EX-10.2




 Exhibit 10.2 

ZYMEWORKS INC. 

INDUCEMENT STOCK OPTION AND EQUITY COMPENSATION PLAN 

(as amended and restated through the Arrangement Effective Time) 











 TABLE OF CONTENTS 

 

							
	 ARTICLE I INTERPRETATION
	  	 	1	 
			
	 Section 1.1
	 	Definitions	  	 	1	 
	 Section 1.2
	 	Interpretation	  	 	5	 
		
	 ARTICLE II GENERAL PROVISIONS
	  	 	5	 
			
	 Section 2.1
	 	Administration	  	 	5	 
	 Section 2.2
	 	Shares Reserved	  	 	6	 
	 Section 2.3
	 	Amendment and Termination	  	 	7	 
	 Section 2.4
	 	Compliance with Legislation	  	 	8	 
	 Section 2.5
	 	Effective Time and Termination	  	 	9	 
	 Section 2.6
	 	Tax Withholdings and Deductions	  	 	9	 
	 Section 2.7
	 	Non-Transferability	  	 	9	 
	 Section 2.8
	 	Participation in this Plan	  	 	10	 
	 Section 2.9
	 	Notice	  	 	10	 
	 Section 2.10
	 	Right to Issue Other Shares	  	 	11	 
	 Section 2.11
	 	Quotation of Shares	  	 	11	 
	 Section 2.12
	 	No Fractional Shares	  	 	11	 
	 Section 2.13
	 	Governing Law	  	 	11	 
		
	 ARTICLE III OPTIONS
	  	 	11	 
			
	 Section 3.1
	 	Grant	  	 	11	 
	 Section 3.2
	 	Exercise Price	  	 	12	 
	 Section 3.3
	 	Vesting	  	 	12	 
		
	 ARTICLE IV EXERCISE & EXPIRY & CHANGE OF CONTROL
	  	 	12	 
			
	 Section 4.1
	 	Conditions of Exercise	  	 	12	 
	 Section 4.2
	 	Exercise Period	  	 	13	 
	 Section 4.3
	 	Termination Date	  	 	14	 
	 Section 4.4
	 	Change of Control	  	 	15	 
		
	 ARTICLE V OTHER AWARDS
	  	 	17	 
			
	 Section 5.1
	 	General	  	 	17	 
	 Section 5.2
	 	Restricted Stock	  	 	17	 
	 Section 5.3
	 	Restricted Stock Units	  	 	17	 
	 Section 5.4
	 	Other Share-Based Awards; Performance Vesting	  	 	18	 


  
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 ARTICLE I 

INTERPRETATION 

Section 1.1    Definitions 

For the purposes of this Plan, the following terms shall have the following meanings: 

(a)    “Affiliate” or “Affiliated” means, with respect to any specified Person,
any other Person which directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, such specified Person (for the purposes of this definition, “control” (including, with
correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise); 

(b)    “Arrangement Effective Time” has the meaning given to that term in the Transaction Agreement. 

(c)    “Authorized Leave” means any leave of absence (paid or unpaid) approved in writing by the
Corporation for a period of more than four (4) weeks that occurs while the Participant continues to be employed as an employee by the Corporation and includes any parental leave, short term disability or other bona fide paid or unpaid leave of
absence or sabbatical period; 
 (d)    “Award” means a grant of an Option or of an Other Award
hereunder. Each Award under the Plan is intended to qualify as an employment inducement award under Rule 303A.08. 

(e)    “Board” means the board of directors of the Corporation as constituted from time to time, or a
committee thereof to which authority has been delegated by the board of directors with respect to any particular functions of the board of directors, as set forth in Section 2.1(c) herein; 

(f)    “Business Day” means a day, other than a Saturday or Sunday, on which banking institutions in
Vancouver, British Columbia are not authorized or obligated by law to close; 
 (g)    “Change of
Control” means the happening, in a single transaction or in a series of related transactions, of any of the following events: 

(i)    any transaction (other than a transaction described in clause (ii) below) pursuant to which any
person or group of persons acting jointly or in concert acquires the direct or indirect beneficial ownership of securities of the Corporation representing 50% or more of the aggregate voting power of all of the Corporation’s then issued and
outstanding securities entitled to vote in the election of directors of the Corporation; 

  
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 (ii)    there is consummated an arrangement,
amalgamation, merger, consolidation or similar transaction involving (directly or indirectly) the Corporation and, immediately after the consummation of such arrangement, amalgamation, merger, consolidation or similar transaction, the shareholders
of the Corporation immediately prior thereto do not beneficially own, directly or indirectly, either (A) outstanding voting securities representing more than 50% of the combined outstanding voting power of the surviving or resulting entity in
such arrangement, amalgamation, merger, consolidation or similar transaction or (B) more than 50% of the combined outstanding voting power of the parent of the surviving or resulting entity in such arrangement, amalgamation, merger,
consolidation or similar transaction, in each case in substantially the same proportions as their beneficial ownership of the outstanding voting securities of the Corporation immediately prior to such transaction; 

(iii)    the sale, lease, exchange, license or other disposition of all or substantially all of the
Corporation’s assets to a person other than (A) a disposition to a Person that was an Affiliate of the Corporation at the time of such sale, lease, exchange, license or other disposition or (B) a sale, lease, exchange, license or
other disposition to an entity, more than fifty percent (50%) of the combined voting power of the voting securities of which are beneficially owned by Shareholders of the Corporation in substantially the same proportions as their beneficial
ownership of the outstanding voting securities of the Corporation immediately prior to such sale, lease, exchange, license or other disposition; 

(iv)    the passing of a resolution by the Board or Shareholders to substantially liquidate the assets of
the Corporation or wind up the Corporation’s business or significantly rearrange its affairs in one or more transactions or series of transactions or the commencement of proceedings for such a liquidation,
winding-up or re-arrangement (except where such re-arrangement is part of a bona fide reorganization of the Corporation in
circumstances where the business of the Corporation is continued and the shareholdings remain substantially the same following the re-arrangement); 

(v)    individuals who, on the Effective Time, are members of the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the members of the Board; provided, however, that if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a
majority vote of the members of the Incumbent Board then still in office, such new member will, for purposes of this Plan, be considered as a member of the Incumbent Board; or 

(vi)    any transaction, plan, scheme, reorganization or arrangement whereby an entity acquires, directly
or indirectly, greater than fifty percent (50%) of the Zymeworks Common Shares (as defined in the Transaction Agreement), such that upon the Arrangement Effective Time, the Corporation is a successor to Zymeworks (as defined in the Transaction
Agreement) under this Plan. For the avoidance of doubt, the addition of this clause (vi) is effective as of immediately prior to, and contingent upon, the Arrangement Effective Time. 

(h)    “Code” has the meaning given to that term in Appendix 1; 

  
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 (i)    “Corporation” means Zymeworks Inc., a Delaware
corporation, and its respective successors and assigns; 
 (j)    “Date of Grant” means the date on
which a particular Award is granted by the Board as evidenced by the Grant Agreement pursuant to which the particular Award was granted; 

(k)    “Effective Time” has the meaning given to that term in Section 2.5; 

(l)    “Eligible Person” means any employee of the Corporation or any of its direct or indirect
subsidiaries to whom the grant of the Award or Awards to the Employee is a material inducement to the Employee’s entering into employment with the Company (or any of its Parent or Subsidiaries, as applicable) in accordance with Rule 303A.08,
including grants to new employees in connection with a merger or acquisition; 
 (m)    “Exercise
Notice” means an election to exercise Options granted to a Participant under this Plan, in the case of Options substantially in the form attached as Exhibit “B” to the Grant Agreement, as may be amended from time to time by the
Corporation; 
 (n)    “Exercise Period” means the period from the Vesting Date to the close of
business on the Expiry Date during which a particular Option may be exercised in the manner described in Section 4.1 in the case of Options; 

(o)    “Exercise Price” has the meaning given to that term in Section 3.2; 

(p)    “Expire” means, with respect to an Option, the termination of such Option, on the occurrence of
which such Option is void, incapable of exercise and of no value whatsoever; and Expires, Expired and Expiry have a similar meaning; 

(q)    “Expiry Date” means the date on which an Option Expires; 

(r)    “Fair Market Value” means, on any particular day, the Market Price of a Share, but if the Shares
are not listed and posted for trading on an applicable stock exchange at the relevant time, it shall be the fair market value of the Share, as determined by the Board acting in good faith; 

(s)    “Grant Agreement” means an agreement between the Corporation and a Participant under which an
Award is granted, in the case of Options substantially in the form attached hereto as Schedule “A”, as may be amended from time to time by the Corporation; 

(t)    “Incapacity” has the meaning given to that term in Section 4.3(c); 

(u)    “Incumbent Board” has the meaning given to that term in Section 1.1(f); 

(v)     “Market Price” means, on any particular day, closing sale price of a Share on the Primary Stock
Exchange for such day (or, if such day is not a trading day), the closing sale price reported for the immediately preceding trading day. Notwithstanding the foregoing, the Corporation may convert a Market Price denominated in United States currency
to Canadian currency, or vice-versa, at the Bank of Canada daily average exchange rate on the day prior to the particular day, and the converted amount shall be the Market Price; 

  
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 (w)    “Non-Executive
Director” means any director of the Corporation who is not an employee or officer of the Corporation or any Affiliate; 

(x)    “NYSE” means the New York Stock Exchange; 

(y)    “Option” means an option to purchase a Share that is granted to an Eligible Person pursuant to the
terms of this Plan; 
 (z)    “Other Award” means an Award granted under Article 5 hereof. 

(aa)    “Participant” means an Eligible Person to whom an Award has been granted; 

(bb)    “Person” means any individual, partnership, corporation, company, association, trust, joint
venture, limited liability company, unincorporated organization, entity or division or any government, governmental department or agency or political subdivision thereof; 

(cc)    “Plan” means this Zymeworks Inc. Inducement Stock Option and Equity Compensation Plan, originally
effective January 5, 2022, as amended through the Arrangement Effective Time and as it may be further amended from time to time; 

(dd)    “Primary Stock Exchange” means a Stock Exchange where the majority of the trading volume and
value of the Shares has occurred for the five (5) trading days immediately preceding the relevant date; 

(ee)    “Rule 303A.08” means the NYSE Listed Company Manual Rule 303A.08. Reference to Rule 303A.08 will
include the terms and conditions of Rule 303A.08 and any applicable interpretive material and other guidance issued under Rule 303A.08. 

(ff)    “Share” means a share of common stock of the Corporation; 

(gg)    “Share Compensation Arrangement” means any stock option, stock option plan, employee stock
purchase plan, long-term incentive plan or any other compensation or incentive mechanism of the Corporation involving the issuance or potential issuance of securities of the Corporation from treasury, including without limitation a Share purchase
from treasury which is financially assisted by the Corporation by way of a loan, guarantee or otherwise, but does not include any such arrangement which does not involve the issuance from treasury or potential issuance from treasury of securities of
the Corporation; 
 (hh)    “Shareholders” means holders of Shares; 

(ii)    “Stock Exchange” means the NYSE and, if the Shares are listed and posted for trading on another
stock exchange, the stock exchange(s) on which the Shares are listed or posted for trading; 

  
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 (jj)    “Surrender” has the meaning given to that term
in Section 4.1(c); 
 (kk)    “Surrender Notice” has the meaning given to that term in
Section 4.1(c); 
 (ll)    “Termination Date” has the meaning given to that term in
Section 4.3(c); 
 (mm)    “Transaction Agreement” means the Restated and Amended Transaction
Agreement dated August 18, 2022 by and among the Corporation (then-referred to as Zymeworks Delaware Inc.), Zymeworks Inc., a company then-existing under the Business Corporations Act (British Columbia), Zymeworks Callco ULC, and Zymeworks
ExchangeCo Ltd. as the same may be amended, modified or supplemented from time to time in accordance therewith, prior to the Arrangement Effective Time; and 

(nn)    “Vesting Date” means the date or dates determined in accordance with the terms of the Grant
Agreement entered into in respect of such Award (with respect to Options as described in Section 3.3), on and after which a particular Award, or any part thereof, becomes non-forfeitable and/or may be
exercised (as the case may be), subject to amendment or acceleration from time to time in accordance with the terms hereof or the terms of the Grant Agreement. 

Section 1.2    Interpretation 

(a)    Whenever the Board is to exercise discretion or authority in the administration of the terms and conditions of this
Plan, the term “discretion” or “authority” means the sole and absolute discretion of the Board. 

(b)    In the Plan, words importing the singular shall include the plural and vice versa and words importing any gender
include any other gender. 
 (c)    Unless otherwise specified in the Participant’s Grant Agreement, all references
to money amounts are to (x) with respect to Awards granted prior to the Arrangement Effective Time, Canadian currency, and (y) with respect to Awards granted on or after the Arrangement Effective Time, U.S. dollars. 

(d)    As used herein, the terms “Article” and “Section” mean and refer to the specified Article and
Section of this Plan, respectively. 
 (e)    The words “including” and “includes” mean
“including (or includes) without limitation”. 
 ARTICLE II 

GENERAL PROVISIONS 

Section 2.1    Administration 

(a)    The Board shall administer this Plan. Nothing contained herein shall prevent the Board from adopting other or
additional Share Compensation Arrangements or other compensation arrangements. 

  
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 (b)    Subject to the terms and conditions set forth herein, the Board
has the authority: (i) to grant Awards to Eligible Persons (which Awards will be intended as a material inducement to the individual becoming an Eligible Person, including grants to new employees); (ii) to determine the terms, including the
limitations, restrictions, vesting period and conditions, if any, of such grants; (iii) to interpret this Plan and all agreements entered into hereunder; (iv) to adopt, amend and rescind such administrative guidelines and other rules
relating to this Plan as it may from time to time deem advisable; and (v) to make all other determinations and to take all other actions in connection with the implementation and administration of this Plan as it may deem necessary or
advisable. The Board’s guidelines, rules, interpretations and determinations shall be conclusive and binding upon the Corporation, its subsidiaries and all Participants, Eligible Persons and their legal, personal representatives and
beneficiaries. 
 (c)    Notwithstanding the foregoing or any other provision contained herein, the Board shall have the
right to delegate the administration and operation of this Plan, in whole or in part, to a committee thereof. For greater certainty, any such delegation by the Board may be revoked or amended at any time at the Board’s sole discretion. 

(d)    No member of the Board or any person acting pursuant to authority delegated by it hereunder shall be liable for any
action or determination in connection with the Plan made or taken in good faith and each member of the Board and each such person shall be entitled to indemnification by the Corporation with respect to any such action or determination. 

(e)    The Board may adopt such rules or regulations and vary the terms of this Plan and any grant hereunder as it
considers necessary to address tax or other requirements of any applicable U.S. or non-U.S. jurisdiction. 

(f)    The Plan shall not in any way fetter, limit, obligate, restrict or constrain the Board with regard to the allotment
or issue of any Shares or any other securities in the capital of the Corporation other than as specifically provided for in the Plan. 

Section 2.2    Shares Reserved 

(a)    Subject to the other provisions of this Section 2.2, the maximum number of Shares that may be delivered
pursuant to Awards granted under the Plan shall be 750,000. 
 (b)    For the purposes of calculating the maximum
aggregate number of Shares which may be delivered under this Plan pursuant to Section 2.2(a), following the Expiry, cancellation or other termination of any Awards under this Plan, a number of Shares equal to the number of shares subject to
such Awards, cancelled or terminated shall immediately and automatically become available for issuance in respect of Awards that may be subsequently granted under this Plan. 

(c)    The Corporation shall at all times reserve for issuance and keep available such number of Shares as shall be
sufficient to satisfy the requirements of this Plan. 
 (d)    If there is a change in the outstanding Shares by reason
of any stock dividend or split, or in connection with a reclassification, reorganization or other change of Shares, consolidation, distribution (other than an ordinary course dividend in cash or Shares, but including


  
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for greater certainty shares or equity interests in a subsidiary or business unit of the Corporation or one of its subsidiaries or cash proceeds of the disposition of such a subsidiary or
business unit), merger or amalgamation or similar corporate transaction, the Board shall make, subject to any required approval of the Stock Exchange, the appropriate substitution or adjustment in order to maintain the Participants’ economic
rights in respect of their Awards in connection with such change, including without limitation: 

(i)    adjustments to the Exercise Price without any change in the total price applicable to the
unexercised portion of the Option, but with a corresponding adjustment in the price for each Share covered by the Option; 

(ii)    adjustments to the number of Shares to which a Participant is entitled upon exercise or vesting of
an Award; 
 (iii)    adjustments permitting the immediate exercise of any outstanding Options that are
not otherwise exercisable or the immediate vesting of Other Awards; and 
 (iv)    adjustments to the
number or kind of Shares or other securities reserved for issuance pursuant to the Plan and to the number or kind of Shares or other securities or other property issuable upon the exercise or vesting of Awards. 

Section 2.3    Amendment and Termination 

(a)    The Board may, in its sole discretion, suspend or terminate the Plan at any time or from time to time and/or amend
or revise the terms of the Plan or of any Award granted under the Plan and any Grant Agreement relating thereto, provided that such suspension, termination, amendment or revision shall: 

(i)    not adversely alter or impair any Award previously granted except as permitted by the terms of this
Plan; 
 (ii)    be in compliance with applicable law and subject to any regulatory approvals including,
where required, the approval of the Stock Exchange; or 
 (iii)    be subject to Shareholder approval,
where required by law, the requirements of the Stock Exchange or this Plan. 
 (b)    If the Plan is terminated, the
provisions of the Plan and any administrative guidelines and other rules and regulations adopted by the Board and in force with respect to outstanding Awards will continue in effect as long as any such Award or any rights pursuant thereto remain
outstanding and, notwithstanding the termination of the Plan, the Board will remain able to make such interpretations and amendments to the Plan or the Awards as they would have been entitled to make if the Plan were still in effect. 

  
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 (c)    Subject to Section 2.3(a), the Board may from time to time,
in its discretion, make changes to the Plan or any Award, which may include but are not limited to: 

(i)    any amendment of a “housekeeping” nature, including without limitation those made to
clarify the meaning of an existing provision of the Plan, correct or supplement any provision of the Plan that is inconsistent with any other provision of the Plan, correct any grammatical or typographical errors or amend the definitions in the Plan
regarding administration of the Plan; 
 (ii)    a change to the vesting provisions of the Plan or any
Award; 
 (iii)    a change to the provisions governing assignability and the effect of termination of a
Participant’s employment, contract or office; 
 (iv)    the addition of a form of financial
assistance and any amendment to a financial assistance provision which is adopted; 
 (v)    a change to
advance the date on which any Option may be exercised under the Plan; and 
 (vi)    an amendment of the
Plan or an Award as necessary to comply with applicable law or the requirements of the Stock Exchange or any other regulatory body having authority over the Corporation, the Plan, the Participants or the Shareholders. 

(d)    Shareholder approval is required for any reduction in the Exercise Price of an Option after the Option has been
granted or any cancellation of such Option and the substitution of that Option with a new Option with a reduced Exercise Price, except in the case of an adjustment pursuant to Section 2.2(d). 

Section 2.4    Compliance with Legislation 

(a)    The Plan (including any amendments thereto), the terms of the grant of any Award under the Plan, the grant and
exercise of any Award and the Corporation’s obligation to sell and deliver Shares upon the vesting or exercise of any Award, shall be subject to all applicable U.S. and non-U.S. federal, provincial, state
and local laws, rules and regulations, the rules and regulations of the Stock Exchange and any other stock exchange on which the Shares are listed or posted for trading and to such approvals by any regulatory or governmental agency as may, in the
opinion of counsel to the Corporation, be required. The Corporation shall not be obliged by any provision of the Plan or the grant of any Award hereunder to issue or sell Shares in violation of such laws, rules and regulations or any condition of
such approvals. 
 (b)    No Award shall be granted, and no Shares shall be issued or sold hereunder, where such grant,
issue or sale would require registration of the Plan or of Shares under the securities laws of any non-U.S./non-Canadian jurisdiction, and any purported grant of any
Award or purported issue or sale of Shares hereunder in violation of this provision shall be void. 
 (c)    The
Corporation shall have no obligation to issue any Shares pursuant to this Plan unless upon official notice of issuance such Shares shall have been duly listed with the Stock Exchange (and any other stock exchange on which the Shares are listed or
posted for trading). Shares issued and sold to Participants pursuant to the exercise or vesting of Awards may be subject to limitations on sale or resale under applicable securities laws. 

  
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 (d)    If Shares cannot be issued to a Participant upon the exercise or
vesting of an Award due to legal or regulatory restrictions, the obligation of the Corporation to issue such Shares shall terminate and any funds paid to the Corporation in connection with the exercise of an Option will be returned to the applicable
Participant as soon as practicable. 
 Section 2.5    Effective Time and Termination 

The Plan became effective at the time (the “Effective Time”) it was originally approved by the Board of Zymeworks. No Awards
may be issued under the Plan from and after the tenth anniversary of the Effective Time, provided that Awards issued prior to such date shall remain in effect following such date in accordance with their terms. The amendment and restatement through
the Arrangement Effective Date is effective as of, and contingent upon, the Arrangement Effective Time, except that the changes to Section 1.1(g)(vi) are effective as of immediately prior to, and contingent upon, the Arrangement Effective Time.

 Section 2.6    Tax Withholdings and Deductions 

The Corporation shall have the authority and the right to deduct or withhold from any amount otherwise payable to a Participant, or require a
Participant to remit to the Corporation, an amount sufficient for the Corporation to be able to comply with the applicable provisions of any U.S. or non-U.S. federal, provincial, state or local law relating to
the withholding of tax or other required deductions (“Tax Obligations”) arising as a result of any Award. Notwithstanding any other provision contained herein, the delivery of Shares with respect to any Award granted under this Plan is
subject to the condition that if at any time the Corporation determines, in its discretion, that the satisfaction of the Tax Obligations is necessary or desirable in respect of such delivery, such delivery is not required unless provision for the
Tax Obligation has been made to the satisfaction of the Corporation. In such circumstances, the Corporation may require that a Participant pay to the Corporation, in addition to the Exercise Price for the Shares (if applicable), such amount as the
Corporation is obliged to remit to the relevant taxing authority in respect of the Award. Any such additional payment is due no later than the date as of which any amount with respect to the Award first becomes includable in the gross income of the
Participant for tax purposes. To the extent permitted by the Board, a Participant may direct a portion of the Shares acquired to be sold by a broker to satisfy the Tax Obligations and the funds from such sale to be paid to the Corporation to be
remitted to the relevant taxing authority. 

Section 2.7    Non-Transferability 

Except as set forth herein, Awards are not transferable. Options may be exercised only by: 

(a)    the Participant to whom the Options were granted; 

(b)    with the Board’s prior written approval and subject to such conditions as the Corporation may stipulate (which
may include conditions with respect to compliance with applicable securities law), such Participant’s family or retirement savings trust or any registered retirement savings plans or registered retirement income funds of which the Participant
is and remains the annuitant; 

  
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 (c)    upon the Participant’s death, by the legal representative of
the Participant’s estate; or 
 (d)    upon the Participant’s Incapacity, the legal representative having
authority to deal with the property of the Participant; 
 provided that any such legal representative shall first deliver evidence satisfactory to the
Corporation of entitlement to exercise any Option. A person exercising an Option may subscribe for Shares only in the person’s own name or in the person’s capacity as a legal representative. 

Section 2.8    Participation in this Plan 

(a)    No Participant has any claim or right to be granted an Award (including, without limitation, an Award granted in
substitution for any Award that has expired pursuant to the terms of this Plan), and the granting of any Award does not and is not to be construed as giving a Participant a right to continued employment or to remain an employee of the Corporation or
an Affiliate of the Corporation. Nothing contained in this Plan or in any Award granted under this Plan shall interfere in any way with the rights of the Corporation or an Affiliate of the Corporation in connection with the employment, retention or
termination of any such person. 
 (b)    No Participant has any rights or privileges as a shareholder of the
Corporation in respect of Shares with respect to any Award until the allotment and issuance to the Participant of certificates representing such Shares or the entry of such Participant’s name on the share register of the Corporation as the
holder of Shares and that person becomes the holder of record of those Shares. The Participant or the Participant’s legal representative shall not, by reason of the grant of any Award (other than an Award of Restricted Stock as set forth in
Article 5), be considered to be a shareholder of the Corporation until shares have been issued in respect thereof. 

(c)    The Corporation makes no representation or warranty as to the future market value of the Shares or with respect to
any income tax matters affecting the Participant resulting from the grant, vesting or delivery of an Award or transactions in the Shares. With respect to any fluctuations in the market price of Shares, neither the Corporation, nor any of its
directors, officers, employees, shareholders or agents shall be liable for anything done or omitted to be done by such person or any other person with respect to the price, time, quantity or other conditions and circumstances of the issuance of
Shares hereunder or in any other manner related to the Plan. For greater certainty, no amount will be paid to, or in respect of, a Participant under the Plan or pursuant to any other arrangement, and no additional Awards will be granted to such
Participant to compensate for a downward fluctuation in the price of the Shares, nor will any other form of benefit be conferred upon, or in respect of, a Participant for such purpose. The Corporation does not assume responsibility for the income or
other tax consequences resulting to the Participant and they are advised to consult with their own tax advisors. 

Section 2.9    Notice 

Each notice relating to an Award, including the exercise of an Option, must be in writing. All notices to the Corporation must be delivered
personally, by prepaid registered mail or by email and must be addressed to the secretary of the Corporation. All notices to the Participant will be addressed to the principal address of the Participant on file with the Corporation. Either the


  
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Corporation or the Participant may designate a different address by written notice to the other. Such notices are deemed to be received: (i) if delivered personally, on the date of delivery;
(ii) if sent by prepaid, registered mail, on the fifth Business Day following the date of mailing; or (iii) if sent by email, when the sender receives an email from the recipient acknowledging receipt, provided that an automatic “read
receipt” does not constitute acknowledgment of an email for purposes hereof. Any notice given by either the Participant or the Corporation is not binding on the recipient thereof until received. 

Section 2.10    Right to Issue Other Shares 

The Corporation shall not by virtue of this Plan be in any way restricted from declaring and paying stock dividends, issuing further Shares,
repurchasing Shares or varying or amending its share capital or corporate structure. 

Section 2.11    Quotation of Shares 

So long as the Shares are listed on a Stock Exchange, the Corporation must apply to the Stock Exchange for the listing or quotation, as
applicable, of the Shares issued upon the exercise or delivery of all Awards granted under the Plan, however, the Corporation cannot guarantee that such Shares will be listed or quoted on the Stock Exchange or any other stock exchange. 

Section 2.12    No Fractional Shares 

No fractional Shares shall be issued upon the exercise or delivery of any Award granted under the Plan and, accordingly, if a Participant would
become entitled to a fractional Share upon the exercise or delivery of an Award, or from an adjustment permitted by the terms of this Plan, such Participant shall only have the right to purchase or receive the next lowest whole number of Shares, and
no payment or other adjustment will be made with respect to the fractional interest so disregarded. 

Section 2.13    Governing Law 

With respect to Awards granted prior to the Arrangement Effective Time, the Plan shall be governed by the laws of the Province of British
Columbia and the federal laws of Canada applicable therein. With respect to Awards granted on or after the Arrangement Effective Time, the Plan shall be governed by the laws of the State of Delaware, without giving effect to the principles of
conflicts of law thereof and the federal laws of the United States applicable therein, without giving effect to the principles of conflicts of law thereof. 

ARTICLE III 

OPTIONS 

Section 3.1    Grant 

(a)    Subject to the provisions of this Plan, the Board may grant Options to any Eligible Person upon the terms,
conditions and limitations set forth herein or such other terms, conditions and limitations as the Board may determine and set forth in the Grant Agreement; provided each Option granted under the Plan shall be a
Non-Qualified Option. 

  
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 (b)    An Option shall be evidenced by a Grant Agreement, signed on
behalf of the Corporation. 
 (c)    The grant of an Option to, or the exercise of an Option by, a Participant under the
Plan shall neither entitle such Participant to receive nor preclude such Participant from receiving subsequently granted Options. 

Section 3.2    Exercise Price 

An Option may be exercised at a price that shall be fixed by the Board at the time that the Option is granted, but in no event shall it be less
than the Fair Market Value of the Shares on the Date of Grant (the “Exercise Price”). The Exercise Price shall be subject to adjustment in accordance with the provisions of Section 2.2(d) hereof. 

Section 3.3    Vesting 

(a)    All Options granted hereunder shall vest in accordance with the terms of the Grant Agreement entered into in respect
of such Options. The Board has the right to accelerate the date upon which any Option becomes exercisable notwithstanding the vesting schedule set forth for such Option, regardless of any adverse or potentially adverse tax consequences resulting
from such acceleration. 
 (b)    The vesting of any Options granted hereunder shall continue to vest during any period
of Authorized Leave. 
 ARTICLE IV 

EXERCISE & EXPIRY & CHANGE OF CONTROL 

Section 4.1    Conditions of Exercise 

(a)    Vested Options may only be exercised during the Exercise Period by the Participant or upon the Participant’s
death or Incapacity, his or her legal representative (provided that such legal representative shall first deliver evidence satisfactory to the Corporation of entitlement to exercise such vested Options). Subject to the restrictions set out in this
Plan and to any alternative exercise procedure which may be established from time to time by the Board, Options to acquire Shares may be exercised by delivering to the Corporation an Exercise Notice, together with a bank draft, certified cheque or
other form of payment acceptable to the Corporation in an amount equal to the aggregate Exercise Price of the Shares to be purchased pursuant to the exercise of the Options and, if required by Section 2.6, the amount necessary to satisfy any
source deductions or withholding taxes. 
 (b)    Pursuant to the Exercise Notice, a Participant may choose to undertake
a “cashless exercise” with the assistance of a broker in order to facilitate the exercise of such Participant’s Options. The “cashless exercise” procedure may include a sale of such number of


  
 12 












 
Shares as is necessary to raise an amount equal to the aggregate Exercise Price for all Options being exercised by that Participant under an Exercise Notice. The Participant shall also comply
with Section 2.6 of this Plan with regards to any applicable withholding tax and shall comply with all such other procedures and policies as the Corporation may prescribe or determine to be necessary or advisable from time to time in connection
with such “cashless exercise.” 
 (c)    In addition, in lieu of exercising any vested Option in the manner
described in this Article 4, and pursuant to the terms of this Article 4, a Participant may provide a properly endorsed notice of surrender to the Secretary of the Corporation, substantially in the form of Exhibit “C” to the Grant
Agreement (a “Surrender Notice”) pursuant to which the Participant agrees to transfer, dispose and surrender an Option (“Surrender”) to the Corporation and elects to receive that number of Shares calculated using
the following formula, after deduction of any income tax and other amounts required by law to be withheld pursuant to Section 2.6: 
 X = Y * (A-B) / A 
 Where: 

X = the number of Shares to be issued to the Participant 
 Y =
the number of Shares underlying the Options to be Surrendered 
 A = the Fair Market Value of the Shares as at the date of the Surrender 

B = the Exercise Price of such Options 
 The decision of
whether or not to permit Surrender for any Option is at the sole discretion of the Corporation and will be made on a case by case basis. 

(d)    Where Shares are to be issued to the Participant pursuant to the terms of this Section 4.1, as soon as
practicable following the receipt of the Exercise Notice and, if Options are exercised only in accordance with the terms of Section 4.1(a), the required bank draft, certified cheque or other acceptable form of payment, the Corporation shall
duly issue such Shares to the Participant as fully paid and non-assessable. 

Section 4.2    Exercise Period 

(a)    The Exercise Period shall be determined by the Board in its sole and absolute discretion at the time the Option is
granted and: 
 (i)    each Option shall Expire not later than ten (10) years after the Date of
Grant; and 
 (ii)    unless otherwise provided in the Participant’s Grant Agreement, the Exercise
Period shall be automatically reduced or the Expiry Date postponed in accordance with this Article 4 upon the occurrence of any of the events referred to herein. 

  
 13 












 (b)    Notwithstanding any other provision of the Plan, if the Expiry
Date of an Option falls on a date upon which such Participant is prohibited from exercising such Option due to a blackout period or other trading restriction imposed by the Corporation, then the Expiry Date of such Option shall be automatically
extended to the tenth (10th) Business Day following the date the relevant black-out period or other trading restriction imposed by the Corporation is lifted, terminated or removed; provided, however, that
notwithstanding the foregoing, the Expiry Date of an Option shall in no case extend beyond the tenth (10th) anniversary of the date on which it is granted. 

Section 4.3    Termination Date 

(a)    Subject to Section 4.2, unless otherwise provided in the Participant’s Grant Agreement, employment
agreement: 
 (i)    if, at any time, a Participant ceases to be an employee of the Corporation or a
subsidiary as a result of the Participant’s retirement with the concurrence of the Board, any Options granted to such Participant and vested as of the Termination Date (as defined below) shall remain exercisable by such Participant until the
earlier of: (i) 90 days following the Termination Date; and (ii) the Expiry Date. As of the Termination Date, all unvested Options of such Participant shall Expire and such Participant shall no longer be eligible for a grant of Options; 

(ii)    if, at any time, a Participant ceases to be an employee of the Corporation or a subsidiary as a
result of the Participant’s death or Incapacity, any Options granted to such Participant and vested as of the Termination Date shall remain exercisable by such Participant (or, in accordance with Section 2.7, the Participant’s legal
representative) until the earlier of: (i) one year following the date of death or the date on which the Board determines that the Incapacity will prevent the employee from fulfilling his or her duties with the Corporation; and (ii) the
Expiry Date. As of the Termination Date, all unvested Options of such Participant shall Expire; 

(iii)    if, at any time, a Participant ceases to be an employee of the Corporation or a subsidiary as a
result of the Participant’s termination for cause, as determined by the Board, in its discretion, then, as of the Termination Date, the vested and unvested Options granted to such Participant shall Expire and be of no further force or effect
whatsoever and such Participant shall no longer be eligible for a grant of Options; 
 (iv)    if, at any
time, a Participant ceases to be an employee of the Corporation or a subsidiary as a result of the Participant’s resignation, then any Options granted to such Participant and vested as of the Termination Date shall remain exercisable by such
Participant until the earlier of: (i) 90 days following the Termination Date; and (ii) the Expiry Date. As of the Termination Date, all unvested Options granted to such Participant shall Expire and be of no further force or effect whatsoever
and such Participant shall no longer be eligible for a grant of Options; and 
 (v)    if, at any time, a
Participant ceases to be an employee of the Corporation or a subsidiary as a result of the Participant’s dismissal without cause, any 

  
 14 












 
Options granted to such Participant and vested as of the Termination Date shall remain exercisable by such Participant until the earlier of: (i) ninety (90) days following the Termination
Date; and (ii) the Expiry Date. As of the Termination Date, all unvested Options of such Participant shall Expire (for certainty, without regard to any period of reasonable notice that the Corporation or a subsidiary, as the case may be, may be
required at law to provide to the Participant) and such Participant shall no longer be eligible for a grant of Options. 

(b)    Notwithstanding any other provisions of this Section 4.3, the Board may extend the expiration date of vested
and unvested Options of a Participant beyond the Expiry Dates set out above, provided that such extended dates are not later than the initial assigned maximum Expiry Date of any such Option. 

(c)    For purposes of the foregoing: 

“Incapacity” means the permanent and total incapacity of a Participant as determined in accordance with
procedures established by the Board for purposes of this Plan; and 
 “Termination Date” means in the case
of a Participant whose employment or term of office with the Corporation or a subsidiary terminates in the circumstances set out in Section 4.3, the date that is designated by the Corporation or a subsidiary, as the case may be, as the last day
of the Participant’s employment or term of office with the Corporation or a subsidiary, as the case may be, provided that in the case of termination of employment by voluntary resignation by the Participant, such date shall not be earlier than
the date notice of resignation was given, and, in the case of a termination by the Corporation without cause, “Termination Date” specifically does not mean the date on which any period of reasonable notice that the Corporation or a
subsidiary, as the case may be, may be required at law to provide to the Participant, would expire. 

Section 4.4    Change of Control 

(a)    Notwithstanding anything else in this Plan or any Grant Agreement, the Board has the right to provide for the
conversion or exchange of any outstanding Awards into or for options, rights or other securities in any entity participating in or resulting from a Change of Control, cash or other property. 

(b)    Upon the Corporation entering into an agreement relating to a transaction which, if completed, would result in a
Change of Control, or otherwise becoming aware of a pending Change of Control, the Corporation shall give written notice of the proposed Change of Control to the Award holders, together with a description of the effect of such Change of Control on
outstanding Awards, not less than seven (7) days prior to the closing of the transaction resulting in the Change of Control. 

(c)    The Board may, in its sole discretion, accelerate the vesting and/or the Expiry Date of any or all outstanding
Awards to provide that, notwithstanding the vesting provisions of such Awards or any Grant Agreement, such designated outstanding Awards shall be 

  
 15 












 
fully vested and conditionally exercisable (in the case of Options) upon (or prior to) the completion of the Change of Control provided that the Board shall not, in any case, authorize the
exercise of Options pursuant to this Section 4.4(c) beyond the Expiry Date of the Options. If the Board elects to accelerate the vesting and/or the Expiry Date of the Options, then if any of such Options are not exercised within seven
(7) days after the applicable holders are given the notice contemplated in Section 4.4(b) (or such later Expiry Date as the Board may prescribe), such unexercised Options shall, unless the Board otherwise determines, terminate and Expire
following the completion of the proposed Change of Control. If, for any reason, the Change of Control does not occur within the contemplated time period, the acceleration of the vesting and the Expiry Date of the Awards shall be retracted and
vesting shall instead revert to the manner provided in the Grant Agreement. 
 (d)    To the extent that the Change of
Control would also result in a capital reorganization, arrangement, amalgamation or reclassification of the share capital of the Corporation (and the Board does not accelerate the vesting and/or the Expiry Date of Awards pursuant to
Section 4.4(c)), the Corporation shall make adequate provisions to ensure that, upon completion of the proposed Change of Control, the number and kind of shares subject to outstanding Awards and, if applicable, the Exercise Price per share of
Options shall be appropriately adjusted (including by substituting the Awards for awards with respect to securities in any successor entity to the Corporation) in such manner as the Board considers equitable to prevent substantial dilution or
enlargement of the rights granted to Award holders. The Board may make changes to the terms of the Awards or the Plan to the extent necessary or desirable to comply with any rules, regulations or policies of any stock exchange on which any
securities of the Corporation may be listed, provided that the value of previously granted Awards and the rights of Award holders are not materially adversely affected by any such changes. 

(e)    Notwithstanding anything else to the contrary herein, in the event of a potential Change of Control, the Board
shall have the power, in its sole discretion, to modify the terms of this Plan and/or the Awards (including, for greater certainty, to cause the vesting of all unvested Awards) to assist the Participants to tender into a take-over bid or other
transaction leading to a Change of Control. For greater certainty, in the event of a take-over bid or other transaction leading to a Change of Control, the Board shall have the power, in its sole discretion, to permit Participants to conditionally
exercise their Options, such conditional exercise to be conditional upon the take-up by such offeror of the Shares or other securities tendered to such take-over bid in accordance with the terms of such
take-over bid (or the effectiveness of such other transaction leading to a Change of Control). If, however, the potential Change of Control referred to in this Section 4.4(e) is not completed within the time specified therein (as the same may
be extended), then notwithstanding this Section 4.4(e) or the definition of “Change of Control”: (i) any conditional exercise of vested Options shall be deemed to be null, void and of no effect, and such conditionally exercised
Options shall for all purposes be deemed not to have been exercised; (ii) Shares which were issued pursuant to exercise of Options which vested pursuant to this Section 4.4 shall be returned by the Participant to the Corporation and
reinstated as authorized but unissued Shares; and (iii) the original terms applicable to Options which vested pursuant to this Section 4.4 shall be reinstated. 

  
 16 












 ARTICLE V 

OTHER AWARDS 

Section 5.1    General 

In addition to Awards of Options hereunder, the Board may grant the types of Awards described in this Article 5 (“Other
Awards”), in accordance with the terms of this Article and the Plan. 
 The Board has the right to accelerate the date upon which
any Other Award vests notwithstanding the vesting schedule set forth for such Other Award, regardless of any adverse or potentially adverse tax consequences resulting from such acceleration. 

Section 5.2    Restricted Stock 

The Board may grant or award Shares to Eligible Persons that are subject to transfer, vesting and forfeiture restrictions (“Restricted
Stock”) in respect of such number of Shares, and subject to such terms or conditions, as it shall determine and specify in a Grant Agreement, and may provide in a Grant Agreement for an Option to be exercisable for Restricted Stock. A
holder of Restricted Stock shall have all of the rights of a shareholder of the Corporation, including the right to vote the shares, unless the Board shall otherwise determine at the time of grant; provided that unless the Board determines otherwise
any dividends paid on Restricted Stock will be held in escrow until all restrictions on such Shares have lapsed. Unless a Participant’s Grant Agreement provides to the contrary, unvested Restricted Stock shall not be transferred without the
written consent of the Board. In addition, at the time of termination for any reason of a Participant’s employment or other service relationship with the Corporation or a subsidiary, unvested Restricted Stock shall be forfeited to the
Corporation for no consideration, unless otherwise determined by the Board. Share certificates, if any, representing Awards of Restricted Stock (which may also be held in book entry or similar form) shall be imprinted with a legend to the effect
that the Shares represented may not be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of except in accordance with the terms of the Grant Agreement and, if the Board so determines, the holder may be required to deposit the
share certificates or other evidence of legal and beneficial ownership with the President, Chief Financial Officer, Secretary or other officer of the Corporation or with an escrow agent designated by the Board, together with a stock power or other
instrument of transfer appropriately endorsed in blank. In the event that the Restricted Stock is not represented by a share certificate, the Corporation shall direct the Corporation’s registrar and transfer agent to make an appropriate
notation of the restrictions on transfer to which the Restricted Stock is subject in the stock books and records of the Corporation. 

Section 5.3    Restricted Stock Units 

The Board may grant Awards payable in Shares upon vesting (“Restricted Stock Units”) to Eligible Persons hereunder, in respect
of such number of Shares, and subject to such terms or conditions, as it shall determine and specify in a Grant Agreement. A Restricted Stock Unit represents the right to receive, without payment to the Corporation, a Share. Restricted Stock Units
shall become vested as determined by the Board as set forth in the applicable Grant 

  
 17 












 
Agreement, unless otherwise described in the Plan. Amounts payable in connection with a Restricted Stock Unit shall be paid to the holder thereof as set forth in the applicable Grant Agreement,
but in no event later than two and one-half months following the end of the calendar year in which the applicable vesting condition is met (unless receipt is deferred in accordance with procedures adopted by
the Board, any of which shall comply with the requirements of Section 409A of the Code if the Participant is a United States taxpayer). Restricted Stock Units shall not constitute or be treated as property or as a trust fund of any kind. All
amounts at any time attributable to the Restricted Stock Units shall be and remain the sole property of the Corporation and all holders’ rights thereunder are limited to the rights to receive Shares as provided in the Plan and the applicable
Grant Agreement. 
 Section 5.4    Other Share-Based Awards; Performance Vesting 

The Board may grant such Other Awards payable in Shares as the Board may determine to be necessary or appropriate, including awards of Shares
that are not subject to vesting or forfeiture restrictions. The vesting of Other Awards hereunder may be made subject to the attainment of performance goals, as the Board may determine in its discretion. 

  
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 APPENDIX 1 

US RESIDENT EMPLOYEES 
 The
terms of the Plan are hereby modified with respect to those Participants who are U.S. Participants: 
 SPECIAL APPENDIX 

to the 
 Zymeworks Inc. Inducement
Stock Option and Equity Compensation Plan 
 Special Provisions Applicable to Participants Subject to 

the United States Internal Revenue Code 

This Appendix sets forth special provisions of the Zymeworks Inc. Inducement Stock Option and Equity Compensation Plan (the
“Plan”) that apply to U.S. Participants. All Options issued under the Plan to U.S. Participants are intended to be exempt from Section 409A of the Code, or any successor thereto, and all provisions hereunder shall be read,
interpreted, and applied with that purpose in mind. Terms used herein that are defined in the Plan shall have the meanings set forth in the Plan, as amended from time to time. 

 

	1.	 Interpretation 



 

	(a)	 For the purposes of this Appendix, the following terms have the following meanings: 



 

	 	(i)	 “Code” means the United States Internal Revenue Code of 1986, as amended, and any applicable
United States Treasury Regulations and other binding regulatory guidance thereunder; 


  

	 	(ii)	 “Incentive Stock Option” means any Option that qualifies as an incentive stock option within
the meaning of Section 422 of the Code or any successor thereto and which also satisfies the requirements of such section (including, without limitation, the requirement that the Participant is employed by the Corporation or a “parent
corporation” or “subsidiary corporation” of the Corporation (as such terms are defined in Section 424 of the Code)); 


  

	 	(iii)	 “Non-Qualified Option” means any Option granted under
the Plan to a U.S. Participant which is not an Incentive Stock Option; 


  

	 	(iv)	 “Option” means an option to purchase a Share that is granted to an Eligible Person pursuant to
the terms of this Plan, provided that all Options granted under the Plan and this Appendix will be Non-Qualified Options. 



 

	 	(v)	 “Separation From Service” shall have the meaning as set forth in United States Treasury
Regulation Section 1.409A-1(h) (after giving effect to the presumptions contained therein); and 


  

	 	(vi)	 “U.S. Participant” shall have the meaning set forth in Section 2(a), below.




  
 19 













	(b)	 The Plan and this Appendix are complementary to each other and shall, with respect to Options granted to U.S.
Participants, be read and deemed as one. In the event of any contradiction, whether explicit or implied, between the provisions of this Appendix and the Plan, the provisions of this Appendix shall prevail with respect to Options granted to U.S.
Participants. All Options granted under the Plan and this Appendix will be Non-Qualified Options. 


  

	2.	 Application 


  

	(a)	 The following special rules and limitations are applicable to Options issued under the Plan to Participants
subject to taxation in the United States (referred to hereunder as “U.S. Participants”) at the time of grant. 


  

	(b)	 Each U.S. Participant is solely responsible and liable for the satisfaction of all taxes and penalties that may
be imposed on or for the account of such U.S. Participant in connection with the Plan (including any taxes and penalties under Section 409A), and neither the Corporation nor any Affiliate of the Corporation shall have any obligation to pay,
indemnify or otherwise hold such U.S. Participant (or any beneficiary) harmless from any or all of such taxes or penalties. 


  

	(c)	 The Corporation and its Affiliates, if applicable, shall withhold taxes according to the requirements of
applicable laws, rules and regulations, including the withholding of taxes at source to satisfy any applicable U.S. and non-U.S. federal, provincial, state or local tax withholding obligation and employment
taxes. 


  

	(d)	 Each recipient of an Option hereunder who is or who becomes a U.S. Participant is advised to consult with his
or her personal tax advisor with respect to the tax consequences under federal, state, local and other tax laws of the receipt and/or exercise of an Option hereunder. 



 

	(e)	 Without derogating from the powers and authorities of the Board detailed in the Plan, and unless specifically
required under applicable law, the Board shall also have the sole and full discretion and authority to administer the provisions of this Appendix and all actions related thereto including, in addition to any powers and authorities specified in the
Plan, the performance, from time to time and at any time, of adopting standard forms of Grant Agreements to be applied with respect to U.S. Participants, incorporating and reflecting, inter alia, relevant provisions regarding the grant of Options in
accordance with this Appendix and amending or modifying the terms of such standard forms from time to time. 


  

	3.	 Exercise Price 



The Exercise Price of each Option granted under the Plan to a U.S. Participant shall not be less than the Fair Market Value of a Share on the
date such Option is granted. Notwithstanding any other provision of the Plan, in determining the Fair Market Value of a Share under the Plan in connection with the grant of an Option to a U.S. Participant, the Board will make the determination of
Fair Market Value in good faith consistent with the rules of Section 409A of the Code and the rules of the NYSE, to the extent applicable. 

  
 20 













	4.	 Expiry of Option 



Notwithstanding any other provision of the Plan and any provisions of the Grant Agreement to the contrary, Options granted to U.S. Participants
may not be exercised under any circumstance following the ten (10) year anniversary of the date of grant. 
  

	5.	 Adjustments to Options 



In the event of a corporate transaction requiring the adjustment of an Option held by a U.S. Participant, the number of Shares deliverable on
the exercise of an Option held by a U.S. Participant and the Exercise Price of an Option held by a U.S. Participant shall be adjusted in a manner intended to keep the Options exempt from Section 409A of the Code. 

 

	6.	 Amendment of Appendix 



The Board shall retain the power and authority to amend or modify this Appendix and any Option issued hereunder to the extent the Board in its
sole discretion deems necessary or advisable to comply with law or regulation, including to comply with any guidance issued under Section 409A of the Code. Such amendments may be made without the approval of any U.S. Participant. 

  
 21 












 SCHEDULE “A” 

ZYMEWORKS INC. STOCK OPTION GRANT AGREEMENT 

This agreement (the “Grant Agreement”) evidences the Options granted by Zymeworks Inc. (the “Corporation”) to the
undersigned (the “Participant”), pursuant to and subject to the terms of the Zymeworks Inc. Inducement Stock Option and Equity Compensation Plan (the “Plan”), which is incorporated herein by reference. The Schedules attached to
this Stock Option Grant Agreement shall form an integral part of this Stock Option Grant Agreement. 
 The Corporation hereby grants to the
Participant on the Date of Grant such number of Options as set forth in the attached Schedule “A”, as may be amended from time to time, with each Option representing the right to purchase, on the terms provided herein and in the Plan
(including, without limitations, the applicable exercise provisions), a Share with an Exercise Price per Share as set forth in the attached Schedule “A”, as may be amended from time to time, in each case subject to adjustment in accordance
with the provisions of the Plan. 
 ARTICLE 1 

INTERPRETATION 
  

	(a)	 Capitalized terms used herein and not otherwise defined shall have the meanings given to them in the Plan.



  

	(b)	 Words importing the singular shall include the plural and vice versa and words importing any gender include any
other gender. 


  

	(c)	 Unless otherwise specified herein, all references to money amounts are to U.S. dollars. 



 

	(d)	 The words “including” and “includes” mean “including (or includes) without
limitation”. 


 ARTICLE 2 

VESTING 
 Section 2.1 Options 

Unless earlier terminated, relinquished or expired, Options granted pursuant to this Grant Agreement shall vest in accordance with the
provisions set forth in the attached Schedule “A” as may be amended from time to time. 
 ARTICLE 3 

GENERAL PROVISIONS 
 Section 3.1
Participation in the Plan 
 No Participant has any claim or right to be granted an Option (including, without limitation, an Option granted
in substitution for any Option that has expired pursuant to the terms of this Plan), and the granting of any Option is not to be construed as giving a Participant a right to continued employment or to remain an employee of the Corporation or an
Affiliate of the 

  
 A-1 












 
Corporation. Nothing contained in this Grant Agreement or the Plan shall interfere in any way with the rights of the Corporation or an Affiliate of the Corporation in connection with the
employment or termination of any such person. Upon any such termination, a Participant’s rights to exercise Options will be subject to restrictions and time limits for the exercise of Options. Complete details of such restrictions are set out
in the Plan, and in particular in Article 4 thereof (except to the extent that such provisions are varied in accordance with Schedule “A” hereto). The Participant hereby agrees that any rule, regulation or determination, including the
interpretation by the Board of the Plan, the Option granted hereunder and the exercise thereof, is final and conclusive for all purposes and binding on all persons including the Corporation and the Participant. 

Section 3.2 Binding Agreement 
 The exercise
of the Options granted hereby, issuance of Shares and ownership of the Shares are subject to the terms and conditions of the Plan (all of which are incorporated into and form part of this Grant Agreement) and this Grant Agreement. This Agreement
shall inure to the benefit of and be binding upon the parties and their respective successors (including any successor by reason of amalgamation of any party) and permitted assigns. 

Section 3.3 Governing Law 
 This Grant
Agreement shall be governed by the laws of the State of Delaware and the federal laws of the United States, in each case, without giving effect to the principles of conflicts of law thereof. 

[The remainder of this page is intentionally left blank] 

  
 A-2 












 By acceptance of these Options, the undersigned acknowledges receipt of the Plan text and
agrees hereby to be subject and bound to the terms of the Plan. The undersigned further acknowledges and agrees that the Participant’s abovementioned participation is voluntary and has not been induced by expectation of engagement, appointment,
employment, continued engagement or continued employment, as the case may be. 
 Accepted and agreed to this      day of
            ,         . 
  

							
	Corporation:	 		 		 	 ZYMEWORKS INC.
  

By:
  

Name:
  

Title:

				
	Participant:	 		 		 	
				
		 		 		 	Signature of Option Holder
				
		 		 		 	Name of Option Holder (Please Print)
				
	Address:	 		 		 	


  
 A-3 












 EXHIBIT “A” OPTION GRANT 

 

			
	Participant:	 	[☐]
		
	Number of Options	 	[☐]
		
	Exercise Price:	 	[☐]
		
	Date of Grant:	 	[☐]
		
	Vesting Schedule	 	[☐]
		
	Expiry Date1	 	[☐]

  

	[1]	 Include here any provisions with respect to the expiry of vested/unvested options that would depart from
Section 4.3 of the Plan (i.e., the impact of certain events on the vesting/exercise period, including termination for cause, voluntary resignation, termination other than for cause, termination upon a change of control, and retirement, death or
disability). 



  
 A-4 












 EXHIBIT “B” ELECTION TO EXERCISE STOCK OPTIONS 

TO: ZYMEWORKS INC. (the “Corporation”) 

The undersigned option holder hereby elects to exercise Options granted by the Corporation to the undersigned pursuant to a Grant Agreement
dated             , 20     under the Zymeworks Inc. Inducement Stock Option and Equity Compensation Plan (the “Plan”), for the number Shares set forth below.
Capitalized terms used herein and not otherwise defined shall have the meanings given to them in the Plan. 
 Number of Shares to be Acquired: 

 

					
	 Option Exercise Price (per Share):
	  	$	             	 
		
	 Aggregate Purchase Price:
	  	$	             	 
		
	Amount enclosed that is payable on account of any Source Deductions relating to this Option exercise (contact the Corporation for details of such amount):	  			
		
	 ☐   Or check here if alternative arrangements have been made with the
Corporation;
	  			

 and hereby tenders a certified cheque, bank draft or other form of payment confirmed as acceptable by the Corporation for such
aggregate purchase price, and, if applicable, all Source Deductions, and directs such Shares to be registered in the name of 
 I hereby agree to file or
cause the Corporation to file on my behalf, on a timely basis, all insider reports and other reports that I may be required to file under applicable securities laws. I understand that this request to exercise my Options is irrevocable. 

DATED this      day of             ,
         
  

	
	     

	Signature of Option Holder
	
	     

	Name of Option Holder (Please Print)



  
 A-5 












 EXHIBIT “C” SURRENDER NOTICE 

TO: ZYMEWORKS INC. (the “Corporation”) 
 The
undersigned option holder hereby elects to transfer, dispose and surrender Options granted by the Corporation to the undersigned pursuant to a Grant Agreement dated             ,
20         under the Zymeworks Inc. Inducement Stock Option and Equity Compensation Plan (the “Plan”) to the Corporation in exchange for Shares as calculated in accordance with Section 4.1(c) of
the Plan. Capitalized terms used herein and not otherwise defined shall have the meanings given to them in the Plan. 
 Please issue a certificate or
certificates representing the Shares in the name of:              
 I hereby agree to file or
cause the Corporation to file on my behalf, on a timely basis, all insider reports and other reports that I may be required to file under applicable securities laws. I understand that this request to exercise my Options is irrevocable. 

DATED this      day of             ,
        . 
  

	
	     

	Signature of Option Holder
	
	     

	Name of Option Holder (Please Print)


 Type of
Option2            Non-Qualified Option 

 
  

	2 	 Add for U.S. Participants 



  
 A-6 












 SCHEDULE “B” 

ZYMEWORKS INC. RESTRICTED STOCK UNIT GRANT AGREEMENT 

This agreement (the “Grant Agreement”) evidences the Restricted Stock Units granted by Zymeworks Inc. (the “Corporation”)
to the undersigned (the “Participant”), pursuant to and subject to the terms of the Zymeworks Inc. Inducement Stock Option and Equity Compensation Plan (the “Plan”), which is incorporated herein by reference. The Exhibit attached
to this Restricted Stock Unit Grant Agreement shall form an integral part of this Restricted Stock Unit Agreement. 
 The Corporation hereby
grants to the Participant on the Date of Grant such number of Restricted Stock Units as set forth in the attached Exhibit “A”, as may be amended from time to time, with each Restricted Stock Unit representing the right to receive, on
the terms provided herein and in the Plan, a Share as set forth in the attached Exhibit “A”, as may be amended from time to time, in each case subject to adjustment in accordance with the provisions of the Plan. 

ARTICLE 1 
 INTERPRETATION 

 

	(a)	 Capitalized terms used herein and not otherwise defined shall have the meanings given to them in the Plan.



  

	(b)	 Words importing the singular shall include the plural and vice versa and words importing any gender include any
other gender. 


 ARTICLE 2 

VESTING 
 Section 2.1 Restricted Stock Units

 Unless earlier terminated, relinquished or expired, Restricted Stock Units granted pursuant to this Grant Agreement shall vest in
accordance with the provisions set forth in the attached Schedule “A” as may be amended from time to time. 
 ARTICLE 3 

GENERAL PROVISIONS 
 Section 3.1
Participation in the Plan 
 No Participant has any claim or right to be granted a Restricted Stock Unit, and the granting of any Restricted
Stock Unit is not to be construed as giving a Participant a right to continued employment or to remain an employee of the Corporation or an Affiliate of the Corporation. Nothing contained in this Grant Agreement or the Plan shall interfere in any
way with the rights of the Corporation or an Affiliate of the Corporation in connection with the employment or termination of any such person. Upon any such termination, a Participant’s rights with respect to unvested Restricted Stock Units
shall be terminated, unless otherwise determined by the Board. The Participant hereby agrees that any rule, regulation or determination, including the interpretation by the Board of the Plan, the Restricted Stock Units granted hereunder and the
exercise thereof, is final and conclusive for all purposes and binding on all persons including the Corporation and the Participant. 

  
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 Section 3.2 Issuance; Binding Agreement 

Any issuance of Shares and ownership of the Shares are subject to the terms and conditions of the Plan (all of which are incorporated into and
form part of this Grant Agreement) and this Grant Agreement. The Participant’s record of Share ownership shall be recorded in the books of the Corporation only when the Restricted Stock Units vest and the Shares are issued. Shares shall be
delivered to the Participant as soon as practicable following the applicable vest date, subject to the Participant’s employment or service on such date. This Grant Agreement shall inure to the benefit of and be binding upon the parties and
their respective successors (including any successor by reason of amalgamation of any party) and permitted assigns. 
 Section 3.3. Miscellaneous 

 

	(a)	 The Participant hereby acknowledges and agrees that any sums required to satisfy the U.S. and non-U.S. federal, state, provincial and local tax withholding obligations of the Corporation that arise in connection with the Award or the transactions contemplated by this Grant Agreement (the “Tax
Obligations”) are the sole responsibility of the Participant. By accepting this Grant Agreement, the Participant hereby elects, effective on the Date of Grant, to sell Shares held by the Participant in an amount and at such time as is
determined in accordance with this Section 3.3(a), and to allow the Agent, as defined below, to remit the cash proceeds of such sales to the Corporation as more specifically set forth below (a “Sell to Cover”) to permit the
Participant to satisfy the Tax Obligations and further acknowledges and agrees to the following provisions: 


  

	 	(i)	 The Participant hereby irrevocably appoints the Corporation’s designated broker Solium Capital Inc., or
such other broker as the Corporation may select, as the Participant’s agent (the “Agent”), and authorizes and directs the Agent to: 


  

	 	1.	 Sell on the open market at the then prevailing market price(s), on the Participant’s behalf, as soon as
practicable on or after the delivery of Shares underlying the Restricted Stock Units, the number (rounded up to the next whole number) of Shares sufficient to generate proceeds to cover (A) the satisfaction of the Tax Obligations arising from
the settlement of the associated vested Restricted Stock Units and (B) all applicable fees and commissions due to, or required to be collected by, the Agent with respect thereto; 



 

	 	2.	 Remit directly to the Corporation the proceeds necessary to satisfy the Tax Obligations arising from the
settlement of the associated vested Restricted Stock Units 


  

	 	3.	 Retain the amount required to cover all applicable fees and commissions due to, or required to be collected by,
the Agent, relating directly to the sale; and 



  
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	 	4.	 Deposit any remaining funds in the Participant’s account. 



 

	 	(ii)	 The Participant acknowledges that the Participant’s election to Sell to Cover and the corresponding
authorization and instruction to the Agent set forth herein is intended to comply with the requirements of Rule 10b5-1(c)(1) under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and to be interpreted to comply with the requirements of Rule 10b5-1(c) under the Exchange Act (the Participant’s election to Sell to Cover and the provisions of this Section 3.3(a),
collectively, the “10b5-1 Plan”). The Participant acknowledges that by accepting this Award, he or she is adopting the 10b5-1 Plan to permit the Participant to
satisfy the Tax Obligations. The Participant authorizes the Corporation and the Agent to cooperate and communicate with one another to determine the number of Shares that must be sold pursuant to this Section 3.3(a) to satisfy the Tax
Obligations. 


  

	 	(iii)	 The Participant acknowledges that the Agent is under no obligation to arrange for the sale of Shares at any
particular price under this 10b5-1 Plan and that the Agent may effect sales as provided in this 10b5-1 Plan in one or more sales and that the average price for
executions resulting from bunched orders may be assigned to the Participant’s account. In addition, the Participant acknowledges that it may not be possible to sell Shares as provided for in this 10b5-1
Plan and in the event of the Agent’s inability to sell Shares, the Participant will continue to be responsible for the Tax Obligations. 


  

	 	(iv)	 The Participant hereby agrees to execute and deliver to the Agent any other agreements or documents as the
Agent reasonably deems necessary or appropriate to carry out the purposes and intent of this 10b5-1 Plan. The Agent is a third-party beneficiary of this Section 3.3(a) and the terms of this 10b5-1 Plan. 


  

	 	(v)	 The Participant’s election to Sell to Cover and to enter into this
10b5-1 Plan is irrevocable. This 10b5-1 Plan shall terminate not later than the date on which the Tax Obligations arising from the Award or the transactions contemplated
by this Grant Agreement are satisfied. 


  

	 	(vi)	 The Participant further represents that: 



 

	 	1.	 The Participant is not in possession, and is not aware, of any material nonpublic information about the Shares
or the Corporation as of the date of his or her signature below; 


  

	 	2.	 Unless this 10b5-1 Plan is modified or terminated in accordance with
the terms hereof, the Participant agrees not to alter, deviate from or suspend the terms of this 10b5-1 Plan; 


  

	 	3.	 The Participant is entering into this 10b5-1 Plan in good faith and not
as part of a plan or scheme to evade any law, including, without limitation, any securities laws or any law governing insider trading; and 



  
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	 	4.	 The Participant will not disclose to the Agent any information concerning the Corporation that might influence
the execution of this 10b5-1 Plan. 


  

	(b)	 To the extent that the Corporation declares a cash dividend while all or a portion of the Restricted Stock
Units are unvested, the Participant shall be credited with dividend equivalent rights (as determined by the Board in its discretion) with respect to each Share subject to the unvested portion of the Restricted Stock Units. Such dividend equivalent
right will entitle the Participant to payment of such dividend only upon vesting of the corresponding portion of the Restricted Stock Unit; and such right will be forfeited to the extent the corresponding portion of the Restricted Stock Unit is
forfeited. 


  

	(c)	 No purported sale, assignment, mortgage, hypothecation, transfer, pledge, encumbrance, gift, transfer in trust
(voting or other) or other disposition of, or creation of a security interest in or lien on, any of the Restricted Stock Units by any holder thereof shall be valid (other than pursuant to the laws of descent and distribution). 



 

	(d)	 This Grant Agreement, together with the Plan, constitutes the entire agreement and understanding between the
parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof. No statement, representation, warranty, covenant or agreement not expressly set
forth in this Grant Agreement shall affect or be used to interpret, change or restrict the express terms and provisions of this Grant Agreement provided, however, in any event, this Grant Agreement shall be subject to and governed by the Plan.



  

	(e)	 The award of Restricted Stock Units evidenced by this Grant Agreement to any Participant who is a United States
taxpayer is intended to be exempt from the nonqualified deferred compensation rules of Section 409A of the Code as a “short term deferral” (as that term is used in the final regulations and other guidance issued under
Section 409A of the Code, including Treasury Regulation Section 1.409A-1(b)(4)(i)), and shall be construed and administered accordingly. 



 

	(f)	 This Grant Agreement shall be governed by the laws of the State of Delaware and the federal laws of the United
States, in each case, without giving effect to the principles of conflicts of law thereof 


 [The remainder of this page
is intentionally left blank] 

  
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 By acceptance of these Restricted Stock Units, the undersigned acknowledges receipt of the
Plan text and agrees hereby to be subject and bound to the terms of the Plan. The undersigned further acknowledges and agrees that the Participant’s abovementioned participation is voluntary and has not been induced by expectation of
engagement, appointment, employment, continued engagement or continued employment, as the case may be. 
 Accepted and agreed to this
     day of             ,         . 
  

							
	Corporation:	 		 		 	ZYMEWORKS INC.
				
		 		 		 	By:
				
		 		 	    	 	Name:
				
		 		 		 	Title:
				
	Participant:	 		 		 	
				
		 		 		 	     

		 		 		 	Signature of Restricted Stock Unit Holder
				
		 		 		 	     

		 		 		 	Name of Restricted Stock Unit Holder (Please Print)
				
	Address:	 		 		 	


  
 B-5 












 EXHIBIT “A” RESTRICTED STOCK UNIT GRANT 

 

			
	Participant:	  	[☐]
		
	Number of Restricted Stock Units	  	[☐]
		
	Date of Grant:	  	[☐]
		
	Vesting Schedule	  	[☐] There shall be no proportionate or partial vesting between the foregoing vesting dates. All vesting shall be subject to the Participant’s continued employment or service on the applicable vesting date.
		
	Sell to Cover Election	  	By accepting this Award, Participant hereby: (1) elects, effective on the Date of Grant, to sell Shares issued in respect of the Award in an amount determined in accordance with Section 3.3(a) of the Grant Agreement, and to
allow the Agent to remit the cash proceeds of such sale to the Corporation as more specifically set forth in Section 3.3(a) of the Grant Agreement (a “Sell to Cover”); (2) directs the Corporation to make a cash payment to satisfy the
Tax Obligations from the cash proceeds of such sale directly to the appropriate taxing authorities; and (3) represents and warrants that (i) the Participant has carefully reviewed Section 3.3(a) of the Grant Agreement, (ii) on
the date Participant accepts this Award he or she is not in possession, and is not aware, of any material nonpublic information about the Shares or the Corporation and is entering into the Grant Agreement and this election to Sell to Cover in good
faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1(c) under the Exchange Act, and (iii) it is the Participant’s intent that this election to Sell to Cover and
Section 3.3(a) of the Grant Agreement comply with the requirements of Rule 10b5-1(c)(1) under the Exchange Act, and be interpreted to comply with the requirements of Rule
10b5-1(c) under the Exchange Act. The Participant further acknowledges that by accepting this Award, Participant is adopting a 10b5-1 Plan (as defined in
Section 3.3(a) of the Grant Agreement) to permit Participant to conduct a Sell to Cover sufficient to satisfy the Tax Obligations as more specifically set forth in Section 3.3(a) of the Grant Agreement.


  
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