Document:

EX-10.16

 Exhibit 10.16 

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 
 LICENSE AND DEVELOPMENT AGREEMENT

 THIS LICENSE AND DEVELOPMENT
AGREEMENT is made and entered into as of June 30, 1998 (the “Effective Date”) by and between METABOLEX, INC., a Delaware corporation with a place of business at
3876 Bay Center Place, Hayward, CA 94545 (“Metabolex”), and DIATEX, INC., a Texas corporation with a place of business at 105 Elm Spring Lane, San Antonio, TX 78231 (“DiaTex”).
Metabolex and DiaTex may be referred to herein as a “Party” or, collectively, as “Parties.” 
 RECITALS

 WHEREAS, Metabolex has expertise in, and proprietary technology for, the discovery, development
and commercialization of novel therapeutics for use in the treatment of diabetes and other diseases and conditions; and 

WHEREAS, DiaTex has developed proprietary technology regarding use of the compound Halofenate, and its
enantiomers, analogues and derivatives, for the treatment of diabetes; and 
 WHEREAS, Metabolex wishes to obtain, and
DiaTex desires to grant, an exclusive license to Metabolex to develop, make, have made, import, offer for sale and sell therapeutic products containing Halofenate or enantiomers, analogues or derivatives thereof for the treatment of diabetes and
related conditions; 
 NOW, THEREFORE, the Parties agree as follows: 

 

	1.	DEFINITIONS 

 1.1 “Affiliate” means any company or entity
controlled by, controlling or under common control with a Party. As used in this Section 1.1, “control” means (a) that an entity or company owns, directly or indirectly, fifty percent (50%) or more of the voting stock of
another entity, or (b) that an entity, person or group has the actual ability to control and direct the management of the entity, whether by contract or otherwise. 

1.2 “Controlled” means, with respect to any material, Know-How or intellectual property right, that the Party owns or
has a license to such material, Know-How or intellectual property right and has the ability to grant access, a license, or a sublicense to such material, Know-How or intellectual property right to the other Party as provided for herein without
violating an agreement with a Third Party as of the time the Party would be first required hereunder to grant the other Party such access, license or sublicense. 

1.3 “DiaTex Know-How” means all Know-How Controlled by DiaTex at any time during the term of this Agreement, but excluding
the DiaTex Patents. 

  
 1. 

 1.4 “DiaTex Patents” means any and all Patents Controlled by DiaTex
during the term of this Agreement that claim a Licensed Compound or its manufacture or use or a Product or its manufacture or use. 

1.5 “DiaTex Principal” means a person listed on Exhibit A. Such persons may be collectively referred to as the
“DiaTex Principals.” 
 1.6 “DiaTex Technology” means the DiaTex Know-How and the DiaTex Patents. 

1.7 “Enantiomer” means either of the chiral isomers of Halofenate that are direct, nonsuperimposable mirror images of
each other or derivatives or analogues of the chiral isomers of Halofenate. 
 1.8 “Enantiomer Patent” means
a Patent having at least one claim which claims a composition of matter embodying an Enantiomer, a method for producing such Enantiomer, or the use of such Enantiomer. 

1.9 “FDA” means the U.S. Food and Drug Administration. 

1.10 “Halofenate” means the molecule having the structure and the International Union of Pure and Applied Chemistry
(“IUPAC”) name as described in Exhibit B. 
 1.11 “IND” shall mean an investigational new drug
application for Regulatory Approval by the FDA, or equivalent approval by the relevant regulatory agency of a country, to commence clinical testing of a drug, as defined by the FDA or relevant regulatory agency, as the case may be. 

1.12 “Joint Know-How” means all Know-How developed jointly by the Parties during the term of the Agreement. 

1.13 “Joint Patents” means (a) all Patents claiming inventions within the Joint Know-How, and (b) the
Enantiomer Patents. 
 1.14 “Joint Technology” means the Joint Know-How and the Joint Patents. 

1.15 “Know-How” means all information, data, know-how, trade secrets, inventions, developments, results, techniques
and materials, whether or not patentable, that are necessary or useful to the discovery and development of Licensed Compounds and Products for use in the treatment or prevention of human diseases or conditions, including without limitation diabetes,
or to the manufacture or use of such Licensed Compounds or Products. 
 1.16 “Licensed Compound” means
Halofenate, the Enantiomers, and any analogues or derivatives of Halofenate. 
 1.17 “NDA” shall mean an application
for Regulatory Approval by the FDA, or equivalent approval by the relevant regulatory agency of a country, to commence marketing of a drug, as defined by the FDA or relevant regulatory agency, as the case may be. 

 
 [*] = Certain confidential information contained in this document, marked by
brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 2. 

 1.18 “Net Sales” 

(a) In the case of a Product sold by a Sublicensee or Third Party, “Net Sales” shall have the meaning ascribed in the
relevant sublicense agreement between Metabolex and such Sublicense or Third Party for sales of such Product. 
 (b) In the case of a
Product sold by Metabolex or its Affiliate, “Net Sales” means the gross invoiced price for the sale of such Product, less the following deductions: 

(i) sales taxes, duties and other governmental charges; 

(ii) separately identified shipping costs (including freight and insurance); 

(iii) cash, trade and/or quantity discounts actually allowed; 

(iv) amounts repaid or credited by reason of rejection or return of goods; 

(v) volume or formal discount amounts paid or credited to a wholesaler, purchaser, Third Party payor or other contractee as a result
of a contractual arrangement specific to a Product; 
 (c) rebates paid or credited to any governmental agency (or branch thereof) or
to any Third Party payor, administrator or contractee; and 
 (d) discounts mandated by, or granted in response to, applicable state,
provincial or federal law, wholesaler, including chargebacks or retroactive price reductions. 
 A sale of a Product under this
Section 1.18(b) is deemed to occur upon the earlier of: (i) invoice date; (ii) delivery of Product; (iii) payment of an invoice by a Third Party purchaser. 

1.19 “Patents” means any and all issued or pending patents and patent applications, both foreign and domestic, and
including without limitation (i) all divisionals, continuations and continuations-in-part of any such applications, (ii) any patents that issue from any of the foregoing, and (iii) all substitutions, extensions, reissues, renewals,
supplementary protection certificates and inventors’ certificates with respect to any of the foregoing issued patents. 

1.20 “Product” means a product that contains a Licensed Compound, including any formulation thereof, and is intended
for sale for use in the treatment or prevention of human diseases or conditions, including without limitation diabetes. 
 1.21
“Racemate” means a mixture comprising approximately equal proportions of each Enantiomer. 
 1.22 “Regulatory
Approval” shall mean any approvals, licenses, registrations or authorizations of any country, federal, state or local regulatory agency, ministry, department, bureau or other governmental entity necessary for the development, use,
marketing, sale or distribution of a Product. 
  
 [*] = Certain confidential
information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 3. 

 1.23 “Sublicensee” means a Third Party that is granted a sublicense by
Metabolex to make, use, import and/or sell a Product. 
 1.24 “Third Party” means a person or entity other than
DiaTex or Metabolex or their respective Affiliates. 
  

	2.	LICENSES 

 2.1 Metabolex License. DiaTex hereby grants Metabolex an
exclusive license (even as to DiaTex), with right to sublicense, to use and practice the DiaTex Technology and the Joint Technology to develop, make, have made, import, offer for sale and sell Licensed Compounds and Products, provided that DiaTex
shall retain sufficient rights as necessary for DiaTex’s performance of its obligations under this Agreement, and solely for such purpose. 

2.2 Exclusivity. DiaTex hereby covenants that it will require and ensure, to the extent permissible by law, that DiaTex, the DiaTex
Principals and DiaTex’s employees shall conduct such work on Halofenate and [*] exclusively for the benefit of Metabolex pursuant to this Agreement. 

2.3 Agreement Regarding [*]. 

(a) The Parties acknowledge that DiaTex [*] with the [*] regarding the rights to [*]. 

(b) The Parties desire that after the Effective Date Metabolex shall [*] with [*] that [*] and shall make reasonable efforts, with
DiaTex’s cooperation, to [*] with [*] that is [*] (“[*]”). The Parties agree that the terms of any [*] shall [*] for Metabolex to [*] to allow [*] to [*], and for [*] to (i) provide funding for and conduct the development of [*],
including without limitation performing [*] in such country, and (ii) manufacture [*]. Any [*] shall also [*] for pharmaceutical products of similar nature and market potential and shall specifically [*] all development activities regarding [*]
and the [*] shall be subject to the prior approval of Metabolex and shall conform to [*], as applicable, under the United States Federal Food, Drug and Cosmetic Act and regulations promulgated thereunder. If Metabolex is unable to [*], or if
Metabolex [*], Metabolex shall not [*]. 
 (c) If Metabolex [*] pursuant to Section 2.3(b) by [*], the Parties will [*] that
Metabolex and DiaTex shall [*], including [*], if any, [*] under [*]. If [*] associated with it, then Diatex will [*] of the [*], and then [*]. In the event that Metabolex [*], Metabolex shall have no further obligations under this Section 2.3,
and the provisions of Sections [*] Products by or [*] that [*]. 
 (d) In the event that Metabolex [*] by [*], the terms of [*]
hereof shall not apply to [*]. 
  
 [*] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 4. 

	3.	RESEARCH AND DEVELOPMENT PROGRAM 

3.1 Overview. DiaTex agrees to work cooperatively with and assist Metabolex in a program for the research and development of Licensed
Compounds and Products (the “Program”), in order for Metabolex to eventually commercialize the Products for the treatment or prevention of human diseases, including without limitation diabetes. Metabolex will be responsible for the overall
Program, including its management and direction. DiaTex will be responsible for Animal Testing Program, as described in Section 3.2(b). 

3.2 DiaTex Responsibilities. 

(a) Document Transfer. Promptly following the Effective Date, DiaTex shall transfer to Metabolex copies of (i) its IND for the
Racemate, and (ii) all documents or materials in its possession comprising or containing DiaTex Know-How. 
 (b) Animal Testing
Program. Promptly following the Effective Date, DiaTex shall commence a program of animal drug testing for demonstrating the improved efficacy of at least one of the Enantiomers, with the objective of providing sufficient data and justification
to file at least one Enantiomer Patent (the “Animal Testing Program”). DiaTex shall bear all costs relating to the Animal Testing Program. 

(c) Reporting. As soon as is reasonably practicable following the end of each calendar quarter of the Program Term (as defined in
Section 3.5 below), DiaTex shall deliver to Metabolex a report detailing the results of the Animal Testing Program during such quarter and describing its research goals for the next quarter. Such reports shall include, without limitation, all
data, documents and materials developed during or resulting from DiaTex’s efforts under the Animal Testing Program for such quarter which relate to the discovery, development, use or manufacture of the Enantiomer. 

3.3 Metabolex Efforts. Metabolex shall use diligent efforts to conduct preclinical and clinical testing of the Racemate, in order to
determine its efficacy for use in the treatment or prevention of human diseases or conditions, including without limitation diabetes. Metabolex shall also, to the extent it deems appropriate, create (or have created) derivatives and analogues of the
Racemate and the Enantiomers for conducting such preclinical and clinical testing. Metabolex shall use diligent efforts to conduct such testing on one or more Licensed Compounds as needed to achieve regulatory approval of a Product, if possible.
Metabolex shall bear all costs of the Program, provided that Metabolex shall not be responsible for any costs of the Animal Testing Program. 

3.4 DiaTex Principals. The DiaTex Principals shall be available for consultation throughout the Program Term, including without
limitation by phone, by fax or in person. The DiaTex Principals shall attend Metabolex meetings, if Metabolex so requests and upon reasonable notice. If such meeting takes place outside the San Antonio, Texas area, Metabolex shall pay DiaTex a per
diem of $[*] for each DiaTex Principal who attends such meeting, plus all reasonable out of pocket expenses relating to attending the meeting. If such meeting takes place in the San Antonio, Texas area, Metabolex shall pay DiaTex $[*] per hour of
attendance for each DiaTex Principal who attends such meeting. DiaTex hereby agrees to ensure that the DiaTex Principals will agree to and be bound by this Section 3.4. 
  

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 5. 

 3.5 [*] of Program. The Program Term shall be four (4) years from the Effective Date.
At the fourth anniversary of the Effective Date, if Metabolex has (a) [*] with respect to the Racemate and its derivatives and analogues, and (b) [*] with respect to the Enantiomers, Metabolex shall either: 

(a) [*], in which case, Metabolex shall, at its option, grant DiaTex either (i) [*] of the [*], or (ii) [*] of the [*]. For
purposes of this Section 3.5(a), “[*]” shall mean the [*] under [*]; or 
 (b) [*] to [*] and provide [*] commercially
reasonable [*] and [*] that may [*]. 
  

	4.	PURCHASE AND DELIVERY OF HALOFENATE 

4.1 Purchase. The Parties agree that promptly after the Effective Date, DiaTex shall sell to Metabolex, and Metabolex shall purchase,
[*] of Halofenate. Such purchase shall be made by delivery to Metabolex in a form mutually agreed, and such delivery will be accompanied by an invoice for such Halofenate in the amount of $[*]. Within [*] days of delivery of the Halofenate and the
invoice therefor pursuant to this Section 4.1, Metabolex shall pay the full amount of such invoice to DiaTex pursuant to the payment procedures set forth in Article 6 below. 

4.2 Delivery. The Halofenate supplied by DiaTex to Metabolex under Section 4.1 will be delivered FCA the Metabolex facility.
DiaTex shall make shipping arrangements with a carrier mutually agreeable to the Parties. Title and risk of loss passes to Metabolex when the Halofenate is delivered to the Metabolex facility. All insurance premiums and other expenses related to
such transportation and delivery shall be at DiaTex’s expense. 
  

	5.	PAYMENTS 

 5.1 License Fees. In consideration of the license
granted herein, Metabolex shall pay DiaTex the following license fees: 
 (a) [*], Metabolex shall pay DiaTex $[*]; 

(b) [*], Metabolex shall pay DiaTex $2,000 per month [*]. 
  

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 6. 

 5.2 Milestone Payments. Metabolex shall pay DiaTex the following milestone payments within
[*] days of achieving each milestone below for the first time for a Product containing the indicated Licensed Compound: 
  

									
	 	  	Licensed Compound	 
	Milestone	  	[*]	 	 	[*]	 
	 [*]
	  	 	[	*] 	 	$	50,000	  
	 [*]
	  	 	[	*] 	 			
	 [*]
	  				 	 	[*]	  
	 [*]
	  	 	[	*] 	 	 	[*]	  
		  	 	[	*] 	 			

 As used in this Section 5.2: 

(a) “[*]” means [*] which Metabolex determines [*] the applicable Licensed Compound or Product. 

(b) “[*]” means [*] Metabolex [*] pharmaceutical products, [*]. 

5.3 Royalties. Metabolex shall pay DiaTex a royalty of two percent (2%) on all Net Sales of Products by Metabolex, its Affiliates
or its Sublicensees, in countries where there is a valid claim for the use, manufacture, and sale of Product from an issued DiaTex Patent or Joint Patent. Such royalty obligation will commence on the first commercial sale of such Product in a
country by Metabolex, its Affiliates or its Sublicensees, and will expire on the expiration of last to expire DiaTex Patent or Joint Patent claiming such Product on a country-by-country basis. For clarity, the foregoing royalty shall not apply to
Products that contain the Racemate. 
 5.4 Cumulative Sales Payments. Metabolex shall pay DiaTex the following amounts, on a
one time only basis, within [*] days of Metabolex learning that the cumulative Net Sales of a Product containing the Racemate exceed the following amounts: 
  

			
	 Cumulative Net Sales
	  	Payment
	 US[*]
	  	[*]
	 US[*]
	  	[*]
	 US[*]
	  	[*]
	 US[*]
	  	[*]
	 US[*]
	  	[*]
	 US[*]
	  	[*]

  
 [*] = Certain confidential information contained in
this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 7. 

	6.	PAYMENT PROCEDURES 

 6.1 Manner of Payment.
Remittance of payments under Articles 4 and 5 will be made by means of wire or electronic transfer to DiaTex’s account in a bank in the United States to be designated by DiaTex. 

6.2 Payments and Reports. All amounts payable to DiaTex under this Agreement shall be paid in U.S. dollars. Royalty obligations that
accrue during a calendar quarter shall be paid within [*] days after the end of such calendar quarter, and other payments owing shall be made as specified herein. Each payment of royalties due to DiaTex under Section 5.3 shall be accompanied by
a report listing (i) in the case of a sale of a Product by Metabolex or its Affiliate, the gross selling price of each Product sold during such period on a product-by-product and country-by-country basis and the calculation of Net Sales based
on such sales including all other information reasonably necessary to determine the appropriate amount of such royalty payments; or (ii) in the case of a sale of a Product by a Sublicensee, such Sublicensee’s calculation of Net Sales.

 6.3 Exchange Rate. The rate of exchange to be used in computing Net Sales and the amount of currency equivalent in United
States dollars due DiaTex shall be made at the rate of exchange quoted on the last business day of the applicable royalty period (calendar quarter period) in the Wall Street Journal or a similar reference, consistently applied. 

6.4 Records and Audit. For a period of [*] years after the royalty period to which the records relate, Metabolex shall keep complete
and accurate records pertaining to the sale or other disposition of the Products commercialized by it, in sufficient detail to permit DiaTex to confirm the accuracy of all payments due hereunder. DiaTex shall have the right to cause an independent,
certified public accountant to audit such records to confirm the Net Sales and royalty payments; provided, however, that such auditor shall not disclose Metabolex’s confidential information to DiaTex, except to the extent
such disclosure is necessary to verify the amount of royalties and other payments due under this Agreement. Such audits may be exercised once a year, within [*] after the royalty period to which such records relate, upon notice to Metabolex and
during normal business hours. Any amounts shown to be owing by such audits shall be paid immediately with interest in the amount of [*] per month (or the maximum amount permitted by law, if less) from the date first owed until paid. DiaTex shall
bear the full cost of such audit unless such audit discloses a variance in the amounts paid by Metabolex of more than [*] percent [*] from the amount of royalties and/or other payments actually owed. In such case, Metabolex shall bear the full cost
of such audit. 
  

	7.	INTELLECTUAL PROPERTY 

 7.1 Ownership of Inventions.
Except as otherwise provided in this Article 7, the Party that invents or develops specific Know-How shall own such Know-How and all intellectual property rights therein, including without limitation any Patents claiming such Know-How. Inventorship
shall be determined in accordance with the U.S. patent laws. Each Party shall remain the sole owner of its respective technology and other intellectual property that it owned as of the Effective Date or develops independently. A Party shall not have
or acquire any rights in any inventions, know-how or intellectual property rights of the other Party, except as specifically granted herein. The Parties shall each own an undivided one-half interest in all  

 
 [*] = Certain confidential information contained in this document, marked by
brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 8. 

 
Joint Technology subject to the following: Metabolex shall have the exclusive right to use and practice the Joint Technology for use in the treatment or prevention of human diseases or
conditions, including without limitation diabetes. The Parties shall jointly own the Enantiomer Patents, and the Parties agree to execute all instruments and assignments and take all such actions necessary to effect such joint ownership. 

7.2 Patent Prosecution. 

(a) Party’s Patents. Each Party shall have the sole right to file, prosecute and maintain Patents claiming inventions within such
Party’s Know-How, at such Party’s expense. 
 (b) Joint Patents. Metabolex shall have the responsibility, at its expense,
to file, prosecute and maintain Joint Patents claiming inventions within the Joint Know-How, respectively, in such countries as selected by Metabolex. Metabolex shall reasonably consider any recommendations provided by DiaTex regarding patent filing
and/or prosecution of such patents, but the final decision as to filing and/or prosecution matters shall rest with Metabolex. 
 7.3
Cooperation. Each Party agrees to cooperate with the other and take all reasonable additional actions as may be reasonably required to achieve the intent of this Article 7, including, without limitation, the execution of all necessary and
appropriate instruments and documents. 
 7.4 Infringement of Third Party Patents. In the event that a Third Party files an
action against a Party alleging that such Party’s activities under this Agreement infringe such Third Party’s patent rights, such Party shall give written notice to the other Party, and the Parties will consult and cooperate on the best
course of action. The Party that was sued shall have the right to defend itself against such action, and the other Party shall provide all reasonable assistance in such defense at the requesting Party’s sole expense. 

7.5 Infringement of DiaTex Patents. If either Party becomes aware that a Third Party is infringing any rights in the DiaTex Patents,
such Party shall give written notice to the other Party describing in detail the nature of such infringement. Metabolex (or its Sublicensee) shall have the initial right, but not the obligation, to enforce the DiaTex Patents against such Third Party
infringer. Each Party agrees to provide the other Party (or its Sublicensee) all reasonable assistance in such enforcement at the requesting Party’s sole expense. Any damages or other recovery, whether by settlement or otherwise, from an action
hereunder to enforce DiaTex Patents shall first be applied pro rata to each Party to pay the costs and expenses of litigation in such action, and any remaining amount shall be paid to Metabolex and deemed to be Net Sales for purposes of royalty
obligations to DiaTex hereunder. 
 7.6 Infringement of Joint Patents. If either Party becomes aware that a Third Party is
infringing any Patent rights in the Joint Technology, such Party shall give written notice to the other. Party describing in detail the nature of such infringement. Metabolex shall have the sole right, at its expense, to enforce such Patents in the
Joint Technology against Third Party infringers. DiaTex agrees to provide Metabolex all reasonable assistance in such enforcement at  
  

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 9. 

 
Metabolex’s sole expense. Any damages or other recovery, whether by settlement or otherwise, from an action hereunder to enforce such Patents shall first be applied pro rata to each Party to
pay such Party’s costs and expenses of litigation in such action. Any remaining amount shall be paid to Metabolex, and [*] shall be deemed to be Net Sales for purposes of royalty obligations to DiaTex hereunder. 

 

	8.	REPRESENTATIONS AND WARRANTIES 

 8.1
Mutual Representations and Warranties. Each Party hereby represents and warrants to the other Party as follows: 
 (a) Such Party
(a) is duly organized, validly existing and in good standing under the laws of the state in which it is organized; (b) has the power and authority and the legal right to own and operate its property and assets, to lease the property and
assets it operates under lease, and to carry on its business as it is now being conducted; and (c) is in compliance with all requirements of applicable law, except to the extent that any noncompliance would not materially adversely affect such
Party’s ability to perform its obligations under the Agreement. 
 (b) Such Party (a) has the power and authority and the
legal right to enter into the Agreement and to perform its obligations hereunder and (b) has taken all necessary action on its part to authorize the execution and delivery of the Agreement and the performance of its obligations hereunder. The
Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid, binding obligation, enforceable against such Party in accordance with its terms. 

(c) All necessary consents, approvals and authorizations of all governmental authorities and other persons required to be obtained by
such Party in connection with the Agreement have been obtained. 
 (d) The execution and delivery of the Agreement and the
performance of such Party’s obligations hereunder do not materially conflict with, or constitute a material default or require any consent under any material contractual obligation of such Party. 

8.2 DiaTex represents and warrants to Metabolex that as of the date of this Agreement: 

(a) DiaTex owns all the DiaTex Patents and DiaTex Know-How existing as of the Effective Date, and to the best of DiaTex’s and the
DiaTex Principals’ knowledge, the DiaTex Patents and DiaTex Know-How existing as of the Effective Date are subsisting and are not invalid or unenforceable, in whole or in part; 

(b) DiaTex has the full right, power and authority to enter into this Agreement and to grant the licenses granted under
Section 2.1 hereof; 
 (c) to the best of DiaTex’s and the DiaTex Principals’ knowledge, the DiaTex Patents and DiaTex
Know-How existing as of the Effective Date practiced as permitted herein do not infringe on any intellectual property rights owned by any Third Party. 
  

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 10. 

	9.	CONFIDENTIALITY 

 9.1 Confidential Information Obligations. As used
herein, “Confidential Information” means information that a Party discloses to the other Party under this Agreement in oral, written, graphic, electronic or other form, and is marked or otherwise designated as “confidential” or
“proprietary” and, if disclosed orally, is summarized and designated as “confidential” or “proprietary” in a writing provided to the receiving Party not later than [*] days after such disclosure, provided
that Confidential Information shall not include such information excluded under Section 9.2. Except to the extent expressly authorized by this Agreement or otherwise agreed in writing by the Parties, each Party agrees that, during
the term of this Agreement and for [*] years after the expiration or termination of this Agreement, it shall keep confidential and shall not publish or otherwise disclose and shall not use for any purpose other than as provided for in this Agreement
any Confidential Information furnished to it by the other Party pursuant to this Agreement. 
 9.2 Exceptions. The obligations
set forth in Section 9.1 shall not apply to any Information that the receiving Party can demonstrate by competent evidence: 

(a) was already known to the receiving Party, other than under an obligation of confidentiality, at the time of disclosure by the other
Party; 
 (b) was generally available to the public or otherwise part of the public domain at the time of its disclosure to the
receiving Party by the other Party; 
 (c) became generally available to the public or otherwise part of the public domain after its
disclosure and other than through any act or omission of the receiving Party in breach of this Agreement; 
 (d) was disclosed to the
receiving Party, other than under an obligation of confidentiality to a third Party, by a third Party who had no obligation to the disclosing Party not to disclose such information to others; or 

(e) is independently developed by the receiving Party without using any of the other Party’s Confidential Information. 

For clarity, it is understood that notwithstanding the fact that individual components of a particular item of Confidential Information are in
the public domain, but the compilation or integration of such components in such item is not in the public domain, the fact that such individual components of the Program are in the public domain does not relieve a Party of its obligations of
confidentiality under this Article 9 with regard to the compilation or integration of such components. 
  

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 11. 

 9.3 Permitted Disclosure. Notwithstanding the limitations in Section 9.1, Metabolex
may disclose Confidential Information belonging to DiaTex, to the extent such disclosure is reasonably necessary in the following instances, but solely for the limited purpose of such necessity: 

(a) filing or prosecuting Patents; 

(b) regulatory and tax filings; 

(c) prosecuting or defending litigation; 

(d) complying with applicable governmental laws or regulations or valid court orders; 

(e) conducting preclinical or clinical trials of Products; and 

(f) disclosure to Affiliates, licensees, Sublicensees, potential Sublicensees, employees, consultants, shareholders, potential
shareholders, or agents who agree to be bound by similar terms of confidentiality and non-use at least equivalent in scope to those set forth in this Article 9: 

Notwithstanding the foregoing, in the event a Party is required to make a disclosure of the other Party’s Confidential Information pursuant to
Section 9.3, it will endeavor in good faith to secure confidential treatment of such information. 
 9.4 Terms of the Agreement.
The Parties agree that the terms of the Agreement will be considered Confidential Information of both Parties. Notwithstanding the foregoing, a Party shall have the right to disclose the material financial terms of the Agreement to any bona fide
potential investor, investment banker, acquiror, merger partner or other potential financial partner, subject to such Party obtaining the agreement of such Party to keep such information confidential. 

 

	10.	TERMINATION 

 10.1 Term of Agreement. The term of this Agreement
shall expire, unless earlier terminated as provided by Sections 10.2 or 10.3 below, on the expiration of the last to expire DiaTex Patent, Enantiomer Patent, or if later, the expiration of all payment obligations hereunder. Upon such expiration,
Metabolex shall retain a nonexclusive, worldwide, fully paid-up license under the DiaTex Technology to make, have made, use, import, offer for sale and sell Licensed Compounds and Products. 

10.2 Termination for Material Breach. If a Party materially breaches this Agreement, and within [*] days of written notice of breach
from the non-breaching Party the breaching Party has not (i) cured the breach, or (ii) initiated good faith efforts to cure such breach to the reasonable satisfaction of the non-breaching Party, then the non-breaching Party may terminate
this Agreement in writing promptly after expiration of such [*] day period. 
 10.3 Termination by Metabolex. Metabolex shall
have the right to terminate, upon [*] days prior written notice, the Program and the Agreement at any time that Metabolex determines that it no longer is interested in pursuing the Program. 

 
 [*] = Certain confidential information contained in this document, marked by
brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 12. 

 10.4 Effect of Termination. Upon termination or expiration of the Agreement, (i) all
licenses granted by DiaTex to Metabolex under Article 2 will terminate; (ii) any and all claims and payment obligations that accrued prior to the date of such termination or expiration shall survive such termination and (iii) each Party
shall return all of the other Party’s Confidential Information. 
 10.5 Surviving Rights. The obligations and rights of
the Parties under Section 3.5, 6.4, 7.1 and 11.6 and Article 10 shall survive termination or expiration of the Agreement. 

10.6 Accrued Rights and Surviving Obligations. The termination or expiration of the Agreement for any reason shall be without prejudice
to any rights which shall have accrued to the benefit of either Party prior to such termination or expiration, including any damages arising from any breach hereunder. Such termination or expiration shall not relieve either Party from obligations
which are expressly indicated to survive termination or expiration of the Agreement. 
 10.7 Bankruptcy Rights. In the event
that this Agreement is terminated or rejected by DiaTex or its receiver or trustee under applicable bankruptcy laws due to DiaTex’s bankruptcy, then all rights and licenses granted under or pursuant to this Agreement by DiaTex to Metabolex are,
and shall otherwise be deemed to be, for purposes of Section 365(n) of the Bankruptcy Code and any similar law or regulation in any other country, licenses of rights to “intellectual property” as defined under Section 101(52) of
the Bankruptcy Code. The Parties agree that all intellectual property rights licensed hereunder, including without limitation any patents or patent applications in any country of DiaTex covered by the license grants under this Agreement, are part of
the “intellectual property” as defined under Section 101(52) of the Bankruptcy Code subject to the protections afforded Metabolex under Section 365(n) of the Bankruptcy Code, and any similar law or regulation in any other
country. 
  

	11.	MISCELLANEOUS 

 11.1 Waiver. No waiver by either Party hereto of
any breach or default of any of the covenants or agreements herein set forth shall be deemed a waiver as to any subsequent or similar breach or default. 

11.2 Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their permitted
successors and assigns; provided, however, that neither Party shall assign any of its rights and obligations hereunder without the prior written consent of the other Party, except as incident to the merger, consolidation, reorganization or
acquisition of stock or assets affecting substantially all of the assets or actual voting control of the assigning Party. Any assignment or attempted assignment by either Party in violation of the terms of this Section 11.2 shall be null and
void and of no legal effect. 
  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 13. 

 11.3 Notices. Any notice or other communication required or permitted to be given to
either Party hereto shall be in writing and shall be deemed to have been properly given and to be effective on the date of delivery if delivered in person or by facsimile or five (5) days after mailing by registered or certified mail, postage
paid, to the other Party at the following address: 
  

					
		 	In the case of Metabolex:	  	Metabolex, Inc.
		 		  	3876 Bay Center Place
		 		  	Hayward, CA 94545-3619
		 		  	Fax: (510) 293-9090
		 		  	Attention: President
			
		 	with a copy to:	  	Cooley Godward LLP
		 		  	Five Palo Alto Square
		 		  	Palo Alto, CA 94306
		 		  	Fax: (415) 857-0663
		 		  	Attention: Barclay James Kamb, Esq.
			
		 	In the case of DiaTex:	  	DiaTex, Inc.
		 		  	105 Elm Spring Lane
		 		  	San Antonio, TX 78231
		 		  	Fax: 210-493-7063
		 		  	Attn: Dr. Samuel Friedberg, President

 Either Party may change its address for communications by a notice to the other Party in accordance with this Section. 

11.4 Headings. The headings of the several sections are inserted for convenience of reference only and are not intended to be a part of
or to affect the meaning or interpretation of this Agreement. 
 11.5 Amendment. No amendment or modification hereof shall be
valid or binding upon the Parties unless made in writing and signed by both Parties. 
 11.6 Governing Law. This Agreement
shall be governed exclusively by the laws of the State of California, U.S.A., excluding any choice of law rules which may direct the application of the law of any other jurisdiction. 

11.7 Force Majeure. Any delays in performance by any Party under this Agreement shall not be considered a breach of this Agreement if
and to the extent caused by occurrences beyond the reasonable control of the Party affected, including but not limited to acts of God, embargoes, governmental restrictions, fire, flood, explosion, riots, wars, civil disorder, rebellion or sabotage.
The Party suffering such occurrence shall immediately notify the other Party as soon as practicable, and any time for performance hereunder shall be extended by the actual time of delay caused by the occurrence. 

11.8 Dispute Resolution. In the event of any controversy or claim arising out of, relating to or in connection with any provision of
this Agreement, or the rights or obligations of the Parties hereunder, the Parties shall try to settle their differences amicably between themselves by referring the disputed matter to the President of Metabolex and the President of DiaTex for
discussion and resolution. Either Party may initiate such informal dispute resolution by sending written notice of the dispute to the other Party, and within [*] days of such notice the President of Metabolex and the President of DiaTex shall meet
for attempted resolution by good faith  
  
 [*] = Certain confidential
information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 14. 

 
negotiations. If such designated officers of the Parties are unable to resolve such dispute after [*] days of commencing such good faith negotiations, then the dispute will be resolved, if
requested by a Party, by binding arbitration under the Commercial Arbitration Rules of the American Arbitration Association. Such arbitration shall be initiated by notice from one Party to the other in accordance with this Section 11.8, and
shall be conducted in Denver, Colorado before a panel of three arbitrators. 
 11.9 Independent Contractors. In making and performing
this Agreement, Metabolex and DiaTex act and shall act at all times as independent contractors and nothing contained in this Agreement shall be construed or implied to create an agency, partnership or employer and employee relationship between
Metabolex and DiaTex. At no time shall one Party make commitments or incur any charges or expenses for or in the name of the other Party. 

11.10 Severability. If any part of this Agreement is declared invalid by any legally governing authority having jurisdiction over
either Party, then such declaration shall not affect the remainder of the Agreement and the Parties shall revise the invalidated part in a manner that will render such provision valid without impairing the Parties’ original interest.

 11.11 Cumulative Rights. The rights, powers and remedies hereunder shall be in addition to, and not in limitation of, all
rights, powers and remedies provided at law or in equity, or under any other agreement between the Parties. All of such rights, powers and remedies shall be cumulative, and may be exercised successively or cumulatively. 

11.12 Entire Agreement. This Agreement and any and all Exhibits referred to herein embody the entire understanding of the Parties with
respect to the subject matter hereof and supersedes and terminates all previous communications, representations or understandings, either oral or written, between the Parties relating to the subject matter hereof. 

[THIS SPACE INTENTIONALLY LEFT BLANK.] 

 
 [*] = Certain confidential information contained in this document, marked by
brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 15. 

 11.13 Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be an original and all of which shall constitute together the same document. 
 IN
WITNESS WHEREOF, both Metabolex and DiaTex have executed this Agreement, as of the day and year first written above. 
  

									
	METABOLEX, INC.	 		 	DIATEX, INC.
					
	By:	 	/s/ David W. Pritchard	 		 	By:	 	/s/ Samuel J. Friedberg
	Name:	 	David W. Pritchard	 		 	Name:	 	Samuel J. Friedberg
	Title:	 	Vice President Business Development and Finance	 		 	Title:	 	President

  
 [*] = Certain confidential information contained in
this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 16. 

 EXHIBIT A 

DIATEX PRINCIPALS 

[*] 
  

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 1. 

 EXHIBIT B 

STRUCTURE OF HALOFENATE 

[*] 
 1169009 v6/HN 

 
 [*] = Certain confidential information contained in this document, marked by
brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 1.EX-10.17

 Exhibit 10.17 

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 
 FIRST AMENDMENT 

This First Amendment (the “First Amendment”), dated April 15, 1999, (“Effective Date of this First Amendment”)
entered by and between Metabolex, Inc., a Delaware corporation with a place of business at 3876 Bay Center Place, Hayward, CA 94545 (“Metabolex”), and DiaTex, Inc., a Texas corporation with a place of business at 105 Elm Spring Lane, San
Antonio, TX 78231 (“DiaTex”) amends the License and Development Agreement by and between the same Parties, dated June 30, 1998 (the “Agreement”). Metabolex and DiaTex may be referred to herein as a “Party” or,
collectively, as “Parties.” 
 RECITALS 

WHEREAS, The Parties having entered into an Agreement, the scope of which covers developing pharmaceutical products
containing the chemical structure of Halofenate, its enantiomers, analogues or derivatives (“Licensed Compounds”), for the purpose of treating diabetes and related conditions; and 

WHEREAS, DiaTex is now the registered holder of an IND (as defined in Section 1.11 of the Agreement) application
No. 13,836 (the “Original IND”), filed with the FDA (as defined in Section 1.9 of the Agreement) under which the clinical development of the Licensed Compounds and/or the Halofenate Racemate (as defined in Section 1.21 of
the Agreement) are permitted to take place; and 
 WHEREAS, DiaTex wishes to transfer ownership and all of its rights,
privileges and obligations of ownership of the Original IND over to Metabolex and Metabolex wishes to accept such ownership rights, as well as privileges and responsibilities attendant to owning the Original IND. 

NOW THEREFORE, in consideration of the foregoing and the covenants and mutual promises, the Parties hereby
agree to amending the Agreement as follows: 
  

	1.	Add a definition for: 

 Original IND—means the
Investigational New Drug application that DiaTex filed with the F.D.A. in accordance with 21 C.F.R. §312.3, as supplemented and current as of the Effective Date of this Amendment. 

 

	2.	Section 3.2(a) of the Agreement shall be replaced with the following: 

Document Transfer. For good and valuable consideration, the sufficiency of which is hereby acknowledged, DiaTex hereby
completely transfers and outright assigns to Metabolex, its legal representatives, successors and assigns, DiaTex’ interests, right and title in and to the Original IND. Promptly after executing this First Amendment, DiaTex shall transfer to
Metabolex any and all documents or materials in its possession relevant and necessary for maintaining the Original IND. DiaTex shall undertake whatever actions, communications and measures required to properly affect such transfer, and
acknowledgment of the same, with the FDA and any other agency regulating the conduct of development under the Original IND. 

  
 1. 

	3.	Add a new Section 16 as follows: 

 [*]. In the event that the
Program (as defined in Section 3.1 of the Agreement) [*] of the Agreement, Metabolex shall [*] of the Agreement, its [*], to the extent there are any, [*] DiaTex. Metabolex agrees to [*] on the Effective Date of this Amendment from DiaTex, but
may also [*]. At this time, DiaTex is free to use [*] on the Effective Date of this Amendment and to use [*]. However, the Parties recognize that the Original IND at this time may contain [*]. Subject to Section 3.5 of the Agreement, in the
event that Metabolex [*] information, data and/or materials (including racemate and enantiomers) that [*] as provided under the Agreement, then DiaTex shall have [*]. In the event that DiaTex [*], but [*], then Metabolex shall [*], but would [*] of
the Agreement. If Metabolex has [*] its [*] of this Section 3.6, then Metabolex shall [*]. 
  

	4.	Add a new Section 8.2 (d)(i)-(iv) as follows: 

 8 .2(d)(i): 

Indemnification by Metabolex. Metabolex shall indemnify, protect, and hold harmless DiaTex, its Affiliates, its and
their respective directors, officers, employees, and agents (“DiaTex Indemnitees”) against any and all losses, claims, damages, liabilities, costs and expenses (including reasonable attorneys fees and expenses and court costs)
(collectively, “Losses”) resulting or arising from any third party claims, actions, proceedings, investigations or litigation relating to or arising from or in connection with its negligent or wrongful conduct of clinical trials from the
Effective Date of this Amendment. Such indemnification rights shall abide only from such time and for so long as Metabolex owns or is transferred rights to conduct clinical trials under the Original IND in accordance with the transfer affected by
this First Amendment. Notwithstanding the foregoing, Metabolex shall not be required to indemnify DiaTex for any Losses to the extent they arise from the negligent or wrongful acts or omissions of DiaTex or any of the DiaTex Indemnitees or
DiaTex’s breach of its obligations to any third party or under this Agreement. 
 8 .2 (d)(ii): 

Indemnification by DiaTex. DiaTex shall indemnify, protect, and hold harmless Metabolex, its Affiliates, and its and
their respective directors, officers, employees, and agents (the “Metabolex Indemnitees”) against any and all Losses resulting or arising from any third party claims, actions, proceedings, investigations or litigation relating to or
arising from or in connection with: (i) any rights under the Original IND not otherwise subject to indemnification under Section 8.2(d)(i) above, as relate to the time when such claim arises; (ii) the negligent or wrongful acts or
omissions of DiaTex or any of its directors, officers, employees or agents in connection with the Original IND; or (iii) the wrongful acts, representations or misrepresentations by DiaTex relating to the Agreement or transfer of rights under
this First Amendment. Notwithstanding the foregoing, DiaTex shall not be required to indemnify Metabolex for any Losses to the extent they arise from the negligent or wrongful acts or omissions of Metabolex or Metabolex Indemnitees. 

 
 [*] = Certain confidential information contained in this document, marked by
brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 2. 

 8 .2(d)(iii): 

Procedure. The Party seeking indemnification hereunder (the “Indemnified Party”) shall (a) promptly
notify the Party obligated to indemnify (the “Indemnifying Party”) of any Losses for which the Indemnified Party seeks indemnification; (b) cooperate fully with Indemnifying Party and its legal representatives in the investigation of
any matter the subject of indemnification; (c) permit the Indemnifying party full control over the defense and settlement of any matter the subject to indemnification; and (d) shall not unreasonably withhold its approval of the settlement
of any claim, liability or action by Indemnifying Party covered by this indemnification provision. 
 8 .2(d)(iv): 

No Consequential Damages. Notwithstanding the Parties’ rights and remedies in equity and except with respect to
indemnification obligations described hereunder, neither Party, nor its Indemnitees shall have any liability to the other for any special, incidental, indirect or consequential damages, including, but not limited to the loss of opportunity, use,
revenue or profit, in connection with or arising out of this Agreement, or the services performed by Metabolex hereunder, even if such damages were foreseeable. 
  

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 3. 

 To the extent there are conflicting terms between this First Amendment and the Agreement, the
Terms of this First Amendment shall supersede the Agreement. All other terms and conditions of the Agreement shall abide this First Amendment. 

THIS FIRST AMENDMENT has been executed by the Parties as of the Effective
Date of this Amendment. 
  

									
	METABOLEX, INC.	 		 	DIATEX, INC.
					
	By:	 	/s/ David W. Pritchard	 		 	By:	 	/s/ Samuel Friedberg
		 	      David W. Pritchard	 		 		 	      Dr. Samuel Friedberg
	Title:	 	      Vice President, Business Development and Finance	 		 	Title:	 	      President

 1169011 v3/HN 
  

[*] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 

  
 4.

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