Item 1.01 Entry Into a Material Definitive Agreement.

On March 26, 2021, AcelRx Pharmaceuticals, Inc. (the "Company") entered into a sublease (the "New Sublease") with Weichert Workforce Mobility, Inc., as successor in interest to The MI Group, Inc. (the "Sublessor"), for 13,322 square feet of space located at 25821 Industrial Boulevard, Suites 350 & 400, Hayward, California (the "New Premises").

The term of the New Sublease is for a period of 27 months, with a scheduled commencement date of April 1, 2021. The total monthly base rent under the New Sublease for the New Premises will be $17,318.60. The Sublessor agreed to abate the Company's base rent obligation for the first month of the New Sublease term. In addition to its monthly base rent obligation, the Company is obligated to pay the Sublessor as additional rent its proportionate share of triple net operating expenses of the New Premises, including real property taxes. In connection with the New Sublease, the Company delivered to the Sublessor an irrevocable letter of credit for $70,000 as security for the Company's performance of its obligations under the New Sublease.

The foregoing summary of the New Sublease does not purport to be complete and is qualified in its entirety by reference to the New Sublease, a copy of which will be filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ending March 31, 2021.

Item 1.02 Termination of a Material Definitive Agreement.

In connection with the New Sublease, on March 26, 2021, the Company entered into a Lease Termination Agreement (the "Lease Termination") with Metropolitan Life Insurance Company to terminate its existing lease for the premises located at 301 - 351 Galveston Drive, Redwood City, California (the "Existing Premises") on April 30, 2021. The Lease Termination will not become effective unless and until the master landlord of the New Premises executes and delivers its consent to the New Sublease. Following the Lease Termination becoming effective, the existing letter of credit for $150,000 securing the Company's performance of its obligations under the existing lease will be released.

On March 26, 2021, the Company also entered into a Sublease Termination Agreement, dated March 24, 2021 (the "Sublease Termination"), with Genomic Health, Inc. ("Genomic") to terminate Genomic's existing sublease from the Company for certain premises located at 301-351 Galveston Drive, Redwood City, California on April 30, 2021. The Sublease Termination will not become effective unless and until the master landlord of the New Premises executes and delivers its consent to the New Sublease.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth above and referenced under Item 1.01 is hereby incorporated by reference into this Item 2.03.

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