Document:

Exhibit 10.24

 EXHIBIT 10.24 
  
 SEPARATION, WAIVER AND RELEASE AGREEMENT 
  
 THIS SEPARATION, WAIVER AND RELEASE AGREEMENT (“Agreement”) is made by and between Robert J. Hutchinson
(“Employee”) and Commercial Federal Corporation, a Nebraska Corporation (“CFC”), effective on the date described in Subsection 4(B) of this Agreement. 
  
 As used in this Agreement, the “Employer” includes CFC, as well as Commercial Federal Bank, A Federal Savings Bank
(“CFB”), and each and every other corporation, organization or legal entity that directly or indirectly is or was a parent, subsidiary, partner, joint venturer, or other entity affiliated with CFC and/or CFB by common or interrelated
ownership or otherwise, or which is or was a predecessor, successor or assign of CFC and/or CFB. 
  
 RECITALS: 
  
 This Agreement is made with reference to the following facts and objectives: 
  

	 	(a)	Employee was employed by the Employer prior to April 23, 2004 as President and Chief Operating Officer of CFC and of CFB; 

  

	 	(b)	Employee separated or is separating from employment by the Employer effective at 2:00 p.m. local time on April 23, 2004 (“Separation Date”); and 

 

	 	(c)	The parties are entering into this Agreement in order to settle any and all existing and potential disputes that they have or may have with one another with respect to
Employee’s employment and separation from employment and to release the Employer completely from any and all claims arising therefrom. 

  
 NOW, THEREFORE, in order to carry out the intent of the parties as set forth in the foregoing recitals, and in consideration of the provisions and mutual
promises and covenants contained in this Agreement, the parties agree as follows: 
  
 1. SEPARATION. If Employee has not previously done so, then effective at 2:00 p.m. local time on April 23, 2004: (A) Employee hereby resigns from employment by the Employer; (2) Employee hereby further resigns from the Board of
Directors of Commercial Federal Corporation, the Board of Directors of Commercial Federal Bank, and from every other corporate director and corporate officer position that Employee holds or ever held with Commercial Federal Corporation, Commercial
Federal Bank and any of their affiliated entities; and (3) Employee withdraws his candidacy and declares that Employee does not wish to stand for re-election to the Board of Directors of Commercial Federal Corporation at the annual meeting of the
Corporation in May 2004. 
  

	2.	SEPARATION AMOUNT, CONDITIONS OF PAYMENT, AND SEPARATION BENEFITS. 

  

	 	(A)	Separation Amount. Except as otherwise provided in this Subsection 2(A) or in any other provision of this Agreement: 

  

	 	(1)	CFB will pay a Separation Amount to Employee by continuing to pay to Employee – through June 30, 2005 – Employee’s base salary at Employee’s base salary rate as
in effect on April 1, 2004. 

	 	(2)	Subject to the terms of this Agreement, the Separation Amount will be paid in approximately equal semi-monthly installment payments, less applicable federal and state tax
withholdings and less any amounts withheld pursuant to any other provision of this Agreement or authorized by Employee to be withheld. 

  

	 	(3)	One installment payment of the Separation Amount will be made on each of CFB’s regular paydays (the fifteenth and last days of the month). The first such installment payment
will be due on May 14, 2004 and the last such installment payment will be due on June 30, 2005, provided, however, that no installment payment or payments will be made before CFB’s first regular pay day that is at least
five (5) working days after the effective date of this Agreement as specified in Section 4(B); and provided further, that none of the Separation Amount will be paid to Employee if, before the first semi-monthly installment
payment has been made by CFB, Employee accepts any position of employment or re-employment that may be offered to Employee by the Employer; and provided further, that if one or more semi-monthly installment payments have been
made to Employee, no further portion of the Separation Amount will be paid to Employee after Employee accepts any position of employment or re-employment that may be offered to Employee by the Employer. 

  

	 	(B)	Separation Benefits. 

  

	 	(1)	If Employee is eligible to do so and elects to continue health and/or dental coverage under the Employer’s health and/or dental plan pursuant to Subsection 3(A) of this
Agreement, the Employer will contribute to the cost of such continuation coverage on the same basis that the Employer contributes to the cost of such coverage for active employees of the Employer; provided, however,
Employer shall not so contribute to the cost of such continuation coverage(s) after the earlier of June 30, 2005 or the date that Employee (or his dependents, as may be applicable) ceases to be eligible for continuation coverage under
the health care continuation provisions of federal law, 29 U.S.C. §§ 1161-1169 (“COBRA”) or the date that Employer, pursuant to any provision of this Agreement, ceases making further payments to Employee of the Separation
Amount described in Subsection 2(A). Employee’s required contribution to the cost of continuation coverage during the period in which Employer is making payments of the Separation Amount to Employee will be made by withholdings that CFB will
make from the Separation Amount payments. Employee shall be responsible for paying the full cost of any continuation coverage after such period. 

  

	 	(2)	CFB will provide Employee with outplacement services in accordance with CFB’s usual executive outplacement package, the cost of which shall not exceed $12,000.00 unless
otherwise approved by CFB. 

  

	 	(C)	Commencement of Separation Payments and Benefits. Employee understands that the payment(s) of the Separation Amount and the provision of Separation Benefits under this
Agreement will not begin until at least five (5) working days after the effective date of this Agreement as described in Subsection 4(B). 

  

	 	(D)	Termination of Separation Pay and Benefits. Employee understands that if Employee is employed or re-employed by the Employer, then no further payment(s) of the Separation
Amount and no further provision of the Separation Benefits will be paid or provided to Employee under this Agreement after the date that Employee accepts such employment or re-employment. 

	

	

	

  

 II 

	 	(E)	Conditions. Employee understands that the payment of a Separation Amount to Employee and the provision of Separation Benefits to Employee under this Agreement are expressly
conditioned and contingent on: 

  

	 	(1)	Employee’s returning to the Employer all of the Employer’s property in Employee’s possession or control [including but not limited to all tangible “confidential
or proprietary information or data” as defined in Subsection 7(B), and all other property described in Subsection 3(E)]; 

  

	 	(2)	Employee’s proper completion and submission to the Employer of any and all of Employee’s expense reimbursement requests; 

  

	 	(3)	Employee’s repayment of all amounts due and owing to the Employer (such as personal expenses, bills, advances and credit card balances as of the Separation Date); and

  

	 	(4)	Employee’s performance and observance of all of the provisions of this Agreement in accordance with their terms. 

  
 Employee acknowledges that the payment of a Separation Amount and provision
of Separation Benefits to Employee under this Section 2 is in addition to anything that Employee is already entitled to pursuant to Employee’s employment with the Employer. Employee understands that the Separation Benefits being offered to
Employee under this Section 2 are being offered subject to all applicable laws, rules and regulations, as well as all terms and conditions of any governing plan documents, as amended from time to time, that are applicable to any or all of the
Separation Benefits, including but not limited to laws, rules, regulations, terms and conditions relating to availability, eligibility, participation, administration, cost, and the payment, timing and amount of benefits. 
  
 It is understood and agreed that the payment of a Separation Amount and the
provision of Separation Benefits under this Agreement constitute a voluntary, ad hoc severance arrangement, and that same shall neither create nor be evidence of any severance pay plan or employee welfare benefit plan. No employee or former employee
of CFC, CFB or their affiliated entities, other than Employee, shall have any rights or claims under the above-described voluntary, ad hoc arrangement. 
  

	3.	OTHER BENEFITS. 

  

	 	(A)	If Employee had insurance coverage under the Employer’s health and/or dental insurance plan(s) on the Separation Date, Employee may elect to continue such health and/or dental
insurance coverage(s) for Employee and Employee’s eligible dependents pursuant to and subject to the health care continuation provisions of federal law, 29 U.S.C. §§ 1161-1169 (“COBRA”). If Employee had insurance coverage
under the Employer’s health and/or dental insurance plan(s) on the Separation Date, the Employer will mail or has mailed to Employee appropriate information and forms regarding election of continuation insurance coverage under COBRA. If
Employee elects to continue such coverage(s), Employee shall, except as provided in Subsection 2(B) of this Agreement, be responsible during the applicable continuation period allowed by “COBRA” — normally eighteen (18) months —
for paying 100% of the cost of such coverage(s). If Employee elects to continue such coverage(s), Employee shall also pay an administrative fee of two percent (2%) of the cost of such coverage(s) during the applicable continuation period. If
Employee (or any of Employee’s dependents) at any pertinent time becomes ineligible for continuation coverage under COBRA or further continuation coverage under the provisions of the Employer’s plan(s) consistent with COBRA, then the
Employer shall be excused from any further obligation under this subsection to Employee (or to the dependent(s) of Employee thus becoming ineligible for COBRA continuation coverage, as the case may be). 

	

  

 III 

	 	(B)	Employee acknowledges and agrees that accrued but unused paid time off entitlements due from Employer to Employee, if any, less applicable withholdings, will be paid to Employee by
Employer by May 14, 2004. 

  

	 	(C)	Employee may exercise any stock options previously awarded to Employee by Employer and which have previously vested or will vest on or before April 23, 2004 in accordance with the
terms of the applicable plan document(s) and the terms of such options, if employee chooses to do so. 

  

	 	(D)	Employee agrees to submit any claims Employee may have for reimbursement of expenses by the date Employee signs this Agreement or forty days after the Separation Date, whichever is
later. The Employer will reimburse Employee for such expenses to the extent that the expenses claimed are proper and allowable under the Employer’s applicable policies. Employee understands and agrees that any expenses not submitted by Employee
for reimbursement by the date Employee signs this Agreement or forty days after the Separation Date, whichever is later, will be disallowed and not reimbursed by the Employer. 

  

	 	(E)	Employee agrees to return to the Employer, within five (5) days after the effective date of this Agreement as specified in subsection 4(B), any and all tangible property, data and
information of any kind that belongs to the Employer, including but not limited to documents, records and data in whatever format possessed or controlled, manuals, books, files, keys, credit cards, access cards, cellular telephones, personal
electronic data devices, pagers, identification cards, materials, supplies, computer equipment and software, data storage disks and other media, and electronic transmissions and data whether or not now located or stored on or off the Employer’s
property, premises or storage media. 

  

	 	(F)	The Employer shall not pay any of Employee’s membership dues or other charges regarding any professional organizations or country clubs after April 23, 2004.

  

	 	(G)	All other benefits, and the continuation or cessation thereof, shall be handled, addressed and administered in accordance with the terms of the Employer’s plans, policies and
procedures in effect on April 23, 2004. 

  

	4.	RIGHT TO REVOKE AND EFFECTIVE DATE. 

  

	 	(A)	This Agreement is being formally offered to Employee for Employee’s consideration on May 4, 2004. Employee is advised and hereby acknowledges that Employee will be allowed
twenty-one (21) days after May 4, 2004 in which to determine whether to accept the terms offered by this Agreement and to sign this Agreement. Employee may, if Employee so chooses, sign this Agreement prior to the expiration of the 21-day period.

  

	 	(B)	Employee may revoke this Agreement at any time within seven (7) days after Employee signs this Agreement. Such revocation shall be made by delivering written notice of such
revocation to Christine M. Shimokawa, Vice-President and Manager of Human Resource Services, Commercial Federal Bank, 13220 California Street, Suite 200, Omaha, Nebraska 68154-5225, or by faxing such notice of revocation to Ms.
Shimokawa at (402) 514-5484. Unless Employee timely revokes this Agreement by one of such methods, this Agreement shall become effective on the eighth day after Employee signs this Agreement. 

  

 IV 

 5. RELEASE. In consideration of the covenants, agreements, promises and recitals contained in this Agreement,
Employee on behalf of Employee and Employee’s assigns, heirs, successors, and personal representatives, hereby knowingly and voluntarily releases and forever discharges the Employer, and each of the Employer’s past and present
agents, employees, officers, directors, attorneys, predecessors, successors and assigns – all of such released parties being collectively referred to hereinafter as “Released Parties” – from any and all claims, damages, demands,
liabilities, attorney fees and expenses of any nature whatsoever arising out of or relating in any way to Employee’s employment with the Employer and/or separation from that employment, whether known or unknown. This release shall include and
extend to, without limitation, any and all claims, demands, and liabilities under, asserting, or pursuant to federal, state, or local laws, regulations, decisions, or ordinances generally, or prohibiting employment discrimination (including Title
VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination in Employment Act), or based upon any alleged tort or civil wrongdoing, breach of any contract, wrongful discharge, or any other alleged wrongdoing
whatsoever. This release shall be construed broadly, it being the intent of the parties to fully compromise, settle and resolve any and all claims and potential claims of Employee against Released Parties and any of them, other than claims arising
under any unemployment compensation law or workers’ compensation law or arising after Employee signs this Agreement. 
  
 EMPLOYEE UNDERSTANDS THAT IF EMPLOYEE SIGNS THIS AGREEMENT, EMPLOYEE WILL HAVE NO FURTHER CLAIMS OF ANY NATURE WHATSOEVER AGAINST THE EMPLOYER OR AGAINST ANY OTHER OF
THE RELEASED PARTIES, EXCEPT FOR CLAIMS ARISING UNDER ANY UNEMPLOYMENT COMPENSATION LAW OR WORKERS’ COMPENSATION LAW AND CLAIMS WHICH FIRST ARISE AFTER EMPLOYEE SIGNS THIS AGREEMENT. 
  
 6. PROMISE NOT TO SUE. Employee promises and agrees that Employee will not initiate,
or participate as a party plaintiff in, any lawsuit, claim, arbitration or other proceeding in any court, agency, or other forum against the Employer – or against any of the other Released Parties – based on, arising out of, or in
connection with Employee’s employment by the Employer or Employee’s separation from that employment, other than claims arising under any unemployment compensation law or workers’ compensation law and claims arising after
Employee signs this Agreement. 
  
 If Employee breaches this
promise not to sue, then (A) the Employer shall be entitled to apply for and receive an injunction to restrain the breach of Employee’s promise not to sue, (B) the Employer shall not be obligated to continue payment of any Separation Amount to
Employee or to continue to provide any Separation Benefits to Employee under Section 2 of this Agreement, (C) Employee shall be obligated upon demand to repay to the Employer all but $100 of the Separation Amount paid to Employee and to repay the
costs of the Separation Benefits paid or made available to Employee by Employer, and (D) Employee will be obligated to pay to the Employer its costs and expenses in enforcing this Agreement and defending against such lawsuit or proceeding (including
court costs, expenses and reasonable attorney fees). Employee further agrees that the foregoing promises in this Section 6 shall not affect the validity of this Agreement and shall not be deemed to be a penalty or a forfeiture. 
  
 This promise not to sue does not prohibit Employee from filing a charge with
the U.S. Equal Employment Opportunity Commission or with any of its state or local counterpart agencies. However, Employee waives and releases Employee’s right to any monetary recovery and to any other relief or remedy should any federal,
state, or local administrative agency pursue any claim or claims on Employee’s behalf arising out of or related to Employee’s employment and/or separation from employment by the Employer and/or by any of the other Released Parties.
Employee also represents that Employee has not suffered any on-the-job injury or contracted any occupational disease or illness for which Employee has not already filed a claim. 
  

 V 

 The waiver and release set forth in Section 5 and the promise not to sue set forth in this Section 6
shall not be interpreted to prohibit Employee from seeking any benefits to which Employee might otherwise be legally entitled under any unemployment compensation law or workers’ compensation law. 
  

	7.	FUTURE EMPLOYMENT, CONFIDENTIAL INFORMATION, COOPERATION OF AND DISCLOSURES BY EMPLOYEE. 

  

	 	(A)	Employee hereby waives any entitlement Employee may have or claim to have to employment or future employment by the Employer or by any of the other Released Parties.

  

	 	(B)	Employee agrees that Employee will not disclose, disseminate, or use any confidential or proprietary information or data of the Employer or concerning the Employer’s employees,
operations, customers, existing or contemplated products or services, pricing policies, marketing and hiring techniques, financial information, costs, profits, sales, confidential plans of any nature, or other confidential or proprietary information
or data of any kind, in any future employment, self-employment or otherwise. This subsection 7(B) will preclude Employee from using and disclosing only “confidential or proprietary information or data” of the Employer, which shall be
interpreted to mean information and data that the Employer reasonably seeks to retain and preserve as confidential and has not publicly disclosed. 

  

	 	(C)	Employee agrees that during the period in which the Employer is making payments of the Separation Amount to Employee, Employee will, if Employer so requests, reasonably cooperate
with and assist Employer in the prosecution or defense of any pending, threatened or contemplated litigation, arbitration, administrative proceeding, or other contested or adversarial proceeding involving the Employer or the Employer’s
interests. The Employer agrees to reimburse Employee, or at the Employer’s option advance to Employee, any reasonable expenses that are necessarily incurred by Employee in providing such requested cooperation and assistance. This is not
intended to prevent Employee from seeking or obtaining full-time employment or self-employment during the period in which the Employer is making payments of the Separation Amount to Employee, and the Employer agrees that it will not require
assistance or cooperation from Employee that would be unnecessarily burdensome on Employee or that would unnecessarily interfere to an unreasonable extent with any employment or self-employment of Employee. 

  

	 	(D)	Employee agrees that if the Employer discovers that Employee has engaged in any conduct that the Employer reasonably deems to be in material violation of its policies, ethical
standards or practices of operation, the Employer may immediately cease and terminate any and all further payments of any Separation Amount and Separation Benefits provided for in this Agreement and may also seek any additional remedies available to
the Employer in law or equity. In any such event, Employee shall be allowed to retain One-Hundred Dollars of the Separation Amount – or, if Employer has not previously paid any portion of the Separation Amount to Employee, Employer shall pay
such One-Hundred Dollars to the Employee – as consideration for the other provisions of this Agreement. 

  

 VI 

	8.	NON-SOLICITATION PROVISION; BREACH. 

  

	 	(A)	Non-Solicitation Provision. As a material inducement to Employer’s offer of this Agreement to Employee, Employee agrees that Employee will not – at any time prior
to June 30, 2005, without the written consent of the Chairman of the Board of Directors of CFB – directly or indirectly, on Employee’s own behalf or on behalf of any other person or business entity, solicit, divert or hire away from CFB,
or attempt to solicit, divert or hire away from CFB, or assist or provide information that is of assistance in soliciting, diverting or hiring away from CFB, any person who was a full-time or part-time employee of CFB on April 22, 2004, regardless
of whether such person’s employment by CFB was pursuant to a written agreement and regardless of whether such person’s employment by CFB was for a definite period of time or at will. For purposes of this subsection, if any person who was a
full-time or part-time employee of CFB on April 22, 2004 becomes, prior to June 30, 2005, an employee of (or provider of contract services to) any person or business entity who then employs Employee, it shall be deemed established that Employee has
violated this provision unless Employee proves by clear and convincing evidence that Employee did not violate this provision and did not in any manner or respect participate in any attempt or effort to solicit, divert or hire such person away from
CFB. 

  

	 	(B)	Breach. If Employee breaches any provision of this Section 8, Employer shall not be obligated to continue paying to Employee any further portion of the Separation Amount
described in Section 2 of this Agreement, and shall not be obligated to continue contributing to the cost of Employee’s and Employee’s dependents’ continued health and/or dental insurance as described in Section 2 of this Agreement.

  

	9.	PROMISE OF CONFIDENTIALITY. 

  

	(A)	Except as provided in the following Subsection 9(B), Employee agrees and promises that Employee and Employee’s attorneys, representatives and successors will keep the financial
terms of this Agreement completely confidential. 

  

	(B)	The financial terms of this Agreement may be disclosed by Employee, Employee’s attorneys, representatives and successors as follows, and such disclosures shall not violate the
promise of confidentiality stated above: (1) to Employee’s spouse, if any, and to Employee’s attorney(s), representative(s), and tax return preparer(s) or advisor(s), provided that they first agree that they will not further
disclose any such information inconsistently with the provisions of this Section 9; (2) to a governmental agency having a legitimate interest in obtaining such information; (3) as required under penalty of law or legal process; (4) as required or
reasonably necessary for Employee to prosecute or defend any legal action or claim; (5) as necessary for Employee or Employee’s attorneys to comply with a subpoena or court order, or as required by or in discovery proceedings in litigation or
administrative proceedings; and (6) as reasonably necessary to implement, perform or enforce this Agreement. It is understood that, if other persons hereafter inquire of Employee or Employee’s representative(s), they may respond by
stating, “All matters between Employee and Commercial Federal were (or have been) satisfactorily resolved.” Any such response (or substantially equivalent response), without any further elaboration, will not be deemed to be a
violation of the above promise of confidentiality. 

  

	(C)	If Employee breaches the promise of confidentiality set forth in this Section 9 and if the Employer demonstrates the existence of such breach by clear and convincing evidence, then
the Employer shall be entitled to any remedies available to it and Employee shall be further obliged and required to return to the Employer all but One-Hundred Dollars of any Separation Amount paid to Employee under Section 2 of this Agreement.

	

  

 VII 

	10.	NONDISPARAGEMENT. Employee agrees and promises not to make any disparaging remarks about or references to the Employer or any of the other Released Parties described in
Section 5 of this Agreement. If Employee breaches this promise and if the Employer demonstrates the existence of such breach by clear and convincing evidence, then the Employer and any of the other Released Parties shall be entitled to any remedies
available to them and Employee shall be further obliged and required to return to the Employer all but One-Hundred Dollars of any Separation Amount paid to Employee under Section 2 of this Agreement. 

  
 Nothing in this Agreement shall be interpreted to prohibit or restrict
Employee from providing truthful information concerning Employee’s employment, the business of the Employer, or the business of any of the other Released Parties, to any governmental or regulatory authority or agency, or as may be required by
legal process. 
  

	11.	ACKNOWLEDGEMENTS. Employee acknowledges and represents as follows: 

  

	 	(A)	This Agreement constitutes an agreement that is legally binding on Employee and that is enforceable in accordance with its terms. 

  

	 	(B)	Employee has had ample opportunity to review this Agreement. Further, Employee has had ample opportunity, prior to signing this Agreement, to consult with an attorney of
Employee’s own choosing regarding the terms, conditions and ramifications of this Agreement, and the Employer has advised and encourages Employee to do so. Employee has in fact consulted with an attorney of Employee’s own choosing in that
regard and for that purpose, or Employee freely and voluntarily has elected not to do so. 

  

	 	(C)	Employee is entering into this Agreement knowingly, voluntarily, and of Employee’s own free will and Employee is not under any duress or undue influence.

  

	 	(D)	Employee has read and understands this Agreement. Employee acknowledges and understands that by signing this Agreement, Employee is releasing and waiving any and all claims
against the Employer and the other Released Parties that arise out of Employee’s employment by the Employer and Employee’s separation from that employment, other than claims arising under any unemployment compensation law or
workers’ compensation law and claims arising after Employee signs this Agreement. 

  
 12. NO ADMISSION OF LIABILITY. Employee agrees that this Agreement will not be considered an admission of liability or of any wrongdoing on the part of the Employer or on the part of any of the other Released
Parties. Employee also agrees that Employee will not attempt to offer this Agreement as evidence of any such admission and that it will not be admissible in evidence as any such admission. 
  
 13. ENTIRE AGREEMENT: BINDING EFFECT. This Agreement constitutes the entire agreement
between the parties and shall bind and inure to the benefit of Employee and of each of the Released Parties, and their respective successors, heirs and legal representatives. 
  
 14. SEVERABILITY. In the event a court of competent jurisdiction determines that one or more of the clauses of this Agreement are
unenforceable, such clause(s) shall be severed from the Agreement, and the balance of the Agreement shall remain in full force and effect. 
  
 15. APPLICABLE LAW. This Agreement is granted and shall be governed by and construed in accordance with the laws of the State of Nebraska. 
  

 VIII 

 16. AUTHORITY OF CFB TO ENFORCE FOR THE EMPLOYER. CFB shall be entitled to assert and enforce this Agreement in
its own name for itself and for each and every other entity comprising the Employer, and CFB shall be the only necessary party to any action initiated by the Employer to assert or enforce the rights of the Employer under this Agreement. 

 
 IN WITNESS WHEREOF, the parties have signed this Agreement as of the date
this Agreement is signed below by Employee. 
  

					
	 Date: May 5, 2004
	 	 /s/ Robert J. Hutchinson

	 	 	 Robert J. Hutchinson

		
	 	 	 Commercial Federal Corporation,

	 	 	 a Nebraska corporation

			
	 Date: May 5, 2004
	 	 By:
	 	 /s/ William A. Fitzgerald

	 	 	 	 	 William A. Fitzgerald

	 	 	 	 	 Chairman and Chief Executive Officer

  

 IXIndenture of Lease between the Company and the Board of Trustees

 Exhibit 10.38 
  
 LEASE AGREEMENT 
  
 THIS INDENTURE OF LEASE (hereinafter referred to as the “Lease”), made and entered into this     1st     day of May, 2004, is by and between THE BOARD OF TRUSTEES OF THE UNIVERSITY OF
ALABAMA, a body corporate for its division the University of Alabama at Birmingham (hereinafter referred to as “LANDLORD” ) and _Durect Corporation (hereafter referred to as “TENANT”). 
  
 WHEREAS, the LANDLORD is participating in a program of The Office for
the Advancement of Developing Industries sponsored by the University of Alabama at Birmingham whereby financial assistance is provided to developing industries in advanced technology; and 
  
 WHEREAS, as part of the Program, LANDLORD is leasing commercial rental property to such developing industries at
below market rates and is providing such developing industries with administrative services and management support; and 
  
 WHEREAS, developing industries participating in the Program will become candidates for “graduation” from the Program upon their
achievement of any of one of the benchmarks for graduation set forth herein; and 
  
 WHEREAS, as a participant in the above described program, the LANDLORD desires to lease to TENANT certain space in a 66,840 square foot facility located at 2800 Milan Court, Birmingham, Alabama and known as the
“OADI Technology Center”; and 
  
 WHEREAS, the
TENANT desires to lease certain space in the above described building on the terms and conditions set forth herein; 
  
 NOW THEREFORE, for the consideration hereinafter set forth, the parties do hereby agree as follows: 
  
 PREMISES 
  
 1. The LANDLORD hereby leases unto TENANT the following described premises (hereinafter called “Premises”), identified as Suite(s)
131 and 259 located on the 1st and 2rd floor of the OADI Technology Center (hereinafter called “Building”). Attached hereto as a part hereof is a building floor plan of the Premises marked “Exhibit A,” which has
been approved by LANDLORD and TENANT. LANDLORD agrees to provide for TENANT the space, arrangement, and facilities shown and specified in “Exhibit A,” but LANDLORD reserves the right at any time to make alterations or additions to, and to
build additional stories on the Building and to build adjoining the same. 

 RENT 
  

	2.	TENANT shall pay monthly rent to LANDLORD in accordance with the following rent schedule: 

  

								
	 LEASE YEAR

	  	 SUITE

	  	 	  	 TOTAL
 RENT
MONTH/ANNUAL

	 1st
	  	131*	  	 	  	$	 950.00 /$ 11,400.00
	 	  	259 **	  	 	  	$	 1,400.00 /$ 16,800.00
	 	  	 	  	 	  	
	

	 	  	 	  	TOTAL	  	$	 2,350.00 /$ 28,200.00
	 	  	 	  	 	  	
	

	*  =	Office Space 

	**  =	Laboratory Space 

 (A) Rent due hereunder shall be payable
in advance on or before the fifth (5th) day of each month during the term hereof to the following address: 
  
 The OADI Technology Center 
 UAB Research Park
at Oxmoor 
 2800 Milan Court # 100 
 Birmingham, Alabama 35211 
  
 or at such other place as LANDLORD may in
writing designate from time to time, without any prior demand therefore, and without any deduction or setoff whatsoever. All rent checks shall be made payable to The OADI Technology Center. TENANT agrees that a service and bookkeeping charge equal
to eight percent (8%) of the monthly rental payment shall become due and payable each and every month that the rent has not been received in the office of the LANDLORD by the TENTH (10th) day of the month. 
  
 (B) If the term commences other than on the first day of a calendar month,
then TENANT shall pay pro-rata rent, in advance, for the period from such commencement date to the first day of the next following calendar month. Rent for such period shall be determined by multiplying the monthly rent under the preceding paragraph
by a fraction, the numerator of which shall be the number of days in such period, the denominator of which shall be the number of days in such calendar month. TENANT shall also pay the rent as otherwise provided in this Lease. 
  
 (C) If this Lease is executed before the Premises herein become ready for
occupancy and LANDLORD cannot acquire and/or deliver possession of the herein Leased Premises by the time the Term of this Lease is fixed herein to begin, TENANT waives the payment of any rental until LANDLORD delivers possession to TENANT.

  

 2 

 (D) In addition to the above monthly rent, TENANT shall pay to LANDLORD the sums set forth in the TENANT
MANUAL for any receptionist, telephone, photocopy, mail, etc., services, if any, used by TENANT in the operation of its business at the Premises. With the exception of the minimum plan for receptionist charges, no such charge shall be due unless
TENANT elects to use the services offered by LANDLORD as listed in the TENANT MANUAL. Failure by TENANT to pay for any services used by TENANT shall constitute an Event of Default hereunder, and shall entitle LANDLORD to exercise all rights and
remedies provided to it hereunder. 
  
 TERM 
  
 3. The term of this Lease shall be for a period commencing on May 1, 2004 with
respect to Suite 259 and July 1, 2004 with respect to Suite 131 (the “Commencement Date”), and ending on April 30, 2005 (the “Termination Date”); 
  
 Provided that (i) TENANT is not then in default under this Lease, and (ii) TENANT has not given LANDLORD ninety (90) days
prior written notice of its election to terminate this Lease. Any extensions beyond these periods will be negotiated at the discretion of the LANDLORD. TENANT may terminate this Lease at its discretion upon ninety (90) days prior written notice
to the LANDLORD. 
  
 4. [INTENTIONALLY OMITTED] 
  
 TENANT PROGRESS MEETINGS 
  
 5. As a public company, TENANT files quarterly (Form 10-Q) and annual (Form 10-K) filings
with the Securities and Exchange Commission. On a quarterly basis, TENANT will send to LANDLORD by e-mail TENANT’s press release summarizing TENANT’s financial results of operations for each calendar quarter and fiscal year promptly after
such results are publicly available. If after review of these, LANDLORD has additional questions or concerns, LANDLORD shall notify TENANT and the parties shall discuss in good faith LANDLORD’s questions and concerns. 
  
 SERVICES 
  
 6. (A) Between the hours of 7:00 A.M. and 6:00 P.M., Monday through Sunday (exclusive of holidays), LANDLORD agrees to furnish to the
Premises hot and cold water at points of supply provided for general use, heated and refrigerated air conditioning in season at reasonable temperatures and in reasonable amounts, and electrical, and elevator services in the manner and to the extent
deemed standard by LANDLORD. LANDLORD reserves the right to furnish all such facilities and services, at its option, on such holidays as LANDLORD chooses. LANDLORD agrees to provide janitorial service Monday through Friday (exclusive of legal
holidays). 
  
 (B) If TENANT desires to have installed in the
Premises any special facilities or equipment requiring other than normal electric service for ordinary lighting and minor electric appliances such as 
  

 3 

 typewriters, small business and accounting machines, and other than the normal and regular service mentioned in Paragraph
(A) LANDLORD will, if reasonably possible, furnish such additional special facilities or equipment provided that TENANT will pay LANDLORD in advance for the cost of providing and installing any additional wiring, equipment, meters and safety
devices, and the cost of any repairs, alternations, additions to, and refinishing of the Premises or Building so necessitated, and provided TENANT shall pay all additional utility charges incurred by use of said special facilities or equipment.

  
 (C) LANDLORD shall not be liable to TENANT in damages or
otherwise for failure to perform any of the covenants on its part under this paragraph 6, nor shall temporary stoppages, temporary failures or interruptions of any of the services to be supplied by LANDLORD unto TENANT under this paragraph be
construed as an eviction of TENANT, work an abatement of rent, or relieve TENANT from any covenant or agreement, but LANDLORD agrees diligently to restore any services obliged to be provided by it hereunder when temporary failures, stoppages, or
interruptions occur. 
  
 SECURITY 
  
 7. LANDLORD agrees to provide such security as LANDLORD deems necessary or desirable, but
LANDLORD shall in no event be liable for any theft or other loss of property occurring in or about the Premises or Building. 
  
 ADDITIONAL EXPENDITURES 
  
 8. TENANT agrees to pay to LANDLORD as additional rent all sums provided for in this Lease at the times and in the manner provided. If LANDLORD shall make any expenditure for which TENANT is responsible or which
TENANT should make, then, at LANDLORD’S election, the amount thereof may be added to the installment of rent next falling due or constitute any item of account payable on demand. 
  
 GOOD ORDER AND REPAIR 
  
 9. TENANT agrees to take good care, as determined by the LANDLORD, of the Premises and not to allow or commit any waste with respect to the Premises or Building. Upon
termination of this Lease, by lapse of time or otherwise, TENANT will surrender the Premises to LANDLORD in as good condition as at the date of initial possession hereunder by TENANT, ordinary wear and tear and damage by unavoidable casualty
excepted. Any damage to the Premises or Building resulting from acts or neglect of TENANT or TENANT’S agents, employees, patrons, or invitees, shall be repaired or replaced at TENANT’S expense. The Premises shall not be altered, changed,
nor any additions or improvements made, without the prior written consent of LANDLORD and unless otherwise provided in writing, all work shall be done by or under the direction of LANDLORD at TENANT’S expense, and any alterations, physical
additions or improvements, except movable office furniture, shall at once become the property of LANDLORD upon termination of this Lease. 
  

 4 

 ASSIGNMENT 
  
 10. TENANT shall not, without the express prior written consent of LANDLORD, assign, mortgage, or otherwise encumber or transfer this Lease, or sublease, or permit any
other person to use or occupy, all or any part of the Premises. The parties expressly agree that: (a) LANDLORD’S consent may be withheld for any reason whatsoever and regardless of whether such withholding is contrary to any prevailing
commercial standards; and (b) LANDLORD’S decision regarding such consent shall be binding on the parties, regardless of the reason or basis of the decision. If the TENANT desires to assign or encumber this Lease or sublet the Premises or any
part thereof, the TENANT will give the LANDLORD written notice of such desire specifying the name of the proposed assignee, mortgagee, or sublessee and all of the terms of the proposed assignment, mortgage, or sublease at least sixty (60) days prior
to the date such assignment, encumbrance, or sublease is proposed to be effective. The LANDLORD will have the option for a period of thirty (30) days after receipt of such notice to: (a) terminate this Lease as of the date specified by the TENANT as
to the portion of the Premises affected; or (b) permit the TENANT to assign, encumber, or sublet such portion of the Premises; or (c) refuse to consent to the proposed assignment, encumbrance, or subletting and continue this Lease in effect as to
the entire Premises. The failure by the LANDLORD to exercise any of the foregoing options within the time provided will be deemed an exercise of option (c) above. Notwithstanding any consent granted by the LANDLORD, the TENANT, and each assignee,
mortgagee, and sublessee will at all times remain fully liable for the payment of Rent and for the performance of the TENANT’S obligations hereunder. No consent granted by the LANDLORD will constitute a waiver of the provisions of this Lease
except as to the specific instance covered thereby. In the event LANDLORD consents to such assignment, sublease, or other transfer of all or any portion of this Lease, TENANT shall remit to LANDLORD that portion of any payment TENANT receives from
its sub-lessee, assignees, etc., which exceeds the rent due and payable as is set forth in Paragraph 3 herein or any amendments hereto. 
  
 COMPLIANCE 
  
 11. TENANT agrees to maintain the Premises in a clean, orderly, healthful condition and to comply with all laws, ordinances, rules, and regulations of all governmental agencies having jurisdiction over the Premises.
TENANT will not use, occupy, or permit the use or occupancy of the Premises for any unlawful, disreputable, or hazardous purpose, maintain or permit the maintenance of any public or private nuisance, or do or permit any act or thing that may disturb
the quiet enjoyment of any other tenant of the Building, or permit anything to be done that would increase the fire insurance rate on Building or its contents. 
  

RIGHT OF ENTRY 
  
 12. TENANT agrees that LANDLORD’S representatives shall have the right to enter all parts of the Premises at all reasonable hours to inspect, test, clean, make repairs, alterations, and additions to the Building
or the Premises that it may deem necessary or desirable or to provide 
  

 5 

 any service which it is obligated to furnish tenants of the Building; provided, however, that this paragraph shall be
inoperative in the event that any federal or state law or regulation prohibits public access to the Premises without security clearance from such federal or state agencies. 
  
 SURRENDER OF PREMISES 
  
 13. At the expiration of the tenancy hereby created, TENANT shall surrender the Premises in the same condition as the Premises were in upon delivery of possession thereto
under this Lease, reasonable wear and tear excepted and damage by unavoidable casualty excepted, and shall surrender all keys for the Premises to LANDLORD at the place then fixed for the payment of rent and shall inform LANDLORD of all combinations
on locks, safes, and vaults, if any, in the Premises. TENANT shall remove all its trade fixtures and any alterations or improvements which LANDLORD requests to be removed before surrendering the Premises as aforesaid and shall repair any damage to
the Premises caused thereby. TENANT’S obligation to observe or perform this covenant shall survive the expiration or other termination of the term of this Lease. 
  
 INDEMNITY OF LANDLORD 
  
 14. By taking possession of the Premises, the TENANT will be deemed to have accepted the Premises as suitable for the purposes for which the same are leased, to have
accepted the Building, and, except for any matters specified in writing to the LANDLORD, TENANT agrees to indemnify and hold LANDLORD harmless from and against any and all liability, claims, demands, loss, or damage for injury to, or death of, any
person or persons or damage to property in any way arising from or in connection with the occupancy or use by tenant of the Premises or any part thereof or occasioned wholly or in part by any act of omission of TENANT, its agents, employees, or
invitees. TENANT further agrees to indemnify and hold LANDLORD harmless from all fines, suits, claims, demands, and actions resulting from any breach, violation, or nonperformance of any covenant or condition hereof by TENANT or TENANT’S
agents, employees, or invitees. 
  
 TAKING BY EMINENT DOMAIN 
  

	15.	(A) Entire Premises 

  
 If the whole of the Premises hereby leased shall be taken by any authority under the power of eminent domain, then this Lease shall terminate as of the
day possession shall be taken by such authority, and all rent shall be paid up to that date, with a proportionate refund by LANDLORD of such rent as may have been paid in advance. 
  
 (B) Partial Taking of Premises 
  
 If less than 20 percent of the floor area of the Premises be so taken by eminent domain, then this Lease shall terminate
only as to the part so taken from the day possession shall be taken by such authority, and all rent shall be paid up to that day and thereafter the rent due hereunder shall be adjusted accordingly. 
  

 6 

 (C) Substantial Taking of Premises 
  
 If more than 20 percent, but not all, of the floor area of the Premises be so taken, then this Lease shall terminate only as
to the part so taken from the day possession shall be taken by such authority, and all rent shall be paid up to that day; provided, however, that TENANT and LANDLORD shall each have the right to terminate this Lease by giving written notice thereof
within ten (10) days from the date such possession is taken by said authority. In the event TENANT elects to remain in possession, and LANDLORD does not so terminate, all of the terms herein provided shall continue in effect except that the fixed
minimum rent shall be adjusted proportionately. 
  
 (D)
Substantial Taking of Building 
  
 If more than 50 percent
of the floor area of the Building be taken under the power of eminent domain, whether or not the Premises or any part thereof be taken, LANDLORD may, by notice in writing to TENANT delivered within thirty (30) days after the day of surrendering
possession to the authority, terminate this Lease, and rent shall be paid or refunded, as of the date of termination. 
  
 (E) Damages 
  
 All damages awarded for such taking under the power of eminent domain, whether for the whole or a part of the Premises, shall be the property of LANDLORD,
including but not limited to such damages as shall be awarded as compensation for diminution in value of the leasehold and to the fee of the Premises; provided, however, that LANDLORD shall not be entitled to any award made to TENANT for loss of
business, depreciation to and cost of removal of stock and fixtures. The term “eminent domain” shall include the exercise of any similar governmental power and any purchase or other disposition in lieu of, or under threat of, condemnation.

  
 PROPERTY DAMAGE 
  
 16. LANDLORD shall not be liable to TENANT for any loss or damage to any person or property,
including the person and property of TENANT occasioned by theft, the acts of any co-tenant, casualty, rain, water, condensation, fire, acts of God, public enemy, injunction, riot, strike, picketing, mob action, bombing, explosion, war, court order,
latent defects, requisition or order of governmental authority, the construction, repair, maintenance or alteration of any part of the Premises or Building as a whole; all personal and business property in the Leased Premises shall be and remain at
TENANT’s personal risk, and LANDLORD shall not be liable for any damages to nor loss of such personal or business property arising from acts of negligence of any other persons; not from the leaking of the roof, nor from the bursting, leaking,
or overflowing of water, sewer, or steam pipes, nor from the heating or plumbing fixtures; nor from electric wires for fixtures; nor from any other cause whatsoever. 
  

 7 

 PERFORMANCE 
  
 17. Anything in this Lease to the contrary notwithstanding, LANDLORD shall not be deemed in default with respect to the performance of any of the terms, covenants, and
conditions of this Lease to be performed by it. If any failure of its performance shall be due to any strike, lockout, civil commotion, war, war-like operation, invasion, rebellion, hostilities, military or usurped power, sabotage, governmental
regulations or controls, inability to obtain any material or service, act of God, or any other cause whatever (including failure of TENANT to supply necessary data or instructions) beyond the reasonable control of LANDLORD, or inability of LANDLORD
to obtain financing satisfactory to LANDLORD, the time for performance by LANDLORD shall be extended by the period of delay resulting from or due to any of said causes. 
  
 OCCUPANCY OF PREMISES 
  

	18.	(A) Premises Rendered Wholly Unfit for Occupancy 

  
 In the event the Premises shall be destroyed or so damaged by fire, explosion, earthquake, or any other cause so as to become wholly unfit for occupancy,
then the LANDLORD may, if it so elects, rebuild and put the Premises in good condition and fit for occupancy within a reasonable time after such Premises have become wholly unfit for occupancy, or it may give notice in writing to TENANT terminating
this Lease. If LANDLORD elects to repair or rebuild the Premises, it shall give the TENANT notice thereof within thirty (30) days after such injury or damage of its intention to repair or rebuild, and then LANDLORD shall proceed with reasonable
speed to repair or rebuild the Premises. TENANT shall not be obligated to pay any rent from the time that such Premises were rendered wholly unfit for occupancy until such Premises are again fit and ready for occupancy. 
  
 (B) Premises Rendered Partially Unfit for Occupancy 
  
 In the event the Premises shall be destroyed or so damaged by fire,
explosion, earthquake, or any other cause so as to become partially unfit for occupancy, LANDLORD shall forthwith cause the same to be repaired as soon as is reasonably possible and, only while such damage is being repaired, TENANT shall be entitled
to a proportionate abatement of the monthly rent. 
  
 (C)
Building Rendered Totally or Partially Unfit for Occupancy 
  
 In the event that the Building in which the Premises are situated is destroyed or damaged from any cause to the extent (in LANDLORD’S sole judgment) of one-third or more of the replacement cost of such Building, LANDLORD shall have an
option to terminate this Lease, whether the Premises be damaged or not; such option to be exercised within thirty (30) days after such occurrence so damaging the Building. Anything in this Lease to the contrary notwithstanding, a total or
substantially total destruction of the Building shall terminate this Lease. 
  

 8 

 (D) General 
  
 LANDLORD shall not be liable or responsible to TENANT for any inconvenience or loss due to making repairs or reconstruction
as aforesaid nor for any delays in repairing or rebuilding due to strikes, acts of God, governmental regulations, or any other causes beyond its control. Nothing herein shall be deemed to waive or relieve TENANT from any liability for any loss or
damage to LANDLORD, or LANDLORD’S property due to negligence or willful acts of TENANT, its agents, servants, employees, or invitees; provided, however, if LANDLORD’S fire and extended coverage insurance policy permits, without penalty,
the release of others from liability for loss from insured casualties, such release from liability is hereby granted to the extent that LANDLORD actually recovers for loss under such policy. 
  
 HOLDING OVER 
  
 19. If the TENANT continues to occupy the Leased Premises after the expiration or other termination of the Lease Term, such holding over
will, unless otherwise agreed by the LANDLORD in writing, constitute a tenancy at will at a daily rental equal to one-thirtieth (1/30th) of an amount of equal to twice the amount of the rent payable during the last month prior to the termination of
this Lease subject to all of the other provisions set forth herein. 
  
 DEFAULT
PROVISIONS 
  

	20.	(A) The happenings of any one or more of the following events shall constitute a default hereunder: (i) TENANT’S failure to pay any one or more said installments of rent
hereunder as and when the same becomes due; (ii) at LANDLORD’S option, TENANT’S failure to pay the rent due hereunder within ten (10) days of the due date therefore for two consecutive months; (iii) TENANT’S filing of a petition in
bankruptcy or a petition under the Bankruptcy Act, or any amendment thereto by or against TENANT, or TENANT being adjudged a bankrupt; (iv) TENANT’S making an assignment for the benefit of creditors; (v) the appointment of a receiver of
TENANT’S property; (vi) TENANT’S vacation of the Premises or abandonment of the possession thereof, or use of the same for purposes other than that for which the same are hereby let, or failure to use the Premises for the purposes herein
specified; or (vii) TENANT’S violation of any of the other terms, conditions or covenants on the part of TENANT herein contained. 

  
 (B) Upon the happening of any of the above defaults, LANDLORD may, as LANDLORD deems appropriate: (i) annul and terminate this Lease, and thereupon
re-enter and take possession of the Premises; or (ii) re-enter and re-let the Premises from time to time as agents of TENANT, and such re-entry and/or re-letting shall not discharge TENANT from any liability or obligations hereunder, except that net
rents (that is, gross rents less the expense of collecting and handling, and less commissions) collected as a result of such re-letting shall be a credit on TENANT’S liability for rents under the terms of this Lease; (iii) perform or cause to
be performed the obligations of the TENANT under this Lease and enter the Premises to accomplish such purpose without being liable for prosecution therefor...or (iv) terminate this Lease and demand that tenant vacate the premises occupied. In the
event LANDLORD opts to perform the obligations of the TENANT, TENANT hereby agrees to reimburse the LANDLORD 
  

 9 

 on demand for any expense which the LANDLORD might incur in effecting compliance with this Lease on
behalf of the TENANT, and the TENANT further agrees the LANDLORD will not be liable for any damage resulting to the TENANT from such action, whether caused by the negligence of the LANDLORD or otherwise. Nothing herein, however, shall be construed
to require LANDLORD to re-enter, re-let, or perform the TENANT’S obligations. Nor shall anything herein be construed to postpone the right of LANDLORD to sue for rents, whether matured by acceleration or otherwise, but on the contrary, LANDLORD
is hereby given the right to demand, collect, and/or sue therefor at any time after default. 
  
 (C) Upon default, or upon the termination of this Lease or re-entry upon the Premises for any one or more of the causes set forth above, or upon any termination of this Lease or re-entry upon the Premises, the rents
hereunder for the remainder of the entire rental period, and all other indebtedness, if any, payable under the provisions hereof, shall be and become immediately due and payable at the option of LANDLORD and without regard for whether or not
possession of the Premises shall have been surrendered to or taken by LANDLORD; provided, however, no default on account of payment for rent shall occur until such rent is ten (10) days in arrears, and no default for other cause shall occur until
the expiration of a period of thirty (30) days after written notice to TENANT of any breach of any other covenant hereof without correction of such breach. 
  
 (D) In the event of employment of an attorney by LANDLORD for collection of any amount due hereunder or for the institution of any suit for possession of
the Premises, or for advice or services incident to the breach of any other covenant of this Lease by TENANT or on account of bankruptcy proceedings by or against TENANT or on account of bankruptcy proceedings by or against TENANT, or the leasehold
interest of TENANT, TENANT agrees to pay and shall be taxed with a reasonable attorney’s fee which shall be a part of the debt evidenced and secured by this Lease. In order further to secure the prompt payment of said rents when the same
mature, and the faithful performance by TENANT of all and singular the terms, conditions, and covenants on the part of TENANT herein contained and all damages and costs that LANDLORD may sustain by reason of the violation of said terms, conditions,
and covenants, or any of them, TENANT does hereby waive any and all right to claim personal property as exempt from levy and sale under the Constitution and Laws of the State of Alabama or any other State. 
  
 SECURITY DEPOSIT 
  
 21. LANDLORD and TENANT agree that TENANT will deposit with LANDLORD the sum of $ 4,800.00(an amount equal to two months rent plus
$100 telephone deposit) on the Commencement Date, to be held, without interest, as security for the payment of rent and any and all other sums of money for which TENANT shall or may become liable to LANDLORD under this Lease, and for the
faithful performance by TENANT of all other covenants and agreements under this Lease. The foregoing deposit shall be returned to TENANT after the termination of this Lease and any renewal hereof, provided TENANT shall have made all such payments
and performed all such covenants and agreements. Nothing in this paragraph shall be deemed to limit the amount of any claim, demand, or cause of action of LANDLORD against TENANT under the provisions of this Lease. 
  

 10 

 REMEDIES 
  
 22. TENANT agrees that all remedies herein given LANDLORD, including all those not set forth but provided by law shall be cumulative, and the exercise of one or more of
any such remedies by LANDLORD shall not exclude the exercise of any other lawful remedy nor shall any waiver by LANDLORD, express or implied, of any breach of any term, covenant, or condition hereof be deemed a waiver of any subsequent breach of the
same or any other term, covenant, or condition hereof. Acceptance of rental by LANDLORD from TENANT or any assignee, sub-tenant, or other successor in interest to TENANT, with or without notice shall never be construed as a waiver of any breach of
any term, condition, or covenant of this Lease. Failure of LANDLORD to declare any default upon occurrence thereof, or delay in taking action with respect thereto, shall not waive such default, but LANDLORD shall have the right to declare such
default at any time and take such action as may be authorized hereunder, in law or equity, or otherwise. TENANT agrees to pay all costs and expenses that may be incurred in connection with the enforcement of any of the provisions of this Lease.

  
 SIGNS 
  
 23. TENANT agrees not to install or paint any signs, name plates, symbols, pictures, or any other paintings or hangings within or outside
the Premises or the Building without the prior written consent of the LANDLORD. 
  
 PARKING PROVISIONS 
  

	24.	(A) All parking facilities provided by LANDLORD shall be under the control of LANDLORD, and TENANT agrees that TENANT, its agents, employees, and invitees shall conform to such
written parking regulations, conditions, and provisions as may be from time to time prescribed by LANDLORD. 

  
 (B) Parking area is not to be used by TENANT at any time as a storage area for any merchandise, goods, equipment, or any other item. 
  
 (C) TENANT shall not make any use of the Premises which will in any manner
overburden the parking which is available to the Building in which the Premises are located. 
  
 (D) LANDLORD reserves the right to decrease or otherwise alter, in any manner which LANDLORD deems appropriate, the parking areas at any time without notice to TENANT. 
  

 11 

 TRANSFER OF OWNERSHIP 
  
 25. LANDLORD shall have the right to sell, assign, or transfer, in whole or in part, all of its rights and/or obligations hereunder or in the Building and/or Premises.
Such sale, assignment, or transfer may be made to a corporation, trust, trust company, individual, or group of individuals, and howsoever made shall be binding on TENANT in all respects and recognized by TENANT. In the event LANDLORD transfers
LANDLORD’S interest in the Building and/or Premises, LANDLORD will thereby be released from any further obligation of any kind whatsoever hereunder and the TENANT agrees to attorn to and look solely to the transferee for the performance of such
obligations. TENANT agrees to execute and deliver to the designee of the LANDLORD from time to time within ten (10) days after written request therefor all instruments that might be required by the LANDLORD to confirm such attornment. 
  
 NOTICE 
  
 26. Notices provided for in this Lease shall be sufficiently given if sent by registered mail, return receipt requested, postage prepaid,
and addressed to such address as the parties may designate to each other in writing from time to time. 
  
 SUBORDINATION 
  
 27. At the option of
LANDLORD, this Lease may be subordinated to the lien of any mortgage or mortgages, or the lien resulting from any other method of financing or refinancing, now or hereafter in force against the land and/or Building of which the Premises are a part
and to all advances heretofore made or hereafter to be made upon the security thereof. The TENANT agrees to execute and deliver to the LANDLORD from time to time within ten (10) days after written request by the LANDLORD, all instruments that might
be required by the LANDLORD to confirm such subordination. 
  
 PURPOSE

  
 28. TENANT’S operation in this location is for the purpose of
pharmaceutical research and development and TENANT shall use said Premises therefore and for no other purpose. 
  
 TITLES 
  
 29. The titles and headings in this Lease are used only to facilitate reference, and in no way to define or limit the scope or intent of any of the provisions of this Lease. 
  

 12 

 ENTIRE CONTRACT 
  
 30. This Lease constitutes the entire contract between the parties hereto with respect to the Premises and this Lease covers, merges, and includes all agreements, oral or
written, between the parties hereto and made in connection herewith, whether the same be made prior to, or contemporaneously with the execution hereof. This Lease cannot be modified or changed by any verbal statement, promise, or agreement by
whomsoever made, and no modification, change, or amendment shall be binding on the parties unless it shall have been agreed to in writing. No surrender of the Demised Premises or of the remainder of the Term under this Lease shall be valid unless
accepted by LANDLORD in writing. 
  
 LEGAL EFFECT 
  
 31. In the event any provision of this Lease is found by a court of competent jurisdiction
to be contrary to law or void as against public policy or otherwise, such provision shall be either modified to conform to law or considered severable, with the remaining provisions hereof continuing in full force and effect. 
  
 BINDING EFFECT 
  
 32. This Agreement and all covenants, obligations, and conditions hereof shall inure to the benefit of and shall be binding upon LANDLORD,
and LANDLORD’s successors and assigns. This Agreement and all its covenants, obligations, and conditions hereof also shall inure to the benefit of and be binding upon TENANT and TENANT’s heirs, executors, administrators, successors, and
assigns, except that TENANT shall have no right to assign or sublet the Leased Premises or any part thereof without the prior written consent of LANDLORD. 
  
 IMPROVEMENTS 
  
 33. Upon TENANT’S reasonable request, the LANDLORD will install in the Premises, at TENANT’S cost and expense, additional divisional partitioning with wall, ceiling, and floor surface treatments and
finishes, electrical and telephone outlets and other facilities, or will remove or replace existing walls or petitions. Any and all other alterations, changes, additions, and improvements, if consented to by LANDLORD, including, but not limited to

  

	 	(1)	All partitioning or shelving required by TENANT, other than LANDLORD’S standard partitioning and shelving, 

  

	 	(2)	Any special decorative millwork treatment, 

  

	 	(3)	Any special floor coverings, 

  

	 	(4)	Any special decorative paint or other wall or surface treatments, 

  

	 	(5)	Any private laboratory, private shower or private plumbing and fixtures, 

  

	 	(6)	Any abnormal quantity of electrical or telephone outlets 

  

 13 

 shall be made by the LANDLORD at TENANT’S cost and expense and the same shall immediately be and become part of the
realty without any payment therefor by LANDLORD. Upon completion of such work, TENANT shall immediately pay the LANDLORD the full amount of such charges. 
  
 CERTIFICATE 
  
 34. TENANT agrees to deliver a certificate to any proposed mortgagee or purchaser or the LANDLORD certifying (if such be the case) that this Lease is in full force and effect, that there are no defenses or offsets
hereto, or stating those claimed by TENANT, and also stating any other pertinent information required by the LANDLORD or the LANDLORD’S lender. 
  
 POWER OF SALE 
  
 35. TENANT shall, in the event any proceedings are brought for the foreclosure of, or in the event of exercise of the power of sale under any mortgage made by the LANDLORD covering the Premises, attorn to the
purchaser upon any such foreclosure or sale and recognize such purchaser as the LANDLORD under this Lease. 
  
 QUIET ENJOYMENT 
  
 36. Upon payment by
TENANT of the rents provided, and upon the observance and performance of all the covenants, terms, and conditions on TENANT’S part to be observed and performed, TENANT shall peaceably and quietly hold and enjoy the Premises for the term hereby
demised without hindrance or interruption by LANDLORD or any other person or persons lawfully or equitably claiming by, through, or under LANDLORD; subject, nevertheless, to the terms and conditions of this Lease. 
  
 FULL PAYMENT 
  
 37. No payment by TENANT or receipt by LANDLORD of a lesser amount than the monthly rent herein stipulated shall be deemed to be other than
on account of the earliest stipulated rent, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as rent be deemed an accord and satisfaction, and LANDLORD may accept such check or payment without
prejudice to LANDLORD’S right to recover the balance of such rent or pursue any other remedy provided in this Lease. 
  
 MUTUAL AGREEMENT 
  
 38. It is expressly understood and agreed that this Lease and the covenants contained herein are for the sole benefit of LANDLORD and TENANT, their successors and assigns, and that all rights of action for any breach
or any covenant herein contained are reserved to such parties. It is further expressly understood and agreed that such parties may by mutual agreement alter, amend, modify, or revoke or rescind this Lease or any covenant herein contained in writing
and at any time. 
  

 14 

 EXPIRATION OF LEASE 
  
 39. During the period of six (6) months prior to the expiration of this Lease or any renewal thereof, LANDLORD shall have the right to display on the exterior of the
Premises, but not in any window or doorway thereof, the customary sign “For Rent,” and during such period LANDLORD may show the Premises and all parts thereof to prospective lessees between the hours of 10:00 a.m. and 5:00 p.m. on any day.

  
 RECORDATION 
  
 40. TENANT shall not record this Lease without the written consent of LANDLORD; however,
upon the request of either party hereto, the other party shall join in the execution of a “short form” of this Lease for the purposes of recordation. The short form of this Lease shall describe the parties, the Premises and the term of
this Lease and shall incorporate this Lease by reference. TENANT shall record this Lease or said short form at the request of LANDLORD, and shall pay the cost of recording same. 
  
 INSURANCE 
  
 41. TENANT will maintain at the TENANT’S expense throughout the Lease Term a policy or policies of insurance insuring the TENANT and the LANDLORD against: (a) loss
or damage by fire, explosion, or other casualty covering the TENANT’S property located in the Leased Premises for the full insurable value thereof; and (b) all liability for injury to or death of any person occasioned by or arising out of or in
connection with the occupancy of the Leased Premises. The limits of such policy or policies shall be in an amount not less than $1,000,000 per occurrence and $2,000,000 annual aggregate. The TENANT will furnish evidence satisfactory to the LANDLORD
of the maintenance of such insurance and will obtain a written obligation on the part of each insurance company to notify the LANDLORD at least ten (10) days prior to cancellation of such insurance. The TENANT hereby waives any cause of action that
the TENANT might now or hereafter have against the LANDLORD on account of any loss or damage that is insured against under any insurance policy that names the TENANT as an additional insured. 
  
 LIABILITY FOR LOSSES 
  
 42. Neither LANDLORD nor TENANT shall be liable to the other for any loss or damage from risks ordinarily insured against under fire
insurance policies with extended-coverage endorsements, irrespective of whether such loss or damage results from their negligence or that of any of their agents, servants, employees, licensees, or contractors to the extent that such losses are
covered by valid and collectable insurance on the property at the time of loss. 
  

 15 

 COMPLIANCE WITH AUTHORITIES 
  

	43.	TENANT shall promptly comply with all statutes, ordinances, rules, orders, regulations, and requirements of the federal, state, county, and city governments, and of any and all
their departments and bureaus, applicable to said Premises and shall also promptly comply with all rules, orders, and regulations of the Fire Underwriters’ Association for the Prevention of Fires at TENANT’s own cost and expense. TENANT
agrees to pay any increase in the amount of insurance premiums over and above the rate now in force that may be caused by TENANT’s use or occupancy of the Premises. Said payments shall be in addition to any amounts due LANDLORD.

  
 TENANT understands that LANDLORD and
LANDLORD’S property is subject to the Americans with Disabilities Act (ADA). TENANT specifically agrees to comply with, and to pay all costs of compliance with, laws, regulations and any ordinances that may apply to TENANT’S business or
locations, including, but not limited to, the ADA requirements as it may relate to the Premises. The TENANT will hold harmless and protect the LANDLORD in the event the TENANT is found to be in violation of its obligation to comply with the ADA.

  
 ATTORNEY’S FEES 
  
 44. TENANT agrees to pay all attorneys’ fees, court costs, and expenses that LANDLORD
incurs in enforcing any of the obligations of the TENANT under this Lease, or in any litigation or negotiation in which the LANDLORD shall become involved through or on account of the Lease. 
  
 HOLD HARMLESS 
  
 45. TENANT shall be liable for and shall hold LANDLORD harmless in respect of damage or injury to the Leased Premises, or the person or
property of the TENANT, or the person or property of LANDLORD’s other tenants, or anyone else, if due to the act or neglect of TENANT or anyone in his control or employ. TENANT shall at once report in writing to LANDLORD any defective condition
known to him which LANDLORD is required to repair and failure to so report shall make TENANT responsible for damages resulting from such defective conditions. All personal property upon the Premises shall be at the risk of the TENANT only, and
LANDLORD shall not be liable for any damage thereto or theft thereof. 
  
 RULES
AND REGULATIONS 
  
 46. The present rules and regulations in regard to the
Building are attached hereto and made a part hereof as though fully set out herein. LANDLORD reserves the right to change these rules and regulations. Notice of changes in the rules and regulations shall be given to the Tenant in written form. The
TENANT shall faithfully observe and perform such rules and regulations, as modified or supplemented from time to time by the LANDLORD, and the TENANT shall further be responsible for the compliance with such rules and regulations by the
TENANT’s employees, its invitees, agents, servants, or visitors. 
  

 16 

 TIME 
  
 47. With respect to all obligations of TENANT as set forth in this Lease, time is of the essence. 
  
 STORAGE OF RADIOACTIVE MATERIAL 
  
 48. Tenant will carefully designate specific locations for the storage of Radioactive Material. These designated areas must be positioned away from the more traveled
areas of the laboratory. These areas must be approved by the UAB Radiation Safety Division prior to the storage of Radioactive Material. When the storage area is located inside a laboratory or office suite, it must have adequate shielding to ensure
that the radiation exposure rate at one foot from the surface of the storage area does not exceed 0.5 mR/hour. No Radioactive Material may be stored in common or public areas of the building. 
  
 Storage areas must be kept locked at all times, except for when in use.
Radioactive Material that is volatile or powdery or that might be emitted into the air must be kept in a fume hood. All storage areas must be labeled with the conventional radiation symbol and must bear the words “Caution Radioactive
Material” or “Danger Radioactive Material.” All storage containers must be labeled with a standard radiation symbol and the identity, quantity, and assay date of the radioisotope must be on the container. 
  
 No Radioactive Material will be allowed to be stored in any hallway, not even
temporarily awaiting decontaminated radioactive waste removal. Decontaminating radioactive waste must be properly stored in the laboratory or other designated site location away from the more heavily traveled areas. Proper shielding must be
maintained for decontaminating radioactive waste. An inventory must be taken quarterly by the Tenant for all sealed sources that are in storage and are either being used or have not been used in six months. 
  
 All of Tenant’s employees must be provided with and wear Radiation I.D.
Badges. The badges must be worn at all times while on the premises. 
  
 Tenant agrees to freely submit to inspections conducted by the UAB Department of Occupational Health and Safety. Tenant further agrees to abide by all State, Federal, and UAB Radiation Safety Committee guidelines regarding the handling and
storage of Radioactive Material. The terms and conditions of Paragraph 48 are subject to the approval and changes as designated by the UAB Department of Occupational Health and Safety. 
  
 STORAGE OF HAZARDOUS MATERIAL 
  
 49. No prolonged storage of Hazardous Material is allowed in the building at any time. Tenant may accumulate no more than twenty (20) gallons of liquid Hazardous Material
at any given time. The allowable limit of twenty (20) gallons must be kept in four (4) separate five gallon containers. All Hazardous Material must be kept in a fireproof storage container at all times. This storage container 
  

 17 

 must remain locked at all times except for when in use. Upon reaching the allowable limit of twenty (20) gallons, Tenant
agrees to have a licensed hazardous waste carrier promptly remove the waste from the building. All related documents, certificates of insurance, and shipment forms must be submitted in advance to the Genesis Center director. The terms and conditions
of Paragraph 49 are subject to the approval and changes as designated by the UAB Department of Occupational Health and Safety. Tenant agrees to abide by all State, Federal, and UAB guidelines regarding the handling and storage of Hazardous Material.

  
 SMOKING POLICY 
  
 50. Smoking is strictly prohibited in all areas within the OADI Technology Center.

  
 TENANT MANUAL 
  
 51. TENANT has read OADI TENANT MANUAL and agrees to abide by all rules and regulations of
the OADI program. 
  
 This Lease shall be governed, construed and
enforced in accordance with the laws of the State of Alabama. 
  
 IN WITNESS WHEREOF, the TENANT and the LANDLORD have hereunto set their hands and seals in duplicate, as set forth below, on the day and year first above written. 
  

			
	 LANDLORD:

	
	 THE BOARD OF TRUSTEES OF THE

	 UNIVERSITY OF ALABAMA FOR THE

	 UNIVERSITY OF ALABAMA AT BIRMINGHAM

		
	 By
	 	 /s/

	 Its
	 	 Acting Provost

	
	 TENANT:

	
	 DURECT Corporation

		
	 By:
	 	 /s/

	 Its:
	 	 CFO

  

 18 

 LANDLORD’S ACKNOWLEDGMENT: 
  
 STATE OF ALABAMA ) 
 COUNTY OF JEFFERSON) 
  
 I, the undersigned authority, a Notary Public in and for said County in said State, hereby certify that
                                        
                                ,whose name
as                                       
                                  , of the Board of Trustees of the University of
Alabama is signed to the foregoing conveyance and who is known to me, acknowledged before me on this day that, being informed of the contents of the conveyance, he, in his capacity as
such                                       
                  , executed the same voluntarily and with full authority as for the act of the Board of Trustees of the University of Alabama on the day
the same bears date. 
  
 Given under my hand this
the     day of                                 ,
20     . 
  
  

	
	
 NOTARY PUBLIC

	
	  
 My commission
expires:

	  

  

 19 

 TENANT’S ACKNOWLEDGMENT (CORPORATE) : 
 STATE OF CALIFORNIA ) 
 COUNTY OF SANTA CLARA) 
  
 I, the undersigned authority, a Notary Public in and for said County in said State, hereby certify that,
                                        
                                , whose name
as                                       
                                  , of
                                        
                                        is
signed to the foregoing conveyance and who is known to me, acknowledged before me on this day that, being informed of the contents of the conveyance, he, in his capacity as
such                                 , executed the same voluntarily and
with full authority as and for 
 the act
of                                       
                                        
                  , on the day the same bears date. 
  
 Given under my hand this the     day
of                                 , 20     .

  
  

	
	
 NOTARY PUBLIC

	
	  
 My commission
expires:

	  

  

 20 

 INSERT MAP AS EXHIBIT A 
  

 21 

 RULES AND REGULATIONS: 
  

	1.	Sidewalks, entries, passages, courts, corridors, stairways, etc., shall not be obstructed by TENANT or its clerks or used by them for other purposes than ingress and egress.

  

	2.	All heavy articles or machinery shall be carried up or into the Premises only at such times and in such manner as shall be prescribed by LANDLORD, and LANDLORD shall in all cases
have the right to specify the proper weight and position of any heavy machinery or articles. Any damage done to the Building by installing or removing such machinery or from overloading any floor in any way shall be paid by the TENANT. Any repairs
or restoration caused by defacing or injuring in any way part of the Building by TENANT, its agent(s) or servant(s) shall by paid by TENANT. 

  

	3.	No sign advertisement, or notices may be inscribed, painted, or affixed on any part of the inside or outside of said Building unless of such color, size, and style and in such place
in or upon said Building as shall be designated under prior approval therefor by LANDLORD, but there shall be no obligation or duty on LANDLORD to allow any sign, advertisement, or notice to be inscribed, painted, or affixed on any part of the
inside or outside of said Building. Signs on doors shall be subject to the approval of LANDLORD, and the cost of such signs shall be paid by the TENANT. Directory in a conspicuous place with the names of the TENANT will be provided by the LANDLORD.
Any necessary revision of same shall be made by LANDLORD within a reasonable time after written notice from the TENANT of the error or change making the revision necessary. No showcase or any other fixture or object whatsoever shall be placed in
front of the Building or in the court, corridor, or parking area of the Building without prior written consent of the LANDLORD. 

  

	4.	No TENANT shall do or permit anything to be done in the said Premises or bring or keep anything therein which will in any way increase the rate of fire insurance on said Building or
on property kept therein or obstruct or interfere with the rights of other TENANTS or in any way injure or annoy them or conflict with the laws relating to fire or with any regulation of the Fire Department or with any insurance policy upon said
Building or any part thereof. 

  

	5.	No TENANT shall employ any person or persons other than the janitor of the LANDLORD (who will be provided with pass keys to all offices) for the purpose of cleaning or taking charge
of the Premises Leased without the written consent of the LANDLORD, it being understood and agreed that the LANDLORD shall in no way be responsible to any TENANT for any loss of property from the Leased Premises, however occurring, or for any damage
done to the furniture by the janitor or any of his employees, or by any other person or persons whomsoever. Any person or persons employed by the TENANT with the written consent of the LANDLORD must be subject to and under control and direction of
the LANDLORD of the Building and all things in the Building and outside of said Premises. 

  

	6.	No additional locks, hooks, or attachments shall be placed on any door or window of the Building. TENANT will not permit any duplicate keys to be made, but if more than two keys for
any locks are desired, the additional number must be procured from the LANDLORD and paid for by the TENANT. 

  

 22 

	7.	No animal or birds, bicycles, or other vehicles shall be allowed in halls, corridors, elevators, or elsewhere in the Building. 

  

	8.	The water closets, wash basins, sinks, and other apparatus shall not be used for any purpose than those for which they are constructed, and no sweepings, rubbish, or other substance
shall be thrown therein nor shall anything be thrown by the TENANTS or their agents, or employees out of the windows, doors, or other openings. 

  

	9.	The floors, skylights, and windows that reflect or admit light into the corridors or passageways or to any place in said Building shall not be covered or obstructed by any of the
TENANTS. 

  

	10.	All TENANTS and occupants must not open their windows. In the case of emergency, an OADI employee is to be called and they will open the window with a special unlocking device.

  

	11.	If any TENANT desires telegraphic, telephonic, fiber optic or other electronic connections, the LANDLORD or its agents will direct the electricians as to where and how the wires may
be introduced and without such directions, no boring or cutting for wires will be permitted. TENANT will be held responsible for all costs associated with the installation and service of such electronic connections. 

  

	12.	No shade or awning shall be put up, no painting done, or any alterations made in any part of the Building by putting up or changing any partitions, doors, or windows, nor shall
there be any nailing, boring, screwing into woodwork or walls or plastering, nor shall there be upon the Premises any engine, boiler, or other machinery without the prior written consent of the LANDLORD in each and every instance.

  

	13.	TENANT, its employees, clerks, or servants shall not use the Demised Premises for the purpose of lodging rooms or for any immoral or unlawful purpose. 

  

	14.	No room or rooms shall be occupied or used for sleeping or lodging apartments or for any other purpose than the purpose for which same is leased at any time.

  

	15.	No TENANT shall permit gambling or unlawful practice or practices of any kind in the Leased Premises. 

  

	16.	The LANDLORD or any agents or watchman shall have the right, with a passkey or otherwise, to enter any Premises in the Building at any time to examine the same or to make such
alterations, repairs, or additions as it shall deem necessary for the safety, preservation, cleanliness, or improvement of the Building. 

  

	17.	TENANT shall not install or operate vending machines of any kind in the Leased Premises without the written consent of LANDLORD. 

  

 23 

	18.	All glass, locks, and trimmings, in or about the doors and windows, and all electric globes and shades, belonging to the Building, shall be kept whole, and whenever broken by any
TENANT, shall be immediately replaced or repaired and put in order by such TENANT under the direction and to the satisfaction of the LANDLORD, and on removal, shall be left whole and in good repair. 

  

	19.	LANDLORD reserves the right to make and enforce such other reasonable rules and regulations as, in its judgment, may be deemed necessary or advisable from time to time to promote
the safety, care, and cleanliness of the Premises and for the preservation of good order therein. 

  

	20.	Smoking is strictly prohibited in all areas within the OADI Technology Center. 

  

	21.	Any TENANT occupying laboratory space shall provide a list of the chemicals and other substances to be used in said laboratory, and the maximum quantity of each expected to be on
site. The list shall be provided prior to signing of the LEASE. A new list shall be provided when there has been a significant change in the types and quantity of chemicals on site. 

  

 24

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