	 	 	 	 	 	 	 7/16/01

				
	 	 	 	 	By:	 	 
	 	 	 	 	 	 	

	 	 	 	 	Name:	 	 
	 	 	 	 	 	 	

	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	

			
	 	 	 	 	 TENANT

			
	 	 	 	 	ICAGEN, INC.
				
	 	 	 	 	By:	 	 /s/    P. K. WAGONER        

	 	 	 	 	 	 	

	 	 	 	 	 	 	             President

				
	 ATTEST:
	 	 	 	 	 	 
				
	 /s/    ROBERT J. JAKOBS
	 	 	 	 	 	 
	
	 	 	 	 	 	 
	 ASSIST Secretary
	 	 	 	 	 	 
				
	 [CORPORATE SEAL]
	 	 	 	 	 	 

  

 4 

 STATE OF NORTH CAROLINA 
 FIFTH AMENDMENT TO LEASE 
 COUNTY OF DURHAM 
  
 THIS FIFTH AMENDMENT TO LEASE (the “Amendment”) is dated as of the
7 day of April, 2003 by and between ROYAL CENTER IC, LLC, a Delaware limited liability company (“Landlord”) [successor-in-interest to Imperial Center Limited Partnership and Imperial Center, a joint venture (collectively,
“Imperial”)] and ICAGEN, INC. (“Tenant”). 
  
 STATEMENT OF PURPOSE 
  
 A. Imperial and Tenant
entered into a Lease (as amended, the “Lease”) dated as of December 17, 1992, for the occupancy of 7,009 rentable square feet of space (the “Initial Premises”) in the building known as Royal Center I (the “Building”) at
4222 Emperor Boulevard, Durham County, North Carolina for an initial term of five (5) years (the “Initial Premises Term”) and subject to the covenants and conditions particularly set forth in said Lease. 
  
 B. Imperial and Tenant entered into a First Amendment of Lease dated August
26, 1996 for additional space in the Building containing 2,372 rentable square feet (the “Additional Space”) for an initial term of four (4) years (the “Additional Space Term”). 
  
 C. Imperial and Tenant entered into a Second Amendment to Lease dated
September 29, 1998 wherein the first renewal option for the Initial Premises was exercised thereby extending the Initial Premises Term to July 31, 2001. 
  
 D. Imperial and Tenant entered into a Third Amendment to Lease dated July 6, 2000 wherein the Additional Space Extension Term was exercised thereby
extending the Additional Space Extension Term to August 14, 2003 and Landlord and Tenant have previously agreed, by side letter agreement, to extend the Additional Space Extension Term to August 31, 2003. 
  
 E. Landlord and Tenant entered into a Fourth Amendment to Lease dated July
16, 2001 wherein the term of the Lease with respect to the Initial Premises was extended for a period of five (5) years and is currently scheduled to expire on July 31, 2006. 
  
 F. Landlord (as successor-in-interest to Imperial) and Tenant desire to amend the terms of the Lease to further extend the
term of the Lease with respect to the Additional Space, and to change certain other provisions of the Lease. 
  
 NOW, THEREFORE, in consideration of the premises, covenants and agreements herein contained, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree to amend the Lease on the terms set forth below. The capitalized terms used but not defined herein shall have the meanings set forth within the Lease. 
  

 1 

 AGREEMENT 
  

1. Additional Space Term. Effective as of the date hereof, the Additional Space Extension Term shall be extended for a period of two (2) years
(the “Second Additional Space Extension Term”) commencing September 1, 2003 (the “Second Additional Space Commencement Date”) and expiring at midnight on August 31, 2005. 
  
 2. Minimum Rent. 
  
 (a) Commencing on the Second Additional Space Commencement Date and
continuing through August 31, 2004, Tenant shall pay Minimum Rent for the Additional Space (in addition to the Minimum Rent for the Initial Premises) in the amount of Twenty-Three Thousand Four Hundred Eleven and 64/100 Dollars ($23,411.64) per
annum [which represents Nine and 87/100 Dollars ($9.87) per rentable square foot of the Additional Space] payable in equal monthly installments of One Thousand Nine Hundred Fifty and 97/100 Dollars ($1,950.97). 
  
 (b) Commencing September 1, 2004 and continuing through the expiration of the
Second Additional Space Extension Term, Tenant shall pay Minimum Rent for the Additional Space (in addition to the Minimum Rent for the Initial Premises) in the amount of Twenty-Four Thousand One Hundred Twenty-Three and 24/100 Dollars ($24,123.24)
per annum [which equals Ten and 17/100 Dollars ($10.17) per rentable square foot of the Additional Space] payable in equal monthly installments of Two Thousand Ten and 27/100 Dollars ($2,010.27). 
  
 Each installment of Minimum Rent shall be due and payable in advance on or
before the first day of each month in accordance with the terms and conditions of the Lease. In addition to Minimum Rent, Tenant shall continue to pay all additional rent accruing under the Lease, including Tenant’s pro rata share of operating
expenses, in accordance with the terms of the Lease. 
  
 3.
Condition of Additional Space. Tenant acknowledges that it presently occupies the Additional Space and that it shall continue to occupy the Additional Space during the Second Additional Space Extension Term in its “as is, where is “
condition without any further improvements thereto by Landlord. 
  
 4. Applicability of Lease Terms. Except as otherwise modified herein, the terms of the Lease shall continue to apply to the Additional Space during the Second Additional Space Extension Term, and Tenant shall continue to occupy the
Additional Space in accordance with the terms and conditions of the Lease, which are hereby ratified, confirmed and continued in full force and effect. Nothing contained in this Amendment shall be deemed to impact Tenant’s lease of the Initial
Premises and Tenant shall continue to occupy the Initial Premises in accordance with the terms and conditions of the Lease. 
  

 2 

 IN WITNESS WHEREOF, the parties hereto have caused this Fifth Amendment to Lease to be duly executed as
of the day and year first above written. 
  
  

			
	LANDLORD:
	
	ROYAL CENTER IC, LLC, a Delaware limited liability company
		
	By:	 	PRINCIPAL REAL ESTATE INVESTORS, LLC, a
Delaware limited liability company,
its authorized agent
		
	By:	 	/s/    MARK F. SCHOLZ
	 	 	

	 Name: Mark F. Scholz
 Title: Investment Director Asset Management

  

			
	 “TENANT”
  
 ICAGEN, INC.
 a North Carolina corporation

		
	By:	 	/s/    P. KAY WAGONER
	 	 	

	 	 	             President

  

	
	ATTEST:
	
	/s/    ROBERT J. JAKOBS
	

	 Assist Secretary
  

[CORPORATE SEAL]

  

 3LEASE AGREEMENT DATED OCTOBER 1997 BETWEEN REGISTRANT & PETULA ASSOCIATES, LTD

 Exhibit 10.11 
  
 LEASE AGREEMENT 
  
 THIS LEASE AGREEMENT (the “Lease”) made and entered into as of the          day of October, 1997,
by and between PETULA ASSOCIATES, LTD., an Iowa corporation, hereinafter called “Landlord”; and ICAGEN, INC., a Delaware corporation, hereinafter called “Tenant”: 
  
 WITNESSETH: 
  
 In consideration of the mutual covenants and agreements contained herein,
the parties hereto agree for themselves, their successors and assigns, as follows: 
  
 1. DESCRIPTION OF PREMISES. 
  
 Landlord hereby leases to Tenant, and Tenant hereby accepts and rents from Landlord, that certain office/warehouse space (the “Premises”) containing approximately 8,983 rentable square feet known as Suite 390 located in the
building known as Royal Center III (the “Building”) on a tract of land located at 4222 Emperior Boulevard, Durham, North Carolina, in Imperial Center Business Park, more particularly described on Exhibit “A” attached
hereto; together with: (i) the nonexclusive right to use all parking areas, driveways, sidewalks and other common facilities furnished by Landlord from time to time and (ii) the right to three (3) surface parking spaces per 1,000 rentable square
feet of the Premises. The Premises are designated as “Space-A” (approximately 5,383 rentable square feet) and “Space-B” (approximately 3,600 rentable square feet) as shown outlined in red on the building plan attached hereto as
Exhibit “B” (Space-A and Space-B hereinafter being collectively deemed the “Premises”). 
  
 2. TERM. 
  
 Unless otherwise adjusted as hereinbelow provided, the term of this Lease (the “Term”) shall commence on the earlier of: (a) the date Tenant, or
any person occupying any portion of the Premises with Tenant’s permission, commences business operations from the Premises, or (b) December 15, 1997 (the “Commencement Date”) and shall end at midnight on the date (the “Expiration
Date”) which is five (5) full Lease Years (as hereinafter defined) from the Commencement Date (as same may be adjusted as hereinbelow provided); provided, however, for purposes hereof, Tenant’s installation of furniture, fixtures and
equipment within the Premises shall not be deemed the commencement of business operations. Tenant shall have the option to extend the Term in accordance with Exhibit “E” attached hereto and incorporated herein by reference. As used
herein, the term “Lease Year” shall mean each consecutive twelve-month period of the Term, beginning with the Commencement Date (as same may be adjusted as hereinbelow provided) or any anniversary thereof. 

 3. RENTAL. 
  
 During the Term, Tenant shall pay to Landlord, without notice, demand, reduction (except as may be applicable pursuant to
the paragraphs of this Lease entitled “Damage or Destruction of Premises” or the paragraph entitled “Eminent Domain” of this Lease), setoff or any defense, a total rental (the “Annual Rental”) consisting of the sum
total of the following: 
  
 (a) Minimum Rental.

  
 (i) Commencing with the Commencement Date and continuing
through the first Lease Year or earlier termination of this Lease, Tenant shall pay a minimum annual rental (the “Minimum Rental”) of Fifty-Five Thousand Three Hundred Thirty-Five and 28/100 Dollars ($55,335.28) [which represents a blended
rate of $6.16 per rentable square foot of the Premises], payable in equal monthly installments of Four Thousand Six Hundred Eleven and 27/100 Dollars ($4,611.27) each in advance on or before the first day of each month. 
  
 (ii) Commencing with the first anniversary of the Commencement Date and
continuing through the second Lease Year or earlier termination of this Lease, Tenant shall pay Minimum Rental of Sixty-Seven Thousand Six Hundred Forty-One and 99/100 Dollars ($67,641.99) [which represents a blended rate of $7.53 per rentable
square foot of the Premises], payable in equal monthly installments of Five Thousand Six Hundred Thirty-Six and 83/100 Dollars ($5,636.83) each in advance on or before the first day of each month. 
  
 (iii) Commencing with the second anniversary of the Commencement Date and
continuing through the third Lease Year or earlier termination of this Lease, Tenant shall pay Minimum Rental of Ninety-One Thousand Two Hundred Sixty-Seven and 28/100 Dollars ($91,267.28) [which represents a blended rate of $10.16 per rentable
square foot of the Premises], payable in equal monthly installments of Seven Thousand Six Hundred Five and 61/100 Dollars ($7,605.61) each in advance on or before the first day of each month. 
  
 (iv) Commencing with the third anniversary of the Commencement Date and
continuing through the fourth Lease Year or earlier termination of this Lease, Tenant shall pay Minimum Rental of Ninety-Three Thousand Nine Hundred Sixty-Two and 18/100 Dollars ($93,962.18) [which represents a blended rate of $10.46 per rentable
square foot of the Premises], payable in equal monthly installments of Seven Thousand Eight Hundred Thirty and 18/100 Dollars ($7,830.18) each in advance on or before the first day of each month. 
  
 (v) Commencing with the fourth anniversary of the Commencement Date and
continuing through the Expiration Date or earlier termination of this Lease, Tenant shall pay Minimum Rental of Ninety-Six Thousand Eight Hundred Thirty-Six and 74/100 Dollars ($96,836.74) [which represents a blended rate of $10.78 per rentable
square foot of the Premises], payable in equal monthly installments of Eight Thousand Sixty-Nine and 73/100 Dollars ($8,069.73) each in advance on or before the first day of each month. For purposes hereof, if the Commencement Date is a date other
than the first day of a calendar month, the Minimum Rental shall be prorated daily from such date to the first day of the next calendar month and paid on the Commencement Date. 
  
 Notwithstanding the foregoing, if for any reason the Supplemental Improvement Allowance (as hereinafter defined) is not paid
to Tenant, Minimum Rental shall be adjusted as 
  

 2 

 follows: (i) for the third Lease Year, Minimum Rental shall be reduced to a blended rate of $7.75 per rentable square
foot of the Premises, (ii) for the fourth Lease Year, Minimum Rental shall be reduced to $7.98 per rentable square foot of the Premises, and (iii) for the fifth Lease Year, Minimum Rental shall be reduced to $8.22 per rentable square foot of the
Premises. 
  
 (b) Additional Rental. [Intentionally
Deleted] 
  
 (c) Tenant’s Share of Taxes. 

 
 Tenant shall pay an amount equal to Tenant’s “proportionate
share” of any ad valorem taxes (or any tax hereafter imposed in lieu thereof) imposed upon the Building and the Premises. Tenant’s “proportionate share” of the taxes, the insurance premiums and common area maintenance costs, as
described below, shall be a fraction, the numerator of which shall be the number of rentable square feet within the Premises and the denominator of which shall be the number of square feet within the Building. Tenant’s proportionate share of
taxes shall be paid as provided in subparagraph (f) below. Provided, any increase in ad valorem taxes on the Premises as a result of alterations, additions or improvements made by, for or on account of Tenant shall be reimbursed by Tenant to
Landlord within thirty (30) days after receipt of written demand therefor. 
  
 (d) Tenant’s Share of Insurance Premiums. 
  
 Tenant shall pay an amount equal to Tenant’s “proportionate share” of any premiums charged for fire and extended coverage and liability insurance with all endorsements carried by Landlord on the
Building payable for any calendar year (including any applicable partial calendar year), provided such premiums are not a direct result of another tenant’s use of its premises in the Building. Tenant’s proportionate share of premiums shall
be paid as provided in subparagraph (f) below. 
  
 (e)
Tenant’s Share of Common Area Operating and Maintenance Costs. 
  
 Tenant shall pay an amount equal to Tenant’s “proportionate share” of the reasonable costs for operating and maintaining the Building’s common areas, including, but not limited to, building
management, the cost of grass mowing, shrub care and general landscaping, irrigation systems, maintenance and repair to parking and loading areas, driveways, sidewalks, exterior lighting, garbage collection and disposal, common water and sewer,
common plumbing, common signs and other facilities shared by the various tenants in the Building, and of the Building’s share of the common area operating and maintenance costs for the entire Business Park (including without limitation a
general Business Park fee). Landlord shall use good faith efforts to keep the operating and maintenance costs in line with costs for other similarly situated buildings in the Raleigh/Durham market, taking into account rent and other relevant
factors. Tenant’s proportionate share shall be paid as provided in subparagraph (f) below. For purposes hereof, the expenses identified in subparagraphs (c), (d) and (e) of this Section shall be deemed the “Tenant Expenses.”

  

 3 

 (f) Payment of Proportionate Shares. 
  
 Tenant shall pay to Landlord each month, along with Tenant’s
installments of Minimum Rental (and Additional Rental, if applicable) a sum equal to one-twelfth (1/12) of the amount estimated by Landlord (in its reasonable discretion) as Tenant’s proportionate share of the Tenant Expenses for each calendar
year. For the first calendar year beginning with January 1, 1998, the amount of Tenant’s estimated proportionate share of all Tenant Expenses shall be Thirteen Thousand Four Hundred Seventy-Five and No/100 Dollars ($13,475.00) [which represents
$1.50 per rentable square foot of the Premises], payable in advance in equal monthly installments of One Thousand One Hundred Twenty-Two and 92/100 Dollars ($1,122.92). Landlord will make reasonable efforts to provide Tenant with Landlord’s
estimate of Tenant’s proportionate share of Tenant Expenses for the upcoming calendar year on or before December 15 of each calendar year during the Term hereof. If Landlord fails to notify Tenant of Tenant’s revised proportionate share of
Tenant Expenses by such date, Tenant shall continue to pay the monthly installments of the proportionate share amount, if any, last payable by Tenant until notified by Landlord of such new estimated amount. No later than May l of each calendar year
of the Term, Landlord shall deliver to Tenant a written statement setting forth the actual amount of Tenant’s proportionate shares of the Tenant Expenses for the preceding calendar year. Tenant shall pay the total amount of any balance due
shown on such statement within thirty (30) days after its delivery. In the event such annual costs decrease for any such year, Landlord shall reimburse Tenant for any overage paid and the monthly rental installments for the next period shall be
reduced accordingly, but not below the Minimum Rental. For the calendar year in which this Lease commences, the proportionate shares of such amounts shall be prorated from the Commencement Date through December 31 of such year. Further, Tenant shall
be responsible for payment of its proportionate share of Tenant Expenses for the calendar year in which the Term expires, prorated from January 1 thereof through the Expiration Date. Upon the Expiration Date, Landlord may elect either (i) to require
Tenant to pay any unpaid estimated proportionate shares within thirty (30) days after the Expiration Date, which estimate shall be made by Landlord based upon actual and estimated costs for such year, or (ii) to withhold from Tenant’s security
deposit an amount equal to one hundred twenty-five percent (125%) of any estimated proportionate shares until the exact amount payable for such proportionate shares shall have been determined, after which Landlord shall return any excess security
deposit to Tenant. 
  
 (g) Documentary Tax. 
  
 Landlord represents that there is currently no documentary stamp tax, sales
tax or any other tax or similar charge (exclusive of any income tax payable by Landlord as a result hereof) which will be levied on the rental, leasing or letting of the Premises, however, in the event that any such charge or tax, whether local,
state or federal, becomes applicable to the rental, leasing or letting of the Premises and is required to be paid due to the execution hereof or otherwise with respect to this Lease or the payments due hereunder (exclusive of any income payable by
Landlord as a result hereof), the cost thereof shall be borne by Tenant and shall be paid promptly and prior to same becoming past due. Tenant shall provide Landlord with copies of all paid receipts respecting such tax or charge promptly after
payment of same. 
  

 4 

 (h) Late Payment. 
  
 If any monthly installment of Minimum Rental, Additional Rental (if any) or any other sum due and payable pursuant to this
Lease remains due and unpaid ten (10) days after said amount becomes due, Tenant shall pay as additional rent hereunder a late payment charge equal to the greater of (i) Five Hundred and No/100 Dollars ($500.00) or (ii) a sum equal to five percent
(5%) of the unpaid rent or other payment. All unpaid rent and other sums of whatever nature owed by Tenant to Landlord under this Lease shall bear interest from the tenth (10th) day after the due date thereof until paid at the lesser of two percent
(2%) per annum above the “prime rate” as published in the Wall Street Journal from time to time (the “Prime Rate”). Acceptance by Landlord of any payment from Tenant hereunder in an amount less than that which is currently due
shall in no way affect Landlord’s rights under this Lease and shall in no way constitute an accord and satisfaction. 
  
 4. DELIVERY AND UPFITTING OF PREMISES. 
  
 Tenant agrees that it is accepting the Premises in its “as is” base building condition without any further improvements thereto by Landlord.
Tenant agrees to deliver the final plans and specifications for the design and upfitting of the Premises (the “Plans”) to Landlord on or before October 24, 1997. Landlord shall not unreasonably withhold or delay its approval of such of the
Plans and agrees to provide Tenant with notice of any objections to the Plans within twenty (20) days after Landlord’s receipt of same. Upon approval by Landlord of the Plans, they shall be attached as Exhibit C to this Lease and made a
part hereof . Once the Plans have been approved by Landlord, Tenant shall promptly commence installation of the Tenant Improvements (as hereinafter defined) in Space-A in accordance with the Plans. Except as otherwise provided herein, Tenant shall
install the Tenant Improvements in Space-B in accordance with the Plans on or before the commencement of the third Lease Year. The general contractor retained by Tenant to install the Tenant Improvements shall be subject to Landlord’s prior
written approval; provided, however, Facilities Management Associates shall be deemed approved by Landlord. 
  
 Tenant will supervise the design, construction and installation of the initial improvements in the Premises (the “Tenant Improvements”) in
accordance with the Plans at Tenant’s sole cost and expense. Landlord agrees to pay Tenant at the time and in the manner set forth below an allowance (the “Tenant Improvement Allowance”) in the amount of Eighty Thousand Seven Hundred
Forty-Five and No/100 Dollars ($80,745.00) to cover the costs associated with the design, construction and installation of the Tenant Improvements in Space-A. Upon receipt of evidence from Tenant that such amounts have been expended in connection
with the design, construction and installation of the Tenant Improvements (together with such other information as Landlord may reasonably request from Tenant), Landlord shall, within twenty (20) days of Landlord’s receipt of such
documentation, pay to Tenant the amount of all cost and expenses shown thereby less the amount of any such payment or payments previously made by Landlord to Tenant; provided, however, such disbursements of the Tenant Improvement Allowance shall
occur not more frequently than monthly and the aggregate amount of all sums to be paid by Landlord to Tenant hereunder with respect to Space-A shall not in any event exceed the sum of 
  

 5 

 Eighty Thousand Seven Hundred Forty-Five and No/100 Dollars ($80,745.00); provided further, that Landlord shall have no
obligation hereunder to make any payment with respect to any such improvement which, when made, shall not be a fixture and thus part of the Building to be surrendered to Landlord upon the expiration of or earlier termination of this Lease. All
savings or unused portions of the Tenant Improvement Allowance shall be retained by Landlord. 
  
 In addition to the Tenant Improvement Allowance, provided: (i) no Event of Default has occurred and is continuing hereunder, and (ii) Landlord has reviewed and approved Tenant’s then-financial condition, Landlord
agrees to pay Tenant on or before the commencement of the third Lease Year an additional allowance (the “Supplemental Improvement Allowance”) in an amount up to Fifty-Four Thousand and No/100 Dollars ($54,000.00) for the design,
construction and installation of the Tenant Improvements in Space-B. Landlord shall disburse the Supplemental Improvements Allowance in the same manner as is set forth hereinabove with respect to the Tenant Improvement Allowance; provided, however,
that the aggregate amount of all sums to be paid by Landlord to Tenant hereunder with respect to the upfitting of Space-B shall not in any event exceed the sum of Fifty-Four Thousand and No/100 Dollars ($54,000.00), and provided further, that
Landlord shall have no obligation hereunder to make any payment with respect to any such improvement which, when made, shall not be a fixture and thus part of the Building to be surrendered to Landlord upon the expiration of or earlier termination
of this Lease. All savings or unused portions of the Supplemental Improvement Allowance shall be retained by Landlord. Notwithstanding anything contained herein to the contrary, Landlord’s obligation to provide the Supplemental Improvement
Allowance is contingent in all respects upon the substantial completion of the initial upfitting of Space-B. 
  
 In connection with the upfitting of both Space-A and Space-B, Tenant agrees to pay Landlord a construction management fee equal to four percent (4%) of
the total cost of constructing the Tenant Improvements; provided, however, in no event shall the construction management fee exceed $6,460 with respect to the upfitting of Space-A and $4,320 with respect to the upfitting of Space-B. In addition to
the Tenant Improvements, Tenant shall be solely responsible for the cost of constructing any demising wall(s) required by Landlord and any required suite entrances. 
  
 Notwithstanding anything contained herein to the contrary, upon the expiration or earlier termination of the Term or
Tenant’s vacating the Premises, Landlord may direct Tenant to restore the Premises to its “base building condition,” which for purposes hereof, shall be defined as the condition of the Premises as it existed when received by Tenant
together with such other Tenant Improvements as Landlord directs be left at the Premises; provided, however, Tenant’s restoration obligations with respect to the slab floor in the Premises shall be limited to restoring the floor to a level slab
of commercially reasonable tolerances (i.e. one-eighth of an inch per ten feet). All materials (including Tenant Improvements) which Landlord directs Tenant to remove from the Premises shall be the sole and exclusive property of Tenant. Within ten
(10) business days after Tenant’s request for same (such request to be made no earlier than sixty (60) days prior to the expiration or earlier termination of the Term), Landlord shall provide Tenant with a list of those Tenant Improvements
which Landlord directs be left at the Premises upon the expiration of the Term. Notwithstanding the foregoing, in the event Landlord re-leases the 
  

 6 

 Premises to a third party which intends to use the Premises in a manner consistent with Tenant’s use, Landlord may
elect, at the expiration or earlier termination of the Term, to accept the Premises from Tenant in its then-current condition or with only minor variations thereto. 
  
 5. ALTERATIONS AND IMPROVEMENTS BY TENANT. 
  
 Tenant shall make no structural changes respecting the Premises or the Building and shall make no changes of any kind
respecting the Premises or the Building that are visible from the exterior of the Premises without Landlord’s consent, to be granted or withheld in Landlord’s sole discretion. Except for the initial upfitting of the Premises in accordance
with the Plans, any other nonstructural changes or other alterations, additions, or improvements to the Premises shall be made by or on behalf of Tenant only with the prior written consent of Landlord, which consent shall not be unreasonably
withheld or delayed. All alterations, additions or improvements, including without limitation all partitions, walls, railings, carpeting, floor and wall coverings and other fixtures (excluding, however, Tenant’s trade fixtures as described in
the paragraph entitled “Trade Fixtures and Equipment” below) 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, remain upon the Premises at the expiration or earlier termination of this Lease. 
  
 Notwithstanding anything contained herein to the contrary, all alterations and improvements undertaken by Tenant shall be consistent with the
then-existing quality, color scheme (where appropriate), general asthetic appearance and tenor of the balance of the Building and, in any event, Landlord may withhold its consent to any proposed alteration or improvement by Tenant unless Tenant
agrees to remove said improvement at the end of the Term and/or restore the Premises to the condition in which it existed prior to the undertaking of the proposed alteration or improvement. 
  
 6. USE OF PREMISES. 
  
 (a) Tenant shall use the Premises only for general office or laboratory
purposes and for no other purposes. Tenant shall comply with all laws, ordinances, orders, regulations or zoning classifications of any lawful governmental authority, agency or other public or private regulatory authority (including insurance
underwriters or rating bureaus) having jurisdiction over the Premises. Tenant shall not do any act or follow any practice relating to the Premises which shall constitute a nuisance or detract in any way from the reputation of the Building as a real
estate development comparable to other comparable buildings in the Raleigh/Durham market taking into account rent and other relevant factors. Tenant’s duties in this regard shall include allowing no noxious or offensive odors, fumes, gases,
smoke, dust, steam or vapors, or any loud or disturbing noise or vibrations to originate in or emit from the Premises. 
  
 (b) Without limiting the generality of (a) above, and excepting only office and laboratory supplies used in the ordinary course of Tenant’s business
and cleaning materials used by Tenant in its ordinary day to day business operations (but not held for sale, storage or distribution) and customarily used in facilities such as the Building, and then only to the extent 
  

 7 

 used, stored (but not any bulk storage), transported, and disposed of strictly in accordance with all applicable laws,
regulations and manufacturer’s recommendations, the Premises shall not be used for the treatment, storage, transportation to or from, use or disposal of toxic or hazardous wastes, materials, or substances, or any other substance that is
prohibited, limited or regulated by any governmental or quasi-governmental authority or that, even if not so regulated, could or does pose a hazard to health and safety of the occupants of the Building or surrounding property (collectively
“Hazardous Substances”). Prior to its occupancy of the Premise, Tenant shall provide Landlord with a list of any Hazardous Substances which it plans to introduce to the Premises and thereafter, on each anniversary of the Commencement Date,
Tenant shall update said list and identify which Hazardous Substances have been used within the Premises and which Hazardous Substances may be used within the Premises in the future. In addition, prior to Tenant’s occupancy of the Premises,
Tenant agrees to submit a plan detailing the method of disposal, storage and treatment of such Hazardous Substances to Landlord for Landlord’s approval; provided, however, so long as such method of disposal, storage and treatment of such
materials is in compliance with all applicable governmental rules and regulations, Landlord’s consent to such matters shall not be unreasonably withheld. Tenant shall be liable for, and shall indemnify and hold Landlord harmless from, all
costs, damages and expenses (including reasonable attorney’s fees) incurred in connection with the use, storage, discharge or disposal of any Hazardous Substances by Tenant or Tenant’s Invitees. 
  
 (c) Except for possible restrictions with respect to signage (which Tenant
agrees to abide by in connection with its use of the Premises), there are currently no restrictive covenants relating to the Building. 
  
 (d) Tenant shall exercise due care in its use and occupancy of the Premises and shall not commit or allow waste to be committed on any portion of the
Premises; and at the expiration or earlier termination of this Lease, Tenant shall deliver the Premises to Landlord in as good condition on the date of completion of the Tenant Improvements in the Premises, ordinary wear and tear, fire or other
casualty, condemnation and acts of God alone excepted. 
  
 (e)
Tenant shall save Landlord harmless from any claims, liabilities, penalties, fines, costs, expenses or damages resulting from the failure of Tenant to comply with the provisions of this paragraph 6. This indemnification shall survive the termination
or expiration of this Lease. 
  
 7. TAXES ON LEASE AND
TENANT’S PROPERTY. 
  
 (a) Landlord represents that
there are currently no taxes, documentary stamps or assessments of any nature which will be imposed or assessed upon this Lease, Tenant’s occupancy of the Premises or Tenant’s trade fixtures, equipment, machinery, inventory, merchandise or
other personal property located on the Premises and owned by or in the custody of Tenant; provided, however, in the event any such charge or tax becomes appliable to this Lease, Tenant’s occupancy of the Premises or Tenant’s equipment,
Tenant shall be fully responsible for the payment of same (exclusive of any income tax payable by Landlord as a result hereof) and shall pay such amount as promptly as all such taxes or assessments may become due and payable without any delinquency.

  

 8 

 (b) Landlord shall pay, subject to reimbursement from Tenant as provided in the paragraph entitled
“Rental” of this Lease, all ad valorem property taxes which are now or hereafter assessed upon the Building and the Premises (exclusive of any income tax payable by Landlord as a result hereof), except as otherwise expressly provided in
this Lease. 
  
 8. FIRE AND EXTENDED COVERAGE INSURANCE.

  
 Landlord shall maintain and pay for fire and casualty special
form “all risk” insurance, with extended coverage, covering the Building equal to at least eighty percent (80%) of the replacement cost thereof. Tenant shall not do or cause to be done or permit on the Premises or in the Building anything
deemed extrahazardous on account of fire and Tenant shall not use the Premises or the Building in any manner which will cause an increase in the premium rate for any insurance in effect on the Building or a part thereof. If, because of anything
done, caused to be done, permitted or omitted by Tenant or Tenant’s Invitees, the premium rate for any kind of insurance in effect on the Building or any part thereof shall be raised, Tenant shall pay Landlord on demand the amount of any such
increase in premium which Landlord shall pay for such insurance and if Landlord shall demand that Tenant remedy the condition which caused any such increase in an insurance premium rate, Tenant shall remedy such condition within five (5) days after
receipt of such demand. Tenant shall maintain and pay for all fire and extended coverage insurance on its contents in the Premises, including trade fixtures, equipment, machinery, merchandise or other personal property belonging to or in the custody
of Tenant. 
  
 Notwithstanding anything herein to the contrary,
Landlord reserves the right for itself, successors and assigns to self-insure against any risk required hereunder to be insured or otherwise assumed by Landlord so long as any such program of self-insurance affords the same coverage of risks and
benefits which would be afforded in the event Landlord procured insurance from a third-party insurer. 
  
 9. LANDLORD’S COVENANT TO REPAIR AND REPLACE. 
  
 (a) During the Term, Landlord shall be responsible only for repairs or replacements to the roof, exterior walls, structural members (including foundation
and subflooring of the Premises) and for the central plumbing and electrical systems serving the entire Building up to the respective applicable points of entry of same into the Premises except for repairs or replacements caused by the negligence,
misconduct, or acts or omissions of Tenant or Tenant’s Invitees unless such amounts are paid to Landlord pursuant to an insurance policy. Landlord shall maintain such items in compliance with applicable laws, regulations, ordinances and codes
or alternatively, any non-compliance shall not materially impair Tenant’s use and enjoyment of the Premises or constitute a threat or danger to the health or safety of Tenant or Tenant’s Invitees. Landlord’s repairs and replacements
shall be made as soon as reasonably possible using due diligence and reasonable efforts, taking into account in each instance all circumstances surrounding the repair or replacement, including without limitation, the materiality of the repair or
replacement to Tenant’s use and operations within the Premises and the relation thereof to the enjoyment of same, such period not to exceed one hundred eighty (180) days after receiving 
  

 9 

 written notice from Tenant of the need for repairs. If Landlord defaults in the performance of its obligation to repair
as set forth above, then (unless the need for such repairs or replacements is the result of the negligence, misconduct or intentional acts or omissions of Tenant or Tenant’s Invitees, in which event Tenant shall not be entitled to terminate
this Lease) either party may terminate this Lease effective upon thirty (30) days’ prior written notice, without prejudice to Landlord’s rights to receive payment from Tenant for uninsured damages caused directly or indirectly by Tenant or
Tenant’s Invitees. If the need for such repairs or replacements is the result of the negligence, misconduct or intentional acts or omissions of Tenant or Tenant’s Invitees, and the expense of such repairs or replacements are not fully
covered and paid by Landlord’s insurance, then Tenant shall pay Landlord the full amount of expenses not covered. Landlord’s duty to repair or replace as prescribed in this paragraph shall be Tenant’s sole remedy and shall be in lieu
of all other warranties or guaranties of Landlord, express or implied. 
  
 (b) Landlord shall not be liable for any failure to make any repairs or to perform any maintenance required of Landlord hereunder, following written notice from Tenant to Landlord setting forth the need for such repair(s) or replacement(s)
in reasonable detail, so long as Landlord is pursuing the completion of such repair(s) or replacement(s) using due diligence and reasonable efforts, taking into account in each instance all circumstances surrounding the repair or replacement,
including without limitation, the materiality of the repair or replacement to Tenant’s use and operations within the Premises and the relation thereof to the enjoyment of same. Except as set forth in the paragraph of this Lease, entitled
“Damage or Destruction of Premises”, there shall be no abatement of rent. There shall be no liability of Landlord by reason of any injury to or interference with Tenant’s business arising from the making of any repairs, replacements,
alterations or improvements to any portion of the Building or the Premises, or to fixtures, appurtenances and equipment therein. To the extent permitted under applicable law, Tenant waives the right to make repairs at Landlord’s expense under
any law, statute or ordinance now or hereafter in effect. 
  
 10.
TENANT’S COVENANT TO REPAIR. 
  
 Tenant shall be
responsible for the repair, replacement and maintenance in good order and condition of all parts and components of the Premises (other than those specified for repair, replacement and maintenance by Landlord above), including without limitation the
plumbing, wiring, electrical systems, HVAC system, glass and plate glass, equipment and machinery constituting fixtures, unless such repairs or replacements are required as a result of the negligence, misconduct or intentional acts or omissions of
Landlord, its agent(s), employee(s) or invitee(s) in which event Landlord shall be responsible for such repairs. At the end of the Term, Tenant shall return the Premises to Landlord in as good condition as they were when received, excepting only
normal wear and tear, acts of God and repairs required to be made by Landlord hereunder. Tenant’s duty to maintain the HVAC system shall specifically include the duty to enter into and maintain at Tenant’s sole expense during the entire
term of this Lease a contract for the routine and periodic maintenance and regular inspection of such HVAC system, the replacement of filters as recommended and the performance of other recommended periodic servicing in accordance with applicable
manufacturer’s standards and recommendations. Such contract: (a) shall be with a reputable contractor reasonably satisfactory to Landlord; (b) shall 
  

 10 

 satisfy the requirements for routine and periodic maintenance, if any, necessary to keep all applicable
manufacturer’s warranties in full force and effect; and (c) shall provide that in the event this Lease expires or is earlier terminated for any reason whatsoever that said contract shall be immediately terminable by Landlord or Tenant without
any cost, expense or other liability on the part of Landlord. 
  
 11. TRADE FIXTURES AND EQUIPMENT. 
  
 Prior to
installation, Tenant shall furnish to Landlord notice of all trade fixtures and equipment of a permanent nature which it intends to install within the Premises and the installation of same shall be subject to Landlord’s consent, not to be
unreasonably withheld (provided there is no modification to (i) the structural components of the Premises or the Building, or (ii) the Building systems, in which event Landlord’s consent may be granted or withheld in Landlord’s sole
discretion). So long as no Event of Default has occurred and is continuing hereunder, any trade fixtures and equipment installed in the Premises at Tenant’s expense and identified by Tenant in notice to Landlord (including without limitation,
all racks, counters, shelves, mirrors, chairs and other trade fixtures and equipment) shall remain Tenant’s personal property and Tenant shall have the right at any time during the Term to remove such trade fixtures and equipment. Upon removal
of any trade fixtures or equipment, Tenant shall immediately restore the Premises to substantially the same condition in which it existed when received by Tenant, ordinary wear and tear, condemnation and acts of God alone excepted. Any trade
fixtures not removed by Tenant within five (5) days after the expiration or an earlier termination of the Lease shall, at Landlord’s sole election, either (i) become the property of Landlord, in which event Landlord shall be entitled to handle
and dispose of same in any manner Landlord deems fit without any liability or obligation to Tenant or any other third party with respect thereto, or (ii) be subject to Landlord’s removing such property from the Premises and storing same, all at
Tenant’s expense and without any recourse against Landlord with respect thereto. Without limiting the generality of the foregoing and except as provided in Section 4 hereof, the following property shall in no event be deemed to be “trade
fixtures” and Tenant shall not remove any such property from the Premises under any circumstances, regardless of whether installed by Landlord or Tenant: (a) any air conditioning, air ventilating or heating fixtures or equipment; (b) any
lighting fixtures or equipment; (c) any carpeting or other permanent floor coverings; (d) any paneling or other wall coverings; (e) plumbing fixtures and equipment; or (f) permanent shelving. Notwithstanding anything contained herein to the
contrary, with respect to any installation within the Premises which creates or results in a penetration of the ceiling or roof of the Premises or the Building, Landlord’s consent to same shall not be unreasonably withheld so long as: (i) such
installation is necessary to the conduct of Tenant’s ordinary business operations within the Premises, (ii) such installation does not void or otherwise adversely impact Landlord’s roof warranty and (iii) such installation can practically
be made without material interference to the other structural components of the Premises or the Building. With respect to any proposed alteration by Tenant (other than the initial upfitting of the Premises), Tenant shall pay all actual out-of-pocket
expenses incurred by Landlord (to the extent commercially reasonable under the circumstances) in the course of its review and approval of such alterations. 
  

 11 

 12. UTILITIES. 
  
 Tenant shall pay for all utilities or services related to its use of the Premises including without limitation electricity,
gas, heat, water, sewer, telephone and janitorial services. To the extent that water and/or sewer usage are not separately metered for the Premises, Tenant shall pay its proportionate share of the applicable charges therefor, with such proportionate
share being as defined in subparagraph 3(c), and the manner for payment thereof shall be as set forth in subparagraph 3(f). Landlord shall not be responsible for the stoppage or interruption of utilities services other than as required by its
limited covenant to repair and replace set forth above, nor shall Landlord be liable for any damages caused by or from the plumbing and sewer systems. 
  
 13. DAMAGE OR DESTRUCTION OF PREMISES. 
  
 If the Premises are damaged by fire or other casualty, but are not rendered untenantable for Tenant’s business (as mutually determined by Landlord
and Tenant in their reasonable discretion), either in whole or in part, Landlord shall cause such damage to be repaired without unreasonable delay and the Annual Rental shall not abate. If by reason of such casualty the Premises are rendered
untenantable for Tenant’s business (as mutually determined by Landlord and Tenant in their reasonable discretion), either in whole or in part, Landlord shall cause the damage to the physical structure of the Building (excluding any Tenant
improvements or alterations therein) to be repaired or replaced without unreasonable delay, and, in the interim, the Annual Rental shall be proportionately reduced as to such portion of the Premises as is rendered untenantable. Any such abatement of
rent shall not, however, create an extension of the Term. Provided, however, if by reason of such casualty, the Premises are rendered untenantable in some material portion (as mutually determined by Landlord and Tenant in their
reasonable discretion), and Landlord, in its reasonable estimation, determines that the amount of time required to repair the damage using due diligence is in excess of one hundred eighty (180) days, then either party shall have the right to
terminate this Lease by giving written notice of termination within thirty (30) days after the date of casualty and, except for those obligations accruing prior to the effective date of termination, Tenant shall have no further obligation or
liability hereunder. Notwithstanding the foregoing, in the event the casualty giving rise to an election to terminate is caused by the negligence, misconduct or acts or omissions of Tenant or Tenant’s Invitees, Tenant shall have no right to
terminate this Lease. Notwithstanding the other provisions of this paragraph, in the event there should be a casualty loss to the Premises to the extent of fifty percent (50%) or more of the replacement value of the Premises or if the Premises is
rendered untenantable for the conduct of Tenant’s business operations during the last Lease Year of the Term or any extended term, as mutually determined by Landlord and Tenant in the exercise of their reasonable discretion, either party may,
at its option, terminate this Lease by giving written notice within thirty (30) days after the date of the casualty and the Annual Rental shall abate as of the date of such notice. Except as provided herein, Landlord shall have no obligation to
rebuild or repair in case of fire or other casualty, and no termination under this paragraph shall affect any rights of Landlord or Tenant hereunder because of prior defaults of the other party. Tenant shall give Landlord immediate notice of any
fire or other casualty in the Premises. 
  

 12 

 14. GOVERNMENTAL ORDERS. 
  
 Except as hereinbelow set forth regarding compliance of the physical structure of the Premises with the applicable
requirements of the Americans with Disabilities Act and the implementing regulations (the “ADA”) as of the Commencement Date, Tenant agrees, at its own expense, to comply promptly with all requirements of any legally constituted public
authority that may be in effect from time to time made necessary by reason of Tenant’s use or occupancy of the Premises. Landlord agrees to comply promptly with any such requirements if not made necessary by reason of Tenant’s use or
occupancy. With regard to the physical structure of the Premises, Landlord agrees to use good faith and due diligence to undertake those actions that are “readily achievable” (as such term is defined in the ADA) in order to attempt to
bring the physical structure of the Premises in compliance with the applicable requirements of the ADA in effect as of the Commencement Date. If it is determined that for any reason Landlord shall have failed to cause the physical structure of the
Premises to be brought into compliance with the ADA as of the Commencement Date (to at least the minimum extent required under applicable regulations then in effect), then Landlord, as its sole obligation and expenses, will take the action(s)
necessary to cause the physical structure of the Premises (excluding any Tenant improvements or alterations therein) to so comply, and Tenant acknowledges and agrees that Landlord has and shall have no other obligation or liability whatsoever to
Tenant, or to anyone claiming by or through Tenant, regarding any failure of the Premises or the activities therein to comply with the applicable requirements of the ADA. Landlord and Tenant agree, however, that if in order to comply with any of the
above requirements, the cost to Landlord or Tenant, as the case may be, shall exceed a sum equal to one (1) year’s rent, then the party who is obligated to comply with such requirements may terminate this Lease by giving written notice of
termination to the other party, which termination shall become effective sixty (60) days after receipt of such notice, and which notice shall eliminate the necessity of compliance with such requirement by the party giving such notice, unless the
party receiving such notice of termination shall, before termination becomes effective, pay to the party giving notice all costs of compliance in excess of one (1) year’s rent, or secure payment of said sum in a manner satisfactory to the party
giving notice. In the event of such termination, Tenant shall have no further obligation or liability hereunder except for those obligations accruing prior to the effective date of termination. Notwithstanding anything contained herein to the
contrary, it is agreed that: (a) Tenant is exclusively responsible for all compliance with all requirements of any legally constituted public authority in the event non-compliance relates to Tenant’s use of, or operations from, the Premises and
(b) in the event of non-compliance for which Landlord is responsible, Landlord shall not be deemed in breach of this Lease if such non-compliance does not materially impair Tenant’s use of the Premises or threaten or endanger the health or
safety of Tenant or Tenant’s Invitees. 
  
 15. MUTUAL
WAIVER OF SUBROGATION. 
  
 For the purpose of waiver of
subrogation, the parties mutually release and waive unto the other all rights to claim damages, costs or expenses for any injury to property caused by a casualty or any other matter whatsoever in, on or about the Premises if the amount of such
damage, cost or expense has been paid to such damaged party under the terms of any policy of insurance. All insurance policies carried with respect to this Lease, if permitted under applicable law, shall contain a provision whereby the insurer
waives, prior to loss, all rights of subrogation against either Landlord or Tenant. 
  

 13 

 16. SIGNS AND ADVERTISING. 
  
 (a) Tenant may install, at Tenant’s sole cost and expense, a tenant identification sign in accordance with Building
standards, such sign to be located at or near the Tenant’s front entrance to the Premises within the Building. 
  
 (b) In order to provide architectural control for the Building and Business Park, Tenant shall not install any exterior signs, marquees, billboards,
outside lighting fixtures and/or other decorations on the Premises. Landlord shall have the right to remove any such sign or other decoration and restore fully the Premises at the cost and expense of Tenant if any such exterior work is done without
Landlord’s prior written approval, which approval Landlord shall be entitled to withhold or deny in its sole discretion. Tenant shall not permit, allow or cause to be used in, on or about the Premises any sound production devices, mechanical or
moving display devices, bright lights, or other advertising media, the effect of which would be visible or audible from the exterior of the Premises. 
  
 17. INDEMNIFICATION AND LIABILITY INSURANCE. 
  
 (a) Tenant shall indemnify and save Landlord harmless against any and all claims, suits, demands, actions, fines, damages, and liabilities, and all costs
and expenses thereof (including without limitation reasonable attorneys’ fees) arising out of injury to persons (including death) or tangible property occurring in, on or about, or arising out of the Premises or other areas in the Building if
caused or occasioned wholly or in part by any act(s) or omission(s) of Tenant or Tenant’s Invitees, except if caused by any act(s) or omission(s) on the part of Landlord. The non-prevailing party shall also pay all costs, expenses and
reasonable attorneys’ fees that may be incurred by the prevailing party in enforcing the agreements of this Lease, whether incurred as a result of litigation or otherwise. Tenant shall give Landlord immediate notice of any such happening
causing injury to persons or tangible property. 
  
 (b) At all
times during the term of this Lease, Tenant shall at its own expense keep in force adequate public liability insurance under the terms of a commercial general liability policy (occurrence coverage) in the amount of not less than Two Million and
No/100 Dollars ($2,000,000.00) single limit with such company(ies) as shall from time to time be reasonably acceptable to Landlord (and to any lender having a mortgage interest in the Premises) and naming Landlord and Landlord’s agent as an
additional insured (and, if requested by Landlord from time to time, naming Landlord’s mortgagee as an additional insured). Such insurance shall include, without limitation, personal injury and contractual liability coverage for the performance
by Tenant of the indemnity agreements set forth in this Lease. Tenant shall first furnish to Landlord certificates of insurance evidencing the required coverage prior to the Commencement Date and thereafter prior to each policy renewal date. All
policies required of Tenant hereunder shall contain a provision whereby the insurer is not allowed to cancel or change materially the coverage without first giving thirty (30) days’ written notice to Landlord. 
  
 (c) In addition to the insurance described in Section 8 hereof, Landlord
shall keep in force during the Term such other insurance in such amounts and coverages as Landlord deems reasonably appropriate or is otherwise required of Landlord by a third party such as its lender. 
  

 14 

 18. LANDLORD’S RIGHT OF ENTRY. 
  
 Landlord, and those persons authorized by it, shall have the right to enter the Premises at all reasonable times and upon
reasonable notice for the purposes of making repairs, making connections, installing utilities, providing services to the Premises or for any other tenant, making inspections or showing the same to prospective tenants, purchasers and/or lenders, as
well as at any time in the event of emergency involving possible injury to property or persons in or around the Premises or the Building. 
  
 19. EMINENT DOMAIN. 
  
 If any substantial portion of the Premises is taken under the power of eminent domain (including any conveyance made in lieu thereof) or if such taking
shall materially impair the normal operation of Tenant’s business (as determined by Landlord and Tenant in their reasonable discretion), then either party shall have the right to terminate this Lease by giving written notice of such termination
within thirty (30) days after such taking. In the event Tenant elects to terminate this Lease, Tenant shall have no further obligation or liability hereunder except for those obligations accruing prior to the effective date of said termination. If
neither party elects to terminate this Lease, Landlord shall repair and restore the Premises to the best possible tenantable condition and the Annual Rental shall be proportionately and equitably reduced as of the date of the taking. All
compensation awarded for any taking (or the proceeds of a private sale in lieu thereof) shall be the property of Landlord whether such award is for compensation for damages to the Landlord’s or Tenant’s interest in the Premises, and Tenant
hereby assigns all of its interest in any such award to Landlord; provided, however, Landlord shall not have any interest in any separate award made to Tenant for loss of business, moving expense or the taking of Tenant’s trade fixtures or
equipment if a separate award for such items is made to Tenant and if such separate award does not reduce the award to Landlord. Tenant shall not be prevented from making a claim against the condemning party for any moving expenses, loss of profits,
or the taking of Tenant’s personal property to which Tenant may be entitled; provided, however, under no circumstances shall Tenant be permitted to pursue a claim for the loss of its leasehold interest in the Premises. 
  
 20. EVENTS OF DEFAULT AND REMEDIES. 
  
 (a) Upon the occurrence of any one or more of the following events (the
“Events of Default,” any one an “Event of Default”), the party not in default shall have the right to exercise any rights or remedies available in this Lease, at law or in equity. Events of Default shall be: 
  
 (i) Tenant’s failure to pay any rental or other sum of
money payable hereunder within ten (10) days after same becomes due; 
  
 (ii) Failure by either party to perform any other of the terms, covenants 
  

 15 

 or conditions contained in this Lease if not remedied within thirty (30) days after receipt of written
notice thereof, or if such default cannot be remedied within such period, such party does not within thirty (30) days after written notice thereof commence such act or acts as shall be necessary to remedy the default and shall not thereafter
diligently prosecute such cure and complete such act or acts within ninety (90) days after written notice thereof; 
  
 (iii) Tenant shall become bankrupt or insolvent, or file any debtor proceedings, or file pursuant to any statute a petition in bankruptcy
or insolvency or for reorganization, or file a petition for the appointment of a receiver or trustee for all or substantially all of Tenant’s assets and such petition or appointment shall not have been set aside within sixty (60) days from the
date of such petition or appointment, or if Tenant makes an assignment for the benefit of creditors, or petitions for or enters into an arrangement; or 
  
 (iv) Tenant vacates, abandons or fails to operate in the Premises or any substantial part thereof or allows its leasehold estate to be
taken under any writ of execution and such writ is not vacated or set aside within thirty (30) days. 
  
 (b) In addition to its other remedies, Landlord, upon an Event of Default by Tenant, shall have the immediate right, after any applicable grace period
expressed herein, to terminate and cancel this Lease and/or terminate Tenant’s right of possession, to reenter and remove all persons and properties from the Premises and dispose of such property as it deems fit, all without being guilty of
trespass or being liable for any damages caused thereby. If Landlord reenters the Premises, it may either terminate this Lease or, from time to time without terminating this Lease, terminate Tenant’s right of possession and make such
alterations and repairs as may be necessary or appropriate to relet the Premises and relet the Premises upon such terms and conditions as Landlord deems advisable without any responsibility on Landlord whatsoever to account to Tenant for any surplus
rents collected. No retaking of possession of the Premises by Landlord shall be deemed as an election to terminate this Lease unless a written notice of such intention is given by Landlord to Tenant at the time of reentry; but, notwithstanding any
such reentry or reletting without termination, Landlord may at any time thereafter elect to terminate for such previous default. In the event of an elected termination by Landlord, whether before or after reentry, Landlord may recover from Tenant
damages, including the costs of recovering the Premises and any costs incurred in reletting the Premises, and Tenant shall remain liable to Landlord for the total Annual Rental (which may at Landlord’s election be accelerated to be due and
payable in full as of the Event of Default and recoverable as damages in a lump sum) as would have been payable by Tenant hereunder for the remainder of the term less the rentals actually received from any reletting or, at Landlord’s election,
less the reasonable rental value of the Premises for the remainder of the term. In determining the Annual Rental which would be payable by Tenant subsequent to default, the Annual Rental for each Lease Year of the unexpired term shall be equal to
the Annual Rental payable by Tenant for the last Lease Year prior to the default. If any rent owing under this Lease is collected by or through an attorney, Tenant agrees to pay Landlord’s reasonable attorneys’ fees to the extent allowed
by applicable law. Landlord shall be required to reasonably mitigate its damages. 
  

 16 

 21. SUBORDINATION. 
  
 This Lease is subject and subordinate to any and all mortgages or deeds of trust currently existing on the property of which
the Premises is a part, and this clause shall be self-operative without any further instrument necessary to effect such subordination; however, if requested by Landlord, Tenant shall promptly execute and deliver to Landlord any such certificate(s)
in a commercially reasonable form as Landlord may reasonably request evidencing the subordination of this Lease to or the assignment of this Lease as additional security for such mortgages or deeds of trust; provided, further, upon Tenant’s
request, Landlord shall use reasonable efforts to obtain a non-disturbance agreement in a commercially reasonable form from any such mortgagee, trustee or beneficiary currently having an interest in all or any portion of the Premises. Subject to the
condition precedent that Landlord provide Tenant with a non-disturbance agreement in a commercially reasonable form in favor of Tenant from any mortgagee, trustee or beneficiary, this Lease shall be subject and subordinate to any mortgage or deed of
trust which may hereafter encumber the property of which the Premises is a part. Tenant’s obligations under this Lease shall continue in full force and effect notwithstanding any such default proceedings under a mortgage or deed of trust and
shall attorn to the mortgagee, trustee or beneficiary of such mortgage or deed of trust, and their successors or assigns, and to the transferee under any foreclosure or default proceedings and subject to the terms of the non-disturbance agreement,
the mortgagee, trustee or beneficiary or their successors or assigns shall be bound by all of the obligations of Landlord under this Lease which accrue after such foreclosure or default proceeding. Tenant will, upon request by Landlord, execute and
deliver to Landlord or to any other person designated by Landlord, any instrument or instruments in a commercially reasonable form required to give effect to the provisions of this paragraph. 
  
 22. ASSIGNING AND SUBLETTING. 
  
 Tenant shall not assign, sublet, mortgage, pledge or encumber this Lease,
the Premises, or any interest in the whole or in any portion thereof, directly or indirectly, without the prior written consent of Landlord, which consent shall not be unreasonably withheld or delayed. In the event of any assignment, sublease,
mortgage, pledge or encumbrance, Tenant shall: (i) remain primarily liable for the performance of all terms of this Lease, (ii) pay all reasonable costs, including without limitation, attorney’s fees, incurred by Landlord in connection with
such assignment, sublease or mortgage, and (iii) pay to Landlord one-half (1/2) of any rental or any fees or charges received by Tenant in excess of the Annual Rental payable to Landlord hereunder as further rental under this Lease. Landlord’s
consent to one assignment or sublease will not waive the requirement of its consent to any subsequent assignment or sublease as required herein. Upon notice to Landlord of a proposed sublease or assignment of all or any portion of the Premises (in
excess of fifty percent (50%) of the rentable square footage of the Premises) for the balance of the Term (the “Proposed Space”), Landlord shall have the option within fifteen (15) days after its receipt of such notice, to terminate this
Lease with respect to the Proposed Space, whereupon the parties hereto shall have no further rights or liabilities with respect to the Proposed Space except as otherwise expressly set forth herein. 
  

 17 

 In the event of a proposed assignment of this Lease or subletting of all or a part of the Premises,
Tenant shall submit to Landlord, in writing, (i) the name of the proposed assignee or sublessee, (ii) current financial statements, if any, available to Tenant disclosing the financial condition of the proposed assignee or subtenant, (iii) the
nature of the business of the proposed assignee or sublessee, and its proposed use of the Premises (any assignment or subletting being subject to restrictions on use contained in this Lease, the violation of which by the proposed assignee or
sublessee shall constitute absolute grounds for Landlord’s denial of the requested assignment or subletting, such grounds not being the exclusive grounds for denial under clause (iii)) and (iv) the proposed commencement date of the assignment
or subletting, together with a copy of the proposed assignment or sublease. Within fifteen (15) days after its receipt of such notice, Landlord shall either approve or disapprove such proposed assignment or sublease in writing or give Tenant notice
of its election to terminate this Lease with respect to the Proposed Space (as hereinabove described). Landlord’s failure to notify Tenant within such fifteen (15) day period shall be deemed an approval of such proposal. 
  
 Notwithstanding anything in this Lease to the contrary, Tenant further agrees
that any assignment or sublease shall be subject to the following additional limitations: (i) in no event may Tenant assign this Lease or sublet all or any portion of the Premises to an existing Tenant of the Business Park or its subtenant or
assignee (unless Landlord consents to such assignment or sublease, such consent not to be unreasonably withheld); (ii) in no event shall the proposed subtenant or assignee be a person or entity with whom Landlord or its agent is negotiating and to
or from whom Landlord, or its agent, has given or received any written or oral proposal within the past six (6) months regarding a lease of space in the Business Park; and (iii) Tenant shall not publicly advertise the rate for which Tenant is
willing to sublet the Premises; and all public advertisements of the assignment of the Lease or sublet of the Premises, or any portion thereof, shall be subject to prior written approval by Landlord, such approval not to be unreasonably withheld or
delayed. Said public advertisement shall include, but not be limited to, the placement or display of any signs or lettering on the exterior of the Premises or on the glass or any window or door of the Premises or in the interior of the Premises if
it is visible from the exterior. 
  
 23. TRANSFER OF
LANDLORD’S INTEREST. 
  
 If Landlord shall sell, assign
or transfer all or any part of its interest in the Premises or in this Lease to a successor in interest which expressly assumes the obligations of Landlord hereunder, then Landlord shall thereupon be released or discharged from all covenants and
obligations hereunder, and Tenant shall look solely to such successor in interest for performance of all of Landlord’s obligations and such successor shall be obligated to perform all of Landlord’s obligations under this Lease which accrue
after the date of such transfer. Tenant’s obligations under this Lease shall in no manner be affected by Landlord’s sale, assignment, or transfer of all or any part of such interest(s) of Landlord, and Tenant shall thereafter attorn and
look solely to such successor in interest as the Landlord hereunder. 
  

 18 

 24. COVENANT OF QUIET ENJOYMENT. 
  
 Landlord represents that it has full right and authority to lease the Premises and Tenant shall peacefully and quietly hold
and enjoy the Premises for the full term hereof so long as no Event of Default occurs hereunder. 
  
 25. ESTOPPEL CERTIFICATES. 
  
 Within twenty (20) days after a request by Landlord, Tenant shall deliver a written estoppel certificate, in form supplied by or acceptable to Landlord,
certifying any facts that are then true with respect to this Lease, including without limitation that this Lease is in full force and effect, that no Event of Default exists on the part of Landlord or Tenant, that Tenant is in possession, that
Tenant has commenced the payment of rent, and that Tenant claims no defenses or offsets with respect to payment of rentals under this Lease. Likewise, within ten (10) days after a request by Tenant, Landlord shall deliver to Tenant a similar
estoppel certificate covering such matters as are reasonably required by Tenant. 
  
 26. PROTECTION AGAINST LIENS. 
  
 Tenant shall do all things necessary to prevent the filing of any mechanics’, materialmen’s or other types of liens whatsoever, against all or any part of the Premises by reason of any claims made by, against, through or under
Tenant. If any such lien is filed against the Premises, Tenant shall either cause the same to be discharged of record within twenty (20) days after filing or, if Tenant in its discretion and in good faith determines that such lien should be
contested, it shall furnish such security as may be necessary to prevent any foreclosure proceedings against the Premises during the pendency of such contest. If Tenant shall fail to discharge such lien within said time period or fail to furnish
such security, then Landlord may at its election, in addition to any other right or remedy available to it, discharge the lien by paying the amount claimed to be due or by procuring the discharge by giving security or in such other manner as may be
allowed by law. If Landlord acts to discharge or secure the lien then Tenant shall immediately reimburse Landlord for all sums paid and all costs and expenses (including reasonable attorneys’ fees) incurred by Landlord involving such lien
together with interest on the total expenses and costs at an interest rate equal to the Prime Rate plus two percent (2%). 
  
 27. MEMORANDUM OF LEASE. 
  
 If requested by Tenant, Landlord shall execute a recordable Memorandum or Short Form Lease, prepared at Tenant’s expense, specifying the exact term
of this Lease and such other terms as the parties shall mutually determine. 
  
 28. FORCE MAJEURE. 
  
 In
the event Landlord or Tenant shall be delayed, hindered or prevented from the performance of any act required hereunder, by reason of governmental restrictions, scarcity of labor or materials, strikes, fire, or any other reasons beyond its
reasonable control, the 
  

 19 

 performance of such act shall be excused for the period of delay, and the period for performance of any such act shall be
extended as necessary to complete performance after the delay period. However, the provisions of this paragraph shall in no way be applicable to Tenant’s obligations to pay Annual Rental or any other sums, monies, costs, charges or expenses
required by this Lease. 
  
 29. REMEDIES CUMULATIVE —
NONWAIVER. 
  
 Unless otherwise specified in this Lease, no
remedy of Landlord or Tenant shall be considered exclusive of any other remedy, but each shall be distinct, separate and cumulative with other available remedies. Each remedy available under this Lease or at law or in equity may be exercised by
Landlord or Tenant from time to time as often as the need may arise. No course of dealing between Landlord and Tenant or any delay or omission of Landlord or Tenant in exercising any right arising from the other party’s default shall impair
such right or be construed to be a waiver of a default. 
  
 30.
HOLDING OVER. 
  
 If Tenant remains in possession of the
Premises or any part thereof after the expiration of the Term, whether with or without Landlord’s acquiescence, Tenant shall be deemed only a tenant at will and there shall be no renewal of this Lease without a written agreement signed by both
parties specifying such renewal. The “monthly” rental payable by Tenant during any such tenancy at will period shall be one hundred fifty percent (150%) of the monthly installments of Annual Rental payable during the final Lease Year
immediately preceding such expiration. Tenant shall also remain liable for any and all damages, direct and consequential, suffered by Landlord as a result of any holdover without Landlord’s unequivocal written acquiescence. 
  
 31. NOTICES. 
  
 Any notice allowed or required by this Lease shall be deemed to have been
sufficiently served if the same shall be in writing and placed in the United States mail, via certified mail or registered mail, return receipt requested, with proper postage prepaid or delivered by a nationally recognized overnight courier, and
addressed as follows: 
  

			
	 AS TO LANDLORD:
	 	 Petula Associates, Ltd.

	 	 	 Commercial Real Estate Equities

	 	 	 711 High Street

	 	 	 Des Moines, IA 50392

		
	 Attention:
	 	 Bruce K. Bruene

		
	 WITH A COPY TO:
	 	 Tri Properties

	 	 	 Royal Center Property Manager

	 	 	 1009 Slater Road, Suite 110

	 	 	 Durham, NC 27703

  

 20 

			
	 Attention:
	  	 David M. Adams

		
	 AS TO TENANT:
	  	 ICAgen, Inc.

	 	  	 4222 Emperor Boulevard, Suite 390

	 	  	 Durham, NC 27703

		
	 Attention:
	  	 Kay Wagoner

  
 The addresses of
Landlord and Tenant and the party, if any, to whose attention a notice or copy of same shall be directed may be changed or added from time to time by either party giving notice to the other in the prescribed manner. 
  
 32. LEASING COMMISSION. 
  
 Landlord and Tenant represent and warrant each to the other that they have
not dealt with any broker(s) or any other person claiming any entitlement to any commission in connection with this transaction except TriProperties, Inc. as agent for Landlord (the “Broker”). Landlord and Tenant agree to indemnify and
save each other harmless from and against any and all claims, suits, liabilities, costs, judgments and expenses, including reasonable attorneys’ fees, for any leasing commissions or other commissions, fees, charges or payments resulting from or
arising out of their respective actions in connection with this Lease except as to Broker. Landlord agrees to be responsible for the leasing commission due Broker pursuant to a separate written agreement between Landlord and Broker, and to hold
Tenant harmless respecting same. 
  
 33. MISCELLANEOUS.

  
 (a) Rules and Regulations. 
  
 Landlord shall have the right from time to time to prescribe reasonable rules
and regulations (the “Rules and Regulations”) for Tenant’s use of the Premises and the Building. A copy of Landlord’s current Rules and Regulations respecting the Premises and the Building is attached hereto as Exhibit
“D”. Tenant shall abide by and actively enforce on all its employees, agents, invitees and licensees such regulations including without limitation rules governing parking of vehicles in designated areas, provided Tenant has received
written copies of such regulations and any amendments or revisions thereto. 
  
 (b) Evidence of Authority. 
  
 If requested by Landlord, Tenant shall furnish appropriate legal documentation evidencing the valid existence and good standing of Tenant and the authority of any parties signing this Lease to act for Tenant. 
  

 21 

 (c) Limitation of Landlord’s Liability. 
  
 If Landlord shall fail to perform any covenant, term or condition of this
Lease upon Landlord’s part to be performed within thirty (30) days after written notice from Tenant (unless such condition is incapable of being cured within said thirty (30) day period, in which event it shall not be deemed a default so long
as Landlord is diligently pursuing the completion of same), and, as a consequence of such default, Tenant shall recover a money judgment against Landlord, such judgment shall be satisfied solely out of the proceeds of sale received upon execution of
such judgment levied thereon against the right, title and interest of Landlord in the Building as the same may then be encumbered; and neither Landlord nor, if Landlord be a partnership, any of the partners comprising Landlord shall have any
personal liability for any deficiency. It is understood and agreed that in no event shall Tenant or any person claiming by or through Tenant have the right to levy execution against any property of Landlord other than its interest in the Building as
hereinbefore expressly provided. 
  
 (d) Nature and Extent of
Agreement. 
  
 This Lease, together with all exhibits hereto,
contains the complete agreement of the parties concerning the subject matter, and there are no oral or written understandings, representations, or agreements pertaining thereto which have not been incorporated herein. This Lease creates only the
relationship of landlord and tenant between the parties, and nothing herein shall impose upon either party any powers, obligations or restrictions not expressed herein. This Lease shall be construed and governed by the laws of the state in which the
Premises are located. 
  
 (e) Binding Effect. 

 
 This Lease shall be binding upon and shall inure to the benefit of the
parties hereto and their respective heirs, successors and assigns. This Lease shall not be binding on Landlord until executed by a Vice President of Landlord and delivered to Tenant. No amendment or modification to this Lease shall be binding upon
Landlord unless same is in writing and executed by a Vice President of Landlord. 
  
 (f) Captions and Headings. 
  
 The captions and headings in this Lease are for convenience and reference only, and they shall in no way be held to explain, modify, or construe the meaning of the terms of this Lease. 
  
 (g) Security Deposit. 
  
 Tenant has paid to Landlord upon signing this Lease Four Thousand Six
Hundred Twenty-One and 50/100 Dollars ($4,621.50) (the “Deposit”) as security for Tenant’s performance of all obligations hereunder. The Deposit may be held by Landlord in such manner as it shall elect and Landlord shall be entitled
to the interest (if any) which accrues on the Deposit. In the event of a default by Tenant, Landlord may, at its option, apply all or any part of the Deposit to cure the default, and thereupon Tenant shall immediately redeposit with Landlord the
amount so applied in order that Landlord will always have the full Deposit on hand during the term of this Lease. Upon the termination of this Lease, provided that Tenant is not in default hereunder, 
  

 22 

 Landlord shall refund to Tenant any of the remaining balance of the Deposit subject to final adjustments for payment of
any rental required by this Lease. If the Premises is sold, Landlord shall have the right to transfer the Deposit to the new owner, and upon the new owner’s express assumption of the obligations for the Deposit required by this Lease, Landlord
shall thereupon be released from all liability for such Deposit, and Tenant thereafter shall look only to the new owner for such Deposit. The terms hereof shall apply to every transfer of the Deposit. 
  
 (h) Right to Relocate. [Intentionally Deleted] 
  
 (i) Lease Review. 
  
 The submission of this Lease to Tenant for review does not constitute a
reservation of or option for the Premises, and this Lease shall become effective as a contract only upon execution and delivery by Landlord and Tenant. 
  
 (j) Principal Mutual Approval. This Lease is subject to approval by the Principal Mutual Life Insurance Company Investment Committee and the Board
of Directors of Petula Associates, Ltd. 
  
 34.
SEVERABILITY. 
  
 If any term or provision of this Lease
or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to persons or circumstances other than those as to which it is held
invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and enforced to the fullest extent permitted by law notwithstanding the invalidity of any other term or provision hereof. 

 
 35. REVIEW OF DOCUMENTS. 
  
 If, following the execution of this Lease, either party hereto requests that
the other party 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 the party making such request shall be responsible for paying the out-of-pocket costs and expenses, including without limitation, the attorneys fees, incurred by the
requested party 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 the requested party. In the event
the requesting party is Tenant, 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. 
  

 23 

 IN WITNESS WHEREOF, the parties have caused this Lease to be duly executed and sealed pursuant to
authority duly given as of the day and year first above written. 
  

					
	 	  	 “LANDLORD”

		
	 	  	 PETULA ASSOCIATES, LTD.

	 ATTEST:
	  	 	 	 
			
	 /s/ Ronald B. Franklin

	  	 By:
	 	 /s/ Michael S. Duffy

	 Vice President & Secretary
	  	 	 	 Michael S. Duffy, Vice President

			
	 [CORPORATE SEAL]
	  	 	 	 
		
	 	  	 “TENANT”

		
	 	  	 ICAGEN, INC.

	 ATTEST:
	  	 	 	 
			
	 /s/ Mary Ann Windon

	  	 By:
	 	 /s/ P. Kay Wagoner

	 Asst. Secretary
	  	 	 	                                  President

			
	 [CORPORATE SEAL]
	  	 	 	 

  

 24 

			
	 STATE OF NC
	 	(Corporate Acknowledgement)
		
	 COUNTY OF DURHAM
	 	 

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

	
	 /s/ W. E. Walker

	 Notary Public

  
 My Commission Expires: 
  
 7/15/02

  
 [NOTARIAL SEAL OR STAMP] 
  

 25 

 EXHIBIT “A” 
  
 LEGAL DESCRIPTION OF BUILDING SITE 
  

[SITE PLAN APPEARS HERE] 

 EXHIBIT “B” 
  
 [FLOOR PLANS APPEAR HERE] 

 EXHIBIT “C” 
  
 FINAL PLANS 
  
 [To be attached upon approval by Landlord] 

 EXHIBIT “D” 
  
 RULES AND REGULATIONS 
  
 The following rules and regulations have been adopted by the Landlord for the care, protection and benefit of the Building and for the general comfort and
welfare of the tenants. These Rules and Regulations shall remain in full force and effect until Tenant is notified in writing by Landlord of any changes and amendments. To the extent any of the Rules and Regulations set forth herein are inconsistent
with the provisions of the Lease, the terms and conditions of the Lease shall prevail. 
  
 1. The sidewalks, entrances, halls, passages, elevators and stairways shall not be obstructed or used by Tenant for any other purpose than for ingress and egress. All loading and unloading of goods, furniture,
fixtures, equipment and supplies shall be done only in areas and through entrances designated for such purposes. 
  
 2. Toilet rooms and other plumbing facilities shall not be used for any purpose other than those for which they are constructed and no foreign substance
of any kind shall be disposed of therein. All repairs required due to breakage, stoppage or damage resulting from a violation of this provision shall be at Tenant’s sole expense. 
  
 3. Tenant shall not do anything in the Premises, or bring or keep anything therein, which shall in any way conflict with any
law, ordinance, rule or regulation affecting the occupancy and use of the Premises, which are or may hereafter be enacted or promulgated by any public authority or by the Board of Fire Underwriters. 
  
 4. Tenant shall at all times maintain an adequate number of suitable fire
extinguishers on the Premises for use in case of local fires, including electrical fires. 
  
 5. Tenant shall keep the Premises heated at a temperature sufficiently high to prevent freezing of water in pipes and fixtures. 
  

6. Trucks shall not be allowed to remain overnight in the common area whether loaded, unloaded or otherwise, without Landlord’s prior written
consent. 
  
 7. All garbage and refuse shall be placed for
collection in containers specified by Landlord outside the Premises or Building. Tenant shall pay the cost of removal of any of Tenant’s refuse or rubbish. 
  

8. Tenant shall, at Tenant’s expense, provide for regular pest extermination to the Premises and shall provide Landlord with a copy of such
extermination contract. 

 9. In order to insure proper use and care of the Premises, neither the Tenant nor agent nor employee of
Tenant shall: 
  
 (a) Allow any furniture,
packages or articles of any kind to remain in corridors except for short periods incidental to moving same in or out of Building or to cleaning or rearranging occupancy of leased space. 
  
 (b) Mark or defile elevators, toilet rooms, walls, windows, doors or any part of the Building. 

 
 (c) Except for “seeing-eye” dogs, keep animals
or birds on the Premises. 
  
 (d) Deposit waste
paper, dirt or other substances in corridors, stairways, elevators, toilets, restrooms, or any other part of the Building not leased by Tenant. 
  
 (e) Except for pictures, wall hangings and other customary decorations and items which would not cause permanent damage to the structural
elements of the Building, fasten any article, drill holes, drive nails or screws into walls, floors, doors, or partitions or otherwise mar or deface them by paint, papers or otherwise, without Landlord’s prior written consent. 
  
 (f) Operate any machinery within the Building except
customary warehouse, training and office equipment, such as computers, dictaphones, calculators, electric typewriters, televisions, video cassette recorders and the like and except for other special equipment or machinery used in the trade or
profession of the Tenant and used in the ordinary course of Tenant’s business operations. 
  
 (g) Leave Premises unoccupied without locking all exterior doors and turning off all water outlets. 
  
 (h) Burn any trash, refuse, debris or garbage of any kind in
or about the Premises or Building. 
  
 (i) Attach
awnings, air-conditioning units or other fixtures to the outside walls or window sills, or otherwise affix such so as to project from the Premises or Building without Landlord’s prior written consent. 
  
 (j) Except for Tenant’s installation of a key card
security system, install additional locks or bolts of any kind on any doors or windows of the Premises without Landlord’s prior written consent. On the termination of Tenant’s tenancy, Tenant shall deliver to Landlord all keys to the
Premises, either furnished to or otherwise procured by Tenant. 
  
 (k) Install or operate any engine, boiler, machinery, or stove, or use oil or any burning fluid (other than gas) for heating, warming or lighting, or use any lighting other than incandescent or fluorescent electric
lights, on the Premises without Landlord’s prior written consent. All stoves permitted in the Premises shall be placed and installed according to city ordinances. No articles deemed extra hazardous on account of fire, and no explosives, shall
be brought into the Premises. 

 (l) Use loudspeakers, televisions, radios or other devices in such a manner as to be
heard outside the Premises, or make, or permit to be made, any unseeming or disturbing noises, nuisance or other activity objectionable to other tenants. 
  
 (m) Use the Premises for the purpose of lodging or sleeping rooms, or for any illegal purposes. 
  
 (n) Install any aerial, antenna, satellite dish or other
equipment or structure on the roof or exterior walls of the Premises, or on the grounds without, in each instance, the prior written consent of Landlord. Any installation so made without such prior written consent shall be subject to removal without
notice at any time, at Tenant’s expense. 
  
 10. Landlord
shall have the right to prohibit any advertising by Tenant which, in its opinion, shall damage the reputation of the Building or its desirability, and upon written notice from Landlord, Tenant shall discontinue any such advertising. 
  
 11. Except for deliveries in the ordinary course of Tenant’s business,
Landlord reserves the right to designate the time when and method whereby freight, furniture, safes, goods, merchandise and other articles may be brought into, moved or taken from the Building and the Premises leased by Tenant; and workmen employed,
designated or approved by Landlord must be employed by Tenants for repairs, painting, material moving and other similar work that may be done on the Premises. 
  

12. Tenant will reimburse Landlord for the cost of repairing any damage to the Premises or other parts of the Building caused by Tenant or the agents
or employees of Tenant, including replacing any glass broken. 
  
 13. Tenant shall not install in the Premises any metal safes or permit any concentration of excessive weight in any portion thereof without first having obtained the written permission of Landlord. 
  
 14. Landlord reserves the right at all times to exclude newsboys, loiterers,
vendors, solicitors and peddlers, from the Building or common area and to require registration, satisfactory identification and credentials from all person seeking access to any part of the Building or common area outside of ordinary business hours.
Ordinary business hours shall mean Monday through Friday, 8:00 a.m. to 6:00 p.m., except on legal holidays. Landlord shall exercise its best judgment in the execution of such control but shall not be held liable for the granting or refusal of such
access. Landlord reserves the right to exclude the general public from the building after ordinary business hours and on weekends and holidays. 
  
 15. The attaching of wires to the outside of the Building is absolutely prohibited, and no wires shall be run or installed in any part of the Building
without the Landlord’s permission and direction. 

 16. Requests for services of janitors or other Building employees must be made to the Landlord. Agents or
employees of Landlord shall not perform any work or do anything outside of their regular duties unless under special instructions from Landlord. 
  
 17. Signs or any other Tenant identification shall be in accordance with building standard signage. No signs of any nature shall be placed in the windows
so as to be visible from the exterior of the Building. All signs not approved in writing by Landlord shall be subject to removal without notice. 
  
 18. Except as otherwise set forth in the Lease, any improvements or alterations to the Premises by Tenant shall be approved in advance by Landlord and all
such work, if approved, shall be done at Tenant’s sole expense under the supervision of Landlord. 
  
 19. Tenant shall have a non-exclusive right to use of all driveways and parking areas designated for Tenant and Tenant’s employees, if deemed
necessary by Landlord. 
  
 20. If additional drapes or window
decorations are desired by Tenant, they shall be approved by Landlord and installed at Tenant’s expense under the direction of Landlord. Lining on drapes visible from the exterior shall be of a color approved by Landlord. 
  
 21. The possession of weapons, including concealed handguns, is strictly
forbidden on the Premises and Building. 
  
 22. Tenant shall not
use nor permit the use of the common area by its employees, agents or invitees for the purpose of displaying or selling personal property, automobiles, equipment, furniture, fixtures, merchandise or any other item whether owned by Tenant or its
employees, agents or invitees. 
  
 23. Landlord reserves the right
to rescind, amend, alter or waive any of the foregoing rules and regulations at any time in a reasonable and nondiscriminatory manner, or make such other reasonable and non-discriminatory rules and regulations as, in its sole judgment it deems
necessary, desirable or proper for its best interest and for the best interests of the tenants, or as may from time to time be necessary for the safety, care and cleanliness of the Premises, the Building or adjacent areas, and for the preservation
of good order therein provided such rules and regulations shall not prevent Tenant’s use of, and operations within, the Premises as herein contemplated. Any such recission, amendment, alteration or waiver of any rules or regulations or creation
of any such new rules or regulations shall be effective five (5) days after all tenants have been given written notice thereof. Landlord shall not be responsible to any tenant for the non-observance or violation by any other tenant of any of these
rules and regulations at any time. 

 EXHIBIT “E” 
  
 OPTION TO EXTEND 
  

	1.	Notice and Exercise. Provided no Event of Default has occurred and is continuing under this Lease, Tenant is hereby granted the option to extend the Term once for an
additional period of five (5) years (the “Renewal Term”) commencing upon the expiration of the initial Term on the same terms and conditions (except as provided in this Section) as contained in the other provisions of this Lease. This
option shall be exercised only by delivery of written notice (the “Renewal Notice”) to Landlord no later than nine (9) months prior to the schedule Expiration Date referred to in Paragraph 2 of this Lease. The Minimum Rental for the
Premises shall be the then fair market rental (“Market Rate”) applicable to the Premises. Tenant’s occupancy of the Premises during any renewal period shall be subject to all other terms and conditions of this Lease, expressly
including without limitation, the obligation to pay Tenant’s proportionate share of the taxes, insurance premiums and common area maintenance costs; provided, however, Landlord shall have no obligation to provide any upfitting allowance for the
Renewal Term and Tenant agrees to continue leasing the Premises in its “as-is” condition. 

  

	2.	Determination of Market Rate. For purposes of this Exhibit “E”, the term “Market Rate” shall mean the annual amount per rentable square foot that
comparable landlords of comparable buildings have accepted in then-current transactions between non-affiliated parties from new, non-expansion, non-renewal (unless the lease involved a procedure invoked by landlord and tenant for a 100%
determination of “fair market rental”) and non-equity tenants of comparable credit-worthiness, for comparable space, for a comparable use, for a comparable period of time (“Comparable Transactions”). In any determination of
Comparable Transactions appropriate consideration shall be given to the annual rental rates per rentable square foot, the standard of measurement by which the rentable square footage is measured, the ratio of rentable square feet to usable square
feet, the type of escalation clause implemented, the extent of tenant’s liability under the lease, abatement provisions reflecting free rent and/or no rent during the period of construction or subsequent to the commencement date as to the space
in question, parking considerations, length of the lease term, size and location of premises being leased, building standard work letter and/or tenant improvement allowances, if any, or any other tenant concessions and other generally applicable
conditions of tenancy for such Comparable Transactions. The intent is that Tenant will obtain the same rent and other economic benefits that Landlord would otherwise give in Comparable Transactions and that Landlord will make, and receive the same
economic payments and concessions that Landlord would otherwise make, and receive in Comparable Transactions. 

  
 Landlord shall determine the Market Rate by using its good faith judgment. Landlord shall provide written notice of such amount within
thirty (30) days (but in no event later than forty-five (45) days) after Tenant provides the notice to Landlord 

 exercising Tenant’s option rights which require a calculation of the Market Rate. Tenant shall have
thirty (30) days (“Tenant’s Review Period”) after receipt of Landlord’s notice of the new rental within which to accept such rental or to object thereto in writing. In the event Tenant objects, Landlord and Tenant shall attempt
to agree upon such Market Rate using their best good faith efforts. If Landlord and Tenant fail to reach agreement within thirty (30) days following Tenant’s Review Period (“Outside Agreement Date”), then each party shall place in a
separate sealed envelope their final proposal as to Market Rate and such determination shall be submitted to arbitration in accordance with subsections (a) through (e) below. Failure of Tenant to so accept in writing such rental within Tenant’s
Review Period shall conclusively be deemed its disapproval of the Market Rate determined by Landlord. 
  
 In the event that Landlord fails to timely generate the initial written notice of Landlord’s opinion of the Market Rate, Tenant may
commence such negotiations by providing the initial notice, in which event Landlord shall have thirty (30) days (“Landlord’s Review Period”) after receipt of Tenant’s notice of the proposed rental within which to accept such
rental. In the event Landlord fails to accept in writing such rental proposed by Tenant, then such proposal shall be deemed rejected, and Landlord and Tenant shall attempt in good faith to agree upon such Market Rate, using their best good faith
efforts. If Landlord and Tenant fail to reach agreement within thirty (30) days following Landlord’s Review Period (which shall be, in such event, the “Outside Agreement Date” in lieu of the above definition of such date), then each
party shall place in a separate sealed envelope their final proposal as to Market Rate and such determination shall be submitted to arbitration in accordance with subsections (a) through (e) below. 
  
 (a) Landlord and Tenant shall meet with each other within
five (5) business days of the Outside Agreement Date and exchange the sealed envelopes and then open such envelopes in each other’s presence. If Landlord and Tenant do not mutually agree upon the Market Rate within one (1) business day of the
exchange and opening of envelopes, then, within ten (10) business days of the exchange and opening of envelopes Landlord and Tenant shall agree upon and jointly appoint a single arbitrator who shall by profession be a real estate appraiser, lawyer
or broker who shall have been active over the five (5) year period ending on the date of such appointment in the leasing of comparable commercial properties in the vicinity of the Building. Neither Landlord nor Tenant shall consult with such broker
or lawyer as to his or her opinion as to Market Rate prior to the appointment. The determination of the arbitrator shall be limited solely to the issue of whether Landlord’s or Tenant’s submitted Market Rate for the Premises is the closer
to the actual Market Rate for the Premises as determined by the arbitrator, taking into account the requirements of this Section 2. Such arbitrator may hold such hearings and require such briefs as the arbitrator, in his or her sole discretion,
determines as necessary. In addition, Landlord or Tenant may submit to the arbitrator with a copy to the other party within five (5) business days after the appointment of the arbitrator any market data and additional information that such party
deems relevant to the determination of Market Rate (“MR Data”) and the other party may submit a reply in writing within five (5) business days after receipt of such MR Data. 

 (b) The arbitrator shall, within thirty (30) days of his or her appointment, reach a
decision as to whether the parties shall use Landlord’s or Tenant’s submitted Market Rate, and shall notify Landlord and Tenant of such determination. 
  
 (c) The decision of the arbitrator shall be binding upon Landlord and Tenant. 
  
 (d) If Landlord and Tenant fail to agree upon and appoint an
arbitrator, then the appointment of the arbitrator shall be made by the Presiding Judge of the Superior Court, or, if he or she refuses to act, by any judge having jurisdiction over the parties. 
  
 (e) The cost of arbitration shall be paid by Landlord and
Tenant equally. 
  
 Immediately after the base
rent for the applicable Extension Period is determined pursuant to this Exhibit, Landlord and Tenant shall execute an amendment to the Lease stating the new base rent in effect. 
  

	3.	Limitation on Market Rent. Notwithstanding anything contained in this Lease to the contrary, in no event shall the Minimum Rental with respect to the first Lease Year of the
Renewal Term exceed Fifteen and No/100 Dollars ($15.00) per rentable square foot of the Premises and in no event shall subsequent annual increases in Minimum Rental exceed four percent (4%) of the Minimum Rental for the immediately preceding Lease
Year. 

 STATE OF NORTH CAROLINA 
 FIRST AMENDMENT TO LEASE 
 COUNTY OF DURHAM 
  
 THIS FIRST AMENDMENT TO LEASE (the “First Amendment”) is made and
entered into as of the 18 day of November, 1998, by and between PETULA ASSOCIATES, LTD., an Iowa corporation (hereinafter called “Landlord”), and ICAGEN, INC., a Delaware corporation (hereinafter called “Tenant”), 
  
 STATEMENT OF PURPOSE 
  
 A. Landlord and Tenant have entered into an agreement dated as of November 5,
1997 (the “Original Lease”) for the lease of approximately 8,983 rentable square feet of space known as Suite 390 (the “Original Premises”) located in Royal Center III (the “Building”) with an address of 4222 Emperor
Boulevard, Imperial Center Business Park, Durham, North Carolina and more particularly described in said Original Lease. 
  
 B. Landlord and Tenant now desire to amend the terms of the Original Lease to add to the Original Premises approximately 6,248 rentable square feet of
space known as Suite 350 (the “Additional Space”) in the Building and more particularly described on Exhibit A-1 attached hereto so that the Original Premises when combined with the Additional Space shall contain approximately
15,231 rentable square feet (hereinafter collectively referred to as the “Combined Premises”), and change certain other terms of the Original Lease (the Original Lease as amended hereby being deemed the “Lease”). 
  
 NOW, THEREFORE, in consideration of the premises, covenants and agreements
herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree to amend the Original Lease on the terms set forth below. The terms used but not defined herein shall have
the meanings set forth within the Original Lease. 
  
 AGREEMENT 
  
 1. Premises. Upon the full
execution of this First Amendment by Landlord and Tenant, Landlord shall deliver possession of the Additional Space in its “as-is” condition and, except as may be expressly set forth herein, Tenant acknowledges that Landlord shall have no
obligation to make any further improvements to the Additional Space. Effective as of January 1, 1999 (the “Additional Space Commencement Date”), the “Premises” shall be redefined to be the Combined Premises, containing
approximately 15,231 rentable square feet. Accordingly, as of the Additional Space Commencement Date, wherever reference is made in the Lease to the Premises, it shall be deemed to mean the Combined Premises as set forth herein and Exhibit A
to the Original Lease shall be replaced with Exhibit A-1 attached hereto in order to evidence the location of the Premises, as herein expanded. 

 2. Term. Landlord and Tenant acknowledge that the term of the lease for the Additional Space shall
be for a period of five (5) years (the “Additional Space Term”) commencing as of the Revised Commencement Date and expiring expire on December 31, 2003 (the “Revised Expiration Date”). In addition, the term of the Original Lease
(with respect to the Original Premises) shall be extended for approximately one (1) year (the “Extended Term”) so as to be coterminous with Additional Space Term and shall expire on the Revised Expiration Date. 
  
 3. Rent for the Combined Premises. With respect to the Original
Premises, Tenant shall continue to pay Minimum Rent in accordance with the terms of the Original Lease; provided, however, effective as of the commencement of the Extended Term and continuing through the Revised Expiration Date, Tenant shall pay
Minimum Rental of Ninety-Nine Thousand Seven Hundred Eleven and 30/100 Dollars ($99,711.30) per annum [which represents a blended rate of Eleven and 10/100 Dollars ($11.10) per rentable square foot of the Original Premises], payable in equal monthly
installments of Eight Thousand Three Hundred Nine and 28/100 Dollars ($8,309.28) each in advance on or before the first day of each month. Notwithstanding the foregoing, if for any reason the Supplemental Improvement Allowance (as defined in the
Original Lease) is not paid to Tenant, the Minimum Rental payable with respect to the Original Premises during the Extended Term shall be reduced to Seventy-Six Thousand Eighty-Six and 01/100 Dollars ($76,086.01) [which represents a blended rate of
Eight and 47/100 Dollars ($8.47) per rentable square foot of the Original Premises], payable in equal monthly installments of Six Thousand Three Hundred Forty and 50/100 Dollars ($6,340.50) each in advance on or before the first day of each month.

  
 Effective as of the Additional Space Commencement Date, in
addition to all Minimum Rent payable with respect to the Original Premises, Tenant shall pay Minimum Rent with respect to the Additional Space in equal monthly installments on or before the first day of each month in advance as follows: 

 
 (i) For the period commencing as of the Additional Space Commencement
Date and continuing through December 31, 1999, Tenant shall pay a minimum annual rental (the “Additional Space Minimum Rental”) of Thirty-Seven Thousand Four Hundred Eighty-Eight and No/100 Dollars ($37,488.00) per annum [which represents
a rate of $6.00 per rentable square foot of the Additional Space], payable in equal monthly installments of Three Thousand One Hundred Twenty-Four and No/100 Dollars ($3,124.00) each in advance on or before the first day of each month. 

 
 (ii) For the period commencing on January 1, 2000, and continuing through
December 31, 2000, Tenant shall pay Additional Space Minimum Rental of Thirty-Eight Thousand Six Hundred Twelve and 64/100 Dollars ($38,612.64) per annum [which represents a rate of $6.18 per rentable square foot of the Additional Space], payable in
equal monthly installments of Three Thousand Two Hundred Seventeen and 72/100 Dollars ($3,217.72) each in advance on or before the first day of each month. 
  
 (iii) For the period commencing on January 1, 2001, and continuing through December 31, 2001, Tenant shall pay Additional Space Minimum Rental of
Thirty-Nine Thousand Seven Hundred Ninety-Nine and 76/100 Dollars ($39,799.76) per annum [which 
  

 2 

 represents a rate of $6.37 per rentable square foot of the Additional Space], payable in equal monthly installments of
Three Thousand Three Hundred Sixteen and 65/100 Dollars ($3,316.65) each in advance on or before the first day of each month. 
  
 (iv) For the period commencing on January 1, 2002, and continuing through December 31, 2002, Tenant shall pay Additional Space Minimum Rental of Forty
Thousand Nine Hundred Eighty-Six and 88/100 Dollars ($40,986.88) per annum [which represents a rate of $6.56 per rentable square foot of the Additional Space], payable in equal monthly installments of Three Thousand Four Hundred Fifteen and 57/100
Dollars ($3,415.57) each in advance on or before the first day of each month. 
  
 (v) For the period commencing on January 1, 2003, and continuing through the Revised Expiration Date, Tenant shall pay Additional Space Minimum Rental of Forty-Two Thousand Two Hundred Thirty-Six and 48/100 Dollars
($42,236.48) per annum [which represents a rate of $6.76 per rentable square foot of the Additional Space], payable in equal monthly installments of Three Thousand Five Hundred Nineteen and 71/100 Dollars ($3,519.71) each in advance on or before the
first day of each month. For purposes hereof, if the Additional Space Commencement Date is a date other than the first day of a calendar month, the Additional Space Minimum Rental shall be prorated daily from such date to the first day of the next
calendar month and paid on the Additional Space Commencement Date. 
  
 4. Additional Rent. Commencing as of the Additional Space Commencement Date and continuing through the Revised Expiration Date, Tenant’s Proportionate Share of Tenant Expenses, including insurance costs, taxes and operating
expense charges, and any other amounts due and payable under the Lease, shall be adjusted to reflect the Combined Premises. 
  
 5. Tenant Improvements. Tenant shall be solely responsible for any costs associated with the upfitting improvements in the Additional Space to be
constructed in accordance with plans and specifications for such improvements designed by Tenant and approved in advance by Landlord. In addition, Tenant agrees to pay Landlord or its designee a charge of four percent (4%) of the cost of such
upfitting improvements for construction consulting services, including, without limitation, the reviewing of plans and specifications, and the inspecting and coordinating of construction. Notwithstanding the foregoing, Landlord and Tenant shall each
pay one-half (1/2) of the costs associated with the installation of a demising wall at the boundary of the Additional Space to be constructed upon full execution of this First Amendment; provided, however, in no event shall Tenant’s share of
the costs associated with the installation of a demising wall exceed Four Thousand Two Hundred Seventy and No/100 Dollars ($4,270.00). 
  
 6. Parking. Beginning with the Additional Space Commencement Date and continuing through the Revised Expiration Date, so long as Tenant is leasing
and occupying the Additional Space, Tenant shall have the right to use three (3) additional surface parking spaces per 1,000 rentable square feet in the Additional Space. 
  
 7. Broker’s Commissions. Tenant represents and warrants that it has not had any dealings with any real estate
broker, finder or other person, with respect to this First Amendment in any manner, except Tri-Properties, Inc. Landlord shall pay any commissions or fees that are 
  

 3 

 payable to the above-named brokers or finders with respect to this First Amendment. Tenant shall indemnify and hold
Landlord harmless from any and all damages resulting from any claims that may be asserted against Landlord by any other broker, finder or other person, with whom Tenant has or purportedly has dealt. The provisions of this Section shall survive the
termination or expiration of the Lease. 
  
 8. Except as
hereinafter expressly amended, the Original Lease shall remain in full force and effect. All covenants, terms, obligations and conditions of said Lease, not modified or amended by this First Amendment to Lease, are hereby ratified and confirmed.

  

 4 

 IN WITNESS WHEREOF, each of the parties hereto has duly executed this First Amendment to Lease and has
hereunto set its seal all as of the day and year first above written. 
  

					
	 	  	 TENANT:

		
	 	  	 ICAGEN, INC.

	 (CORPORATE SEAL)
	  	 	 	 
			
	 ATTEST:
	  	 By:
	 	 /s/ P. K. Wagoner

	 	  	 Name:
	 	 P. K. Wagoner

	 	  	 Its:
	 	                          President

	 /s/ Robert J. Jakobs

	  	 	 	 
	 Assist. Secretary
	  	 Date:  11/27/98

		
	 	  	 LANDLORD:

		
	 	  	 PETULA ASSOCIATES, LTD.

	 (CORPORATE SEAL)
	  	 	 	 
			
	 ATTEST:
	  	 By:
	 	 /s/ Vance Voss     /s/ Michael D. Simpson

	 	  	 Name:
	 	 Vance Voss           Michael D. Simpson

	 	  	 Its:
	 	 Vice President       Vice President

	 /s/ Timothy E. Minton

	  	 	 	 
	 Director & Secretary
	  	 Date:  12/18/98

	 Commercial Real Estate Reporting
 and Computer Services
	  	 	 	 

  

 5 

 Exhibit A 
  

[FLOOR PLANS APPEAR HERE] 

 Exhibit A-1 
  
 [FLOOR PLANS APPEAR HERE] 

 STATE OF NORTH CAROLINA 
 SECOND AMENDMENT TO LEASE 
 COUNTY OF DURHAM 
  
 THIS SECOND AMENDMENT TO LEASE (the “Second Amendment”) is made and
entered into as of the 30th day of November, 2001, by and between ROYAL CENTER IC, LLC, a Delaware limited liability company (hereinafter called “Landlord”) [successor in interest to Petula Associates, Ltd., an Iowa corporation
(hereinafter called “Petula”)], as represented by PRINCIPAL CAPITAL MANAGEMENT, LLC, a Delaware limited liability company, its authorized agent, and ICAGEN, INC., a Delaware corporation (hereinafter called “Tenant”). 

 
 STATEMENT OF PURPOSE 
  
 A. Petula and Tenant entered into an agreement dated as of November 5, 1997
as amended by that certain First Amendment to Lease dated December 18, 1998 (as amended, the “Original Lease”) for certain premises consisting of approximately 15,231 rentable square feet of office space (the “Existing Premises”)
on a portion of the first (1st) floor of that certain building known as Royal Center III (the “Building”) with an address of 4222 Emperor Boulevard, Imperial Center Business Park, Durham, North Carolina and more particularly described in
said Original Lease. 
  
 B. Landlord, as successor-in-interest to
Petula, and Tenant now desire to amend the terms of the Original Lease to (i) add to the Existing Premises approximately 4,959 rentable square feet of space known as Suite 380 (the “Expansion Space”) in the Building and more particularly
described on Exhibit A-1 attached hereto, so that the Existing Premises when combined with the Expansion Space shall contain approximately 20,190 rentable square feet (hereinafter collectively referred to as the “Revised Premises”),
and (ii) change certain other terms of the Original Lease (the Original Lease as amended hereby being deemed the “Lease”). 
  
 NOW, THEREFORE, in consideration of the premises, covenants and agreements herein contained, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree to amend the Original Lease on the terms set forth below. The terms used but not defined herein shall have the meanings set forth within the Original Lease. 
  
 AGREEMENT 
  
 1. Expansion of the Premises. Effective as of December 1, 2001, Landlord delivers possession of the Expansion Space
to Tenant in accordance with the terms of this Second Amendment (the “Expansion Space Commencement Date”), the “Premises” shall be redefined to be the Revised Premises, containing approximately 20,190 rentable square feet.
Accordingly, as of the Expansion Space Commencement Date, wherever reference is made in the Lease to the Premises, it shall be deemed to mean the Revised Premises as set forth herein and Exhibit A to the Original Lease shall be replaced with
Exhibit A-1 attached hereto in order to evidence the location of the Premises, as herein expanded. 

 2. Term. Landlord and Tenant acknowledge that the term of the lease for the Expansion Space shall
be for a period of six (6) years and ten (10) months (the “Expansion Space Term”) commencing as of the Expansion Space Commencement Date and expiring on September 30, 2008. The term of the Original Lease (with respect to the Existing
Premises) is scheduled to expire on December 31, 2003, subject to Exhibit E “OPTION TO EXTEND.” Accordingly, commencing as of January 1, 2004 and continuing through September 30, 2008, the Premises shall be redefined to be the Expansion
Space only. 
  
 3. Rent for the Combined Premises. With
respect to the Existing Premises, Tenant shall continue to pay Minimum Rent in accordance with the terms of the Original Lease. Effective as of the Expansion Space Commencement Date and continuing throughout the Expansion Space Term, in addition to
all Minimum Rent payable with respect to the Existing Premises, Tenant shall pay Minimum Rent with respect to the Expansion Space in equal monthly installments on or before the first day of each month in advance as follows: 
  
 (i) For the period commencing as of the Expansion Space Commencement Date
and continuing through September 30, 2002, Tenant shall pay minimum annual rental applicable to the Expansion Space of Forty Four Thousand Four Hundred Sixty-Five and 70/100 Dollars ($44,465.70) [which represents a rental rate of $10.76 per rentable
square foot of the Expansion Space], payable in equal monthly installments of Four Thousand Four Hundred Forty-Six and 57/100 Dollars ($4,446.57) each in advance on or before the first day of each month. 
  
 (ii) For the period commencing on October 1, 2002 and continuing through
September 30, 2003, Tenant shall pay minimum annual rental applicable to the Expansion Space of Fifty-Four Thousand Nine Hundred Forty-Five and 72/100 Dollars ($54,945.72) per annum [which represents a rental rate of $11.08 per rentable square foot
of the Expansion Space], payable in equal monthly installments of Four Thousand Five Hundred Seventy-Eight and 81/100 Dollars ($4,578.81) each in advance on or before the first day of each month. 
  
 (iii) For the period commencing on October 1, 2003 and continuing through
September 30, 2004, Tenant shall pay minimum annual rental applicable to the Expansion Space of Fifty-Six Thousand Five Hundred Eighty-Two and 19/100 Dollars ($56,582.19) per annum [which represents a rental rate of $11.41 per rentable square foot
of the Expansion Space], payable in equal monthly installments of Four Thousand Seven Hundred Fifteen and 18/100 Dollars ($4,715.18) each in advance on or before the first day of each month. 
  
 (iv) For the period commencing on October 1, 2004 and continuing through
September 30, 2005, Tenant shall pay minimum annual rental applicable to the Expansion Space of Fifty-Eight Thousand Two Hundred Sixty-Eight and 25/100 Dollars ($58,268.25) per annum [which represents a rental rate of $11.75 per rentable square foot
of the Expansion Space], payable in equal monthly installments of Four Thousand Eight Hundred Fifty-Five and 69/100 Dollars ($4,855.69) each in advance on or before the first day of each month. 
  
 (v) For the period commencing on October 1, 2005 and continuing through
September 30, 2006, Tenant shall pay minimum annual rental applicable to the Expansion Space 
  

 2 

 of Sixty Thousand Three and 90/100 Dollars ($60,003.90) per annum [which represents a rental rate of $12.10 per rentable
square foot of the Expansion Space], payable in equal monthly installments of Five Thousand and 33/100 Dollars ($5,000.33) each in advance on or before the first day of each month. 
  
 (vi) For the period commencing on October 1, 2006 and continuing through September 30, 2007, Tenant shall pay minimum annual
rental applicable to the Expansion Space of Sixty-One Thousand Seven Hundred Eighty-Nine and 14/100 Dollars ($61,789.14) per annum [which represents a rental rate of $12.46 per rentable square foot of the Expansion Space], payable in equal monthly
installments of Five Thousand One Hundred Forty-Nine and 10/100 Dollars ($5,149.10) each in advance on or before the first day of each month. 
  
 (vii) For the period commencing on October 1, 2007 and continuing through September 30, 2008, Tenant shall pay minimum annual rental applicable to the
Expansion Space of Sixty-Three Thousand Six Hundred Twenty-Three and 97/100 Dollars ($63,623.97) per annum [which represents a rental rate of $12.83 per rentable square foot of the Expansion Space], payable in equal monthly installments of Five
Thousand Three Hundred Two and No/100 Dollars ($5,302.00) each in advance on or before the first day of each month. 
  
 For purposes hereof, if the Expansion Space Commencement Date is a date other than the first day of a calendar month, the Minimum Rental applicable to the
Expansion Space shall be prorated daily from such date to the first day of the next calendar month and paid on the Expansion Space Commencement Date or anniversary thereof. 
  
 4. Additional Rent. Commencing as of the Expansion Space Commencement Date and continuing until December 31, 2003,
Tenant’s Proportionate Share of Tenant Expenses, including insurance costs, taxes and operating expense charges, and any other amounts due and payable under the Lease, shall be adjusted to reflect the Revised Premises. Thereafter, Tenant’s
Proportionate Share of Tenant Expenses shall be adjusted to reflect Tenant’s occupancy of the Expansion Space only. 
  
 5. Amortization of Additional Upfit Allowance. Commencing as of February 1, 2002 and continuing throughout the Expansion Space Term, in addition to
all Minimum Rent and Additional Rent payable with respect to the Existing Premises and the Expansion Space, Tenant shall pay an additional amount (the “Upfit Amortization Rent”) to Landlord as repayment of the additional upfit allowance
initially provided by Landlord for the Expansion Space, in equal monthly installments on or before the first day of each month in advance as follows: 
  
 (i) For the period commencing February 1, 2002 and continuing through August 31, 2008, Tenant shall pay Upfit Amortization Rent applicable to the
Expansion Space of Six Thousand Four Hundred Fifty-Three and 24/100 Dollars ($6,453.24) per annum, payable in equal monthly installments of Five Hundred Thirty-Seven and 77/100 Dollars ($537.77) each in advance on or before the first day of each
month. 
  

 3 

 (ii) For the period commencing September 1, 2008 and continuing through September 30, 2008, Tenant shall
pay Upfit Amortization Rent applicable to the Expansion Space of Five Hundred Thirty-Eight and 29/100 Dollars ($538.29) per month. 
  
 For purposes hereof, if the Expansion Space Commencement Date is a date other than the first day of a calendar month, the Upfit Amortization Rent
applicable to the Expansion Space shall be prorated daily from such date to the first day of the next calendar month and paid on the Expansion Space Commencement Date or anniversary thereof. 
  
 6. Tenant Improvements. Tenant shall accept possession of the
Expansion Space upon Landlord’s delivery of same in its then-existing “as is” condition without any further improvements thereto. Tenant shall be solely responsible for any costs associated with the upfitting improvements in the
Expansion Space to be constructed in accordance with plans and specifications for such improvements designed by Tenant and approved in advance by Landlord. In addition, Tenant agrees to pay Landlord or its designee a charge of three percent (3%) of
the cost of such upfitting improvements for construction consulting services, including, without limitation, the reviewing of plans and specifications, and the inspecting and coordinating of construction. The maximum payment for construction
consulting services on the upfitting in the Expansion Space shall not exceed Five Thousand and 00/100 Dollars ($5,000.00). If Landlord for any reason whatsoever cannot deliver possession of the Expansion Space to Tenant on or before the Expansion
Space Commencement Date, this Lease shall not be void or voidable nor shall Landlord be liable to Tenant for any loss or damages resulting therefrom; but in that event, the Expansion Space Commencement Date shall be adjusted to be the date when
Landlord does in fact deliver possession of the Expansion Space to Tenant. 
  
 7. Parking. Beginning with the Expansion Space Commencement Date and continuing throughout the Expansion Space Term, so long as Tenant is leasing and occupying the Expansion Space, Tenant shall have the right
to use three (3) additional surface parking spaces in the parking area adjacent to the Building per 1,000 rentable square feet in the Expansion Space. 
  
 8. Broker’s Commissions. Tenant represents and warrants that it has not had any dealings with any real estate broker, finder or other person,
with respect to this Second Amendment in any manner, except Tri-Properties, Inc. Landlord shall pay any commissions or fees that are payable to the above-named brokers or finders with respect to this Second Amendment. Tenant shall indemnify and hold
Landlord harmless from any and all damages resulting from any claims that may be asserted against Landlord by any other broker, finder or other person, with whom Tenant has or purportedly has dealt. The provisions of this Section shall survive the
termination or expiration of the Lease. 
  
 9. Contingency.
Notwithstanding anything in this Second Amendment to the contrary, this Second Amendment is contingent in all respects upon Landlord’s execution of a lease termination agreement (the “Termination Agreement”) with the tenant currently
occupying the Expansion Space. If Landlord does not obtain the fully executed Termination Agreement prior to December 1, 2001, this Second Amendment may be terminated by Landlord upon five (5) days advance written notice to Tenant, whereupon the
parties hereto shall have no further rights or obligations under this Second Amendment. 
  

 4 

 10. Ratification. Except as hereinafter expressly amended, the Original Lease shall remain in full
force and effect. All covenants, terms, obligations and conditions of said Lease, not modified or amended by this Second Amendment to Lease, are hereby ratified and confirmed. 
  
  
 [Remainder of Page Left Blank Intentionally]

  

 5 

 IN WITNESS WHEREOF, each of the parties hereto has duly executed this Second Amendment to Lease and has
hereunto set its seal all as of the day and year first above written. 
  

					
	 	 	 TENANT:

		
	 	 	 ICAGEN, INC.

	 (CORPORATE SEAL)
	 	 	 	 
			
	 ATTEST:
	 	 By:
	 	 /s/ P. Kay Wagoner

	 	 	 Name:
	 	  

	 	 	 Its:
	 	                          President

	 /s/ Robert J. Jakobs

	 	 	 	 
	 Assist Secretary

	 	 Date:
	 	 12/7/01

		
	 	 	 LANDLORD:

		
	 	 	 ROYAL CENTER IC, LLC, a Delaware
 limited liability company

			
	 	 	 By:
	 	 PRINCIPAL CAPITAL MANAGEMENT, LLC, a
 Delaware limited liability company,
 its authorized agent

			
	 	 	 By:
	 	 /s/ Tony Hepner

	 	 	 Name:
	 	 Tony Hepner

	 	 	 Title:
	 	 Director

			
	 	 	 By:
	 	  

	 	 	 Name:
	 	  

	 	 	 Title:
	 	  

			
	 	 	 Date:
	 	 12/28/01

  

 6 

 EXHIBIT A-1 
  
 EXPANSION SPACE AND REVISED PREMISES 
  

[FLOOR PLANS APPEAR HERE] 
  

 7 

 STATE OF NORTH CAROLINA 
 THIRD AMENDMENT TO LEASE 
 COUNTY OF DURHAM 
  
 THIS THIRD AMENDMENT TO LEASE (the “Third Amendment”) is made and
entered into as of the 14th day of June, 2002, by and between ROYAL CENTER THREE IC, LLC, a Delaware limited
liability company (hereinafter called “Landlord”) [successor in interest to Petula Associates, Ltd., an Iowa corporation (hereinafter called “Petula”)] and ICAGEN, INC., a Delaware corporation (hereinafter called
“Tenant”). 
  
 STATEMENT OF PURPOSE 
  
 A. Petula and Tenant entered into an agreement dated as of November 5, 1997
as amended by that certain First Amendment to Lease dated December 18, 1998 and as further amended by that certain Second Amendment to Lease dated November 30, 2001 (as amended, the “Original Lease”) for certain premises consisting of
approximately 20,191 rentable square feet of office space (the “Premises”) on a portion of the first (1st) floor of that certain building known as Royal Center III (the “Building”) with an address of 4222 Emperor Boulevard,
Imperial Center Business Park, Durham, North Carolina and more particularly described in said Original Lease. 
  
 B. Landlord, as successor-in-interest to Petula, and Tenant now desire to amend the terms of the Original Lease to add a three year option to extend the
Term of the Lease with respect to a portion of the Premises more particularly described as 4,959 rentable square feet known as Suite 380 (hereinafter the “Expansion Space”). 
  
 NOW, THEREFORE, in consideration of the premises, covenants and agreements herein contained, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree to amend the Original Lease on the terms set forth below. The terms used but not defined herein shall have the meanings set forth within the Original
Lease. 
  
 AGREEMENT 
  
 1. Notice and Exercise. Provided no Event of Default has occurred and
is continuing under the Original Lease, as herein amended, Tenant is hereby granted the option to extend the term of its lease of the Expansion Space once for an additional period of three (3) years (the “Renewal Term”) (from October 1,
2008 through September 30, 2011) commencing upon the expiration of the existing term for the Expansion Space on the same terms and conditions (except as provided in this Third Amendment) as contained in the other provisions of the Original Lease.
This option shall be exercised only by delivery of written notice (the “Renewal Notice”) to Landlord no later than six () months prior to September 30, 2008, the scheduled expiration date of the term of the lease of the Expansion Space, as
set forth in Paragraph 2 of the Second Amendment to Lease. The Minimum Rental for the Expansion Space during the Renewal Term shall be the then fair market rental (“Market Rate”) applicable to the 

 Expansion Space. Tenant’s occupancy of the Expansion Space during any renewal period shall be subject to all other
terms and conditions of the Lease, expressly including without limitation, the obligation to pay Tenant’s proportionate share of the taxes, insurance premiums and common area maintenance costs; provided, however, Landlord shall have no
obligation to provide any upfitting allowance for the Renewal Term and Tenant agrees to continue leasing the Expansion Space in its “as-is” condition. 
  

2. Determination of Market Rate. For purposes of this Third Amendment, the term “Market Rate” as it applies to the Expansion Space
shall mean the annual amount per rentable square foot that comparable landlords of comparable buildings have accepted in then-current transactions between non-affiliated parties from new, non-expansion, non-renewal (unless the lease involved a
procedure invoked by landlord and tenant for a 100% determination of “fair market rental”) and non-equity tenants of comparable credit-worthiness, for comparable space, for a comparable use, for a comparable period of time
(“Comparable Transactions”). In any determination of Comparable Transactions appropriate consideration shall be given to the annual rental rates per rentable square foot, the standard of measurement by which the rentable square footage is
measured, the ratio of rentable square feet to usable square feet, the type of escalation clause implemented, the extent of tenant’s liability under the lease, abatement provisions reflecting free rent and/or no rent during the period of
construction or subsequent to the commencement date as to the space in question, parking considerations, length of the lease term, size and location of premises being leased, building standard work letter and/or tenant improvement allowances, if
any, or any other tenant concessions and other generally applicable conditions of tenancy for such Comparable Transactions. The intent is that Tenant will obtain the same rent and other economic benefits that Landlord would otherwise give in
Comparable Transactions and that Landlord will make, and receive the same economic payments and concessions that Landlord would otherwise make, and receive in Comparable Transactions. 
  
 Landlord shall determine the Market Rate by using its good faith judgment. Landlord shall provide written notice of such
amount within thirty (30) days (but in no event later than forty-five (45) days) after Tenant provides the notice to Landlord exercising Tenant’s option rights which require a calculation of the Market Rate. Tenant shall have thirty (30) days
(“Tenant’s Review Period”) after receipt of Landlord’s notice of the new rental within which to accept such rental or to object thereto in writing. In the event Tenant objects, Landlord and Tenant shall attempt to agree upon such
Market Rate using their best good faith efforts. If Landlord and Tenant fail to reach agreement within thirty (30) days following Tenant’s Review Period (“Outside Agreement Date”), then each party shall place in a separate sealed
envelope their final proposal as to Market Rate and such determination shall be submitted to arbitration in accordance with subsections (a) through (e) below. Failure of Tenant to so accept in writing such rental within Tenant’s Review Period
shall conclusively be deemed its disapproval of the Market Rate determined by Landlord. 
  
 In the event that Landlord fails to timely generate the initial written notice of Landlord’s opinion of the Market Rate, Tenant may commence such negotiations by providing the initial notice, in which event
Landlord shall have thirty (30) days (“Landlord’s Review Period”) after receipt of Tenant’s notice of the proposed rental within which to accept such rental. In the event Landlord fails to accept in writing such rental proposed
by Tenant, then such proposal shall be 
  

 2 

 deemed rejected, and Landlord and Tenant shall attempt in good faith to agree upon such Market Rate, using their best
good faith efforts. If Landlord and Tenant fail to reach agreement within thirty (30) days following Landlord’s Review Period (which shall be, in such event, the “Outside Agreement Date” in lieu of the above definition of such date),
then each party shall place in a separate sealed envelope their final proposal as to Market Rate and such determination shall be submitted to arbitration in accordance with subsections (a) through (e) below. 
  
 (a) Landlord and Tenant shall meet with each other within five (5) business
days of the Outside Agreement Date and exchange the sealed envelopes and then open such envelopes in each other’s presence. If Landlord and Tenant do not mutually agree upon the Market Rate within one (1) business day of the exchange and
opening of envelopes, then, within ten (10) business days of the exchange and opening of envelopes Landlord and Tenant shall agree upon and jointly appoint a single arbitrator who shall by profession be a real estate appraiser, lawyer or broker who
shall have been active over the five (5) year period ending on the date of such appointment in the leasing of comparable commercial properties in the vicinity of the Building. Neither Landlord nor Tenant shall consult with such broker or lawyer as
to his or her opinion as to Market Rate prior to the appointment. The determination of the arbitrator shall be limited solely to the issue of whether Landlord’s or Tenant’s submitted Market Rate for the Expansion Space is the closer to the
actual Market Rate for the Expansion Space as determined by the arbitrator, taking into account the requirements of this Section 2. Such arbitrator may hold such hearings and require such briefs as the arbitrator, in his or her sole discretion,
determines as necessary. In addition, Landlord or Tenant may submit to the arbitrator with a copy to the other party within five (5) business days after the appointment of the arbitrator any market data and additional information that such party
deems relevant to the determination of Market Rate (“MR Data”) and the other party may submit a reply in writing within five (5) business days after receipt of such MR Data. 
  
 (b) The arbitrator shall, within thirty (30) days of his or her appointment, reach a decision as to whether the parties
shall use Landlord’s or Tenant’s submitted Market Rate, and shall notify Landlord and Tenant of such determination. 
  
 (c) The decision of the arbitrator shall be binding upon Landlord and Tenant. 
  
 (d) If Landlord and Tenant fail to agree upon and appoint an arbitrator, then the appointment of the arbitrator shall be
made by the Presiding Judge of the Superior Court, or, if he or she refuses to act, by any judge having jurisdiction over the parties. 
  
 (e) The cost of arbitration shall be paid by Landlord and Tenant equally. 
  
 Immediately after the base rent for the applicable Extension Period is determined pursuant to this Third
Amendment, Landlord and Tenant shall execute an amendment to the Lease stating the new base rent in effect. 
  
 3. Ratification. Except as hereinafter expressly amended, the Original Lease, as herein amended, shall remain in full force and effect. All
covenants, terms, obligations and conditions of said Lease, not modified or amended by this Third Amendment to Lease, are hereby ratified and confirmed. 
  

 3 

 IN WITNESS WHEREOF, each of the parties hereto has duly executed this Third Amendment to Lease and has
hereunto set its seal all as of the day and year first above written. 
  

					
	 	  	 TENANT:

		
	 	  	 ICAGEN, INC., a Delaware corporation

	 (CORPORATE SEAL)
	  	 	 	 
			
	 ATTEST:
	  	 By:
	 	 /s/ P. Kay Wagoner

	 	  	 Name:
	 	 P. Kay Wagoner

	 	  	 Its:
	 	                          President

	 /s/ Robert J. Jakobs

	  	 	 	 
	 Assist Secretary

	  	 Date:
	 	 3/17/02

		
	 	  	 LANDLORD:

		
	 	  	 ROYAL CENTER THREE IC, LLC,
 a Delaware limited liability company

			
	 	  	 By:
	 	 PRINCIPAL CAPITAL MANAGEMENT, LLC, a
 Delaware limited liability company, its authorized
 agent

			
	 	  	 By:
	 	 /s/ Mark Scholz

	 	  	 Name:
	 	 Mark Scholz

	 	  	 Title:
	 	 Director

			
	 	  	 Date:
	 	 4/14/02

			
	 	  	 By:
	 	  

	 	  	 Name:
	 	  

	 	  	 Title:
	 	  

			
	 	  	 Date:
	 	  

  

 4 

 STATE OF NORTH CAROLINA 
 FOURTH AMENDMENT TO LEASE 
 COUNTY OF DURHAM 
  
 THIS FOURTH AMENDMENT TO LEASE (the “Fourth Amendment”) is made and
entered into as of the 7th day of December, 2002, by and between ROYAL CENTER IC, LLC, a Delaware limited liability
company (hereinafter called “Landlord”) [successor in interest to Petula Associates, Ltd., an Iowa corporation (hereinafter called “Petula”)], and ICAGEN, INC., a Delaware corporation (hereinafter called “Tenant”),

  
 STATEMENT OF PURPOSE 
  
 A. Petula and Tenant have entered into an agreement dated as of November 5,
1997, as amended by that certain First Amendment to Lease dated December 18, 1998, that certain Second Amendment to Lease dated November 30, 2001 and that certain Third Amendment to Lease dated June 14, 2002 (as amended, the “Original
Lease”) for the lease of certain premises containing approximately 20,190 rentable square feet of office space consisting of (a) Suite 390 containing 8.983 rentable square feet (the “390 Space”), (b) Suite 350 containing 6,248
rentable square feet (the “350 Space”) (collectively referred to as the “350/390 Space” containing approximately 15,231 rentable square feet), and (c) Suite 380 containing 4,959 rentable square feet (the “380 Space”)
(collectively the 350/390 Space and the 380 Space shall be hereinafter referred to as the “Premises”) located in Royal Center III (the “Building”) with an address of 4222 Emperor Boulevard, Imperial Center Business Park, Durham,
North Carolina and more particularly described in said Original Lease. 
  
 B. Landlord, as successor in interest to Petula, and Tenant now desire to amend the terms of the Original Lease to add to the Premises approximately 4,665 rentable square feet of space known as Suite 335 (the “Adjacent Space”) in
the Building and more particularly described on Exhibit A-1 attached hereto so that the Premises when combined with the Adjacent Space shall contain approximately 24,855 rentable square feet (hereinafter collectively referred to as the
“Combined Premises”), and change certain other terms of the Original Lease (the Original Lease as amended hereby being deemed the “Lease”). 
  

NOW, THEREFORE, in consideration of the premises, covenants and agreements herein contained, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree to amend the Original Lease on the terms set forth below. The terms used but not defined herein shall have the meanings set forth within the Original Lease. 
  
 AGREEMENT 
  
 1. Premises. Upon the full execution of this Fourth Amendment by Landlord and Tenant, Landlord shall deliver
possession of the Adjacent Space in its “as-is” condition and, except as may be expressly set forth herein, Tenant acknowledges that Landlord shall have no obligation to make any further improvements to the Adjacent Space. Effective as of
December 1, 2002 (the “Adjacent Space Commencement Date”), the “Premises” shall be redefined to be the 

 Combined Premises, containing approximately 24,855 rentable square feet. Accordingly, as of the Adjacent Space
Commencement Date, wherever reference is made in the Lease to the Premises, it shall be deemed to mean the Combined Premises as set forth herein and Exhibit A to the Original Lease shall be replaced with Exhibit A-1 attached hereto in
order to evidence the location of the Premises, as herein expanded. 
  
 2. Term. Landlord and Tenant acknowledge that the term of the lease for the Adjacent Space shall be for a period of five (5) years and one (1) month (the “Adjacent Space Term”) commencing as of the Adjacent Space
Commencement Date and expiring on December 31, 2007 (the “Revised Expiration Date”). In addition, the term of the Original Lease (with respect to the 350/390 Space which expires December 31, 2003 shall be extended pursuant to
“Exhibit E - Option to Extend” of the Original Lease for a period of four (4) years (the “Renewal Term”) commencing January 1, 2004 (the “Renewal Commencement Date”) and expiring December 31, 2007 (the
“Renewal Expiration Date”) so as to be co-terminous with the Revised Expiration Date. The term of the Original Lease with respect to the 380 Space shall not be changed, and the 380 Space Term shall expire on September 30, 2008. Tenant
shall have no further rights to renew the term of the Lease with respect to the 350/390 Space or the Adjacent Space. 
  
 3. Minimum Rent for the Premises. 
  
 a. 380 Space (4,959 square feet). With respect to the 380 Space, Tenant shall continue to pay Minimum Rent in accordance with the terms of the
Original Lease. 
  
 b. 350/390 Space (15,231 square feet).
With respect to the 350/390 Space, Tenant shall continue to pay Minimum Rent in accordance with the terms of the Original Lease through December 31, 2003. 
  
 During the Renewal Term, Tenant shall pay minimum annual rental applicable to the 390 Space as follows: 
  
 (i) For the period commencing as of the Renewal Commencement Date and
continuing through December 31, 2004, the sum of One Hundred Two Thousand Six Hundred Seventy-Five and 69/100 Dollars ($102,675.69) per annum [which represents a rate of $11.43 per rentable square foot of the 390 Space] payable in equal monthly
installments of Eight Thousand Five Hundred Fifty-Six and 31/100 Dollars ($8,556.31) each in advance on or before the first day of each month; 
  
 (ii) For the period commencing on January 1, 2005 and continuing through December 31, 2005, the sum of One Hundred Five Thousand Seven Hundred Twenty-Nine
and 91/100 Dollars ($105,729.91) per annum [which represents a rate of $11.77 per rentable square foot of the 390 Space] payable in equal monthly installments of Eight Thousand Eight Hundred Ten and 83/100 Dollars ($8,810.83) each in advance on or
before the first day of each month; 
  
 (iii) For the period
commencing on January 1, 2006 and continuing through December 31, 2006, the sum of One Hundred Eight Thousand Eight Hundred Seventy-Three and 
  

 2 

 96/100 Dollars ($108,873.96) per annum [which represents a rate of $12.12 per rentable square foot of the
390 Space] payable in equal monthly installments of Nine Thousand Seventy-Two and 83/100 Dollars ($9,072.83) each in advance on or before the first day of each month; and 
  
 (iv) For the period commencing on January 1, 2007 and continuing through December 31, 2007, the sum of One Hundred Twelve
Thousand One Hundred Seven and 84/100 Dollars ($112,107.84) per annum [which represents a rate of $12.48 per rentable square foot of the 390 Space] payable in equal monthly installments of Nine Thousand Three Hundred Forty-Two and 32/100 Dollars
($9,342.32) each in advance on or before the first day of each month. 
  
 During the Renewal Term, Tenant shall pay minimum annual rental applicable to the 350 Space as follows: 
  
 (i) For the period commencing as of the Renewal Commencement Date and continuing through December 31, 2004, the sum of Forty-Three Thousand Four Hundred
Eighty-Six and 08/100 Dollars ($43,486.08) per annum [which represents a rate of $6.96 per rentable square foot of the 350 Space] payable in equal monthly installments of Three Thousand Six Hundred Twenty-Three and 84/100 Dollars ($3,623.84) each in
advance on or before the first day of each month; 
  
 (ii) For
the period commencing on January 1, 2005 and continuing through December 31, 2005, the sum of Forty-Four Thousand Seven Hundred Ninety-Eight and 16/100 Dollars ($44,798.16) per annum [which represents a rate of $7.17 per rentable square foot of the
350 Space] payable in equal monthly installments of Three Thousand Seven Hundred Thirty-Three and 18/100 Dollars ($3,733.18) each in advance on or before the first day of each month; 
  
 (iii) For the period commencing on January 1, 2006 and continuing through December 31, 2006, the sum of Forty-Six Thousand
One Hundred Seventy-Two and 72/100 Dollars ($46,172.72) per annum [which represents a rate of $7.39 per rentable square foot of the 350 Space] payable in equal monthly installments of Three Thousand Eight Hundred Forty-Seven and 73/100 Dollars
($3,847.73) each in advance on or before the first day of each month; and 
  
 (iv) For the period commencing on January 1, 2007 and continuing through December 31, 2007, the sum of Forty-Seven Thousand Five Hundred Forty-Seven and 28/100 Dollars ($47,547.28) per annum [which represents a rate
of $7.61 per rentable square foot of the 350 Space] payable in equal monthly installments of Three Thousand Nine Hundred Sixty-Two and 27/100 Dollars ($3,962.27) each in advance on or before the first day of each month. 
  

 3 

 c. Adjacent Space (4,665 square feet). With respect to the Adjacent Space, Tenant shall pay
minimum annual rental as follows: 
  
 (i) For the period
commencing as of January 1, 2003 and continuing through December 31, 2003, the sum of Forty-Four Thousand Three Hundred Seventeen and 50/100 Dollars ($44,317.50) per annum [which represents a rate of $9.50 per rentable square foot of the Adjacent
Space] payable in equal monthly installments of Three Thousand Six Hundred Ninety-Three and 13/100 Dollars ($3,693.13) each in advance on or before the first day of each month; 
  
 (ii) For the period commencing on January 1, 2004 and continuing through December 31, 2004, the sum of Forty-Five Thousand
Six Hundred Seventy and 35/100 Dollars ($45,670.35) per annum [which represents a rate of $9.79 per rentable square foot of the Adjacent Space] payable in equal monthly installments of Three Thousand Eight Hundred Five and 86/100 Dollars ($3,805.86)
each in advance on or before the first day of each month; 
  
 (iii) For the period commencing on January 1, 2005 and continuing through December 31, 2005, the sum of Forty-Seven Thousand Twenty-Three and 20/100 Dollars ($47,023.20) per annum [which represents a rate of $10.08 per rentable square foot
of the Adjacent Space] payable in equal monthly installments of Three Thousand Nine Hundred Eighteen and 60/100 Dollars ($3,918.60) each in advance on or before the first day of each month; 
  
 (iv) For the period commencing on January 1, 2006 and continuing through
December 31, 2006, the sum of Forty-Eight Thousand Four Hundred Twenty-Two and 70/100 Dollars ($48,422.70) per annum [which represents a rate of $10.38 per rentable square foot of the Adjacent Space] payable in equal monthly installments of Four
Thousand Thirty-Five and 22/100 Dollars ($4,035.22) each in advance on or before the first day of each month; and 
  
 (v) For the period commencing on January 1, 2007 and continuing through December 31, 2007, the sum of Forty-Nine Thousand Eight Hundred Sixty-Eight and
85/100 Dollars ($49,868.85) per annum [which represents a rate of $10.69 per rentable square foot of the Adjacent Space] payable in equal monthly installments of Four Thousand One Hundred Fifty-Five and 74/100 Dollars ($4,155.74) each in advance on
or before the first day of each month. 
  
 Tenant shall have no
obligation to pay minimum annual rent with respect to the Adjacent Space for the period commencing on the Adjacent Space Commencement Date and continuing until March 31, 2003. 
  
 4. Additional Rent. Commencing as of the Adjacent Space Commencement Date and continuing through December 31, 2007,
Tenant’s Proportionate Share of Tenant Expenses, including insurance costs, taxes and operating expense charges, and any other amounts due and payable under the Lease, shall be adjusted to reflect the Combined Premises. Commencing as of January
1, 2008 and continuing through September 30, 2008, Tenant’s Proportionate Share of Tenant Expenses, including insurance costs, taxes and operating expense charges, and any other amounts due and payable under the Lease, shall be adjusted to
reflect only the 380 Space. 
  

 4 

 5. Tenant Improvements. Tenant shall be solely responsible for any costs associated with the
upfitting improvements in the Adjacent Space to be constructed by Tenant (under Landlord’s supervision) in accordance with plans and specifications for such improvements designed by Tenant and approved in advance, in writing by Landlord. In
addition, Tenant agrees to pay Landlord or its designee a charge of four percent (4%) of the cost of such upfitting improvements for construction consulting services, including, without limitation, the reviewing of plans and specifications, and the
inspecting and coordinating of construction. 
  
 6.
Parking. So long as Tenant is leasing and occupying the Adjacent Space, Tenant shall have the non-exclusive right (in common with other tenants of the Building) to use three (3) additional surface parking spaces in the parking areas adjacent
to the Building for each 1,000 rentable square feet in the Adjacent Space. 
  
 7. Broker’s Commissions. Tenant represents and warrants that it has not had any dealings with any real estate broker, finder or other person, with respect to this Fourth Amendment in any manner, except
Tri-Properties, Inc. Landlord shall pay any commissions or fees that are payable to the above-named brokers or finders with respect to this Fourth Amendment. Tenant shall indemnify and hold Landlord harmless from any and all damages resulting from
any claims that may be asserted against Landlord by any other broker, finder or other person, with whom Tenant has or purportedly has dealt. The provisions of this Section shall survive the termination or expiration of the Lease. 
  
 8. Ratification. Except as hereinafter expressly amended, the Original
Lease shall remain in full force and effect. All covenants, terms, obligations and conditions of said Lease, not modified or amended by this Fourth Amendment to Lease, are hereby ratified and confirmed. 
  

 5 

 IN WITNESS WHEREOF, each of the parties hereto has duly executed this Fourth Amendment to Lease and has
hereunto set its seal all as of the day and year first above written. 
  

					
	 	  	 TENANT:

		
	 	  	 ICAGEN, INC.

	 (CORPORATE SEAL)
	  	 	 	 
			
	 ATTEST:
	  	 By:
	 	 /s/ P. Kay Wagoner

	 	  	 Name:
	 	  

	 	  	 Its:
	 	                          President

	 /s/ Robert J. Jakobs

	  	 	 	 
	 Assist Secretary
	  	 Date:
	 	  

		
	 	  	 LANDLORD:

		
	 	  	 ROYAL CENTER IC, LLC,
 a Delaware limited liability company

			
	 	  	 By:
	 	 Principal Real Estate Investors, LLC,
 a Delaware limited liability company, its
 authorized agent

			
	 	  	 By:
	 	 /s/ Mark F. Scholz

	 	  	 	 	 Mark F. Scholz

	 	  	 	 	 Investment Director
 Asset Management

			
	 	  	 By:
	 	  

	 	  	 	 	 12/9/02

  

 6 

 Exhibit A-1 
  
 ADJACENT SPACE AND COMBINED PREMISES 
  
 [FLOOR PLANS APPEAR HERE]

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