Document:

EX-10.17

 Exhibit 10.17 

SECOND AMENDMENT 
 TO

 LOAN AND SECURITY AGREEMENT 

This Second Amendment to Loan and Security Agreement (the “Amendment”), is entered into as of August 6, 2012, by
and between SQUARE 1 BANK (“Bank”) and TOBIRA THERAPEUTICS, INC. (“Borrower”) 

RECITALS 
 Borrower
and Bank are parties to that certain Loan and Security Agreement dated as of November 9, 2011 (as amended from time to time, the “Agreement”). The parties desire to amend the Agreement in accordance with the terms of
this Amendment. 
 NOW, THEREFORE, the parties agree as follows: 
  

	1)	Section 6.7(b) of the Agreement is hereby amended and restated, as follows: 

(b) Week 24 Study 202 Topline Data. Borrower shall have received positive Study 202 topline data from week 24 (the
“Positive Week 24 Data”) and each of Borrower and Borrower’s Board of Directors shall have confirmed to Bank in writing, no later than January 1, 2013, that Borrower has received the Positive Week 24 Data. 

 

	2)	Section 6.7(c) of the Agreement is hereby amended and restated, as follows: 

(c) Week 48 Study 202 Topline Data. Borrower shall have received positive Study 202 topline data from week 48 (the
“Positive Week 48 Data”) and each of Borrower and Borrower’s Board of Directors shall have confirmed to Bank in writing, no later than July 1, 2013, that Borrower has received the Positive Week 48 Data. 

 

	3)	Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its
respective terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or
remedy of Bank under the Agreement, as in effect prior to the date hereof. Borrower ratifies and reaffirms the continuing effectiveness of all agreements entered into in connection with the Agreement. 

 

	4)	Borrower represents and warrants that the representations and warranties contained in the Agreement are true and correct as of the date of this Amendment. 

 

	5)	This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. 

 

	6)	As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following: 

	a)	this Amendment, duly executed by Borrower; 

  

	b)	confirmation satisfactory to Bank that Borrower has closed its Series B extension for no less than $10,000,000 in new equity; 

  

	c)	payment of a $1,000 facility fee, which may be debited from any of Borrower’s accounts; 

  

	d)	payment of all Bank Expenses, including Bank’s expenses for the documentation of this Amendment and any related documents, and any UCC, good standing or intellectual property search or filing fees, which may be
debited from any of Borrower’s accounts; provided that legal expenses incurred solely in connection with the drafting and negotiation of this Amendment shall not exceed $500; and 

 

	e)	such other documents and completion of such other matters, as Bank may reasonably deem necessary or appropriate. 

[Remainder of page intentionally left blank] 

  

 IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written. 

 

									
	TOBIRA THERAPEUTICS, INC.	  		  	SQUARE 1 BANK
					
	By:	 	/s/ Andrew Asa Hindman	  		  	By:	  	/s/ Zack Robbins
	Name:	 	Andrew Asa Hindman	  		  	Name:	  	Zack Robbins
	Title:	 	President & CEO	  		  	Title:	  	AVP

 [Signature Page to Second Amendment to Loan and Security Agreement]EX-10.18

 Exhibit 10.18 

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH APPLICABLE LAW. 
 WARRANT TO PURCHASE STOCK 

 

					
		 	Corporation:	  	Tobira Therapeutics, Inc.
		 	Number of Shares:	  	218,539
		 	Class of Stock:	  	Series B Preferred Stock (the “Series B Preferred”)
		 	Initial Exercise Price:	  	$0.5491 per share
		 	Issue Date:	  	November 9, 2011
		 	Expiration Date:	  	November 9, 2018

 THIS WARRANT CERTIFIES THAT,
for good and valuable consideration, the receipt of which is hereby acknowledged, SQUARE 1 BANK or its assignee (“Holder”) is entitled to purchase the number of fully paid
and nonassessable shares of the class of securities (the “Shares”) of the corporation (the “Company”) at the initial exercise price per Share (the “Warrant Price”) all as set
forth above and as adjusted pursuant to Article 2 of this warrant, subject to the provisions and upon the terms and conditions set forth in this warrant. 

ARTICLE 1 
 EXERCISE

 1.1 Method of Exercise. Holder may exercise this warrant by delivering this warrant and a duly executed Notice of Exercise in
substantially the form attached as Appendix 1 to the principal office of the Company. Unless Holder is exercising the conversion right set forth in Section 1.2, Holder shall also deliver to the Company a check for the aggregate Warrant Price
for the Shares being purchased. 
 1.2 Conversion Right. In lieu of exercising this warrant as specified in Section 1.1,
Holder may from time to time convert this warrant, in whole or in part, into a number of Shares determined by dividing (a) the aggregate fair market value of the Shares or other securities otherwise issuable upon exercise of this warrant minus
the aggregate Warrant Price of such Shares by (b) the fair market value of one Share. The fair market value of the Shares shall be determined pursuant to Section 1.3. Upon the conversion of this warrant in whole at such time when the
aggregate fair market value of the Shares or other securities otherwise issuable upon exercise of this warrant is less than the aggregate Warrant Price of such Shares, this Warrant shall be deemed canceled in full. 

1.3 Fair Market Value. If the Shares are traded regularly in a public market, the fair market value of the Shares shall be the closing
price of the Shares (or the closing price of the Company’s stock into which the Shares are convertible) reported for the business day immediately before Holder delivers its Notice of Exercise to the Company. If the Shares are not regularly
traded in a public market, the Board of Directors of the Company shall determine fair market value in its reasonable good faith judgment.  

 1.4 Delivery of Certificate and New Warrant. Promptly after Holder exercises or converts
this warrant, the Company shall deliver to Holder certificates for the Shares acquired and, if this warrant has not been fully exercised or converted and has not expired, a new warrant representing the Shares not so acquired. 

1.5 Replacement of Warrants. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and amount to the Company or, in the case of mutilation, on surrender and cancellation of this warrant,
the Company at its expense shall execute and deliver, in lieu of this warrant, a new warrant of like tenor. 
 1.6 Repurchase on
Sale, Merger, or Consolidation of the Company. 
 1.6.1
“Acquisition.” For the purpose of this warrant, “Acquisition” means (a) any sale, exclusive license, or other disposition of all or substantially all of the assets
(including intellectual property) of the Company, or (b) any reorganization, consolidation, merger or sale of the voting securities of the Company or any other transaction where the holders of the Company’s securities before the
transaction beneficially own less than 50% of the outstanding voting securities of the surviving entity after the transaction; provided that one or more sales of the Company’s securities in connection with a bona fide equity financing for
capital raising purposes in which the Company is the surviving corporation shall not be deemed an Acquisition. 
 1.6.2
Assumption of Warrant. If upon the closing of any Acquisition the successor entity assumes the obligations of this warrant, then this warrant shall be exercisable for the same securities, cash, and property as would be payable for the Shares
issuable upon exercise of the unexercised portion of this warrant as if such Shares were outstanding on the record date for the Acquisition and subsequent closing. The Warrant Price shall be adjusted accordingly.  

1.6.3 Nonassumption. If upon the closing of any Acquisition the successor entity does not assume the obligations of this warrant and
Holder has not otherwise exercised this warrant in full, then this Warrant shall be deemed to have been automatically converted pursuant to Section 1.2 and thereafter Holder shall participate in the Acquisition on the same terms as other
holders of the same class of securities of the Company.  
 ARTICLE 2 

ADJUSTMENTS TO THE SHARES 

2.1 Stock Dividends, Splits, Etc. If the Company declares or pays a dividend on its common stock payable in common stock, or other
securities, or subdivides the outstanding common stock into a greater amount of common stock, then upon exercise of this warrant, for each Share acquired, Holder shall receive, without cost to Holder, the total number and kind of securities to which
Holder would have been entitled had Holder owned the Shares of record as of the date the dividend or subdivision occurred. 

  
 2 

 2.2 Reclassification, Exchange or Substitution. Upon any reclassification, exchange,
substitution, or other event that results in a change of the number and/or class of the securities issuable upon exercise or conversion of this warrant, Holder shall be entitled to receive, upon exercise or conversion of this warrant, the number and
kind of securities and property that Holder would have received for the Shares if this warrant had been exercised immediately before such reclassification, exchange, substitution, or other event. The Company or its successor shall promptly issue to
Holder a new warrant for such new securities or other property. The new warrant shall provide for adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Article 2 including, without limitation,
adjustments to the Warrant Price and to the number of securities or property issuable upon exercise of the new warrant. The provisions of this Section 2.2 shall similarly apply to successive reclassifications, exchanges, substitutions, or other
events. 
 2.3 Adjustments for Combinations, Etc. If the outstanding Shares are combined or consolidated, by reclassification
or otherwise, into a lesser number of shares, the Warrant Price shall be proportionately increased. If the outstanding Shares are combined or consolidated, by reclassification or otherwise, into a greater number of shares, the Warrant Price shall be
proportionately decreased. 
 2.4 Adjustments for Diluting Issuances. In the event of an anti-dilution adjustment to the
Conversion Price (as defined in the Company’s Certificate of Incorporation, as amended (the “Certificate of Incorporation”)) of the Series B Preferred pursuant to the applicable provisions of the
Certificate of Incorporation, the Shares held by the Holder shall be entitled to a similar adjustment in accordance with such applicable provisions. 

2.5 Certificate as to Adjustments. Upon each adjustment of the Warrant Price, the Company at its expense shall promptly compute such
adjustment, and furnish Holder with a certificate of its Chief Financial Officer setting forth such adjustment and the facts upon which such adjustment is based. The Company shall, upon written request, furnish Holder a certificate setting forth the
Warrant Price in effect upon the date thereof and the series of adjustments leading to such Warrant Price. 
 2.6 Fractional
Shares. No fractional Shares shall be issuable upon exercise or conversion of the Warrant and the Number of Shares to be issued shall be rounded down to the nearest whole Share. If a fractional share interest arises upon any exercise or
conversion of the Warrant, the Company shall eliminate such fractional share interest by paying Holder amount computed by multiplying the fractional interest by the fair market value of a full Share. 

ARTICLE 3 

REPRESENTATIONS AND COVENANTS OF THE COMPANY 

3.1 Representations and Warranties. The Company hereby represents and warrants to the Holder as follows: 

(a) The initial Warrant Price referenced on the first page of this warrant is equal to the price paid per share in the Company’s
most recent equity financing. 
 (b) All Shares which may be issued upon the exercise of the purchase right represented by this
warrant, and all securities, if any, issuable upon conversion of the Shares, shall, upon issuance, be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and encumbrances except for restrictions on transfer provided
for herein or under applicable federal and state securities laws. 

  
 3 

 (c) The Company’s capitalization table attached to this warrant is true and complete
as of the Issue Date. 
 3.2 Notice of Certain Events. The Company shall provide Holder with not less than 10 days prior written
notice, including a description of the material facts surrounding, any of the following events: (a) declaration of any dividend or distribution upon its common stock, whether in cash, property, stock, or other securities and whether or not a
regular cash dividend; (b) offering for subscription pro rata to the holders of any class or series of its stock any additional shares of stock of any class or series or other rights; (c) effecting any reclassification or recapitalization
of common stock; or (d) the merger or consolidation with or into any other corporation, or sale, lease, license, or conveyance of all or substantially all of its assets, or liquidation, dissolution or winding up.  

3.3 Information Rights. So long as the Holder holds this warrant and/or any of the Shares, the Company shall deliver to the Holder
(a) promptly after mailing, copies of all communiques to the shareholders of the Company, (b) within one hundred eighty (180) days after the end of each fiscal year of the Company, the annual audited financial statements of the
Company certified by independent public accountants of recognized standing and (c) within forty-five (45) days after the end of each of the first three quarters of each fiscal year, the Company’s quarterly, unaudited financial
statements, in the form delivered by the Company to its investors. 
 3.4 Confidentiality. In handling any confidential
information, Holder and all employees and agents of Holder shall use such information only for purposes related to Holder’s status as a holder of equity in the Company, not disclose such information to any third party except as permitted hereby
and exercise the same degree of care that Holder exercises with respect to its own proprietary information of the same types (but no less than reasonable care) to maintain the confidentiality of any non-public information thereby received or
received pursuant to Section 3.3 above except that disclosure of such information may be made (i) to the subsidiaries or affiliates of Holder in connection Holder’s status as a holder of equity in the Company, (ii) as required by
law, regulations, rule or order, subpoena, judicial order or similar order, (iii) as may be required in connection with the examination, audit or similar investigation of Holder and (v) as Holder may determine in connection with the
enforcement of any remedies hereunder. Confidential information hereunder shall not include information that either: (a) is in the public domain or in the knowledge or possession of Holder when disclosed to Holder, or becomes part of the public
domain after disclosure to Holder through no fault of Holder; or (b) is disclosed to Holder on a non-confidential basis by a third party, provided Holder does not have actual knowledge that such third party is prohibited from disclosing such
information. 
 3.5 Registration Under Securities Act of 1933, as amended. The Company agrees that the Shares or, if the
Shares are convertible into common stock of the Company, such common stock, shall be “Registrable Securities”, and Holder shall be a “Holder” under the Amended and Restated Investors’ Rights Agreement among the Company and
other persons dated as of August 24, 2010, as amended. 

  
 4 

 ARTICLE 4 

MISCELLANEOUS 
 4.1
Term: Exercise Upon Expiration. This warrant is exercisable in whole or in part, at any time and from time to time on or before the Expiration Date set forth above; provided, however, that if the Company completes its initial public offering
(the “IPO”) within the three-year period immediately prior to the Expiration Date, the Expiration Date shall automatically be extended until the third anniversary of the effective date of the Company’s IPO. If this warrant has not
been exercised prior to the Expiration Date, this warrant shall be deemed to have been automatically exercised on the Expiration Date by “cashless” conversion pursuant to Section 1.2. 

4.2 Legends. This warrant and the Shares (and the securities, if any, issuable, directly or indirectly, upon conversion of the Shares,
if any) shall be imprinted with a legend in substantially the following form: 
 THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH APPLICABLE LAW. 
 4.3 Compliance with
Securities Laws on Transfer. This warrant and the Shares issuable upon exercise of this warrant (and the securities, if any, issuable, directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or
in part without compliance with applicable federal and state securities laws by the transferor and the transferee. The Company shall not require Holder to provide an opinion of counsel if the transfer is to an affiliate of Holder or if there is no
material question as to the availability of current information as referenced in Rule 144(c), Holder represents that it has complied with Rule 144 (d) and (e) in reasonable detail, the selling broker represents that it has complied with
Rule 144(f), and the Company is provided with a copy of Holder’s notice of proposed sale. 
 4.4 Transfer Procedure.
Subject to the provisions of Section 4.3, Holder may transfer all or part of this warrant or the Shares issuable upon exercise of this warrant (or the securities, if any, issuable, directly or indirectly, upon conversion of the Shares, if any)
by giving the Company notice of the portion of the warrant being transferred setting forth the name, address and taxpayer identification number of the transferee and surrendering this warrant to the Company for reissuance to the transferee(s) (and
Holder, if applicable). No surrender or reissuance shall be required if the transfer is to an affiliate of Holder.  
 4.5
Notices. All notices and other communications from the Company to the Holder, or vice versa, shall be deemed delivered and effective when given personally or mailed by first-class registered or certified mail, postage prepaid, at such address as
may have been furnished to the Company or the Holder, as the case may be, in writing by the Company or such Holder from time to time. All notices to the Holder shall be addressed as follows: 

  
 5 

 Square 1 Bank 

Attn: Warrant Administrator 
 406
Blackwell Street, Suite 240 
 Crowe Building 

Durham, NC 27701 
 4.6
Amendments. This warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. 

4.7 Attorneys’ Fees. In the event of any dispute between the parties concerning the terms and provisions of this warrant, the
party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorneys’ fees. 

4.8 Market Stand-Off Agreement. Holder hereby agrees that in connection with the IPO of the Company’s securities (other than a
registration of securities in a Rule 145 transaction or with respect to an employee benefit plan) that, upon request of the Company or the underwriters managing any underwritten offering of the Company’s securities, not to sell, make any short
sale of, loan, grant any option for the purchase of, pledge, hypothecate, limit such Holder’s market risk regarding or otherwise directly or indirectly dispose of any shares of the Company’s capital stock acquired through the exercise or
conversion of this Warrant (other than those included in the registration) or other capital stock of the Company or securities exchangeable or convertible into capital stock of the Company without the prior written consent of the Company or such
underwriters, as the case may be, for such period of time (not to exceed one hundred eighty (180) days from the date of the final prospectus used in such registration) as may be requested by the Company or such managing underwriters, and to
enter into a lock-up agreement in customary form with such underwriters providing for restrictions approved by the Board of Directors of the Company, provided that all officers and directors of the Company and holders of at least one percent
(1%) of the Company’s outstanding voting securities are bound by and have entered into similar agreements. The underwriters in connection with the IPO are intended third party beneficiaries of this Section and shall have the right, power
and authority to enforce the provisions hereof as though they were a party hereto. Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in the Company’s IPO that are consistent with this
Section 4.8 or that are necessary to give further effect thereto. The certificates for any such securities of the Company held by Holder shall contain, for so long as such market stand-off provision remains in place, a legend in substantially
the following form: 
 “THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER INCLUDING A
MARKET STAND-OFF AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL STOCKHOLDER THAT PROHIBITS SALE OR TRANSFER OF SUCH SHARES FOR A PERIOD OF UP TO 180 DAYS FOLLOWING THE DATE OF THE FINAL PROSPECTUS FOR THE INITIAL PUBLIC OFFERING OF THE ISSUER’S
COMMON STOCK. THIS AGREEMENT IS BINDING UPON TRANSFEREES. A COPY OF THE AGREEMENT IS ON FILE WITH THE SECRETARY OF THE ISSUER.” 

  
 6 

 In order to enforce the foregoing covenant, the Company may impose stop transfer instructions with respect to the
securities held by Holder (and the shares or securities of every other person subject to the foregoing restriction) until the end of such period. Notwithstanding the foregoing, if (i) during the last seventeen (17) days of the one hundred
eighty (180)-day restricted period, the Company issues an earnings release or material news or a material event relating to the Company occurs; or (ii) prior to the expiration of the one hundred eighty (180)-day restricted period, the Company
announces that it will release earnings results during the sixteen (16)-day period beginning on the last day of the one hundred eighty (180)-day period, the restrictions imposed by this Section 4.8 shall continue to apply until the expiration
of the eighteen (18)-day period beginning on the issuance of the earnings release or the occurrence of the material news or material event. 

4.9 Governing Law. This warrant shall be governed by and construed in accordance with the laws of the State of California, without
giving effect to its principles regarding conflicts of law. 
 [Signature Page Follows] 

 

  
 7 

 IN WITNESS WHEREOF, the undersigned has executed this Warrant to Purchase Stock as of the date set forth above.

  

			
	TOBIRA THERAPEUTICS, INC.
		
	By:	 	/s/ Andrew Hindman
	Name:	 	Andrew Hindman
	Title:	 	President & CEO

 [Signature Page to Warrant to Purchase Stock] 

 APPENDIX 1 

NOTICE OF EXERCISE 

1. The undersigned hereby elects to purchase             shares of the
            stock of TOBIRA THERAPEUTICS, INC. pursuant to the terms of the attached warrant, and tenders herewith payment of the
purchase price of such shares in full. 
 1. The undersigned hereby elects to convert the attached warrant into shares in the manner
specified in the warrant. This conversion is exercised with respect to             of the shares covered by the warrant. 

[Strike paragraph that does not apply.] 

2. Please issue a certificate or certificates representing said shares in the name of the undersigned or in such other name as is
specified below: 
 Square 1 Bank 

Attn: Warrant Administrator 
 406
Blackwell Street, Suite 240 
 Fowler Building 

Durham, NC 27701 
 3. The
undersigned represents it is acquiring the shares solely for its own account and not as a nominee for any other party and not with a view toward the resale or distribution thereof except in compliance with applicable securities laws. 

 

			
	SQUARE 1 BANK or Registered Assignee	 	
		
	 	 	
	(Signature)
	 	
		
	 	 	
	(Date)

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