Document:

Exhibit 10.1

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Executive Employment
Agreement (the “Agreement”), dated as of October 11, 2022, made between Pasithea Therapeutics Corp., (the “Company”)
and Daniel Schneiderman (the “Executive”) (collectively, the “Parties”).

 

Whereas,
the Company desires for Executive to provide services to the Company, and wishes to provide Executive with certain compensation and benefits
in return for such employment services; and

 

Whereas,
Executive wishes to be employed by the Company and to provide personal services to the Company in return for certain compensation and
benefits;

 

Now,
Therefore, in consideration of the mutual promises and covenants contained herein and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:

 

 1. Employment by the Company.

 

1.1   Position.
Executive shall serve as the Company’s Chief Financial Officer and report to the Company’s Chief Executive Officer. Executive’s
employment with the Company shall begin October 11, 2022 (the “Start
Date”). During Executive’s employment with the Company, Executive will devote Executive’s best efforts and substantially
all of Executive’s business time and attention to the business of the Company, except for approved vacation periods and reasonable
periods of illness or other incapacities permitted by the Company’s general employment policies. Executive
may engage in civic and not-for-profit activities and serve as a board member on board of directors of publicly traded companies, in each
case, so long as such activities do not materially interfere with the performance of Executive’s duties hereunder. 

 

1.2   Duties
and Location. Executive shall perform such duties consistent with his title. Executive shall report to the board of directors. Executive’s
initial primary office location shall be the Executive’s home office located in New York, NY. The Company reserves the right to
reasonably require Executive to perform Executive’s duties at places other than Executive’s primary office location from time
to time, and to require reasonable business travel.

 

1.3   Policies
and Procedures. The employment relationship between the Parties shall be governed by the general employment policies and practices
of the Company, except that when the terms of this Agreement differ from or are in conflict with the Company’s general employment
policies or practices, this Agreement shall control.

 

 2. Compensation.

 

2.1   Salary.
For services to be rendered hereunder, Executive shall receive a base salary at the rate of $330,000 per
year (the “Base Salary”), subject to standard payroll deductions and withholdings and payable in accordance with the
Company’s regular payroll schedule. Executive’s base salary may be reviewed and changed by the Company on notice to the Executive.

 

2.2   Sign-on
Bonus. Executive will be paid a sign-on bonus of $30,000 (the “Sign-on
Bonus”) payable within fifteen (15) days of the Start Date. 

 

2.3   Annual
Bonus. Executive will be eligible for an annual discretionary bonus
of up to thirty-five percent (35%) of Executive’s Base Salary actually received in any such year (the “Annual Bonus”),
which will be based on a calendar year basis, unless otherwise determined by the Company (the “Bonus Period”). Whether
Executive receives an Annual Bonus for any Bonus Period, and the amount of any such Annual Bonus, will be determined by the Company’s
compensation committee thereof in its sole discretion based upon the Company’s and Executive’s achievement of objectives and
milestones to be determined on an annual basis by the Board. Executive must remain an active employee in good standing through the end
of any given calendar year, and be an active employee in good standing at the time the Annual Bonus is paid in order to earn an Annual
Bonus for the prior Bonus Period. The Annual Bonus will be paid prior to March 15 of the year following the Bonus Period. For the avoidance
of doubt, Executive will not be eligible for, and will not earn, any Annual Bonus if Executive’s employment terminates for any reason
before the end of the Bonus Period or before the Annual Bonus is to be paid. For the sake of clarity, any bonus paid for any year shall
not create any entitlement to a bonus in a future year.

 

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3.  Company
Benefits. Executive shall be eligible to participate in all employee benefit programs for which Executive
is eligible under the terms and conditions of the benefit plans that may be in effect from time to time and provided by the Company to
its employees. The Company reserves the right to cancel or change the benefit plans or programs it offers to its employees at any time.
In addition, the Company provides an annual vacation entitlement of 21 days, calculated on a monthly basis. In addition to this annual
vacation accrual, Company grants 7 days of sick leave and standard paid holidays as announced each year. Vacation days and sick leave
are governed by the Company’s policies which may change from time to time.

 

a.   Medical
Insurance Benefits. During the Employment Term, the Company shall pay for and make available medical and dental insurance coverage
for Executive and his immediate family. Such benefits may be changed at the Company’s discretion from time to time provided that
Executive shall be eligible for whatever medical and dental insurance is offered by the Company during the Employment Term.

 

b. Expense Reimbursement
and Other Benefits. The Company promptly shall pay, or reimburse the Executive for, all ordinary and necessary business expenses
incurred in the performance of his duties hereunder including, but not limited to, mobile phone, business class air travel, expenses
and dues associated with Executive’s involvement with professional, industry, community, civic and charitable organizations, provided
that the Executive properly accounts for all such expenses in accordance with Company policy.

 

4.    Equity.
As additional compensation for the services to be rendered hereunder, the Company shall grant the Executive
incentive stock options (the “Options”) issuable
under its 2021 Stock Incentive Plan (the “Amended Plan”) to
purchase 300,000 shares of the Company’s common stock, par value $0.0001 (the “Common Stock”)
at a strike price per share equal to the then fair market value of a share of Common Stock on the date the Options are issued. The Options
shall vest in accordance with the terms set forth in the stock option grant agreement executed between the Company and the Executive (the
“Option Agreement”),
subject to Executive’s continuing employment with the Company. The Options shall be subject to the then-current terms and conditions
of the Amended Plan and Option Agreement. No right to any shares of Common Stock is earned or accrued until such time that vesting occurs,
nor does the grant of the Options confer any right to continue vesting or employment. 

 

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 5. Termination of Employment; Severance.

 

5.1   At-Will
Employment. Executive’s employment relationship is at-will. Either Executive or the Company may terminate Executive’s
employment relationship at any time, with or without cause or advance notice. Executive shall, however, provide no less than sixty (60)
days’ advance written notice of any termination (the “Notice Period”). During the Notice Period, Executive shall
remain an employee of the Company, and shall continue to receive base salary, but no other compensation. The Company may elect to have
Executive not report to work for all or any portion of such Notice Period. The Company shall have the right, at its sole discretion, to
accelerate Executive’s termination date to any date subsequent to receiving written notice from Executive, and thus conclude the
Notice Period.

 

5.2   Termination
Without Cause.

 

a.   
The Company may terminate Executive’s employment with the Company at any time without Cause (as defined below).

 

b.   In
the event that the Executive is terminated by the Company without Cause, the Company shall pay Executive, as severance, the equivalent
of six (6) months of Executive’s Base Salary in effect as of the date of Executive’s employment termination, subject to standard
payroll deductions and withholdings (the “Severance”). The Severance will be paid as a continuation on the Company’s
regular payroll, beginning no later than the first regularly scheduled payroll date following the sixtieth (60th) day after Executive’s
Separation from Service, provided the Separation Agreement (as discussed in Paragraph 6) has become effective. Additionally, in the event
that the Executive is terminated by the Company without Cause, the vesting of all outstanding stock options held by Executive shall be
accelerated and fully vested effective as of the date of Executive’s employment termination.

 

c.   For
purposes of this Agreement, “Cause” for termination will mean: (a) commission of any felony or crime involving dishonesty
or moral turpitude (whether or not a felony); (b) any action by Executive involving fraud, breach of the duty of loyalty, malfeasance,
willful misconduct, or negligence, (ii) the failure or refusal by Executive u to perform any material duties hereunder or to follow any
lawful and reasonable direction of the Company; (c) intentional damage to any property of the Company; (d) chronic neglect or absenteeism
in the performance of Executive’s duties; (e) willful misconduct, or other material violation of Company policy or code of conduct
that causes an adverse effect upon the Company; (f) breach of any written agreement with the Company (including this Employment Agreement
and Exhibit A); or (g) any action that in the reasonable belief of the Company shall or potentially shall subject the Company to negative
adverse publicity or effects.

 

5.3   Termination
for Any Other Reason.

 

a.   Upon
a termination for any reason other than as provided in Section 5.2(a) without Cause, then upon Executive’s termination date, then
all payments of compensation by the Company to Executive hereunder will terminate immediately (except as to amounts already earned), and
Executive will not be entitled to any Severance Benefits.

 

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b.   
The Option shall be treated as expressly provided in the Plan and the Option Agreement.

 

c.   In
the event of termination for any reason, Executive shall resign from all positions and terminate any relationships as an employee, advisor,
officer or director with the Company and any of its affiliates, each effective on the date of termination.

 

6. Conditions
to Receipt of Severance Benefits. In order to receive
any Severance Benefits, the termination of Executive’s employment must constitute a “separation from service” (as
defined under Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a
“Separation from Service”),
and Executive must be in compliance with the terms of this Agreement and the Confidentiality Agreement (as defined below). Further,
the receipt of the Severance Benefits will be conditioned on Executive signing and not revoking a separation agreement and release
of claims in a form reasonably satisfactory to the Company (the “Separation Agreement”).
No Severance Benefits will be paid or provided until and unless the Separation Agreement becomes effective.

 

7. Representations.
Executive represents and warrants that the execution of this Employment Agreement, Executive’s employment by the Company, and
the performance of Executive’s duties hereunder will not violate or be a breach of any agreement with a former employer,
client or any other person or entity, nor does Executive know of any other reason why he would not be able to perform his duties as
set forth herein. Further, Executive agree to indemnify the Company for, and hold the Company harmless from, and against, all
claims, including, but not limited to, attorneys’ fees and expenses of investigation, by any such third party that such third
party may now have or may hereafter come to have against the Company based upon or arising out of any noncompetition agreement,
invention or secrecy agreement between Executive and such third party which was in existence as of the date of this Agreement. The
Company reserves the right to rescind this offer immediately and, if applicable, terminate Executive’s employment, without any
further obligation to Executive if before or during Executive’s employment the Company learns that Executive provided false
information or made any misrepresentations in connection with Executive’s application for employment with the
Company.

 

8. Section
409A. It is intended that all of the Severance Benefits and other payments payable under this
Agreement satisfy, to the greatest extent possible, the exemptions from the application of Code Section 409A provided under Treasury
Regulations 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9), and this Agreement will be construed to the greatest extent possible
as consistent with those provisions, and to the extent not so exempt, this Agreement (and any definitions hereunder) will be
construed in a manner that complies with Section 409A. For purposes of Code Section 409A (including, without limitation, for
purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), Executive’s right to receive any installment payments under this
Agreement (whether severance payments, reimbursements or otherwise) shall be treated as a right to receive a series of separate
payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment.
Notwithstanding any provision to the contrary in this Agreement, if Executive is deemed by the Company at the time of
Executive’s Separation from Service to be a “specified employee” for purposes of Code Section 409A(a)(2)(B)(i),
and if any of the payments upon Separation from Service set forth herein and/or under any other agreement with the Company are
deemed to be “deferred compensation,” then to the extent delayed commencement of any portion of such payments is
required in order to avoid a prohibited distribution under Code Section 409A(a)(2)(B)(i) and the related adverse taxation under
Section 409A, such payments shall not be provided to Executive prior to the earliest of (i) the expiration of the six-month period
measured from the date of Executive’s Separation from Service with the Company, (ii) the date of Executive’s death or
(iii) such earlier date as permitted under Section 409A without the imposition of adverse taxation. Upon the first business day
following the expiration of such applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this Paragraph
shall be paid in a lump sum to Executive, and any remaining payments due shall be paid as otherwise provided herein or in the
applicable agreement. No interest shall be due on any amounts so deferred.

 

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9. Proprietary
Information Obligations. As a condition of employment, Executive shall execute and abide by the
Company’s standard form of Employee Nondisclosure, Confidential Information, and Non-solicitation Agreement attached to this
Agreement as Exhibit A (the “Confidentiality Agreement”). In
Executive’s work for the Company, Executive will be expected not to use or disclose any confidential information, including
trade secrets, of any former employer or other person to whom Executive has an obligation of confidentiality. Rather, Executive will
be expected to use only that information which is generally known and used by persons with training and experience comparable to
Executive’s own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise
provided or developed by the Company. Executive agrees not to bring onto Company premises any unpublished documents or property
belonging to any former employer or other person to whom Executive has an obligation of confidentiality.

 

10. Governing
Law; Dispute Resolution. The interpretation and application of this Employment shall be governed
by the laws of the State of New York without regard to principles of conflict of laws, other than laws which violate a fundamental
public policy of the state of employ, in which case such state’s laws shall govern with regard to such policies. Except for
claims under Exhibit A requesting injunctive relief, any dispute or claim arising out of, in connection with, or relating to this
Agreement (including without limitation its subject matter, interpretation, or formation) or to your employment or relationship with
the Company shall be resolved by binding arbitration to be held in New York, New York, before three (3) arbitrators selected by the
American Arbitration Association, conducted in accordance with the then-prevailing Employment Arbitration Rules and Mediation
Procedures of the American Arbitration Association. A copy of these rules can be accessed through the American Arbitration
Association’s website (www.adr.org). The prevailing party shall be entitled to the payment of its reasonable attorney’s
fees and costs. The arbitrators’ decision will be final and binding in accordance with the Federal Arbitration Act and may be
enforced in any court of competent jurisdiction. The arbitrators will not have the right to modify or change any of the terms of
this Employment Agreement. The arbitrators, and not any court, shall have exclusive authority to resolve any dispute relating to the
interpretation, applicability, enforceability or formation of this Employment Agreement including any claim that all or any part of
this Agreement is void or voidable. The parties agree that the arbitrators may provide all appropriate remedies at law and equity
and will have the power to summarily adjudicate claims and/or enter summary judgment in appropriate cases. In any arbitration
proceeding conducted pursuant to this paragraph, the parties shall have the right to discovery, to call witnesses, and to
cross-examine the other party’s witnesses. The arbitrator shall render a final decision in writing, setting forth the reasons
for the arbitration award. Both parties are bound by this agreement to arbitrate, but it does not include disputes, controversies or
differences which may not by law be arbitrated. The parties agree that the arbitration proceedings described in this Section are to
be treated as confidential, and that the parties will act to protect the confidentiality of the documents, facts, and proceedings
related to the arbitration. The parties waive their right to have any such dispute, claim or controversy decided by a judge or jury
in a court. The parties also agree that each may bring claims against the other only in their individual capacities, and not as a
plaintiff or class member in any purported class or collective proceeding. The parties also agree that each may not bring claims
against the other in any purported representative action, except to the extent this statement is unenforceable under the
law.

 

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11. General
Provisions.

 

11.1   Notices.
Any notices provided must be in writing and will be deemed effective upon the earlier of personal delivery, email, or the next day after
sending by overnight carrier, to the Company at its primary office location and to Executive at the address as listed on the Company payroll.

 

11.2   Severability.
Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule
in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but
this Agreement will be reformed, construed and enforced in such jurisdiction to the extent possible in keeping with the intent of the
parties.

 

11.3   Waiver.
Any waiver of any breach of any provisions of this Agreement must be in writing to be effective, and it shall not thereby be deemed to
have waived any preceding or succeeding breach of the same or any other provision of this Agreement.

 

11.4   Complete
Agreement. This Agreement, together with Exhibit A, constitutes the
entire agreement between Executive and the Company with regard to this subject matter and is the complete, final, and exclusive embodiment
of the Parties’ agreement with regard to this subject matter. This Agreement is entered into without reliance on any promise or
representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties or
representations. It is entered into without reliance on any promise or representation other than those expressly contained herein, and
it cannot be modified or amended except in a writing signed by a duly authorized officer of the Company.

 

11.5   Counterparts.
This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one party, but all
of which taken together will constitute one and the same Agreement.

 

11.6   Headings.
The headings of the paragraphs hereof are inserted for convenience only and shall not be deemed to constitute a part hereof nor to affect
the meaning thereof.

 

11.7   Successors
and Assigns. This Agreement is intended to bind and inure to the benefit
of and be enforceable by Executive and the Company, and their respective successors, assigns, heirs, executors and administrators. The
Company may freely assign this Agreement, without Executive’s prior written consent. Executive may not assign any of his duties
hereunder and he may not assign any of his rights hereunder without the written consent of the Company.

 

11.8   Background
Check and Ability to Work. This offer of employment is contingent upon verification
of Executive’s identity and authorization to legally work in the United States, a background and reference check, and all other
Company practices and procedures as reasonably requested by the Company.

 

11.9 Tax
Withholding. All payments and awards contemplated or made
pursuant to this Agreement will be subject to withholdings of applicable taxes in compliance with all relevant laws and regulations
of all appropriate government authorities. Executive acknowledges and agrees that the Company has neither made any assurances nor
any guarantees concerning the tax treatment of any payments or awards contemplated by or made pursuant to this Agreement. Executive
has had the opportunity to retain a tax and financial advisor and fully understands the tax and economic consequences of all
payments and awards made pursuant to the Agreement.

 

***

 

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You
acknowledge and agree that you have read and understand this Employment agreement and you voluntarily agree to the terms and conditions
contained herein.

 

We
look forward to you joining the Company. If you accept this offer of employment, please sign and return to me this Employment Agreement
and the Exhibit A attached.

 

In
Witness Whereof, the Parties have executed this Agreement on the day and year first written above.

 

	 	Pasithea Therapeutics Corp. 
	 	 	 
	 	By:	/s/ Tiago
    Reis Marques
	 	Name:  	Tiago Reis Marques
	 	Title:	Chief Executive Officer 
	 	 	 
	 	Executive 
	 	 	 
	 	By:	/s/ Daniel
    Schneiderman
	 	Name: 	Daniel Schneiderman

 

Exhibit A: Employee Nondisclosure,
Confidential Information and Non-solicitation Agreement

 

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Exhibit A

 

NON-DISCLOSURE, CONFIDENTIAL INFORMATION, 

AND NON-SOLICITATION AGREEMENT

 

This Non-Disclosure, Confidential
Information, and Non-Solicitation Agreement (the “Agreement”) is a legal agreement between you (the “Employee”)
and Pasithea Therapeutics Corp., and its affiliates and subsidiaries (collectively, the “Company”). Please read it
carefully. By accepting the Company’s offer of employment and/or by continuing your employment with the Company, you will be expressly
affirming that you acknowledge, understand, accept, and agree to be bound by this Agreement.

 

RECITALS

 

A. The Employee has received
an offer of employment from the Company and/or is currently working for the Company.

 

B. As an Employee of the Company,
the Employee will become exposed to Confidential Information (as defined below) of the Company and clients of the Company, and the Company
has a legitimate, business interest in preventing unauthorized use or transfer of such Confidential Information. Employee acknowledges
that maintaining complete privacy and avoiding disclosure of Confidential Information is critically important to the Company and its clients.

 

C. The Employee is required,
as a condition of his or her employment and continued employment, to sign this Agreement.

 

D. The Employee desires to enter
into this Agreement in order to satisfy such condition.

 

E. The consideration for the
Employee’s entering into this Agreement consists of the offer of employment with the Company; continued employment with the Company;
and the compensation, benefits, and opportunities that the Employee will receive by virtue of such employment and/or continued employment.

 

NOW, THEREFORE, the parties
hereby agree as follows:

 

 1. Consideration For Agreement.

 

The Employee acknowledges and
agrees that the execution of this Agreement is a condition precedent to his or her employment and/or continued employment with the Company.

 

 2. Restrictive Covenants: Clients.

 

The Employee acknowledges and
agrees that solely by reason of employment by the Company, the Employee has and will come into contact with a significant number of the
Company’s customers and prospective customers and have access to Confidential Information (as defined below) and trade secrets relating
thereto, including those regarding the Company’s clients, prospective clients, proprietary business models and strategies, and related
information.

 

Consequently, the Employee covenants
and agrees that he or she will not, for a period of six (6) months following the end of his or her employment with the Company for any
reason, whether voluntary or involuntary (the “Restricted Period”), directly or indirectly: (i) initiate contact with,
or respond to inquiries from, customers the Company for the purpose of providing products or services of the type provided by the Employee
while employed by the Company; (ii) encourage investors, clients or prospective investors or clients of the Company to terminate, cancel,
not renew, or not place business with the Company, or to place business with another company which is similar to the business of the Company;
or (iii) perform or supervise the performance of services or provision of products of the type sold or provided by the Employee while
he or she was employed by the Company on behalf of any customers or prospective customers of the Company. These restrictions shall apply
only to those customers of the Company with which the Employee had contact or about which the Employee obtained or had access to Confidential
Information or trade secrets during the last two (2) years of his or her employment with the Company. For the purposes of this Section
2, the term “contact” means interaction between the Employee and the customer which takes place to further the business relationship,
or making (or assisting or supervising the making of) sales to or performing or providing (or assisting or supervising the performance
or provision of) services or products for the customer on behalf of the Company. For purposes of this Section 2, the term “contact”
with respect to a “prospective” customer means interaction between the Employee and a potential customer of the Company which
takes place to obtain the business of the customer on behalf of the Company.

 

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 3. Restrictive Covenants: Employees.

 

The Employee acknowledges and
agrees that solely as a result of employment with the Company, and in light of the broad responsibilities of such employment which include
working with other employees of the Company, the Employee has and will come into contact with and acquire Confidential Information and
trade secrets regarding the Company’s other employees and its principals. Accordingly, the Employee covenants and agrees that both
during his or her employment with the Company and during the Restricted Period, the Employee will not, either on the Employee’s
own account or on behalf of any person, company, corporation, or other entity, directly or indirectly, (a) solicit, hire, encourage, or
assist others to solicit or to hire any individual who worked for the Company during the last two (2) years of Employee’s employment
with the Company; or (b) encourage any such individuals to terminate their employment or other working relationship with the Company,
or to breach their obligations to the Company.

 

 4. Restrictive Covenants: Confidentiality And Non-Disparagement. 

 

The Employee agrees that he
or she will not, during his or her employment with the Company or at any time after such employment ends for any reason (whether voluntary
or involuntary), use for his or her own or another’s purposes, or disclose to any other person or entity (other than in the proper
course of employment with the Company) any Confidential Information. This Section 4(a) shall not apply to any part of such Confidential
Information that comes into the public domain otherwise than by reason of an unauthorized disclosure, or that is disclosed to the Employee
on a non-confidential basis by a third party who is not bound by a duty of confidentiality. “Confidential Information”
shall be given its broadest possible interpretation and shall mean any and all information of the Company, its affiliates, subsidiaries,
and parents (collectively, “Company Entities”), including without limitation: (i) financial and business information
relating to any Company Entity, such as information with respect to costs, fees, profits, revenues, markets, mailing/client lists, strategies
and plans for future business, new business, product or other development, potential acquisitions or divestitures and new marketing ideas;
(ii) product and technical information relating to any Company Entity, such as software, software codes, computer models and research
and development projects; (iii) customer or investor information, such as the identity of any Company Entity’s clients or investors,
the names of representatives of Company Entity customer or investors responsible for entering into contracts with a Company Entity, the
amounts paid by such investors or customers to any Company Entity, specific customer or investor needs and requirements, specific customer
or investor risk characteristics, and specific customer or investor preferences; (iv) personnel information, such as the identity and
number of any Company Entity’s other employees and officers, their salaries, bonuses, benefits, skills, qualifications, and abilities;
(v) any and all information in whatever form relating to any customer or prospective customer of a Company Entity, including but not limited
to its business, employees, operations, systems, assets, liabilities, finances, products, and marketing, selling and operating practices;
(vi) any information related to any security system of any Company Entity or any of employees, (vii) any and all information pertaining
to the business and or personal affairs of the Company’s partners, members and employees, including but not limited to their personal
lives, characteristics, opinions, ideas, conduct, habits or background or their business or financial condition, affairs, dealings or
operations or their personal database, personal photographs or videotapes, purchases, travel itineraries, social interactions, tax information,
emails, private conversations, phone calls and correspondence; (viii) any information not included in (i) through (vii), above, which
the Employee knows or should know is subject to a restriction on disclosure or which the Employee knows or should know is considered by
any Company Entity’s clients or prospective clients to be confidential, sensitive, proprietary, or a trade secret or is not readily
available to the public; or (ix) intellectual property, including inventions and copyrightable works. Confidential Information is not
generally known or available to the general public, but has been developed, compiled, or acquired by the Company at its effort and expense.
Confidential Information can be in any form, including but not limited to verbal, written, or machine readable, including electronic files.
By way of example but not limitation of the foregoing, Confidential Information may be acquired by observing documents, things, people
or events, by direct communication with clients or others or by overhearing conversations in person or over the telephone or otherwise.

 

Immediately upon the termination
of employment with the Company for any reason, or at any time the Company so requests, the Employee will return to the Company: (i) any
originals and all copies of all files, notes, documents, slides (including transparencies), computer disks, printouts, reports, lists
of the Company’s clients or leads or referrals to prospective clients, and other media or property in the Employee’s possession
or control that contain or pertain to Confidential Information or trade secrets; and (ii) all property of the Company, including, but
not limited to, supplies, keys, access devices, books, identification cards, computers, telephones and other equipment. The Employee agrees
that upon completion of the obligations set forth in this subparagraph, and if requested by the Company, the Employee will execute a statement
declaring that he or she has retained no property of the Company or materials containing Confidential Information, nor has he or she supplied
the same to any person, except as required to carry out his or her duties as an employee of the Company.

 

The Employee further agrees
that, except as required by law, the Employee will not do or say (or omit to do or say) anything that is intended, or might reasonably
be expected, to harm or disparage the Company Entities, any of its or their clients or prospective clients or any of the Company Entity’s
employees or to impair the reputation of any of the foregoing, or the reputation of any of its services, products, officers, or employees.

 

Employee further agrees that
Employee shall not, on Employee’s own initiative or in response to an inquiry, discuss or disclose, in any medium, any matters affecting
or concerning any Company Entity with a member of the media, unless a duly authorized representative of the affected Company Entity has
provided prior written consent. Any media inquiries regarding either of the aforementioned should be referred immediately to Employee’s
immediate superior.

 

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 5. Inventions

 

Employee hereby assigns
to the Company all of Employee’s right, title and interest in and to, and shall disclose promptly to the Company, any and all work
product, trade secrets, developments, processes, inventions, ideas and discoveries, and works of authorship developed, discovered, improved,
authored, derived, invented or acquired by Employee during the period of Employee’s employment by the Company (collectively, “Work
Product”), whether or not during business hours, that are either related to the scope of Employee’s employment by the
Company or make use, in any manner, of the resources of the Company, and agrees that such Work Product shall be and shall remain the exclusive
property of the Company. Employee further agrees that all Work Product that is made by Employee (solely or jointly with others) within
the scope of and during the period of the Employee’s employment relationships constitutes “works made for hire” (to
the greatest extent permitted by applicable law) and are compensated by Employee’s salary. Employee agrees to execute any documentation
required by the Company to protect its rights hereunder and appoints the Company as attorney-in-fact to execute any documentation to protect
the Company’s rights pursuant to this Agreement should Employee be unwilling or unable to do so, and to further agrees to assist
the Company, or its designee, at its expense, in every proper way to secure the Company’s, or its designee’s, rights in the
Work Product and any copyrights, patents, trademarks, mask work rights, moral rights, or other intellectual property rights relating thereto
in any and all countries, including the disclosure to the Company or its designee of all pertinent information and data with respect thereto,
the execution of all applications, specifications, oaths, assignments, recordations, and all other instruments which the Company or its
designee shall deem necessary in order to apply for, obtain, maintain and transfer such rights, or if not transferable, waive such rights;
provided, however, that Employee and Company understand that Work Product shall not include any invention which qualifies fully under
the provisions of subdivision (a) of California Labor Code Section 2870, other than those stated in subsections (1) and (2) thereof.

 

 6. Employee’s Acknowledgment.

 

The Employee hereby expressly
acknowledges and agrees that (a) the restrictions and obligations set forth in and imposed by Sections 1-5 will not prevent
Employee from obtaining gainful employment in Employee’s field of expertise or cause Employee undue hardship; and (b) the restrictions
and obligations imposed on Employee under Sections 1-5 are necessary to protect the legitimate business interests of the Company including
its Confidential Information, and are reasonable in view of the benefits and consideration Employee has received or will receive from
the Company. Employee agrees to provide a copy of this Agreement to any prospective employer or business partner prior to accepting employment
or entering into any other business relationship with such prospective employer or business partner.

 

7.   Exceptions.

 

Nothing in this provision
is intended to prohibit or prevent you from participating or testifying in any administrative, legislative, or judicial proceeding, concerning
alleged criminal conduct or alleged sexual harassment if requested or required by a court or arbitrator’s order, subpoena, or written
request from and administrative agency or legislature. Nor shall anything herein bar you from reporting or receiving any whistleblower
award under any governing program.

 

Also, under the federal Defend
Trade Secrets Act (DTSA): (1) no individual will be held criminally or civilly liable under federal or state trade secret law for the
disclosure of a trade secret, provided the disclosure: (A) is made in confidence to a federal, state, or local government official, either
directly or indirectly, or to an attorney; and made solely for the purpose of reporting or investigating a suspected violation of law;
or, (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal so that it
is not made public. Additionally, an individual who pursues a lawsuit for retaliation by an employer for reporting a suspected violation
of the law may disclose the trade secret to the individual’s attorney and use the trade secret information in the court or arbitration
proceeding, provided the individual files any document containing the trade secret under seal, and does not disclose the trade secret,
except as permitted by court or arbitrator’s order.

 

 8. Equitable Relief.

 

In recognition of the fact that
irreparable injury will result to the Company in the event of a breach by the Employee of his or her obligations under Section 1-5 of
this Agreement, that monetary damages for such breach would not be readily calculable, and that the Company would not have an adequate
remedy at law therefor, the Employee acknowledges, consents, and agrees that in the event of such breach, or the threat thereof, the Company
shall be entitled, in addition to any other legal remedies and damages available, to (a) specific performance thereof and to temporary
and permanent injunctive relief (without the necessity of posting a bond) to restrain the violation or threatened violation of such obligations
by the Employee and persons acting for or in connection with the Employee and (b) recovery of all reasonable sums and costs, including
attorneys’ fees, incurred by the Company in seeking to enforce the provisions of this Agreement.

 

    10

     

    

 

 9. Severability.

 

The parties agree they have
attempted to limit the scope of the post-employment restrictions contained herein to the extent necessary to protect Confidential Information
and trade secrets, client relationships, and goodwill. It is the desire and intent of the parties that the provisions of this Agreement
shall be enforced to the fullest extent permissible under applicable law and public policies. Accordingly, if any particular portion of
this Agreement shall be adjudicated to be invalid or unenforceable, this Agreement shall be deemed amended to delete therefrom such invalid
portion, and reformed to the extent valid and enforceable. Such deletion and reformation shall apply only with respect to the operation
of this Agreement in the particular jurisdiction in which such adjudication is made.

 

 10. Other Agreements and Obligations Survive.

 

Neither the Employee nor the
Company intends to waive or release the applicability of any other more extensive legal or contractual obligations the Employee may owe
the Company at any particular time, including under any employment agreement between the Employee and the Company whether executed prior
to this Agreement or at any time hereafter with regard to the subject matters of Sections 1-5.

 

The obligations of the Employee
under this Agreement shall be independent of, and unaffected by, and shall not affect, other agreements, if any, binding the Employee
that apply to the Employee’s business activities during and/or subsequent to the Employee’s employment by the Company, including
any employment agreement between the Employee and the Company whether executed prior to this Agreement or at any time hereafter. The obligations
under this Agreement also shall survive any changes made in the future to the employment terms of the Employee, including, but not limited
to, changes in salary, benefits, bonus or incentive compensation, job title, and job responsibilities.

 

11.   Employment
Unaltered.

 

The Employee understands that
this Agreement does not constitute a contract of employment and does not promise or imply that his or her employment will continue for
any period of time. Unless otherwise agreed to under any employment or other agreement between the Employee and the Company whether executed
prior to this Agreement or at any time hereafter, employment with the Company is “at will” and may be terminated either by
the Employee or the Company at any time, for any or no reason, and with or without notice.

 

 12. Binding Effect; Assignment.

 

The Employee expressly consents
to be bound by the provisions of this Agreement for the benefit of the Company or any of its subsidiaries or affiliates to whose employ
he or she may be transferred without the necessity that this Agreement be re-signed at the time of such transfer. Further, the rights
of the Company hereunder may be assigned, without consent of the Employee, at any time, to any successor in interest of the Company, or
any portion thereof, by reason of merger, consolidation, sale, lease or other disposition of any or all of the assets or stock of the
Company.

 

    11

     

    

 

 13. Governing Law and Choice of Forum.

 

This Agreement shall be governed
by, and construed in accordance with, the law of the State of New York, without regard to its conflict of law provisions. The parties,
being desirous of having any disputes resolved in a forum having a substantial body of law and experience with the matters contained herein,
agree that any action or proceeding with respect to Paragraph 7 of this Agreement shall be brought as provided in the Employment Agreement
to which this Agreement is appended.

 

 14. Non-Waiver.

 

The failure of either the Company
or the Employee, whether purposeful or otherwise, to exercise in any instance any right, power, or privilege under this Agreement or under
law shall not constitute a waiver of any other right, power, or privilege, nor of the same right, power, or privilege in any other instance.
Any waiver by the Company or by the Employee must be in a written or electronic instrument signed by either the Employee, if the Employee
is seeking to waive any of his or her rights under this Agreement, or by a senior executive officer of the Employer, if the Company is
seeking to waive any of its rights under this Agreement.

 

 15. Modification.

 

No modification of this Agreement
shall be valid unless made in a written or electronic instrument signed by both parties hereto, wherein specific reference is made to
this Agreement.

 

 16. Cooperation. 

 

Both during the Employee’s
employment with the Company and after the termination thereof for any reason, the Employee agrees to provide cooperation as reasonably
requested by the Company regarding any claim, potential claim, or regulatory matter to which the Employee has knowledge.

 

17.   Subpoena.

 

In the event that you
receive a request or are required (by deposition, interrogatory, request for documents, subpoena, civil investigative demand or similar
process) to disclose all or any part of the Confidential Information you agree to (a) promptly notify the Company in writing of the existence,
terms and circumstances surrounding such request or requirement, (b) consult with the Company on the advisability of taking legally available
steps to resist or narrow such request or requirement, and (c) assist the Company in seeking a protective order or other appropriate remedy.
In the event that such protective order or other remedy is not obtained or that the Company waives compliance with the provisions hereof,
you shall not be liable for such disclosure unless disclosure to any such tribunal was caused by or resulted from a previous disclosure
by you not permitted by this Employment Agreement.

 

	ACCEPTED AND AGREED TO:	 
	 	 
	Executive	 
	 	 	 
	By:	/s/
    Daniel Schneiderman	 
	Name:  	Daniel Schneiderman	 

 

12EX-10.1

 CERTAIN INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [*], HAS BEEN OMITTED BECAUSE IT IS BOTH
(I) NOT MATERIAL AND (II) IS THE TYPE OF INFORMATION THAT CYMABAY TREATS AS PRIVATE OR CONFIDENTIAL. 
 Exhibit 10.1 

PPAR-d LICENSE AGREEMENT 

THIS LICENSE 
AGREEMENT (the “Agreement”) is made and entered into as of the Effective Date (as defined below), by and between METABOLEX, INC., a Delaware
corporation having its principal place of business at 3876 Bay Center Place, Hayward, CA 94545 (“Metabolex”), and JANSSEN PHARMACEUTICA NV, a corporation organized under the laws
of Belgium having a place of business at 30 Turnhoutseweg, 2340 Beerse, Belgium (“Janssen”). Metabolex and Janssen are sometimes referred to herein individually as a “Party” and collectively as the
“Parties.” 
 RECITALS 

WHEREAS, Ortho-McNeil, Inc. (an Affiliate of Janssen) and Metabolex are party to a Strategic
Alliance Agreement setting forth the scope and terms of a strategic alliance between the Parties in the area of metabolic diseases; 

WHEREAS, as part of such alliance, Metabolex desires to obtain from Janssen an exclusive,
worldwide license under certain patents, know-how and other intellectual property relating to Janssen’s PPAR-d program; and 

WHEREAS, Janssen is willing to grant such license under the terms and conditions set forth in this
Agreement. 
 NOW, THEREFORE, the Parties agree as follows: 

ARTICLE 1 
 DEFINITIONS

 As used herein, the following terms shall have the following meanings: 

1.1 “Affiliate” means, with respect to a particular Party, a corporation, partnership, or other entity that
controls, is controlled by or is under common control with such Party. For the purposes of the definition in this Section 1.1, the word “control” (including, with correlative meaning, the terms “controlled by” or
“under common control with”) means the actual power, either directly or indirectly through one or more intermediaries, to direct or cause the direction of the management and policies of such entity, whether by the ownership of at least
fifty percent (50%) of the voting stock of such entity, or by contract or otherwise. 
 1.2 “Confidential
Information” has the meaning set forth in Section 6.1. 
 1.3 “Controlled” means, with respect to
an item of Information or an intellectual property right, that a Party or one of its Affiliates owns or has a license to such item or right and has the ability to disclose to the other Party and/or grant a license or sublicense under such item or
right as provided for in this Agreement without violating the terms of any agreement with any Third Party, or other obligation to any Third Party. 

1.4 “CTA” means a clinical trial authorization, as described in Article 9 of Directive 2001/20/EC of the European
Parliament and of the Council. 
 1.5 “Diligent Efforts” means, with respect to a Party’s obligation under
this Agreement, the level of efforts required to carry out a task or obligation in a manner consistent with its normal business practices the Party would devote to a product at a similar stage of development or commercialization and of similar
market potential, profit potential or strategic value, based on conditions then prevailing. 

  
 1 

 1.6 “Effective Date” means the Effective Date as defined in the PPAR-g License Agreement. 
 1.7 “Execution Date” means June 20,
2006, the date upon which this Agreement has been executed and delivered by both Parties. 
 1.8 “FDA” means the U.S.
Food and Drug Administration, or a successor federal agency thereto. 
 1.9 “First Commercial Sale” means, with
respect to a PPAR-d Product in a particular country, the first commercial sale of such product in such country after all needed Regulatory Approvals have been obtained in such country. 

1.10 “IND” means an investigational new drug application filed with the FDA for approval to commence human clinical
trials, or any equivalent application filed with any equivalent regulatory authority in a country other than the U.S. 
 1.11
“Information” means all tangible and intangible (a) information, techniques, technology, practices, trade secrets, inventions (whether patentable or not), methods, knowledge,
know-how, skill, experience, data, results (including pharmacological, toxicological and clinical test data and results), analytical and quality control data, results or descriptions, software and algorithms
and (b) compositions of matter, cells, cell lines, assays, animal models and physical, biological or chemical material. 
 1.12
“Major Market” means France, Germany, Italy, Japan, Spain, the United Kingdom, or the U.S. 
 1.13 “Metabolex Know-How” means all Information that (a) is Controlled by Metabolex or its Affiliates during the Term, (b) is developed or acquired by Metabolex or its Affiliates after the Effective
Date and (c) relates to a PPAR-d Compound or a PPAR-d Product or its development, manufacture, promotion or use, but excluding the Metabolex
Patents, PPAR-d Patents, and PPAR-d Know-How. 

1.14 “Metabolex Patents” means all Patents (other than
PPAR-d Patents) that (a) are filed during the Term with a priority date after the Effective Date; (b) are Controlled during the Term by Metabolex or a Metabolex Affiliate; and
(c) claim or cover the composition of matter, manufacture or use of a PPAR-d Compound or a PPAR-d Product. 

1.15 “NDA” means a New Drug Application filed pursuant to the requirements of the FDA, as more fully defined in
21 C.F.R. § 314.5 et seq. or any equivalent application filed with any equivalent regulatory authority in a country other than the U.S. 

1.16 “Net Sales” means, with respect to a given period of time, [*], less the following deductions
and offsets that are actually incurred, allowed, accrued and/or taken and are specifically allocated with respect to such sale or distribution, but solely to the extent that such deductions or offsets are not otherwise recovered by or reimbursed to
Metabolex or its Affiliates, distributors or sublicensees: 
 [*] 

The methodology for calculating (a) – (f), on a country-by-country
basis, shall conform to generally accepted accounting principles consistently applied by Metabolex and its Affiliates across its product lines. 

Net Sales shall also include the fair market value of all consideration received by Metabolex and its Affiliates and their distributors and
sublicensees in respect of any sale of PPAR-d Products, whether such consideration is in cash, payment in kind, exchange for value or another form. 

In the case of discounts, reductions, payments or rebates offered for the PPAR-d Products
where the PPAR-d Products are sold to a customer as a grouped set of products and/or services, Metabolex may discount the bona fide list price of a
PPAR-d Product by no more than the average weighted percentage discount (off of the applicable list prices) of all the products of Metabolex and/or its Affiliates in such particular grouped set of
products. The 

  
 2 

 
methodology for calculating the “average weighted percentage discounts” for PPAR-d Products will be consistent with Metabolex’s
and its Affiliates’ usual course of dealing with all its products other than the PPAR-d Products. An example of the calculation of “average weighted percentage discount” for a
particular grouped set is set forth in the attached Exhibit A. 
 If a
PPAR-d Product is sold in the form of a combination product containing both a PPAR-d Product and one or more independently therapeutically active
pharmaceutical molecules that are not PPAR-d Products (for the purpose of this Section 1.16, a “Combination Product”), [*]. 

[*] 
 If Metabolex (or its
Affiliate) sublicenses the development and/or commercialization of a PPAR-d Product to a Third Party in consideration of the payment (inter alia) of royalties by such sublicensee on sales by such
sublicensee of the PPAR-d Product, then Metabolex (or its Affiliate) shall use commercially reasonable efforts to use a definition of net sales in the sublicense agreement between Metabolex and such
sublicensee that exactly matches the definition of “Net Sales” as used in this Agreement. However, in the event such definitions differ, for purposes of calculating the royalty owed by Metabolex to Janssen based on such sublicensee’s
sales of such PPAR-d Product, the definition of “Net Sales” as used in this Agreement, solely for purposes of calculating such royalty owed, shall be deemed to be the definition of net
sales in the sublicense agreement between Metabolex (or such Affiliate) and such sublicensee, provided, however, that (i) the two definitions are substantially similar and (ii) the methodology for calculating any deductions or
offsets listed in such definition, on a country-by-country basis, conforms to generally accepted accounting principles consistently applied by such sublicensee across
its product lines. 
 1.17 “Other Product” means any pharmaceutical product (other than a PPAR-d Product) containing a Selective PPAR-d Modulator, and including all formulations, line extensions and modes of administration thereof. 

1.18 “Patents” means (a) U.S. patents, re-examinations, reissues, renewals,
extensions and term restorations, and foreign counterparts thereof, and (b) pending applications for U.S. patents, including, without limitation, provisional applications, continuations, continuations-in-part, divisional and substitute applications, inventors’ certificates, and extensions, and foreign counterparts of any of the foregoing. 

1.19 “Phase III Trial” means that portion of the clinical development program that provides for trials of a PPAR-d Product in an extended human patient population designed to obtain data determining efficacy and safety of the PPAR-d Product to support Regulatory
Approvals in the proposed therapeutic indication as more fully defined in 21 C.F.R. § 312.21(c), or its successor regulation, or the equivalent in any foreign country. 

1.20 “PPAR-d Compound” means: (a) any of the compounds
known as [*] (each as described in Exhibit B); (b) any other compound that is a Selective PPAR-d Modulator [*] as defined in: [*], or [*] or [*], and/or [*]; and (c) any
[*] of any of the foregoing compounds. 
 1.21 “PPAR-d Know-How” means all Information that is Controlled by Janssen or its Affiliates as of the Effective Date and relates to a PPAR-d Compound, or is
otherwise necessary for the development, manufacture, promotion, or use of a PPAR-d Compound, but excluding the PPAR-d Patents. For clarity, PPAR-d Know-How shall include the Product Data Package. 

1.22 “PPAR-d Patents” means all Patents that
are Controlled during the Term by Janssen or a Janssen Affiliate and that include one or more claims that claim or cover a PPAR-d Compound, or the manufacture or use of a PPAR-d Compound, including without limitation those listed on Exhibit C. In addition, “PPAR-d Patents” shall include all
Patents that are Controlled as of the Effective Date by Janssen or a Janssen Affiliate to the extent that such Patents include one or more claims that claim or cover the formulation, manufacture or use of a
PPAR-d Product as it exists as of the Effective Date. 

  
 3 

 1.23
“PPAR-d Product” means any pharmaceutical product that contains a PPAR-d Compound, and including all formulations, line
extensions and modes of administration thereof. 
 1.24 “PPAR-g License
Agreement” means the Development and License Agreement executed on June     , 2006, by and between Metabolex and Ortho-McNeil, Inc. 

1.25 “Product Data Package” shall mean any and all files, data, records and other Information (including without
limitation regulatory documents, pre-clinical and clinical protocols, data, and reports, product complaint files, and adverse event files) relating to development of
PPAR-d Compounds or PPAR-d Products anywhere in the world, to the extent such files, data, records or Information are Controlled by Janssen or its
Affiliates. 
 1.26 “Regulatory Approval” means any and all approvals (including supplements, amendments, pre- and post-approvals, pricing and reimbursement approvals), licenses, registrations or authorizations of any national, supra-national (e.g., the European Commission or the Council of the European Union),
regional, state or local regulatory agency, department, bureau, commission, council or other governmental entity, that are necessary for the manufacture, distribution, use or sale of a PPAR-d Product
in the particular regulatory jurisdiction. 
 1.27 “Selective
PPAR-d Modulator” means any small molecule compound that (a) [*] interacts with the PPAR-d receptor to [*] or [*], and
(b) shows activity toward [*] the PPAR-d receptor in the [*] assay using [*] (or any [*] thereof). To constitute a Selective PPAR-d Modulator,
the compound must not [*] (i) [*] or (ii) [*]. For the purposes of clause (i) of this Section 1.27, “[*]” means [*] in either the [*] and/or [*], as applicable, that is [*] obtained in the [*] assay. For the
purposes of clause (ii) of this Section 1.27, “[*]” means [*] of the [*] of the compound for the [*] (measured at [*] determined in the [*] assay) in the generally accepted assay for the [*] (or if there is no such generally
accepted assay, a validated assay for the [*]). Notwithstanding the above, the term “Selective PPAR-d Modulator” shall include, without limitation, [*]. 

1.28 “Term” means the term of this Agreement as provided in Section 9.1. 

1.29 “Third Party” means any Person other than (a) Metabolex, (b) Janssen, or (c) an Affiliate of either
Metabolex or Janssen. 
 1.30 “U.S.” means the United States of America, including its territories, protectorates and
possessions. 
 1.31 “Valid Claim” means (i) a valid and enforceable claim of an issued, unexpired PPAR-d Patent, or (ii) a claim in any pending application for a PPAR-d Patent for which not more than [*] years have elapsed from the [*]. A claim of an
issued, unexpired patent shall be deemed to be valid and enforceable unless and until it has been held to be invalid and/or unenforceable by a final judgment of a court of competent jurisdiction from which no further appeal can be taken. If a claim
of a patent application that ceased to be a Valid Claim under clause (ii) of this Section 1.31 later issues or grants as a patent within the scope of clause (i) of this Section 1.31, then such claim shall again be considered to
be a Valid Claim, effective as of the earlier of the grant or issuance of such patent. 
 ARTICLE 2 

LICENSES 
 2.1 License
Grant. Subject to the terms and conditions of this Agreement, Janssen hereby grants to Metabolex an exclusive (even as to Janssen and its Affiliates), worldwide, royalty-bearing license, with the right to grant sublicenses to
Affiliates and/or Third Parties through multiple tiers, under the PPAR-d Patents and PPAR-d Know-How solely
to research, develop, use, market, offer for sale, sell, import, manufacture, have manufactured, and distribute the PPAR-d Products. 

2.2 Third Party Licenses. Janssen shall be solely responsible for all costs and expenses of any licenses in effect as of the
Effective Date between a Third Party and Janssen or its Affiliates related to the PPAR-d Products. Subject to Section 4.2(a), Metabolex shall be solely responsible for all costs and expenses of
any other license required in order to lawfully develop and commercialize the PPAR-d Products. 

  
 4 

 2.3 No Other Licenses. Neither Party grants to the other Party any rights
or licenses in or to any intellectual property, whether by implication, estoppel, or otherwise, other than the license rights that are expressly granted under this Agreement. 

2.4 No Non-Permitted Use. Metabolex hereby covenants that it shall not, nor shall it cause
or permit any Affiliate or sublicensee to use or practice, any PPAR-d Patents or PPAR-d Know-How, for any
purposes other than those expressly permitted in Section 2.1, or Section 9.5(f) or (h). Janssen hereby covenants that it shall not, nor shall it cause or permit any Affiliate or sublicensee to use or practice any PPAR-d Patents or PPAR-d Know-How, for any purposes other than those expressly set forth in Section 9.5(a). 

2.5 Third Party Contracts. Metabolex shall use reasonable commercial efforts to ensure that each Third Party contract that Metabolex
(or any Affiliate) enters into solely related to PPAR-d Products contains provision(s) permitting such Third Party contract to be assigned in accordance with Section 9.5(e). As to other
contracts entered into by Metabolex (or its Affiliates) that relate to PPAR-d Products, Metabolex shall reasonably cooperate (if requested by Janssen after termination of the Agreement under Article
9) to assist Janssen in obtaining the benefits of such contracts. To the extent any such Third-Party contract relates to products or services generally available upon commercially reasonable terms, Metabolex shall not be required to assign such
agreement(s), or provide such assistance (as applicable), to Janssen. 
 2.6 Sublicensee Agreements. Metabolex shall, in each
sublicense that it grants hereunder, require the sublicensee to transfer any regulatory filings with respect to any PPAR-d Product or PPAR-d Compound
in the event of a termination of this Agreement or such sublicense, to Janssen if this Agreement terminates, and to Metabolex if only such sublicense terminates. 

2.7 Exclusivity. 
 (a)
Metabolex. Metabolex hereby covenants that Metabolex and its Affiliates shall not [*] for the period of [*], or until [*], any compound (other than a PPAR-d Compound), or product that
contains a compound (other than a PPAR-d Product), that has [*] that such compound or product [*] unless that compound, or compound in the product, also has [*] that is either (i) [*] or
(ii) [*], as well as [*] that is not [*] (such compound or product that [*] hereinafter referred to as an “Excluded Product”). If the product is a combination product (i.e., it contains multiple independently
therapeutically active pharmaceutical molecules), the product shall be analyzed on a therapeutically active pharmaceutical molecule by therapeutically active pharmaceutical molecule basis to determine if it is an Excluded Product. Notwithstanding
the above, [*] shall be deemed to be Excluded Products. 
 (b) Metabolex Sublicensees. Metabolex hereby covenants that any
sublicense related to the [*] of a PPAR-d Product that Metabolex or its Affiliates grant under this Agreement shall include a covenant by the sublicensee that such sublicensee shall not [*] for the
period of [*], or until [*]. Metabolex hereby agrees to use reasonable efforts to enforce such covenant [*] if it, or its Affiliates, become aware of a breach or anticipated breach of such covenant by any sublicensee. 

(c) Janssen. Janssen hereby covenants that Janssen and its Affiliates shall not [*] for the period of [*], or until [*]. 

(d) [*]. For the purposes of this Section 2.7, [*] means [*] that is responsible for the achievement of a [*] in one of the
[*] used to [*] in the [*], which [*] as indicated in the [*] and [*] may be used to [*]. 
 (e) Exception for Acquired Excluded
Products. Notwithstanding the foregoing, if either Party or any of its respective Affiliates, enters into a definitive agreement with respect to a merger or acquisition by operation of which such Party or its Affiliate would
(i) acquire an Excluded Product that at the time of the closing of the acquisition [*] or (ii) be acquired by, or merge with, a Third Party that has an Excluded Product that at the time of the closing of the acquisition [*], then such
Party or its Affiliate (or the entity that acquired such Party or its Affiliate 

  
 5 

 
or the entity into which such Party or its Affiliate has merged) shall have [*] from the execution date of such definitive agreement to divest itself of such Excluded Product and, during such [*]
period, the [*] of such Excluded Product shall be deemed to be not in violation of Section 2.7(a) or Section 2.7(c), as applicable. Such divestiture can occur by either (1) an outright sale to a Third Party of all rights to such
Excluded Product, or (2) an out-license (exclusive as to the divesting Party and its Affiliates) to a Third Party of all rights to [*] such Excluded Product; provided, however, that the
divesting Party or its Affiliate must not exercise or have the ability to exercise any role, or influence in any manner, the [*] of such Excluded Product. If a Party or its Affiliate fails to divest itself of such Excluded Product during such [*]
period, then if such Party is (A) Metabolex, then [*]; or (B) Janssen, then Metabolex shall have the right [*], at its discretion, upon written notice to Janssen, to [*] and/or [*] under this Agreement. 

ARTICLE 3 

DEVELOPMENT & COMMERCIALIZATION 

3.1 Development and Commercialization of PPAR-d Compounds. Subject to
Section 3.6, Metabolex shall have full control and responsibility over the research, development and registration (including but not limited to, clinical activities and submissions to regulatory agencies, and all expenses related thereto) of
any PPAR-d Products, subject to the terms of this Agreement. Metabolex shall use Diligent Efforts to conduct all such research, development, and regulatory activities. 

3.2 Development Information and Reporting. Metabolex shall use Diligent Efforts to prepare and maintain complete and accurate
records regarding the worldwide clinical development of PPAR-d Products. Metabolex shall provide to Janssen on a semi-annual basis a summary of the development efforts being conducted on PPAR-d Product and the results of such development. Metabolex shall also provide to Janssen copies of all FDA and other Regulatory Authority communications associated with Major Market filings and shall inform
Janssen promptly following the occurrence of any significant development event that occurs relating to such PPAR-d Products (e.g. initiation or completion of a clinical trial, submission of a U.S. or
international regulatory filing, receipt of a response to such U.S. or international regulatory filing, or serious adverse clinical safety event associated with a PPAR-d Product). 

3.3 Diligence in Development of PPAR-d Products. Metabolex shall use
Diligent Efforts to clinically develop at least one PPAR-d Product under this Agreement, provided that in Metabolex’s reasonable judgment it is commercially feasible to file for Regulatory
Approval for such PPAR-d Product in at least the U.S. and the other Major Markets. 

3.4 Technology Transfer. Janssen and its Affiliates shall cooperate with Metabolex and provide access and transfer to
Metabolex of its PPAR-d Know-How by such dates after the Effective Date as are reasonably requested by Metabolex. For the avoidance of doubt, neither providing
access to nor transfer of any PPAR-d Know-How pursuant to this Section 3.4 shall alter the ownership or other rights of any Party or its Affiliates with
respect to such PPAR-d Know-How. Each Party shall be responsible for its own costs and expenses related to any such cooperation, provided however,
that the costs of the transfer of any Materials by Janssen and its Affiliates shall be borne by Janssen. 
 3.5 Materials
Transfer. In order to facilitate the technology transfer provided in Section 3.4 and facilitate Metabolex’s research and development of PPAR-d Products, Janssen shall
provide to Metabolex upon the prior written request of Metabolex, at no charge, the biological material, chemical compounds and Information Controlled by Janssen and its Affiliates listed on Exhibit D that Janssen and/or its
Affiliates have on hand at the relevant time, and other material reasonably requested by Metabolex prior to [*] that Janssen and/or its Affiliates have on hand at the relevant time (collectively, the “Materials”) for use by
Metabolex solely to research and develop PPAR-d Products. To the extent that such Materials consist of reports that are in the process of being written/completed as of the relevant time, Janssen
agrees to write/complete such reports prior to providing them to Metabolex. It is agreed that Janssen and/or its Affiliates shall transfer to Metabolex upon prior written request of Metabolex, all of its stock of the compounds known as [*]
(including any clinical materials containing such compounds), other than such amounts that Janssen needs to retain for regulatory purposes. The Materials shall be transferred within a reasonably 

  
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practicable time after the written request of Metabolex. It is the expectation of the Parties that prior to [*], Metabolex shall only request the transfer of Materials that it needs in order to
[*]. All Materials provided by Janssen and/or its Affiliates under this Agreement will be used by Metabolex only for the specific research and development purposes as disclosed and as permitted under the applicable license rights granted under
Section 2.1 and subject to all the other restrictions and obligations under this Agreement. Such Materials will not be used or delivered to or for the benefit of any Third Party except as otherwise permitted under this Agreement without the
prior written consent of Janssen, and will be used in compliance with all applicable laws, rules and regulations. The Materials supplied under this Agreement must be used with prudence and appropriate caution in any experimental work because not all
of their characteristics may be known. Except as expressly set forth herein, THE MATERIALS ARE PROVIDED “AS IS” AND WITHOUT ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF
MERCHANTABILITY OR OF FITNESS FOR ANY PARTICULAR PURPOSE OR EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT ANY WARRANTY THAT THE USE OF THE MATERIALS WILL NOT INFRINGE OR VIOLATE ANY PATENT OR OTHER PROPRIETARY RIGHTS OF ANY THIRD PARTY. 

3.6 Regulatory Matters. At all times after the Effective Date, Metabolex shall own and maintain, at its own cost, all
regulatory filings and Regulatory Approvals for PPAR-d Products that Metabolex is developing or commercializing pursuant to this Agreement, including all INDs, CTAs, NDAs, and statistical analyses.
As such, Metabolex shall be responsible for reporting all adverse drug reactions related to PPAR-d Products to the appropriate regulatory authorities in the relevant countries, in accordance with the
applicable laws and regulations of such countries. As soon as practicable, but not more than thirty (30) days after the Effective Date, Janssen shall transfer ownership of, and all files relating to, its regulatory filings and associated with
PPAR-d Products to Metabolex (including, but not limited to, any INDs Controlled by Janssen or its Affiliates). Metabolex shall provide Janssen with copies of the draft registration submissions in
connection with obtaining Regulatory Approval for a PPAR-d Product in the Major Markets, prior to their submission, and Janssen shall have the right to review such draft submission and provide
comments thereon to Metabolex, which Metabolex agrees to reasonably consider. Janssen also agrees to discuss and answer any questions relating to
PPAR-d Know-How that Metabolex may have regarding regulatory matters for PPAR-d Products. Metabolex shall
also be responsible for all meetings with regulatory authorities and all post-approval commitments. Notwithstanding the above, Janssen shall prepare and file a FDA regulatory submission covering the [*]. Janssen shall provide Metabolex with a copy
of the draft submission prior to its submission, and Metabolex shall review such draft submission and provide comments thereon to Janssen, which Janssen agrees to consider and incorporate into the submission if in Janssen’s reasonable judgment
such suggestions are justified and proper. 
 3.7 Commercialization of
PPAR-d Products. Metabolex will plan, control, carry out and fund all activities related to the promotion, marketing and sale of any
PPAR-d Products. Metabolex shall use Diligent Efforts to market, promote and commercialize any and all PPAR-d Products as to which Regulatory
Approval has been achieved in a Major Market provided that such commercial launch is commercially reasonable given label and pricing issue. Prior to launch of any PPAR-d Product and from time to time
thereafter (but no less frequently than annually), Metabolex will provide Janssen with updates on marketing activities relating to PPAR-d Products. 

3.8 Commercialization Costs. Metabolex shall be responsible for all costs and expenses associated with its
commercialization activities, including manufacturing of PPAR-d Products. 
 3.9 Right
of First Negotiation. 
 (a) Right of First Negotiation. Metabolex hereby grants to Janssen a right of first negotiation
under the terms of this Section 3.9 (the “Right of First Negotiation”) to license a particular PPAR-d Product or Other Product from Metabolex in the event that Metabolex
elects to seek a Third Party corporate partner for the research, development, promotion, and/or commercialization of such PPAR-d Product or Other Product. 

(b) Notice; Exercise. In the event that Metabolex decides to seek a partner for the research, development, promotion, and/or
commercialization of a PPAR-d Product or Other Product, Metabolex shall provide notice in writing (the “Notice to Partner”) to Janssen of such intention. Within thirty
(30) days of receipt of such Notice to Partner, Janssen shall submit a reasonable due diligence request to Metabolex (“Diligence Request”) in 

  
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order for Janssen to evaluate Janssen’s interest in such PPAR-d Product or Other Product (as the case may be). Janssen shall then have
thirty (30) days from the date of receipt of either (i) Metabolex’s detailed answer to the Diligence Request (which answer may be provided by Metabolex allowing appropriate Janssen employees access to a facility having the Metabolex
Information that is responsive to such Diligence Request and reasonable time to review such Information), or (ii) the Notice to Partner, if no such Diligence Request was timely submitted by Janssen (as applicable), to notify Metabolex in
writing of its desire to exercise the PPAR-d Right of First Negotiation (the “Exercise”). After receipt of Janssen’s timely Exercise, the Parties shall then negotiate in good
faith, for up to [*] after the date of such Exercise, the terms of an agreement (the “PPAR-d License Agreement”) under which Janssen would receive an exclusive license to
the PPAR-d Product or Other Product (as the case may be) on commercially reasonable terms, taking into account the stage of development of the
PPAR-d Product or Other Product at the time of such negotiations and Metabolex’s prior efforts and resources expended in developing the
PPAR-d Product or Other Product. 
 (c) Failure to Reach Agreement. If the
Parties do not enter into the License Agreement within [*] after the date of the Notice to Partner, then Metabolex shall have no further restrictions or obligations
vis-à-vis Janssen with respect to the applicable PPAR-d Product or Other Product under this Section 3.9,
and Metabolex shall be free to enter into a license, collaboration, joint venture or other agreement with a Third Party covering such PPAR-d Product or Other Product (a “Third Party
Agreement”) at its discretion. 
 (d) Failure to Consummate Partnering Transaction. If Metabolex does not execute,
within [*] after the expiration of the [*] period contemplated in Section 3.9(b), a definitive Third Party Agreement with a Third Party, then the Right of First Negotiation would then again apply if Metabolex subsequently seeks to partner such
PPAR-d Product or Other Product. 
 (e) Independent Development. Subject to
Section 2.7(a), Metabolex and its Affiliates shall at all times retain the right, at its discretion, to develop and commercialize any PPAR-d Product or Other Product independently. 

3.10 Replacement Product. 

(a) Metabolex shall have the option (the “Replacement Product Option”) to discontinue its development of the
PPAR-d Compounds and PPAR-d Products and select [*] as a Replacement Compound (as defined below), which option shall become exercisable on the
Effective Date and shall terminate on [*]. 
 (b) In the event Metabolex exercises the Replacement Product Option, such
Replacement Compound (and any applicable product) shall be subject to the terms and conditions set forth in this Agreement in the same manner as a PPAR-d Compound (and associated PPAR-d Product) and all other terms and obligations accordingly modified, including without limitation, the representations and warranties in Section 7.2. Without limiting the generality of the foregoing,
the terms PPAR-d Compound, PPAR-d Know-How, PPAR-d Patent,
and PPAR-d Product shall be replaced with appropriate acronyms and definitions relating to such replacement product, as follows: 

(i) “Replacement Compound” means the composition known as [*] as described in Exhibit
E. 
 (ii) “Replacement Know-How” means all
Information that is Controlled by Janssen or its Affiliates as of the Effective Date and relates to the Replacement Compound, or is otherwise necessary for the development, manufacture, promotion, or use of the Replacement Compound, but excluding
the Replacement Patents. For clarity, Replacement Know-How shall include the Product Data Package. 

(iii) “Replacement Patents” means all Patents that are Controlled during the Term by Janssen or a
Janssen Affiliate and that include one or more claims that claim or cover the Replacement Compound, or the manufacture or use of the Replacement Compound, including without limitation those listed on Exhibit F. In addition,
“Replacement Patents” shall include all Patents that are Controlled, as of the date the option is exercised, by Janssen or a Janssen Affiliate to the extent that such Patents include one or more claims that claim or cover the formulation,
manufacture or use of the Replacement Compound as it exists as of the date the option is exercised. 

  
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 (iv) “Replacement Product” means any
pharmaceutical product that contains the Replacement Compound, and including all formulations, line extensions and modes of administration thereof. 

(c) In addition, in the event Metabolex exercises the Replacement Product Option, Section 2.7 shall be deleted in its
entirety and replaced with the following; 
 (i) Metabolex. Metabolex hereby covenants that Metabolex and its Affiliates shall
not [*] any [*] product (other than a Replacement Product) for the period of [*]. 
 (ii) Metabolex Sublicensees. Metabolex hereby
covenants that any sublicense related to the [*] of a Replacement Product that Metabolex or its Affiliates grant under this Agreement shall include a covenant by the sublicensee that such sublicensee shall not [*] any [*] product (other than a
Replacement Product) for the period of [*]. Metabolex hereby agrees to use reasonable efforts to enforce such covenant [*] if it, or its Affiliates, become aware of a breach or anticipated breach of such covenant by any sublicensee. 

(iii) Janssen. Janssen hereby covenants that Janssen and its Affiliates shall not [*] any [*] product for the period of [*]. 

(d) In the event Metabolex exercises the Replacement Product Option, all rights with respect to the PPAR-d Patents and PPAR-d Know-How shall revert back to Janssen and the terms of Section 9.5 (without giving effect
to the replacement of terms contemplated by Section 3.10(b)) shall apply to the PPAR-d Products and PPAR-d Compounds. 

ARTICLE 4 
 PAYMENTS

 4.1 Royalties. 

(a) Royalty Percentage. For the term specified in Section 4.1(b), Metabolex shall pay to Janssen a running royalty equal to
eight percent (8%) of Net Sales; provided, however, that the royalties owed to Janssen on Net Sales attributable to [*] shall [*] and [*]; provided, further, that the royalties owed to Janssen on Net Sales
attributable to [*] shall not [*]. For the purpose of this Section 4.1(a), the [*] on Net Sales shall be equal to [*] plus [*] as a result of such Net Sales [*]. 

(b) Royalty Term. Metabolex’s royalty obligations under this Section 4.1 as to a particular PPAR-d Product in a particular country shall be in effect from the First Commercial Sale in the country and shall expire, on a
country-by-country basis, on the later of (i) [*] years following the First Commercial Sale of such PPAR-d Product
in such country and (ii) the expiration of the last to expire Valid Claim of a PPAR-d Patent covering such PPAR-d Compound or PPAR-d Product, or its manufacture or use in such country. Notwithstanding the foregoing, Metabolex shall be obligated to pay the royalties set forth in Section 4.1(a) on sales of a PPAR-d Product in any country where such PPAR-d Product [*] at the time [*]. 

4.2 Royalty Reductions. 

(a) Janssen shall be solely responsible for all costs and expenses of any licenses between a Third Party and Janssen or its
Affiliates in effect as of the Effective Date related to the PPAR-d Products. If a Patent or Patents of a Third Party should exist in any country during the Term covering the development,
manufacture, use or sale of any PPAR-d Product, and which Metabolex believes in Metabolex’s reasonable judgment impractical or impossible for Metabolex or any Affiliate or sublicensee to engage
in the activity or activities licensed under this Agreement without obtaining a royalty bearing license from such Third Party under such Patent or Patents in a particular country, then Metabolex shall be entitled to a credit, against the royalty
payments due to Janssen upon sales of such PPAR-d Product in the applicable country, of an amount equal to [*] the royalty paid to such Third Party based upon the sales of the PPAR-d Product in such country, but provided that such credit shall not exceed [*] the royalty otherwise payable to Janssen in the absence of such royalty offset. 

  
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 (b) If (i) [*] generic products or [*] equivalent (in either case,
“Generic Products”) are sold by Third Parties in a country where Metabolex is selling a PPAR-d Product, (ii) the Generic Products each contain the PPAR-d Compound in the PPAR-d Product, or any [*] of such PPAR-d Compound; and (iii) sales of the Generic
Products [*] in such country [*], the royalty owed under Section 4.1 for such PPAR-d Product shall be determined under the following formula: The contribution of sales of such PPAR-d Product in such country shall be reduced by [*] when calculating aggregate Metabolex Net Sales, but only for so long as the conditions set forth in subclauses (i), (ii), and (iii) continue to be
satisfied. 
 4.3 Timing of Payment. Royalties obligations under Section 4.1 shall accrue at the time the sale of the
royalty-bearing product is made, or invoice is delivered, whichever is earliest, and royalty or other payment obligations that have accrued during a particular calendar quarter shall be paid, on a quarterly basis, within forty-five (45) days
after the end of the calendar quarter during which the obligation accrued. For clarity, Metabolex’s obligation to pay royalties under this Agreement is imposed only once with respect to the same unit of
PPAR-d Product regardless of the number of Patents pertaining thereto. 
 4.4
Sublicenses. In the event Metabolex grants licenses or sublicenses to others to sell PPAR-d Products that are subject to royalties under Section 4.1, such licenses or sublicenses shall
include an obligation for the sublicensee to account for and report its sales of PPAR-d Products on the same basis as if such sales were sales by Metabolex, and Metabolex shall pay to Janssen, with
respect to such sales, such royalties and payments as if such sales of the sublicensee were sales of Metabolex. 
 4.5 Mode of
Payment. All payments to a Party hereunder shall be made by deposit of U.S. Dollars by wire transfer in immediately available funds in the requisite amount to such bank account as such Party may from time to time designate by notice
to the other Party. With respect to sales outside the U.S., royalty and other sales-based amounts owed shall first be calculated in the currency of sale, and then such amounts shall be converted into U.S. Dollars using the average exchange rates as
calculated and utilized by Metabolex’s reporting systems and published accounts as used throughout Metabolex’ business. 
 4.6
Royalty Reports and Records Retention. Within forty-five (45) days after the end of each calendar quarter during which PPAR-d Products have been sold, Metabolex shall deliver to
Janssen a written report of the amount of gross sales of each PPAR-d Product in each country during the applicable calendar quarter, an itemized calculation of Net Sales, consistent with
Metabolex’s normal and customary reporting procedure, and a calculation of the amount of royalty payment due on such sales during such calendar quarter. For three (3) years after each sale of each
PPAR-d Product, Metabolex shall keep (and shall ensure that its Affiliates and sublicensees shall keep) complete and accurate records of such sale in sufficient detail to confirm the accuracy of the
royalty and other payment calculations hereunder. 
 4.7 Audits. 

(a) Upon the written request of Janssen, and not more than once in each calendar year, Metabolex shall permit an independent
certified public accounting firm of internationally recognized standing selected by Janssen, and reasonably acceptable to Metabolex, to have access to and to review, during normal business hours and upon no less than thirty (30) days prior
written notice, the applicable records of Metabolex and its Affiliates to verify the accuracy and timeliness of the reports and payments made by Metabolex under this Agreement. Such review may cover the records for sales made in any calendar year
ending not more than thirty-six (36) months prior to the date of such request. The accounting firm shall disclose to Janssen only whether the royalty reports are correct or incorrect and the specific
details concerning any discrepancies. 
 (b) If such accounting firm concludes that any payments were late or additional amounts
were owed during such period, Metabolex shall pay the late payments and/or additional amounts, with interest from the date originally due as set forth in Section 4.8, within thirty (30) days after the date Janssen delivers to Metabolex a
notice referencing the accounting firm’s written report and requesting such payment. If the amount of the underpayment is 

  
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greater than [*] of the total amount actually owed for the period audited, then Metabolex shall in addition reimburse Janssen for all reasonable costs related to such audit; otherwise, Janssen
shall pay all costs of the audit. In the event of overpayment, any amount of such overpayment shall be fully creditable against amounts payable for the immediately succeeding calendar quarter(s); provided, however, that if the overpayment exceeds
[*], then such credit cannot be applied to reduce the amounts payable by Metabolex to Janssen for any particular calendar quarter by more than [*] of the amount otherwise due to Janssen. 

(c) Metabolex shall include in each distribution agreement or sublicense granted by it pursuant to this Agreement a provision
requiring the distributor or sublicensee to make reports to Metabolex, to keep and maintain records of sales made pursuant to such distribution agreement or sublicense and to grant access to such records by Janssen’s independent accountant to
the same extent required by Metabolex under this Agreement. 
 (d) Janssen shall (i) treat all information that it receives
under this Section 4.7 or under any sublicense agreement of Metabolex in accordance with the confidentiality provisions of Article 6 of this Agreement and (ii) cause its accounting firm to enter into an acceptable confidentiality agreement
with Metabolex obligating such firm to retain all such financial information in confidence pursuant to such confidentiality agreement, in each case except to the extent necessary for Janssen to enforce its rights under the Agreement. 

4.8 Interest. If either Party fails to make any payment due to the other Party under this Agreement, then interest shall accrue on
a daily basis at an annual rate of [*] above the then-applicable prime commercial lending rate of Citibank, N.A. San Francisco, California, or at the maximum rate permitted by applicable law, whichever is the lower. Notwithstanding the foregoing,
the interest shall only accrue on payments actually owed, from the original due date until payment made. If the Parties have a dispute regarding the results of the audit, they shall resolve the dispute through the mechanisms set forth in
Section 10.9 below. 
 4.9 Taxes. 

(a) Metabolex will make all payments to Janssen under this Agreement without deduction or withholding for taxes except to the
extent that any such deduction or withholding is required by applicable law to be made on account of Taxes (as defined in Section 4.9(e)). 

(b) Any tax required to be withheld under applicable law on amounts payable under this Agreement will promptly be paid by
Metabolex on behalf of Janssen to the appropriate governmental authority, and Metabolex will furnish Janssen with proof of payment of such tax. Any such tax required to be withheld will be an expense of and borne by Janssen. 

(c) Metabolex and Janssen will cooperate with respect to all documentation required by any taxing authority or reasonably
requested by Metabolex to secure a reduction in the rate of applicable withholding taxes. 
 (d) If Metabolex had a duty to
withhold taxes in connection with any payment it made to Janssen under this Agreement but Metabolex failed to withhold, and such taxes were assessed against and paid by Metabolex, then Janssen will reimburse Metabolex for such taxes (including
interest but excluding penalties), upon delivery by Metabolex of the documents evidencing Metabolex payment of the taxes and the basis for such payment. If Metabolex makes a claim under this Section 4.9(d) it will comply with the obligations
imposed by Section 4.9(b) as if Metabolex had withheld taxes from a payment to Janssen. 
 (e) Solely for purposes of this
Section 4.9, “Tax” means any present or future taxes, levies, imposts, duties, charges, assessments or fees of any nature (including interest, penalties and additions thereto) that are imposed by the applicable
federal government or other taxing authority. 

  
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 ARTICLE 5 

PATENTS 
 5.1 Patent
Prosecution. 
 (a) Janssen will have the sole (except as otherwise provided below), responsibility, [*] for the preparation,
filing, prosecution and maintenance of, and conducting or defending any interferences or similar proceedings and in obtaining and maintaining any patent extensions, supplementary protection certificates and the like with respect to, the PPAR-d Patents. [*] Janssen will keep Metabolex informed of the progress with regard to all activities relating to the Janssen patent prosecution, including providing to Metabolex copies of all proposed filings
and patent office responses and of all office actions and other material communications from patent offices relating to such prosecution efforts a reasonable time in advance of any proposed filing or required response, and Metabolex will have the
right to comment on any such filings and responses. Janssen will consider in good faith the timely received requests and suggestions of Metabolex with respect to such filings or responses and Metabolex’ strategies for Janssen patent
prosecution. During [*], Janssen shall not discontinue the filing, prosecution or maintenance of any PPAR-d Patent in a Major Market without Metabolex’s prior written consent. 

(b) Subject to the last sentence of Section 5.1(a), if Janssen intends to abandon or not maintain any PPAR-d Patent and Janssen is not abandoning such PPAR-d Patent in favor of another PPAR-d Patent, Janssen will
provide reasonable prior written notice to Metabolex of such intention to abandon (which notice will, in any event, [*] prior to the next deadline for any action that may be taken with respect to such Patent with the U.S. Patent & Trademark
Office or any applicable foreign patent office) and, unless Janssen reasonably believes prosecution by Metabolex could have a material adverse impact on other patent applications or patents owned or Controlled by Janssen, then Janssen shall provide
Metabolex the opportunity to assume responsibility for prosecuting and maintaining such PPAR-d Patent. The foregoing sentence shall not apply to any patent application or patent for which Janssen
does not have the right to grant to Metabolex such rights. In the event that Metabolex, in its sole discretion, elects to assume responsibility for prosecuting and maintaining such PPAR-d Patent,
then [*] such PPAR-d Patent will then be deemed [*] for all purposes of this Agreement. 

5.2 Common Interest Disclosures. With regard to any information or opinions disclosed pursuant to this Agreement by one
Party to each other regarding intellectual property and/or technology owned by Third Parties, Metabolex or Janssen (or its Affiliates), Metabolex and Janssen agree that they have a common legal interest in determining whether, and to what extent,
third party intellectual property rights may affect the conduct of the development, manufacturing, marketing and/or sale of PPAR-d Products, and have a further common legal interest in defending
against any actual or prospective Third Party claims based on allegations of misuse or infringement of intellectual property rights relating to the development, manufacturing, marketing and/or sale of
PPAR-d Products. Accordingly, Metabolex and Janssen agree that all such information and materials obtained by Metabolex and Janssen from each other will be used solely for purposes of the
Parties’ common legal interests with respect to the conduct of the Agreement. All information and materials will be treated as protected by the attorney-client privilege, the work product privilege, and any other privilege or immunity that may
otherwise be applicable. By sharing any such information and materials, neither Party intends to waive or limit any privilege or immunity that may apply to the shared information and materials. Neither Party shall have the authority to waive any
privilege or immunity on behalf of the other Party without such other Party’s prior written consent, nor shall the waiver of privilege or immunity resulting from the conduct of one Party be deemed to apply against any other Party. 

5.3 Enforcement of PPAR-d Patents. 

(a) Notice. The Parties shall promptly inform each other of any information that comes to their attention involving actual or
apparent infringements or misappropriations by any Third Party of any PPAR-d Patent or PPAR-d Know-How used
in connection with this Agreement. 
 (b) PPAR-d Patents. If any PPAR-d Patent is infringed by a Third Party in any country, in connection with the manufacture, use, importation, offer for sale, or sale in such country of a compound that is a PPAR-d Compound, which manufacture, use or sale is likely to have a material adverse effect on current or future sales of any PPAR-d Product being researched,
developed or commercialized by Metabolex or its Affiliates or sublicensees (a “Field Infringement”), Metabolex shall have the first right, but not the obligation, to bring an action or suit with respect to such Field Infringement at
its own expense using counsel chosen by Metabolex, and approved by Janssen, which approval shall not be unreasonably withheld. In any such action or suit involving a PPAR-d Patent, Janssen shall have
the opportunity to review any pleadings and provide comments with respect to such pleadings, which comments shall be reasonably considered by Metabolex. If requested by Janssen in writing, Metabolex will allow

  
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Janssen to join as a party in such action or suit, to the extent permitted by law, and in such regard Janssen may have counsel of its choosing and at its expense to represent its interest in such
action or suit, but Metabolex will control the conduct of the action or suit, and Janssen shall not bring any claim against Metabolex based on the conduct of such action or suit. If Metabolex does not choose to commence such action within [*] after
Metabolex becomes aware of such Field Infringement ([*] in the event of receiving a Paragraph IV Certification as described in 21 C.F.R. §314.50(i)(1)(i)(A)(4)), then Janssen may, at its discretion, choose to bring an action or suit at
Janssen’s own expense. In any such action or suit brought by Janssen, Metabolex will have the right, at its own expense, to be represented in any such action by counsel of its own choice, but shall not have any right to control or interfere
with Janssen’s conduct of the suit or action. In no event shall Janssen notify any Third Party of any alleged Field Infringement or bring any suit or other action against any Third Party seeking to enforce any PPAR-d Patents against any alleged Field Infringement (or otherwise), without first obtaining Metabolex’s prior written consent. Janssen will have the sole and exclusive right and discretion (i) to
defend or otherwise respond to any alleged invalidity or unenforceability of a PPAR-d Patent, unless Janssen provides Metabolex such right or (ii) to bring an action or suit against or otherwise
respond to Third Party activity that allegedly infringes a PPAR-d Patent, that is not a Field Infringement. Notwithstanding the foregoing, in any such action or suit involving a PPAR-d Patent, Metabolex shall have the opportunity to review any pleadings and provide comments with respect to such pleadings, which comments shall be reasonably considered by Janssen. 

(c) Settlement. The Party bringing suit under this Section 5.3 shall keep the other Party reasonably informed as to
the progress of the suit and all settlement discussions. A settlement or consent judgment or other voluntary final disposition of a suit brought by a Party under this Section may not be entered into without the prior written consent of the other
Party (which consent shall not be unreasonably withheld or delayed); provided, however, that such settlement, consent judgment or other disposition does not admit the invalidity or unenforceability of any Patent; and provided further, that any
rights to continue the infringing activity in such settlement, consent judgment or other disposition shall be limited to the product or activity that was the subject of the suit. 

(d) Recovery. Except as otherwise agreed to by the Parties as part of a cost-sharing arrangement, any recovery realized by
a Party as a result of a litigation or other action with respect to a Field Infringement will first be applied to reimburse Metabolex for any actual litigation costs and expenses borne by Metabolex and not yet reimbursed by Janssen, and Janssen for
any actual litigation costs and expenses borne by Janssen (including amounts paid to Metabolex to reimburse Metabolex for its litigation costs), and any amounts remaining after such reimbursement (a “Net Recovery”) will be shared by
the Parties as follows: (i) if recovered by Metabolex, Metabolex will retain [*] of such Net Recovery and pay Janssen [*] of such Net Recovery [*] of receipt of payment, or (ii) if recovered by Janssen, Janssen will retain [*] of such Net
Recovery and pay Metabolex [*] of such Net Recovery [*] of receipt of payment. Janssen will have the sole right to bring and control, and to retain all recovery from, any action or proceeding with respect to infringement of any PPAR-d Patent at its own expense and by counsel of its own choice with respect to any activities by a Third Party that are not Field Infringements. 

(e) Assistance. In the event of any patent infringement litigation involving a
PPAR-d Product and any Patent, the non-prosecuting or non-defending Party shall render such reasonable assistance as
may be requested by the prosecuting or defending Party in connection with such infringement actions. If one Party requests the other Party’s reasonable assistance in connection with such infringement claims or actions, the requesting Party
shall reimburse the other Party for such direct, documented out-of-pocket expenses as are reasonably incurred during the course of its providing such requested
assistance. Before incurring such expenses, the Parties shall in good faith agree on the nature and extent of assistance to be rendered. The non-prosecuting or
non-defending Party agrees to be joined as a party plaintiff, at the other Party’s expense, in any such action if necessary for such other Party to have standing to bring or continue an infringement
action hereunder. If a PPAR-d Patent is licensed-in to Janssen, Janssen agrees to use reasonable commercial efforts to obtain the licensor’s consent to
sue under such licensed-in Patent. 
 5.4 Cooperation by Metabolex and Janssen in Patent and
Regulatory Filings. The Parties shall cooperate in order to avoid loss of any rights that may otherwise be available to the Parties under the U.S. Drug Price Competition and Patent Term Restoration Act of 1984, the Supplementary Certificate
of Protection of the Member States of the European Union and other similar measures in any other country. Without limiting the foregoing, Metabolex shall notify Janssen upon receipt of Regulatory Approval to market a PPAR-d Compound or PPAR- d

  
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Product in the U.S., and timely supply Janssen with all information necessary to file an application for patent term extension for a relevant
PPAR-d Patent within the required period following Regulatory Approval. The Parties shall, if necessary and appropriate use reasonable efforts to agree upon a joint strategy relating to patent term
extension, but in the absence of mutual agreement with respect to such extension issue, Metabolex shall make the final decision on which Patent and/or the claims of the Patent will be selected for patent term extension. The obligations set forth in
this Section 5.4 shall apply with respect to patent term extensions, or the equivalent, in any other country. Any application for patent term extension in the U.S. shall be made by the Party who Controls the relevant patent. 

ARTICLE 6 

CONFIDENTIALITY 
 6.1
Confidentiality Obligations. All Information disclosed by one Party to the other Party pursuant to this Agreement and all Information relating to a PPAR-d Compound disclosed pursuant to the
Confidentiality Agreements entered into by and between Affiliates of Janssen and Metabolex dated [*] (as amended) and [*], shall be “Confidential Information” of the disclosing Party for all purposes hereunder. Each Party agrees
that, for the Term and for [*] years thereafter, such Party shall, and shall ensure that its officers, directors, employees and agents shall, keep completely confidential (using at least the same standard of care as it uses to protect proprietary or
confidential information of its own, but in no event less than reasonable care) and not publish or otherwise disclose and not use for any purpose except as expressly permitted hereunder any Confidential Information furnished to it by the other Party
(including, without limitation, know-how of the disclosing Party). The foregoing obligations shall not apply to any Information disclosed by a Party hereunder to the extent that the receiving Party can
demonstrate with competent evidence that such Information: 
 (a) was already known to the receiving Party or its Affiliate,
other than under an obligation of confidentiality, at the time of disclosure; 
 (b) was generally available to the public or
otherwise part of the public domain at the time of its disclosure to the receiving 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 subsequently lawfully disclosed to the receiving Party or its Affiliate by a Third Party other than in contravention of a
confidentiality obligation of such Third Party to the disclosing Party; or 
 (e) was developed or discovered by employees of
the receiving Party or its Affiliates who had no access to the Confidential Information of the disclosing Party. 
 6.2 Authorized
Disclosure. A Party may disclose the Confidential Information belonging to the other Party to the extent such disclosure is reasonably necessary in the following instances: 

(a) Filing or prosecuting Patents relating to PPAR-d Products as permitted under
this Agreement; 
 (b) Regulatory filings relating to PPAR-d Products; 

(c) Prosecuting or defending litigation as permitted under this Agreement; 

(d) Disclosure, in connection with the performance of this Agreement, to Affiliates, sublicensees, research collaborators,
employees, consultants, subcontractors or agents, each of whom prior to disclosure must be bound by similar obligations of confidentiality and non-use at least equivalent in scope to those set forth in this
Article 6. 
 Further, a Party may disclose the other Party’s Confidential Information to the extent such disclosure is required by
valid court order or legal process, provided that such Party gives the other Party advance notice of such required disclosure, limits the disclosure to that actually required, and cooperates in the other Party’s attempts to obtain a protective
order or confidential treatment of the information required to be disclosed. 

  
 14 

 6.3 Confidentiality of Agreement Terms. The Parties acknowledge that the
terms of this Agreement shall be treated confidentially as Confidential Information of both Parties. Notwithstanding the foregoing, such terms may be disclosed by a Party to investment bankers, investors, and potential investors or acquirers, in the
context of a potential transaction, each of whom prior to disclosure must be bound by similar obligations of confidentiality and non-use at least equivalent in scope to those set forth in this Article 6. A
copy of this Agreement may be filed with the Federal Trade Commission or the Justice Department for HSR review. In addition, a copy of this Agreement may be filed by a Party with the Securities and Exchange Commission, The New York Stock Exchange
and/or the Nasdaq National Market as required by applicable law or regulation. In connection with any such filing, such Party shall endeavor to obtain confidential treatment of economic and trade secret information. In any event, the Parties agree
to take all reasonable action to avoid disclosure of Confidential Information except as permitted hereunder. 
 6.4
Publicity. Upon the execution of this Agreement, Metabolex may issue a press release announcing the execution of this Agreement, the text of which is set forth in an Exhibit to the
PPAR-g License Agreement. After such initial press release, Metabolex may make periodic press releases or other public disclosures relating to the Agreement or developments under the Agreement at its
discretion. Metabolex shall not disclose the Confidential Information of Janssen in any press release and shall not use the name of Janssen or any Janssen Affiliate in any press release, in each case without the prior written approval of Janssen.
Janssen and its Affiliates shall not issue a press release or public announcement relating to the PPAR-d Product or this Agreement without the prior written approval of Metabolex, which approval
shall not be unreasonably withheld or delayed. 
 6.5 Publications. Metabolex and its Affiliates and sublicensees shall be free to
publish or present the results of any research or development carried out under this Agreement, provided that Metabolex shall provide Janssen the opportunity for prior review and comment on any such publication to the extent it would disclose
specific, proprietary Confidential Information of Janssen. In such latter case, Metabolex would provide Janssen the opportunity to review any proposed abstracts, manuscripts or presentations (including verbal presentations) that contain specific,
proprietary Confidential Information of Janssen at least thirty (30) days prior to its intended submission for publication, and to reasonably consider deleting such Confidential Information at Janssen’s reasonable request. 

ARTICLE 7 

REPRESENTATIONS AND WARRANTIES 

7.1 Representations and Warranties. Each Party represents and warrants to the other Party that, as of the Execution Date:

 (a) such Party is duly organized and validly existing under the laws of the state or jurisdiction of its incorporation and
has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof; 
 (b) such Party
has taken all corporate action necessary to authorize the execution and delivery of this Agreement and the performance its obligations under this Agreement; 

(c) this Agreement is a legal and valid obligation of such Party, binding upon such Party and enforceable against such Party in
accordance with the terms of this Agreement, except as enforcement may be limited by applicable bankruptcy or other debtor’s rights laws and regulations. The execution, delivery and performance of this Agreement by such Party does not violate
any agreement or instrument to which such Party is a party or by which such Party is bound, and does not violate any law or regulation of any court, governmental body or administrative or other agency having authority over such Party. All consents,
approvals and authorizations from all governmental authorities or other Third Parties required to be obtained by such Party in connection with this Agreement have been obtained, or will be obtained on or prior to the Effective Date; 

  
 15 

 (d) it has the full right, power and authority to enter into this Agreement, and
to perform its obligations hereunder; and 
 (e) has independently in good faith determined whether or not notification
is required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and will file such notification if deemed necessary. 

7.2 Janssen Warranties. Janssen represents and warrants that: 

(a) Exhibit C accurately identifies all Patent rights Controlled by Janssen as of the Execution Date
that claim a PPAR-d Compound, PPAR-d Product or its manufacture or use; 

(b) as of the Execution Date it has not granted any right, license or interest in or to the
PPAR-d Patents or PPAR-d Know-How that is in conflict with the rights and licenses granted to Metabolex under
this Agreement; and 
 (c) as of the Execution Date, other than Third Party allegations disclosed to Metabolex with respect to
the Replacement Patents, it owns or has a license to the PPAR-d Patents and PPAR-d Know-How and has the
ability to grant to Metabolex the licenses thereunder as granted in this Agreement. 
 7.3 Neither Party makes any
representation or warranty that development and marketing of PPAR-d Product shall be the exclusive means by which such Party will participate in development, manufacture, use and/or sale of
pharmaceutical products for treatment or prevention of metabolic syndrome, insulin resistance, diabetes, obesity, or dyslipidemia. 
 7.4
Disclaimer of Warranties. EXCEPT AS SET FORTH IN SECTIONS 7.1 AND 7.2, EACH PARTY EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
OR NON-INFRINGEMENT OF THIRD PARTY RIGHTS. IN PARTICULAR, THE PPAR-d COMPOUNDS AND PPAR-d PRODUCTS ARE PROVIDED
“AS IS” AND WITHOUT ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR ANY PARTICULAR PURPOSE OR ANY WARRANTY THAT THE USE OF PPAR-d PRODUCTS WILL NOT INFRINGE OR VIOLATE ANY PATENT OR OTHER PROPRIETARY RIGHTS OF ANY THIRD PARTY, OTHER THAN AS EXPRESSLY SET FORTH IN SECTION 7.2. 

ARTICLE 8 

INDEMNIFICATION 
 8.1
Indemnification by Metabolex. Metabolex shall indemnify, defend and hold Janssen and its Affiliates and each of their respective employees, officers, directors and agents (the “Janssen Indemnitees”) harmless from and
against any and all liability, damages, loss, cost or expense (including reasonable attorneys’ fees) arising out of Third Party claims, actions, proceedings, or suits against an Janssen Indemnitee resulting from (a) Metabolex’s
performance or non-performance of its obligations under this Agreement; (b) the development, manufacture, use, importation, promotion or sale of
PPAR-d Products and/or PPAR-d Compounds by Metabolex and/or its Affiliates, sublicensees, distributors, agents and customers; or (c) breach by
Metabolex of its representations and warranties set forth in Article 7; provided, however, Metabolex’s obligations pursuant to this Section 8.1 shall not apply to the extent such claims or suits result from the negligence or
willful misconduct of any of the Janssen Indemnitees or breach by Janssen of its representations and warranties set forth in Article 7. 

8.2 Indemnification by Janssen. Janssen shall indemnify, defend and hold Metabolex and its Affiliates and each of their respective
agents, employees, officers and directors (the “Metabolex Indemnitees”) harmless from and against any and all liability, damage, loss, cost or expense (including reasonable attorney’s fees) arising out of Third Party claims or
suits against a Metabolex Indemnitee resulting from (a) Janssen’s performance or non- performance 

  
 16 

 
of its obligations under this Agreement; or (b) breach by Janssen of its representations and warranties set forth in Article 7; provided, however, that Janssen’s obligations
pursuant to this Section 8.2 shall not apply to the extent that such claims or suits result from the negligence or willful misconduct of any of the Metabolex Indemnitees or breach by Metabolex of its representations and warranties set forth in
Article 7. 
 8.3 Notification of Claims; Conditions to Indemnification Obligations. As a condition to a Party’s right to
receive indemnification under this Article 8, it shall (a) promptly notify the other Party as soon as it becomes aware of a claim or action for which indemnification may be sought pursuant hereto, (b) cooperate with the indemnifying Party
in the defense of such claim or suit, and (c) permit the indemnifying Party to control the defense of such claim or suit, including without limitation the right to select defense counsel, which counsel shall be reasonably satisfactory to the
indemnified Party. In no event, however, may the indemnifying Party compromise or settle any claim or suit in a manner that admits fault or negligence on the part of the indemnified Party without the prior written consent of the indemnified Party.
The indemnifying Party shall have no liability under this Article 8 with respect to claims or suits settled or compromised without its prior written consent. 

8.4 Insurance. Metabolex at its own expense, will maintain during the term of the Agreement clinical trial insurance in
compliance with local regulations but in no event shall such coverage be in amounts less than [*] per occurrence. In addition, prior to any First Commercial Sale, Metabolex at its own expense, will maintain through termination of the Agreement and
for a period of at least [*] years thereafter, product liability insurance in amounts not less than [*] per occurrence and [*] annual aggregate. Such insurance shall include worldwide coverage. Janssen agrees during the term of the Agreement and for
a period of at least [*] years thereafter to maintain (a) workers’ compensation insurance for all of its employees, the limits of which shall be as required under statute; (b) commercial general liability insurance having limits of
not less than [*] in the aggregate and [*] per occurrence. Each Party shall provide evidence of insurance in accordance with this Section 8.4 to the other Party upon the request of the other Party. 

ARTICLE 9 
 TERM;
TERMINATION 
 9.1 Term and Expiration. The term of this Agreement shall commence upon the Effective Date and, unless
earlier terminated pursuant to Section 9.2 or 9.3, shall expire on a country-by-country and PPAR-d Product-by-PPAR-d Product basis, upon the expiration of the royalty term as set forth in Section 4.1(b) as to such
country with regard to such PPAR-d Product. Thereafter, the licenses granted to Metabolex in Section 2.1 as to such PPAR-d Product in such
country shall survive but shall be non-exclusive, fully-paid and royalty-free. 
 9.2 Termination
for Material Breach. 
 (a) If a Party breaches any of its material obligations under the Agreement, the Party not in default
may give to the breaching Party a written notice specifying the nature of the default, requiring it to make good or otherwise cure such breach, and stating its intention to terminate this Agreement if such breach is not cured. Subject to
Section 10.12 of this Agreement, if such breach is not cured within [*] (or [*] with respect to breach of a payment obligation) after the receipt of such notice, the Party not in default shall be entitled, without prejudice to any of its other
rights conferred under this Agreement, and in addition to any other remedies available to it by law or in equity, to terminate this Agreement by written notice to the other Party. 

(b) The right of a Party to terminate this Agreement, as herein above provided, shall not be affected in any way by its waiver or
failure to take action with respect to any prior default or breach. 
 9.3 Termination by Metabolex. Metabolex may
terminate this Agreement in its entirety for any reason or no reason upon at least [*] prior written notice to Janssen. 

  
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 9.4 “Anti-Shelving” Provision. 

(a) If Metabolex does not expend more than a de minimus amount of effort and resources on the research and/or development of
at least one (1) PPAR-d Product for any period of [*] or more, then (regardless of whether such failure constitutes a failure to expend Diligent Efforts) Janssen shall have the right to
terminate this Agreement on written notice with respect to all PPAR-d Products, provided that Metabolex does not commence and thereafter continue to expend a material amount of effort and resources
on the research and/or development of at least one (1) PPAR-d Product within [*] of such written notice by Janssen. This Section 9.4(a) shall automatically terminate at such time as
Metabolex (or its Affiliate or sublicensee) has [*] on a PPAR-d Product. 

(b) Notwithstanding Section 9.4(a), Janssen shall not have the right to terminate this Agreement pursuant to
Section 9.4(a) if Metabolex has delayed development of its PPAR-d Products due to either: 

(i) financial constraints that have caused Metabolex to delay its
PPAR-d programs as well as a majority of its other programs; provided, however, that: 

(1) Metabolex has provided written to notice to Janssen that it wishes to rely on this Section 9.4(b)(i); 

(2) [*] the written notice described in Section 9.4(b)(i)(1); and 

(3) Metabolex restarts development of its PPAR-d Products within [*]
after the conclusion of the [*] period of inactivity described in Section 9.4(a); or 
 (ii) safety or material
technical or regulatory cause; provided, however, that Metabolex in good faith intends to continue development of its PPAR-d Products as soon as practicable if and after the safety, technical and/or
regulatory issues are resolved. 
 9.5 Consequences of Termination. If a Party terminates this Agreement pursuant to
Section 9.2(a); Janssen terminates this Agreement pursuant to Section 9.4; or Metabolex terminates this Agreement pursuant to Section 9.3, then: 

(a) Licenses to Janssen. Metabolex shall grant to Janssen a worldwide, exclusive (even as to Metabolex and its
Affiliates), irrevocable, license (with full rights to sublicense) under the Metabolex Know-How and Metabolex Patents, to make, have made, import, use, offer for sale and sell PPAR-d Products and PPAR-d Compounds. Metabolex shall also grant to Janssen a worldwide, exclusive (even as to Metabolex and its Affiliates), irrevocable,
license (with full rights to sublicense) under Patents that are Controlled as of the Effective Date by Metabolex or a Metabolex Affiliate to the extent that such Patents include one or more claims that claim or cover the composition of matter,
formulation, manufacture or use of a PPAR-d Compound or PPAR-d Product as such exists on the date of termination, to make, have made, import, use,
offer for sale and sell such PPAR-d Compound and PPAR-d Product (as such may be further developed and
commercialized). Notwithstanding the foregoing, Janssen shall reimburse Metabolex for Third Party royalties and other out-of-pocket payments incurred by Metabolex as a
result of any Third-Party obligations of Metabolex triggered by supplying such licenses to Janssen. Further, the licenses granted in this Section 9.5(a) shall be [*] to the extent such licenses [*]
PPAR-d Products and PPAR-d Compounds. To the extent that such licenses [*] PPAR-d Products and
PPAR-d Compounds, the licenses shall be [*] and shall be [*]. 
 (b) Regulatory
Filings. Metabolex shall assign to Janssen, and will provide full copies of, all Regulatory Approvals and INDs, NDAs and other similar regulatory applications that relate to PPAR-d Products
and/or PPAR-d Compounds and are owned or Controlled by Metabolex or its Affiliates. Metabolex shall also take such actions and execute such other instruments, assignments and documents as may be
necessary to effect the transfer of rights thereunder to Janssen. 
 (c) Data Disclosure. Metabolex will provide to Janssen
copies of the relevant portions of all material reports and data, including clinical and non-clinical data and reports, obtained or generated by or on behalf of Metabolex or its Affiliates pursuant to this
Agreement to the extent that they relate to PPAR-d Products and PPAR- d

  
 18 

 
Compounds, within sixty (60) days of such termination unless otherwise agreed, and Janssen shall have the right to use any such Information in developing and commercializing PPAR-d Products and PPAR-d Compounds, and to license any Third Parties to do so. 

(d) Trademarks. If Metabolex used with regard to any PPAR-d Product or PPAR-d Compound in a country any trademark, tradename or logo related solely to a PPAR-d Product and/or
PPAR-d Compound (“Metabolex PPAR-d Product Mark(s)”) Metabolex shall assign to Janssen, at Janssen’s cost for the
transactional documents and any governmental fees for effecting such assignment (upon written request from Janssen within one (1) year of such termination under this Section 9.5), the Metabolex
PPAR-d Product Mark(s). For clarity, Janssen shall under no circumstance receive any rights under the housemarks of Metabolex or its Affiliates, except with respect to selling off existing inventory.

 (e) Third-Party Contracts. At Janssen’s request, Metabolex shall promptly provide to Janssen copies of all Third-Party
agreements with Metabolex or its Affiliates containing a license under Patents or patent applications claiming inventions or know-how specific to or used or incorporated into the development, manufacture
and/or commercialization of the PPAR-d Products and PPAR-d Compounds. At Janssen’s reasonable request, Metabolex shall reasonably cooperate with
Janssen to make available to Janssen the benefits of such Third-Party agreements, at Janssen’s expense. 
 (f) Further
Sales. In the event of any such termination, Metabolex may continue to sell its remaining inventory of the PPAR-d Product or PPAR-d Compound
for a period of [*] from the effective date of such termination, subject to the payment of royalties pursuant to Section 4.1. Metabolex covenants that promptly after such [*] period it and its Affiliates and former sublicensees hereunder shall
cease to sell, and thereafter shall not sell, any PPAR-d Products or PPAR-d Compounds. 

(g) Remaining Materials. At the end of the period described in Section 9.5(f) or if this Agreement is terminated prior to the
First Commercial Sale, at the request of Janssen, Metabolex shall transfer to Janssen, at a price to be agreed in good faith, which shall not be lower than [*] of Metabolex’s manufacturing cost for the
PPAR-d Products and/or PPAR-d Compounds or higher than [*] of Metabolex’s manufacturing cost for the
PPAR-d Products and/or PPAR-d Compounds, all quantities of PPAR-d Products and/or PPAR-d Compounds in the possession of Metabolex or its Affiliates (including, without limitation, clinical trial supplies and PPAR-d Products and/or PPAR-d Compounds intended for commercial sale). 
 (h)
PPAR-d Product/Compound Manufactured by Metabolex. If any PPAR-d Product and/or PPAR-d Compound was manufactured by Metabolex (including, without limitation, any testing and/or release) at the time of such termination, at Janssen’s request, Metabolex shall continue to manufacture such
PPAR-d Product and/or PPAR-d Compound for Janssen, unless such would be an undue burden on Metabolex, at a cost equal to [*] of Metabolex’s
manufacturing cost for the PPAR-d Product and/or PPAR-d Compound from the time of the effective date of termination, until such time (not to exceed
[*]) as Janssen is able to secure an equivalent alternative commercial manufacturing source from which quantities of PPAR-d Product and/or
PPAR-d Compound are registered for commercial sale in each country of the Territory; provided, however, that this Section 9.6(h) shall not be construed to require Metabolex to
manufacture the PPAR-d Product and/or PPAR-d Compound beyond the capacity of Metabolex as of the date of termination and provided that this
Section 9.5(h) shall not be construed to require Metabolex in its reasonable judgment to infringe any Patent of a Third Party for which it does not have an appropriate license. 

(i) Technical Assistance. Promptly after the effective date of such termination, Metabolex shall provide, at Janssen’s
request and expense (at Metabolex’s actual cost) technical assistance of the equivalent of up to a total of [*] full-time equivalent persons (i.e., a total not to exceed [*] of person-time), in the period from the effective date of such
termination until [*] months after such date, to provide technology transfer necessary for Janssen to commence or continue to commercially manufacture PPAR-d Products and/or PPAR-d Compounds, and a non-exclusive, royalty-free, perpetual license under any Know-How disclosed by Metabolex to Janssen in the
course of such activities to manufacture PPAR-d Products and/or PPAR-d Compounds. 

  
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 (j) No Further Representations. Subject to Sections 9.5(f) and (h), Metabolex
and its Affiliates shall (1) discontinue making any representation regarding its status as a licensee of or distributor for Janssen, for all PPAR-d Products and/or PPAR-d Compounds and (2) cease conducting any activities with respect to the marketing, promotion, sale or distribution of the PPAR-d Products and/or PPAR-d Compounds. 
 (k) Commercialization. Janssen shall have the sole right under the
PPAR-d Patents and PPAR-d Know-How to develop and commercialize the
PPAR-d Products and/or PPAR-d Compounds itself or with one or more Third Parties, and shall have the right, without obligation to Metabolex, to take
any such actions in connection with such activities as Janssen (or its designee), at its discretion, deems appropriate. 
 (l) Other
Consequences. Subject to Section 9.6 and this Section 9.5, each Party shall promptly return to the other Party all relevant records and materials in its possession or control containing or comprising the other Party’s
Confidential Information and to which the Party does not retain rights hereunder; provided, however, that each Party shall be entitled to retain copies of the other Party’s Confidential Information to the extent necessary to comply
with applicable regulatory obligations and shall be entitled to retain one copy of the other Party’s Confidential Information for archival purposes; (ii) all licenses granted by each Party to the other under this Agreement shall terminate
(except as set forth in this Section 9.5); (iii) all rights in any and all PPAR-d Patents and
PPAR-d Know-How shall revert to Janssen, and (iv) any and all claims and payment obligations that accrued prior to the date of such termination shall
survive such termination. 
 9.6 Accrued Rights; Surviving Obligations. 

(a) Termination, relinquishment or expiration of this Agreement for any reason shall be without prejudice to any rights that shall
have accrued to the benefit of a Party prior to such termination, or expiration. Such termination, relinquishment or expiration shall not relieve a Party from obligations that are expressly indicated to survive termination or expiration of this
Agreement. 
 (b) Without limiting the foregoing, 

(i) Sections [*] of this Agreement shall survive the expiration or termination of this Agreement for any reason; and 

(ii) Section [*] of this Agreement shall survive the expiration or termination of this Agreement for any reason but only to the
extent relating to matters commenced, or facts occurring, prior to the date of termination or relating to obligations or rights set forth in this Article 9. 

9.7 Rights in Bankruptcy. All licenses granted under this Agreement by Janssen are, and shall otherwise be deemed to be, for
purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of rights to “intellectual property” as defined under Section 101(34A) of the U.S. Bankruptcy Code. The Parties agree that Metabolex, as a licensee of such rights
under this Agreement, shall retain and may fully exercise all of its rights and elections under the U.S. Bankruptcy Code. The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against Janssen under the
U.S. Bankruptcy Code, Metabolex shall be entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual property (including all Information related to such
intellectual property and rights of reference with respect to Regulatory Approvals), and same, if not already in its possession, shall be promptly delivered to it (a) upon any such commencement of a bankruptcy proceeding upon its written
request therefore, unless Janssen continues to perform all of its obligations under this Agreement, or (b) if not delivered or granted under (a) above, following the rejection of this Agreement by or on behalf of Janssen upon written
request therefore by Metabolex. 
 9.8 Consequences of Material Breach by Janssen. If Janssen breaches a material
obligation under Section [*], Metabolex shall give Janssen a written notice specifying the nature of the default, requiring Janssen to make good or otherwise cure such breach, and stating its intention to terminate the rights specified below if such
breach is not cured. Subject to Section 10.12 of this Agreement, if such breach is not cured within [*] (or [*] with respect to breach of a payment obligation) after the receipt of such notice, and Metabolex does not wish to terminate the
Agreement in its entirety pursuant to Section 9.2(a), then Metabolex shall be entitled, without prejudice to any of its other rights conferred under this Agreement, and in addition to any other remedies available to it by law or in equity, to
[*] and/or [*] under this Agreement, upon written notice to Janssen. 

  
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 ARTICLE 10 

MISCELLANEOUS PROVISIONS 

10.1 Relationship of the Parties. Nothing in this Agreement is intended or shall be deemed to constitute a partnership, agency or
employer-employee relationship between the Parties. Neither Party shall incur any debts or make any commitments for the other. 
 10.2
Assignments. Except as expressly provided herein, neither this Agreement nor any interest hereunder shall be assignable, nor any other obligation delegable, by a Party without the prior written consent of the other; provided,
however, that a Party may assign this Agreement to any Affiliate or to any successor in interest by way of merger, acquisition or sale of all or substantially all of its assets provided that such successor agrees in writing to be
bound by the terms of this Agreement as if it were the assigning Party. This Agreement shall be binding upon the successors and permitted assigns of the Parties. Any assignment not in accordance with this Section 10.2 shall be void.
Notwithstanding the foregoing, in the event that a Party assigns this Agreement to its successor in interest by way of merger, acquisition, or sale of all or substantially all of its assets, the intellectual property rights of such successor in
interest, and of any of its Affiliates as of just prior to such assignment, as existing immediately prior to the closing of such transaction, shall be automatically excluded from the rights licensed to the other Party under this Agreement. 

10.3 Responsibility for Affiliates. Either Party may use one or more of its Affiliates to perform its obligations and duties
hereunder; provided however, that each Party shall remain liable hereunder for the prompt payment and performance of all its obligations hereunder. To the extent that the rights granted to a Party hereunder are exercised by an Affiliate of such
Party (or by any sublicensee of an Affiliate), such Affiliate or sublicensee shall be bound by the corresponding obligations of such Party. To the extent that this Agreement imposes obligations on Affiliates of a Party, such Affiliates shall perform
such obligations and such Party shall be responsible for any failure of such Affiliate to perform such obligations. 
 10.4 Further
Assurances. Each Party agrees to execute, acknowledge and deliver such further instruments and to do all such other reasonable acts as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

 10.5 Force Majeure. Neither Party shall be liable to the other for failure or delay in the performance of any of its
obligations under this Agreement for the time and to the extent such failure or delay is caused by earthquake, riot, civil commotion, war, strike, flood, act of terrorism, governmental acts or restrictions or any other reason that is beyond the
control of the respective Party. The Party affected by force majeure shall provide the other Party with full particulars thereof as soon as it becomes aware of the same (including its best estimate of the likely extent and duration of the
interference with its activities), and will use Diligent Efforts to overcome the difficulties created thereby and to resume performance of its obligations as soon as practicable. 

10.6 Entire Agreement of the Parties; Amendments. This Agreement and the attachments hereto constitute and contain the
entire understanding and agreement of the Parties respecting the subject matter hereof and cancel and supersede any and all prior negotiations, correspondence, understandings and agreements between the Parties, whether oral or written, regarding
such subject matter (including the Confidentiality Agreement entered into by and between Affiliates of Janssen and Metabolex [*] and the addendums thereto); provided, however, the Four-Party Nondisclosure Agreement, by and among an
Affiliate of Janssen, Metabolex and two Third Parties, dated [*], and a second Four-Party Nondisclosure Agreement, by and among an Affiliate of Janssen, Metabolex and two other Third Parties, dated [*] shall remain in force and effect in accordance
with their terms. No waiver, modification or amendment of any provision of this Agreement shall be valid or effective unless made in writing and signed by a duly authorized officer of each Party. 

  
 21 

 10.7 Captions. The captions to this Agreement are for convenience only,
and are to be of no force or effect in construing or interpreting any of the provisions of this Agreement. 
 10.8 Applicable
Law. This Agreement shall be governed by and interpreted in accordance with the laws of California, USA, excluding application of any conflict of laws principles that would require application of different law. Notwithstanding the
above, any dispute regarding and limited to validity or enforceability of any patent shall be governed by the patent laws of the jurisdiction in which such patent was granted. 

10.9 Disputes. 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. Either Party may initiate such informal dispute resolution by sending written notice of the dispute
to the other Party, and within ten (10) days after such notice appropriate representatives of the Parties shall meet for attempted resolution by good faith negotiations. If such representatives are unable to resolve promptly such disputed
matter, it shall be referred to the Chief Executive Officer of Metabolex and to the President of Janssen, for discussion and resolution. If such personnel are unable to resolve such dispute within thirty (30) days of initiating such
negotiations, unless otherwise agreed by the Parties, such dispute shall be finally settled under Sections 10.10 and 10.11. 
 10.10
Mediation 
 (a) Any dispute, controversy or claim arising out of or related to this agreement, or the interpretation,
application, breach, termination or validity thereof, including any claim of inducement by fraud or otherwise, which claim would, but for this provision, be submitted to arbitration shall, before submission to arbitration, first be mediated through non-binding mediation in accordance with the CPR Mediation Procedure then in effect of the CPR Institute for Dispute Resolution (“CPR”) available at www.cpradr.org/m_proced.htm, except where
that procedure conflicts with these provisions, in which case these provisions control. The mediation shall be conducted in San Francisco, CA and shall be attended by a senior executive with authority to resolve the dispute from each of the
operating companies that are Parties. 
 (b) The mediator shall be neutral, independent, disinterested and shall be selected
from a professional mediation firm such as ADR Associates or JAMS/ENDISPUTE or CPR. 
 (c) The Parties shall promptly confer in
an effort to select a mediator by agreement. In the absence of such an agreement within ten (10) days of initiation of the mediation, the mediator shall be selected by CPR as follows: CPR shall provide the Parties with a list of at least
fifteen (15) names from the CPR Panels of Distinguished Neutrals. Each Party shall exercise challenges for cause, two (2) peremptory challenges, and rank the remaining candidates within five (5) working days of receiving the CPR list.
The Parties may together interview the three top-ranked candidates for no more than one hour each and, after the interviews, may each exercise one peremptory challenge. The mediator shall be the remaining
candidate with the highest aggregate ranking. 
 (d) The mediator shall confer with the Parties to design procedures to conclude
the mediation within no more than forty-five (45) days after initiation. Under no circumstances may the commencement of arbitration under Section 10.11 be delayed more than forty-five (45) days by the mediation process specified
herein absent contrary agreement of the Parties. 
 (e) Each Party agrees not to use the period or pendency of the mediation to
disadvantage the other Party procedurally or otherwise. No statements made by either side during the mediation may be used by the other or referred to during any subsequent proceedings. 

(f) Each Party has the right to pursue provisional relief from any court, such as attachment, preliminary injunction,
replevin, etc. to avoid irreparable harm, maintain the status quo, or preserve the subject matter of the arbitration, even though mediation has not been commenced or completed. 

  
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 10.11 Dispute Resolution 

(a) Any dispute, claim or controversy arising from or related in any way to this Agreement or the interpretation, application,
breach, termination or validity thereof, including any claim of inducement of this Agreement by fraud or otherwise, will be submitted for resolution to arbitration pursuant to the rules then pertaining of the CPR Institute for Dispute Resolution for
Non-Administered Arbitration (available at www.cpradr.org/arb-rules.htm), or successor (“CPR”), except where those rules conflict with these provisions, in which case these provisions
control. The arbitration will be held in San Francisco, CA. 
 (b) The panel shall consist of three (3) arbitrators chosen
from the CPR Panels of Distinguished Neutrals (or, by agreement, from another provider of arbitrators) each of whom is a lawyer with at least fifteen (15) years experience with a law firm or corporate law department of over twenty-five
(25) lawyers or who was a judge of a court of general jurisdiction. In the event the aggregate damages sought by the claimant are stated to be less than $5 million, and the aggregate damages sought by the counterclaimant are stated to be
less than $5 million, and neither side seeks equitable relief, then a single arbitrator shall be chosen, having the same qualifications and experience specified above. Each arbitrator shall be neutral, independent, disinterested, impartial and
shall abide by the CPR-Georgetown Commission Proposed Model Rule for the Lawyer as Neutral available at www.cpradr.org/cpr-george.html. 

(c) The Parties agree to cooperate (1) to attempt to select the arbitrator(s) by agreement within forty-five (45) days
of initiation of the arbitration, including jointly interviewing the final candidates, (2) to meet with the arbitrator(s) within forty-five (45) days of selection and (3) to agree at that meeting or before upon procedures for
discovery and as to the conduct of the hearing which will result in the hearing being concluded within no more than nine (9) months after selection of the arbitrator(s) and in the award being rendered within sixty (60) days of the
conclusion of the hearings, or of any post-hearing briefing, which briefing will be completed by both sides within forty-five (45) days after the conclusion of the hearings. 

(d) In the event the Parties cannot agree upon selection of the arbitrator(s), the CPR will select arbitrator(s) as follows: CPR
shall provide the Parties with a list of no less than twenty-five (25) proposed arbitrators (fifteen (15) if a single arbitrator is to be selected) having the credentials referenced above. Within twenty-five (25) days of receiving
such list, the Parties shall rank at least sixty-five percent (65%) of the proposed arbitrators on the initial CPR list, after exercising cause challenges. The Parties may then interview the five (5) candidates (three (3) if a single
arbitrator is to be selected) with the highest combined rankings for no more than one (1) hour each and, following the interviews, may exercise one (1) peremptory challenge each. The panel will consist of the remaining three
(3) candidates (or one, if one arbitrator is to be selected) with the highest combined rankings. In the event these procedures fail to result in selection of the required number of arbitrators, CPR shall select the appropriate number of
arbitrators from among the members of the various CPR Panels of Distinguished Neutrals, allowing each side challenges for cause and three (3) peremptory challenges each. 

(e) In the event the Parties cannot agree upon procedures for discovery and conduct of the hearing meeting the schedule set forth
in paragraph (c) above, then the arbitrator(s) shall set dates for the hearing, any post-hearing briefing, and the issuance of the award in accord with the paragraph (c) schedule. The arbitrator(s) shall provide for discovery
according to those time limits, giving recognition to the understanding of the Parties that they contemplate reasonable discovery, including document demands and depositions, but that such discovery be limited so that the paragraph (c) schedule
may be met without difficulty. In no event will the arbitrator(s), absent agreement of the Parties, allow more than a total of ten (10) days for the hearing or permit either side to obtain more than a total of forty (40) hours of
deposition testimony from all witnesses, including both fact and expert witnesses, or serve more than twenty (20) individual requests for documents, including subparts, or twenty (20) individual requests for admission or interrogatories,
including subparts. Multiple hearing days will be scheduled consecutively to the greatest extent possible. 
 (f) The
arbitrator(s) must render their award by application of the substantive law of California and are not free to apply “amiable compositeur” or “natural justice and equity.” The arbitrator(s) shall render a written opinion setting
forth findings of fact and conclusions of law with the reasons therefore stated. A transcript of the evidence adduced at the hearing shall be made and shall, upon request, be made available to either Party. The arbitrator(s) shall have power to
exclude evidence on grounds of hearsay, prejudice beyond its probative value, redundancy, or irrelevance and no award shall be overturned by reason of such ruling on evidence. To the extent possible, the arbitration hearings and award will be
maintained in confidence. 

  
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 (g) In the event the panel’s award exceeds $5 million in monetary
damages or includes or consists of equitable relief, or rejects a claim in excess of that amount or for that relief, then the losing Party may obtain review of the arbitrators’ award or decision by a single appellate arbitrator (the
“Appeal Arbitrator”) selected from the CPR Panels of Distinguished Neutrals by agreement or, failing agreement within seven (7) working days, pursuant to the selection procedures specified in paragraph (d) above. If CPR
cannot provide such services, the Parties will together select another provider of arbitration services that can. No Appeal Arbitrator shall be selected unless he or she can commit to rendering a decision within forty-five (45) days
following oral argument as provided in paragraph (h). Any such review must be initiated within thirty (30) days following the rendering of the award referenced in (f) above. 

(h) The Appeal Arbitrator will make the same review of the arbitration panel’s ruling and its bases that the U.S. Court of
Appeals of the Circuit where the arbitration hearings are held would make of findings of fact and conclusions of law rendered by a district court after a bench trial and then modify, vacate or affirm the arbitration panel’s award or decision
accordingly, or remand to the panel for further proceedings. The Appeal Arbitrator will consider only the arbitration panel’s findings of fact and conclusions of law, pertinent portions of the hearing transcript and evidentiary record as
submitted by the Parties, opening and reply briefs of the Party pursuing the review, and the answering brief of the opposing Party, plus a total of no more than four (4) hours of oral argument evenly divided between the Parties. The Party
seeking review must submit its opening brief and any reply brief within seventy-five (75) and one hundred thirty (130) days, respectively, following the date of the award under review, whereas the opposing Party must submit its
responsive brief within one hundred ten (110) days of that date. Oral argument shall take place within five (5) months after the date of the award under review, and the Appeal Arbitrator shall render a decision
within forty-five (45) days following oral argument. That decision will be final and not subject to further review, except pursuant to the Federal Arbitration Act. 

(i) The Parties consent to the jurisdiction of the Federal District Court for the district in which the arbitration is held for
the enforcement of these provisions and the entry of judgment on any award rendered hereunder (including after review by the Appeal Arbitrator where such an appeal is pursued). Should such court for any reason lack jurisdiction, any court with
jurisdiction shall act in the same fashion. 
 (j) Each Party has the right before or, if the arbitrator(s) cannot hear
the matter within an acceptable period, during the arbitration to seek and obtain from the appropriate court provisional remedies such as attachment, preliminary injunction, replevin, etc. to avoid irreparable harm, maintain the status
quo, or preserve the subject matter of the arbitration. 
 (k) EACH PARTY HERETO WAIVES ITS RIGHT TO TRIAL BY JURY OF ANY ISSUE
RELATED TO THIS AGREEMENT. 
 (l) EACH PARTY HERETO WAIVES ANY CLAIM TO PUNITIVE, EXEMPLARY OR MULTIPLIED DAMAGES FROM THE OTHER
RESULTING FROM THIS AGREEMENT. 
 (m) EACH PARTY HERETO WAIVES ANY CLAIM OF CONSEQUENTIAL DAMAGES FROM THE OTHER RELATED TO THIS
AGREEMENT. 
 (n) NOTWITHSTANDING THE FOREGOING, NOTHING HEREIN IS INTENDED TO OR SHALL LIMIT THE INDEMNIFICATION OBLIGATION OF A
PARTY PROVIDED FOR UNDER ARTICLE 8. 
 10.12 Tolling of Time Periods. In the event that a controversy or claim has
been raised and is in the process of dispute resolution in accordance with Sections 10.9, 10.10 or 10.11, any applicable time period governing the underlying controversy or claim shall be tolled pending the outcome of the resolution process after
which the time period shall again begin to run. 
 10.13 Notices and Deliveries. Any notice, request, delivery, approval
or consent required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been sufficiently given if delivered in person, transmitted by telecopier (receipt verified) or by express courier service (signature
required) or five (5) days 

  
 24 

 
after it was sent by registered letter, return receipt requested (or its equivalent), to the Party to which it is directed at its address or facsimile number shown below or such other address or
facsimile number as such Party shall have last given by notice to the other Parties. 
 If to Janssen, addressed to: 

Janssen Pharmaceutica NV 
 30
Turnhoutseweg 
 2340 Beerse, Belgium 

Attention of: Managing Director 

Fax: +32 14 60 8296 

With copy to: 

Johnson & Johnson Law Department Europe 

6 Lenneke Marelaan 
 1932 St.
Stevens Woluwe, Belgium 
 Attention of: Head of the Law Department Europe 

Fax: +32 2 749 2558 
 If to Metabolex, addressed
to: 
 Metabolex, Inc. 
 3876
Bay Center Place 
 Hayward, CA 94545 

Attention of: General Counsel 

Fax: (510) 293-6853 
 10.14
Waiver. A waiver by either Party of any of the terms and conditions of this Agreement in any instance shall not be deemed or construed to be a waiver of such term or condition for the future, or of any subsequent breach hereof. All
rights, remedies, undertakings, obligations and agreements contained in this Agreement shall be cumulative and none of them shall be in limitation of any other remedy, right, undertaking, obligation or agreement of either Party. 

10.15 Translation. This Agreement is in English language only, which language shall be controlling in all respects, and all versions
hereof in any other language shall be for accommodation only and shall not be binding upon the Parties. All communications and notices to be made or given pursuant to this Agreement, and any dispute proceeding related to or arising hereunder, shall
be in the English language. If there is a discrepancy between any translation of this Agreement and this Agreement, this Agreement shall prevail. 

10.16 Export Laws. Notwithstanding anything to the contrary contained herein, all obligations of Metabolex and Janssen are
subject to prior compliance with U.S. export regulations and such other U.S. laws and regulations as may be applicable, and to obtaining all necessary approvals required by the applicable agencies of the government of the U.S. or the European Union.
Metabolex and Janssen, respectively, shall each use its reasonable efforts to obtain such approvals for its own activities. Each Party shall cooperate with the other Party and shall provide assistance to the other Party as reasonably necessary to
obtain any required approvals. 
 10.17 Severability. When possible, each provision of this Agreement will be interpreted
in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of this Agreement. The Parties shall make a good faith effort to replace the invalid or unenforceable provision with a valid one that conforms as nearly as possible with the original intent of the
Parties. 

  
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 10.18 No Implied Licenses. Except as expressly and specifically provided
under this Agreement, the Parties agree that neither Party is granted any implied rights to or under any of the other Party’s current or future patents, trade secrets, copyrights, moral rights, trade or service marks, trade dress, or any other
intellectual property rights. 
 10.19 Third Party Beneficiaries. Except for the rights of the Metabolex Indemnitees and
Janssen Indemnitees set forth in Article 8, all rights, benefits and remedies under this Agreement are solely intended for the benefit of Metabolex and Janssen, and no Third Party shall have any rights whatsoever to (i) enforce any obligation
contained in this Agreement; (ii) seek a benefit or remedy for any breach of this Agreement; or (iii) take any other action relating to this Agreement under any legal theory, including but not limited to, actions in contract, tort
(including but not limited to negligence, gross negligence and strict liability), or as a defense, setoff or counterclaim to any action or claim brought or made by the Parties. 

10.20 Advice of Counsel. Metabolex and Janssen have each consulted counsel of their choice regarding this Agreement, and
each acknowledges and agrees that this Agreement shall not be deemed to have been drafted by one Party or another and will be construed accordingly. 

10.21 Other Obligations. Except as expressly provided in this Agreement or as separately agreed upon in writing between
Metabolex and Janssen, each Party shall bear its own costs incurred in connection with the implementation of the obligations under this Agreement. 

10.22 Governmental Matters. 

(a) To the extent, if any, that a Party concludes in good faith that it is required to file or register this Agreement or a
notification thereof with any governmental authority, including without limitation the U.S. Securities and Exchange Commission, the U.S. Department of Justice, the U.S. Federal Trade Commission and the Competition Directorate of the Commission of
the European Communities, in accordance with applicable laws and regulations, such Party may do so, and the other Party shall cooperate in such filing or notification and shall execute all documents reasonably required in connection therewith, at
the expense of the requesting Party. The Parties shall promptly notify each other as to the activities or inquires of any such governmental authority relating to this Agreement, and shall cooperate, to respond to any request for further information
therefrom at the expense of the requesting Party. 
 (b) Metabolex may, at its expense, register the exclusive license granted
under this Agreement in any country or community or association of countries. Janssen shall reasonably cooperate in such registration at Metabolex’s expense. Upon request by Metabolex, Janssen agrees promptly to execute any “short
form” licenses developed in a form reasonably acceptable to both Metabolex and Janssen and reasonably submitted to it by Metabolex from time to time in order to effect the foregoing registration in such country. No such “short form”
license shall be deemed to amend or be used to interpret this Agreement. If there is any conflict between such a license or other recordation document and this Agreement, this Agreement shall control. 

10.23 Counterparts. This Agreement may be executed simultaneously in any number of counterparts, any one of which need not
contain the signature of more than one Party but all such counterparts taken together shall constitute one and the same agreement. 
 [The
remainder of this page has been intentionally left blank] 

  
 26 

 IN WITNESS
WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized officers as of the day and year first above written. 

 

			
	JANSSEN PHARMACEUTICA NV
		
	By:	 	 /s/ Didier De Chaffoy De Courcelles

	Name:	 	Didier De Chaffoy De Courcelles
	Title:	 	Board member
		
	By:	 	 /s/ René Hex

	Name:	 	René Hex
	Title:	 	Board member
	
	METABOLEX, INC.
		
	By:	 	 /s/ Harold Van Wart

	Name:	 	Harold Van Wart
	Title:	 	Chief Executive Officer

  

			
	Exhibit A:	  	Weighted Average Percentage Discount
	Exhibit B:	  	Description of Numbered PPAR-d Compounds
	Exhibit C:	  	PPAR-dPatents
	Exhibit D:	  	Materials to be Transferred
	Exhibit E:	  	Description of [*]
	Exhibit F:	  	Replacement Compound Patents

  
 27 

 EXHIBIT A 

WEIGHTED AVERAGE PERCENTAGE DISCOUNT 

(see attached) 
 [*] 

  
 28 

 EXHIBIT B 

DESCRIPTION OF
NUMBERED PPAR-d COMPOUNDS 
 [*]

  
 29 

 EXHIBIT C 

PPAR-d PATENTS 

[*] 

  
 30 

 EXHIBIT D 

MATERIALS TO BE TRANSFERRED 

[*] 

  
 31 

 EXHIBIT E 

DESCRIPTION OF [*] 

[*] 

  
 32 

 EXHIBIT F 

REPLACEMENT COMPOUND PATENTS 

[*] 

  
 33

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