Document:

Prepared by R.R. Donnelley Financial -- EX-10.6

 Exhibit 10.6 
 Consulting Agreement 
 This Agreement is made as of the 1st day of January, 2004
(the “Effective Date”), 
 BETWEEN: 
 XENON GENETICS INC, a Canadian corporation having its head office at 3650 Gilmore Way, Burnaby, BC, V5G 4W8; Phone: 604-484-3300; Fax: 604-484-3450 

(the “Company”) 
 OF THE FIRST PART; 
 GENWORKS INC., a British
Columbia corporation having its offices at 4484 West 7th
Avenue, Vancouver, BC, V6R 1W9; Phone: 604-222-0236; Fax: 604-222-0241. 
 (the “Consultant”) 

OF THE SECOND PART. 

WHEREAS: 
  

	A.	The Company is carrying on business as a biotechnology company specializing in the discovery and validation of novel genes and drug targets and in the development of
therapeutics and diagnostics for human disease (the “Business”); and 

  

	B.	The Company wishes to engage the Consultant to provide services to the Company in connection with the Business on the terms and conditions hereinafter set out.

 NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the premises and the covenants and agreements
hereinafter contained (the receipt and sufficiency of which is hereby acknowledged), the Company and the Consultant hereby covenant and agree as follows: 
  

	1.	ENGAGEMENT 

  

	1.1	Subject to the terms and conditions of this Agreement, the Company agrees to engage the Consultant to provide the Services (as described in Section 3.1 of this
Agreement) during the term of this Agreement and the Consultant accepts such engagement from the Company. 

  

	2.	TERM 

  

	2.1	 Unless earlier terminated pursuant to Section 8.1, the term of the Consultant’s engagement pursuant to this Agreement (the
“Term”) shall commence on the Effective Date and shall terminate on December 31st, 2004. 

  
 Page 1 of 8

	2.2	The Company and the Consultant may, at any time, extend or amend this Agreement, including the Term of this Agreement, by mutual written consent. Such amendments will
be subject to approval by the Board of Directors of the Company. 

  

	3.	SERVICES OF THE CONSULTANT 

  

	3.1	The Consultant agrees to faithfully, honestly and diligently provide the Services to the Company as described in Schedule “A”. The
Consultant also represents, warrants and agrees that it can and will perform the Services required by this Agreement without disclosing or using any confidential information and/or proprietary information of a third Party. 

 

	4.	NON-COMPETITION 

  

	4.1	The Consultant and the Company each acknowledge and agree that, during the term of this Agreement or any extension or renewal thereof, the Consultant may be retained as
a consultant or employed by other persons, firms, or corporation engaged in the same or similar Business as that of the Company, provided however, that the provisions of this Agreement, particularly with regard to the Consultant’s duties of
non-use and non-disclosure of the Company’s proprietary information, as provided below, shall be strictly observed by the Consultant with respect to such other persons, firms or corporations. 

 

	4.2	The Consultant warrants and represents to the Company that neither the Consultant nor its employees or agents have any agreement(s), either written or oral, to provide
consulting or other services to any other person, firm or company in the Company’s area of Business that would conflict with the Services the Consultant is providing to the Company hereunder. During the Term of this Agreement and for a period
of one (1) year following said Term, the Consultant agrees that neither the Consultant nor its employees or agents will provide any consulting or other services to any other person, firm or company on matters relating to the Company’s area
of Business and/or the Services, unless the Consultant has first provided at least fifteen (15) days written notice to the Company prior to entering into any such other agreements. 

 

	5.	CONFIDENTIAL INFORMATION AND NON-DISCLOSURE 

  

	5.1	 For the purposes of this Agreement, “Confidential Information” means information, know-how and data (which may be oral, written,
graphic, demonstrative, machine recognizable or otherwise) disclosed to the Consultant or developed by the Consultant as a consequence of or through the engagement of the Consultant by the Company pursuant to this Agreement, including without
limitation the research, products, technology, ideas, inventions, methods, formulas, algorithms, computer programs, processes, designs, compositions, photographs, plans, product concepts, specifications, samples, reports, laboratory notebooks,
services, business plans and strategies, business operations and systems, marketing techniques and pricing policies, financial information, information concerning employees, customers, licensors, licensees and/or vendors of the Company, all Company
Inventions, and any Third Party Information. “Third Party Information” means any Confidential Information 

  
 Page 2 of 8

 
(including those types of information enumerated in the definition of Confidential Information) owned by a third party and disclosed to the Consultant as a consequence of or through the
engagement of the Consultant by the Company pursuant to this Agreement. Confidential Information shall not mean information, know how and data which: 
  

	 	(a)	was legally known to or in the possession of the Consultant as evidenced by written records at the time of disclosure to the Consultant by the disclosing party;

  

	 	(b)	is or has become part of the public domain through no fault of the Consultant; or 

 

	 	(c)	has been disclosed to the Consultant by a third party without breaching any contractual, confidential, or fiduciary obligation to the Company. 

 

	5.2	With respect to Confidential Information that might be disclosed to the Consultant pursuant to this Agreement, the Consultant acknowledges and agrees as follows:

  

	 	(a)	that all Confidential Information received by the Consultant is proprietary to the Company, or the third party in the case of the Third Party Information, has been
designed, developed, accumulated at great expense and over lengthy periods and is secret and constitutes the exclusive property of the Company, or the third party in the case of Third Party Information; and 

 

	 	(b)	that, during the Term of this Agreement and for a period of five (5) years thereafter: 

 

	 	(i)	the Consultant will hold and keep Fall Confidential Information in the strictest confidence; 

 

	 	(ii)	except as specifically authorized in writing by the Company, the Consultant shall not, directly or indirectly, (unless required to do so by applicable law), use,
disseminate, disclose, lecture upon, publish, make copies of or otherwise summarize the Confidential Information; and 

  

	 	(iii)	the Consultant will ensure that, in respect to Confidential Information, its employees and agents are under written confidentiality obligations of equivalent or greater
stringency than those confidentiality obligations of the Consultant under this Agreement. 

  

	6.	RIGHTS TO INTELLECTUAL PROPERTY 

  

	6.1	For the purpose of this Agreement, “Company Inventions” means any discoveries, concepts, inventions, improvements, ideas and developments, whether or
not they may be patented, copyrighted or otherwise protected, including without limitation processes, methods, formulas, procedures, and techniques (including without limitation improvements and modifications thereto) developed or conceived by the
Consultant, its employees or agents, whether alone or jointly with others, through the use of Confidential Information or through the use of information that was Confidential Information when it was first disclosed by the Company to the Consultant

  
 Page 3 of 8

	6.2	With respect to Company Inventions made by the Consultant, its employees or agents, the Consultant agrees as follows: 

 

	 	(a)	Except as otherwise specifically provided by written agreement between the Company and the Consultant, the Consultant’s employees or the Consultant’s agents,
the Company is the exclusive owner of any Company Invention made, conceived, developed or worked upon by the Consultant, during or after the Term, including all intellectual property rights in and to such Company Inventions;

  

	 	(b)	The Consultant and/or the Consultant’s employees or agents hereby assign to the Company all right, title and interest throughout the world he/she may have in any
Company Inventions, including without limitation, all copyrights, patent rights, trade-marks, trade names, industrial designs, trade secrets and other intellectual property rights in and to each Company Invention, effective at the time each is
created; 

  

	 	(c)	The Consultant and/or the Consultant’s employees or agents shall fully and promptly disclose and deliver to the Company all Company Inventions, together with any
documentation and materials that relate thereto and any explanations that may be necessary in connection with any registrations that may be made to obtain copyright, patent, trade-mark, trade name, industrial design or other protection relating to
the Company Inventions; 

  

	 	(d)	To the extent a formal transfer or assignment of any “rights of the Consultant (or the Consultant’s employees or agents) in any Company Invention is required,
or the consent of the Consultant to the registration of any right in any Company Invention is required, the Consultant and the Consultant’s employees and agents (as applicable) shall execute and deliver any further assignments, documentation
and other instruments as may be reasonably required by the Company to effect the transfer, assignment or registration and 

  

	 	(e)	In the event that the Company makes or proposes to make any Canadian, United States or foreign patent applications relating the Company Invention, the Consultant and
the Consultant’s employees and agents shall cooperate fully with the Company and its patent counsel in preparing and prosecuting any such applications. 

 

	7.	COMPENSATION 

  

	7.1	As full consideration for the Services and other covenants and agreements provided by the Consultant under this Agreement, the compensation payable by the Company to
the Consultant shall be as follows: 

  

	 	(a)	for the period from January 1, 2004 to December 31, 2004: a consulting fee totaling One Hundred and Fifty Five Thousand Dollars ($155,000.00), payable monthly
in arrears; and 

  

	 	(b)	 in addition to the above, on an annual basis, the Consultant is also eligible to receive a performance bonus, such bonus to be paid in an amount and in
a manner to be 

  
 Page 4 of 8

	 	
determined by the Board of Directors of the Company, in its sole discretion. The awarding of such bonus (if any) will be decided by the Board of Directors following the Board’s assessment of
the Consultant’s contribution(s) to the Company’s successful completion of its major corporate objectives including execution of a significant corporate partnership, an equity financing and a successful IND application for the
Company’s SCD1 program. 

  

	7.2	The Consultant will also receive reimbursement for the following expenses: 

 

	 	(a)	payments incurred by the Consultant in respect of disability insurance premiums, life insurance premiums, and/or health club memberships to which the employee(s) or
agent(s) retained by the Consultant to perform the Services hereunder are the beneficiaries, provided that the total amount of such payments do not exceed more than 4.0% of the consulting fees to be paid to the Consultant over the Term of this
Agreement (excluding performance bonus payments); and 

  

	 	(b)	all other reasonable and approved expenses incurred by the Consultant on behalf of the Company, including travel and other out-of-pocket expenses.

 Such expenses shall be billed to the Company on a monthly basis and will be paid within thirty (30) days of
the Company’s receipt of the Consultant’s invoice. 
  

	8.	TERMINATION 

  

	8.1	The Company may terminate this Agreement at any time without cause by giving the Consultant written notice of such termination. In such event, the Consultant shall be
entitled to receive the lesser of: 

  

	 	(a)	its consulting fee for a period of six months plus one additional month for each year of service to the Company up to a maximum of 12 months; or

  

	 	(b)	all compensation due to the Consultant under this Agreement for the time remaining in the Term of this Agreement following the date on which the notice of termination
occurred, 

 in each case due when such compensation would have otherwise been payable but for the termination of
this Agreement. In such event(s), termination shall be effective immediately and the Company will have no further obligations to the Consultant under this Agreement. 
  

	8.2	The Company may also terminate this Agreement at any time for cause by giving the Consultant written notice of such termination. In the event of termination for cause,
termination shall be effective immediately and the Company will have no further obligations to the Consultant under this Agreement. For purposes of this Agreement, cause includes but is not limited to, a failure by the Consultant to perform and
discharge the Services hereunder, misconduct injurious to the Company, and/or personal dishonesty or conviction of a felony offence by the Consultant or by any of the Consultant’s employees or agents that the Consultant has engaged in the
course of its performance of Services under this Agreement. 

  
 Page 5 of 8

	8.3	The obligations set out in Sections 4, 5 and 6 herein shall survive any termination or expiration of this Agreement. Upon termination or expiration of this
Agreement, the Consultant shall deliver to the Company all Confidential Information in its control or possession and shall promptly disclose any and all previously undisclosed Company Inventions. 

 

	8.4	The Company may terminate this Agreement immediately and further obligation to the Consultant if at any time the Consultant is unable or unwilling:

  

	 	(a)	to perform the Services or is in breach of any material provision of this Agreement; or 

 

	 	(b)	to engage an employee or agent that the Company views as acceptable and able, in the Company’s sole discretion, to perform the Services under this Agreement.

  

	9.	MISCELLANEOUS 

  

	9.1	This Agreement, including all Schedules attached hereto, constitutes the whole agreement between the parties, there being no written or oral terms, conditions,
covenants, agreements, representations or warranties except as expressly set out herein. 

  

	9.2	This Agreement shall be governed by and interpreted in accordance with the laws of the Province of British Columbia, and the laws of the Canada in force therein without
regard to any conflict of law rules. Both parties agree that by executing this Agreement they have attorned to the jurisdiction of the Supreme Court of British Columbia, and the Supreme Court of British Columbia shall have non-exclusive jurisdiction
over this Agreement. 

  

	9.3	The relationship between the Consultant and the Company is one of independent contractors, and neither party shall have the authority to bind or act as the agent for
the other, nor shall be responsible for the actions, contracts, debts, or liabilities of the other by virtue of this Agreement. No partnership, joint venture or similar business arrangement will be created or will be deemed to be created by this
Agreement or by any actions of the parties under this Agreement. 

  

	9.4	The Consultant shall be responsible for the management of its employees and without limiting the generality of the foregoing, shall be responsible for payment to the
proper authorities of all income tax remittances, employment insurance premiums, Canada Pension Plan contributions, Workers’ Compensation premiums and all other employment-related levies or expenses related to its employees.

  

	9.5	Neither the Consultant nor its employees or agents will be entitled to receive, or receive, rights or privileges applicable to employees of the Company, including but
not limited to liability insurance, group insurance, pension plans, holiday or vacation pay, or any other benefits which may be available to Company employees from time to time. 

 

	9.6	If at any time Canada Customs and Revenue Agency or any other competent authority determines that the Consultant or any employee or agent of the Consultant is an
employee of the Company, then the Company will immediately commence to make all statutorily required withholding and remittances in respect of payments to the Consultant. 

  
 Page 6 of 8

	9.7	The Consultant represents and warrants that it is legally permitted to enter into this Agreement and perform the obligations thereof, and that such obligations are not
inconsistent with any other obligation it may have. The Consultant further represents and warrants that it has entered into binding agreement(s) with each of its employees and agents that may be engaged by the Consultant to provide Services under
this Agreement, and that said employees and agents have irrevocably agreed to any and all provisions of this Agreement, to the extent that such provisions may apply to them. 

 

	9.8	The Consultant may not assign or otherwise transfer any of its rights, duties or obligations under this Agreement without prior written consent of the Company.

  

	9.9	All monetary amounts referred to herein are in Canadian currency. 

  

	9.10	In the event that any part, section, clause, paragraph or subparagraph of this Agreement shall be held to be indefinite, invalid, illegal or otherwise voidable or
unenforceable, the entire Agreement shall not fail on the account thereof, and the balance of the Agreement shall continue in full force and effect. 

  

	9.11	This Agreement may be signed in counterparts, or facsimile counterparts, each of which when executed by any of the signatories hereto shall be deemed to be an original
and such counterparts shall together constitute one and the same Agreement. 

 IN WITNESS WHEREOF duly-authorized
signatories of the Company and the Consultant, each after having had the opportunity to discuss this Agreement with their respective legal advisors, have executed this Agreement on the date(s) indicated below but effective as of the Effective Date.

  

									
	XENON GENETICS INC.	 		 	GENWORKS INC.
					
	Per;	 	/s/ Simon N. Pimstone	 		 	Per:	 	/s/ Michael R. Hayden
		 	Simon N. Pimstone	 		 		 	Michael R. Hayden

									
					
	Date : 	 	6 May, 2004	 		 	Date : 	 	6 May, 2004

  
 Page 7 of 8

 Schedule “A”- Services 

Duties and Responsibilities of the Consultant 
  

	1.	The Consultant shall ensure that all Services provided to the Company will be performed by Dr. Michael R. Hayden , and/or such other employee or agent of the
Consultant that is approved in advance by the Company, in the Company’s sole discretion. 

  

	2.	The Consultant shall report to the President and CEO of the Company and shall devote sufficient working time and efforts to the clinical, scientific and business
affairs of the Company as are necessary and consistent with the needs of the Company. The Services to be provided by the Consultant shall include the following: 

 

	 	a.	Consults on all aspects of the Company’s scientific research programs; 

 

	 	b.	Chairs the Company’s Scientific Advisory Board, consulting with individual members of the Board as necessary; 

 

	 	c.	Consults on the recruitment of senior scientific staff; 

  

	 	d.	Oversees development and implementation of the Company’s R&D plans and participates in the development and execution of the Company’s overall strategic
plan; 

  

	 	e.	Consults on the development and implementation of appropriate policies and procedures governing the Company’s research activities; 

 

	 	f.	Represents the Company in meetings with the pharmaceutical industry and the scientific and business community including attending conferences and meetings both within
and outside of Canada; 

  

	 	g.	Ensures that all scientific activities and operations are carried out in compliance with local, provincial, federal and governmental regulations and laws; and

  

	 	h.	Provide all such other services as the Board of Directors of the Company shall determine from time to time, in accordance with the policies and procedures established
by the Company. 

  

	3.	In addition to the above, at the option of the Company, the Consultant may from time to time perform services on behalf of affiliates of the Company and will accept a
transfer of its Services to any such affiliate at the request of the Company. 

  
 Page 8 of 8

 This AMENDING AGREEMENT is dated for reference the 18th day of January, 2005. 

BETWEEN: 
 XENON
PHARMACEUTICALS INC. (formerly Xenon Genetics Inc.) having its head office at 3650 Gilmore Way, Burnaby, British Columbia, V5G 4W8 
 (the “Company”) 
 OF THE FIRST PART; 

AND: 
 GENWORKS INC., a British Columbia corporation having its offices at 4484 West 7th Avenue, Vancouver, BC, V6R 1W9; Phone: 604-222-0236; Fax: 604-222-0241. 

(the “Consultant”) 
 OF THE SECOND PART. 
 WHEREAS: 

A.    The Company and the Consultant entered into a consulting agreement made as of January 1, 2004, (the “Consulting
Agreement”); and 
 B.    The parties now wish to make certain amendments to the Consulting Agreement, as detailed
here in this Agreement (the “Amending Agreement”). 
 NOW THEREFORE, for good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged by all parties hereto, the Company and the Consultant hereby covenant and agree as follows: 

1.    Capitalized terms used herein, which are not otherwise defined herein, shall have the meaning ascribed to such terms in the
Consulting Agreement. 
 2.    Section 2.1 of the Consulting Agreement is hereby amended by deleting it in its entirety
and substituting therefor the following: 
 “Unless earlier terminated pursuant to Section 8.1, the term of the
Consultant’s engagement pursuant to this Agreement (the “Term”) shall commence on the Effective Date and shall terminate on December 31, 2005.” 

  
 Page 1 of 2

 Section 7.1 is hereby amended by deleting it in its entirety and substituting the
following: 
 “As full consideration for the Services and other covenants and agreements provided by the Consultant under
this Agreement, the compensation payable by the Company to the Consultant shall be as follows: 
  

	 	(a)	for the period from January 1, 2004 to December 31, 2005: a consulting fee totaling One Hundred and Fifty Five Thousand Dollars ($155,000.00)payable monthly
in arrears; and 

  

	 	(b)	in addition to the above, on an annual basis, the Consultant is also eligible to receive a performance bonus, such bonus to be paid in an amount and in a manner to be
determined by the Board of Directors of the Company, in its sole discretion. The awarding of such bonus (if any) will be decided by the Board of Directors following the Board’s assessment of the Consultant’s contribution(s) to the
Company’s successful completion of its major corporate objectives including in-licensing (or acquisition) of a clinical compound or program, an equity financing and achievement of the IND filing milestone payment for the Company’s SCD1
program.” 

 4.    Except as amended herein, the Consulting Agreement remains in full force and effect,
unamended. 
 5.    This Amending Agreement may be signed in counterparts, or facsimile counterparts, each of which when
executed by any of the signatories hereto shall be deemed to be an original and such counterparts shall together constitute one and the same agreement. 
 IN WITNESS WHEREOF duly authorized signatories of the Company and the Consultant, each after having had the opportunity to discuss this Amending Agreement with their respective legal advisors, have
executed this Amending Agreement on the date(s) indicated below but effective as of the Effective Date of the Consulting Agreement. 
  

									
	XENON PHARMACEUTICALS INC.	 		 	GENWORKS INC.
					
	By:	 	/s/ Simon N. Pimstone	 		 	By:	 	/s/ Michael R. Hayden
		 	 SIMON N. PIMSTONE

President & CEO
	 		 		 	MICHAEL R. HAYDEN

									
					
	Date : 	 	21 Jan/2005	 		 	Date : 	 	20/1/05

  
 Page 2 of 2

 This SECOND AMENDING AGREEMENT is dated for reference the 15th day of February, 2006. 

BETWEEN: 
 XENON
PHARMACEUTICALS INC. (formerly Xenon Genetics Inc.) having its head office at 3650 Gilmore Way, Burnaby, British Columbia, V5G 4W8 
 (the “Company”) 
 OF THE FIRST PART; 

AND: 
 GENWORKS INC., a British Columbia corporation having its offices at 4484 West 7th Avenue, Vancouver, BC, V6R 1W9; Phone: 604-222-0236; Fax: 604-222-0241. 

(the “Consultant”) 
 OF THE SECOND PART. 
 WHEREAS: 

A.    The Company and the Consultant entered into a consulting agreement made as of January 1, 2004 and amended January 18,
2005, (the “Consulting Agreement”); and 
 B.    The parties now wish to make certain amendments to the
Consulting Agreement, as detailed here in this Agreement (the “Second Amending Agreement”). 
 NOW THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by all parties hereto, the Company and the Consultant hereby covenant and agree as follows: 
 1.    Capitalized terms used herein, which are not otherwise defined herein, shall have the meaning ascribed to such terms in the Consulting Agreement. 

2.    Section 2.1 of the Consulting Agreement is hereby amended by deleting it in its entirety and substituting therefor the
following: 
 “Unless earlier terminated pursuant to Section 8.1, the term of the Consultant’s engagement pursuant
to this Agreement (the “Term”) shall commence on the Effective Date and shall terminate on December 31, 2006.” 

3.    Except as amended herein, the Consulting Agreement remains in full force and effect, unamended. 

  
 Page 1 of 2

 4.     This Amending Agreement may be signed in counterparts, or facsimile counterparts,
each of which when executed by any of the signatories hereto shall be deemed to be an original and such counterparts shall together constitute one and the same agreement. 
 IN WITNESS WHEREOF duly authorized signatories of the Company and the Consultant, each after having had the opportunity to discuss this Amending Agreement with their respective legal advisors, have
executed this Amending Agreement on the date(s) indicated below but effective as of the Effective Date of the Consulting Agreement. 
  

									
	XENON PHARMACEUTICALS INC.	 		 	GENWORKS INC.
					
	By:	 	/s/ Simon N. Pimstone	 		 	By:	 	/s/ Michael R. Hayden
		 	 SIMON N. PIMSTONE

President & CEO
	 		 		 	MICHAEL R. HAYDEN

									
					
	Date : 	 	March 13/06	 		 	Date : 	 	March 9, 2006

  
 Page 2 of 2

 This THIRD AMENDING AGREEMENT is dated for reference the 17th day of September, 2007. 

BETWEEN: 
 XENON
PHARMACEUTICALS INC. (formerly Xenon Genetics Inc.) having its head office at 3650 Gilmore Way, Burnaby, British Columbia, V5G 4W8 
 (the “Company”) 
 OF THE FIRST PART; 

AND: 
 GENWORKS INC., a British Columbia corporation having its offices at 4484 West 7th Avenue, Vancouver, BC, V6R 1W9; Phone: 604-222-0236; Fax: 604-222-0241. 

(the “Consultant”) 
 OF THE SECOND PART. 
 WHEREAS: 

A    The Company and the Consultant entered into a consulting agreement made as of January 1, 2004, amended January 18,
2005, and further amended February 15, 2006 (the “Consulting Agreement”); and 
 B.    The parties now
wish to make certain amendments to the Consulting Agreement, as detailed here in this agreement (the “Third Amending Agreement”). 
 NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by all parties hereto, the Company and the Consultant hereby covenant and agree as
follows: 
 1.    Capitalized terms used herein, which are not otherwise defined herein, shall have the meaning ascribed to
such terms in the Consulting Agreement. 
 2.    Section 2.1 of the Consulting Agreement is hereby amended by deleting
it in its entirety and substituting therefor the following: 
 “Unless earlier terminated pursuant to Section 8.1, the
term of the Consultant’s engagement pursuant to this Agreement (the “Term”) shall commence on the Effective Date and shall terminate on December 31, 2008.” 

  
 Page 1 of 2

	3.	Section 7.1 is hereby amended by deleting it in its entirety and substituting the following: 

“As full consideration for the Services and other covenants and agreements provided by the Consultant under this Agreement, the
compensation payable by the Company to the Consultant shall be as follows: 
  

	 	(a)	for the period from January 1, 2004 to December 31, 2006: a consulting fee totaling One Hundred and Fifty Five Thousand Dollars ($155,000.00), payable monthly
in arrears; 

  

	 	(b)	for the period from January 1, 2007 to December 31, 2008: a consulting fee totaling One Hundred and Sixty Thousand Dollars ($160,000.00), payable monthly in
arrears; and 

  

	 	(c)	in addition to the above, on an annual basis, the Consultant is also eligible to receive a performance bonus, such bonus to be paid in an amount and in a manner to be
determined by the Board of Directors of the Company, in its sole discretion. The awarding of such bonus (if any) will be decided by the Board of Directors following the Board’s assessment of the Consultant’s contribution(s) to the
Company’s successful completion of its major corporate objectives including in-licensing (or acquisition) of a clinical compound or program, a major pharmaceutical alliance, selection of a clinical candidate for topical administration and
initiation of a phase Ha proof-of-concept trial.” 

  

	4.	Except as amended herein, the Consulting Agreement remains in full force and effect, unamended. 

 5.     This Third Amending Agreement may be signed in counterparts, and delivered personally or by courier, mail, facsimile or electronically, each of which counterparts when
executed by any of the signatories hereto shall be deemed to be an original and such counterparts shall together constitute one and the same agreement 
 IN WITNESS WHEREOF duly authorized signatories of the Company and the Consultant, each after having had the opportunity to discuss this Third Amending Agreement with their respective legal
advisors, have executed this Third Amending Agreement on the date(s) indicated below but effective as of the Effective Date of the Consulting Agreement. 
  

									
	XENON PHARMACEUTICALS INC.	 		 	GENWORKS INC.
					
	By:	 	/s/ Simon N. Pimstone	 		 	By:	 	/s/ Michael R. Hayden
		 	 SIMON N. PIMSTONE

President & CEO
	 		 		 	MICHAEL R. HAYDEN

									
					
	Date : 	 	20 Sept/07	 		 	Date : 	 	September 27, 2007

  
 Page 2 of 2

 This FOURTH AMENDING AGREEMENT is dated and effective as of January 1, 2009. 

BETWEEN: 
 XENON
PHARMACEUTICALS INC. (formerly Xenon Genetics Inc.) having its head office at 3650 Gilmore Way, Burnaby, British Columbia, V5G 4W8 
 (the “Company”) 
 OF THE FIRST PART; 

AND: 
 GENWORKS INC., a British Columbia corporation having its offices at 4484 West 7th Avenue, Vancouver, BC, V6R 1W9; Phone: 604-222-0236; Fax: 604-222-0241. 

(the “Consultant”) 
 OF THE SECOND PART. 
 WHEREAS 

A.    The Company and the Consultant entered into a consulting agreement made as of January 1, 2004, which was subsequently
amended and extended pursuant to Amending Agreements dated for reference January 18, 2005, February 15, 2006 and September 17, 2007 (the “Consulting Agreement”); and 

B.    The parties now wish to make certain amendments to the Consulting Agreement, as detailed here in this agreement (the
“Fourth Amending Agreement”). 
 NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged by all parties hereto, the Company and the Consultant hereby covenant and agree as follows: 

1.    Capitalized terms used herein, which are not otherwise defined herein, shall have the meaning ascribed to such terms in the
Consulting Agreement. 
 2.    Section 2.1 of the Consulting Agreement is hereby amended by deleting it in its entirety
and substituting therefor the following: 
 “Unless earlier terminated pursuant to Section 8.1, the term of the
Consultant’s engagement pursuant to this Agreement (the “Term”) shall commence on the Effective Date and shall terminate on June 30, 2011.” 

  
 Page 1 of 3

 3.    Section 7.1 is hereby amended by deleting it in its entirety and substituting
the following: 
 “As full consideration for the Services and other covenants and agreements provided by the Consultant
under this Agreement, the compensation payable by the Company to the Consultant shall be as follows: 
  

	 	(a)	for the period from January 1, 2004 to December 31, 2006: a consulting fee totaling One Hundred and Fifty Five Thousand Dollars ($155,000.00), payable monthly
in arrears; 

  

	 	(b)	for the period from January 1, 2007 to December 31, 2008: a consulting fee totaling One Hundred and Sixty Thousand Dollars ($160,000.00), payable monthly in
arrears; 

  

	 	(c)	for the period from January 1, 2009 to June 30, 2009: a consulting fee totaling Eighty-five Thousand Dollars ($85,000.00), payable monthly in arrears;

  

	 	(d)	for the period from July 1, 2009 to December 31, 2009: a consulting fee totaling One Hundred Thousand Dollars ($100,000.00), payable monthly in arrears;

  

	 	(e)	for the period from January 1, 2010 to December 31, 2010: a consulting fee totaling Two Hundred Thousand Dollars ($200,000.00), payable monthly in arrears;

  

	 	(f)	for the period from January 1, 2011 to June 30, 2011, a consulting fee totaling One Hundred Thousand Dollars ($100,000.00), payable monthly in arrears; and

  

	 	(g)	in addition to the above, on an annual basis, the Consultant is also eligible to receive a performance bonus, such bonus to be paid in an amount and in a manner to be
determined by the Board of Directors of the Company, in its sole discretion. The awarding of such bonus (if any) will be decided by the Board of Directors following the Board’s assessment of the Consultant’s contribution(s) to the
Company’s successful completion of its major corporate objectives.” 

 4.    Subsection 8.1(b) is
hereby amended by deleting it in its entirety and substituting the following: 
  

	 	“(b)	all compensation due to the Consultant under this Agreement for the time remaining in the Term of this Agreement following the date on which the notice of termination
occurred, provided that such compensation amount shall not be less than an amount equivalent to nine (9) months of the Consultant’s consulting fee then otherwise payable hereunder,” 

5.    Except as amended herein, the Consulting Agreement remains in full force and effect, unamended. 

6.    This Fourth Amending Agreement may be signed in counterparts, and delivered personally or by courier, mail, facsimile or
electronically, each of which counterparts when executed by any of 

  
 Page 2 of 3

 
the signatories hereto shall be deemed to be an original and such counterparts shall together constitute one and the same agreement, 
 IN WITNESS WHEREOF duly authorized signatories of the Company and the Consultant, each after having had the opportunity to discuss this Fourth Amending Agreement with their respective legal advisors, have
executed this Fourth Amending Agreement as of the date first noted above 
  

									
	XENON PHARMACEUTICALS INC.	 		 	GENWORKS INC.
					
	By:	 	/s/ Simon N. Pimstone	 		 	By:	 	/s/ Michael R. Hayden
		 	 SIMON N. PIMSTONE

President & CEO
	 		 		 	MICHAEL R. HAYDEN

  
 Page 3 of 3

 This FIFTH AMENDING AGREEMENT is dated and effective as of January 1, 2011. 

BETWEEN: 
 XENON
PHARMACEUTICALS INC. (formerly Xenon Genetics Inc.) having its head office at 3650 Gilmore Way, Burnaby, British Columbia, V5G 4W8 
 (the “Company”) 
 OF THE FIRST PART; 

AND: 
 GENWORKS INC., A British Columbia corporation having its offices at 4484 West 7th Avenue, Vancouver, BC, V6R 1W9; Phone: 604-222-0236; Fax: 604-222-0241 

(the “Consultant”) 
 OF THE SECOND PART. 
 WHEREAS: 

A.    The Company and the Consultant entered into a consulting agreement made as of January 1, 2004, which was subsequently
amended and extended pursuant to Amending Agreements dated for reference January 18, 2005, February 15, 2006, September 17, 2007, and January 1, 2009 (collectively, the “Consulting Agreement”); and 

B.    The parties now wish to make certain amendments to the Consulting Agreement, as detailed here in this agreement (the
“Fifth Amending Agreement”). 
 NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged by all parties hereto, the Company and the Consultant hereby covenant and agree as follows; 
  

	 	1.	Capitalized terms used herein, which are not otherwise defined herein, shall have the meaning ascribed to such terms in the Consulting Agreement.

  

	 	2.	Section 2.1 of the Consulting Agreement is hereby amended by deleting it in its entirety and substituting therefor the following: 

“Unless earlier terminated pursuant to Section 8.1, the term of the Consultant’s engagement pursuant to this Agreement (the
“Term”) shall commence on the Effective Date and shall terminate on December 31, 2011,” 

  
 Page 1 of 2

	 	3.	Section 7.1 is hereby amended as follows: 

  

	 	–	by deleting, in its entirety, subsection 7.1(f), as such is set out below: 

 “(f) for the period from January 1, 2011 to June 30, 2011, a consulting fee totaling One Hundred Thousand Dollars ($100,000.00), payable monthly in arrears; and” 

and 
  

	 	–	by substituting the above, with the following: 

 “(f) for the period from January 1, 2011 to December 31, 2011, a consulting fee totaling Two Hundred and Four Thousand Dollars ($204,000.00), payable monthly in arrears; and”

  

	 	4.	Except as amended herein, the Consulting Agreement remains in full force and effect, unamended. 

 

	 	5.	This Fifth Amending Agreement may be signed in counterparts, and delivered personally or by courier, mail, facsimile or electronically, each of which counterparts when
executed by any of the signatories hereto shall be deemed to be an original and such counterparts shall together constitute one and the same agreement. 

 IN WITNESS WHEREOF duly authorized signatories of the Company and the Consultant, each after having had the opportunity to discuss this Fifth Amending Agreement with their respective legal
advisors, have executed this Fifth Amending Agreement on the dates noted below, but effective as of the date first noted above. 
  

									
	XENON PHARMACEUTICALS INC.	 		 	GENWORKS INC.
					
	By:	 	/s/ Simon N. Pimstone	 		 	By:	 	/s/ Michael R. Hayden
		 	 SIMON N. PIMSTONE

President & CEO
	 		 		 	MICHAEL R. HAYDEN

									
					
	Date : 	 	February 4, 2011	 		 	Date : 	 	February 8, 2011

  
 Page 2 of 2

 This SIXTH AMENDING AGREEMENT is dated and effective as of January 1, 2012. 

BETWEEN: 
 XENON
PHARMACEUTICALS INC. (formerly Xenon Genetics Inc.) having its head office at 3650 Gilmore Way, Burnaby, British Columbia, V5G 4W8 
 (the “Company”) 
 OF THE FIRST PART; 

AND: 
 GENWORKS INC., A British Columbia corporation having its offices at 4484 West 7th Avenue, Vancouver, BC, V6R 1W9; Phone: 604-222-0236; Fax: 604-222-0241. 

(the “Consultant”) 
 OF THE SECOND PART. 
 WHEREAS: 

A.    The Company and the Consultant entered into a consulting agreement made as of January 1, 2004, which was subsequently
amended and extended pursuant to Amending Agreements dated for reference January 18, 2005, February 15, 2006, September 17, 2007, January 1, 2009, and January 1, 2011 (collectively, the “Consulting
Agreement”); and 
 B.    The parties now wish to make certain amendments to the Consulting Agreement, as detailed
here in this agreement (the “Sixth Amending Agreement”). 
 NOW THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged by all parties hereto, the Company and the Consultant hereby covenant and agree as follows; 
  

	 	1.	Capitalized terms used herein, which are not otherwise defined herein, shall have the meaning ascribed to such terms in the Consulting Agreement.

  

	 	2.	Section 2.1 of the Consulting Agreement is hereby amended by deleting it in its entirety and substituting therefor the following: 

“Unless earlier terminated pursuant to Section 8.1, the term of the Consultant’s engagement pursuant to this Agreement (the
“Term”) shall commence on the Effective Date and shall terminate on December 31, 2012,” 
  

	 	3.	Section 7.1 is hereby amended by inserting new subsection 7.1(g), as follows: 

  
 Page 1 of 2

 “(g) for the period from January 1, 2012 to December 31, 2012, a consulting
fee totaling Two Hundred and Ten Thousand One Hundred and Twenty Dollars ($210,120.00), payable monthly in arrears; and” 

and by renumbering the subsequent subsection of Section 7.1 accordingly. 

 

	 	4.	Except as amended herein, the Consulting Agreement remains in full force and effect, unamended. 

 

	 	5.	This Sixth Amending Agreement may be signed in counterparts, and delivered personally or by courier, mail, facsimile or electronically, each of which counterparts when
executed by any of the signatories hereto shall be deemed to be an original and such counterparts shall together constitute one and the same agreement. 

 IN WITNESS WHEREOF duly authorized signatories of the Company and the Consultant, each after having had the opportunity to discuss this Sixth Amending Agreement with their respective legal
advisors, have executed this Sixth Amending Agreement on the dates noted below, but effective as of the date first noted above. 
  

									
	XENON PHARMACEUTICALS INC.	 		 	GENWORKS INC.
					
	By:	 	/s/ Simon N. Pimstone	 		 	By:	 	/s/ Michael R. Hayden
		 	 SIMON N. PIMSTONE

President & CEO
	 		 		 	MICHAEL R. HAYDEN

									
					
	Date : 	 	13 March/2012	 		 	Date : 	 	08 - March - 2012

  
 Page 2 of 2

 This SEVENTH AMENDING AGREEMENT is dated and effective as of September 1, 2012. 

BETWEEN: 
 XENON
PHARMACEUTICALS INC. (formerly Xenon Genetics Inc.) having its head office at 3650 Gilmore Way, Burnaby, British Columbia, V5G 4W8 
 (the “Company”) 
 OF THE FIRST PART; 

AND: 
 GENWORKS INC., a British Columbia corporation having its offices at 4484 West 7th Avenue, Vancouver, BC, V6R 1W9; Phone: 604-222-0236; Fax: 604-222-0241. 

(the “Consultant”) 
 OF THE SECOND PART. 
 WHEREAS: 

A.    The Company and the Consultant entered into a consulting agreement made as of January 1, 2004, which was subsequently
amended and extended pursuant to Amending Agreements dated for reference January 18, 2005, February 15, 2006, September 17, 2007, January 1, 2009, January 1, 2011, and January 1, 2012 (collectively, the
“Consulting Agreement”); and 
 B.    The parties now wish to make certain amendments to the Consulting
Agreement, as detailed here in this agreement (the “Seventh Amending Agreement”). 
 NOW THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged by all parties hereto, the Company and the Consultant hereby covenant and agree as follows: 

 

	 	1.	Capitalized terms used herein, which are not otherwise defined herein, shall have the meaning ascribed to such terms in the Consulting Agreement.

  

	 	2.	Section 2.1 of the Consulting Agreement is hereby amended by deleting it in its entirety and substituting therefor the following: 

“Unless earlier terminated pursuant to Section 8.1, the term of the Consultant’s engagement pursuant to this Agreement (the
“Term”) shall commence on the Effective Date and shall terminate on August 31, 2013.” 

  
 Page 1 of 4

	 	3.	Article 3 of the Consulting Agreement is hereby amended by adding new Subsection 3.2 as follows: 

 

	 	“3.2	As requested by the Company and described in Schedule A attached hereto, the Consultant agrees to devote and dedicate, on average, up to eight (8) hours of
time and effort per year, for each year of the Term beginning September 1, 2012, to providing Services to the Company.” 

  

	 	4.	Article 7 of the Consulting Agreement is hereby amended by deleting it in its entirety and substituting therefor the following: 

 

	 	“7.1	As full consideration for the Services and other covenants and agreements provided by the Consultant under this Agreement, the receipt and sufficiency of which is
hereby specifically acknowledged by the Company and the Consultant, the compensation payable by the Company to the Consultant shall be as follows: 

  

	 	(a)	subject to the Company’s Stock Option Plan and any amendments thereto (collectively, the “Plan”), over the Term of this Agreement, the Company
hereby confirms and agrees that the Consultant will be considered a “Service Provider” under Section 2.18 of the Plan; 

  

	 	(b)	reimbursement for all reasonable out-of-pocket expenses incurred by the Consultant on behalf of the Company in the course of his provision of Services hereunder,
provided that such expenses have received the prior approval of the Company; and 

  

	 	(c)	the Consultant will invoice the Company on a monthly basis for expenses (as applicable), and provide relevant receipts. Such invoices will be paid by the Company within
fifteen (15) days of receipt. 

  

	 	7.2	For avoidance of doubt, the Consultant and the Company hereby confirm and agree as follows: 

 

	 	(a)	 that the consulting fee payable to the Consultant for the 8-month period from January 1, 2012 to August 31, 2012 shall total $140,080 , such
amount which is equivalent to 8/12th of the annual
consulting fee referenced in the Sixth Amending Agreement to the Agreement; 

  

	 	(b)	 that, as set forth in the Fourth Amending Agreement to the Agreement, the Consultant remains eligible to receive a performance bonus respecting
Services rendered by the Consultant for the 8-month period from January 1, 2012 to August 31, 2012, such bonus to be paid in an amount and in a manner to be determined by the Board of Directors of the Company, in its sole discretion. The
awarding of such bonus (if any) will be decided by the Company’s Board of Directors following the Board’s assessment of the Consultant’s contribution(s) during said 8-month period

  
 Page 2 of 4

	 	
from January 1, 2012 to August 31, 2012, to the Company’s successful completion of its major corporate objectives for 2012; and 

	 	(c)	except as specifically provided in Section 7.1(b) and Section 7.2(b) above, as of September 1, 2012 and for the duration of the Term of this Agreement,
there shall be no consulting fees or performance bonuses or any other monetary fee(s) whatsoever payable by the Company to the Consultant.” 

  

	 	5.	Section 8.1 of the Consulting Agreement is hereby amended by deleting it in its entirety and substituting therefor the following: 

 

	 	“8.1	Except as provided under Section 8.2 below, either the Company or the Consultant can terminate this Agreement at any time by giving thirty (30) days written
notice to other.” 

  

	 	6.	Schedule A of the Consulting Agreement is hereby amended by deleting it in its entirety and substituting therefore the Schedule A attached hereto.

  

	 	7.	Except as amended herein, the Consulting Agreement remains in full force and effect, unamended. 

 

	 	8.	This Seventh Amending Agreement may be signed in counterparts, and delivered personally or by courier, mail, facsimile or electronically, each of which counterparts
when executed by any of the signatories hereto shall be deemed to be an original and such counterparts shall together constitute one and the same agreement. 

 IN WITNESS WHEREOF duly authorized signatories of the Company and the Consultant, each after having had the opportunity to discuss this Seventh Amending Agreement with their respective legal
advisors, have executed this Seventh Amending Agreement effective as of the date first noted above. 
  

									
	XENON PHARMACEUTICALS INC.	 		 	GENWORKS INC.
					
	By:	 	/s/ Simon N. Pimstone	 		 	By:	 	/s/ Michael R. Hayden
		 	 SIMON N. PIMSTONE

President & CEO
	 		 		 	MICHAEL R. HAYDEN

  
 Page 3 of 4

 Schedule “A”- Services 

Duties and Responsibilities 
 The Services to be provided by the Consultant shall include: 
  

	 	1.	the Consultant shall ensure that all Services provided to the Company will be performed by Dr. Michael R. Hayden, and/or such other employee or agent of the
Consultant that is approved in advance by the Company, in the Company’s sole discretion; 

  

	 	2.	the Consultant shall provide confidential information and advice to the Company, as requested by the Company’s Board of Directors and/or the Company’s Senior
Management from time to time, regarding the following: 

  

	 	i.	historical information regarding the Company’s business, scientific and clinical affairs, including matters relating to the Company’s partnerships with third
parties and/or other Company matters, on which the Consultant may have knowledge of, as a result of the Consultant’s employee’s (Dr. Michael Hayden’s) former and longstanding position as Chief Scientific Officer and Officer of
the Company (such CSO and Officer position which, as of September 1, 2012, is no longer held by such employee of the Consultant), and 

  

	 	ii,	advice and guidance, regarding the Company’s ongoing or future strategic plans or financing plans or third party partnerships; and 

 

	 	3.	the provision of such other advice and services as the Company may reasonably request from time to time. 

  
 Page 4 of 4

 This EIGHTH AMENDING AGREEMENT is dated and effective as of January 1, 2013. 

BETWEEN: 
 XENON
PHARMACEUTICALS INC. (formerly Xenon Genetics Inc.) having its head office at 3650 Gilmore Way, Burnaby, British Columbia, V5G 4W8 
 (the “Company”) 
 OF THE FIRST PART; 

AND: 
 GENWORKS INC., a British Columbia corporation having its offices at 4484 West 7th Avenue, Vancouver, BC, V6R 1W9; Phone: 604-222-0236; Fax: 604-222-0241. 

(the “Consultant”) 
 OF THE SECOND PART. 
 WHEREAS: 

A.    The Company and the Consultant entered into a consulting agreement made as of January 1, 2004, which was subsequently
amended and extended pursuant to Amending Agreements dated for reference January 18, 2005, February 15, 2006, September 17, 2007, January 1, 2009, January 1, 2011, January 1, 2012, and September 1, 2012
(collectively, the “Consulting Agreement”); and 
 B.    The parties now wish to make certain amendments to
the Consulting Agreement, as detailed here in this agreement (the “Eighth Amending Agreement”). 
 NOW THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by all parties hereto, the Company and the Consultant hereby covenant and agree as follows: 

 

	 	1.	Capitalized terms used herein, which are not otherwise defined herein, shall have the meaning ascribed to such terms in the Consulting Agreement.

  

	 	2.	Section 2.1 of the Consulting Agreement is hereby amended by deleting it in its entirety and substituting therefor the following: 

“Unless earlier terminated pursuant to Section 8.1, the term of the Consultant’s engagement pursuant to this Agreement (the
“Term”) shall commence on the Effective Date and shall terminate on December 31, 2013.” 

  
 Page 1 of 2

	 	3.	Article 7 of the Consulting Agreement is hereby amended by deleting subsection 7.2(c) in its entirety and substituting therefore the following:

 “(c) other than reimbursement of expenses as specifically provided in Section 7.1(b) above, the
Consultant and the Company confirm and agree that, as of September 1, 2012 and for the duration of the Term of this Agreement, there will be no consulting fees or other monetary amounts payable by the Company to the Consultant under this
Agreement. Notwithstanding the foregoing, but at all times subject to the terms of the December 7, 2012 letter agreement between the Company, Teva Pharmaceuticals Industries Ltd. and Michael Hayden, the Consultant and the Company confirm and
agree that, at the sole discretion of the Company’s Board of Directors, the Consultant may be eligible to receive a performance bonus from time to time, in the event that the Board of Directors in its sole discretion determines that the
Consultant has in its provision of Services hereunder provided special and/or extraordinary value to the Company. Any such performance bonus would be paid in an amount and in a manner to be determined by the Company’s Board of Directors in its
sole discretion at the relevant time.” 
  

	 	4.	Except as amended herein, the Consulting Agreement remains in full force and effect, unamended. 

 

	 	5.	This Eighth Amending Agreement may be signed in counterparts, and delivered personally or by courier, mail, facsimile or electronically, each of which counterparts when
executed by any of the signatories hereto shall be deemed to be an original and such counterparts shall together constitute one and the same agreement. 

 IN WITNESS WHEREOF duly authorized signatories of the Company and the Consultant, each after having had the opportunity to discuss this Eighth Amending Agreement with their respective legal
advisors, have executed this Eighth Amending Agreement effective as of the date first noted above. 
  

									
	XENON PHARMACEUTICALS INC.	 		 	GENWORKS INC.
					
	By:	 	/s/ Simon N. Pimstone	 		 	By:	 	/s/ Michael R. Hayden
		 	 SIMON N. PIMSTONE

President & CEO
	 		 		 	MICHAEL R. HAYDEN

  
 Page 2 of 2Prepared by R.R. Donnelley Financial -- EX-10.7

 Exhibit 10.7 
 XENON PHARMACEUTICALS INC. 
 AMENDED AND RESTATED STOCK OPTION PLAN

  

	1.	PURPOSE OF THE PLAN 

 Xenon Pharmaceuticals Inc. (“Xenon”) hereby establishes a stock option plan for directors, officers and Service Providers (as defined below) of Xenon, to be known as the “Xenon
Pharmaceuticals Stock Option Plan” (the “Plan”). The purpose of the Plan is to give directors, officers and Service Providers, as additional compensation, the opportunity to participate in the progress of Xenon by granting to such
individuals options, exercisable over a period of 10 years, to buy shares of Xenon at a price equal to the market price prevailing on the date the option is granted. 

 

	2.	DEFINITIONS  

 In this Plan, the following terms shall have the following meanings: 
  

	2.1	“Associate” means an associate as defined in the Securities Act (British Columbia). 

 

	2.2	“Board” means the board of directors of Xenon. 

  

	2.3	“Disability” means any disability with respect to an Optionee which the Board, in its sole and unfettered discretion, considers likely to prevent permanently
the Optionee from: 

  

	 	(a)	being employed or engaged by Xenon, in a position the same as or similar to that in which he was last employed or engaged by Xenon; or 

 

	 	(b)	acting as a director or officer of Xenon. 

  

	2.4	“Exchange Act” means the United States Securities Exchange Act of 1934, as amended. 

 

	2.5	“Exchanges” means any stock exchange on which the Shares are listed at the time. 

 

	2.6	“Expiry Date” means the date set by the Board under section 3.1 of the Plan, as the last date on which an Option may be exercised.

  

	2.7	“Grant Date” means the date specified in an Option Agreement as the date on which an Option is granted. 

 

	2.8	“Xenon” means Xenon Pharmaceuticals Inc. and its successors. 

  

	2.9	“Insider” means: 

  

	 	(a)	an Insider as defined in the Securities Act (British Columbia), other than a person who is an Insider solely by virtue of being a director or senior officer of a
subsidiary of Xenon; and 

  

	 	(b)	an Associate of any person who is an Insider under subsection (a). 

	2.10	“Market Price” of Shares at any Grant Date means: 

  

	 	(a)	if the Shares are listed and posted for trading on an Exchange, the closing price per Share on such Exchange (or, in the event that the Shares are listed on more than
one Exchange, on such Exchange on which Shares are listed as is selected for the purpose by the Board) for the last day Shares were traded prior to the Grant Date; 

 

	 	(b)	if the Shares are not listed on any Exchange, but are quoted on an over-the-counter market, the price per Share on the over-the-counter market determined by dividing
the aggregate sale price of the Shares sold by the total number of such Shares so sold on the applicable market for the last day prior to the Grant Date; or 

 

	 	(c)	if the Shares are not listed and posted for trading on a stock exchange or over-the-counter market, the price per Share as determined from time to time by the Board.

  

	2.11	“Option” means an option to purchase Shares granted pursuant to this Plan. 

 

	2.12	“Option Agreement” means an agreement, in the form attached hereto as Schedule A, whereby Xenon grants to an Optionee an Option. 

 

	2.13	“Optionee” means each of the directors, officers and Service Providers granted an Option pursuant to this Plan and their heirs, executors and administrators.

  

	2.14	“Option Price” means the exercise price per Share specified in an Option Agreement, adjusted from time to time in accordance with the provisions of
subsection 3.1 and section 6. 

  

	2.15	“Option Shares” means the aggregate number of Shares which an Optionee may purchase under an Option. 

 

	2.16	“Plan” means this Xenon Pharmaceuticals Stock Option Plan. 

  

	2.17	“Shares” means the common shares in the capital stock of Xenon as constituted on the date of this Plan provided that, in the event of any adjustment pursuant
to section 6, “Shares” shall thereafter mean the shares or other property resulting from the events giving rise to the adjustment. 

  

	2.18	“Service Provider” means: 

  

	 	(a)	an employee or Insider of Xenon; 

  

	 	(b)	any other person or company engaged to provide ongoing, management or consulting services for Xenon or for any entity controlled by Xenon; and 

 

	 	(c)	any person who is providing ongoing management or consulting services to Xenon or to any entity controlled by Xenon indirectly through a company that is a Service
Provider under subsection 2.18(b). 

  
 -2-

	2.19	“Unissued Option Shares” means the number of Shares, at a particular time, which have been allotted for issuance upon the exercise of an Option but which have
not been issued, as adjusted from time to time in accordance with the provisions of section 6, such adjustments to be cumulative. 

  

	3.	GRANT OF OPTIONS 

  

	3.1	Option Terms 

 The Board
may from time to time authorize the issue of Options to directors, officers and Service Providers of Xenon having such terms and conditions as the Board in its discretion deems consistent with the Plan. The Option Price under each Option shall be
the Market Price on the Grant Date. The Expiry Date for each Option shall be set by the Board at the time of issue of the Option and shall be 10 years after the Grant Date. Options shall not be assignable by the Optionee. 

 

	3.2	Limits on Shares Issuable on Exercise of Options 

 The maximum number of Options (and the corresponding Option Shares issuable upon exercise of such Options) which from time to time may be reserved for issue under the Plan shall not exceed 7,800,000. For
clarification, in determining at any time whether the maximum number of Options (or corresponding Option Shares) issuable under the Plan is reached, any Option that has been granted and exercised shall not be relevant or included in such
determination. 
  

	3.3	Option Agreements 

 Each
Option shall be confirmed by the execution of an Option Agreement setting out the terms and conditions of such Option as determined by the Board in accordance with section 3.1. Each Optionee shall have the option to purchase from Xenon the
Option Shares at the time and in the manner set out in the Plan and in the Option Agreement applicable to that Optionee. The execution of an Option Agreement shall constitute conclusive evidence that it has been completed in compliance with this
Plan. 
  

	4.	EXERCISE OF OPTION 

  

	4.1	Manner of Exercise 

 The
Option shall be exercisable by delivering to Xenon a notice specifying the number of Shares in respect of which the Option is exercised together with payment in full of the Option Price for each such Share. Upon notice and payment there will be a
binding contract for the issue of the Shares in respect of which the Option is exercised, upon and subject to the provisions of the Plan. Delivery of the Optionee’s cheque payable to Xenon in the amount of the Option Price shall constitute
payment of the Option Price unless the cheque is not honoured upon presentation in which case the Option shall not have been validly exercised. 

  
 -3-

	4.2	General Rule 

 Subject to
section 4.3 and to the terms of the Option regarding vesting, if any, an Option may be exercised to purchase any number of Shares up to the number of Unissued Option Shares at any time after the Grant Date up to 5:00 p.m. Vancouver time on the
Expiry Date. 
  

	4.3	Termination of Affiliation 

 If an Optionee ceases to be a director, officer or Service Provider of Xenon, each Option held by the Optionee and granted under the Plan shall be exercisable as follows: 

 

	 	(a)	Death 

 If the Optionee
ceases to be a director, officer or Service Provider of Xenon due to death or Disability or, in the case of an Optionee that is a company, the death or Disability of the person who provides management or consulting services to Xenon or to any entity
controlled by Xenon, each Option held by the Optionee shall be exercisable at any time up to but not after the earlier of the Expiry Date of that Option and the date which is 365 days after the date of death or Disability; 

 

	 	(b)	Termination or Voluntary Resignation 

 Subject to subsections 4.3(c), (d) and (e) below, if an Optionee (or, in the case of an Optionee who satisfies the definition of “Service Provider” set out in subsection 2.18(c),
the Optionee’s employer) ceases to be employed or engaged by Xenon or voluntarily resigns or retires as a director, officer or Service Provider, each Option held by the Optionee shall be exercisable: 

 

	 	(i)	subject to subsection 4.3(b)(ii) below, at any time up to but not after the earlier of the Expiry Date of that Option and the date which is ninety (90) days
after the Optionee ceases to be employed or engaged by Xenon or voluntarily resigns or retires as a director, officer or Service Provider; or 

  

	 	(ii)	in the case of an Optionee that is a director of Xenon and not otherwise employed or engaged as an officer or Service Provider of Xenon, at any time up to but not after
the earlier of the Expiry Date of that Option and the date which is twenty-four (24) months after the Optionee ceases to be a director of Xenon; 

  

	 	(c)	Termination for Cause 

Subject to subsection 4.3(e) below, in the event that an Optionee’s employment or engagement is terminated by Xenon for
“cause” (as determined by Xenon in its sole discretion), any Options held by such Optionee shall be exercisable at any time up to but not after 5:00 p.m. Vancouver time on the date of termination of such Optionee’s employment or
engagement by Xenon; 

  
 -4-

	 	(d)	Shortened Exercise Period if Xenon Becomes a “Public” Company 

 Subject to subsection 4.3(e) below, in the event Xenon becomes a reporting issuer in any jurisdiction in Canada, or becomes a registrant with the United States Securities and Exchange
Commission, the option exercise periods described in subsections 4.3(b)(i) and 4.3(b)(ii) above shall be reduced to thirty (30) days; and 
  

	 	(e)	Board may Extend Exercise Period 

 Notwithstanding any other provision of the Plan, the board of directors of Xenon may, at any time prior to the Expiry Date of an Option granted under the Plan, extend the period of time within which an
Optionee may exercise such Option in the event such Optionee ceases to be a director, officer or Service Provider, provided that any such extension shall not exceed the original Expiry Date of such Option. 

 

	4.4	Exclusion From Severance Allowance, Retirement Allowance or Termination Settlement 

If the Optionee, or, in the case of an Option granted to an Optionee who falls under the definition of Service Provider set out in
subsection 2.18(c), the Optionee’s employer, retires, resigns or is terminated from employment or engagement with Xenon, the loss of any right to purchase Shares pursuant to sections 4.3, 5, 6 or 7 shall not give rise to any right to
damages and shall not be included in the calculation of nor form any part of any severance allowance, retiring allowance or termination settlement of any kind whatever in respect of such Optionee. 

 

	5.	THIRD PARTY OFFER 

 Subject to section 7, at any time when an Option granted under the Plan remains unexercised with respect to any Option Shares, an offer to purchase all of the issued and outstanding Shares is made by
a third party, Xenon may, upon giving each Optionee written notice to that effect, require the acceleration of the time for the exercise of the unexercised Options granted under the Plan and of the time for the fulfilment of any conditions or
restrictions on such exercise. 
  

	6.	ALTERATIONS IN OPTION SHARES 

 Subject to section 7, in the event of a stock dividend, subdivision, redivision, consolidation, share reclassification, amalgamation, merger, consolidation, corporate arrangement, reorganization,
liquidation or the like of or by Xenon, the Board may, subject to any required prior regulatory approval, make adjustments, if any, to the number of Option Shares that may be purchased upon exercise of unexercised Options or to the Option Price
therefor, or both, as it shall deem appropriate and may amend the Option Agreements relating to those Options to give effect to such adjustments and may adjust the maximum number of Option Shares available under the Plan as may be appropriate. If
because of a proposed merger, amalgamation or other corporate arrangement or reorganization, the exchange or replacement of Option Shares for shares or other securities in another company is imminent, the Board of Directors may, in a fair and
equitable manner and subject to prior regulatory approval, determine the manner in which all unexercised Options granted under the Plan shall be treated including, for example, requiring the acceleration of the time for the exercise of such Options
by the Optionees and of the time for the fulfilment of any conditions or restrictions on such exercise. 

  
 -5-

	7.	CHANGE OF CONTROL  

  

	7.1	Definitions 

 In this
section, the following terms shall have the following meanings: 
  

	 	(a)	“Cause” means conduct by a Departing Service Provider that is finally determined (after all rights of appeal have been exhausted or have expired) by a court
of competent jurisdiction to be, or is agreed in writing by such person to be, conduct that would absent any contrary express agreement entitle Xenon to terminate the Departing Service Provider’s employment or engagement with Xenon without any
notice or compensation in lieu thereof. 

  

	 	(b)	“Change of Control” means 

  

	 	(i)	a dissolution, liquidation or sale of all or substantially all of the assets of Xenon; 

 

	 	(ii)	a merger, consolidation, amalgamation, arrangement or reorganization in which Xenon is not the surviving corporation; 

 

	 	(iii)	a reverse merger in which Xenon is the surviving corporation but the Shares outstanding immediately preceding the merger are converted by virtue of the merger into
other property, whether in the form of securities, cash or otherwise; or 

  

	 	(iv)	the acquisition by any person, entity or group within the meaning of Section 13(d) of the Exchange Act, or any comparable successor provisions (excluding any
employee benefit plan, or related trust, sponsored or maintained by Xenon) of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act, or comparable successor rule)
of securities of Xenon representing at least 35% of the combined voting power entitled to vote in the election of directors. 

  

	 	(c)	“Departing Service Provider” means a director, officer or Service Provider of Xenon (or, in the case of a person who satisfies the definition of Service
Provider set out in subsection 2.18(c), such person’s employer) who has ceased to be employed or engaged by Xenon as a result of termination by Xenon or the resignation or retirement of such Service Provider. 

 

	 	(d)	“Good Reason” means any of the following: 

  

	 	(i)	 without the express written consent of the Departing Service Provider, any change or series of changes in the responsibilities or status of the
Departing Service Provider with Xenon, such that immediately after such change or series of changes the responsibilities and status of the Departing Service Provider, taken as a whole, and taking into account the size and complexity of

  
 -6-

	 	
the business of Xenon, are not at least substantially equivalent to those assigned to him immediately prior to such change or series of changes, except in connection with a termination of the
Departing Service Provider’s employment or engagement by Xenon for Cause; or 

  

	 	(ii)	a reduction by Xenon in the Departing Service Provider’s annual salary as in effect prior to the Change of Control; or 

 

	 	(iii)	the taking of any action by Xenon, or the failure by Xenon to take any action, that would materially adversely affect the Departing Service Provider’s
participation in, or materially reduce the Departing Service Provider’s benefits under, the package of incentive, bonus, compensation, pension, life insurance, health, accident disability and other similar plans in which the Departing Service
Provider is participating prior to the Change of Control, or the taking of any action by Xenon, or the failure by Xenon to take any action, that would deprive the Departing Service Provider of any material fringe benefit or perquisite enjoyed by the
Departing Service Provider prior to the Change of Control; or 

  

	 	(iv)	the requirement that the Departing Service Provider be based anywhere other than Xenon’s principal offices or locations in Vancouver and Burnaby, British Columbia
(or, if the Departing Service Provider is presently based at Xenon’s offices at another place, the requirement that the Departing Service Provider be based anywhere other than such offices at such place) or the requirement that the Departing
Service Provider travel on Xenon’s business to an extent that is not substantially consistent with the Departing Service Provider’s travel obligations prior to the Change of Control, or in the event the Departing Service Provider consents
to any such relocation, the failure by Xenon to pay (or reimburse the Departing Service Provider for) all reasonable moving expenses incurred by the Departing Service Provider or to indemnify the Departing Service Provider against any excess in
(1) the cost of a principal residence in the new location which is comparable to the Departing Service Provider’s principal residence at the time of relocation, over (2) the amount realized by the Departing Service Provider upon the
sale of his principal residence at the time of the relocation; or 

  

	 	(v)	the failure of Xenon to obtain from a Successor Corporation that acquires all or substantially all of the business and/or assets of Xenon the agreement in favour of the
Departing Service Provider contemplated by section 7.3; or 

  

	 	(vi)	any reason which would be considered to amount to constructive dismissal by a court of competent jurisdiction; 

but “Good Reason” shall not have occurred or exist by reason only of a request by Xenon to the Departing Service Provider to
remain with Xenon for up to three months after a Change of Control, to assist in the transition resulting from the Change of Control, where there is no other event or omission that would constitute “Good Reason” according to subsections
7.1(d)(i), (ii), (iii), (iv), (v) or (vi) above. 

  
 -7-

	 	(e)	“Successor Corporation” means, in connection with a Change of Control, the surviving or acquiring corporation. 

 

	7.2	Change of Control 

Notwithstanding the provisions of sections 5 and 6, in the event of a Change in Control: 

 

	 	(a)	any Successor Corporation shall assume Xenon’s obligations in respect of all outstanding Options or shall deliver to each holder of Options, in substitution for
such Options, options to purchase securities of such Successor Corporation (“Successor Options”) equivalent in value to such holder’s Options; or 

 

	 	(b)	in the event that a Successor Corporation does not assume Xenon’s obligations in respect of outstanding Options or substitute Successor Options in exchange for
such Options: 

  

	 	(i)	the vesting of all Options held by persons who are directors, officers or Service Providers at the time of such Change of Control, and the time during which such
Options may be exercised, shall be accelerated prior to completion of the Change of Control and, unless exercised after such acceleration and prior to completion of the Change of Control, such Options shall be terminated; and

  

	 	(ii)	all outstanding Options held by persons who are not directors, officers or Service Providers at the time of such Change of Control shall be terminated unless exercised
prior to the Change of Control. 

 In addition, any Options or Successor Options held by a director, officer or
Service Provider shall immediately become fully vested and exercisable in the event that, within 12 months following completion of a Change of Control, such director, officer or Service Provider becomes a Departing Service Provider by reason of
(1) a termination of such director, officer or Service Provider (or, in the case of an Option or Successor Option held by a person who satisfies the definition of Service Provider set out in subsection 2.18(c), the termination of such
person’s employer) by Xenon or the Successor Corporation other than for Cause or (2) resignation or retirement by such director, officer or Service Provider (or, in the case of an Option or Successor Option held by a person who satisfies
the definition of Service Provider set out in subsection 2.18(c), resignation of such person’s employer) for Good Reason. 
  

	7.3	Binding on Successor Corporations 

 Xenon will require any Successor Corporation (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of

  
 -8-

 
Xenon, by agreement in favour of each person who is a director, officer or Service Provider at the time of a Change of Control to expressly assume and agree to observe and perform all the
obligations of Xenon that would be required to be observed or performed by Xenon in the event that within 12 months of completion of the Change of Control that led to such successorship, such person becomes a Departing Service Provider. For the
purposes of this section 7, “Xenon” shall mean Xenon as herein before defined and any successor to its business and/or assets as aforesaid which executes and delivers the agreement provided for in this section or which otherwise
becomes bound by all the terms and provisions of the Plan by operation of law. 
  

	8.	MISCELLANEOUS 

  

	8.1	Form of Notice 

 A notice
given to Xenon shall be in writing, signed by the Optionee and delivered to the Secretary of Xenon. 
  

	8.2	Right to Employment 

Neither this Plan nor any of the provisions hereof shall affect in any way the Optionee’s right to continued employment with Xenon
or Xenon’s right to terminate such employment. 
  

	8.3	Amendment and Waiver 

Xenon may from time to time amend any provisions of the Plan, subject to prior regulatory approval where required, but no such amendment
can impair any of the rights of any Optionee under any Option then outstanding. 
  

	8.4	No Assignment 

 No
Optionee may assign any of his rights under the Plan. 
  

	8.5	Conflict 

 In the event
of any conflict between the provisions of this Plan and an Option Agreement, the provisions of this Plan shall govern. 
  

	8.6	Time of Essence 

 Time is
of the essence of this Plan and of each Option Agreement. No extension of time will be deemed to be or to operate as a waiver of the essentiality of time. 
  

	8.7	Entire Agreement 

 This
Plan and the Option Agreement sets out the entire agreement between Xenon and the Optionees relative to an Option and supersedes all prior agreements, undertakings and understandings, whether oral or written. 

  
 -9-

 SCHEDULE A 
 XENON PHARMACEUTICALS INC. 
 STOCK OPTION PLAN - OPTION AGREEMENT

 [attached] 

  

 XENON PHARMACEUTICALS INC. 

STOCK OPTION PLAN - OPTION AGREEMENT 
 This Option Agreement is entered into between Xenon Pharmaceuticals Inc. (“Xenon”) and the Optionee named below pursuant to the Xenon Stock Option Plan (the “Plan”), a
copy of which is attached hereto, and confirms that: 
  

	1.	on                     , 20    (the
“Grant Date”); 

  

	2.	                            
            (the “Optionee”); 

  

	3.	is granted the option to purchase             Common Shares (the “Option Shares”) of Xenon;

  

	4.	at the price (the “Option Price”) of $            per share; 

 

	5.	[vesting over a 3 year term with: 

  

	 	•	 	 the first one-third of the Option Shares vesting on the 1st anniversary of the Grant Date above; 

 

	 	•	 	 the remaining Option Shares then vesting over the course of the next two (2) years, in equal amounts, on the last day of each month;]

 [OR] 
 [vesting over a 4 year term with: 
  

	 	•	 	 the first 25% of the Option Shares vesting on the 1st anniversary of the Grant Date above; 

 

	 	•	 	 the remaining Option Shares then vesting over the course of the next three (3) years, in equal amounts, on the last day of each month;]

  

	6.	all fully-vested options are exercisable, in whole or in part, up to the             day of
            , 20    (the “Expiry Date”), 

 all on the terms and subject to the conditions set out in the Plan. 
 By signing
this Option Agreement, the Optionee acknowledges that the Optionee has read and understands the Plan and agrees to the terms and conditions of the Plan and this Option Agreement. 

IN WITNESS WHEREOF the parties have executed this Option Agreement as of the
            day of             , 20    . 

 

			
	XENON PHARMACEUTICALS INC.
		
	 By:
	 	  

		 	 Simon N. Pimstone

		 	 President & CEO

	
	  

		 	 [insert name of optionee]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}]]