Document:

Exhibit 10.10

 

ESCROW DEPOSIT AGREEMENT

 

This ESCROW DEPOSIT
AGREEMENT (this “Agreement”) dated as of this [__] day of [_____] 2018, by and among CHINA SXT PHARMACEUTICALS,
INC., a British Virgin Islands company (the “Company”), having an address at 178 Taidong Rd North, Taizhou
Jiangsu, China, Boustead Securities, LLC (the “Underwriter”), having an address at 6 Venture, Suite 325, Irvine
CA 92618, and SIGNATURE BANK (the “Escrow Agent”), a New York State chartered bank, having an office
at 950 Third Ave, 9th Floor, New York, NY 10022. All capitalized terms not herein defined shall have the meaning ascribed to them
in that certain Prospectus, dated [______], 2018,including all attachments, schedules and exhibits thereto (the “Prospectus”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant
to the terms of the Prospectus, the Company desires to sell (the “Offering”) a minimum of $10,000,000 (the
 “Minimum Amount”) and a maximum of $15,000,000 (the “Maximum Amount”) of its shares (the
 “Shares”). Each Share is being sold at a price of $4.00 per Share, with a minimum investment of $400 (which
minimum investment may be waived by Company). If the Offering is over-subscribed, the Underwriter may place up to an additional
$1,500,000 in Shares to cover such over-subscriptions (the “Over-Allotment”), which amounts shall be in excess of
the Maximum Amount; and

 

WHEREAS, unless
the Minimum Amount is sold by [insert Termination Date] (the “Termination Date”, which is the 180th
day after the date of the Prospectus), or if the Maximum Amount is sold and the Over-Subscription Allowance is exercised by the
Underwriter by [insert Final Termination Date] (the “Final Termination Date”, which is the 45th
day after the Termination Date), the Offering shall terminate and all funds shall be returned to the subscribers in the Offering. If the Minimum Amount is met, the Offering may continue until the Termination Date or Final Termination Date, if extended;
and

 

WHEREAS, the
Company and Underwriter desire to establish an escrow account with the Escrow Agent into which the Company and Underwriter shall
instruct Investors introduced to the Company by Underwriter (the “Investors”) to deposit checks and other instruments
or arrange wire transfers for the payment of money made payable to the order of “Signature Bank as Escrow Agent for CHINA
SXT PHARMACEUTICALS, INC.,” and Escrow Agent is willing to accept said checks and other instruments or wire transfers for
the payment of money in accordance with the terms hereinafter set forth; and

 

WHEREAS, the
Company, as issuer, and Underwriter, as an introducing broker-dealer, represent and warrant to the Escrow Agent that they will
comply with all of their respective obligations under applicable state and federal securities laws and regulations with respect
to sale of the Offering; and

 

     

    
 

    

 

WHEREAS, the
Company and Underwriter represent and warrant to the Escrow Agent that they have not stated to any individual or entity that the
Escrow Agent’s duties will include anything other than those duties stated in this Agreement; and

 

WHEREAS, the
Company and Underwriter warrant to the Escrow Agent that a copy of each document that has been delivered to Investors and third
parties that include Escrow Agent’s name and duties, has been attached hereto as Schedule I.

 

NOW, THEREFORE,
IT IS AGREED as follows:

 

		1.	Delivery of Escrow Funds.

 

(a)        Underwriter
and the Company shall instruct Investors to deliver to Escrow Agent checks made payable to the order of “Signature Bank,
as Escrow Agent for CHINA SXT PHARMACEUTICALS INC.,” or wire transfer to Signature Bank, 950 Third Ave, 9th Floor, New York,
NY 10022, ABA No. 026013576 for credit to Signature Bank, as Escrow Agent for CHINA SXT PHARMACEUTICALS INC., Account No. _____________,
in each case, with the name and address of the individual or entity making payment. In the event any Investor’s address is
not provided to Escrow Agent by the Investor, then Underwriter and/or the Company agree to promptly provide Escrow Agent with such
information in writing. The checks or wire transfers shall be deposited into a non interest-bearing account at Signature Bank entitled
 “CHINA SXT PHARMACEUTICALS INC., Signature Bank, as Escrow Agent” (the “Escrow Account”).

 

(b)       The
collected funds deposited into the Escrow Account are referred to as the “Escrow Funds.”

 

(c)       The
Escrow Agent shall have no duty or responsibility to enforce the collection or demand payment of any funds deposited into the Escrow
Account. If, for any reason, any check deposited into the Escrow Account shall be returned unpaid to the Escrow Agent, the sole
duty of the Escrow Agent shall be to return the check to the Investor and advise the Company and Underwriter promptly thereof.

 

		2.	Release of Escrow Funds. The Escrow Funds shall
be paid by the Escrow Agent in accordance with the following:

 

(a)       In
the event that the Company and Underwriter advise the Escrow Agent in writing that the Offering has been terminated (the “Termination
Notice”), the Escrow Agent shall promptly return the funds paid by each Investor to said Investor without interest or
offset.

 

(b) If prior to
3:00 P.M. Eastern time on the Termination Date, the Escrow Agent receives written notice, in the form of Exhibit A, attached hereto
and made a part hereof, and signed by the Company and Underwriter, stating that the Termination Date has been extended to the Final
Termination Date (the “Extension Notice”), then the Termination Date shall be so extended. 

 

     

    
 

    

 

(c)        Provided
that the Escrow Agent does not receive the Termination Notice in accordance with Section 2(a) and there is the Minimum Amount deposited
into the Escrow Account on or prior to later of the Termination Date or the date stated in the Extension Notice, if any, received
by the Escrow Agent in accordance with Section 2(b) above, the Escrow Agent shall, upon receipt of written instructions, in the
form of Exhibit B, attached hereto and made a part hereof, or in a form and substance satisfactory to the Escrow Agent, received
from the Company and Underwriter, pay the Escrow Funds in accordance with such written instructions, such payment or payments to
be made by wire transfer within one (1) business day of receipt of such written instructions. Such instructions must be received
by the Escrow Agent no later than 3:00 PM Eastern Time on a Banking Day for the Escrow Agent to process such instructions that
Banking Day.

 

(d)       If
by 3:00 P.M. Eastern time on the later of the Termination Date or the date stated in the Extension Notice,
if any, that the Escrow Agent has received in accordance with Section 2(b) above, the Escrow Agent has not received written instructions
from the Company and Underwriter regarding the disbursement of the Escrow Funds or the total amount of the Escrow Funds is less
than the Minimum Amount, then the Escrow Agent shall promptly return the Escrow Funds to the Investors without interest or offset.
The Escrow Funds returned to each Investor shall be free and clear of any and all claims of the Escrow Agent.

 

(e)       The
Escrow Agent shall not be required to pay any uncollected funds or any funds that are not available for withdrawal.

 

(f)       If
the Termination Date, Final Termination Date or any date that is a deadline under this Agreement for giving the Escrow Agent notice
or instructions or for the Escrow Agent to take action is not a Banking Day, then such date shall be the Banking Day that immediately
preceding that date. A “Banking Day” is any day other than a Saturday, Sunday or a day that a New York State
chartered bank is not legally obligated to be opened.

 

		3.	Acceptance by Escrow Agent. The Escrow Agent hereby
accepts and agrees to perform its obligations hereunder, provided that:

 

(a)       The
Escrow Agent may act in reliance upon any signature believed by it to be genuine, and may assume that any person who has been designated
by Underwriter or the Company to give any written instructions, notice or receipt, or make any statements in connection with the
provisions hereof has been duly authorized to do so. Escrow Agent shall have no duty to make inquiry as to the genuineness, accuracy
or validity of any statements or instructions or any signatures on statements or instructions. The names and true signatures of
each individual authorized to act singly on behalf of the Company and Underwriter are stated in Schedule II, which is attached
hereto and made a part hereof. The Company and Underwriter may each remove or add one or more of its authorized signers stated
on Schedule II by notifying the Escrow Agent of such change in accordance with this Agreement, which notice shall include
the true signature for any new authorized signatories.

 

     

    
 

    

 

(b)       The
Escrow Agent may act relative hereto in reliance upon advice of counsel in reference to any matter connected herewith. The Escrow
Agent shall not be liable for any mistake of fact or error of judgment or law, or for any acts or omissions of any kind, unless
caused by its willful misconduct or gross negligence.

 

(c)       Underwriter
and the Company agree to indemnify and hold the Escrow Agent harmless from and against any and all claims, losses, costs, liabilities,
damages, suits, demands, judgments or expenses (including but not limited to reasonable attorney’s fees) claimed against
or incurred by Escrow Agent arising out of or related, directly or indirectly, to this Escrow Agreement unless caused by the Escrow
Agent’s gross negligence or willful misconduct.

 

(d)       In
the event that the Escrow Agent shall be uncertain as to its duties or rights hereunder, the Escrow Agent shall be entitled to
(i) refrain from taking any action other than to keep safely the Escrow Funds until it shall be directed otherwise by a court of
competent jurisdiction, or (ii) deliver the Escrow Funds to a court of competent jurisdiction.

 

(e)       The
Escrow Agent shall have no duty, responsibility or obligation to interpret or enforce the terms of any agreement other than Escrow
Agent’s obligations hereunder, and the Escrow Agent shall not be required to make a request that any monies be delivered
to the Escrow Account, it being agreed that the sole duties and responsibilities of the Escrow Agent shall be to the extent not
prohibited by applicable law (i) to accept checks or other instruments for the payment of money and wire transfers delivered to
the Escrow Agent for the Escrow Account and deposit said checks and wire transfers into the non-interest bearing Escrow Account,
and (ii) to disburse or refrain from disbursing the Escrow Funds as stated above, provided that the checks received by the Escrow
Agent have been collected and are available for withdrawal.

 

4.            Escrow
Account Statements and Information. The Escrow Agent agrees to send to the Company and/or the Underwriter a copy of the Escrow
Account periodic statement, upon request in accordance with the Escrow Agent’s regular practices for providing account statements
to its non-escrow clients and to also provide the Company and/or Underwriter, or their designee, upon request other deposit account
information, including Escrow Account balances, by telephone or by computer communication, to the extent practicable. The Company
and Underwriter agree to complete and sign all forms or agreements required by the Escrow Agent for that purpose. The Company and
Underwriter each consent to the Escrow Agent’s release of such Escrow Account information to any of the individuals designated
by Company or Underwriter, which designation has been signed in accordance with Section 3(a) by any of the persons in Schedule
II.  Further, the Company and Underwriter have an option to receive e-mail notification of incoming and outgoing wire
transfers. If this e-mail notification service is requested and subsequently approved by the Escrow Agent, the Company and Underwriter
agrees to provide a valid e-mail address and other information necessary to set-up this service and sign all forms and agreements
required for such service. The Company and Underwriter each consent to the Escrow Agent’s release of wire transfer information
to the designated e-mail address(es). The Escrow Agent’s liability for failure to comply with this section shall not exceed
the cost of providing such information.

 

     

    
 

    

 

5.            Resignation
and Termination of the Escrow Agent. The Escrow Agent may resign at any time by giving 30 days’ prior written notice
of such resignation to Underwriter and the Company. Upon providing such notice, the Escrow Agent shall have no further obligation
hereunder except to hold as depositary the Escrow Funds that it receives until the end of such 30-day period. In such event, the
Escrow Agent shall not take any action, other than receiving and depositing Investors checks and wire transfers in accordance with
this Agreement, until the Company has designated a banking corporation, trust company, attorney or other person as successor. Upon
receipt of such written designation signed by Underwriter and the Company, the Escrow Agent shall promptly deliver the Escrow Funds
to such successor and shall thereafter have no further obligations hereunder. If such instructions are not received within 30 days
following the effective date of such resignation, then the Escrow Agent may deposit the Escrow Funds held by it pursuant to this
Agreement with a clerk of a court of competent jurisdiction pending the appointment of a successor. In either case provided for
in this Section, the Escrow Agent shall be relieved of all further obligations and released from all liability thereafter arising
with respect to the Escrow Funds.

 

6.            Termination.
The Company and Underwriter may terminate the appointment of the Escrow Agent hereunder upon written notice specifying the date
upon which such termination shall take effect, which date shall be at least 30 days from the date of such notice. In the event
of such termination, the Company and Underwriter shall, within 30 days of such notice, appoint a successor escrow agent and the
Escrow Agent shall, upon receipt of written instructions signed by the Company and Underwriter, turn over to such successor escrow
agent all of the Escrow Funds; provided, however, that if the Company and Underwriter fail to appoint a successor
escrow agent within such 30-day period, such termination notice shall be null and void and the Escrow Agent shall continue to be
bound by all of the provisions hereof. Upon receipt of the Escrow Funds, the successor escrow agent shall become the escrow agent
hereunder and shall be bound by all of the provisions hereof and Escrow Agent shall be relieved of all further obligations and
released from all liability thereafter arising with respect to the Escrow Funds and under this Agreement.

 

7.            Investment.
All funds received by the Escrow Agent shall be held only in non-interest bearing bank accounts at Signature Bank.

 

8.            Compensation.
Escrow Agent shall be entitled, for the duties to be performed by it hereunder, to a fee of $4,000.00, which fee shall be paid
by the Company upon the signing of this Agreement. In addition, the Company shall be obligated to reimburse Escrow Agent for all
fees, costs and expenses incurred or that become due in connection with this Agreement or the Escrow Account, including reasonable
attorney’s fees. Neither the modification, cancellation, termination or rescission of this Agreement nor the resignation
or termination of the Escrow Agent shall affect the right of Escrow Agent to retain the amount of any fee which has been paid,
or to be reimbursed or paid any amount which has been incurred or becomes due, prior to the effective date of any such modification,
cancellation, termination, resignation or rescission. To the extent the Escrow Agent has incurred any such expenses, or any such
fee becomes due, prior to any closing, the Escrow Agent shall advise the Company and the Company shall direct all such amounts
to be paid directly at any such closing. The Escrow Agent shall be entitled to a fee of $1,000 in the event the Agreement is amended
for any reason in accordance with Section 10(d).

 

     

    
 

    

 

9.            Notices.
All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall
be deemed to have been duly given if sent by hand-delivery, by facsimile (followed by first-class mail), by nationally recognized
overnight courier service or by prepaid registered or certified mail, return receipt requested, to the addresses set forth below:

 

If to Underwriter:

 

Boustead Securities,
LLC

6 Venture, Suite 325,

Irvine CA
92618

Attention:
Keith Moore, CEO

Email: keith@boustead1828.com

Fax: +1 815
301 8099

 

With a copy
to:

Sichenzia
Ross Ference Kesner LLP

1185 Avenue
of the Americas, 37th Floor,

New York,
NY 10036

Attention:
Mr. Benjamin Tan

Fax: (212)
930 9725

Email: btan@srfkllp.com

 

If to the Company:

 

China SXT
Pharmaceuticals Inc.

178 Taidong
Rd North, Taizhou

Jiangsu,
China

Attention:
Feng Zhou, CEO

Fax:

 

With a copy
to:

Joan Wu,
Esq.

Hunter Taubman
Fischer & Li LLC

1450 Broadway,
26th Floor,

New York,
NY 10018

Tel: (212)
530-2208

Fax:(212)
202-6380

Email: JWu@htflawyers.com

 

If to Escrow Agent:

 

Signature
Bank

950 Third
Avenue, 9th Floor

New York,
New York 10022

Attention:
John Gonzalez, Group Director & Senior Vice President

Fax: (646)
822-1520

 

     

    
 

    

 

		10.	General.

 

(a)       This
Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York applicable to agreements
made and to be entirely performed within such State, without regard to choice of law principles and any action brought hereunder
shall be brought in the courts of the State of New York, located in the County of New York. Each party hereto irrevocably waives
any objection on the grounds of venue, forum nonconveniens or any similar grounds and irrevocably consents to service of process
by mail or in any manner permitted by applicable law and consents to the jurisdiction of said courts. EACH OF THE PARTIES HERETO
HEREBY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF THE TRANSACTIONS CONTEMPLATED
BY THIS AGREEMENT.

 

(b)       This
Agreement sets forth the entire
agreement and understanding of the parties with respect to the matters contained herein and supersedes all prior agreements, arrangements
and understandings relating thereto.

 

(c)       All
of the terms and conditions of this Agreement shall be binding upon, and inure to the benefit of and be enforceable by, the parties
hereto, as well as their respective successors and assigns.

 

(d)       This
Agreement may be amended, modified, superseded or canceled, and any of the terms or conditions hereof may be waived, only by a
written instrument executed by each party hereto or, in the case of a waiver, by the party waiving compliance. The failure of any
party at any time or times to require performance of any provision hereof shall in no manner affect its right at a later time to
enforce the same. No waiver of any party of any condition, or of the breach of any term contained in this Agreement, whether by
conduct or otherwise, in any one or more instances shall be deemed to be or construed as a further or continuing waiver of any
such condition or breach or a waiver of any other condition or of the breach of any other term of this Agreement. No party may
assign any rights, duties or obligations hereunder unless all other parties have given their prior written consent.

 

(e)       If
any provision included in this Agreement proves to be invalid or unenforceable, it shall not affect the validity of the remaining
provisions.

 

(f)       This
Agreement and any modification or amendment of this Agreement may be executed in several counterparts or by separate instruments
and all of such counterparts and instruments shall constitute one agreement, binding on all of the parties hereto.

 

11.           Form
of Signature. The parties hereto agree to accept a facsimile transmission copy of their respective actual signatures as evidence
of their actual signatures to this Agreement and any modification or amendment of this Agreement; provided, however,
that each party who produces a facsimile signature agrees, by the express terms hereof, to place, promptly after transmission of
his or her signature by fax, a true and correct original copy of his or her signature in overnight mail to the address of the other
party.

 

12.           No
Third-Party Beneficiaries.  This Agreement is solely for the benefit of the parties and their respective successors
and permitted assigns, and no other person has any right, benefit, priority, or interest under or because of the existence of this
Agreement.

 

     

    
 

    

 

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

 

	China SXT Pharmaceuticals Inc.	 	 	Boustead Securities, LLC
	 	 	 	 	 
	By: 			By: 	
	 	Name: Feng Zhou	 		Name:   Keith Moore
	 	Title:  CEO	 		Title:   CEO
	 	 	 	 	 
	SIGNATURE BANK	 	 	 
	 	 	 	 
	By: 		 	 	 
	 	Name:	 	 	 
	 	Title:	 	 	 
	 	 	 	 	 
	By: 		 	 	 
	 	Name:	 	 	 
	 	Title:	 	 	 

 

     

    
 

    

 

Schedule
I

 

OFFERING DOCUMENTS

 

    	 	9	 

    
 

    

 

Schedule
II

 

The Escrow Agent is
authorized to accept instructions signed or believed by the Escrow Agent to be signed by any one of the following on behalf of
the Company and Underwriter.

 

[insert Company’s full legal name]

 

	 	Name	 	True Signature	 
	 	 	 	 	 
	 	 	 	 	 

  

[insert Underwriter’s full legal
name]

 

	 	Name	 	True Signature	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

    	 	10	 

    
 

    

 

Exhibit A

 

EXTENSION NOTICE

 

Date:

 

Signature Bank

[address of financial center]

______________

Attention: [name & title of Group
Director]

 

Dear _________:

 

In accordance with the terms of Section
2(b) of an Escrow Deposit Agreement dated ___ _______, by and among [insert Company’s full legal name] (the “Company”),
[insert Underwriter’s full legal name] (“Underwriter”), and Signature Bank (the “Escrow Agent”),
the Company and Underwriter hereby notifies the Escrow Agent that the Termination Date has been extended to __________ __, 20__,
the Final Termination Date.

 

Very truly yours,

 

[insert Company’s full legal name]

 

By:_____________

Name:__________

Title:____________

 

[insert Underwriter’s full legal name]

 

By:_____________

Name:___________

Title:____________

 

     

    
 

    

 

Exhibit B

 

FORM OF ESCROW RELEASE NOTICE

 

Date:

 

Signature Bank

[address of financial center]

______________

Attention: [name & title
of Group Director]

 

Dear _________:

 

In accordance with the terms of Section
2(c) of an Escrow Deposit Agreement dated as of ________ __, 20__ (the "Escrow Agreement"), by and between ____________
(the "Company"), Signature Bank (the "Escrow Agent") and __________. ("Underwriter"), the Company
and Underwriter hereby notify the Escrow Agent that the ________ closing will be held on ___________ for gross proceeds of $_________.

 

PLEASE DISTRIBUTE FUNDS BY WIRE TRANSFER
AS FOLLOWS (wire instructions attached):

 

		________________________:	$

 

		________________________:	$

 

		________________________:	$

 

Very truly yours,

 

[insert Company’s full legal name]

 

By:_____________

Name:__________

Title:____________

 

[insert Underwriter’s full legal name]

 

By:_____________

Name:___________

Title:____________drrx-ex101_14.htm

Exhibit 10.1

FIFTH AMENDMENT TO LEASE

 

This Fifth Amendment to Lease (this “Fifth Amendment”) is made and entered into effective as of August 15, 2018, which is the date that this Fifth Amendment has been fully executed by all of those persons required to sign it (the “Effective Date”), by and between De Anza Enterprises LLC, a California limited liability company (“Landlord”), and DURECT Corporation, a Delaware corporation (“Tenant”), with respect to the following facts:

 

R E C I T A L S:

 

A.On or about February 18, 1999, De Anza Enterprises, Ltd., a joint venture of Hover Family Trust, Sarah T. Behel, Julia G. Hover Smoot, David H. Hover, Teresa Korol, and Johnson Family Trust (the “Joint Venture”), entered into that certain Modified Net Single Tenant Lease Agreement (the “Original Lease”) with Tenant with respect to the lease of that certain real property and improvements thereon commonly known as 10240 Bubb Road, Cupertino, California, as more particularly described in the Original Lease (the “Premises”).

 

B.On or about February 18, 2004, the Joint Venture and Tenant entered into that certain Amendment to Lease Agreement with respect to the lease of the Premises (the “First Amendment”); on or about August 6, 2009, the Joint Venture and Tenant entered into that certain Second Amendment to Lease with respect to the lease of the Premises (the “Second Amendment”); on or about December 21, 2010, the Joint Venture and Tenant entered into that certain Third Amendment to Lease with respect to the lease of the Premises (the “Third Amendment”); on or about August 20, 2013, the Joint Venture and Tenant entered into that certain Fourth Amendment to Lease with respect to the lease of the Premises (the “Fourth Amendment”).  The Original Lease, the First Amendment, the Second Amendment, the Third Amendment, and the Fourth Amendment are referred to herein collectively as the “Lease.”

 

C.The Joint Venture was Landlord’s predecessor in interest as the owner of the Premises and landlord under the Lease.

 

D.All capitalized terms used in this Fifth Amendment and not otherwise defined herein shall have the meanings ascribed to them in the Lease.

 

E.Landlord and Tenant have now agreed to amend the Lease to extend the Extension Term and to make such other changes to the Lease upon the terms and conditions as described herein.

 

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants and agreements hereinafter set forth, the parties hereto hereby agree as follows:

 

1.Extension of Expiration Date; Affirmation of Option.  The parties acknowledge that Recital C of the Fourth Amendment provides that the Extension Term shall expire on February 19, 2019 (the “Expiration Date”).  The parties further acknowledge that Section 2 of the Fourth Amendment grants Tenant an Option, which allows Tenant to further extend the term 

1

 

 

of the Lease beyond the Expiration Date for an additional five (5) year period, which is subject to the terms and conditions set forth in Section 35 of the Original Lease, and which shall be treated as the Second Renewal Term under Section 35 of the Original Lease.  The parties further acknowledge that, pursuant to Section 35 of the Original Lease, the Option for the Second Renewal Term shall be exercised by Tenant giving Landlord written notice of its intention to do so at least one hundred eighty (180) days before the end of First Renewal Term, which the parties agree for purposes of this Fifth Amendment shall mean the Expiration Date.  The parties further acknowledge that the date that is one hundred eighty (180) days before the Expiration Date (without regard for any modifications made pursuant to this Section 1 of the Fifth Amendment) is August 23, 2018.  Based on the foregoing facts, the parties hereby agree that, as of the Effective Date, the Expiration Date is hereby extended for an additional five (5) year period (the “New Extension Term”), to February 19, 2024, and the Option granted to Tenant for a Second Renewal Term pursuant to Section 35 of the Original Lease, as modified by the provisions of Section 2 of the Fourth Amendment and this Section 1 of the Fifth Amendment, shall remain exercisable as provided under the terms and conditions of the Lease by Tenant giving Landlord written notice of its intention to do so on or before August 23, 2023.  For the avoidance of doubt, provided that Tenant gives Landlord written notice of its intention to exercise the Option for the Second Renewal Term on or before August 23, 2023, and is not in default of any of the terms and conditions of the Lease, the Second Renewal Term shall extend from February 20, 2024 through February 19, 2029. 

 

2.Base Monthly Rental for the New Extension Term.  The parties hereby agree that the Lease is hereby further amended so that, commencing on the first day of the New Extension Term, the monthly rent for the Premises and the Service Yards (the “Rent”) shall be payable as follows:

 

				
	
 
	
Months of Term
	
Calendar Period
	
Rent

 

	
 
	
1 – 12
	
2/20/2019 – 2/19/2020
	
$80,000.00

	
 
	
13 – 24
	
2/20/2020 – 2/19/2021
	
$82,400.00

	
 
	
25 – 36
	
2/20/2021 – 2/19/2022
	
$84,872.00

	
 
	
37 – 48
	
2/20/2022 – 2/19/2023
	
$87,418.16

	
 
	
49 – 60
	
2/20/2023 – 2/19/2024
	
$90,040.70

	
 
	
 
	
 
	
 

3.HVAC Replacement.  Notwithstanding anything in Section 18.C of the Original Lease to the contrary, but in addition to and without limiting Landlord’s obligations thereunder, the parties agree that Landlord shall replace the HVAC equipment on the building at the Premises (the “Building”) at Landlord’s sole cost and expense in the manner described in that certain Revised Proposal dated March 26, 2018, prepared by Therma Corporation, a copy of which is attached hereto and made a part hereof as Exhibit “A” (the “HVAC Work”), subject to the following additional terms and conditions:

 

	
 
	
a.
	
The parties shall schedule the performance of as much of the HVAC Work as practicably possible to occur during Tenant’s 2018 Christmas holiday shutdown.

 

2

 

 

	
 
	
b.
	
All permits required for the performance of the HVAC Work shall be included in the HVAC Work at Landlord’s sole cost.

 

	
 
	
c.
	
All repairs to the structural components of the Building required for the performance of the HVAC Work shall be included in the HVAC Work at Landlord’s sole cost.

 

	
 
	
d.
	
All roof repairs required for the performance of the HVAC Work shall be included in the HVAC Work at Landlord’s sole cost.

 

	
 
	
e.
	
All electrical work required for the performance of the HVAC Work shall be included in the HVAC work at Landlord’s sole cost.

 

4.Premises Repairs.  Notwithstanding anything in Section 17 of the Original Lease to the contrary, but in addition to and without limiting Landlord’s obligations thereunder, the parties agree that Landlord shall repair and repaint the front parapet of the building (the “Building”), repair the damage caused to the front stairway leading to the Building by the growth of a redwood tree, and remedy any safety concerns caused as a result of such damage, all at Landlord’s sole cost and expense.

 

5.Representation; Brokerage Commissions.  With regard to the negotiation of the terms of this Fifth Amendment, the parties acknowledge that Tenant has been represented by Joe Elliott and Colliers International (“Tenant’s Broker”), and that Landlord has been represented by Daniel S. Gonzales, Esq., and the law firm of Ferrari Ottoboni Caputo & Wunderling.  The parties further acknowledge that Landlord shall be responsible for the payment of its own attorneys’ fees in the negotiation of the terms of this Fifth Amendment.  The parties agree that Landlord shall pay a commission of 11⁄2% of the value of the New Extension Term to Tenant’s Broker pursuant to the terms and conditions of a separate agreement between Landlord and Tenant’s Broker.  The parties further agree that each party shall be responsible for the payment of its own representation in the negotiation of the terms of the Second Renewal Term in the event that Tenant exercises the Option for a Second Renewal Term.

 

6.Miscellaneous

 

a.Conflicts.  Notwithstanding anything to the contrary in the Lease, in the event of a conflict or inconsistency between the terms of the Lease and the terms and conditions of this Fifth Amendment, the terms and conditions set forth in this Fifth Amendment shall control and shall be deemed to supersede the printed terms of the Lease.  Whether or not specifically amended by this Fifth Amendment, all of the terms and provisions of the Lease are hereby amended to the extent necessary to give effect to the purpose and intent of this Fifth Amendment.

 

b.Ratification.  Except as expressly amended and/or modified by this Fifth Amendment, the terms and provisions of the Lease are hereby ratified, confirmed, and shall remain unmodified and in full force and effect. 

 

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c.Authority.  The individuals signing this Fifth Amendment on behalf of each party represent and warrant that such individual has the authority under the company’s governing documents to execute and deliver this Fifth Amendment in the name of and on behalf of the company. 

 

d.Successors and Assigns.  The Lease, as amended hereby, shall apply to and bind Landlord and Tenant and their respective successors and assigns.

 

e.Multiple Counterparts.  This Fifth Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute together one and the same instrument.  In order to facilitate the agreements contemplated by this Fifth Amendment, signatures transmitted by facsimile or via e-mail in a “PDF” format may be used in place of original signatures.  Each party intends to be bound by such party’s facsimile or “PDF” format signature on this Fifth Amendment, is aware that the other parties are relying on such party’s facsimile or “PDF” format signature, and hereby waives any defenses to the enforcement of this Fifth Amendment based upon the form of signature.

 

(The remainder of this page is intentionally left blank; signatures follow on next page.)

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

 

LANDLORD:TENANT:

 

De Anza Enterprises LLC,DURECT Corporation,

A California limited liability companya Delaware corporation

 

By:/s/ Sarah (“Sally”) BehelBy:/s/ Matthew J. Hogan

 

Name: Sarah (“Sally”) Behel Name: Matthew J. Hogan

 

Its: Manager Its: Chief Financial Officer

 

Dated: 8/7/2018Dated: 8/15/2018

 

 

 

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EXHIBIT “A”

(Therma Corporation Revised Proposal dated March 26, 2018)

 

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