EX-10.27



 EXHIBIT 10.27 
  

 
 



 
  
 By Hand 

November 5, 2015 
 Dr. Lana Janes

 c/o 887 Great Northern Way, Suite 250 

Vancouver, BC 
 V5T 4T5 

Dear Lana: 
  

	Re:	 Employment Agreement Amendment 



Further to our recent discussions, this letter confirms our agreement to amend your Employment Agreement dated January 1, 2010, as amended (the
“Employment Agreement”). We have agreed to the following amendments to your Employment Agreement: 
  

	 	1.	 Section 1.1 is amended to change your position title to “Senior Vice President, Intellectual Property and Technology Development, and Chief
Patent Officer”. 


  

	 	2.	 Section 2.1(a) is amended to increase your annual Base Salary to $300,000. 



 

	 	3.	 Section 2.1(f) is amended to increase your target cash incentive compensation payment to 40% of your Base Salary, provided that your target payment
for 2015 will be prorated based on your current target and your current annual Base Salary for the period from January 1, 2015 to the effective date of this letter and your amended target and amended Base Salary from the effective date of this
letter to December 31, 2015. 


 The capitalized term “Base Salary” has the same meaning as the same capitalized
term in your Employment Agreement. 
 The amendments to Sections 1.1, 2.1(a) and 2.1(f) of your Employment Agreement are effective as of the
date this letter is signed by you. 
 Your Employment Agreement as amended by this letter will continue to govern your employment with QLT
Inc. 
 Please confirm your agreement to this amendment to your Employment Agreement by signing where indicated below and returning to us a
copy of this letter. 
 If you have any questions, please contact me. 

Yours truly. 
 QLT Inc.

  

			
	 /s/ Geoffrey Cox
	    	 November 5, 2015

	 Dr. Geoffrey Cox
	    	
	 Interim CEO
	    	

 I confirm my agreement to the terms and conditions set out above. 

 

			
	 /s/ Lana Janes
	    	 November 5, 2015

	 Dr. Lana Janes
	    	


  
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 EMPLOYMENT AGREEMENT 

This Employment Agreement made effective as of January 1, 2010 (the “Effective Date”). 

BETWEEN: 
 QLT
INC., having an address of 887 Great Northern Way, Suite 101, Vancouver, British Columbia, V5T 4T5, Canada. 

(“QLT” or the “Company”) 

AND: 
 DR. LANA
JANES, having an address of #201 – 657 West 7th Avenue, Vancouver, BC, V5Z 1B6 
 (“Dr. Janes”)

 WHEREAS: 
  

	A.	 Dr. Janes has been employed by QLT since August 15, 2005 and, effective January 1, 2010 was appointed to the position of Vice President,
Intellectual Property and Chief Patent Officer. 


  

	B.	 In consideration of the salary increase that Dr. Janes received effective January 1, 2010, QLT and Dr. Janes agree to replace and supercede the
employment agreement dated July 29, 2005 with this agreement which sets out the new terms and conditions of Dr. Janes’ employment with QLT in the position of Vice President, Intellectual Property and Chief Patent Officer. 



NOW THEREFORE in consideration of the increase in compensation to be paid under this Agreement by QLT to Dr. Janes, the promises made by each
party to the other as set out in this Agreement and other good and valuable consideration, the receipt and sufficiency of which the parties acknowledge and agree, QLT and Dr. Janes agree as follows: 

 

	1.	 POSITION AND DUTIES 


  

	1.1	 Position – Effective January 1, 2010, Dr. Janes is employed by QLT in the position of Vice President, Intellectual Property and
Chief Patent Officer and Dr. Janes agrees to be employed by QLT in that position, subject to the terms and conditions of this Agreement. 


  

	1.2	 Duties, Reporting and Efforts – In the performance of her duties as Vice President, Intellectual Property and Chief Patent
Officer, Dr. Janes will: 


  

	 	(a)	 Overall Responsibilities – Dr. Janes will have overall responsibility for Intellectual Property within QLT. 



 

	 	(b)	 Report – Report, as and when required, to the President and Chief Executive Officer of QLT or such person appointed by the Board of
Directors of QLT (the “Board”) to act in that capacity. 


  

	 	(c)	 Best Efforts and Compliance with Policies, etc. – Use her best efforts, industry and knowledge to carry out the duties and
functions of the Vice President, Intellectual Property and Chief Patent Officer, to comply with all of QLT’s rules, regulations, policies (including QLT’s Code of Ethics and Code of Exemplary Conduct) and procedures, as established from
time to time and to ensure that QLT is at all times in compliance with applicable provincial, state, federal and other 



  
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governing statutes, policies and regulations. Dr. Janes confirms that she is not now nor has in the past been debarred by the United States Food and Drug Administration under the Food, Drug and
Cosmetic Act or under the Generic Drug Enforcement Act and she has never been convicted under the Food, Drug and Cosmetic Act or under the Generic Drug Enforcement Act, or under any other federal law for conduct relating to the development or
approval of a drug product and/or relating to a drug product. In the event that Dr. Janes is, or learns that she will be (i) debarred under the Food, Drug and Cosmetic Act or under the Generic Drug Enforcement Act, or (ii) convicted under the
Food, Drug and Cosmetic Act or under the Generic Drug Enforcement Act or under any other federal law for conduct relating to the development or approval of a drug product and/or relating to a drug product, she will immediately notify QLT in writing.



  

	 	(d)	 Working Day – Devote the whole of her working day attention and energies to the business and affairs of QLT. 



 

	2.	 COMPENSATION 


  

	2.1	 Annual Compensation – In return for her services under this Agreement, QLT agrees to pay or otherwise provide the following
total annual compensation (in Canadian dollars) to Dr. Janes: 


  

	 	(a)	 Base Salary – A base salary in the amount of CAD $208,202 in 24 equal installments payable semi-monthly in arrears, subject to periodic
annual reviews at the discretion of QLT. 


  

	 	(b)	 Benefit Plans – Coverage for Dr. Janes and her eligible dependents under any employee benefit plans provided by/through QLT to its
employees, subject to: 


  

	 	I.	 Each plan’s terms for eligibility, 


  

	 	II.	 Dr. Janes taking the necessary steps to ensure effective enrollment or registration under each plan, and 



 

	 	III.	 Customary deductions of employee contributions for the premiums of each plan. 



As at the date of this Agreement, the employee benefit plans provided by/through QLT to its employees include life insurance,
accidental death and dismemberment insurance, dependent life insurance, vision-care insurance, health insurance, dental insurance and short and long term disability insurance. QLT and Dr. Janes agree that employee benefit plans provided
by/through QLT to its employees may change from time to time. 
  

	 	(c)	 Expense Reimbursement – Reimbursement, in accordance with QLT’s Policy and Procedures Manual (as amended from time to time), of
all reasonable business expenses, including accommodation and/or travel expenses incurred by Dr. Janes, subject to her maintaining proper accounts and providing documentation for these expenses upon request. Collectively, these expenses and payments
are the “Expenses”. 


  

	 	(d)	 Vacation – Four weeks of paid vacation per year, as may be increased from time to time in accordance with QLT’s vacation policy
for officer level employees. As per the Company’s Policy and Procedures Manual (as amended from time to time), unless agreed to in writing by the Company: 



 

	 	I.	 All vacation must be taken within the calendar year in which it is earned by Dr. Janes, and 



 

	 	II.	 Vacation entitlement will not be cumulative from calendar year to calendar year; except that Dr. Janes may carry forward 75 hours of vacation from
the calendar year in which it is earned to the following calendar year (but not subsequent years). 



  
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	 	(e)	 RRSP Contributions – Provided the conditions set out below have been satisfied, in January or February of the year following the year
in which the income is earned by Dr. Janes (the “Income Year”), QLT will make a contribution of up to 7% of Dr. Janes’ annual base salary for the Income Year to Dr. Janes’ Registered Retired Savings Plan
(“RRSP”). The contribution to Dr. Janes’ RRSP as set out above is subject to the following conditions: 


  

	 	I.	 The maximum contribution to be made by QLT to Dr. Janes’ RRSP is 50% of the annual limit for Registered Retirement Savings Plans as
established by Canada Revenue Agency for the Income Year, 


  

	 	II.	 Dr. Janes must have contributed an equal amount into her RRSP, and 



 

	 	III.	 Dr. Janes is still actively employed by QLT when the matching contribution would otherwise be made. 



 

	 	(f)	 Cash Incentive Compensation Plan – Participation in the Cash Incentive Compensation Plan offered by QLT to its officers in accordance
with the terms of such Plan, as amended from time to time by the Board. The amount of that payment each year will be determined at the sole discretion of the Chief Executive Officer and the Board and is to be based on the performance of Dr. Janes
and QLT relative to pre-set individual and corporate objectives and milestones for the immediately preceding fiscal year. In order to receive payment, Dr. Janes must be employed by QLT at the time when the Cash Incentive Compensation Plan is
otherwise actually paid to eligible employees (which usually occurs in February or March of the year following the calendar year in which such Cash Incentive Compensation amount relates) The Board of Directors has the discretion to alter the cash
incentive compensation plan and payments thereunder. 


  

	 	(g)	 Stock Option Plan – Participation in any stock option plan offered by QLT to its officers, in accordance with the terms of the plan in
effect at the time of the stock option offer(s). 


  

	3.	 RESIGNATION 


  

	3.1	 Resignation – Dr. Janes may resign from her employment with QLT by giving QLT 60 days prior written notice (the
“Resignation Notice”) of the effective date of her resignation. On receiving a Resignation Notice, QLT may elect to provide the following payments in lieu of notice to Dr. Janes and require her to leave the premises forthwith:



  

	 	(a)	 Base Salary – Base salary owing to Dr. Janes for the 60-day notice period. 



 

	 	(b)	 Benefits – Except as set out below in this subparagraph 3.1(b), for the 60-day notice period, all employee benefit plan coverage
enjoyed by Dr. Janes and her eligible dependents prior to the date of her Resignation Notice. Dr. Janes acknowledges and agrees that any short and long term disability plans provided through QLT will not be continued beyond the last day that
Dr. Janes works at QLT’s premises (the “Last Active Day”). 


  

	 	(c)	 Expense Reimbursement – Reimbursement (in accordance with QLT’s Policy and Procedures Manual, as amended from time to time) of all
reasonable business related expenses, including accommodation and/or travel expenses incurred by Dr. Janes prior to her Last Active Day, subject to the expense reimbursement provisions set out in subparagraph 2.1(c). 



 

	 	(d)	 Vacation Pay – Payment in respect of accrued but unpaid vacation pay owing to Dr. Janes as at the expiry of the 60-day notice period.



  

	 	(e)	 Prorated RRSP Contribution – Payment of any unpaid RRSP contribution in respect of any calendar year preceding the calendar year in
which the 60-day period expires and a prorated contribution to Dr. Janes’ RRSP, the pro-ration to be with respect to the portion of the current 



  
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calendar year worked by Dr. Janes, up to and including the 60-day notice period, and the contribution to be subject to the conditions set out in subparagraph 2.1(e), except condition III.



  

	3.2	 Others – In the event of resignation of Dr. Janes as set out in paragraph 3.1, the parties agree: 



 

	 	(a)	 No Bonus – Dr. Janes will have no entitlement to participate in QLT’s Cash Incentive Compensation Plan for the year in which she
resigns her employment with QLT; and 


  

	 	(b)	 Stock Option Plan – Dr. Janes’ participation in any stock option plan offered by QLT to its employees will be in accordance with
the terms of the plan in effect at the time of the stock option grant(s) to Dr. Janes and the applicable stock option agreement applicable to such stock options. 



 

	4.	 RETIREMENT 


  

	4.1	 Retirement – Effective the date of retirement (as defined in QLT’s Policy and Procedures Manual, as amended from time to
time) of Dr. Janes from active employment with QLT, the parties agree that: 


  

	 	(a)	 This Agreement – Subject to the provisions of paragraph 10.6, both parties’ rights and obligations under this Agreement will
terminate without further notice or action by either party. 


  

	 	(b)	 Stock Options – Dr. Janes’ participation in any stock option plan offered by QLT to its employees will be in accordance with the
terms of the plan in effect at the time of the stock option grant(s) to Dr. Janes and the applicable stock option agreement applicable to such stock options. 



 

	5.	 TERMINATION 


  

	5.1	 Termination for Cause – QLT reserves the right to terminate Dr. Janes’ employment at any time for any reason. Should
Dr. Janes be terminated for cause, she will not be entitled to any advance notice of termination or pay in lieu thereof. 


  

	5.2	 Termination Other than for Cause – QLT reserves the right to terminate Dr. Janes’ employment at any time without reason or
cause. However, if QLT terminates Dr. Janes’ employment for any reason other than for cause, then, except in the case of Dr. Janes becoming completely disabled (which is provided for in paragraph 5.6) and subject to the provisions set
forth below, Dr. Janes will be entitled to receive notice, pay and/or benefits (or any combination of notice, pay and/or benefits) as more particularly set out in paragraph 5.3. 



 

	5.3	 Severance Notice and Pay – In the event QLT terminates Dr. Janes’ employment as set out in paragraph 5.2, Dr. Janes
will be entitled to: 


  

	 	(a)	 Notice – Advance written notice of termination (“Severance Notice”), or pay in lieu thereof (“Severance
Pay”), or any combination of Severance Notice and Severance Pay, as more particularly set out below: 


  

	 	I.	 A minimum of nine (9) months Severance Notice, or Severance Pay in lieu thereof, and 



 

	 	II.	 One additional month’s Severance Notice, or Severance Pay in lieu thereof, for each complete year of continuous employment with QLT (which,
for greater certainty commenced on August 15, 2005), 


 up to a maximum total of 24 months’ Severance
Notice, or Severance Pay in lieu of Severance Notice. Dr. Janes acknowledges and agrees that Severance Pay is in respect of base salary only and will be made on a bi-weekly or monthly basis, at QLT’s discretion. 

 

	 	(b)	 Benefits – Except as set out below, for 30 days after Dr. Janes’ Last Active Day, all employee benefit plan coverage enjoyed by
Dr. Janes and her dependents prior to the date of termination. Thereafter, and in lieu of employee benefit plan coverage, Dr. Janes will receive 



  
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compensation (“Benefits Compensation”) in the amount of 10% of her base salary for the balance of her Severance Notice period. Dr. Janes acknowledges and agrees that short and
long term disability plans provided through QLT will not be continued beyond Dr. Janes’ Last Active Day. 


  

	 	(c)	 Out Placement Counseling – QLT will pay to an out placement counseling service (to be agreed to by Dr. Janes and QLT, each acting
reasonably) a maximum of CAD $5,000 for assistance rendered to Dr. Janes in seeking alternative employment. 


  

	 	(d)	 Other Compensation – QLT will provide the following additional compensation: 



 

	 	I.	 QLT will reimburse (in accordance with QLT’s Policy and Procedures Manual, as amended from time to time) Dr. Janes for all Expenses properly
and reasonably incurred by Dr. Janes on or prior to her Last Active Day, subject to the expense reimbursement provisions set out in subparagraph 2.1(c). 


  

	 	II.	 QLT will make a payment to Dr. Janes in respect of her accrued but unpaid vacation pay to the date of termination of her employment with QLT.



  

	 	III.	 QLT will make a prorated contribution to Dr. Janes’ RRSP, the pro-ration to be with respect to the portion of the current calendar year worked
by Dr. Janes and the contribution to be subject to the conditions set out in subparagraph 2.1(e), except condition III. 


  

	 	IV.	 QLT will make a prorated payment to Dr. Janes in respect of her entitlement to participate in QLT’s Cash Incentive Compensation Plan, the
pro-ration to be with respect to the portion of the current calendar year worked by Dr. Janes and the entitlement to be at the target level Dr. Janes would have otherwise been eligible to receive in the current calendar year if all corporate, and,
if applicable, individual goals were met but not exceeded, provided that if the Last Active Day precedes the date that the amount under the Cash Incentive Compensation Plan or other incentive compensation is otherwise actually paid to QLT’s
officers for a preceding year then Dr. Janes will also receive a payment in respect of her entitlement to participate in QLT’s Cash Incentive Compensation Plan and any other incentive compensation plan in place for the preceding calendar year
and the entitlement to be at the target level Dr. Janes would have otherwise been eligible to receive in the that calendar year if all corporate, and individual goals were met but not exceeded 



 

	 	V.	 Dr. Janes’ participation in any stock option plan offered by QLT to its employees will be in accordance with the terms of the plan in effect
at the time of the stock option offer(s) to Dr. Janes. 


  

	5.4	 Acknowledgement and Release – Dr. Janes acknowledges and agrees that in the event QLT terminates Dr. Janes’ employment as
set out in paragraph 5.2, in providing: 


  

	 	(a)	 The Severance Notice or Severance Pay, or any combination thereof; 



 

	 	(b)	 The Benefits Compensation; 


  

	 	(c)	 Out placement counseling service as more particularly set out in subparagraph 5.3(c); and 



 

	 	(d)	 The other compensation set out in subparagraph 5.3(d); 



QLT will have no further obligations, statutory or otherwise, to Dr. Janes in respect of this Agreement and Dr. Janes’
employment under this Agreement. 

  
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	5.5	 Duty to Mitigate 


  

	 	(a)	 Duty to Mitigate – Dr. Janes acknowledges and agrees that if her employment is terminated without cause as set out in paragraph 5.2,
her entitlement to Severance Pay, Benefits Compensation and other compensation as set out in paragraph 5.3 is subject to her duty to mitigate such payments by looking for and accepting suitable alternative employment or contract(s) for services. If
Dr. Janes obtains new employment or contract(s) for services of four weeks or longer, Dr. Janes agrees that she will notify QLT of this fact in writing (the “New Employment Notice”) within five working days of such an occurrence and
in this event the following provisions apply: 


  

	 	I.	 Dr. Janes acknowledges and agrees that her entitlement to Severance Pay and Benefits Compensation will cease as of the date on which her new
employment or contract for services commences. 


  

	 	II.	 Within 10 working days of receipt of the New Employment Notice from Dr. Janes, QLT agrees that it will pay Dr. Janes a lump sum amount equivalent
to 50% of the Severance Pay and Benefits Compensation as set out in paragraph 5.3 otherwise owing to Dr. Janes for the balance of the Severance Notice period. 



 

	 	(b)	 Waiver of Duty to Mitigate on Delivery of Release – In the event that, either on or before the date of termination of Dr. Janes’
employment with QLT or within 30 days after termination of her employment, Dr. Janes executes and delivers to QLT a release in the form set out in Schedule A to this Agreement, the provisions of paragraph 5.5(a) shall be deemed to not apply and Dr.
Janes shall have no duty to mitigate nor any reduction in the Severance Pay or Benefits Compensation in the event that she obtains alternative employment or contract(s) for service. 



 

	5.6	 Termination Due to Inability to Act 


  

	 	(a)	 Termination – QLT may immediately terminate this Agreement by giving written notice to Dr. Janes if she becomes completely disabled
(defined below) to the extent that she cannot perform her duties under this Agreement either: 


  

	 	I.	 For a period exceeding six consecutive months, or 


  

	 	II.	 For a period of 180 days (not necessarily consecutive) occurring during any period of 365 consecutive days, 



and no other reasonable accommodation can be reached between QLT and Dr. Janes. Notwithstanding the foregoing, QLT agrees
that it will not terminate Dr. Janes pursuant to this provision unless and until Dr. Janes has been accepted by the insurer for ongoing long-term disability payments or, alternatively, has been ruled definitively ineligible for such payments. 

 

	 	(b)	 Payments – In the event of termination of Dr. Janes’ employment with QLT pursuant to the provisions of this paragraph 5.6, QLT
agrees to pay to Dr. Janes Severance Pay and Benefits Compensation as set out in paragraph 5.3 and if Dr. Janes ceases to be completely disabled, then the provisions of paragraph 5.3(c) (out placement counseling) will apply. 



 

	 	(c)	 Definition – The term “completely disabled” as used in this paragraph 5.6 will mean the inability of Dr. Janes to perform the
essential functions of her position under this Agreement by reason of any incapacity, physical or mental, which the Board, based upon medical advice or an opinion provided by a licensed physician acceptable to the Board, determines to keep Dr. Janes
from satisfactorily performing any and all essential functions of her position for QLT during the foreseeable future. 



  
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	5.7	 Death – Except as set out below, effective the date of death (the “Date of Death”) of Dr. Janes, this Agreement
and both parties’ rights and obligations under this Agreement will terminate without further notice or action by either party. Within 30 days after the Date of Death (and the automatic concurrent termination of this Agreement), QLT will pay the
following amounts to Dr. Janes’ estate: 


  

	 	(a)	 Base Salary – Base salary owing to Dr. Janes up to her Date of Death. 



 

	 	(b)	 Payment in Lieu of Benefits – In lieu of employee benefit coverage for her eligible dependents after her Date of Death, a payment in
the amount of 10% of her annual base salary in effect at her Date of Death. 


  

	 	(c)	 Expense Reimbursement – Reimbursement (in accordance with QLT’s Policy and Procedures Manual, as amended from time to time) of all
reasonable Expenses incurred by Dr. Janes prior to her Date of Death, subject to the expense reimbursement provisions set out in subparagraph 2.1(c). 


  

	 	(d)	 Vacation Pay – Payment in respect of accrued but unpaid vacation pay owing to Dr. Janes as at her Date of Death. 



 

	 	(e)	 RRSP Contribution – A prorated contribution to Dr. Janes’ RRSP, the pro-ration to be with respect to the portion of the current
calendar year worked by Dr. Janes and the contribution to be subject to the conditions set out in subparagraph 2.1(e), except condition III. 


  

	 	(f)	 Bonus – A prorated payment to Dr. Janes in respect of her entitlement to participate in QLT’s Cash Incentive Compensation Plan,
the pro-ration to be with respect to the portion of the current calendar year worked by Dr. Janes and the entitlement to be at the target level Dr. Janes would have otherwise been eligible to receive in the current calendar year if all corporate,
and, if applicable, individual goals were met but not exceeded. 


 After her Date of Death, Dr. Janes’
participation and/or entitlement under any stock option plan offered by QLT to its employees will be in accordance with the terms of the plan in effect at the time of the stock option grant(s) to Dr. Janes and the applicable stock option agreement
applicable to such stock options. 
  

	5.8	 No Duplication – In the event that the Severance Pay provisions of this Agreement and the payment provisions of any other
agreement that have been or may be entered into between QLT and Dr. Janes with respect to a change of control of QLT are both applicable, Dr. Janes agrees that she will give written notice to QLT with respect to which agreement she wishes to be paid
out under and that she is not entitled to severance pay under both agreements. 


  

	6	 CONFLICT OF INTEREST 


  

	6.3	 Avoid Conflict of Interest – Except as set out below, during the term of her employment with QLT, Dr. Janes agrees to conduct
herself at all times so as to avoid any real or apparent conflict of interest with the activities, policies, operations and interests of QLT. To avoid improper appearances, Dr. Janes agrees that she will not accept any financial compensation of
any kind, nor any special discount or loan from persons, corporations or organizations having dealings or potential dealings with QLT, either as a customer or a supplier or a co-venturer. QLT and Dr. Janes acknowledge and agree that from time
to time the President may consent in writing to activities by Dr. Janes which might otherwise appear to be a real or apparent conflict of interest. 


  

	6.4	 No Financial Advantage – During the term of her employment with QLT, Dr. Janes agrees that neither she nor any members of her
immediate family will take financial advantage of or benefit financially from information that is obtained in the course of her employment related duties and responsibilities unless the information is generally available to the public.



  

	6.5	 Comply with Policies – During the term of her employment with QLT, Dr. Janes agrees to comply with all written policies issued
by QLT dealing with conflicts of interest. 



  
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	6.6	 Breach Equals Cause – Dr. Janes acknowledges and agrees that breach by her of the provisions of this Section 6 will be cause for
immediate termination by QLT of her employment with QLT. 


  

	7.	 CONFIDENTIALITY 


  

	7.1	 Information Held in Trust – Dr. Janes acknowledges and agrees that all business and trade secrets, confidential information and
knowledge which Dr. Janes acquires during her employment with QLT relating to the business and affairs of QLT, its affiliates or subsidiaries or to technology, systems, programs, ideas, products or services which have been or are being developed or
utilized by QLT, its affiliates or subsidiaries or in which QLT, its affiliates or subsidiaries are or may become interested (collectively, “Confidential Information”), will for all purposes and at all times, both during the term of
Dr. Janes’ employment with QLT and at all times thereafter, be held by Dr. Janes in trust and used by Dr. Janes only for the exclusive benefit of QLT. 


  

	7.2	 Non Disclosure – Dr. Janes acknowledges and agrees that both during the term of her employment with QLT and at all times
thereafter, without the express or implied consent of QLT, Dr. Janes will not: 


  

	 	(a)	 Disclose – Disclose to any company, firm or person, other than QLT and its directors and officers, any of the private affairs of QLT or
any Confidential Information; or 


  

	 	(b)	 Use – Use any Confidential Information that she may acquire for her own purposes or for any purposes, other than those of QLT.



  

	7.3	 Intellectual Property Rights 


  

	 	(a)	 Disclose Inventions – Dr. Janes agrees to promptly disclose to QLT any and all ideas, developments, designs, articles, inventions,
improvements, discoveries, machines, appliances, processes, methods, products or the like (collectively, “Inventions”) that Dr. Janes may invent, conceive, create, design, develop, prepare, author, produce or reduce to practice,
either solely or jointly with others, in the course of her employment with QLT. 


  

	 	(b)	 Inventions are QLT Property – All Inventions and all other work of Dr. Janes in the course of her employment with QLT will at all times
and for all purposes be the property of, and are hereby assigned by Dr. Janes to, QLT for QLT to use, alter, vary, adapt and exploit as it will see fit, and will be acquired or held by Dr. Janes in a fiduciary capacity solely for the benefit of QLT.



  

	 	(c)	 Additional Requirements – Dr. Janes agrees to: 



 

	 	I.	 Treat all information with respect to Inventions as Confidential Information. 



 

	 	II.	 Keep complete and accurate records of Inventions, which records will be the property of QLT and copies of which records will be maintained at the
premises of QLT. 


  

	 	III.	 Execute all assignments and other documents required to assign and transfer to QLT (or such other persons as QLT may direct) all right, title and
interest in and to the Inventions and all other work of Dr. Janes in the course of her employment with QLT, and all writings, drawings, diagrams, photographs, pictures, plans, manuals, software and other materials, goodwill and ideas relating
thereto, including, but not limited to, all rights to acquire in the name of QLT or its nominee(s) patents, registration of copyrights, design patents and registrations, trade marks and other forms of protection that may be available.



  

	 	IV.	 Execute all documents and do all acts reasonably requested by QLT to give effect to this provision. 



 

	7.4	 Records – Dr. Janes agrees that all records or copies of records concerning QLT’s activities, business interests or
investigations made or received by her during her employment with QLT are and will remain 



  
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the property of QLT. She further agrees to keep such records or copies in the custody of QLT and subject to its control, and to surrender the same at the termination of her employment or at any
time during her employment at QLT’s request. 


  

	7.5	 No Use of Former Employer’s Materials and Information – Dr. Janes certifies that she has not brought to QLT and will not
use while performing her employment duties for QLT any materials or documents of any former employer which are not generally available to the public, except if the right to use the materials or documents has been duly licensed to QLT by the former
employer. Dr. Janes certifies, warrants and represents that her performance of all provisions of this Agreement will not breach any agreement or other obligation to keep in confidence proprietary or confidential information known to her before
or after the commencement of employment with QLT. Dr. Janes will not disclose to QLT, use in the performance of her work for QLT, or induce QLT to use, any Inventions (as defined above), confidential or proprietary information, or other
material or documents belonging to any previous employer or to any other party in violation of any obligation of confidentiality to such party or in violation of such party’s proprietary rights; including without limitation whether any products
or services of such previous employer or other person actually incorporated, used, or were designed or modified based upon such information, and even if such information constitutes negative know-how. 



 

	8.	 POST-EMPLOYMENT RESTRICTIONS 


  

	8.1	 Non-Compete – Dr. Janes agrees that, by virtue of her senior position with QLT, she possesses and will possess strategic
sensitive information concerning the business of QLT, its affiliates and subsidiaries. As a result, and in consideration of the payments to be made by QLT to Dr. Janes under this Agreement, without the prior written consent of QLT, for a period
of one year following termination of her employment with QLT for any reason (by resignation or otherwise), as measured from her Last Active Day, Dr. Janes will not: 



 

	 	(a)	 Participate in a Competitive Business – Directly or indirectly, own, manage, operate, join, control or participate in the ownership,
management, operation or control of, or be a director or an employee of, or a consultant to, any business, firm or corporation that, as a part of conducting its business, is in any way competitive with QLT or any of its affiliates or subsidiaries
with respect to: 


  

	 	I.	 the development and/or commercialization and/or marketing of pharmaceutical products that are directly competitive with QLT’s or its
subsidiaries’ then current commercial products, Visudyne or any other products then being commercialized by or on behalf of QLT or its affiliates or subsidiaries which individually have worldwide annual net sales of U.S.$50 million or more in
the calendar year preceding Dr. Janes’ Last Active Day, 


  

	 	II.	 the development and/or commercialization and/or marketing of light-activated pharmaceutical products for photodynamic therapy in the treatment of
ophthalmic indications, 


  

	 	III.	 the development and/or commercialization and/or marketing of pharmaceutical products for treating ophthalmic indications associated with endogenous
retinyl deficiencies in the eye, or 


  

	 	IV.	 the development and/or commercialization and/or marketing of pharmacuetical products and/or devices that are or include lacrimal inserts and
punctal plugs, and/or drug-eluting lacrimal implants and drug-eluting punctal plugs, and insertion, extraction and detection devices used in connection therewith, for the treatment or prevention for disease, including ocular diseases,



 anywhere in Canada, the United States or Europe. 

  
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	 	(b)	 Solicit on Behalf of a Competitive Business – Directly or indirectly call upon or solicit any QLT employee or QLT customer or known
prospective customer of QLT on behalf of any business, firm or corporation that, as part of conducting its business, is in any way competitive with QLT with respect to: 



 

	 	I.	 the development and/or commercialization and/or marketing of pharmaceutical products that are directly competitive with QLT’s or its
subsidiaries’ then current commercial products, Visudyne or any other products then being commercialized by or on behalf of QLT or its affiliates or subsidiaries which individually have worldwide annual net sales of U.S.$50 million or more in
the calendar year preceding Dr. Janes’ Last Active Day, 


  

	 	II.	 the development and/or commercialization and/or marketing of light-activated pharmaceutical products for photodynamic therapy in the treatment of
ophthalmic indications, 


  

	 	III.	 the development and/or commercialization and/or marketing of pharmaceutical products for treating ophthalmic indications associated with endogenous
retinyl deficiencies in the eye, or 


  

	 	IV.	 the development and/or commercialization and/or marketing of pharmacuetical products and/or devices that are or include lacrimal inserts and
punctal plugs, and/or drug-eluting lacrimal implants and drug-eluting punctal plugs, and insertion, extraction and detection devices used in connection therewith, for the treatment or prevention for disease, including ocular diseases,



 anywhere in Canada, the United States or Europe. 

 

	 	(c)	 Solicit Employees – Directly or indirectly solicit any individual to leave the employment of QLT or any of its affiliates or
subsidiaries for any reason or interfere in any other manner with the employment relationship existing between QLT, its affiliates or subsidiaries and its current or prospective employees. 



 

	 	(d)	 Solicit Customers – Directly or indirectly induce or attempt to induce any customer, supplier, distributor, licensee or other business
relation of QLT or its affiliates or subsidiaries to cease doing business with QLT, its affiliates or subsidiaries or in any way interfere with the existing business relationship between any such customer, supplier, distributor, licensee or other
business relation and QLT or its affiliates or subsidiaries. 


  

	8.2	 Minority Share Interests Allowed – The parties agree that nothing contained in paragraph 8.1 is intended to prohibit Dr. Janes
from owning less than 5% of the issued and outstanding stock of any company whose stock or shares are traded publicly on a recognized exchange. 


  

	9.	 REMEDIES 


  

	9.1	 Irreparable Damage – Dr. Janes acknowledges and agrees that: 



 

	 	(a)	 Breach – Any breach of any provision of this Agreement could cause irreparable damage to QLT; and 



 

	 	(b)	 Consequences of Breach – In the event of a breach of any provision of this Agreement by Dr. Janes, QLT will have, in addition to any
and all other remedies at law or in equity, the right to an injunction, specific performance or other equitable relief to prevent any violation by her of any of the provisions of this Agreement including, without limitation, the provisions of
Sections 7 and 8. 


  

	9.2	 Injunction – In the event of any dispute under Sections 7 and/or 8, Dr. Janes agrees that QLT will be entitled, without showing
actual damages, to seek a temporary or permanent injunction restraining her conduct, pending a determination of such dispute and that no bond or other security will be required from QLT in connection therewith. 



  
 11 









	9.3	 Additional Remedies – Dr. Janes acknowledges and agrees that the remedies of QLT specified in this Agreement are in addition to,
and not in substitution for, any other rights and remedies of QLT at law or in equity and that all such rights and remedies are cumulative and not alternative or exclusive of any other rights or remedies and that QLT may have recourse to any one or
more of its available rights and remedies as it will see fit. 


  

	10.	 GENERAL MATTERS 


  

	10.1	 Tax Withheld – The parties acknowledge and agree that all payments to be made by QLT to Dr. Janes under this Agreement will be
subject to QLT’s withholding of applicable withholding taxes. 


  

	10.2	 Independent Legal Advice – Dr. Janes acknowledges that she has obtained or had the opportunity to obtain independent legal
advice with respect to this Agreement and all of its terms and conditions. 


  

	10.3	 Binding Agreement – The parties agree that this Agreement will enure to the benefit of and be binding upon each of them and
their respective heirs, executors, successors and assigns. 


  

	10.4	 Governing Law – The parties agree that this Agreement will be governed by and interpreted in accordance with the laws of the
Province of British Columbia and the laws of Canada applicable to this Agreement. All disputes arising under this Agreement will be referred to the Courts of the Province of British Columbia, which will have exclusive jurisdiction, unless there is
mutual agreement to the contrary. 


  

	10.5	 Notice – The parties agree that any notice or other communication required to be given under this Agreement will be in writing
and will be delivered personally or by facsimile transmission to the addresses set forth on page 1 of this Agreement to the attention of the following persons: 



 

	 	(a)	 If to QLT – Attention: President and Chief Executive Officer, Fax No. (604) 707-7001, 



with a copy to: 

QLT Inc. 

887 Great Northern Way, Suite 101 

Vancouver, British Columbia 

Attention: Principal Legal Officer 

Fax No.: (604) 873-0816 
  

	 	(b)	 If to Dr. Janes – To the address for Dr. Janes specified on page 1 of this Agreement; 



or to such other addresses and persons as may from time to time be notified in writing by the parties. Any notice
delivered personally will be deemed to have been given and received at the time of delivery. Any notice delivered by facsimile transmission will be deemed to have been given and received on the next business day following the date of
transmission. 
  

	10.6	 Survival of Terms 



 

	 	(a)	 Dr. Janes’ Obligations – Dr. Janes acknowledges and agrees that her representations, warranties, covenants, agreements,
obligations and liabilities under any and all of Sections 7, 8 and 10 of this Agreement will survive any termination of this Agreement. 


  

	 	(b)	 Company’s Obligations – QLT acknowledges and agrees that its representations, warranties, covenants, agreements, obligations and
liabilities under any and all of Sections 3, 4, 5 and 10 of this Agreement will survive any termination of this Agreement. 


  

	 	(c)	 Without Prejudice – Any termination of this Agreement will be without prejudice to any rights and obligations of the parties arising or
existing up to the effective date of such expiration or termination, or any remedies of the parties with respect thereto. 



  
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	10.7	 Waiver – The parties agree that any waiver of any breach or default under this Agreement will only be effective if in writing
signed by the party against whom the waiver is sought to be enforced, and no waiver will be implied by indulgence, delay or other act, omission or conduct. Any waiver will only apply to the specific matter waived and only in the specific instance in
which it is waived. 


  

	10.8	 Entire Agreement – The parties agree that the provisions contained in this Agreement, any Stock Option Agreements and the Change
of Control Agreement entered into between QLT and Dr. Janes constitute the entire agreement between QLT and Dr. Janes with respect to the subject matters hereof and thereof, and supersede all previous communications, understandings and agreements
(whether verbal or written) between QLT and Dr. Janes regarding the subject matters hereof and thereof. QLT and Dr. Janes hereby agree that the employment agreement previously entered into between them dated July 29, 2005 is terminated and
replaced by this Agreement. To the extent that there is any conflict between the provisions of this Agreement, the Change of Control Agreement and any Stock Option Agreements, between QLT and Dr. Janes, the following provisions will apply:



  

	 	(a)	 Change of Control – If the conflict is with respect to an event, entitlement or obligation in the case of a Change of Control of QLT
(as defined in the Change of Control Agreement entered into between QLT and Dr. Janes), the provisions of that Change of Control Agreement will govern (unless Dr. Janes otherwise elects as contemplated in paragraph 5.8 of this Agreement).



  

	 	(b)	 Stock Options – If the conflict is with respect to an entitlement or obligation with respect to stock options of QLT, the provisions of
the Stock Option Agreements will govern (unless the parties otherwise mutually agree). 


  

	 	(c)	 Other – In the event of any other conflict, the provisions of this Agreement will govern (unless the parties otherwise mutually agree).



  

	10.9	 Severability of Provisions – If any provision of this Agreement as applied to either party or to any circumstance is adjudged by
a court of competent jurisdiction to be void or unenforceable for any reason, the invalidity of that provision will in no way affect (to the maximum extent permissible by law): 



 

	 	(a)	 The application of that provision under circumstances different from those adjudicated by the court; 



 

	 	(b)	 The application of any other provision of this Agreement; or 



 

	 	(c)	 The enforceability or invalidity of this Agreement as a whole. 



If any provision of this Agreement becomes or is deemed invalid, illegal or unenforceable in any jurisdiction by reason of the
scope, extent or duration of its coverage, then the provision will be deemed amended to the extent necessary to conform to applicable law so as to be valid and enforceable or, if the provision cannot be so amended without materially altering the
intention of the parties, then such provision will be stricken and the remainder of this Agreement will continue in full force and effect. 
  

	10.10	 Captions – The parties agree that the captions appearing in this Agreement have been inserted for reference and as a matter of
convenience and in no way define, limit or enlarge the scope or meaning of this Agreement or any provision. 


  

	10.11	 Amendments – Any amendment to this Agreement will only be effective if the amendment is in writing and is signed by QLT and Dr.
Janes. 


 IN WITNESS WHEREOF the parties have executed this Agreement as of the day and year first written above.

 QLT INC. 

					
			
	 By:
	  	 /s/ Robert L. Butchofsky
	  	 /s/ Lana Janes

			
		  	 ROBERT L. BUTCHOFSKY
	  	 DR. LANA JANES

			
		  	 PRESIDENT AND CHIEF EXECUTIVE OFFICER
	  	


  
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 SCHEDULE A 

FINAL RELEASE 
 IN
CONSIDERATION OF the payments made to me by QLT Inc. (hereinafter called “QLT”) pursuant to paragraph 5.3 of the employment agreement dated              day of
            , 20     between the undersigned and QLT and in consideration of the waiver by QLT of its rights under paragraph 5.5(a) of that employment agreement,
effective the date of this Release, I,                      of
                     do hereby remise, release and forever discharge QLT, having a place of business at 887 Great Northern Way, Suite 101 in
the City of Vancouver, Province of British Columbia, V5T 4T5, its officers, directors, servants, employees and agents, and their heirs, executors, administrators, successors and assigns, as the case may be, of and from any and all manner of
actions, causes of action, suits, contracts, claims, damages, costs and expenses of any nature or kind whatsoever, whether in law or in equity, which as against QLT or such persons as aforesaid or any of them, I have ever had, now have, or at
any time hereafter I or my personal representatives can, shall or may have, by reason of or arising out of my employment with QLT and/or the subsequent termination of my employment with QLT on or about
                    , 20    , or in any other way connected with my employment with QLT and more specifically, without
limiting the generality of the foregoing, any and all claims for damages for termination of my employment, constructive termination of my employment, loss of position, loss of status, loss of future job opportunity, loss of opportunity to enhance my
reputation, the timing of the termination and the manner in which it was effected, loss of bonuses, loss of shares and/or share options, loss of benefits, including life insurance and short and long-term disability benefit coverage, and any other
type of damages arising from the above. Notwithstanding the foregoing, nothing in this Release will act to remise, release or discharge QLT from obligations, if any, which QLT may have pursuant to any indemnity agreements previously entered
into between me and QLT or from any rights I may have to claim coverage under QLT’s past, current or future director and/or officer insurance policies, in either case with respect to existing or future claims that may be brought by third
parties. 
 IT IS UNDERSTOOD AND AGREED that this Release includes any and all claims arising under the Employment Standards Act,
Human Rights Code, or other applicable legislation and that the consideration provided includes any amount that I may be entitled to under such legislation. 

IT IS FURTHER UNDERSTOOD AND AGREED that this Release is subject to compliance by QLT with the said conditions as stipulated in
paragraph 5.3 of the aforementioned employment agreement entered into between the undersigned and QLT. 
 IT IS FURTHER UNDERSTOOD
AND AGREED THAT QLT will withhold and remit income tax and other statutory deductions from the aforesaid consideration and I agree to indemnify and hold harmless QLT from any further assessments for income tax, repayment of any
employment insurance benefits received by me, or other statutory deductions which may be made under statutory authority. 
 IT IS FURTHER
UNDERSTOOD AND AGREED that this is a compromise and is not to be construed as an admission of liability on the part of QLT. The terms of this Release set out the entire agreement between QLT and me with respect to the matters
described herein and are intended to be contractual and not a mere recital. 
 IT IS FURTHER UNDERSTOOD AND AGREED that I will keep
the contents of this settlement and all communication relating thereto confidential except to Revenue Canada or as is required to obtain legal and tax advice, or to enforce my rights hereunder in a court of law, as is required by law. 

IT IS FURTHER UNDERSTOOD AND AGREED that the consideration described herein was voluntarily accepted by me for the purpose of making a
full and final settlement of all claims described above and that prior to agreeing to the settlement, I was advised by QLT of my right to receive independent legal advice. 

  
 14 








 IN WITNESS WHEREOF this Release has been executed effective the
             day of                     , 20    . 

 

			                 		                 		                 
			
	SIGNED, SEALED AND DELIVERED	  	 )
	  	
	By                            in the presence of:	  	 )
	  	
		  	 )
	  	
		  	 )
	  	  

	 (seal)  
	 	 	  	 )
	  	 LANA JANES

	 Name
	  	 )
	  	
	 	  	 )
	  	
	 Address
	  	 )
	  	
	 	  	 )
	  	
		  	 )
	  	
	 	  	 )
	  	
	 Occupation
	  	 )
	  	


  
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