DURECT CORP
OFFER LETTER BETWEEN JOSEPH STAUFFER AND DURECT CORPORATION DATED JUNE 11, 2009
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<DESCRIPTION>OFFER LETTER BETWEEN JOSEPH STAUFFER AND DURECT CORPORATION DATED JUNE 11, 2009
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<TITLE>Offer letter between Joseph Stauffer and DURECT Corporation dated June 11, 2009</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.1 </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">Friday, June 11, 2009 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Joseph William Stauffer, D.O. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">Dear Joe: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px;padding-bottom:3px;"><FONT FACE="Times New Roman" SIZE="2">It is a pleasure to confirm the offer extended to you to join DURECT Corporation as Chief Medical Officer and
Executive Vice President, Corporate Strategy reporting directly to me. As an exempt, full-time, regular employee, your starting base semi-monthly salary will be $15,625.00 which equates to $375,000.00 on an annual basis. We would like your start
date to be as soon as possible. In connection with your commencement of employment and&nbsp;subject to obtaining required approvals,&nbsp;the Company will grant you&nbsp;an option to purchase 250,000 shares of DURECT Common Stock, one-fourth (<FONT
SIZE="1"><SUP>&nbsp;1</SUP></FONT><FONT SIZE="2">/</FONT><FONT SIZE="1">4</FONT><FONT FACE="Times New Roman" SIZE="2">)&nbsp;of the total amount of such shares shall vest on the one-year anniversary of the date of grant, and one-sixteenth (<FONT
SIZE="1"><SUP>&nbsp;1</SUP></FONT><FONT SIZE="2">/</FONT><FONT SIZE="1">16</FONT><FONT FACE="Times New Roman" SIZE="2">)&nbsp;of the total amount of such shares shall vest at the end of each three-month period following the one-year anniversary of
the grant. The per share exercise price for the option will be the fair market value of DURECT Corporation&#146;s Common Stock on the date of the grant of the option. </FONT></FONT></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">DURECT will pay you a one-time sign-on bonus in the amount $100,000.00 less applicable income taxes withheld, which amount will be included in your first pay check after you commence employment. As a condition of
receiving the hiring bonus, you agree that if you voluntarily terminate your employment during the first three years with DURECT Corporation, or if your employment is terminated by DURECT Corporation for cause, you will be responsible for any income
and employment taxes that become applicable to the hiring bonus provided to you on account of your termination, and you agree that you will repay the entire amount back to the company. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">You will be eligible for the equivalent annual bonus that all other executive vice presidents of the Company are eligible for, which is currently 40% of your annual base salary. This bonus will not be subject to
pro-ration due to your start date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Effective your start date you will be eligible to begin accruing vacation at the rate of 13.33 hours per month, or
twenty (20)&nbsp;days per year up to a maximum of 320 hours, or forty (40)&nbsp;days. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">In addition, the Company will reimburse you for temporary housing
and rental car expenses incurred during the course of conducting business in the Cupertino, California headquarters. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><U>Benefits</U> </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Effective the first of the month following your start date, you will be eligible to participate in the benefits enjoyed by an indefinite term employee, including medical,
dental, vision, life and disability insurances. You will be eligible for paid holidays, vacation accrual, and sick leave. You may elect to participate in the 401(k) savings plan, the Employee Stock Purchase Plan, and a Section&nbsp;125 Cafeteria
Plan according to the terms and conditions governing participation in the plans. If the terms and conditions governing any such benefit plan differ from any provision of this letter, the plan documents containing these terms and conditions will
govern and take precedence. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><U>Authorization to Work </U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">Federal regulations require that you establish your identity and authorization to work in this country, so this offer is necessarily contingent upon such proof. Enclosed is a description of the original documents you will be required to
bring on your first day of work, at which time we will meet with you to examine the original documents and ask that you complete the required &#147;INS&#148; form in our presence. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><U>Agreements</U> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The enclosed &#147;Confidential Information and Invention Assignment Agreement&#148; must be signed by
you before you start your first day of work. Please sign both copies of the Agreement and return one copy. You may retain the duplicate for your records. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">This offer is contingent upon successful completion of a pre-employment drug screening test and background investigation due to the fact that DURECT is engaged in the development and manufacture of pharmaceutical products, including
controlled substances. Enclosed, please find a &#147;Notification and Authorization To Conduct Employment Background Investigation&#148; form that you <B><U>must complete and return</U></B> prior to your start date. Also enclosed, please find a
&#147;Forensic Drug Testing Custody and Control Form&#148;. You <B><U>must</U></B> bring this form to a local Quest Diagnostics laboratory in your area prior to your start date in order to complete the pre-employment drug screen test. Included is a
list of those local laboratories. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Your employment at DURECT is for an unspecified period of time and your relationship with the Company is and shall
continue to be at-will, as defined under applicable law, meaning that either you or DURECT may terminate your employment relationship at any time for any reason or no reason, with or without notice. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Please indicate that these terms and conditions are acceptable and confirm your acceptance of this offer by signing and dating the enclosed <I>original</I> of this
letter and returning it by Friday, June&nbsp;19, 2009, as this offer will expire at that time. You may retain the duplicate for your records. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">Congratulations on your offer to join DURECT Corporation; we look forward to working with you. Please do not hesitate to call me directly at (408)&nbsp;777-1419 if you have any questions. </FONT></P> <P
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Sincerely,</FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ James E. Brown</FONT></P></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">James E. Brown</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="2">President and CEO</FONT></P></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">JEB/km </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Enclosures
</FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Signature</FONT></TD>
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<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ J.W. Stauffer</FONT></P></TD>
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<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Date</FONT></TD>
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<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">15 June 2009</FONT></P></TD>
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