Exhibit 10.54
FIRST LEASE EXTENSION
This First Lease Extension
(“First Lease Extension”) to that certain Lease dated
May 14, 2003 by and between Renault & Handley
Employees Investment Co. (“Lessor”) and Durect
Corporation, a Delaware corporation (“Lessee”) for the
Premises located at 10260 Bubb Road, Cupertino, California
(collectively hereinafter the “Lease”) is dated
December 15, 2008, with reference to the following
facts:
RECITALS
WHEREAS, on September 2, 2008
Lessee exercised its Option to Extend for an additional five (5)
year term as set forth in paragraph 36 of the Lease
agreement.
WHEREAS, Lessor and Lessee wish to
set a new rent schedule for the Option Period.
WHEREAS, provided that the Lessee is
not in default under the Lease after applicable notice and cure
periods, and has faithfully performed its obligations under the
Lease, Lessor hereby grants Lessee a Second Option to Extend
(“Second Option to Extend”) for one additional five
(5) year term commencing March 1, 2014 and terminating
February 28, 2019 (“Second Option Period”) on all
the same terms and conditions of the Lease excepting the Base
Monthly Rent which shall be at ninety five percent (95%) of
the then-current fair market rental value for the Premises as
improved (“FMV”). Lessee shall exercise its Second
Option To Extend by giving written notice to Lessor of its intent
to do so not less than three (3) months nor more than six
(6) months prior to the Second Option Period.
NOW, THEREFORE, for good and
valuable consideration, receipt of which is hereby acknowledged,
Lessor and Lessee hereby agree as follows:
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1.
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Recitals : The recitals set forth above are incorporated
by reference into this First Lease Extension as though set forth at
length.
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2.
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Term :
The Lease is hereby extended for a period of five (5) years,
commencing on March 1, 2009 and terminating February 28,
2014 (the “Option Period”).
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3.
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Rent :
Base Monthly Rent shall be abated for the month of March, 2009.
Commencing on April 1, 2009 and on the first day of each and
every succeeding month to and including February 1, 2010
Thirty Five Thousand Seven Hundred Seventy Eight and No/100ths
Dollars ($35,778.00) shall be due. Commencing on March 1, 2010
and on the first day of each and every succeeding month to and
including February 1, 2011 Thirty Seven Thousand Five Hundred
Sixty Three and No/100ths Dollars ($37,563.00) shall be due.
Commencing March 1, 2011 and on the first day of each and
every succeeding month to and including February 1, 2012
Thirty Eight Thousand Seven Hundred Eighty Four and No/100ths
Dollars ($38,784.00) shall be due. Commencing March 1, 2012
and on the first day of each and every succeeding month to and
including February 1, 2013 Forty Thousand Forty Five and
No/100ths Dollars ($40,045.00) shall be due. Commencing
March 1, 2013 and on the first day of each and every
succeeding month to and including February 1, 2014 Forty One
Thousand Three Hundred Forty Six and No/100ths Dollars ($41,346.00)
shall be due.
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4.
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Tenant
Improvements : Lessor
shall, at its sole expense, replace the existing Boiler/Pump
system, as well as the Chiller/Condenser system upon commencement
of the Option Period per the attached Exhibits A1 and A2. In
addition, not later than March 1, 2010, the Lessor shall, at
its sole expense, replace the A/C units identified in the attached
Exhibit B as #’s 1,2,3,4,5,A,B,C,D, and F, as well as Air
Handler #1. Lessor shall reserve the right to use its own
contractor to perform the installation of the mechanical equipment
provided the scope is identical to that presented in the attached
Exhibits Al, A2 and Exhibit B.
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Lessor agrees that it shall use its
best efforts to perform the aforementioned mechanical installations
such that Lessee will experience minimal disruption to its business
operations and Lessor shall acco
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