Document:

Exhibit

EMPLOYEE STOCK OPTION AGREEMENT
(3 Year Vesting Schedule)

 2017 EQUITY INCENTIVE PLAN

THIS EMPLOYEE STOCK OPTION AGREEMENT (this “Agreement”), dated as of ______, is between ENERSYS, a Delaware corporation (the “Company”), and the individual identified on the signature page hereof (the “Participant”).
BACKGROUND
A.    The Participant is currently an employee of the Company or one of its Subsidiaries.
B.    The Company desires to (i) provide the Participant with an incentive to remain in the employ of the Company or one of its Subsidiaries, and (ii) increase the Participant’s interest in the success of the Company by granting to the Participant nonqualified stock options (the “Options”) to purchase shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”).
C.    The grant of the Options is (i) made pursuant to the 2017 Equity Incentive Plan (the “Plan”); (ii) made subject to the terms and conditions of this Agreement and Appendix A; and (iii) not employment compensation nor an employment right and is made in the sole discretion of the Company’s Compensation Committee.
AGREEMENT
NOW, THEREFORE, in consideration of the covenants and agreements contained in this Agreement, the parties hereto, intending to be legally bound, agree as follows:
1.Definitions; Incorporation of Plan Terms.  Capitalized terms used in this Agreement without definition shall have the meanings assigned to them in the Plan.  This Agreement and the Options shall be subject to the Plan.  The terms of the Plan and the Background provisions of this Agreement are hereby incorporated into this Agreement by reference. and made a part hereof as if set forth in their entirety in this Section 1.  If there is a conflict or an inconsistency between the Plan and this Agreement, the Plan shall govern.  
2.    Restrictions on Transfer.  Except as otherwise expressly provided in the Plan, none of the Options may be sold, transferred, assigned, pledged, or otherwise encumbered or disposed of (or made the subject of a derivative transaction) to or with any third party otherwise than by will or the laws of descent and distribution and the Options shall be exercisable during the Participant’s lifetime only by the Participant.

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3.    Grant of Options.  The Participant is awarded the number of Options specified on the signature page hereof, at the Option Price indicated thereon.  The Options are not intended to qualify as incentive stock options under Section 422 of the Code.  Each Option shall entitle the Participant to purchase, upon payment of the applicable Option Price in any manner provided by the Plan, one share of Common Stock.  The shares of Common Stock issuable upon exercise of the Options are from time to time referred to herein as the “Option Shares.”  For purposes of the Plan and this Agreement, the Date of Grant shall be as indicated on the signature page hereof.  The Options shall be exercisable as provided in this Agreement.
4.    Terms and Conditions of Options.  The Options evidenced by this Agreement are subject to the following terms and conditions:
(a)    Vesting.  The Options shall vest and become exercisable as follows: one-third (1/3) of the Options shall vest and become exercisable on each of the first three  anniversaries of the Date of Grant (each such one-third (1/3) of the Options which vest on each such anniversary shall be referred to herein as a “Tranche” and each such anniversary a Vesting Date) unless previously vested or forfeited in accordance with the Plan or this Agreement; provided, however, that to the extent then unvested, the Options shall immediately become vested and exercisable if: 
		
	(i)  
	    the Participant’s employment terminates due to death or Permanent Disability, or

		
	(ii)  
	    the Participant’s employment terminates within two years after a Change in Control without Cause or for Good Reason.

Further, provided, in the event of the Participant’s Retirement, a separate pro-rata portion of the Tranche of Options (to the extent then unvested) during which the Retirement occurs shall immediately become vested.  The number of unvested Options that shall vest pro-rata upon Retirement shall be calculated by multiplying (A) the quotient obtained by dividing the number of completed months that the Participant was employed by the Company or one of its Subsidiaries since the most recent Vesting Date by 36, by (B) the number of Options subject to this Agreement (rounding up to the nearest whole number), provided however, that, the pro-rata portion that vests shall only become exercisable on the date the applicable portion of each such Tranche would have otherwise become vested under the schedule described above in this Section 4(a) absent such Retirement.
Notwithstanding the foregoing sentences, upon a Participant’s termination of employment for any reason, the Compensation Committee may, in its sole discretion, waive any requirement for vesting then remaining and permit, for a specified period of time consistent with the first sentence of Section 4(b) hereof  

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the exercise of the Options prior to the satisfaction of such requirement.  Any fractional Options that would result from application of this Section 4(a) shall be aggregated and shall vest on the first anniversary of the Date of Grant.
(a)    Option Period.  The Options shall expire (to the extent not previously exercised or forfeited) on, and shall not be exercisable, following the tenth (10th) anniversary of the Date of Grant.  In addition, all Options shall be subject to earlier expiration as provided herein or in the Plan, as follows:  
(i)      if the Participant’s employment terminates due to death or, Permanent Disability or on or after a Change in Control without Cause or for Good Reason, the Participant may exercise the Options, to the extent then vested, at any time until the earlier of (A) one year following termination of employment and (B) the expiration date of the Options specified in this Section 4(b);
(ii)       if the Participant’s employment is terminated due to Retirement, the Participant may exercise the Options, to the extent then vested and exercisable, at any time until the expiration date of the Options specified in this Section 4(b); 
(iii)      if the Participant’s employment is terminated by the Company without Cause prior to a Change in Control, the Participant may exercise the Options, to the extent then vested, at any time until the earlier of (A) ninety (90) days following termination of employment and (B) the expiration date of the Options specified in this Section 4(b); 
(iv)      if the Participant voluntarily terminates employment with the Company, the Participant may exercise the Options, to the extent then vested, at any time until the earlier of (A) sixty (60) days following termination of employment and (B) the expiration date of the Options specified in this Section 4(b); or
(v)      in the event of any other termination of the Participant’s employment (including a termination by the Company for Cause), all of the Options (whether or not vested at the time of termination) shall, without any action on the part of any Person, immediately expire and be canceled without payment therefor.  
Except as provided in Section 4(a) hereof or in the case of automatic vesting in connection with such termination event, upon termination of the Participant’s employment with the Company or a Subsidiary for any reason, all Options which have not theretofore vested shall, without any action on the part of any Person, immediately expire and be canceled without any payment therefor.

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(b)    Exercise.  Subject to the Company’s Policy on Insider Trading, and Sections 4(d), 4(f), and 8 hereof, the Participant may exercise any or all of the Options, to the extent vested and not forfeited. The date of exercise of an Option shall be the date on which the conditions provided in Sections 4(d), 4(f), and 8 hereof are satisfied.
(c)    Payment.  At the time of any exercise, the Participant shall pay to the Company the Option Price of the shares as to which this Option is being exercised by delivery of consideration equal to the product of the Option Price and the number of shares purchased, together with any amounts required to be withheld for tax purposes under Section 17(c) of the Plan.  Such consideration must be paid before the Company will issue the shares being purchased and must be in a form or a combination of forms acceptable to the Compensation Committee for that purchase, which forms may (but are not required to) include (i) cash; (ii) check or wire transfer; (iii) tendering (either actually or by attestation) shares of Common Stock already owned by the Participant, provided that the shares have been held for the minimum period required by applicable accounting rules to avoid a charge to the Company’s earnings for financial reporting purposes or were not acquired from the Company as compensation; (iv) to the extent permitted by applicable law, Cashless Exercise; or (v) such other consideration as the Compensation Committee may permit in its sole discretion; provided, however, that any Participant may, at any time, exercise any Vested Option (or portion thereof) owned by him pursuant to a Cashless Exercise.
(d)    Stockholder Rights.  The Participant shall have no rights as a stockholder with respect to any shares of Common Stock issuable upon exercise of the Options until the Participant has made payment pursuant to Section 4(d) and a certificate or certificates evidencing such shares shall have been issued to the Participant, and no adjustment shall be made for dividends or distributions or other rights in respect of any share for which the record date is prior to the date upon which the Participant shall become the holder of record thereof.
(e)    Limitation of Exercise.  The Options shall not be exercisable unless the offer and sale of the shares of Common Stock subject thereto have been registered under the 1933 Act and qualified under applicable state “blue sky” laws, or the Company has determined that an exemption from registration under the 1933 Act and from qualification under such state “blue sky” laws is available.
(f)    Delivery of Shares.  As soon as practicable following the exercise of any Options, the appropriate number of shares of Common Stock issued in connection with such exercise shall be issued by the Company’s transfer agent, in the name of the Participant by (a) paper certificate delivered to the Participant, or (b) electronic delivery to the Company’s representative broker.
(g)    Dividends and Distributions.  Any shares of Common Stock or other securities of the Company received by the Participant as a result of a stock 

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dividend or other distribution in respect of Option Shares shall be subject to the same restrictions as such Option Shares, and all references to Option Shares hereunder shall be deemed to include such shares of Common Stock or other securities.
(h)    Special Exercise Provisions.  Notwithstanding anything to the contrary in the Plan or in this Agreement, if the Participant is employed or resides in China or Italy, then the Participant shall only exercise the Options granted hereunder using the “Cashless Exercise” method as defined in the Plan and shall not have the right to use any other method otherwise permitted under this Agreement.
5.    Noncompetition.  The Participant agrees with the Company that, for so long as the Participant is employed by the Company or any of its Subsidiaries and continuing for twelve (12) months (or such longer period as may be provided in an employment or similar agreement between the Participant and the Company or one of its Subsidiaries or as provided in the last sentence of this Section 5) following a termination of such employment that occurs after any of the Options have vested (whether or not such Options have been exercised), the Participant shall not, without the prior written consent of the Company, directly or indirectly, and whether as principal or investor or as an employee, officer, director, manager, partner, consultant, agent, or otherwise, alone or in association with any other person, firm, corporation, or other business organization, engage or otherwise become involved in a Competing Business in the Americas, Europe, Middle East or Asia or in any other geographic area throughout the world (a) in which the Company or any of its Subsidiaries has engaged in any of the activities that comprise a Competing Business during the Participant’s employment, or (b) in which the Participant has knowledge of the Company’s plans to engage in any of the activities that comprise a Competing Business (including, without limitation, in any area in which any customer of the Company or any of its Subsidiaries may be located); provided, however, that the provisions of this Section 5 shall apply solely to those activities of a Competing Business, with which the Participant was personally involved or for which the Participant was responsible while employed by the Company or its Subsidiaries during the twelve (12) month period preceding termination of the Participant’s employment.  This Section 5 will not be violated, however, by the Participant’s investment of up to US$100,000 in the aggregate in one or more publicly-traded companies that engage in a Competing Business. The restrictions of this Section 5 shall also apply during the period after Retirement until vested Options become exercisable described in Section 4(a).
6.    Wrongful Solicitation.  As a separate and independent covenant, the Participant agrees with the Company that, for as long as the Participant is employed by the Company or any of its Subsidiaries and continuing for twelve (12) months (or such longer period as may be provided in an employment or similar agreement between the Participant and the Company or one of its Subsidiaries or as provided in the last sentence of this Section 6) following a termination of such employment that occurs after any of the Options have vested (whether or not such Options have been exercised), the Participant 

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shall not engage in any Wrongful Solicitation. The restrictions of this Section 6 shall also apply during the period after Retirement until vested Options become exercisable described in Section 4(a).
7.    Confidentiality; Specific Performance.
(a)    The Participant agrees with the Company that the Participant shall not at any time, except in performance of the Participant’s obligations to the Company hereunder or with the prior written consent of the Company, directly or indirectly, reveal to any person, entity, or other organization (other than the Company, or its employees, officers, directors, stockholders, or agents) or use for the Participant’s own benefit any information deemed to be confidential by the Company or any of its Affiliates (“Confidential Information”) relating to the assets, liabilities, employees, goodwill, business, or affairs of the Company or any of its Affiliates, including, without limitation, any information concerning past, present, or prospective customers, manufacturing processes, marketing, operating, or financial data, or other confidential information used by, or useful to, the Company or any of its Affiliates and known (whether or not known with the knowledge and permission of the Company or any of its Affiliates and whether or not at any time prior to the Date of Grant developed, devised, or otherwise created in whole or in part by the efforts of the Participant) to the Participant by reason of the Participant’s employment with, equity holdings in, or other association with the Company or any of its Affiliates.  The Participant further agrees that the Participant will retain all copies and extracts of any written Confidential Information acquired or developed by the Participant during any such employment, equity holding, or association in trust for the sole benefit of the Company, its Affiliates, and their successors and assigns.  The Participant further agrees that the Participant will not, without the prior written consent of the Company, remove or take from the Company’s or any of its Affiliate’s premises (or if previously removed or taken, the Participant will promptly return) any written Confidential Information or any copies or extracts thereof.  Upon the request and at the expense of the Company, the Participant shall promptly make all disclosures, execute all instruments and papers, and perform all acts reasonably necessary to vest and confirm in the Company and its Affiliates, fully and completely, all rights created or contemplated by this Section 7.  The term “Confidential Information” shall not include information that is or becomes generally available to the public other than as a result of a disclosure by, or at the direction of, the Participant.
(b)    The Participant agrees that upon termination of the Participant’s employment with the Company or any Subsidiary for any reason, the Participant will return to the Company immediately all memoranda, books, papers, plans, information, letters and other data, and all copies thereof or therefrom, in any way evidencing (in whole or in part) Confidential Information relating to the business of the Company and its Subsidiaries and Affiliates.  The 

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Participant further agrees that the Participant will not retain or use for the Participant’s account at any time any trade names, trademark, or other proprietary business designation used or owned in connection with the business of the Company or its Subsidiaries or Affiliates.
(c)    The Participant acknowledges and agrees that the Company’s remedies at law for a breach or threatened breach of any of the provisions of this Section 7, or Section 5 or 6 above, would be inadequate and, in recognition of this fact, the Participant agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, the Company, without posting any bond (or other security other than any mandatory minimum or nominal bond or security), shall be entitled to obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction, or any other equitable remedy which may then be available.
1.    Taxes.  This Section 8 applies only to (a) those Participants who are U.S. employees, and (b) those Participants who are employed by a Subsidiary of the Company that is obligated under applicable local law to withhold taxes with respect to the vesting or exercise of the Options.  The Company or a designated Subsidiary of the Company shall have the right, prior to the delivery of any certificates evidencing shares of Common Stock to be issued pursuant to this Agreement, to require the Participant to remit to the Company or such Subsidiary any amount sufficient to satisfy any applicable (federal, foreign, state, or local) tax withholding requirements.  Prior to the Company’s or the designated Subsidiary’s determination of such withholding liability, the Participant may make an irrevocable election to satisfy, in whole or in part, such obligation to remit taxes by directing the Company or such Subsidiary to withhold shares of Common Stock that would otherwise be received by the Participant (up to the maximum amount of tax permitted to be withheld that will not result in adverse financial accounting consequences to the Company).  Such election may be denied by the Compensation Committee in its discretion, or may be made subject to certain conditions specified by the Compensation Committee.  The Company or its designated Subsidiary shall also have the right to deduct from all cash payments made pursuant to or in connection with any Award any applicable federal, foreign, state, or local taxes required to be withheld with respect to such payments.
2.    No Obligation to Register.  The Company shall be under no obligation to register any Option Shares as a result of the exercise of the Options pursuant to the Securities Act or any other federal or state securities laws.
3.    Market Stand-Off.  In connection with any underwritten public offering by the Company of its equity securities pursuant to an effective registration statement filed under the Securities Act for such period as the Company or its underwriters may request (such period not to exceed 180 days following the date of the applicable offering), the Participant shall not, directly or indirectly, sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option or other contract for the 

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purchase of, purchase any option or other contract for the sale of, or otherwise dispose of or transfer, or agree to engage in any of the foregoing transactions with respect to, any of the Options granted under this Agreement or any Option Shares resulting the exercise thereof without the prior written consent of the Company or its underwriters.
4.    Protections Against Violations of Agreement.  No purported sale, assignment, mortgage, hypothecation, transfer, pledge, encumbrance, gift, transfer in trust (voting or other) or other disposition of, or creation of a security interest in or lien on, any of the Options by any holder thereof in violation of the provisions of this Agreement or the Certificate of Incorporation or the Bylaws of the Company, will be valid, and the Company will not transfer any Option Shares resulting from the exercise of Options on its books nor will any of such shares be entitled to vote, nor will any dividends be paid thereon, unless and until there has been full compliance with such provisions to the satisfaction of the Company. The foregoing restrictions are in addition to and not in lieu of any other remedies, legal or equitable, available to enforce such provisions.
5.    Survival.  This Agreement shall apply to and bind the Participant and the Company and their respective permitted assignees and transferees, heirs, legatees, executors, administrators and legal successors. All agreements, representations, and warranties made herein and in the certificates delivered pursuant hereto shall survive the issuance to the Participant of the Options and any Option Shares and shall continue in full force and effect.  The terms of Section 5-8, 12, 13, 15, 17-20, and 22 shall expressly survive the forfeiture of any Options and the termination of this Agreement.
6.    Notices.  All notices and other communications provided for herein shall be in writing and shall be delivered by hand or sent by certified or registered mail, return receipt requested, postage prepaid, addressed, if to the Participant, to the Participant’s attention at the mailing address set forth on the signature page of this Agreement (or to such other address as the Participant shall have specified to the Company in writing) and, if to the Company, to the Company’s office at 2366 Bernville Road, Reading Pennsylvania, 19605, Attention: General Counsel (or to such other address as the Company shall have specified to the Participant in writing).  All such notices shall be conclusively deemed to be received and shall be effective, if sent by hand delivery, upon receipt, or if sent by registered or certified mail, on the fifth day after the day on which such notice is mailed.
7.    Waiver.  The waiver by either party of compliance with any provision of this Agreement by the other party shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by such party of a provision of this Agreement.
8.    Authority of the Administrator.  The Compensation Committee shall have the full authority to interpret and construe the terms of the Plan and this Agreement including, but not limited to, making all determinations regarding eligibility, vesting, forfeiture and the calculation of the number of Options or Option Shares awarded or credited under this Agreement.  The determination of the Compensation Committee as to 

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any such matter of interpretation, construction or calculation shall be final, binding and conclusive.
9.    Representations.  The Participant has reviewed with his or her own tax advisors the applicable tax (U.S., foreign, state, and local) consequences of the transactions contemplated by this Agreement.  The Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents.  The Participant understands that the Participant (and not the Company) shall be responsible for any tax liability that may arise as a result of the transactions contemplated by this Agreement.
10.    Investment Representation. The Participant hereby represents and warrants to the Company that the Participant, by reason of the Participant’s business or financial experience (or the business or financial experience of the Participant’s professional advisors who are unaffiliated with and who are not compensated by the Company or any affiliate or selling agent of the Company, directly or indirectly), has the capacity to protect the Participant’s own interests in connection with the transactions contemplated under this Agreement.
1.    Entire Agreement; Language; Governing Law.  This Agreement and the Plan and the other related agreements expressly referred to herein set forth the entire agreement and understanding between the parties hereto and supersedes all prior agreements and understandings relating to the subject matter hereof.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same agreement.  The headings of sections and subsections herein are included solely for convenience of reference and shall not affect the meaning of any of the provisions of this Agreement.  This Agreement has been prepared in English and may be translated into one or more other languages.  If there is a discrepancy between or among any of these versions, the English version shall prevail.  Unless otherwise restricted by applicable law, this Agreement may be executed electronically.  This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Pennsylvania, USA, other than its conflicts of laws principles.
2.    Severability; Judicial Reformation. Should any provision of this Agreement be held by a court of competent jurisdiction to be unenforceable, or enforceable only if modified, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the parties hereto with any such modification (if any) to become a part hereof and treated as though contained in this original Agreement. Moreover, if one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to scope, activity, subject or otherwise so as to be unenforceable, in lieu of severing such unenforceable provision, such provision or provisions shall be construed by the appropriate judicial body by limiting or reducing it or them, so as to be enforceable to the maximum extent compatible with the applicable law as it shall then appear, and such 

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determination by such judicial body shall not affect the enforceability of such provisions or provisions in any other jurisdiction.
3.    Amendments; Construction.  The Compensation Committee may amend the terms of this Agreement prospectively or retroactively at any time, but (unless otherwise provided under Section 18 of the Plan) no such amendment shall impair the rights of the Participant hereunder without his or her consent.  To the extent the terms of Section 5 conflict with any prior agreement between the parties related to such subject matter, the terms of Section 5, to the extent more restrictive, shall supersede such conflicting terms and control.  Headings to Sections of this Agreement are intended for convenience of reference only, are not part of this Agreement and shall have no effect on the interpretation hereof.
4.    Acceptance.  The Participant hereby acknowledges receipt of a copy of the Plan and this Agreement. The Participant has read and understand the terms and provision thereof, and accepts the Options subject to all the terms and conditions of the Plan and this Agreement. The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Compensation Committee upon any questions arising under this Agreement.
5.    Miscellaneous.
(a)    No Rights to Grants or Continued Employment.  The Participant acknowledges that the award granted under this Agreement is not employment compensation nor is it an employment right, and is being granted at the sole discretion of the Compensation Committee.  The Participant shall not have any claim or right to receive grants of Awards under the Plan.  Neither the Plan nor this Agreement, or any action taken or omitted to be taken hereunder or thereunder, shall be deemed to create or confer on the Participant any right to be retained as an employee of the Company or any Subsidiary or other Affiliate thereof, or to interfere with or to limit in any way the right of the Company or any Affiliate or Subsidiary thereof to terminate the employment of the Participant at any time.
(b)    No Restriction on Right of Company to Effect Corporate Changes.  Neither the Plan nor this Agreement shall affect in any way the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations, or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company, or any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred, or prior preference stocks whose rights are superior to or affect the Common Stock or the rights thereof or which are convertible into or exchangeable for Common Stock, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of the assets or business of the Company, or any other corporate act or proceeding, whether of a similar character or otherwise.

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(c)    Assignment.  The Company shall have the right to assign any or all of its rights and to delegate any or all of its duties under this Agreement to any of its Affiliates.  The terms and conditions of this Agreement shall be binding upon and shall inure to the benefit of the permitted successors and assigns of the Company (including any person or entity which acquires all or substantially all of the assets of the Company).
(d)    Adjustments.  The Options shall be adjusted or terminated as contemplated by Section 16(a) of the Plan.
(a)    Clawback Policy.  The Options and any Option Shares shall be subject to the terms of the clawback policy adopted by the Board of Directors (as such policy may be amended from time-to-time).
[REST OF PAGE LEFT INTENTIONALLY BLANK]

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THIS AGREEMENT SHALL BE NULL AND VOID AND UNENFORCEABLE BY THE PARTICIPANT UNLESS SIGNED AND DELIVERED TO THE COMPANY NOT LATER THAN THIRTY (30) DAYS SUBSEQUENT TO THE DATE OF GRANT SET FORTH BELOW.  
BY SIGNING THIS AGREEMENT, THE PARTICIPANT IS HEREBY CONSENTING TO THE USE AND TRANSFER OF THE PARTICIPANT’S PERSONAL DATA BY THE COMPANY TO THE EXTENT NECESSARY TO ADMINISTER AND PROCESS THE AWARDS GRANTED UNDER THIS AGREEMENT.
IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer and the Participant has executed this Agreement, both as of the day and year first above written.
	
		
	ENERSYS
	 

	 
	 

	By:
	 

	Name:
	David M. Shaffer

	Title:
	President & Chief Executive Officer

	 
	 

	PARTICIPANT
	 

	 
	 

	By:
	 

	Name:
	 

	Address:
	 

	 
	 

	 
	 

Date Of Grant:  __________________
		
	Number of Options: 
	_______     Option Price:  $ _____

 

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Appendix A
to
Employee Stock Option Agreement 
Under the 2017 Equity Incentive Plan

This Appendix A contains supplemental terms and conditions for awards of nonqualified stock options (“Options”) granted as of the Date of Grant set forth in the Agreement under the 2017 Equity Incentive Plan (the “Plan”) to Participants who reside outside the United States or who are otherwise subject to the laws of a country other than the United States.  
The Participant has also received the Agreement applicable to the Award set forth therein.  The Agreement, together with this Appendix A and the Plan are the terms and conditions of the grant of Options set forth in the Agreement.  To the extent that this Appendix A amends, deletes or supplements any terms of the Agreement, this Appendix A shall control.  Capitalized terms used but not defined herein shall have the same meanings ascribed to them in the Agreement. 
Section I of this Appendix A contains special terms and conditions that govern the Options outside of the United States.  Section II of this Appendix A contains special terms and conditions that govern the Options in all countries, excluding France, Germany, Italy and the United Kingdom.  Section III of this Appendix A contains special terms and conditions that govern the Options in France, Germany, Italy and the United Kingdom. Section IV of this Appendix A includes special terms and conditions in the specific countries listed therein.
This Appendix A may also include information regarding exchange controls, taxation of awards and certain other issues of which the Participant should be aware with respect to participation in the Plan.  The information is based on the securities, exchange control, tax and other laws concerning Options in effect as of July 30, 2018.  Such laws are often complex and change frequently; the information may be out of date at the time the Participant vests in or exercises the Options or sells shares acquired under the Plan. As a result, the Company strongly recommends that the Participant should not rely on the information noted herein as the only source of information relating to the consequences of the Participant's participation in the Plan.
In addition, this Appendix A is general in nature, does not discuss all of the various laws, rules and regulations which may apply to the Participant's particular situation and the Company does not assure the Participant of any particular result.  Accordingly, the Participant is strongly advised to seek appropriate professional advice as to how the relevant laws in the Participant's country apply to the Participant's specific situation.
Finally, if the Participant is a citizen or resident of a country other than the one in which the Participant is currently working, transferred employment after the Award was 

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granted or is considered a resident of another country for local law purposes, the information contained herein may not be applicable to the Participant in the same manner.  In addition, the Company shall, in its sole discretion, determine to what extent the terms and conditions contained herein will apply under these circumstances.  
Section I.  All Countries Outside the United States

1.    Nature of Grant.  In accepting the Award, the Participant acknowledges that:

(a)the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan;

(b)the grant of the Options is voluntary and occasional and does not create any contractual or other right to receive future grants of Options, or benefits in lieu of Options, even if Options have been granted repeatedly in the past; 

(c)all decisions with respect to future grants, if any, will be at the sole discretion of Company; 

(d)the Participant is voluntarily participating in the Plan; 

(e)the Options and the underlying shares of Common Stock subject to the Options are extraordinary items that do not constitute compensation of any kind for services of any kind rendered to the Company or any Subsidiary or Affiliate, and which is outside the scope of the Participant's employment contract, if any; 

(f)the Options and the underlying shares of Common Stock subject to the Options are not intended to replace any pension rights, if any, or compensation; 

(g)the Options and the underlying shares of Common Stock subject to the Options, and the income and value of same, are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company or any Subsidiary or Affiliate; 

(h)the grant of the Options and the Participant's participation in the Plan will not be interpreted to form an employment contract or relationship with the Company or any Subsidiary or Affiliate;

(i)the future value of the underlying shares of Common Stock is unknown and cannot be predicted with certainty; 

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(j)if the Participant obtains shares of Common Stock upon exercise of the Participant's Options, the value of those shares acquired may increase or decrease in value;
(k)in consideration of the grant of the Options, no claim or entitlement to compensation or damages shall arise from forfeiture of the Options resulting from termination of the Participant's employment with the Company or any Subsidiary or Affiliate (for any reason whatsoever and whether or not in breach of local labor laws) and the Participant irrevocably release the Company and the Subsidiaries and Affiliates from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, the Participant will be deemed irrevocably to have waived the Participant's entitlement to pursue such claim;  

(l)in the event of termination of the Participant's employment (whether or not in breach of local labor laws), the Participant's right to vest in the Options under the Plan, if any, will terminate effective as of the date that the Participant is no longer actively employed and will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law); the Compensation Committee shall have the exclusive discretion to determine when the Participant is no longer actively employed for purposes of the Participant's Award;

(m)the Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant's participation in the Plan, or the Participant's acquisition or sale of Common Stock; 

(n)the Participant is hereby advised to consult with the Participant's personal tax, legal and financial advisors regarding participation in the Plan before taking any action related to the Plan; 

(o)unless otherwise provided in the Plan or by the Company in its discretion, the Options and the benefits evidenced by this Agreement do not create any entitlement to have the Options or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the shares of the Company; and

(p)neither the Company, any Subsidiary nor any Affiliate of the Company shall be liable for any foreign exchange rate fluctuation between the Participant's local currency and the United States Dollar that may affect the value of the Options or of any amounts due to the Participant pursuant to the exercise of the Options or the subsequent sale of any shares acquired upon exercise.

		
	2.
	Payment of Taxes.  The following provisions supplement Section 8 of the Agreement entitled “Taxes.”

i.Regardless of any action the Company or the Subsidiary/Affiliate that employs the Participant (the “Employer”) takes with respect to any or all income tax, the Participant’s portion of social insurance, payroll tax, payment 

Page 15 of 15

 

on account or other tax-related items related to the Participant’s participation in the Plan and legally applicable to the Participant (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains the Participant’s responsibility and may exceed the amount actually withheld by the Company or the Employer.
ii.The Participant further acknowledges that the Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including, but not limited to, the grant of the Options, the issuance of shares of Common Stock upon exercise of the Options, the subsequent sale of shares of Common Stock acquired pursuant to such issuance and the receipt of any dividends; and (2) do not commit to, and are under no obligation to, structure the terms of the grant or any aspect of the Options to reduce or eliminate the Participant’s liability for Tax-Related Items or achieve any particular tax result.
iii.Further, if the Participant becomes subject to tax in more than one jurisdiction between the Date of Grant and the date of any relevant taxable event, the Participant acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.
iv.The Participant authorizes the Company and/or the Employer, or their respective agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following:  (1) withholding in shares of Common Stock to be issued or cash distributed upon exercise of the Options; (2) withholding from the Participant’s wages or other cash compensation paid to the Participant by the Company and/or the Employer; (3) withholding from the proceeds of the sale of shares of Common Stock acquired upon exercise of the Options either through a voluntary sale or through a mandatory sale arranged by the Company (on the Participant’s behalf pursuant to this authorization).
v.To avoid negative accounting treatment, the Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates.  If the obligation for Tax-Related Items is satisfied by withholding in shares of Common Stock, for tax purposes, the Participant shall be deemed to have been issued the full number of shares of Common Stock issuable upon the exercise of the Options, notwithstanding that a number of the shares of Common Stock are held back solely for the purpose of paying the Tax-Related Items due as a result of any aspect of the Participant’s participation in the Plan.
vi.The Participant shall pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of the Participant’s participation in the Plan that cannot be satisfied by the means previously described.  The Company may refuse to 

Page 16 of 16

 

issue or deliver the shares of Common Stock or the proceeds of the sale of shares of Common Stock, if the Participant fails to comply with this obligation.
		
	3.
	Insider Trading Restrictions/Market Abuse Laws.  The Participant acknowledges that, depending on the Participant’s country of residence (and country of employment, if different), the Participant may be subject to insider trading restrictions and/or market abuse laws, which may affect the Participant’s ability to acquire or sell shares of Common Stock or rights to shares of Common Stock (e.g., Options) under the Plan during such times as the Participant is considered to have “inside information” (as defined by the laws in the applicable country).  The insider trading and/or market abuse laws may be different from any Company Insider Trading Policy. The Participant personally is responsible for ensuring compliance with any applicable restrictions and should consult with the Participant’s personal legal advisor for additional information about any applicable restrictions and the Participant’s obligations.

		
	4.
	Foreign Asset/Account and Exchange Control Reporting.  The Participant’s country of residence (and country of employment, if different) may have certain exchange controls and foreign asset and/or account reporting requirements which may affect the Participant’s ability to purchase or hold shares of Common Stock under the Plan or receive cash from the Participant’s participation in the Plan (including from any dividends received or sale proceeds arising from the sale of shares of Common Stock) in a brokerage or bank account outside the Participant’s country of residence (and country of employment, if different).  The Participant may be required to report such accounts, assets or transactions to the tax or other authorities in the Participant’s country of residence (and country of employment, if different).  Further, the Participant may be required to repatriate the shares of Common Stock or proceeds acquired as a result of participating in the Plan to the Participant’s country of residence (and country of employment, if different) through a designated bank/broker and/or within a certain time.  The Participant personally is responsible for ensuring compliance with any applicable reporting obligations and should consult with the Participant’s personal legal advisor for additional information about such obligations.

Section II.  All Countries excluding France, Germany, Italy and the United Kingdom

Data Privacy Consent.  
I hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of my personal data as described in this Agreement and any other Award grant materials by and among, as applicable, the employer, the Company and its subsidiaries and affiliates for the exclusive purpose of implementing, administering and managing my participation in the Plan (“Data”).
I understand that the Company and the employer may hold certain personal information about me, including, but not limited to, my name, home address and 

Page 17 of 17

 

telephone number, email address, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all Awards or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in my favor, for the exclusive purpose of implementing, administering and managing the Plan.
I understand that Data will be transferred to a third party plan administrator, or such other stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan.  I understand that the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the United States) may have different data privacy laws and protections than my country.  I understand that if I reside outside the United States, I may request a list with the names and addresses of any potential recipients of the Data by contacting my local human resources representative.  I authorize the Company, the third party administrator and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing my participation in the Plan.  I understand that Data will be held only as long as is necessary to implement, administer and manage my participation in the Plan.  I understand that if I reside outside the United States, I may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing my local human resources representative.  Further, I understand that I am providing the consents herein on a purely voluntary basis. If I do not consent, or if I later seek to revoke my consent, my employment status or service and career with the employer will not be adversely affected; the only adverse consequence of refusing or withdrawing my consent is that the Company would not be able to grant me the Award or other awards or administer or maintain such awards. Therefore, I understand that refusing or withdrawing my consent may affect my ability to participate in the Plan.  
I understand that I will consult my local human resources representative, Privacy Champion, Data Protection Officer (if applicable), or the Legal Department, if I have any questions or comments concerning the processing of my data.
Section III.  France, Germany, Italy and the United Kingdom

Data Privacy Notice.  
You are hereby notified of the collection, use and transfer outside of the European Economic Area, as described in this Agreement, in electronic or other form, of your Personal Data (defined below) by and among, as applicable, the Company and certain of its Subsidiaries and/or Affiliates for the purpose of performing and satisfying its contractual obligations under the Agreement and for the necessary, exclusive and 

Page 18 of 18

 

legitimate purpose of implementing, administering and managing your participation in the Plan.    
You understand that the Company and the Employer hold certain personal information about you, including, but not limited to, your name, home address and telephone number, email address, date of birth, social insurance, passport or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all entitlement to Shares awarded, canceled, vested, unvested or outstanding in your favor (“Personal Data”), for the purpose of implementing, administering and managing the Plan.
You understand that providing the Company with this Personal Data is necessary for the performance of this Agreement and that your refusal to provide the Personal Data would make it impossible for the Company to perform its contractual obligations and may affect your ability to participate in the Plan.  Your Personal Data shall be accessible within the Company only by the persons specifically charged with Personal Data processing operations and by the persons that need to access the Personal Data because of their duties and position in relation to the performance of this Agreement.  
The Personal Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan.  You may, at any time and without cost, contact Solium Capital LLC, 60 E. Rio Salado Parkway, Suite 510, Tempe AZ 85281 to enforce your rights under the data protection laws in your country, which may include the right to (i) request access to or copies of Personal Data subject to processing; (ii) request rectification of incorrect Personal Data; (iii) request deletion of Personal Data; (iv) request restriction on processing of Personal Data; (v) request portability of Personal Data; (vi) lodge complaints with competent authorities in your country; and/or (vii) request a list with the names and addresses of any potential recipients of Personal Data.
The Company provides appropriate safeguards for protecting Personal Data that it receives in the U.S. through its adherence to data transfer agreements (which include model contractual clauses) entered into between the Company and its Subsidiaries and Affiliates within the European Union. 
Further, you are hereby notified that the Company and certain of its Subsidiaries and/or Affiliates will transfer Personal Data amongst themselves as necessary for the purpose of implementation, administration and management of your participation in the Plan.  When transferring Personal Data to these recipients, the Company and its Subsidiaries and/or Affiliates, as applicable, will provide appropriate safeguards in accordance with the data transfer agreements entered into between these parties.
The Company or its Subsidiaries or Affiliates may each further transfer Personal Data to Solium Capital LLC and/or such other third parties as may be 

Page 19 of 19

 

selected by the Company, which are assisting the Company with the implementation, administration and management of the Plan.  The Company may select a different service provider or additional service providers and share Personal Data with such other provider(s) serving in a similar manner.  Solium Capital LLC is based in the United States.  Your country or jurisdiction may have different data privacy laws and protections than the United States.  Nonetheless, your Personal Data will be transferred to Solium Capital LLC for the exclusive purpose of administering your participation in the Plan. The Company's legal basis, where required, for the transfer of Personal Data to Solium Capital LLC is that such transfer is necessary for the purpose of performing and satisfying its contractual obligations under the Agreement.
Finally, you may choose to opt out of allowing the Company to share your Personal Data with Solium Capital LLC and others as described above, although execution of such choice may mean the Company cannot grant awards under the Plan to you.  For questions about this choice or to make this choice, you should contact the EnerSys legal department at legal.enersys.com. 
Section IV.  Country-Specific Provisions

China
Options Settled Only in Cash.  Notwithstanding anything in the Agreement or the Plan to the contrary, any exercised Options shall be settled solely by means of a cash payment made directly to the Participant by the Affiliate in China that employs the Participant.  The grant of Options does not provide any right for the Participant to receive shares of Common Stock.
France
Nature of Options.  The Options are not granted under the French specific regime provided by Articles L. 225-177 to L. 225-186-1 of the French commercial code.
English Language Consent.  The parties acknowledge that it is their express wish that the Plan, the Agreement and this Appendix A, as well as all documents, notices and legal proceedings entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English.
Les parties reconnaissent avoir exigé la rédaction en anglais de cette convention («Plan, Agreement and Appendix A»), ainsi que de tous documents, avis et procédures judiciaires, exécutés, donnés ou intentés en vertu de, ou liés directement ou indirectement à, la présente convention.
Exchange Control Information.  The value of any cash or securities imported to or exported from France without the use of a financial institution must be reported to the customs and excise authorities when the value of such cash or securities is equal to or greater than a certain amount.  The Participant personally is responsible for ensuring 

Page 20 of 20

 

compliance with any applicable reporting obligations and should consult with the Participant’s personal legal advisor for additional information about such obligations.
Germany
Exchange Control Information.  Cross-border payments in connection with the purchase or sale of securities in excess of EUR 12,500 must be reported monthly by accessing the electronic General Statistics Reporting Portal (Allgemeines Meldeportal Statistik) via the Bundesbank’s website (www.bundesbank.de).  The Participant personally is responsible for ensuring compliance with any applicable reporting obligations and should consult with the Participant’s personal legal advisor for additional information about such obligations.
Italy
Options Exercisable by Cashless Exercise Only.  Notwithstanding anything in the Agreement or the Plan to the contrary, the Participant may exercise the Options only by means of a full Cashless Exercise, such that the Participant will deliver a properly executed notice together with irrevocable instructions to a broker in a form acceptable to the Company providing for the assignment to the Company of the proceeds of a sale with respect to all of the shares of Common Stock acquired upon the exercise of the Options pursuant to a program or procedure approved by the Company.  The cash proceeds from the sale of the shares of Common Stock, less the Option Price, any Tax-Related Items that are required to be withheld and broker’s fees or commissions, will be paid to the Participant.  The Company reserves the right to eliminate the required use of the Cashless Exercise form of payment, in its sole discretion, and allow the Participant to use another form of payment permitted under Section 4(d) of the Agreement.
Plan Document Acknowledgment.  In accepting the grant of Options, the Participant acknowledges that the Participant has received a copy of the Plan, has reviewed the Plan and the Agreement in their entirety, and fully understands and accepts all provisions of the Plan and the Agreement.  The Participant further acknowledges that the Participant has read and specifically and expressly approves the following Sections in the Agreement and Appendix A:  
		
	•
	Section 4 (Terms and Conditions)

		
	•
	Section 5 (Noncompetition)

		
	•
	Section 6 (Wrongful Solicitation)

		
	•
	Section 7 (Confidentiality; Specific Performance)

		
	•
	Section 17 (Investment Representation)

		
	•
	Section 18 (Entire Agreement; Language; Governing Law)

Page 21 of 21

 

		
	•
	Section 22(e) (Clawback Policy)

		
	•
	Appendix A, Section I (Nature of Grant)

		
	•
	Appendix A, Section I (Payment of Taxes)

		
	•
	Appendix A, Section III (Data Privacy Notice)

Singapore
Sale Restriction.  The Participant expressly agrees that any shares of Common Stock received upon exercise of the Options will not be offered for sale or sold in Singapore prior to the six (6) month anniversary of the Date of Grant, unless such sale or offer in is made after pursuant to the exemption under Part XIII Division (1) Subdivision (4) (other than Section 280) of the SFA (Chapter 289, 2006 Ed.) or pursuant to, and in accordance with the conditions of, any other applicable provision(s) of the SFA.
Securities Law Information.  The grant of Options is being made in reliance on Section 273(1)(f) of the SFA, under which it is exempt from the prospectus and registration requirements under the SFA and is not made to the Participant with a view to the shares of Common Stock being subsequently offered for sale to any other party.  The Plan has not been lodged or registered as a prospectus with the Monetary Authority of Singapore. 
Chief Executive Officer and Director Notification Obligation.  If the Participant is the Chief Executive Officer (“CEO”) or a director, alternate director, substitute director or shadow director of the Company’s Singapore Subsidiary or Affiliate, the Participant is subject to certain notification requirements under the Singapore Companies Act.  Among these requirements is an obligation to notify the Company’s Singapore Subsidiary or Affiliate in writing when the Participant receives an interest (e.g., Options or shares of Common Stock) in the Company or any Subsidiary or Affiliate.  This notification must be made (a) within two (2) business days of acquiring or disposing of any interest in the Company or any Subsidiary or Affiliate, or becoming the CEO or a director, associate director or shadow director, whichever occurs last, and (b) upon any change in a previously disclosed interest (e.g., sale of shares of Common Stock issued upon vesting and settlement of the Options).
Switzerland
Securities Law Information.  The offer of the Options is considered a private offering in Switzerland and therefore is not subject to securities registration in Switzerland.  Neither this document nor any other materials relating to the Options (a) constitutes a prospectus as such term is understood pursuant to article 652a of the Swiss Code of Obligations, (b) may be publicly distributed or otherwise made publicly available in Switzerland or (c) has been or will be filed with, approved, or supervised by any Swiss regulatory authority (in particular, the Swiss Financial Market Supervisory Authority (FINMA)).

Page 22 of 22

 

United Kingdom
Tax Withholding.  The following provision supplements Section I (Payment of Taxes) of this Appendix A:
The Participant expressly agrees that the Participant is liable for all Tax-Related Items and hereby covenants to pay all such Tax-Related Items, as and when requested by the Company, the Employer and/or by Her Majesty’s Revenue & Customs (“HRMC”) (or any other tax authority or any other relevant authority).  The Participant also hereby agrees to indemnify and keep indemnified the Company and the Employer against any Tax-Related Items that they are required to pay or withhold or have paid or will pay on the Participant’s behalf to HMRC (or any other tax authority or any other relevant authority).
Notwithstanding the foregoing, if the Participant is a director or executive officer of the Company (within the meaning of Section 13(k) of the Exchange Act) and the indemnification of the Company and the Employer is viewed as a loan, the Participant will be ineligible for such a loan to cover income tax.  In the event that the Participant is a director or executive officer and income taxes are not collected from or paid by the Participant within ninety (90) days after the end of the tax year in which the event giving rise to the income tax obligation arose, the amount of any uncollected income tax may constitute a benefit to the Participant on which additional income tax and national insurance contributions (“NICs”) may be payable.  The Participant acknowledges that the Participant will be responsible for reporting any income tax due on this additional benefit directly to HMRC under the self-assessment regime and for paying the Company or the Employer (as applicable) for any employee NICs due on this additional benefit which may be recovered from the Participant by the Company or the Employer at any time thereafter by any of the means referred to herein.  
**************************

Page 23 of 23EX-10.1

 Exhibit 10.1 

[***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. 
 EXECUTION VERSION 

CONFIDENTIAL 
  

 
 EXCLUSIVE LICENSE AND COLLABORATION AGREEMENT 

by and between 
 AQUINOX
PHARMACEUTICALS (CANADA), INC. 
 and 

ASTELLAS US LLC 
  

 
  

 Table of Contents 

 

									
	 	 	 	  	 	  	Page	 
		
	ARTICLE I DEFINITIONS	  	 	1	 
		
	ARTICLE II LICENSES; [***]	  	 	16	 
				
		 	2.1	  	License Grants to Astellas	  	 	16	 
				
		 	2.2	  	Sublicensing by Astellas	  	 	17	 
				
		 	2.3	  	Aquinox Retained Rights	  	 	18	 
				
		 	2.4	  	Licenses to Aquinox	  	 	18	 
				
		 	2.5	  	Astellas Retained Rights	  	 	19	 
				
		 	2.6	  	[***] Technology	  	 	19	 
				
		 	2.7	  	No Implied License	  	 	19	 
				
		 	2.8	  	Astellas Covenants.	  	 	19	 
				
		 	2.9	  	Aquinox Covenants.	  	 	20	 
				
		 	2.10	  	Existing Intellectual Property	  	 	20	 
				
		 	2.11	  	New Intellectual Property.	  	 	20	 
				
		 	2.12	  	Rights in Bankruptcy	  	 	21	 
				
		 	2.13	  	Trademark Licenses.	  	 	21	 
				
		 	2.14	  	[***].	  	 	22	 
				
		 	2.15	  	[***].	  	 	22	 
		
	ARTICLE III GOVERNANCE	  	 	23	 
				
		 	3.1	  	JSC; Formation and Purpose	  	 	23	 
				
		 	3.2	  	Membership and Procedures.	  	 	23	 
				
		 	3.3	  	Decision-Making.	  	 	24	 
				
		 	3.4	  	Expenses	  	 	25	 
				
		 	3.5	  	Alliance Managers	  	 	25	 
				
		 	3.6	  	Discontinuation of the JSC	  	 	26	 
		
	ARTICLE IV DEVELOPMENT	  	 	26	 
				
		 	4.1	  	General.	  	 	26	 
				
		 	4.2	  	Preclinical Development.	  	 	27	 
				
		 	4.3	  	Clinical Development.	  	 	27	 
				
		 	4.4	  	Certain Clinical Trials for the Initial Product	  	 	28	 
				
		 	4.5	  	 Review of Protocol Synopsis
	  	 	28	 

  
 -i- 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 Table of Contents 

(continued) 
  

							
	 	 	 	  	 	  	Page
				
		 	4.6	  	Development in the Retained Territory	  	29
				
		 	4.7	  	Transfer of Data Relating to the Initial Product.	  	29
				
		 	4.8	  	Other Data Generated by Either Party after the Effective Date.	  	30
				
		 	4.9	  	Ownership of Data	  	30
				
		 	4.10	  	Performance and Diligence.	  	30
				
		 	4.11	  	Records, Reports and Information	  	31
		
	ARTICLE V REGULATORY MATTERS	  	31
				
		 	5.1	  	Generally.	  	31
				
		 	5.2	  	Regulatory Activities in the Licensed Territory	  	32
				
		 	5.3	  	Astellas Regulatory Data and Regulatory Approvals.	  	32
				
		 	5.4	  	Regulatory Costs	  	33
				
		 	5.5	  	Astellas Regulatory Filings	  	33
				
		 	5.6	  	Rights of Reference	  	33
				
		 	5.7	  	Safety; Adverse Event Reporting.	  	33
		
	ARTICLE VI COMMERCIALIZATION	  	34
				
		 	6.1	  	Overview and Diligence	  	34
				
		 	6.2	  	Commercialization Plan	  	34
				
		 	6.3	  	Pricing.	  	34
				
		 	6.4	  	Reports	  	35
				
		 	6.5	  	Communications	  	35
				
		 	6.6	  	Approval for Certain Marketing Activities	  	35
				
		 	6.7	  	Marketing and Promotional Literature	  	35
				
		 	6.8	  	Marketing and Sales in the Retained Territory	  	36
				
		 	6.9	  	Labeling	  	36
				
		 	6.10	  	Selection of Product Trademark	  	36
		
	ARTICLE VII MANUFACTURING AND SUPPLY	  	36
				
		 	7.1	  	Manufacturing Coordinators	  	36
				
		 	7.2	  	Joint Manufacturing Plan.	  	36
				
		 	7.3	  	Aquinox Supply to Astellas.	  	37
				
		 	7.4	  	Technology Transfer.	  	38

  
 -ii- 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 Table of Contents 

(continued) 
  

											
	 	 	 	 	  	 	  	Page	 
				
		 	 	7.5	 	  	[***].	  	 	38	 
				
		 	 	7.6	 	  	[***]	  	 	39	 
		
	 ARTICLE VIII MEDICAL AFFAIRS
	  	 	39	 
				
		 	 	8.1	 	  	Generally	  	 	39	 
				
		 	 	8.2	 	  	Joint Medical Affairs Plan	  	 	39	 
				
		 	 	8.3	 	  	Approval for Certain Medical Affairs Activities	  	 	39	 
				
		 	 	8.4	 	  	Reports	  	 	40	 
				
		 	 	8.5	 	  	Phase 4 Trials	  	 	40	 
				
		 	 	8.6	 	  	Investigator-Initiated Studies	  	 	40	 
		
	 ARTICLE IX FINANCIAL TERMS
	  	 	40	 
				
		 	 	9.1	 	  	Upfront Payment	  	 	40	 
				
		 	 	9.2	 	  	Reimbursements	  	 	40	 
				
		 	 	9.3	 	  	Milestone Payments.	  	 	40	 
				
		 	 	9.4	 	  	Running Royalties.	  	 	42	 
				
		 	 	9.5	 	  	Royalty Payments and Reports	  	 	43	 
				
		 	 	9.6	 	  	Adjustments to Payment of Royalty.	  	 	44	 
				
		 	 	9.7	 	  	Foreign Exchange	  	 	45	 
				
		 	 	9.8	 	  	Late Payments	  	 	45	 
				
		 	 	9.9	 	  	Taxes	  	 	45	 
				
		 	 	9.10	 	  	Records; Audits	  	 	46	 
				
		 	 	9.11	 	  	Financial Contacts	  	 	46	 
		
	 ARTICLE X INTELLECTUAL PROPERTY
	  	 	46	 
				
		 	 	10.1	 	  	Ownership of Collaboration Inventions	  	 	47	 
				
		 	 	10.2	 	  	Disclosure of Collaboration Inventions	  	 	47	 
				
		 	 	10.3	 	  	Right to Practice Joint Inventions	  	 	47	 
				
		 	 	10.4	 	  	Prosecution of Patents.	  	 	47	 
				
		 	 	10.5	 	  	Patent Term Extensions in the Licensed Territory	  	 	49	 
				
		 	 	10.6	 	  	Infringement of Patents by Third Parties.	  	 	49	 
				
		 	 	10.7	 	  	Infringement of Third Party Rights.	  	 	51	 
				
		 	 	10.8	 	  	Patent Marking	  	 	52	 
				
		 	 	10.9	 	  	Patent Oppositions and Other Proceedings.	  	 	52	 

  
 -iii- 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 Table of Contents 

(continued) 
  

											
	 	 	 	 	  	 	  	Page	 
		
	 ARTICLE XI CONFIDENTIALITY
	  	 	53	 
				
		 	 	11.1	 	  	Nondisclosure	  	 	53	 
				
		 	 	11.2	 	  	Authorized Disclosure	  	 	53	 
				
		 	 	11.3	 	  	Publications.	  	 	54	 
				
		 	 	11.4	 	  	Publicity.	  	 	55	 
		
	 ARTICLE XII REPRESENTATIONS, WARRANTIES, & COVENANTS
	  	 	56	 
				
		 	 	12.1	 	  	Mutual Representations and Warranties	  	 	56	 
				
		 	 	12.2	 	  	Aquinox Representation and Warranty	  	 	57	 
				
		 	 	12.3	 	  	Astellas Representation, Warranty and Covenant	  	 	57	 
				
		 	 	12.4	 	  	Limitation on Warranties; No Implied Warranties	  	 	57	 
		
	 ARTICLE XIII INDEMNIFICATION AND INSURANCE
	  	 	58	 
				
		 	 	13.1	 	  	Indemnification by Aquinox	  	 	58	 
				
		 	 	13.2	 	  	Indemnification by Astellas	  	 	58	 
				
		 	 	13.3	 	  	Indemnification Procedures	  	 	58	 
				
		 	 	13.4	 	  	Non-Exclusive Remedy	  	 	59	 
				
		 	 	13.5	 	  	Limitation of Liability	  	 	59	 
				
		 	 	13.6	 	  	Insurance	  	 	59	 
		
	 ARTICLE XIV TERM AND TERMINATION
	  	 	59	 
				
		 	 	14.1	 	  	Term	  	 	59	 
				
		 	 	14.2	 	  	Early Termination.	  	 	59	 
				
		 	 	14.3	 	  	Termination for Breach	  	 	60	 
				
		 	 	14.4	 	  	Aquinox Rights upon Termination of the Agreement	  	 	60	 
				
		 	 	14.5	 	  	Survival	  	 	61	 
		
	 ARTICLE XV DISPUTE RESOLUTION
	  	 	61	 
				
		 	 	15.1	 	  	Disputes	  	 	61	 
				
		 	 	15.2	 	  	Negotiation by Executive Officers	  	 	61	 
				
		 	 	15.3	 	  	Binding Arbitration	  	 	62	 
				
		 	 	15.4	 	  	Expedited Arbitration	  	 	63	 
				
		 	 	15.5	 	  	Patent and Trademark Dispute Resolution	  	 	63	 

  
 -iv- 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 Table of Contents 

(continued) 
  

											
	 	 	 	 	  	 	  	Page	 
		
	 ARTICLE XVI OTHER PROVISIONS
	  	 	63	 
				
		 	 	16.1	 	  	Governing Law	  	 	63	 
				
		 	 	16.2	 	  	Performance Through Affiliates	  	 	63	 
				
		 	 	16.3	 	  	Force Majeure	  	 	63	 
				
		 	 	16.4	 	  	Assignment.	  	 	64	 
				
		 	 	16.5	 	  	Severability	  	 	64	 
				
		 	 	16.6	 	  	Notices	  	 	64	 
				
		 	 	16.7	 	  	Time of the Essence	  	 	65	 
				
		 	 	16.8	 	  	Entire Agreement; Amendments	  	 	65	 
				
		 	 	16.9	 	  	Relationship of the Parties	  	 	65	 
				
		 	 	16.10	 	  	Waiver	  	 	66	 
				
		 	 	16.11	 	  	Third Party Beneficiaries	  	 	66	 
				
		 	 	16.12	 	  	Further Assurances	  	 	66	 
				
		 	 	16.13	 	  	Counterparts	  	 	66	 
				
		 	 	16.14	 	  	Interpretation	  	 	66	 

  

							
	 EXHIBITS
	  			
			
		 	Exhibit 1 – [***]	  			
			
		 	Exhibit 2 – [***]	  			
			
		 	Exhibit 3 – Chemical Structure of Rosiptor	  			
			
		 	Exhibit 4 – [***]	  			
			
		 	Exhibit 5 – [***]	  			
			
		 	Exhibit 6 – List of Aquinox Patents	  			
			
		 	Exhibit 7 – Expedited Arbitration Procedures	  			

  
 -v- 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

EXCLUSIVE LICENSE AND COLLABORATION AGREEMENT 

This EXCLUSIVE LICENSE AND COLLABORATION
AGREEMENT (this “Agreement”) effective as of May     , 2018 (the “Effective Date”), is by and between Aquinox Pharmaceuticals (Canada) Inc., a
corporation organized and existing under the laws of Canada, with an address at 450-887 Great Northern Way, Vancouver, B.C., Canada V5T 4T5 (“Aquinox”) and ASTELLAS US
LLC, a company organized and existing under the laws of Illinois, with an address at 1 Astellas Way, Northbrook, Illinois 60062, U.S.A. (“Astellas”). Aquinox and Astellas may be referred to herein each as a
“Party” and collectively as the “Parties”. 
 RECITALS 

WHEREAS, Aquinox is currently conducting clinical development for its proprietary compound known as Rosiptor (also known as AQX-1125), for the treatment of interstitial cystitis/bladder pain syndrome (“IC/BPS”); 

WHEREAS, Astellas is a pharmaceutical company with experience in developing and commercializing pharmaceutical products all over the world;

 WHEREAS, Astellas wishes to obtain exclusive rights to seek regulatory approval for, market and sell rosiptor and related compounds in
the Licensed Territory, as more fully described below, and Aquinox wishes to grant such rights to Astellas as set forth herein. 
 NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants contained herein, the Parties hereby agree as follows: 

ARTICLE I 
 DEFINITIONS

 1.1 “Acquiree” has the meaning set forth in Section 16.4.2. 

1.2 “[***]” and “[***]” have the respective meanings set forth in Section 2.14.2. 

1.3 “Adverse Event” means any adverse medical occurrence in a patient or clinical investigation subject to whom a Product is
administered and which could but does not necessarily have a causal relationship with such Compound, including any unfavorable and unintended sign (including an abnormal laboratory finding, for example), symptom, or disease temporally associated
with the administration of such Compound, whether or not considered related to Compound administration. 
 1.4 “[***]” has the
meaning set forth in Section 9.6.1.2. 
 1.5 “Affiliate”, with respect to a Person, means an individual, trust,
business trust, joint venture, partnership, corporation, association, or other legal entity that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with such Person. For purposes of
this definition, “control” and, with correlative meanings, the terms “controlled by” and “under common control with” means (a) the possession, directly or indirectly, 

  
 1 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

of the power to direct the management or policies of a legal entity, whether through the ownership of voting securities or by contract relating to voting
rights or corporate governance, or (b) the ownership, directly or indirectly, of fifty percent (50%) or more of the voting securities or other ownership interest of a legal entity; provided, that if local law restricts foreign ownership,
control will be established by direct or indirect ownership of the maximum ownership percentage that may, under such local law, be owned by foreign interests. 

1.6 “Alliance Manager” has the meaning set forth in Section 3.5 

1.7 “Applicable [***]” has the meaning set forth in Section 1.84 (Definition of “[***]”). 

1.8 “Applicable Laws” means any federal, state, local, national, and supra-national laws, statutes, rules, and/or
regulations, including any rules, regulations, guidance, guidelines, or requirements of Regulatory Authorities, national securities exchanges, or securities listing organizations, that may be in effect from time to time during the Term and apply to
a particular activity hereunder and including laws, regulations, and guidelines governing the import, export, Development, Manufacture, Commercialization of, or Medical Affairs activities relating to, any Product in or for the applicable
jurisdiction. 
 1.9 “Aquinox [***]” means, with respect to the applicable [***], and [***] on a [***], (a) if Aquinox or
its Affiliate [***] or the applicable [***] in such [***] (or any [***] therefor), the [***], in each case [***] to the [***]; and (b) if a [***] Aquinox or its Affiliate [***], as applicable, for the [***]; provided in each case that there
shall be [***]. Aquinox [***] shall be [***]. 
 1.10 “Aquinox Collaboration Inventions” means all Collaboration Inventions
made by or on behalf of Aquinox and relating to the development, manufacture, use or sale of the Compound or the Products, including Aquinox’s interest in the Joint Inventions, but excluding any Collaboration Invention claimed in an issued
Aquinox Collaboration Patent. 
 1.11 “Aquinox Collaboration Patents” means all Collaboration Patents Covering a
Collaboration Invention made by or on behalf of Aquinox, which Collaboration Invention relates to the development, manufacture, use or sale of the Compound or the Products, including Aquinox’s interest in the Joint Patents. 

1.12 “Aquinox Group” has the meaning set forth in Section 13.1. 

1.13 “Aquinox Housemark” means any trademark or trade name, including registrations and applications therefor, owned or
Controlled by Aquinox covering Aquinox’s corporate name and/or company logo. 
 1.14 “Aquinox Indemnitees” has the
meaning set forth in Section 13.2. 

  
 2 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

1.15 “Aquinox Know-How” means all Know-How
owned or Controlled by Aquinox or its Affiliates as of the Effective Date or during the Term which are [***] for the development, manufacture or use of a Compound or a Product (excluding any such Know-How
claimed in an issued Aquinox Patent), including Aquinox’s interest in the Joint Inventions. 
 1.16 “Aquinox Licensed Territory
Preclinical Study” has the meaning set forth in Section 2.3.3. 
 1.17 “Aquinox Material Adverse Effect” has
the meaning set forth in Exhibit 7. 
 1.18 “Aquinox Partner” and “Aquinox Partner Agreement” have the
respective meanings set forth in Section 4.8.2. 
 1.19 “Aquinox Patents” means all Patents owned or Controlled by
Aquinox or its Affiliates [***], including Aquinox’s interest in the Joint Patents; provided that Aquinox Patents and Joint Priority Patents in the Licensed Territory for which Step-In rights are
exercised by Astellas in accordance with Section 10.4.5 shall be excluded from Aquinox Patents thereafter. 
 1.20
“Aquinox-Prosecuted Patents” has the meaning set forth in Section 10.4.2. 
 1.21 “Aquinox
Technology” means the Aquinox Patents and the Aquinox Know-How. For the avoidance of doubt, all Aquinox Collaboration Inventions (including Aquinox’s rights to any Joint Inventions) and Aquinox
Collaboration Patents shall be included within the Aquinox Technology. 
 1.22 “[***]” means the [***] set forth in Exhibit 1.

 1.23 “[***]”, “[***]”, “[***]”, “[***]” and “[***]” have the respective meanings set
forth in Section 2.14.1. 
 1.24 “Astellas [***]” means, with respect to the applicable [***], and [***] on a [***],
(a) if Astellas or its Affiliate [***] or the applicable [***] in such [***] (or any [***] therefor), the [***], in each case [***] to the [***]; and (b) if a [***] Aquinox [***] Astellas or its Affiliate [***], as applicable, for the [***];
provided in each case that there shall be [***]. Astellas [***] shall be [***]. 
 1.25 “Astellas Collaboration Inventions”
means all Collaboration Inventions made by or on behalf of Astellas and relating to the development, manufacture, use or sale of the Compound or the Products, including Astellas’ interest in the Joint Inventions, but excluding any Collaboration
Invention claimed in an issued Astellas Collaboration Patent. 

  
 3 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

1.26 “Astellas Collaboration Patents” means all Collaboration Patents Covering a Collaboration Invention made by or on behalf
of Astellas, which Collaboration Invention relating to the development, manufacture, use or sale of the Compound or the Products, including Astellas’ interest in the Joint Patents. 

1.27 “Astellas Collaboration Technology” means the Astellas Collaboration Patents and the Astellas Collaboration Inventions.

 1.28 “Astellas Group” has the meaning set forth in Section 13.2. 

1.29 “Astellas Indemnitees” has the meaning set forth in Section 13.1. 

1.30 “Astellas Know-How” means all Know-How
owned or controlled by Astellas or its Affiliate during the Term (a) which is [***] for the development, manufacture or use of a Compound or a Product, and (b) which is [***] during the Term for development, manufacture or
commercialization of a Compound or Product for the Licensed Territory, excluding any Know-How claimed in an issued Astellas Patent and the Astellas Collaboration Inventions. 

1.31 “Astellas Material Adverse Effect” has the meaning set forth in Exhibit 7. 

1.32 “Astellas Patents” means all Patents owned or Controlled by Astellas or its Affiliate [***]. 

1.33 “Astellas Retained Territory Pharmacology Study” has the meaning set forth in Section 4.3.2. 

1.34 “Astellas Retained Territory Preclinical Study” has the meaning set forth in Section 4.2.2. 

1.35 “Astellas Retained Territory Study” means an Astellas Retained Territory Pharmacology Study or Astellas Retained
Territory Preclinical Study, as applicable. 
 1.36 “Astellas Technology” means the Astellas Patents and Astellas Know-How. 
 1.37 “Astellas Withholding Tax Action” has the meaning set forth in
Section 9.9.5. 
 1.38 “[***]” and “[***]” have the respective meanings set forth in Section 9.6.1.1. 

1.39 “Business Day” means a day that is not a Saturday, Sunday, or a day on which banking institutions in Tokyo, Japan, or
San Francisco, California, U.S.A., are required by law to remain closed. 
 1.40 “Calendar Quarter” means each successive
period of three (3) consecutive calendar months ending on March 31, June 30, September 30, or December 31; provided, however that (a) the first Calendar Quarter of the Term shall extend from the Effective Date to the last
day of the Calendar Quarter in which the Effective Date falls; and (b) the last Calendar Quarter of the Term shall end upon the expiration or termination of this Agreement. 

  
 4 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

1.41 “Calendar Year” means each successive period of twelve (12) months commencing on January 1 and ending on
December 31; provided however, that (a) the first Calendar Year of the Term shall extend from the Effective Date to the last day of the Calendar Year in which the Effective Date falls; and (b) the last Calendar Year of the Term shall end
upon the expiration or termination of this Agreement. 
 1.42 “Challenge”, “Challenge
Notice”, “Challenged Party” and “Challenging Party” have the respective meanings set forth in Exhibit 7. 

1.43 “Claims” has the meaning set forth in Section 13.1. 

1.44 “Clinically Relevant Pro-Drug Form” means a
pro-drug which (a) is designed to overcome pharmacokinetic barriers to delivery of a parent compound, (b) is an inactive or less active form of the parent compound; and (c) is converted back to
the parent compound after the pharmacokinetic barrier is overcome. 
 1.45 “CMO” means a contract manufacturing
organization. 
 1.46 “Collaboration Invention” means any new Know-How developed or
acquired pursuant to this Agreement during the Term by or on behalf of either Party or the Parties jointly, or derived by or on behalf of a Party through use of the other Party’s Confidential Information. 

1.47 “Collaboration Patent” means any Patent that claims or covers a Collaboration Invention. 

1.48 “Combination Product” has the meaning set forth in Section 1.112 (Definition of Net Sales). 

1.49 “[***]” has the meaning set forth in Section 7.3.5. 

1.50 “Commercialization” means any and all activities undertaken before and after obtaining Regulatory Approval relating
specifically to the pre-launch, launch, promotion, marketing, sale, and distribution (including importing, exporting, transporting, customs clearance, warehousing, invoicing, handling, and delivering the
Product to customers) of the Product, including: (a) strategic marketing, sales force detailing, advertising, and market and product support within the Field; and (b) all customer support, invoicing and sales activities within the Field;
but excluding in all cases Medical Affairs Activities. “Commercialize” means to engage in Commercialization activities. 

1.51 “Commercialization Plan” has the meaning set forth in Section 6.2. 

1.52 “Commercially Reasonable Efforts” means, with respect to a Party in the performance of its obligations hereunder in
relation to Products, the application by or on behalf of such Party of a level of efforts that a similarly-situated pharmaceutical or biotechnology company, as the case may be, would apply to such activities in relation to a similar pharmaceutical
product 

  
 5 

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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

owned by it or to which it has exclusive rights, which product is at a similar stage in its development or product life and is of similar market potential and
strategic value (in each case as compared to the Product) taking into account efficacy, safety, expected labeling, the competitiveness of alternative products in the marketplace sold by Third Parties, the patent and other proprietary position of the
product, the likelihood of regulatory approval given the regulatory structure involved, the expected and actual profitability of the product including the royalties payable to licensors, and other relevant factors, based on conditions then
prevailing. “Commercially Reasonable Efforts” shall require that such Party: (a) assign responsibility for such obligations to qualified personnel, set annual goals and objectives for carrying out such obligations, and monitor and
hold personnel accountable for progress with respect to such goals and objectives; (b) set and seek to achieve specific objectives for carrying out such obligations; and (c) make and implement decisions and allocate resources (including
budgets) designed to diligently and in good faith advance progress with respect to such objectives, subject to the preceding sentence. For clarity, Astellas’ ceasing the Development of a Product in a country shall not be deemed to be the use of
Commercially Reasonable Efforts in such country. 
 1.53 “Compound” means (a) Rosiptor or (b) [***]. 

1.54 “Confidential Information” means all information of a confidential or proprietary nature disclosed by a Party to the
other Party under this Agreement, including any such information related to any scientific, clinical, engineering, manufacturing, marketing, financial, or personnel matters relating to a Party, or related to a Party’s present or future
products, sales, suppliers, customers, employees, investors, business plans, Know-How, regulatory filings, data, compounds, research projects, work in progress, future developments or business, in all such
cases whether disclosed in oral, written, graphic or electronic form, and whether or not specifically marked as confidential or proprietary, where under the circumstances in which such disclosure was made or given the nature of information
disclosed, a reasonable person would consider such information confidential; provided, however, that in any event, Confidential Information excludes any information that the receiving Party can show through competent evidence: (a) is known by
receiving Party at the time of disclosure, and not through a prior disclosure by or on behalf of the disclosing Party; (b) is or becomes properly in the public domain through no fault of the receiving Party; (c) is subsequently rightfully
disclosed to the receiving Party by a Third Party who is not directly or indirectly under an obligation of confidentiality to the disclosing Party; or (d) is developed by the receiving Party independently of, and without reference to or use of,
the information received from the disclosing Party. The terms and conditions of this Agreement and confidential information disclosed by either Party directly or through its Affiliates or other representatives to the other Party pursuant to the
Confidentiality Agreement shall be deemed as Confidential Information hereunder. 
 1.55 “Confidentiality Agreement” means
that certain Mutual Confidential Disclosure and Standstill Agreement between Aquinox Pharmaceuticals, Inc., the parent company of Aquinox, and Astellas Pharma Inc., the parent company of Astellas, effective as of August 10, 2016, as amended.

  
 6 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

1.56 “Control” means with respect to any Know-How, Patent, or other intellectual
property right, possession of the right, whether directly or indirectly, and whether by ownership, license, or otherwise, to grant a license, sublicense, or other right to or under, such Know-How, Patent, or
other intellectual property right as provided for herein without violating the terms of any agreement or other arrangements with any Third Party at the time when such license, sublicense, or other right is first granted hereunder, subject to
Section 2.11. 
 1.57 “Cover” means, with respect to a Patent and a product, such Patent would (absent a license
thereunder or ownership thereof) be infringed by the manufacture, use or sale of such product, provided, however, that in determining whether a claim of a pending Patent application would be infringed, it shall be treated as if issued in the form
then currently being prosecuted. Cognates of the word “Cover” shall have correlative meanings. 
 1.58 “CREATE
Act” has the meaning set forth in Section 10.4.8. 
 1.59 “CTD Database” means clinical trial disclosure
database, including ClinicalTrials.gov (https://clinicaltrials.gov/) which is managed by U.S. National Library of Medicine, and EudraCT (European Clinical Trials Database) (https://eudract.ema.europa.eu/) which is managed by EMA. 

1.60 “Data” means any and all scientific, technical, test, marketing, or sales data pertaining to any Product that is
generated by or on behalf of Aquinox or its Affiliates, or Astellas, its Affiliates, and Sublicensees, including research data, clinical pharmacology data, pre-clinical data, clinical data, clinical study
reports, or data pertaining to an IND or an MAA with respect to any Product. 
 1.61 “Development” means all development
activities for the Product that are directed to obtaining Regulatory Approval(s) of the Product, including all non-clinical, preclinical, and clinical testing and studies of the Product; toxicology,
pharmacokinetic, and pharmacological studies; statistical analyses; assay development; protocol design and development; the preparation, filing, and prosecution of any IND or MAA for the Product; development activities directed to label expansion
and/or obtaining Regulatory Approval for one or more additional indications following initial Regulatory Approval; development activities conducted after receipt of Regulatory Approval; and all regulatory affairs related to any of the foregoing.
“Develop” and “Developing” have correlative meanings. 
 1.62 “Development Costs” means,
with respect to any Development activities, all external costs incurred by or on behalf of either Party, as applicable, that are reasonably and directly allocable to the conduct of such activities and shall consist of
out-of-pocket costs actually incurred by each Party, including costs of Product or any comparator drug used in such activities, but specifically excluding overhead of
each Party. For clarity, Development Costs exclude FTE Costs. 
 1.63 “Development Plan” means the Joint Preclinical
Development Plan or Joint Clinical Development Plan, as applicable. 

  
 7 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

1.64 “Drug Product” means, for a given Product, bulk unlabeled product (i.e., not in final packaging or labeled for the final
market) comprising (a) the applicable Compound in its final dosage form for such Product and (b) the applicable delivery device, if any. 

1.65 “EMA” means the European Medicines Agency or any successor agency thereto. 

1.66 “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended, and the rules, regulations, and schedules
promulgated thereunder. 
 1.67 “Exchange Rate” means the thirty (30) day rolling average of exchange rates computed
as published by OANDA.com “The Currency Site” under the heading FxHistory: historical currency exchange rates” at www.OANDA.com/convert/fxhistory. 

1.68 “Executive Officers” means the Chief Executive Officer of Aquinox and any senior executive of Astellas who reports
directly to the Chief Executive Officer of Astellas. 
 1.69 “Expert” has the meaning set forth in Exhibit 7. 

1.70 “FDA” means the United States Food and Drug Administration or any successor agency thereto. 

1.71 “Field” means the prevention, diagnosis and/or treatment of all human diseases and conditions. 

1.72 “First Commercial Sale” means the first commercial sale under this Agreement by Astellas, its Affiliates, or its
Sublicensees of any Product to an end user or prescriber for use, consumption, or resale in the Licensed Territory after obtaining Regulatory Approval for such Product. For the avoidance of doubt, sales of Products to an Affiliate or Sublicensee of
Astellas shall not constitute a First Commercial Sale unless such Affiliate or Sublicensee is an end user or prescriber of the Product. 

1.73 “[***]” has the meaning set forth in the 4th item of the column in
Section 9.3.1. 
 1.74 “[***]” has the meaning set forth in 6th item of
the column in Section 9.3.1. 
 1.75 “[***]” has the meaning set forth in Section 9.3.1. 

1.76 “Indemnified Party” has the meaning set forth in Section 13.3. 

1.77 “Fiscal Quarter” means each successive period of three (3) consecutive calendar months ending on June 30,
September 30, December 31, or March 31; provided, however that (a) the first Fiscal Quarter of the Term shall extend from the Effective Date to the last day of the Fiscal Quarter in which the Effective Date falls; and (b) the
last Fiscal Quarter of the Term shall end upon the expiration or termination of this Agreement. 

  
 8 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

1.78 “Fiscal Year” means Astellas’ fiscal year, which runs from April 1 to March 31. 

1.79 “FTE” means eighteen hundred (1,800) hours of work per full Fiscal
Year (or equivalent pro-rata portion thereof for a period less than twelve (12) months). 

1.80 “FTE Cost” means, for any period, the FTE Rate multiplied by the number of FTEs in such period. 

1.81 “FTE Rate” means a rate of [***] per FTE per Fiscal Year (pro-rated for the
period beginning on the Effective Date and ending at the end of the first Fiscal Year). Such rate shall be adjusted annually, with each annual adjustment effective as of April 1 of each Fiscal Year (with the first such annual adjustment to be
made as of April 1, 2019) to correspond with the total percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the U.S. City Average,
1982-84 = 100, calculated by the U.S. Bureau of Labor Statistics over the twelve (12)-month period preceding each such January 1. 

1.82 “GAAP” means generally accepted accounting principles applicable to a Party in a particular country (e.g.,
Japanese Accounting Standards, IFRS, or U.S. Generally Accepted Accounting Principles) as consistently applied throughout the applicable periods indicated herein by or on behalf of the relevant Party. 

1.83 “Generic Product” means, with respect to a Product in a particular country, any pharmaceutical product that
(a) contains a Compound; (b) is approved by the Regulatory Authority in such country as a substitutable generic for such Product (for an indication for which such Product obtained Regulatory Approval from the applicable Regulatory
Authority in such country) on an expedited or abbreviated basis in a manner that relied on or incorporated data submitted by Astellas or its Affiliate or Sublicensee in connection with the Regulatory Approval for such Product in such country; and
(c) is sold in such country by a Third Party that is not a Sublicensee and did not purchase such product in a chain of distribution that included any of Astellas or its Affiliates or Sublicensees. 

1.84 “[***]” means [***] in the Licensed Territory, [***] for such Product ([***]), where “[***]” means the [***] (a)
Aquinox [***] for such Product (or a [***]) in [***] (as reasonably demonstrated by Aquinox), or (b) Astellas [***] for such Product in [***], in each case as determined in accordance with Sections [***]. For clarity, a [***] Astellas or its
Affiliates or Sublicensees [***] the Product shall be [***], regardless of whether such [***] as defined in this Agreement. A Product will be deemed to be [***] Product if both [***] where the [***] Product has at least the [***]. If the [***] will
be made on a [***]. 
 1.85 “Health Canada” means Canadian Health Canada or any successor agency thereto. 

  
 9 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

1.86 “IFRS” means International Financial Reporting Standards developed and maintained by an independent, not-for-profit organization called the International Accounting Standards Board (IASB). 

1.87 “IND” means an investigational new drug application filed with the FDA pursuant to 21 CFR 312.20, a clinical trial
notification filed with the PMDA, or a corresponding filing required for the clinical testing in humans of a pharmaceutical product. 
 1.88
“Indemnified Party” has the meaning set forth in Section 13.3. 
 1.89 “Indemnifying Party” has the
meaning set forth in Section 13.3. 
 1.90 “Initial Product” means the oral formulation of Rosiptor that (a) is
being Developed by Aquinox as of the Effective Date for the first Regulatory Approval in the Retained Territory for the Primary Indication or (b) will be Developed by Astellas following the Effective Date for the first Regulatory Approval in
the Licensed Territory for the Primary Indication. 
 1.91 “Issued Claim” has the meaning set forth in Section [***]. 

1.92 “Joint Clinical Development Plan” has the meaning set forth in Section 4.3.1. 

1.93 “Joint Development Plan” means the Joint Preclinical Development Plan or Joint Clinical Development Plan, as
applicable. 
 1.94 “Joint Invention” means a Collaboration Invention created, generated, conceived of or reduced to
practice jointly by or on behalf the Parties (or their respective Affiliates, agents or contractors). 
 1.95 “Joint Manufacturing
Plan” has the meaning set forth in Section 7.2 
 1.96 “Joint Patent” means a Patent that Covers a Joint
Invention. 
 1.97 “Joint Priority Patent” means a Joint Patent that claims priority to any Aquinox Patent existing as of
the Effective Date. 
 1.98 “Joint Preclinical Development Plan” has the meaning set forth in Section 4.2.1. 

1.99 “JPY” means Japanese yen. 

1.100 “JSC” has the meaning set forth in Section 3.1. 

1.101 “[***]” means any of the materials set forth in Exhibit 2. 

1.102 “Know-How” means any non-public
knowledge, experience, know-how, technology, information, and Data, trade secrets, formulas and formulations, processes, techniques, unpatented inventions, methods, discoveries, specifications, formulations,
compositions, materials, ideas, and developments, test procedures, and results, together with all documents and files embodying the foregoing, but excluding any issued Patents to the extent claiming any of the foregoing. 

  
 10 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

1.103 “LEADERSHIP 301 Study” means the clinical study of Rosiptor being conducted by Aquinox as of the Effective Date under
the protocol titled “The Leadership 301 Trial: A 12 week, randomized, multi-center, double-blind, place-controlled, 3-arm, parallel group, phase 3 trial to evaluate the efficacy and safety of two doses of
AQX-1125 targeting the SHIP1 pathway in subjects with Interstitial Cystitis/Bladder Pain Syndrome followed by an extension period”. 

1.104 “Licensed Territory” means Japan and the Other APAC Countries. 

1.105 “MAA” means a Marketing Authorization Application or equivalent application, and all amendments and supplements
thereto, filed with the applicable Regulatory Authority. 
 1.106 “Manufacture” and “Manufacturing” mean
activities directed to manufacturing, processing, filling, finishing, packaging, labeling, stability testing, quality control, quality assurance testing and release, post-marketing validation testing, inventory control and management, storing and
transporting any Product, including oversight and management of vendors therefor. 
 1.107 “Manufacturing Coordinator” has
the meaning set forth in Section 7.1. 
 1.108 “Manufacturing Cost” means, with respect to a particular Compound,
intermediate (including [***]) or Product (whether as active pharmaceutical ingredient, Drug Product or finished form) supplied by Aquinox pursuant to Section 7.3 or [***]: (a) (i) if Aquinox or its Affiliate Manufactures the applicable
Compound, intermediate (including a Key Material) or Product, [***]; or (ii) if a Third Party Manufactures such Compound, intermediate (including a Key Material) or Product, the [***] of such Compound, intermediate (including [***]) or Product
[***]; and (b) in each case, the external costs of insurance and transportation (including custom duties, tariffs, sales taxes, excise taxes and other governmental charges) for such Compound, intermediate (including [***]) or Product and FTE
Costs directly attributable to the Manufacture of such Product or [***]; provided in each case that there shall be no double-counting of any cost. Manufacturing Cost shall be calculated in a manner consistent with GAAP, consistently applied. 

1.109 “Manufacturing Responsibility Trigger” has the meaning set forth in Section 7.3.1. 

1.110 “Medical Affairs Activities” means: (a) the coordination of medical education and medical information requests and
field based medical liaisons in the Territory with respect to Products commercially launched in the Territory (including, symposia or similar events and medical advisory boards); and (b) those clinical studies conducted in or for the Territory
after Regulatory Approval of a Product has been obtained which are neither intended nor designed to support a Regulatory Filing including medical affairs studies, post marketing studies, and investigator and physician-initiated studies. 

1.111 “[***] Astellas Technology” means any Astellas Technology which is related to the [***] a Compound or Product,
including [***] ([***] any such Know-How to the extent [***] a Compound or Product other than a [***] such Compound or Product that [***] as of the Effective Date). 

  
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 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

1.112 “Net Sales” means with respect to any Product, the gross amounts invoiced by Astellas or its Affiliates or Sublicensees
to any Third Party for sales of Products in the Licensed Territory, less the following deductions, to the extent such deductions are actually paid, incurred, or otherwise taken, and are reasonable and customary: 

(a) credits, refunds, or allowances to Third Party customers for spoiled, damaged, rejected, recalled, outdated, and reasonably returned
Product; 
 (b) discounts, including cash, volume, quantity, and other trade discounts, charge-back payments, and rebates and allowances
actually granted, incurred, or allowed in the ordinary course of business, as well as government-required discounts and allowances (including government rebates and other price reductions), and other reductions, concessions, and allowances that
effectively reduce the selling price to Astellas or its Affiliates or Sublicensees; 
 (c) transportation charges, freight, postage, and
insurance (but only insurance related to protecting the particular shipment against physical loss or damage) if shown separately in the invoice; and 

(d) sales, use, or excise Taxes and import/export duties or tariffs and similar governmental charges due or incurred in connection with the
sales of such Product, if shown separately in the invoice. 
 Components of Net Sales shall be determined in the ordinary course of business
in accordance with GAAP, consistently applied. For purposes of determining when a sale of any Product occurs for purposes of calculating Net Sales, the sale will be deemed to occur on the date of Astellas’ shipment of the Product to the
customer or wholesaler. No deductions will be permitted for commissions paid to individuals or agents, nor for the cost of collections. For purposes of determining Net Sales, a “sale” shall not include transfers or dispositions, at no cost
or below cost, of Products for charitable, pre-clinical, clinical, or regulatory purposes, including for purposes of analytical testing, or for promotional samples or free goods. Amounts invoiced by Astellas
or its Affiliates or its Sublicensees for the sale of Products to or among such Affiliates or Sublicensees for resale shall not be included in the computation of Net Sales hereunder. 

In the event that Astellas sells a Product (a) to a Third Party in a bona fide arm’s length transaction, for material consideration,
in whole or in part, other than cash (but excluding, for the avoidance of doubt, consideration in the form of non-financial legal terms and conditions incident to sale), (b) to a Third Party in other than a
bona fide arm’s length transaction, or (c) with discounts of Products that are disproportional to the discounts of other products sold by Astellas in conjunction with such Products, the Net Sales price for such Product shall be deemed to
be the standard invoice price then being invoiced by Astellas in an arm’s length transaction with similar customers in the Territory. In the event that Astellas includes one or more Products as part of a bundle of products, the price for such
Product shall be deemed to be the standard invoice price for such Product when sold separately and not as part of a bundle of products. 

If a Product either is sold in the form of a combination product containing both a Compound and one or more active ingredient(s) as separate
molecular entity(ies) that are not Compounds (a 

  
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 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

“Combination Product”), the Net Sales of such Product for the purpose of calculating royalties and sales-based milestones owed under this
Agreement for sales of such Product, shall be determined as follows with respect to the country of sale: first, Astellas shall determine the actual Net Sales of such Combination Product (using the above provisions) in such country and then such
amount shall be multiplied by the fraction A/(A+B), where A is the invoice price of such Product in such country, if sold separately, and B is the total invoice price of other active ingredient(s) in such Combination Product in such country if sold
separately. If any other active ingredient in such Combination Product is not sold separately in such country, Net Sales shall be calculated by multiplying actual Net Sales of such Combination Product by a fraction A/C where A is the invoice price
of such Product in such country if sold separately, and C is the invoice price of such Combination Product in such country. If neither such Product nor any other active ingredient in such Combination Product is sold separately in such country, the
adjustment to Net Sales for such country shall be determined by the Parties in good faith to reasonably reflect the fair market value of the contribution of such Product in such Combination Product to the total fair market value of such Product.

 1.113 “NHI” means the national health insurance system in Japan, or its successor system. 

1.114 “[***]” means the [***] determined in accordance with Section 9.6.1.1, as may be adjusted pursuant to
Section 9.6.1.2. 
 1.115 “[***]” shall mean the [***] which is outlined in the [***] for the applicable Product. 

1.116 “[***] Astellas Technology” means [***] Astellas Technology [***] the [***] Astellas Technology. 

1.117 “Other APAC Countries” means Taiwan, South Korea, [***] Indonesia, [***] Malaysia, [***] Australia [***]. 

1.118 “[***]” means the [***] other than the [***]. 

1.119 “Patents” means (a) pending patent applications, issued patents, utility models and designs; (b) reissues,
substitutions, confirmations, registrations, validations, re-examinations, additions, continuations, continued prosecution applications,
continuations-in-part, or divisions of or to any patents, patent applications, utility models or designs; and (c) the equivalent or counterpart of the foregoing.

 1.120 “Person” means any individual, corporation, association, partnership (general or limited), joint venture, trust,
estate, limited liability company, limited liability partnership, unincorporated organization, government (or any agency or political subdivision thereof) or other legal entity or organization. 

  
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 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

1.121 “Phase 1 Clinical Trial” means a human clinical trial performed in accordance with the Applicable Laws in the Territory
that provides for the first introduction of a Product into humans for the purpose of determining human tolerability, metabolism, biomarker, absorption, elimination and other pharmacological action. 

1.122 “Phase 2 Clinical Trial” means a human clinical trial performed in accordance with the Applicable Laws in patients with
a particular disease or condition which is designed to assess the safety, initial measures of efficacy, and tolerability of a Product given its intended use and to initially explore its efficacy for such disease or condition. 

1.123 “Phase 2b Clinical Trial” means a human clinical trial performed in accordance with the Applicable Laws in patients
with a particular disease or condition which is designed to assess the safety, dose ranging and efficacy of a pharmaceutical product to confirm clinical efficacy of a drug and determine the therapeutic dose range and may include such a clinical
trial intended to be a Pivotal Trial. Any Phase 2 Clinical Trial of a Product in an indication that is the second Phase 2 Clinical Trial of such Product in such indication shall be deemed to be a Phase 2b Clinical Trial. 

1.124 “Phase 3 Clinical Trial” means a large-scale human clinical trial, which may be a Pivotal Trial, performed in
accordance with the Applicable Laws and conducted in subjects with a particular disease or condition which is designed in a controlled fashion to confirm the efficacy and safety of a Product given its intended use and to define warnings,
precautions, and adverse events that are associated with Product in the dosage range intended to be prescribed. 
 1.125 “Pivotal
Trial” means a clinical trial that is intended to be a basis of Regulatory Approval by the applicable Regulatory Authority and to provide an adequate basis for physician labeling, as described in 21 C.F.R. 312.21(c), as amended from time to
time, or the corresponding regulations in jurisdictions other than the United States. 
 1.126 “Plan” means a Joint
Preclinical Development Plan, Joint Clinical Development Plan, Joint Manufacturing Plan, Joint Medical Affairs Plan or Commercialization Plan, as applicable. 

1.127 “PMDA” means the Japanese Pharmaceuticals and Medical Devices Agency, or any successor agency thereto. 

1.128 “Pricing Approval” means the approval, agreement, determination or governmental decision establishing the cumulative
price for the Product to be paid by the applicable insurance provider and the individual end-consumer or patient. 

1.129 “Primary Indication” means the prevention, diagnosis and/or treatment of IC/BPS, [***] in human. 

1.130 “Product” means any pharmaceutical product consisting of or containing a Compound(s) in any dosage form or formulation
or mode of administration alone or in combination with one or more other therapeutically active ingredients. 
 1.131 “Product
Infringement” has the meaning set forth in Section 10.6.2. 

  
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 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

1.132 “Product Trademark” means trademark (including domain name), tradename, servicemark, symbol mark (device), catchphrase,
etc. for use in connection with Commercialization of Product, but excluding all Aquinox Housemarks. 
 1.133 “Regulatory
Approval” means any approval, product and establishment license, registration, or authorization, including pricing approvals and reimbursement approvals, of any Regulatory Authority required for the manufacture, use, storage, import,
transport, or Commercialization of a Product in accordance with Applicable Laws, including Pricing Approval. 
 1.134 “Regulatory
Authority” means any applicable government regulatory authority involved in granting approvals for the manufacture, Commercialization, reimbursement, and/or pricing of a Compound or Product. 

1.135 “Regulatory Exclusivity” means any exclusive marketing rights or data exclusivity rights conferred by any Regulatory
Authority with respect to a pharmaceutical product other than Patents, including orphan drug exclusivity, new chemical entity exclusivity, data exclusivity, or pediatric exclusivity. 

1.136 “Regulatory Filings” means all documentation, correspondence, submissions, and notifications submitted to or received
from a Regulatory Authority that are necessary or reasonably useful in order to Develop or Commercialize the Product in the Field. For the avoidance of doubt, Regulatory Filings include, with respect to each Product, all INDs, MAAs, Regulatory
Approvals, and amendments and supplements of any of the foregoing, as well as the contents of any minutes from meetings (whether in person or by audio conference or videoconference) and any material written communications with a Regulatory
Authority. 
 1.137 “Responding Party” has the meaning set forth in Section 11.3.1. 

1.138 “Retained Territory” means the Territory other than the Licensed Territory. 

1.139 “Rosiptor” means the compound having the chemical structure set forth in Exhibit 3. 

1.140 “Royalty Term” has the meaning set forth in Section 9.4.4. 

1.141 “SEC” has the meaning set forth in Section 11.4.3. 

1.142 “Specified Countries” means Japan, South Korea, Taiwan and Australia. 

1.143 “Step-In Rights” has the meaning set forth in Section 10.4.5. 

1.144 “Sublicensee” means either a Third Party or an Affiliate of Astellas, in each case which is granted a sublicense by
Astellas to any of the Aquinox Technology pursuant to Section 2.2. 
 1.145 “Submitting Party” has the meaning set
forth in Section 11.3.1. 

  
 15 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

1.146 “Tax” or “Taxes” means (a) any taxes, assessments, fees, including income, profits, gross
receipts, net proceeds, sales, alternative or add on minimum, ad valorem, turnover, property, personal property (tangible and intangible), environmental, stamp, leasing, lease, user, duty, franchise, capital stock, transfer, registration, license,
withholding, social security (or similar), unemployment, disability, payroll, employment, social contributions, fuel, excess profits, occupational, premium, windfall profit, severance, estimated, or other charge of any kind whatsoever, including any
interest, penalty, or addition thereto, whether disputed or not and (b) any liability for the payment of any amounts of the type described in clause (a) as a result of the operation of law or any express obligation to indemnify any other
person. 
 1.147 “Tax Residence Certificate” has the meaning set forth in Section 9.9.3. 

1.148 “Technology Transfer Completion” and “Technology Transfer Plan” have the respective meanings set forth
in Section 7.4. 
 1.149 “Term” has the meaning set forth in Section 14.1. 

1.150 “Territory” means all countries in the world. 

1.151 “Third Party” means a Person other than Astellas, Aquinox, or their respective Affiliates. 

1.152 “Third Party Offer” has the meaning set forth in Section 2.14.1. 

1.153 “Third Party Partner” means one or more Third Party licensees or joint venturers, to whom Aquinox grants rights for
development and commercialization of the Product in the Aquinox Territory. 
 1.154 “Trademark License” has the meaning set
forth in Section 2.13.1. 
 1.155 “Valid Claim” means: (a) a claim of an issued and unexpired Patent included
within the Aquinox Patents, which has not been permanently revoked or declared unenforceable or invalid by an unreversed and unappealable or unreversed and unappealed decision of a court or other appropriate body of competent jurisdiction; or
(b) a claim of a pending patent application included within the Aquinox Patents, which claim has not been abandoned or finally disallowed without the possibility of appeal or refiling of such application, provided that no more than [***] years
has passed from the filing date of such patent application and provided further that upon the issuance of a claim that has been pending for more than [***] years, such claim shall again be deemed to be a Valid Claim; and, in each case of case
(a) and (b) that Covers a Product. 
 ARTICLE II 

LICENSES; [***] 
 2.1
License Grants to Astellas. Subject to the terms and conditions of this Agreement, Aquinox hereby grants to Astellas: 

  
 16 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

2.1.1 an exclusive (even as to Aquinox and its Affiliates, subject to Aquinox’s retained rights described below) royalty-bearing license,
with the right to sublicense in accordance with Section 2.2, under the Aquinox Technology, solely to: 
 2.1.1.1 use, research,
Develop, Commercialize, import, export and otherwise exploit the Compounds and Products in the Field in the Licensed Territory; and 

2.1.1.2 subject to Section 7.5, Manufacture and have Manufactured the Compounds and Products in the Licensed Territory solely: 

(a) for use and sale in the Field in the Licensed Territory, and 

(b) to conduct Astellas Retained Territory Studies; 

2.1.2 subject to Section 7.5, a non-exclusive, royalty-bearing license under the Aquinox
Technology, with the right to sublicense in accordance with Section 2.2, to Manufacture and have Manufactured Compounds and Products in the Retained Territory solely: 

2.1.2.1 for use and sale in the Field in the Licensed Territory, and 

2.1.2.2 to conduct Astellas Retained Territory Studies; and 

2.1.3 a non-exclusive, royalty-bearing license under the Aquinox Technology, with the right to
sublicense in accordance with Section 2.2, to use, import and export the Compounds and Products in the Retained Territory solely to conduct Astellas Retained Territory Studies. 

2.2 Sublicensing by Astellas. Subject to the terms and conditions of this Agreement, Astellas shall have the right to sublicense
the rights granted to it under Section 2.1 to: 
 2.2.1 any of its Affiliates with prior written notice to Aquinox; provided that
(a) such Affiliate agrees in writing to comply with the terms and conditions of this Agreement that are applicable to such Affiliate’s activities under such sublicense; and (b) Astellas remains fully liable for the performance of such
Affiliate in accordance with this Agreement. Any sublicense granted by Astellas to one of its Affiliates shall terminate if such entity is no longer an Affiliate of Astellas and Aquinox’s approval is not obtained for the continuation of such
sublicense in accordance with subsection 2.2.2 below; and 
 2.2.2 Third Parties with prior written notice to Aquinox, provided that
(a) such Sublicensee agrees in writing to comply with the term and conditions of this Agreement that are applicable to such Sublicensee’s activities under such sublicense; and (b) Astellas remains fully liable for the performance of
such Sublicensee in accordance with this Agreement. 
 Astellas will provide Aquinox with a copy of each agreement pursuant to which a sublicense is granted
pursuant to this Section 2.2.2, from which Astellas may redact any terms unrelated to this Agreement. 

  
 17 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

2.3 Aquinox Retained Rights. Aquinox hereby expressly retains, for itself and its Affiliates and licensees: 

2.3.1 the rights under the Aquinox Technology to exercise its rights and perform its obligations under this Agreement, whether directly or
through one or more Affiliates or licensees (other than Astellas) or subcontractors; 
 2.3.2 the rights to Manufacture and have Manufacture
the Compounds and Products in the Licensed Territory solely for use and sale in the Retained Territory; 
 2.3.3 the rights to conduct one
or more preclinical studies for the Compounds and Products in the Licensed Territory solely for use in the Retained Territory, [***] (each such [***] study, an “Aquinox Licensed Territory Preclinical Study”). For clarity, such
[***]. Such Aquinox Licensed Territory Preclinical Study shall be added to the applicable Joint Preclinical Development Plan [***]; and 

2.3.4 all rights to practice, and to grant licenses, under the Aquinox Technology outside of the scope of the licenses granted in
Section 2.1, and the exclusive right to practice the Aquinox Patents and Aquinox Know-How worldwide with respect to compounds and products other than the Compounds and Products. 

2.4 Licenses to Aquinox. Astellas hereby grants to Aquinox, subject to the terms and conditions of this Agreement: 

2.4.1 an exclusive (even as to Astellas and its Affiliates, subject to Astellas’ retained rights described below), fully paid-up license, with the right to sublicense, under the Astellas Collaboration Technology solely to: 

2.4.1.1 use, research, Develop, Commercialize, import, export and otherwise exploit the Compounds and the Products in the Retained Territory;
and 
 2.4.1.2 Manufacture and have Manufactured the Compounds and Products in the Retained Territory solely: 

(a) for use and sale in the Retained Territory, and 

(b) to conduct Aquinox Licensed Territory Preclinical Studies; 

2.4.2 a non-exclusive, fully paid-up license under the
Astellas Collaboration Technology, with the right to sublicense, to Manufacture and have Manufactured Compounds and Products in the Licensed Territory solely: 

2.4.2.1 for use and sale in the Field in the Retained Territory, and 

2.4.2.2 to conduct Aquinox Licensed Territory Preclinical Studies; and 

  
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 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

2.4.3 a non-exclusive fully paid-up license, with the right to
sublicense, under the Astellas Collaboration Technology and the Necessary Astellas Technology to use, import and export the Compounds and Products in the Licensed Territory solely to conduct Aquinox Licensed Territory Preclinical Studies; 

2.4.4 a non-exclusive fully paid-up license, with the right to
sublicense, under the Necessary Astellas Technology to Manufacture and have Manufactured Compounds and Products in the Licensed Territory solely: 

2.4.4.1 for use and sale in the Retained Territory, and 

2.4.4.2 to conduct Aquinox Licensed Territory Preclinical Studies. 

2.5 Astellas Retained Rights. Astellas hereby expressly retains, for itself and its Affiliates and licensees: 

2.5.1 the rights under the Astellas Collaboration Technology to exercise its rights and perform its obligations under this Agreement, whether
directly or through one or more Affiliates or licensees (other than Aquinox) or subcontractors; 
 2.5.2 subject to Section 7.5, the
rights to Manufacture and have Manufacture the Compounds and Products in the Retained Territory solely for use and sale in the Licensed Territory; and 

2.5.3 subject to Section 4.2.2., the rights to conduct Astellas Retained Territory Studies in the Retained Territory. 

2.6 [***] Technology. Upon [***] request, [***] shall discuss in good faith mutually agreeable terms upon which [***] would grant to
[***] a license under the [***] solely to [***], in each case in or for the [***]. 
 2.7 No Implied License. Neither Party grants to
the other Party any rights or licenses in or to any intellectual property, whether by implication, estoppel, or otherwise, other than the license rights that are expressly granted under this Agreement. 

2.8 Astellas Covenants. 

2.8.1 Astellas covenants that, during the Term, it will not practice any Aquinox Technology outside the scope of the licenses expressly granted
by Section 2.1. All Know-How and materials disclosed or provided under this Agreement by or on behalf of Aquinox shall be used by Astellas solely for the purposes of exercising the licenses and rights
expressly granted herein. 
 2.8.2 Astellas covenants that, during the Term, it will not and will cause its Affiliates and Sublicensees not
to (a) Develop any Product in the Retained Territory, except as expressly permitted hereunder, (b) Commercialize any Product in the Retained Territory, or (c) knowingly assist any Third Party in undertaking any activity described in
subclause (a) or (b) above. 

  
 19 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

2.9 Aquinox Covenants. 

2.9.1 Aquinox hereby covenants that, during the Term, it will not practice any Astellas Technology or Astellas Collaboration Technology that is
outside the scope of the license expressly granted by Section 2.4. All Know-How or materials disclosed or provided under this Agreement by or on behalf of Astellas shall be used by Aquinox solely for the
purposes of exercising the licenses and rights expressly granted herein. 
 2.9.2 Aquinox covenants that, during the Term, it will not and
will cause its Affiliates and Sublicensees not to (a) Develop any Product in the Licensed Territory, except as expressly permitted hereunder, (b) Commercialize any Product in the Licensed Territory, or (c) knowingly assist any Third
Party in undertaking any activity described in subclause (a) or (b) above. 
 2.10 Existing Intellectual Property. Each Party
shall be solely responsible for any and all amounts due to any Third Party under any agreement entered into by and between such Party or its Affiliates and such Third Party prior to the Effective Date relating to such Party’s and its
Affiliates’ intellectual property. 
 2.11 New Intellectual Property. 

2.11.1 Any intellectual property acquired or licensed by a Party following the Effective Date and during the Term that would be subject to a
license set forth above and for which the Party granting such license under this Agreement (or any of its Affiliates) would be obligated to pay a Third Party due to the other Party’s use of such intellectual property or the use of which would
be subject to terms and conditions additional to those set forth in this Agreement shall only be included in such license if such other Party agrees in writing to pay such amounts due to such Third Party (with any amounts due such Third Party due to
the activities of both Parties to be shared on a pro rata basis based on the contribution of each Party’s activities to such payments, for example, as a proportion of sales in the respective territories) and/or comply with such terms and
conditions, as applicable. The Party acquiring or licensing such intellectual property shall notify the other Party in writing within [***] days of acquiring or licensing such intellectual property, which notice shall specify the applicable terms
and conditions, including any payments therefor. With respect to any payments that are not territory specific (e.g., milestone payments that are payable upon the first product to achieve the applicable milestone event), the Party providing such
notice shall propose an equitable allocation of such payments and the Parties will discuss in good faith the rationale of including the new intellectual property rights in the licenses hereunder and the proposed payment allocation. For clarity, this
Section 2.11.1 [***]. 
 2.11.2 Should either Party identify during the Term any intellectual property of a Third Party that is
necessary or useful for the manufacture, use or sale of a Compound or Product, such Party promptly shall notify the JSC thereof. [***] shall have [***] such intellectual property; provided that (a) [***] shall provide [***] a reasonable [***] on the
[***] applicable to [***] to the [***] thereof, and (b) the [***] that are applicable [***] Territory shall be [***] that are applicable [***] Territory. 

  
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2.12 Rights in Bankruptcy. All rights and licenses granted under or pursuant to this Agreement by either Party are, and shall otherwise
be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of right to “intellectual property” as defined under Section 101 of the U.S. Bankruptcy Code. The Parties agree that each Party, as licensee of
rights under this Agreement, shall retain and may fully exercise all of its rights and elections under the U.S. Bankruptcy Code or any comparable foreign law. 

2.13 Trademark Licenses. 

2.13.1 Aquinox hereby grants to Astellas an exclusive (even as to Aquinox) license to use the Aquinox Housemarks solely in connection with
Astellas’ exercise of the license granted to it pursuant to Section 2.1.1 above, including the limited right to sublicense to Sublicensees as set forth in Section 2.2. Astellas will use the Aquinox Housemarks (a) solely in the
manner specified in this Agreement in connection with Products and not for any other goods or services, and (b) only in the form and manner as reasonably prescribed in writing to Astellas in advance from time to time by Aquinox (provided,
however, that Astellas shall have a reasonable period of time to modify any of its promotional, marketing, regulatory, or other practices, including in light of Applicable Laws, as may be reasonably necessary to comply with any such form and manner
prescriptions or any changes thereto). Without limiting the foregoing, any use by Astellas of a Aquinox Housemark for a Product should be accompanied by a trademark notice that states that such Aquinox Housemark is a trademark (or a registered
trademark, if applicable) of Aquinox. Any use by Astellas of the Aquinox Housemarks, and Aquinox’s maintenance of the Aquinox Housemarks, shall be in compliance with all Applicable Laws, including those relating to the licensing of trademarks,
in the Licensed Territory. Astellas and Aquinox agree to promptly correct any failure to comply with this Section 2.13.1. For the avoidance of doubt, Astellas shall have no responsibility or obligation for (and Aquinox shall be solely
responsible for) the filing, maintenance, registration, prosecution, and enforcement of the Aquinox Housemarks, which shall be at Aquinox’s sole cost and expense. 

2.13.2 Astellas acknowledges Aquinox’s ownership of all right, title, and interest in and to the Aquinox Housemarks, and agrees that it
will do nothing inconsistent with such ownership, that all use of the Aquinox Housemarks by Astellas will inure to the benefit of and be on behalf of Aquinox, and that any goodwill associated with the use of any Aquinox Housemark by Astellas will
inure to the benefit of Aquinox. Astellas agrees that nothing in this Agreement will give Astellas any right, title, or interest in the Aquinox Housemarks other than the right to use the Aquinox Housemarks in accordance with this Agreement. Anything
in this Agreement to the contrary notwithstanding, if by virtue of Astellas’ use of the Aquinox Housemarks, Astellas acquires any equity, title, or other rights in or to the Aquinox Housemarks, Astellas hereby agrees all such equity, title, or
other rights in or to the Aquinox Housemark belong to Aquinox upon creation of the value, and Astellas agrees to and hereby does assign and transfer any such Aquinox Housemark rights to Aquinox. Astellas agrees not to use or file any application to
register any trademark or trade name that is confusingly similar to any Aquinox Housemark. 

  
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2.14 [***]. 
 2.14.1
[***]. Aquinox [***] Astellas [***] in the Licensed Territory [***] for the [***], as follows: If [***] determines to [***] or if, [***] to such [***] Aquinox [***] in the Licensed Territory [***], then [***] shall provide written notice
thereof and reasonably [***] (including the [***]) to [***] (the “[***]”). If, within [***] Business Days following [***] receipt of the [***], or [***] Business Days following [***] receipt of the [***] in the case of a [***] (each, the
“[***]”), [***] provides [***] with written notice that [***] wishes to [***], then for [***] days following [***] receipt of the [***], or [***] days following [***] receipt of the [***] in the case of a [***] (each, the
“[***]”), the Parties shall [***]. Neither Party shall [***] as are [***] to such Party [***]. If [***] does not [***] with the [***], or if [***] with the [***] and the Parties have [***] into a [***] for the [***] by [***], then [***]
obligations and [***] with respect to [***]. 
 2.14.2 [***]. Aquinox [***] Astellas [***] the Effective Date and [***] (the
“[***]”, provided that either Party may [***] the other Party) [***] one or more [***] Compounds and Products [***] Territory other than the [***]. At [***] written request, the Parties shall [***] for such [***] Territory [***] and
reasonably detailed [***] of the Products, and [***] shall have [***] and [***] shall have [***] under this Section 2.13.2. 
 2.15
[***]. 
 2.15.1 [***]. During the Term, [***] shall [***], and shall cause its Affiliates and its licensees [***] 

  
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in the Field [***] the Compounds [***] for which [***]. “[***]” means a [***] which has not been [***] of a [***]. For clarity, this Section 2.15.1
shall not apply with respect to any [***] with respect to which [***] pursuant to Section [***]. 
 2.15.2 [***]. During the Term,
[***] shall [***], and shall cause its Affiliates and its licensees [***] in the Territory [***]. 
 ARTICLE III 

GOVERNANCE 
 3.1 JSC;
Formation and Purpose. Within thirty (30) days of the Effective Date, the Parties will establish a joint steering committee (the “JSC”) to provide strategic oversight and facilitate communication with respect to the
Development, and Commercialization of Products under this Agreement. Except as otherwise provided herein, the role of the JSC will be to: 

3.1.1 coordinate the management and implementation of the Parties’ Development, Commercialization and Medical Affairs activities under
this Agreement; 
 3.1.2 review, coordinate, discuss, and approve the overall strategy for seeking Regulatory Approval of the Products in
the Field in the Territory; 
 3.1.3 review and oversee the Joint Development Plans, including any amendments or revisions thereto; 

3.1.4 review, approve and oversee the Joint Manufacturing Plan and Joint Medical Affairs Plan, and in each case, any amendments or revisions
thereto; 
 3.1.5 review and coordinate forecasting of Astellas’ expected requirements for Compounds and Products under the Joint
Manufacturing Plan; 
 3.1.6 create and oversee any subcommittees or working groups as the JSC may deem appropriate; 

3.1.7 address any issues expressly delegated to the JSC under this Agreement; and 

3.1.8 consult and coordinate with respect to Product Development and Commercialization in the Retained Territory. 

3.2 Membership and Procedures. 

  
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3.2.1 Membership. Promptly after the Effective Date, each Party’s Executive Officer will designate [***] representatives with
appropriate expertise to serve as members of the JSC. The Parties may elect to vary the number of representatives that serve on the JSC, provided that in all cases the JSC maintains an equal number of representatives from each Party. Each Party,
through its Executive Officer, may replace its representatives on the JSC at any time upon written notice to the other Party. 
 3.2.2
Chairperson; Minutes. One member of the JSC will serve as the chairperson, by itself or its designated person, who will be responsible for organizing meetings, preparing and circulating an agenda in advance of each meeting, and preparing
minutes of each meeting. Each JSC representative shall review and approve such minutes in writing; provided that if a representative does not object to the accuracy of such minutes within [***] days after the circulation of such minutes, such
minutes shall be deemed approved by such representative. Aquinox will appoint the chairperson for an initial [***] term and thereafter the Parties will alternate in appointing the chairperson for [***] terms. 

3.2.3 Meetings. Until the first MAA for Product is approved in the Licensed Territory, the JSC will hold meetings on a [***] basis.
Thereafter, the JSC will hold meetings at least [***] (i.e., approximately every [***] months), or more frequently as the Parties may agree. Meetings of the JSC shall be effective only if at least one (1) representative of each Party is present
or participating. The JSC may meet (a) in person at either Party’s facilities or at such locations as the Parties may otherwise agree, (b) by audio or video teleconference or (c) by e-mail
(solely in the case of ad-hoc JSC meetings), provided that at least [***] per Calendar Year shall be held in person with the location to alternate between Aquinox’s and Astellas’ offices, with the
first such meeting to be held at Aquinox’s offices. With the prior consent of the other Party’s representatives (such consent not to be unreasonably withheld or delayed), each Party may invite
non-members to participate in the discussions and meetings of the JSC, provided that such participants shall have no vote and shall be subject to the confidentiality provisions set forth in Article XI.
Additional meetings of the JSC may also be held with the consent of each Party, or as required under this Agreement, and neither Party will unreasonably withhold, delay or condition its consent to hold such an additional meeting. 

3.2.4 Limitation of Authority. The JSC and its subcommittees will have only such powers as are specifically delegated to it hereunder
and will not be a substitute for the rights of the Parties. Without limiting the generality of the foregoing, neither the JSC nor any of its subcommittees will have any power to amend this Agreement, waive compliance with any obligation hereunder or
determine whether any breach hereunder has occurred. For clarity, the JSC does not have the authority to commit Aquinox to conduct or complete any activity of Aquinox or its Affiliates or licensees set forth in any Plan, which activities are
included for informational purposes only. Aquinox shall only have diligence obligations (which shall be limited to the use of Commercially Reasonable Efforts) for those activities that are expressly agreed in writing as being subject to such
diligence obligations by its Executive Officer or his or her designee. 
 3.3 Decision-Making. 

3.3.1 The JSC will make good faith efforts to make all decisions on matters before it by consensus. Subject to the terms of this
Section 3.3, actions to be taken by the JSC shall be 

  
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taken only following a unanimous vote, with each Party’s representatives collectively having one (1) vote. If the JSC fails to reach unanimous
consent on a particular matter within [***] days of such request), then either Party may submit such matter for resolution to the Executive Officers pursuant to Section 15.2. 

3.3.2 If the JSC is unable to reach a decision by unanimous vote pursuant to Section 3.3.1 and the Executive Officers cannot unanimously
agree on such matter within [***] days of such matter being submitted to them pursuant to Section 3.3.1 (or, if such matter is urgent, within [***] days of such request), then the Party listed below shall have the final say on the following
matters: 
 3.3.2.1 [***]; and 

3.3.2.2 [***] 
 3.3.3 Any
dispute under Section 3.3.2.1 or 3.3.2.2 as to whether a Party’s decision would have a “material adverse effect” as described in such Section shall be subject to Section 15.4. 

3.3.4 Neither Party shall have the right to use its deciding vote under Section 3.3.2 to require the other Party to undertake activities
or costs other than those that have been expressly agreed to in writing by such Party. 
 3.4 Expenses. Each Party will be
responsible for all of its own travel and other costs and expenses for its respective members, designees, and non-member invitees to attend meetings of, and otherwise participate on, the JSC and any
subcommittees or working groups. 
 3.5 Alliance Managers. Promptly after the Effective Date, each Party shall appoint an individual
who shall be an employee of such Party having appropriate qualification and experience to act as the alliance manager for such Party (the “Alliance Manager”). Each Alliance Manager shall be responsible for coordinating and managing
processes and interfacing between the Parties on a day-to-day basis throughout the Term. The Alliance Manager will ensure communication to the JSC of all relevant
matters raised at any joint subcommittees or working groups. Each Alliance Manager shall be permitted to attend meetings of the JSC as a non-voting participant. The Alliance Managers shall be the primary
contact for the Parties regarding the activities contemplated by this Agreement and shall facilitate all such activities hereunder. Each Party may replace its Alliance 

  
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Manager with an alternative representative at any time with prior written notice to the other Party. Any Alliance Manager may designate a substitute to
temporarily perform the functions of that Alliance Manager. Each Alliance Manager shall be charged with creating and maintaining a collaborative work environment within the JSC and its subcommittees. Each Party will be responsible for all of its own
costs with respect to its Alliance Manager. 
 3.6 Discontinuation of the JSC. The activities to be performed by the JSC shall solely
relate to governance under this Agreement, and are not intended to be or involve the delivery of services. The JSC shall continue to exist until (a) the Parties mutually agree to disband the JSC, or (b) Aquinox provides written notice to
Astellas of its intention to disband and no longer participate in the JSC. Once the Parties mutually agree or Aquinox has provided written notice to disband the JSC, the JSC shall have no further obligations under this Agreement and, thereafter,
each Party shall designate a contact person for the exchange of information under this Agreement or such exchange of information shall be made through the Alliance Managers, and decisions of the JSC shall be decisions as between the Parties, subject
to the other terms and conditions of this Agreement. In the event the JSC is disbanded as provided above, any decisions that are designated under this Agreement as being subject to the review or approval of the JSC shall be subject to the review and
approval of the Parties directly. 
 ARTICLE IV 

DEVELOPMENT 
 4.1
General. 
 4.1.1 Astellas shall use Commercially Reasonable Efforts to Develop the Compounds and Products and obtain Regulatory
Approval for the Products in each country in the Field in the Licensed Territory, including the Initial Product for the Primary Indication. Without limiting the generality of the foregoing, Astellas shall use Commercially Reasonable Efforts to
conduct its activities under and in accordance with the Development Plans. 
 4.1.2 Astellas shall provide regular updates to the JSC
regarding the Development of Compounds and Products in the Licensed Territory. Aquinox shall provide regular updates to the JSC regarding the Development of Compounds and Products in the Retained Territory, subject to its obligations to its
licensees with respect to Data other than safety Data. 
 4.1.3 If Aquinox reasonably and in good faith believes that Astellas is not using
Commercially Reasonable Efforts, taken as a whole, to Develop a particular Product in a Specified Country, then Aquinox may provide Astellas written notice thereof. Within [***] Business Days of Astellas’ receipt of such
notice, Astellas shall provide to Aquinox documentation demonstrating Astellas’ use of Commercially Reasonable Efforts with respect to such Product in accordance with Section 1.52 (a), (b) and (c) (Definition of Commercially Reasonable
Efforts). Astellas shall also provide such additional information regarding such Development as Aquinox may reasonably request, including the opportunity to speak with senior personnel responsible for such Development of such Product. If requested
in writing by Aquinox, within [***] Business Days of such request, a JSC meeting shall be held in person or by videoconference to discuss such documentation and to answer questions or concerns reasonably posed by Aquinox regarding such Development.
For clarity, Aquinox’s exercise of its rights under this Section 4.1.3 shall not waive any right or remedy of Aquinox hereunder, including under Section 14.3, or any obligation of Astellas hereunder. 

  
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4.2 Preclinical Development. 

4.2.1 All material activities that are required for the preclinical Development of a Product for Licensed Territory shall be conducted pursuant
to a “Joint Preclinical Development Plan”, containing: (a) with respect to Astellas, anticipated timelines, strategy and specific commitments of Astellas to preclinically Develop such Product in or for the Licensed Territory,
which activities Astellas shall use Commercially Reasonable Efforts to conduct; and (b) with respect to Aquinox and subject to Aquinox’s obligations to its licensees in the Retained Territory, anticipated timelines and strategy of Aquinox
to preclinically Develop such Product in or for the Retained Territory (which information shall be provided solely for purposes of facilitating coordination between the Parties, except as set forth in Section 3.2.4). The Parties shall jointly
prepare a draft Joint Preclinical Development Plan (subject to subclause (b) above) for each Product Developed hereunder, including the Initial Product, and submit it to the JSC for review. 

4.2.2 If Astellas reasonably decides that a preclinical study of a Product will be necessary solely for Regulatory Approval in the Licensed
Territory, Astellas may conduct such preclinical study at its sole expense by itself or through its Affiliates or subcontractors in the Territory, [***] (each such [***] study, an “Astellas Retained Territory Preclinical Study”).
For clarity, such [***]. Such study shall be added to the Joint Preclinical Development Plan [***]. 
 4.2.3 Each Party shall report on the
planning, status and results of its activities under each Joint Preclinical Development Plan through the JSC and/or any applicable subcommittee or working group established the JSC. 

4.2.4 With respect to the Initial Product, Astellas shall be responsible for costs incurred under the Joint Preclinical Development Plan that
solely relate to obtaining Regulatory Approval in the Licensed Territory, and Aquinox shall be responsible for [***] costs incurred under the Joint Preclinical Development Plan. With respect to any Product other than the Initial Product, the Parties
shall agree in writing on the sharing of costs, if any, under the applicable Joint Preclinical Development Plan. 
 4.3 Clinical
Development. 
 4.3.1 All material activities that are required for the clinical Development of a Product for the Licensed Territory
shall be conducted pursuant to a “Joint Clinical Development Plan”, containing: (a) with respect to Astellas, anticipated timelines, strategy and specific commitments of Astellas to clinically Develop such Product in or for the
Licensed Territory, which activities Astellas shall use Commercially Reasonable Efforts to conduct; and (b) with respect to Aquinox and subject to Aquinox’s obligations to its licensees in the Retained Territory, anticipated timelines and
strategy of Aquinox to clinically Develop such Product in or for the Retained 

  
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Territory (which information shall be provided solely for purposes of facilitating coordination between the Parties, except as set forth in Sections 3.2.4 and
4.4). For each Product Developed hereunder, including the Initial Product, the Parties shall jointly prepare a draft Joint Clinical Development Plan (subject to subclause (b) above) and submit it to the JSC for review. 

4.3.2 Except as expressly agreed otherwise in writing, Aquinox (and its Affiliates and licensees) shall have the sole right to conduct
clinical trials of the Products in the Retained Territory and Astellas (and its Affiliates and sublicensees) shall have the sole right to conduct clinical trials of the Products in the Licensed Territory. 

4.3.3 Astellas may conduct, at its sole expense, one or more pharmacology studies for the Products in the Retained Territory, under
Aquinox’s IND unless the Parties agree otherwise in writing, solely for regulatory use in the Licensed Territory, [***] (each such [***] study, an “Astellas Retained Territory Pharmacology Study”). For clarity, [***]. Such
Astellas Retained Territory Pharmacology Study shall be added to the applicable Joint Clinical Development Plan [***]. 
 4.3.4 Aquinox
shall bear the costs of any clinical studies and other Development activities for a Product that are necessary solely for the Regulatory Approval in the Retained Territory. Except as set forth in Section 4.4, Astellas shall bear the costs of
any clinical trials or other Development activities for a Product that are necessary solely for the Regulatory Approval of such Product in the Licensed Territory. 

4.3.5 With respect to any clinical studies and other Development activities other than those as set forth in Section 4.3.4, Astellas be
responsible for operational and administrative matters for sites in the Licensed Territory, at Astellas’ expense, and Aquinox shall be responsible for operational and administrative matters for sites in the Retained Territory, at Aquinox’s
expense. The Parties shall share the Development Costs for managing global operations of cross-territory clinical studies for a Product as they shall agree in writing prior to the initiation of such activities for such Product. The Parties shall
determine such expense sharing [***]. 
 4.4 Certain Clinical Trials for the Initial Product. Aquinox shall use Commercially
Reasonable Efforts to complete, at its expense, the following studies with respect to the Initial Product, in each case as identified more specifically in the Joint Clinical Development Plan for the Initial Product: 

4.4.1 the on-going Phase 1 Clinical Trial of the Initial Product with Japanese population that is
currently being conducted in the United States; and 
 4.4.2 the LEADERSHIP301 Study. 

4.5 Review of Protocol Synopsis . 

  
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4.5.1 Astellas shall provide Aquinox directly, or through the JSC, with a reasonable opportunity (at least [***] Business Days prior to the
planned initiation of the applicable non-clinical study and at least [***] Business Days prior to the planned initiation of the applicable clinical trial) to review and comment upon a draft protocol synopsis
in English for each of the non-clinical studies and clinical trials of Products occurring within the Licensed Territory and conducted by or on behalf of Astellas or its Affiliates or Sublicensees. Aquinox
shall provide its comments on the protocol synopsis, if any, within [***] Business Days following the day of receipt, and Astellas shall discuss any comments with Aquinox in good faith. Astellas shall promptly provide to Aquinox the final protocol
synopsis in English. Except as set forth in Section 4.5.3, review of draft protocols by Aquinox is not required, and Astellas shall share full protocols (which are not required to be in English unless filed in English) promptly after
finalization. 
 4.5.2 Aquinox shall provide Astellas directly, or through the JSC, with a reasonable opportunity (at least [***] Business
Days prior to the planned initiation of the applicable non-clinical study and at least [***] Business Days prior to the planned initiation of the applicable clinical trial) to review and comment upon a draft
protocol synopsis for each of the non-clinical studies and clinical trials of Products occurring within the United States, Europe and/or Canada and conducted by or on behalf of Aquinox or its Affiliates.
Astellas shall provide its comments, if any, on the protocol synopsis within [***] Business Days following the day of receipt, and Aquinox shall discuss any comments with Astellas in good faith. Aquinox shall promptly provide to Astellas the final
protocol synopsis. Except as set forth in Section 4.5.3, review of draft protocols by Astellas is not required, and Aquinox shall share full protocols (in the language filed) promptly after finalization. 

4.5.3 Each Party that has the right to receive and review a protocol synopsis under this Section 4.5 shall have the right to receive and
review the full protocol to which such synopsis applies if such Party determines in good faith that such review is reasonably necessary. Any such protocol shall be provided in English with reasonable time for translation following such Party’s
request therefor. 
 4.6 Development in the Retained Territory. As between the Parties, and except as provided in Section 4.4,
Aquinox shall be solely responsible and shall have sole discretion and control (at Aquinox’s sole cost and expense) for all preclinical, clinical, and other Development and Commercialization activities (including regulatory activities) with
respect to Products in the Retained Territory and, as between the Parties, the results of such activities shall be the sole property of Aquinox. 

4.7 Transfer of Data Relating to the Initial Product. 

4.7.1 Data Generated as of the Effective Date. Promptly after the Effective Date, Aquinox shall make electronically available (with
Astellas’ ability to download and print out), copies of all Regulatory Filings owned or submitted by Aquinox in the Territory and in existence as of the Effective Date that have been filed with the FDA, EMA or Health Canada. Astellas shall have
the right to use and reference any and all such Regulatory Filings and Data to obtain and maintain Regulatory Approval for the Products and otherwise Commercialize the Products in the Territory in accordance with the terms of this Agreement. 

  
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4.7.2 Data Resulting from Existing Studies. On a [***] basis during the Term, and subject to Applicable Laws and good scientific
practice, Aquinox shall provide to Astellas, to the extent not already provided and at no additional cost to Astellas, copies of all Data generated by or on behalf of Aquinox with respect to and in the course of conducting the ongoing studies set
forth in Section 4.4.1 (including all study reports analyzing such Data). Final study reports shall be provided promptly following finalization. Astellas shall have the right to use and reference any and all such Data to obtain and maintain
Regulatory Approval for the Products and otherwise Commercialize the Products in the Territory in accordance with the terms of this Agreement. 

4.8 Other Data Generated by Either Party after the Effective Date. 

4.8.1 On a [***] basis during the Term, and subject to Applicable Laws and good scientific practice, each Party shall provide to the other
Party, to the extent not already provided and at no additional cost to such other Party, electronic access (with the other Party’s ability to download and print out) to all Data generated by or on behalf of the Party with respect to and in the
course of conducting studies with respect to the Products (including all study reports analyzing such Data), which are necessary or reasonably useful for such other Party to obtain or maintain Regulatory Approval of such Products in its respective
territory. Subject to Section 4.8.2, such other Party and its Affiliates and (sub)licensees shall have the right to use and reference any and all such Data to obtain and maintain Regulatory Approval for the Products and otherwise Commercialize
the Products in its respective territory in accordance with the terms of this Agreement and, with respect to any Data. 
 4.8.2 Subject to
Section 2.14.2, Astellas acknowledges that Aquinox may, in its sole discretion, enter into one or more agreements with Third Parties and grant such Third Parties a license to Develop and/or Commercialize the Products in the Retained Territory
(each such Third Party, an “Aquinox Partner” and each such agreement, an “Aquinox Partner Agreement”). If Aquinox enters into an Aquinox Partner Agreement, then Aquinox’s obligation to share the safety Data
related to the Products generated by such Aquinox Partner for Astellas’ use in the Licensed Territory in accordance with this Agreement shall be stipulated in such Aquinox Partner Agreement. Aquinox shall use reasonable efforts to include in
each Aquinox Partner Agreement the right for Astellas to use in the Licensed Territory efficacy Data for Products generated by such Aquinox Partner, provided that if such right is not included in a particular Aquinox Partner Agreement, then Aquinox
shall not share with Astellas any of such Aquinox Partner’s efficacy Data and shall not share with such Aquinox Partner any efficacy Data generated by Astellas under this Agreement until such time, if any, that such Aquinox Partner’s
efficacy Data can be shared with Astellas. 
 4.9 Ownership of Data. As between the Parties, the Party generating any Data shall own
such Data, subject to the licenses and other rights granted by such Party to the other Party under this Agreement with respect to the use of or access to such Data. 

4.10 Performance and Diligence. 

4.10.1 Astellas shall use Commercially Reasonable Efforts to Develop, and to prepare and file the MAA (and any amendment thereto) for and seek
and maintain Regulatory 

  
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 EXECUTION VERSION 

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Approval for, the Products in the Licensed Territory, and, without limiting the generality of the foregoing, in each of the Specified Countries. Astellas shall
give Aquinox written notice within [***] Business Days following any determination by Astellas to cease Development of any Product in any Specified Country, which notice shall be deemed to be a notice of termination of this Agreement pursuant to
Section 14.2.1.2 with respect to such Product in such Specified Country. 
 4.10.2 Each Party shall perform its Development activities
relating to the Compounds and Products in accordance with all Applicable Laws. 
 4.10.3 Astellas may not conduct any Development activities
with respect to any Product that are not set forth in a Development Plan approved by the JSC, or that are inconsistent with this Agreement, without Aquinox’s prior written consent. 

4.11 Records, Reports and Information.  

4.11.1 Each Party shall maintain complete, current and accurate records of all work conducted by it under each Development Plan, and all Data
resulting from such work. Such records shall fully and properly reflect all work done and results achieved in the performance of such Development Plan in good scientific manner appropriate for regulatory purposes. Each Party shall document all
preclinical studies and clinical trials in formal written study reports according to applicable national and international guidelines (e.g., ICH, GCP, GLP, and GMP). Each Party shall have the right to review and such records maintained
by the other Party at reasonable times, upon written request. 
 4.11.2 Each Party shall provide to the other Party, to the extent not
already provided and at no additional cost to such other Party, electronic access (with the other Party’s ability to download and print out) (a) investigator’s brochures for the Products and updates thereto and (b) upon such
other Party’s written request and solely to the extent it is commercially reasonable for such Party to provide such electronic access, those records maintained by the other Party pursuant to Section 4.11.1 that are necessary for regulatory
purposes in the other Party’s territory or in connection with a technology transfer of Section 7.4. 
 4.11.3 Each Party shall
present reports and any material updates of investigators’ brochure in English at the JSC meetings on its Development and regulatory activities with respect to the Product, including without limitation any significant formal or informal
meetings between such Party and the Regulatory Authority in its Territory, at a level of detail to be agreed by the JSC; provided, however, that any such presentation shall include at least a summary of the resulting Data for, all preclinical
studies and all clinical trials conducted by such Party with the Product, subject to Aquinox’s obligations to its licensees. 

ARTICLE V 
 REGULATORY
MATTERS 
 5.1 Generally. 

5.1.1 The Parties shall discuss the regulatory strategy for the Products in the Territory through the JSC in order to identify any material
risk, value and impact on regulatory assessment, labeling, pricing and reimbursement in markets throughout the Territory. The Parties 

  
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shall seek to agree on a global registration strategy in the Territory for each Product for consistency of content and labeling, and optimal filing timelines
(parallel and staggered) for markets throughout the Territory. 
 5.1.2 Astellas shall be the IND holder in the Licensed Territory and shall
have responsibility for, and shall use Commercially Reasonable Efforts to conduct, all regulatory activities relating to the Compounds and Products within the Licensed Territory at its own cost, supported by Aquinox as reasonably requested by
Astellas and at Astellas’ expense. Astellas shall promptly provide to Aquinox any and all correspondence and filings with PMDA and other Regulatory Authorities in the Licensed Territory. Astellas shall not be obligated to translate Regulatory
Filings in the Licensed Territory into English. 
 5.1.3 Aquinox shall be responsible for all regulatory activities relating to the
Compounds and Products within the Retained Territory at its own cost, supported by Astellas as reasonably requested by Aquinox and at Aquinox’s expense, and shall update the JSC with respect to such activities. Aquinox shall promptly provide to
Astellas any and all Regulatory Filings with FDA, EMA or Health Canada, subject to any obligations to any Aquinox Partner. 
 5.2
Regulatory Activities in the Licensed Territory. Astellas, at its sole cost and expense and in accordance with, the terms and conditions of this Agreement and the requirements of all Applicable Laws will use Commercially Reasonable Efforts to
take all actions necessary to prepare and file all Regulatory Filings with respect to the Products required to obtain Regulatory Approval for the Products in the Licensed Territory. Without limiting the applicability of the foregoing and the
remainder of this ARTICLE V, Astellas, through the JSC, will keep Aquinox reasonably informed of all material events and developments occurring in the course of obtaining Regulatory Approval in the Licensed Territory, including meetings with
Regulatory Authorities in the Licensed Territory relating to the Products. 
 5.3 Astellas Regulatory Data and Regulatory Approvals.

 5.3.1 Regulatory Filings. 

5.3.1.1 Review. The JSC shall create a subcommittee or working group to coordinate communication and the exchange of information
between the Parties with respect to Regulatory Filings to be prepared and submitted by or for Astellas in the Licensed Territory; and without limiting the foregoing, Astellas shall provide Aquinox with summaries, overviews, or excerpts (in English)
of all Regulatory Filings sufficiently in advance of filing thereof to permit Aquinox to review and comment thereon, and Astellas shall discuss such comments with Aquinox in good faith. Astellas may submit any MAA in the Licensed Territory without
consent from Aquinox, subject to the preceding sentence. 
 5.3.1.2 Accelerated Reporting. In the event that Applicable Laws require
either Party to report information related to any Regulatory Activity in its respective territory on an accelerated basis such that such Party is unable to comply with Section 5.3.1, such Party will nonetheless provide to the other Party a
prompt and detailed description of the event that triggered the accelerated reporting obligation as soon as reasonably practicable, but in no event later than [***] Business Days after the reporting Party obtains actual knowledge of such triggering
event. 

  
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5.3.1.3 Copies. Subject to Applicable Laws, Astellas shall provide to Aquinox : (a) electronic copies of each Regulatory Filing as
submitted to Regulatory Authorities promptly following such submission, and summaries of such filing (which are not required to be in English unless filed in English); (b) summaries (in English) of written communications to Astellas (or its
Affiliate or Sublicensee) from any Regulatory Authority relating to the Compounds or Products, promptly following receipt thereof; and (c) a brief statement (in English) of any material changes in the final Regulatory Filings from the summaries
previously provided by Astellas to Aquinox. 
 5.3.2 Regulatory Meetings. Each Party will provide the other Party (through the JSC)
with advance notice of any formal, scheduled meetings with any Regulatory Authority in its respective territory (including any meetings related to the final positioning of labeling and safety claims within the original and subsequent regulatory
submissions), and provide a brief description of the topics to be presented or discussed at each such meeting, in English. Promptly following such meeting, the Party participating in such meeting shall provide to the other Party the minutes of such
meeting, in English. Aquinox will consider in good faith any request from Astellas to participate in meetings regarding the Products with the FDA, EMA or Health Canada, provided that the final decision regarding such participation will be at
Aquinox’s sole discretion. 
 5.3.3 Holder of Regulatory Filings. Astellas will hold title to all Regulatory Filings (including
MAAs) and Regulatory Approvals with respect to the Products in the Licensed Territory, except as may be required in connection with Aquinox’s exercise of its rights hereunder with respect to (a) any Aquinox Licensed Territory Preclinical
Study or (b) the manufacturing of Compounds and Products; provided, however, that, Astellas shall file for and obtain Regulatory Filings and Regulatory Approvals in such manner as may be required under Applicable Laws in the Licensed Territory
to allow for the expeditious transfer thereof to Aquinox or Aquinox’s designee pursuant to Section 14.4.1 upon certain terminations of this Agreement. 

5.4 Regulatory Costs. Astellas shall be responsible for all costs and expenses of preparing, maintaining, formatting, and filing
Regulatory Filings for Products in the Licensed Territory and for maintaining Regulatory Approval for Products in the Licensed Territory. 

5.5 Astellas Regulatory Filings. Astellas shall not file any Regulatory Filings for Products outside of the Licensed Territory. 

5.6 Rights of Reference. Subject to Section 4.8.2, each Party hereby grants, at no cost, to the other Party and the other
Party’s Affiliates and (sub)licensees the right to use, cross-reference, file or incorporate by reference all Regulatory Filings pertaining to a Product submitted by or on behalf of such granting Party. The receiving Party and its Affiliates
and (sub)licensees may use such rights of reference for the purpose of seeking, obtaining and maintaining Regulatory Approval and Commercializing Product in its respective territory and otherwise performing its rights and obligations under this
Agreement. 
 5.7 Safety; Adverse Event Reporting. 

  
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5.7.1 Pharmacovigilance; Global Safety Database. Aquinox shall establish and maintain at Aquinox’s sole cost and expense the
global drug safety database for the Products. Astellas shall have the right to access Data from the global drug safety database as necessary in order for Astellas to comply with Applicable Laws in the Licensed Territory. Astellas shall be
responsible at its sole cost and expense for (a) collection of Data for the Products during Development and Commercialization as required by Applicable Laws, (b) reporting of Data during Development and Commercialization, including
reportable Adverse Events, to the applicable Regulatory Authorities as required by Applicable Laws and (c) providing a completed CIOMS (in English) to Aquinox for entry into the global safety database in accordance with procedures to be agreed
in the pharmacovigilance agreement to be entered into pursuant to Section 5.7.2. Both Parties expressly acknowledge that information exchanged between the Parties pursuant to this Section 5.7, can and will be shared with Regulatory
Authorities and any Affiliates, Sublicensees and Aquinox Partners engaged in Development and Commercialization activities for the Products in the Retained Territory or the Licensed Territory. 

5.7.2 Safety Agreement. Within [***] days following the Effective Date, or other such period as the Parties may agree, the Parties
shall endeavor to begin negotiations regarding a mutually acceptable pharmacovigilance agreement. The Parties agree that the pharmacovigilance agreement shall set forth the Parties’ respective obligations regarding pharmacovigilance, including
the exchange of Data, as applicable. 
 ARTICLE VI 

COMMERCIALIZATION 
 6.1
Overview and Diligence. Subject to, and in accordance with, the terms and conditions of this Agreement and all Applicable Laws, Astellas, at its expense, will be solely responsible for Commercializing the Product(s) in the Licensed Territory.
Astellas shall use Commercially Reasonable Efforts to Commercialize the Product(s) in each indication that receives Regulatory Approval in the Licensed Territory in the country in which such Regulatory Approval was granted, and shall achieve the
First Commercial Sale in the Licensed Territory within [***] days of obtaining Regulatory Approval for such Product in the Licensed Territory. 

6.2 Commercialization Plan. Without limiting the generality of the other provisions in this ARTICLE VI, Astellas will prepare and
submit to the JSC a plan containing the strategy, activities and timeline for marketing and selling the Products in the Licensed Territory (as updated pursuant to this Section 6.2, the “Commercialization Plan”). Astellas will
submit a proposed draft of the Commercialization Plan for the Licensed Territory to the JSC for review and discussion by the JSC no later than [***] months prior to the anticipated date of the First Commercial Sale of the first Product in the
Licensed Territory and [***] months prior to the anticipated date of the first commercial sale of any other Product in the Licensed Territory. Astellas will deliver to the JSC an update of the relevant sections of the Commercialization Plan on an
annual basis during the Term. Updates to the Commercialization Plan will reflect, among other things, each new indication in the Field for which the Product has received Regulatory Approval. Astellas will be solely responsible for all decisions
regarding the day-to-day conduct of Commercialization within the Licensed Territory. 

6.3 Pricing. 

  
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6.3.1 Astellas shall be responsible, at its own expense, for seeking Pricing Approval in the Licensed Territory. Astellas shall keep Aquinox
informed on an ongoing basis of Astellas’ strategy for seeking, and the results it obtains in seeking, Pricing Approval, including, without limitation, the results of any material discussion or other communication with relevant Governmental
Authorities regarding Pricing Approval, via regular reports to the JSC no less frequently than quarterly for Japan and annually for other countries in the Licensed Territory. 

6.3.2 Subject to Section 6.3.3, Astellas shall have the sole right to make all decisions regarding the pricing of the Product in the
Licensed Territory. Notwithstanding anything in this Agreement express or implied to the contrary, Aquinox shall not have any right to direct, control, or approve Astellas’ decision regarding the pricing of Products for the Licensed Territory.
Astellas shall update, through the JSC, Aquinox with respect to such pricing matters, provided that the provision to Aquinox of pricing data shall be for informational purposes only. 

6.3.3 In the event Astellas sells a Product in a “bundle” with one or more other products or services at a discount to any Third
Party for sale of Products, Astellas shall not disproportionately discount the Product relative to the other products or services composing such bundle. 

6.4 Reports. Astellas shall update the JSC at the JSC’s regularly-scheduled meetings regarding Astellas’ significant
Commercialization activities (such as promotion campaign) with Products in the Licensed Territory. In addition, Astellas shall present written reports to the JSC annually, summarizing Astellas’ significant Commercialization activities with
respect to Products in the Licensed Territory pursuant to this Agreement and including a forecast for the following year’s sales of the Product in the Licensed Territory. Such reports shall cover subject matter at a level of detail reasonably
sufficient to enable Aquinox to determine Astellas’ compliance with its diligence obligations pursuant to this ARTICLE VI. 
 6.5
Communications. To the extent permitted by Applicable Laws, and subject to Section 6.3, the Parties shall seek to coordinate their communications relating to the Commercialization of the Products in their respective territories. 

6.6 Approval for Certain Marketing Activities. To the extent that any marketing by Astellas for Commercialization of the Products in
the Licensed Territory relate to or require activities outside of the Licensed Territory, the JSC shall be responsible for coordinating and approving such marketing activities. 

6.7 Marketing and Promotional Literature. Astellas shall prepare all marketing and promotional literature related to Products for use
in the Licensed Territory in accordance with Applicable Laws. If the JSC determines that Aquinox shall be presented and described as the Party who developed the Product in certain marketing and promotional literature in certain countries in the
Licensed Territory, Aquinox will be presented and described as the Party who developed the Product, as provided for in Section 6.9, in a manner to be determined by the JSC on, by way of example, all labels, packaging, packaging inserts, and
promotional literature related to the Product, in each case to the extent permitted by Applicable Laws. 

  
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6.8 Marketing and Sales in the Retained Territory. Beginning approximately [***] prior to the first commercial sale of a Product in the
Retained Territory, Aquinox, through the JSC, shall keep Astellas reasonably informed of all material activities and developments with respect to the marketing and sale of Products in the Retained Territory. 

6.9 Labeling. Subject to, and in accordance with, Applicable Laws and JSC’s decision, Astellas shall identify Aquinox as the
licensor or manufacturer of the Products using the Aquinox Housemarks designated by Aquinox for such use in certain promotional materials for the Products in the Licensed Territory where such identification is appropriate, in a manner approved in
advance in writing by the JSC, and in accordance with (and subject to) the license set forth in Section 2.13.1. 
 6.10 Selection of
Product Trademark. Astellas shall be responsible for the selection, registration, maintenance and defense of all Product Trademarks for use in connection with commercialization of Product in the Field in the Licensed Territory. Astellas shall
own all Product Trademarks. For clarity, nothing in this Section grants Astellas any rights under or to any trademark, tradename, servicemark or logo owned or Controlled by Aquinox, its Affiliates or its licensees, or any registration or application
therefor. If Astellas wishes to use one or more Aquinox trademarks that are specific to a Product for use with such Product in the Licensed Territory, the Parties shall negotiate in good faith an agreement to grant Astellas an exclusive, sub-licensable, royalty-bearing license to such trademark(s) for use with such Product in the Licensed Territory on reasonable and customary terms. 

ARTICLE VII 

MANUFACTURING AND SUPPLY 

7.1 Manufacturing Coordinators. Each Party shall designate one (1) qualified and experienced supply chain professional to
serve as that Party’s primary contact and coordinator regarding the supply of Products within this Agreement (a “Manufacturing Coordinator”). Each Party may replace its Manufacturing Coordinator with an alternative
representative at any time with prior written notice to the other Party. The Manufacturing Coordinators shall be responsible for facilitating information exchange and discussion between the Parties regarding the supply of Products under this
Agreement, including the [***] and [***]. Each Manufacturing Coordinator shall be subject to the authority of the JSC. Each Party will be responsible for all of its own costs with respect to its Manufacturing Coordinator. 

7.2 Joint Manufacturing Plan. 

7.2.1 Until the Technology Transfer Completion, the Parties shall collaborate with respect to the CMC activities, manufacturing and supply of
Compound and Product for the Licensed Territory (excluding manufacturing and supply for commercial use for the Licensed Territory) under a “Joint Manufacturing Plan”, which shall set forth anticipated timelines, budget, CMC-related development such as formulation, analytical and process development, and scale-up, stability, packaging and shipping studies and related regulatory activities,
strategy, and specific commitments of each Party. The Joint Manufacturing Plan shall also include the anticipated quantities for use in conducting all (pre-)clinical trials to be conducted by Astellas in the
Licensed Territory, and activities relating to manufacturing technology transfer. 

  
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7.2.2 The Manufacturing Coordinators shall be responsible for drafting the Joint Manufacturing Plan for approval by the JSC. Any material
amendment of the Joint Manufacturing Plan, including (a) changes of the latest JSC-approved manufacturing plans or CMC studies, which (i) require additional budget that is not pre-approved by either Party and/or (ii) lead to any delay in timeline and (b) additional manufacturing plans and/or additional CMC studies which are not approved by the JSC, will be discussed and approved
by JSC in accordance with ARTICLE II. The Manufacturing Coordinators of each Party shall provide updates to JSC regarding such Party’s activities under the Joint Manufacturing Plan. [***] shall [***] with respect to [***] relating to Compounds
and Products [***] Territory under the Joint Manufacturing Plan, and [***] shall [***] with respect to [***] relating to Compounds and Products [***] Territory under the Joint Manufacturing Plan, as further described under ARTICLE II. 

7.3 Aquinox Supply to Astellas. 

7.3.1 Until the occurrence of the Manufacturing Responsibility Trigger, (a) Aquinox shall be responsible for supplying to Astellas the
Compound and/or the Product from its CMO and Astellas shall purchase from Aquinox, the quantities of Compound and/or the Product pre-agreed by the Parties under the Joint Manufacturing Plan [***]; and
(b) the external costs for Manufacturing development for the Products (including process, formulation, analytical and method development) under the Joint Manufacturing Plan will be shared [***], but shall exclude any costs for any activities
solely required for the Retained Territory or the Licensed Territory. Astellas shall not be required to contribute to any such external costs that are not pre-agreed by Astellas. “Manufacturing
Responsibility Trigger” means the date of the Technology Transfer Completion, [***] Commercially Reasonable Efforts [***] for supply [***] receives such [***]. 

7.3.2 With respect to Compound, Product or [***], and notwithstanding Section [***] with respect to such Compound or Product [***] Third Party
[***] Third Party. 
 7.3.3 Until the Technology Transfer Completion, the Parties shall, through JSC, develop and adopt guidelines to be
followed by the Parties [***] Compound and Products for the Licensed Territory to ensure appropriate [***]. Such guidelines shall [***] the Effective Date. 

7.3.4 Within [***] days following the Effective Date, the Parties shall enter into a supply agreement for Products to be used for the
preclinical and clinical Development of the Initial Product in accordance with this Section 7.3, including such other terms as are reasonable and customary. For clarity, Aquinox shall not be required to supply Astellas with Initial Product in
any form that Aquinox does not Manufacture or have Manufactured for its own account. 

  
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7.3.5 If Astellas wishes Aquinox to provide commercial supply of a Compound (or any intermediates) or Product (as active pharmaceutical
ingredient), including use for Medical Affairs Activities under the Joint Medical Affairs Plan, the Parties shall negotiate a commercial supply agreement therefor on reasonable and customary terms (a “Commercial Supply Agreement”).

 7.4 Technology Transfer. 

7.4.1 The Parties shall discuss in good faith the feasibility of a manufacturing technology transfer for the Compounds and Products from
Aquinox to Astellas following the Effective Date. During the Term, if Astellas desires to take responsibility to manufacture the Compound and/or the Product for the Licensed Territory, or if Aquinox provides Astellas with at least [***] months
(unless otherwise agreed by the Parties) prior notice that it wishes Astellas to accept such technology transfer then Aquinox shall use commercially reasonable efforts to complete such technology transfer in accordance with a schedule to be agreed
in writing in good faith by the Parties (the completion of such transfer, the “Technology Transfer Completion”). The plan for such technology transfer (the “Technology Transfer Plan”) shall include (i) the
transfer of all process know-how and the materials in the Control of Aquinox at the time of such technology transfer pertaining to the Manufacture of Compounds, intermediates and Products, in each case, that
is actually being used by or on behalf of Aquinox to Manufacture Compounds, intermediates and Products; (ii) the timeline and process for Astellas’ selection and determination of CMO; and (iii) initial engagement with CMOs at
Astellas’ sole discretion for the purpose of technology transfer. The efforts for such technology transfer under the Technology Transfer Plan shall continue until [***]. Aquinox shall reasonably assist to implement the technology transfer to
Astellas or its designee, and Astellas shall reimburse the reasonable costs [***] incurred by Aquinox for such technical transfer. 
 7.4.2
During the period during which the Technology Transfer Plan is conducted and following the Technology Transfer Completion, and subject to Section 7.5, Astellas shall conduct, at its own cost, any CMC development for regulatory approval for sale
of the Products in the Licensed Territory (including formulation, cost of goods reduction, stability studies and process validation) and manufacturing and supply of the Compounds and the Products for the Licensed Territory, and Aquinox shall
conduct, at its own cost, CMC development, manufacturing and supply of the Compounds and the Products solely for the Retained Territory. 

7.5 [***]. 
 7.5.1 During
the period during which the Technology Transfer Plan is being conducted and following the Technology Transfer Completion, Astellas shall have the right to elect CMOs, at its sole discretion, for CMC activities, manufacturing and supply of the
Compounds or Products for use in the Licensed Territory. [***] manufacturing of Compound [***], subject to Section [***]. Aquinox shall be responsible for [***] and Astellas shall [***]. 

  
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The Parties shall [***]. 
 7.5.2 Notwithstanding
the foregoing, [***] months prior written notice (which shall [***] to the extent [***] can reasonably [***] reasonably [***]), transfer to [***] one or more [***] and shall [***] required for such [***]. In such event, each Party agrees that during
the Term it shall [***] any Third Party for any [***] that would [***] other Party [***] such Third Party [***] Compounds and Products. 

7.6 [***]. The Manufacturing Coordinators shall [***] set forth in Exhibit [***] so that [***] Manufacture Compounds (including
intermediates) and Products for use or sale in the Licensed Territory. [***] shall use Commercially Reasonable Efforts to [***] so that [***] days following the Effective Date. Each such [***] shall be subject to the [***] the applicable [***]. 

ARTICLE VIII 
 MEDICAL
AFFAIRS 
 8.1 Generally. Astellas shall have the sole right to conduct Medical Affairs Activities in the Licensed Territory for
the Products in the Field, at its expense. Aquinox shall have the sole right to conduct Medical Affairs Activities in the Retained Territory for the Products in the Field, at its expense. Each Party shall conduct its Medical Affairs Activities in
accordance with all Applicable Laws. 
 8.2 Joint Medical Affairs Plan. The Parties, through JSC, shall collaborate with
respect to the Medical Affairs Activities in support of the Products in the Field in the Territory. The JSC will review and discuss a joint medical affairs plan and its amendments (“Joint Medical Affairs Plan”) under which the
Parties shall decide (a) whether and when to initiate or discontinue any joint voluntary Phase 4 studies for the Products and, if applicable, the sharing of costs relating thereto, and (b) review, discuss, and coordinate the Parties’
scientific presentation and publication strategy relating to the Products in the Field in the Territory. The JSC shall approve those portions of the Joint Medical Affairs Plan which relate to global activities, but shall only review, and shall not
approve, those portions of the Joint Medical Affairs Plan which relate only to activities specifically for the Licensed Territory or the Retained Territory. 

8.3 Approval for Certain Medical Affairs Activities. To the extent that any Medical Affairs Activities by Astellas for the Products in
the Licensed Territory relate to or require activities outside of the Licensed Territory, including without limitation, the education of medical practitioners and caregivers outside the Licensed Territory, the JSC shall be responsible for
coordinating and approving such activities. Except as required or permitted by Applicable Law, Astellas acknowledges that it cannot conduct an investigation or initiate a post-marketing clinical study that is not specifically related to any
indication in the Field included on the label or in the package insert for Products. 

  
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8.4 Reports. Astellas shall update the JSC at the JSC’s regularly-scheduled meetings regarding Astellas’ significant Medical
Affairs Activities for Products in the Licensed Territory. In addition, Astellas shall present written reports to the JSC twice per Calendar Year, summarizing Astellas’ significant Medical Affairs Activities with respect to Products in the
Licensed Territory pursuant to this Agreement and including a plan for the following year’s Medical Affairs Activities for the Products in the Licensed Territory. 

8.5 Phase 4 Trials. With respect to any phase 4 clinical trials of Products, Astellas be responsible for operational and
administrative matters for sites in the Licensed Territory, at Astellas’ expense, and Aquinox shall be responsible for operational and administrative matters for sites in the Retained Territory, at Aquinox’s expense. The Parties shall
share the Development Costs for managing global operations of cross-territory phase 4 clinical trials for a Product as they shall agree in writing prior to the initiation of such activities for such Product. The Parties shall determine such expense
sharing [***]. 
 8.6 Investigator-Initiated Studies. Astellas has the first right to enter into a collaboration agreement for
investigator and physician-initiated studies in the Licensed Territory with a Third Party. Astellas shall supply study materials to such Third Party at its own expense. 

ARTICLE IX 
 FINANCIAL
TERMS 
 9.1 Upfront Payment. Within [***] Business Days after the Effective Date, as a material inducement to Aquinox entering
into this Agreement, Astellas shall pay to Aquinox a non-refundable, non-creditable, upfront payment of twenty-five million U.S. dollars (US$25,000,000). 

9.2 Reimbursements. To the extent that either Party incurs costs that are subject to reimbursement by the other Party hereunder, the
Party incurring such costs shall provide such other Party an invoice therefor accompanied by reasonable, customary documentation, and such other Party shall pay a such undisputed invoice within [***] days following its receipt thereof. If the Party
receiving such invoice disputes any portion thereof in good faith, then it shall give the invoicing Party written notice of such dispute and pay the undisputed portions of such invoice and the Parties shall promptly seek to resolve the disputed
portions. 
 9.3 Milestone Payments. 

9.3.1 Development and Regulatory Milestones. Astellas shall pay to Aquinox the one-time, non-refundable, non-creditable payments set forth in the table below within [***] days of the first achievement by a Product of the applicable milestone event (whether by
Astellas or its Affiliate or Sublicensee). For the avoidance of doubt, each of the following milestone payments shall be payable only once regardless of the number of times achieved by one or more Products. 

  
 40 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

 

			
	 Milestone Event
	  	Milestone Payment
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]
	 [***]
	  	[***]

 If at the time of the achievement of a milestone for the Primary Indication (including if the first Regulatory Approval in
Japan is for the Primary Indication), Astellas has not made payment for one or more prior milestones for the Primary Indication, Astellas shall make the payment for such prior milestone(s) together with the payment for the achieved milestone,
irrespective of whether such prior milestone had actually been achieved. With respect to milestones [***] and [***], (a) if at the time of the achievement of milestone [***], Astellas has not made payment for milestone [***], Astellas shall make the
payment for milestone [***] together with the payment for milestone [***], and (b) if at the time of the first [***], Astellas has not made payment for either or both of milestones [***] and [***], Astellas shall make the payment for such prior
milestone(s), in each case, irrespective of whether such prior milestone(s) had actually been achieved. With respect to milestones [***] and [***], (i) if at the time of the achievement of milestone [***], Astellas has not made payment for milestone
[***], Astellas shall make the payment for milestone [***] together with the payment for milestone [***], and (ii) if at the time of the first [***] (excluding the [***]), Astellas has not made payment for either or both of milestones [***] and
[***], Astellas shall make the payment for such prior milestone(s), in each case, irrespective of whether such prior milestone(s) had actually been achieved. 

  
 41 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

9.3.2 Sales Milestones. Astellas shall pay to Aquinox the additional one-time, non-refundable, non-creditable payments set forth in the table below within [***] days of the end of the Fiscal Year in which the applicable sales milestone event is first
achieved by Astellas, its Affiliates, and Sublicensees. If both sales milestone events are achieved in the same Fiscal Year, then Astellas shall pay to Aquinox both milestone payments. For the avoidance of doubt, each of the following milestone
payments shall be payable only once regardless of the number of times such milestone is achieved. 
  

			
	 Sales Milestone Event
	  	Sales Milestone Payment
	 [***]
	  	[***]
	 [***]
	  	[***]

 9.4 Running Royalties. 

9.4.1 Royalty. In consideration of the grant of rights set forth herein, Astellas shall pay to Aquinox on a Product by Product basis, an
amount equal to the applicable Gross Profit multiplied by the applicable Royalty Rate for such Product, on a Fiscal Quarter basis. 
 9.4.2
“Royalty Rate” means: 
 9.4.2.1 In all countries in the Licensed Territory other than Japan: [***] 

9.4.2.2 In Japan, with respect to a Product: 

(a) [***] 
 (b) [***] 

(c) [***] 
 (d) [***] 

  
 42 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

(e) [***] 

     [***] 

     [***] 

9.4.3 Reduction for Generic Product. In case that a Third Party commercially sells a Generic Product with respect to such Product in
the Licensed Territory and such Generic Product has a volume market share of greater than [***] in such country, the applicable Royalty Rate set forth in Section 9.4.2 with respect to such Product and such country shall be reduced by [***]
which shall be rounded to the nearest tenth (10th) of a percent in accordance with the example shown in Section 9.4.2 above. [***] 

9.4.4 Royalty Term. Royalties shall be paid on a
Product-by-Product and country-by country basis until the later of: (a) ten (10) years from the First Commercial Sale in
such country; (b) expiration of the last to expire Valid Claim in such country; or (c) expiration of Regulatory Exclusivity in such country with respect to such Product (with respect to each Product and country, the “Royalty
Term”). 
 9.5 Royalty Payments and Reports. 

9.5.1 Generally.  

9.5.1.1 Astellas shall calculate all amounts payable to Aquinox pursuant to Section 9.4 at the end of each Fiscal Quarter, which amounts
shall be converted to U.S. dollars at such time, in accordance with Section 9.7. 
 9.5.1.2 At least two
(2) weeks prior to the start of each Fiscal Year, the Parties shall agree on a [***], which shall be used during such Fiscal Year for [***] during such Fiscal Year, subject to [***] Fiscal Year in accordance with Section
[***]. 
 9.5.1.3 For each Fiscal Quarter, Astellas shall provide the report and payment set forth in Section 9.5.2 based on
Astellas’ good faith estimates for such Fiscal Quarter, subject to recalculation following the end of the Fiscal Year in accordance with Section 9.6.2. 

9.5.2 Payment and Report. Astellas shall pay such converted Dollar amount within sixty (60) days after the end of each Fiscal
Quarter. Each payment of royalties shall be accompanied by a written report showing, on a consolidated basis in reasonably specific detail and on a country-by-country
basis, (a) Net Sales, [***] of Products sold by Astellas, its Affiliates and its Sublicensees in the Licensed Territory during the corresponding 

  
 43 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

Fiscal Quarter including a description of the credits and offsets deducted on a Product by Product and country by country basis to calculate Net Sales [***];
(b) the royalties payable in U.S. dollars, if any, which shall have accrued hereunder based upon such Net Sales of Products (including the calculation of any reduction under Section 9.4.3); (c) the withholding taxes, if any, required by law to
be deducted in respect of such royalties; (d) the dates of the First Commercial Sale of each Product in each country in the Territory, if it has occurred during the corresponding Fiscal Quarter; (e) with respect to sales in Japan, [***]
and applicable royalty rate under Section 9.4.2.2; and (f) an itemized calculation of the Exchange Rate used in determining the royalty amount expressed in U.S. dollars. 

9.5.3 Preliminary Report. In addition, Astellas shall, within [***] days after the end of each Fiscal Quarter, provide to Aquinox a
preliminary report setting forth Astellas’ good faith estimate of the information described in Sections 9.5.2(a) through (f) for such Fiscal Quarter based Astellas’ preliminary financials for such Fiscal Quarter. 

9.6 Adjustments to Payment of Royalty. 

9.6.1 [***]. 
 9.6.1.1
The “[***]” for a Product means the [***] for such Product [***] based on the [***] of such Product (the “[***]”). 

9.6.1.2 If the [***] more than [***] for a Product, then the Parties shall agree in writing on [***] such Product [***], including the [***]
for each Product shall be [***] each Fiscal Year [***] First Commercial Sale for such Product [***] occurs. If Astellas [***], then the Parties shall [***] Third Party, provided that [***] in writing in advance ([***]). Based upon [***], the Parties
shall [***]. An example of such [***] is provided in [***]. 
 9.6.1.3 If, in any Calendar Year, the [***] for such Product, then the [***]
for such Product for such Calendar Year [***] for such Product. 
 9.6.2 Determination of [***]. Within [***] days after the end of
each Fiscal Year, the Parties shall [***] for each Product for each Fiscal Quarter during such Fiscal Year based on the [***] such Fiscal Quarter and the [***] such Product for such Fiscal Year [***], the 

  
 44 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

applicable Royalty Rate as determined in accordance with Sections 9.4 based on the applicable [***] in accordance with Section [***]. If the [***] for such
Product for such Fiscal Year [***] Fiscal Year [***], then Astellas shall [***] Fiscal Quarter in the [***] Fiscal Year. If the [***] for such Product for such Fiscal Year [***] for such Fiscal Year, Astellas shall [***] Fiscal Quarter in the
following Fiscal Year. 
 9.7 Foreign Exchange. The rate of exchange to be used in computing the amount of currency equivalent in
U.S. dollars owed to a Party under this Agreement shall be the Exchange Rate. 
 9.8 Late Payments. If Aquinox does not receive
payment of any sum due to it on or before the due date, simple interest shall thereafter accrue on the sum due to Aquinox until the date of payment at the per annum rate of [***] over the then-current prime rate quoted by Citibank in New York City,
NY, U.S.A. or the maximum rate allowable by Applicable Laws, whichever is lower. 
 9.9 Taxes. 

9.9.1 Cooperation and Coordination. The Parties acknowledge and agree to cooperate in order to appropriately calculate, consistently
with Applicable Laws, taxes payable with respect to their collaborative efforts under this Agreement and any appropriate reductions, credits, or deductions that may lawfully reduce otherwise applicable taxes. 

9.9.2 Payment of Tax. A Party receiving a payment pursuant to this Agreement shall pay any and all taxes levied on such payment except
as provided in this Section 9.9. If Applicable Laws require that taxes be deducted and withheld from a payment made pursuant to this Agreement, the remitting Party shall (a) deduct those taxes from the payment; (b) pay the taxes to
the proper taxing authority; and (c) send evidence of the obligation together with proof of payment to the other Party within [***] days following that payment Notwithstanding the foregoing, the Parties acknowledge and agree that (i) as of
the date of this Agreement and under Applicable Laws, no withholding tax will be applicable to payments made to Aquinox pursuant to this Agreement provided Aquinox provides Astellas with an appropriate completed IRS withholding form (for example,
Form W-8BEN-E) claiming the benefits of the United States-Canada Income Tax Convention and (ii) Astellas will not withhold any tax from payments payable to Aquinox
pursuant to this Agreement unless required to withhold as a result of a change in Applicable Laws after the date hereof. The Party making any payment pursuant to this Agreement shall be responsible for stamp, transfer, sales, use, value added or
similar taxes imposed on such payments. 
 9.9.3 Tax Residence Certificate. A Party (including any entity to which this Agreement may
be assigned, as permitted under Section 16.4) receiving a payment pursuant to this ARTICLE IX shall provide the remitting Party appropriate certification from relevant revenue authorities (if applicable) that such Party is a tax resident of
that jurisdiction (a “Tax Residence Certificate”), if such receiving Party is required to submit a Tax Residence Certificate in order to claim the benefits of an income tax treaty to which that jurisdiction is a party. Upon the
receipt thereof, any deduction and withholding of taxes shall be made at the appropriate treaty tax rate. 

  
 45 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

9.9.4 Assessment. Either Party may, at its own expense, protest any assessment, proposed assessment, or other claim by any Governmental
Authority for any additional amount of taxes, interest or penalties or seek a refund of such amounts paid if permitted to do so by Applicable Laws. The Parties shall cooperate with each other in any protest by providing records and such additional
information as may reasonably be necessary for a Party to pursue such protest. 
 9.9.5 Withholding Taxes Resulting From Astellas
Action. If Astellas (or Astellas’ assignees or successors) is required to make a payment to Aquinox subject to a deduction or withholding of tax, and if such deduction or withholding of tax obligation arises as a result of any action taken
by Astellas or its Affiliates or successors, including without limitation an assignment of this Agreement as permitted under Section 16.4, a change in the tax residency of Astellas, or the payments arise or are deemed to arise through a branch
of Astellas and such action has the effect of increasing the amount of tax deducted or withheld (each, an “Astellas Withholding Tax Action”), then notwithstanding anything to the contrary herein, the payment by Astellas (in respect
of which such deduction or withholding of tax is required to be made) shall be increased by the amount necessary to ensure that Aquinox receives an amount equal to the same amount that it would have received had no Astellas Withholding Tax Action
occurred. 
 9.10 Records; Audits. Astellas and its Affiliates and Sublicensees will maintain complete and accurate records in
sufficient detail to permit Aquinox to confirm the accuracy of the calculation of royalty payments under this Agreement. Upon reasonable prior notice, such records shall be available during regular business hours for a period of [***] years from the
creation of individual records for examination at Aquinox’s expense, and not more often than once each Calendar Year, by an independent certified public accountant selected by Aquinox and reasonably acceptable to Astellas, for the sole purpose
of verifying the accuracy of the financial reports furnished by Astellas pursuant to this Agreement. At Aquinox’s request, an Aquinox employee may accompany and assist such auditor. Any such auditor (and employee, if applicable) shall not
disclose Astellas’ Confidential Information, except to the extent such disclosure is necessary to verify the accuracy of the financial reports furnished by Astellas or the amount of payments due by Astellas under this Agreement. Any amounts
shown to be owed but unpaid shall be paid within [***] days from the accountant’s report, plus interest (as set forth in Section 9.7) from the original due date. Any amounts shown to have been overpaid shall be refunded within [***] days
from the account’s report. Aquinox shall bear the full cost of such audit unless such audit discloses an underpayment of the amount actually owed during the applicable Calendar Year of more than [***], in which case Astellas shall bear the full
cost of such audit. 
 9.11 Financial Contacts. Each Party shall identify in writing to the other Party a financial contact who shall
be the point of contact for such Party for the matters set forth in this Article 9 and who will coordinate in good faith with respect to such matters. Each Party may change its financial contact by written notice to the other Party. 

ARTICLE X 
 INTELLECTUAL
PROPERTY 

  
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 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

10.1 Ownership of Collaboration Inventions. As between the Parties, Aquinox will solely own all Collaboration Inventions that are
conceived, made, or generated solely by the employees or consultants of Aquinox or its Affiliates, and Astellas will solely own all Collaboration Inventions that are conceived, made, or generated solely by the employees or consultants of Astellas or
its Affiliates. The Parties shall jointly own all Joint Inventions. Inventorship shall be determined in accordance with U.S. patent laws. 

10.2 Disclosure of Collaboration Inventions. Each Party shall promptly disclose to the other Party any invention disclosures, or
other similar documents, submitted to it by its employees, agents, or independent contractors describing inventions that are Collaboration Inventions, and all information relating to such inventions. 

10.3 Right to Practice Joint Inventions. Except to the extent either Party is restricted by the express terms of this Agreement, each
Party shall have the right to practice and exploit such Joint Inventions and Joint Patents, with full rights to license its interest therein in the Territory and without any duty of accounting to or any duty to seek consent from the other Party.
Upon the reasonable request of either Party, the other Party shall execute documents that evidence or confirm the requesting Party’s right to engage in such activities. 

10.4 Prosecution of Patents. 

10.4.1 Definition of Prosecution. As used herein, “prosecution” of Patents shall include, without limitation, all
communication and other interaction with any patent office or patent authority having jurisdiction over a Patent application throughout the world in connection with pre-grant proceedings. Post-grant
proceedings shall be governed by Sections 10.5 and 10.9. 
 10.4.2 Aquinox Patents and Joint Priority Patents. Except as otherwise
provided in Section 10.4.5, Aquinox shall have the sole right and authority to prepare, file, prosecute, and maintain the Aquinox Patents (excluding the Joint Patents) and the Joint Priority Patents (collectively, the
“Aquinox-Prosecuted Patents”) on a worldwide basis. Aquinox shall bear all costs of preparation, filing, prosecution, and maintenance of Aquinox-Prosecuted Patents. Aquinox shall provide Astellas a reasonable opportunity to review
and comment on such efforts regarding such Aquinox-Prosecuted Patents Covering any Product in the Licensed Territory, including by providing Astellas with a copy of material communications from any patent authority regarding such Aquinox-Prosecuted
Patent, and by providing drafts of any material filings or responses to be made to such patent authorities reasonably in advance of submitting such filings or responses, and shall consider Astellas’ comments in good faith. 

10.4.3 Astellas Collaboration Patents. Except as otherwise provided in Section 10.4.5, Astellas shall have the sole right and
authority to prepare, file, prosecute, and maintain the Astellas Collaboration Patents (excluding the Joint Patents) on a worldwide basis at its own expense. Astellas shall provide Aquinox a reasonable opportunity to review and comment on such
efforts regarding such Astellas Collaboration Patents Covering any Product in the Territory, including by providing Aquinox with a copy of material communications from any patent authority regarding such Astellas Collaboration Patents, and by
providing drafts of any material filings or responses to be made to such patent authorities reasonably in advance of submitting such filings or responses, and shall consider Aquinox’s comments in good faith. 

  
 47 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

10.4.4 Joint Patents. Except as otherwise provided in Section 10.4.5, Aquinox shall have the sole right and authority to prepare,
file, prosecute, and maintain the Joint Patents in the Retained Territory at its sole cost, and Astellas shall have the sole right and authority to prepare, file, prosecute, and maintain the Joint Patents (excluding the Joint Priority Patents) in
the Licensed Territory at its sole cost, provided that the Parties shall share equally any such costs that are not attributable to any particular territory, including, but not limited to, the costs for filing an international application under the
Patent Cooperation Treaty. The Parties shall reasonably cooperate with respect to the preparation, filing, prosecution and maintenance of such Joint Patents. The Party with the right to prosecute such a Joint Patent as set forth above shall provide
the other Party with a reasonable opportunity to review and comment on such efforts regarding such Joint Patents, including by providing such other Party with a copy of material communications from any patent authority regarding such Joint Patents,
and by providing drafts of any material filings or responses to be made to such patent authorities reasonably in advance of submitting such filings or responses, and shall consider such other Party’s comments in good faith. 

10.4.5 Option to Prosecute and Maintain Patent Rights. Either Party may cease prosecution and/or maintenance of any Patent that such
Party is responsible for prosecuting and maintain pursuant to this Section 10.4 on a country-by-country basis by providing the other Party written notice reasonably
in advance of such due date. If the responsible Party elects to cease prosecution or maintenance of the relevant Patent in a country, the other Party, shall have the right, but not the obligation, at its sole discretion and cost, to continue
prosecution or maintenance of such Patent and in such country (“Step-In Rights”), provided that Astellas may only exercise its Step-In Rights with
respect to Aquinox Patents and Joint Priority Patents in the Licensed Territory. If the other Party elects to continue prosecution or maintenance or elects to file additional applications following the responsible Party’s election to cease
prosecution or maintenance pursuant to this Section 10.4, the responsible Party shall transfer the applicable patent files to such other Party or its designee and execute such documents and perform such acts at the responsible Party’s
expense as may be reasonably necessary to allow the other Party to initiate or continue such filing, prosecution or maintenance at the other Party’s sole expense. 

10.4.6 Cooperation. Each Party shall provide the other Party all reasonable assistance and cooperation in the Patent prosecution
efforts provided above in this Section 10.4, including providing any necessary powers of attorney and executing any other required documents or instruments for such prosecution, as well as further actions as set forth below: 

10.4.7 Confidentiality. All communications between the Parties relating to the preparation, filing, prosecution, or maintenance of the
Aquinox Patents and Astellas Collaboration Patents, or any Joint Patents, including copies of any draft or final documents or any communications received from or sent to patent offices or patenting authorities with respect to such Patents, shall be
considered Confidential Information and subject to the confidentiality provisions of ARTICLE XI. 
 10.4.8 CREATE Act. The Parties
acknowledge that Collaboration Inventions may be generated with different assigning entities which, during the course of U.S. patent prosecution, may benefit from use of the CREATE Act of 2004 (70 Fed. Reg. 177(54259-54267) as amended by the
Leahy-Smith America Invents Act of 2011 (35 U.S.C. §§102(b)(2)(c) and 102(c)) (the “CREATE Act”). For the purposes of the benefit of the CREATE Act, the Parties deem this 

  
 48 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

Agreement and/or the written memorialization of transactions contemplated hereunder, such as pertaining to the Development of the Compounds and Products, to
constitute a qualifying written Joint Research Agreement. 
 10.5 Patent Term Extensions in the Licensed Territory. On a country-by-country and Product-by-Product basis, Astellas shall have the right, at its sole
discretion, to apply for patent term extension in the Licensed Territory for any Patent Covering the manufacture, use or sale of such Product in such country, and will act with reasonable promptness in light of the development stage of Products to
apply for any such patent term extension. Astellas shall keep Aquinox apprised of its plans regarding any such patent term extensions through the JSC and the Joint Clinical Development Plan. Aquinox shall cooperate reasonably with Astellas in making
such filings or actions, for example and without limitation, making available all required regulatory Data and information and executing any required authorizations to apply for such patent term extension. All expenses incurred in connection with
activities of each Party with respect to the Patent(s) for which Astellas seeks patent term extensions pursuant to this Section 10.5.1 shall be borne by Astellas. If Astellas receives patent term extension for an Astellas Patent or solely-owned
Astellas Collaboration Patent instead of an Aquinox Patent, then, for purposes of Section 9.4.4(b), the last to expire Valid Claim will not be deemed to have expired until such date as it would have expired had the Aquinox Patent containing
such Valid Claim received such patent term extension, provided that the foregoing shall not apply if Astellas can reasonably demonstrate that such Valid Claim would not have provided material exclusivity for the applicable Product in the applicable
country if extended. 
 10.6 Infringement of Patents by Third Parties. 

10.6.1 Notification. Each Party shall promptly notify the other Party in writing of any existing or threatened infringement of the
Aquinox Patents, Astellas Patents, Astellas Collaboration Patents, or Joint Patents, in the Territory of which it becomes aware, and shall provide all evidence in such Party’s possession demonstrating such infringement. 

10.6.2 Notice of Infringement. If a Third Party infringes any Aquinox Patent, Astellas Collaboration Patent or Joint Patent in the
Territory by making, using, importing, exporting, offering for sale, or selling a Product (a “Product Infringement”), each Party shall share with the other Party all information available to it regarding such alleged
infringement. 
 10.6.3 Enforcement. 

10.6.3.1 Astellas shall have the first right, but not the obligation, to bring an appropriate suit or other action against any Person engaged
in Product Infringement in the Licensed Territory, subject to the remainder of this Section 10.6.3. Astellas shall have a period of ninety (90) days (as may be extended by Astellas’ reasonable request) after the first notice under
Section 10.6.2 to elect to enforce such Aquinox Patent, Astellas Collaboration Patent or Joint Patent in the Licensed Territory against such Product Infringement. If Astellas does not so elect, then Astellas shall so notify Aquinox in writing,
and Aquinox shall have the right, but not the obligation, to commence a suit or take action to enforce the applicable Patent against such Third Party perpetrating such Product Infringement in the Licensed Territory. 

  
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 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

10.6.3.2 Aquinox shall have a period of [***] days (as may be extended by Aquinox’s reasonable request) after the first notice under
Section 10.6.2 to elect to enforce such Joint Patent or Astellas Collaboration Patent in the Retained Territory against such Product Infringement. If Aquinox does not so elect, then Aquinox shall so notify Astellas in writing, and Astellas
shall have the right, but not the obligation, to commence a suit or take action to enforce the applicable Joint Patent or Astellas Collaboration Patent against such Third Party perpetrating such Product Infringement in the Retained Territory.
Aquinox shall have no obligation, and Astellas shall have no right, to enforce the Aquinox Patents (other than the Joint Patents, as set forth above) in the Retained Territory. 

10.6.3.3 Each Party shall provide to the Party enforcing any such rights under this Section 10.6.3 reasonable assistance in such
enforcement, at such enforcing Party’s request and expense, subject to the limitations in Sections 10.6.3.4 and 10.6.3.5, including joining such action as a party plaintiff if required by Applicable Law to pursue such action. The enforcing
Party shall keep the other Party regularly informed of the status and progress of such enforcement efforts, shall reasonably consider the other Party’s comments on any such efforts, and shall seek consent of the other Party in any material
aspects of such enforcement including, without limitation, determination of litigation strategy and the filing of important papers to the competent court, which consent shall not be unreasonably withheld, conditioned, or delayed. The Party bringing
the action shall have final decision-making authority with respect to such action, subject to Section 10.6.4. 
 10.6.3.4 Each Party
shall bear all of its own internal costs incurred in connection with its activities under this Section 10.6.3, subject to reimbursement as set forth in Section 10.6.3.6. 

10.6.3.5 The Party not bringing an action with respect to Product Infringement under this Section 10.6.3 shall be entitled to separate
representation in such matter by counsel of its own choice and at its own expense, but such Party shall at all times cooperate fully with the Party bringing such action. 

10.6.3.6 Any recovery shall be allocated first pro rata to the reimbursement of any expenses incurred by the Parties in such litigation
(including reasonable expenses of outside counsel), and then (a) if Astellas was the Party bringing the suit, Astellas shall retain any remaining recovery, which, solely with respect to Product Infringement of an Aquinox Patent or Joint Patent
shall be treated as Net Sales [***] for purposes of Sections 9.3.2 and 9.4, respectively, and (b) if Aquinox was the Party bringing the suit, Aquinox shall retain any remaining recovery. 

10.6.4 Settlement. Astellas shall not settle any claim, suit or action that it brought under this Section 10.6 involving Aquinox
Patents (including Joint Patents) without the prior written consent of Aquinox, which consent shall not be unreasonably withheld, conditioned, or delayed. Aquinox shall not settle any claim, suit, or action that it brought under this
Section 10.6 involving Astellas Collaboration Patents or Joint Patents without the prior written consent of Astellas, which consent shall not be unreasonably withheld, conditioned, or delayed. Nothing in this ARTICLE X shall require Aquinox to
consent to any settlement that is reasonably anticipated by Aquinox to have a materially adverse impact upon any Aquinox Patent in the Retained Territory or the manufacture, use or sale of any Product in the Retained Territory. Nothing in this
ARTICLE 

  
 50 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

X shall require Astellas to consent to any settlement that is reasonably anticipated by Astellas to have a materially adverse impact upon any Astellas
Collaboration Patent in the Licensed Territory or the manufacture, use or sale of any Product in the Licensed Territory. 
 10.7
Infringement of Third Party Rights. 
 10.7.1 Notice; Astellas First Right in the Licensed Territory. If either Party becomes
aware that the manufacture, sale, or use of a Product in the Territory results in, or may result in, any claim, suit, or proceeding by a Third Party alleging patent infringement by either Party (or its Affiliates or (sub)licensees), such Party will
promptly notify the other Party thereof in writing. Subject to Section 10.7.2, Astellas will have the first right, but not the obligation, to defend and control the defense of any such claim, suit or proceeding in the Licensed Territory at its
own expense, using counsel of its own choice. Aquinox may participate in any such claim, suit or proceeding with counsel of its choice at its own expense. If Astellas elects (in a written communication submitted to Aquinox within a reasonable amount
of time after notice of the alleged patent infringement) not to defend or control the defense of, or otherwise fails to initiate and maintain the defense of, any such claim, suit or proceeding, within such time period so that Aquinox is not
prejudiced by any delays, Aquinox may conduct and control the defense of any such claim, suit or proceeding at its own expense. Each Party will keep the other Party reasonably informed of all material developments in connection with any such claim,
suit, or proceeding. Each Party agrees to provide the other Party with copies of all pleadings filed in such action and to allow the other Party reasonable opportunity to participate in the defense of the claims. If Astellas is controlling the
defense of any such claim, suit or proceeding, Astellas agrees to provide at Aquinox’s expense English translations, or summaries thereof, of all pleadings, discovery-requests, and key documents filed with the court reasonably promptly. 

10.7.2 Possible Claims in the Other Party’s Territory. 

10.7.2.1 Regardless of whether Aquinox elects to participate as a party in the claim, suit or proceeding, Astellas further agrees that, in the
event the claim, suit or preceding under Section 10.7.1 is brought by a Third Party that is pursuing or has threatened in writing to the knowledge of Astellas to pursue similar claims outside the Licensed Territory against Aquinox, its
Affiliates, agents or marketing or development partners and such claim is related to any Product, including any form or formulation thereof, Astellas shall: (a) provide to Aquinox at Aquinox’s expense English translation drafts of all
official papers or other statements (whether written or oral) prior to their submission to the court in the lawsuit, in sufficient time to allow Aquinox to review, consider and substantively comment thereon; (b) reasonably consider taking
action to incorporate Aquinox’s comments on all such official papers and statements, (c) not take positions in its defense that are inconsistent or at odds with positions that Aquinox is taking in defense, or anticipated defense, of
related claims outside the Licensed Territory, to the extent such positions have been communicated to Astellas; (d) allow Aquinox the opportunity to participate in preparation of witnesses or other participants in the claim, suit or proceeding;
(e) not settle any such claim, suit or proceeding without Aquinox’s prior consent, which consent shall not be unreasonably withheld or delayed, and (f) enter into a reasonable and customary joint defense agreement with Aquinox, upon
Aquinox’s request. 

  
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10.7.2.2 Regardless of whether Astellas elects to participate as a party in the claim, suit or proceeding, Aquinox further agrees that, in the
event the claim, suit or preceding under Section 10.7.1 is brought by a Third Party that is pursuing or has threatened in writing to the knowledge of Aquinox to pursue similar claims outside the Retained Territory against Astellas, its
Affiliates, agents or marketing or development partners and such claim is related to any Product, including any form or formulation thereof, Aquinox shall: (a) provide to Astellas at Astellas’ expense English translation drafts of all
official papers or other statements (whether written or oral) prior to their submission to the court in the lawsuit, in sufficient time to allow Astellas to review, consider and substantively comment thereon; (b) reasonably consider taking
action to incorporate Astellas’ comments on all such official papers and statements, (c) discuss in good faith with Astellas any proposed position that Aquinox wishes to take in its defense that is inconsistent or at odds with positions
that Astellas is taking in defense, or anticipated defense, of related claims outside the Retained Territory, to the extent such positions have been communicated to Aquinox; (d) allow Astellas the opportunity to participate in preparation of
witnesses or other participants in the claim, suit or proceeding; and (e) enter into a reasonable and customary joint defense agreement with Astellas, upon Astellas’ request. 

10.8 Patent Marking. Astellas shall not be required to mark such Products unless such markings or such notices would materially impact
recoveries of damages or equitable remedies available under Applicable Law with respect to infringements of patents in the Licensed Territory. 

10.9 Patent Oppositions and Other Proceedings. 

10.9.1 Challenges to Third-Party Patent Rights. If either Party desires to bring an opposition, action for declaratory judgment, nullity
action, invalidation action, interference, declaration for non-infringement, reexamination, or other attack upon the validity, title, or enforceability of a Patent owned or controlled by a Third Party and
having one or more claims that covers a Product, or the manufacture, use, sale, offer for sale, or importation of a Product, in each case in the Territory, (except insofar as such action is a counterclaim to or defense of, or accompanies a defense
of, a Third Party’s claim or assertion of infringement under Section 10.7, in which case the provisions of Section 10.7 shall govern), such Party shall so notify the other Party and the Parties shall promptly confer to determine
whether to bring such action or the manner in which to settle such action. Aquinox shall have the exclusive right, but not the obligation, to bring at its own expense and in its sole control such action in the Retained Territory and Astellas shall
have the exclusive right, but not the obligation, to bring at its own expense and in its sole control such action in the Licensed Territory. If Astellas does not bring such an action in the Territory, within [***] days of notification thereof
pursuant to this Section 10.9.1 (or earlier, if required by the nature of the proceeding), then Aquinox shall have the right, but not the obligation, to bring, at Aquinox’s sole expense, such action. The Party not bringing an action under
this Section 10.9.1 shall be entitled to separate representation in such proceeding by counsel of its own choice and at its own expense, and shall cooperate fully with the Party bringing such action at the request and expense of the Party
bringing such action. Any awards or amounts received in bringing any such action shall be allocated between the Parties as provided in Section 10.6.2.6. 

10.9.2 Parties’ Patent Rights. If a Aquinox Patent, Astellas Collaboration Patent or Joint Patent becomes the subject of any
proceeding commenced by a Third Party within the 

  
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Territory in connection with an opposition, reexamination request, action for declaratory judgment, nullity action, invalidation action, interference, or other
attack upon the validity, title, or enforceability thereof (except insofar as such action is a counterclaim to or defense of, or accompanies a defense of, an action for infringement against a Third Party under Section 10.6, in which case the
provisions of Section 10.6 shall govern), then the Party responsible for filing, preparing, prosecuting, and maintaining such Patent as set forth in Section 10.4 shall control such defense, provided, however, that the costs associated with
such defense shall be borne by the controlling Party. The controlling Party shall permit the non-controlling Party to participate in the proceeding to the extent permissible under Applicable Law, and to be
represented by its own counsel in such proceeding, at the non-controlling Party’s expense. If either Party decides that it does not wish to defend against such action, then the other Party shall have a
backup right to assume defense of such Third-Party action at its own expense. Any awards or amounts received in defending any such Third-Party action shall be allocated between the Parties as provided in Section 10.6.3.6. 

ARTICLE XI 

CONFIDENTIALITY 
 11.1
Nondisclosure. Except to the extent expressly authorized by this Agreement or otherwise agreed in writing by the Parties, during the Term and for [***] years following the end of the Term, the receiving Party shall keep confidential and shall
not publish or otherwise disclose and shall not use for any purpose other than as expressly provided for in this Agreement any Confidential Information of the other Party, and both Parties shall keep confidential and, subject to Sections 11.2, 11.3,
and 11.4, shall not publish or otherwise disclose the terms of this Agreement. Each Party may use the other Party’s Confidential Information solely to the extent required to accomplish the purposes of this Agreement, including exercising such
Party’s rights or performing its obligations under this Agreement. Each Party will use at least the same standard of care as it uses to protect proprietary or confidential information of its own (but no less than reasonable care) to ensure that
its employees, agents, consultants, contractors, and other representatives do not disclose or make any unauthorized use of the Confidential Information of the other Party. Each Party will promptly notify the other Party upon discovery of any
unauthorized use or disclosure of the Confidential Information of the other Party. 
 11.2 Authorized Disclosure. The receiving Party
may disclose Confidential Information belonging to the disclosing Party only to the extent such disclosure is reasonably necessary in the following instances: 

11.2.1 filing or prosecuting Patents as permitted by this Agreement, provided that Astellas may not use any Aquinox Confidential Information
in connection with the prosecution or enforcement of any Patent Controlled by Astellas unless such Patent is an Astellas Collaboration Patent subject to a license to Aquinox hereunder; 

11.2.2 filing Regulatory Filings in order to obtain or maintain Regulatory Approvals; 

11.2.3 prosecuting or defending litigation, including responding to a subpoena in a Third Party litigation; 

  
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11.2.4 complying with Applicable Laws or regulations (including regulations promulgated by securities exchanges) or court or administrative
orders; 
 11.2.5 to its Affiliates, sublicensees or prospective sublicensees, Third Party Partners, subcontractors or prospective
subcontractors, payors, consultants, agents, and advisors on a “need-to-know” basis in order for the receiving Party to exercise its rights or fulfill its
obligations under this Agreement, each of whom prior to disclosure must be bound by obligations of confidentiality and restrictions on use of such Confidential Information that are no less restrictive than those set forth in this ARTICLE XI;
provided, however, that, in each of the above situations, the receiving Party shall remain responsible for any failure by any Third Party who receives Confidential Information pursuant to this Section 11.2 to treat such Confidential Information
as required under this ARTICLE XI; or 
 11.2.6 to bona fide potential and actual investors, acquirors, merger partners, licensees, and
other financial or commercial partners solely for the purpose of evaluating or carrying out an actual or potential investment, acquisition, or collaboration, in each case under written obligations of confidentiality and non-use at least as stringent as those herein, provided that the confidentiality term therefor shall not be less than [***] years. 

11.2.7 Notwithstanding the foregoing, in the event a Party is required to make a disclosure of the other Party’s Confidential Information
pursuant to Sections 11.2.2 through 11.2.4, it will, except where impracticable, give reasonable advance notice to the other Party of such disclosure, reasonably consider the comments of the other Party with respect to limiting such disclosure, and
use efforts to secure confidential treatment of such Confidential Information at least as diligent as such Party would use to protect its own confidential information, but in no event less than reasonable efforts. In any event, the Parties agree to
take all reasonable action to avoid the non-confidential disclosure of Confidential Information hereunder. Any information disclosed pursuant to Sections 11.2.2 through 11.2.4 shall remain the Confidential
Information of the disclosing Party and subject to the restrictions set forth in this Agreement, including the foregoing provisions of this ARTICLE XI. 

11.3 Publications. 

11.3.1 Prior to public disclosure or submission for publication of a proposed publication describing the results of any scientific or clinical
activity relating to, in the case of Astellas, a Product, or in the case of Aquinox, any Development activity conducted under a Development Plan, the Party disclosing or submitting such proposed publication (the “Submitting
Party”) shall send the other party (the “Responding Party”) a copy of the proposed publication to be submitted at least [***] days prior to the submission and shall allow the Responding Party a
reasonable time period (but no less than [***] Business Days, or [***] Business Days for an abstract, from the date of the Responding Party’s receipt) in which to determine whether the proposed publication contains subject matter for which
patent protection should be sought (prior to publication of such proposed publication) for the purpose of protecting an invention, or whether the proposed publication contains the Confidential Information of the Responding Party. Following the
expiration of the applicable time period for review, the Submitting Party shall be free to submit such proposed publication for publication or otherwise disclose to the public such scientific or clinical results, subject to the procedures set forth
in Section 

  
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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

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11.3.2. Any publication by Astellas relating this Agreement shall be in compliance with Astellas’ Global Publication Policy dated April 29, 2016, as
may be amended from time to time, and other applicable Astellas publication policies. Aquinox shall reasonably consider complying with the Astellas Publication Policy at Astellas’ request for a particular publication. Notwithstanding the
foregoing, if such public disclosure or submission is for registration clinical data to CTD Database, the Responding Party’s review time shall be no less than [***] Business Days, or [***] Business Days for an abstract, from the date of the
Responding Party’s receipt of the proposed disclosure or submission. 
 11.3.2 If the Responding Party believes that the subject matter
of the proposed publication or other disclosure contains Confidential Information or a patentable invention of the Responding Party, then prior to the expiration of the applicable time period for review, the Responding Party shall notify the
Submitting Party in writing of its determination that such proposed publication or other disclosure, as applicable, contains such information or subject matter for which patent protection should be sought. Upon receipt of such written notice from
the Responding Party, the Submitting Party shall delay public disclosure of such information or submission of the proposed publication for an additional period of [***] days (or such other time period mutually agreed by the Parties in writing) to
permit preparation and filing of a patent application on the disclosed subject matter. The Submitting Party shall thereafter be free to publish or disclose such information, except that the Submitting Party may not disclose any Confidential
Information of the Responding Party in violation of Section 11.1. 
 11.4 Publicity. 

11.4.1 The Parties agree that the material terms of this Agreement are deemed to be the Confidential Information of both Parties, subject to
the special authorized disclosure provisions set forth below in this Section 11.4 and in Section 11.2. The Parties have agreed to make a joint public announcement in English of the execution of this Agreement within one (1) Business
Day after the Effective Date. Astellas shall be permitted to make a public announcement in Japanese of the execution of this Agreement substantially in the form and with the content of the English press release. 

11.4.2 After release of such initial press release, if either Party desires to make a public announcement concerning the material terms of
this Agreement, such Party shall give reasonable prior advance notice of the proposed text of such announcement to the other Party for its prior review and approval (except as otherwise provided herein), such approval not to be unreasonably withheld
or delayed. A Party commenting on such a proposed press release shall provide its comments, if any, within [***] Business Days after receiving the press release for review, or such shorter period as may be required in exigent circumstances. Where
required by Applicable Law or by the regulations of the applicable securities exchange upon which a Party may be listed, such Party shall have the right to make a press release announcing the achievement of each milestone under this Agreement as it
is achieved, the achievements of Regulatory Approvals in the Territory as they occur, and other material events occurring pursuant to this Agreement, subject only to the review procedure set forth in the preceding sentence. In relation to
Astellas’ review of such an announcement, Astellas may make specific, reasonable comments on such proposed press release within the prescribed time for commentary, but shall not withhold its consent to disclosure of the information that the
relevant milestone has been achieved and 

  
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triggered a payment hereunder or is otherwise required to be disclosed by Applicable Laws or the rules of an applicable securities exchange. Neither Party
shall be required to seek the permission of the other Party to repeat any information regarding the terms of this Agreement that has already been publicly disclosed by such Party, or by the other Party, in accordance with this Section 11.4.2,
provided such information continues as of such time to be accurate. 
 11.4.3 The Parties acknowledge that Aquinox will be obligated to file
a copy of this Agreement with the U.S. Securities and Exchange Commission (the “SEC”) or other applicable entity having regulatory authority over Aquinox securities or the exchange thereof, as a material agreement of Aquinox.
Aquinox shall be entitled to make such a required filing, provided that it requests confidential treatment of certain commercial terms and sensitive technical terms hereof to the extent such confidential treatment is reasonably available to Aquinox,
and to the extent consistent with the legal requirements governing redaction of information from material agreements that must be publicly filed. In the event of any such filing, Aquinox will provide Astellas with a copy of the Agreement marked to
show provisions for which Aquinox intends to seek confidential treatment and shall reasonably consider and incorporate Astellas’ comments thereon to the extent consistent with the legal requirements governing redaction of information from
material agreements that must be publicly filed. Astellas will as promptly as practical provide any such comments. Astellas recognizes that Applicable Laws and SEC policies and regulations to which Aquinox is and may become subject to may require
Aquinox to publicly disclose certain terms of this Agreement that Astellas may prefer not be disclosed, and that Aquinox is in all cases entitled hereunder to make such required disclosures to the extent necessary to comply with such U.S. laws and
SEC policies and regulations. 
 ARTICLE XII 

REPRESENTATIONS, WARRANTIES, & COVENANTS 

12.1 Mutual Representations and Warranties. Each Party hereby represents and warrants to the other Party that as of the Effective Date:

 12.1.1 Corporate Existence and Power. It is a company or corporation duly organized, validly existing, and in good standing under
the laws of the jurisdiction in which it is incorporated, and has full corporate power and authority and the legal right to own and operate its property and assets and to carry on its business as it is now being conducted and as contemplated in this
Agreement, including, without limitation, the right to grant the licenses granted by it hereunder. 
 12.1.2 Authority and Binding
Agreement. As of the Effective Date, (a) it has the corporate power and authority and the legal right to enter into this Agreement and perform its obligations hereunder; (b) it has taken all necessary corporate action on its part
required to authorize the execution and delivery of the Agreement and the performance of its obligations hereunder; and (c) this Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid, and binding
obligation of such Party that is enforceable against it in accordance with its terms. 
 12.1.3 No Conflict; Covenant. It is not a
party to any agreement that would materially prevent it from granting the rights granted to the other Party under this Agreement or 

  
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performing its obligations under this Agreement. During the Term of this Agreement, each Party covenants that it will not enter into any contractually binding
agreement which would in any way materially impair its ability to complete its obligations under this Agreement in a timely fashion. 

12.1.4 No Debarment. In the course of the Development of Products, neither Party shall use, during the term of this Agreement, any
employee or consultant who has been debarred by any Regulatory Authority, or, to such Party’s knowledge, is the subject of debarment proceedings by a Regulatory Authority. 

12.2 Aquinox Representation and Warranty. Aquinox represents and warrants to Astellas that, as of the Effective Date and to
Aquinox’s knowledge: 
 12.2.1 it has the rights under the Aquinox Technology to grant the licenses to Astellas as purported to be
granted pursuant to this Agreement; 
 12.2.2 all Aquinox Patents that Cover Rosiptor in the Licensed Territory are listed in Exhibit 6;

 12.2.3 the use or practice of the Aquinox Technology by Astellas as contemplated in this Agreement will not infringe any Patents owned or
controlled by a Third Party, and Aquinox has not received any written notice from a Third Party asserting or alleging any of the foregoing; 

12.2.4 Aquinox is not subject to any agreement with a Third Party that includes any restriction or limitation in favor of such Third Party
with respect to Astellas’ rights to practice the Aquinox Technology and its right and ability to perform its obligations under this Agreement; and 

12.2.5 [***]. 
 12.3 Astellas
Representation, Warranty and Covenant. Astellas represents and warrants to Aquinox that, as of the Effective Date, neither Astellas nor any of its Affiliates Control any Patent that Covers the manufacture, use or sale of any Product in the
Territory. Astellas covenants that it will notify Aquinox within [***] days of acquiring Control of any Patent that Covers the manufacture, use or sale of any Product in the Territory (other than a Patent that is subject to Section 10.4)
following the Effective Date. 
 12.4 Limitation on Warranties; No Implied Warranties. EXCEPT AS EXPRESSLY PROVIDED IN THIS
AGREEMENT, EACH PARTY MAKES NO AND EXPRESSLY DISCLAIMS ALL OTHER REPRESENTATIONS AND WARRANTIES WITH RESPECT TO ANY SUBJECT MATTERS OF THIS AGREEMENT (INCLUDING THE COMPOUNDS, PRODUCTS AND INTELLECTUAL PROPERTY LICENSED HEREUNDER), WHETHER EXPRESS,
IMPLIED, OR STATUTORY, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OR NON-MISAPPROPRIATION OF THIRD PARTY INTELLECTUAL
PROPERTY RIGHTS. 

  
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ARTICLE XIII 

INDEMNIFICATION AND INSURANCE 

13.1 Indemnification by Aquinox. Subject to Section 7.3.2, Aquinox shall defend, indemnify, and hold Astellas and its Affiliates,
and Astellas’ and its Affiliates’ officers, directors, employees, and agents (the “Astellas Indemnitees”) harmless from and against any and all Third Party claims, suits, proceedings, damages, expenses (including court
costs and reasonable attorneys’ fees and expenses), and recoveries (collectively, “Claims”) to the extent that such Claims arise out of, are based on, or result from (a) the Development, Manufacture or Commercialization of, or
the Medical Affairs activities conducted with respect to, any Product by Aquinox or its Affiliates, distributors, or licensees (other than Astellas) (the “Aquinox Group”); (b) a breach of any of Aquinox’s representations, warranties.
covenants or obligations under this Agreement; or (c) the willful misconduct or negligent acts of Aquinox, its Affiliates, or the officers, directors, employees, or agents of Aquinox or its Affiliates. The foregoing indemnity obligation shall
not apply to the extent that (i) the Astellas Indemnitees fail to comply with the indemnification procedures set forth in Section 13.3 and Aquinox’s defense of the relevant Claims is prejudiced by such failure, or (ii) to the
extent that any Claim arises from, is based on, or results from (A) the Development, Manufacture or Commercialization of, or the Medical Affairs activities conducted with respect to, any Product by any member of the Astellas Group; (B) a
breach of any of Astellas’ representations, warranties, covenants or obligations under this Agreement; or (C) the willful misconduct or negligent acts of any Astellas Indemnitee. 

13.2 Indemnification by Astellas. Astellas shall defend, indemnify, and hold Aquinox, its Affiliates and Aquinox’s and its
Affiliates’ officers, directors, employees, and agents (the “Aquinox Indemnitees”) harmless from and against any and all Claims to the extent that such Claims arise out of, are based on, or result from (a) the Development,
Manufacture or Commercialization of, or the Medical Affairs activities conducted with respect to, any Product by Astellas or its Affiliates, or its or their Sublicensees, contractors, or distributors (the “Astellas Group”); (b) a
breach of any of Astellas’ representations, warranties, covenants or obligations under this Agreement; or (c) the willful misconduct or negligent acts of any Astellas Indemnitee. The foregoing indemnity obligation shall not apply to the
extent that (i) the Aquinox Indemnitees fail to comply with the indemnification procedures set forth in Section 13.3 and Astellas’ defense of the relevant Claims is prejudiced by such failure, or (ii) to the extent that any Claim
arises from, is based on, or results from (A) the Development, Manufacture, or Commercialization of, or the Medical Affairs activities conducted with respect to, any Product by any member of the Aquinox Group; (ii) a breach of any of
Aquinox’s representations, warranties, and obligations under this Agreement; or (iii) the willful misconduct or negligent acts of any Aquinox Indemnitee. 

13.3 Indemnification Procedures. The Party claiming indemnity under this ARTICLE XIII (the “Indemnified Party”) shall
give written notice to the Party from whom indemnity is being sought (the “Indemnifying Party”) promptly after learning of such Claim and shall tender the defense of such Claim to the Indemnifying Party. The Indemnified Party shall
provide the Indemnifying Party with reasonable assistance, at the Indemnifying Party’s expense, in connection with the defense of the Claim for which indemnity is being sought. The Indemnified Party may participate in and monitor such defense
with counsel of its own choosing at its sole expense. The Indemnifying Party shall not settle any claim without the prior written consent of the Indemnified Party, not to be unreasonably withheld, conditioned, or delayed, unless the settlement
involves 

  
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only the payment of money, and no admission of wrong-doing or fault by the Indemnified Party. The Indemnified Party shall not settle any such claim without the
prior written consent of the Indemnifying Party. 
 13.4 Non-Exclusive Remedy. Neither Party
shall be obligated to claim indemnification from the other Party under this Article XIII, and such injured Party retains all rights to defend itself against any such Claim and pursue in turn any claims against the other Party it may have in law or
equity related to or arising from such Claim. 
 13.5 Limitation of Liability. NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY
SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE, OR INDIRECT DAMAGES ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS SECTION 13.5 IS
INTENDED TO OR SHALL LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF ANY PARTY UNDER SECTION 13.1 OR 13.2, OR DAMAGES AVAILABLE FOR A PARTY’S BREACH OF CONFIDENTIALITY OBLIGATIONS IN ARTICLE XI OR RESULTING FROM GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT BY A PARTY. 
 13.6 Insurance. Each Party shall procure and maintain insurance or self-insurance, including
product liability insurance, adequate to cover its obligations hereunder and which are consistent with normal business practices of prudent companies similarly situated at all times during which any Product is being clinically tested in human
subjects or commercially distributed or sold by such Party. It is understood that such insurance shall not be construed to create a limit of either Party’s liability with respect to its indemnification obligations under this ARTICLE XIII. Each
Party shall provide the other Party with written evidence of such insurance upon request. Each Party shall provide the other Party with written notice at least [***] days prior to the cancellation,
non-renewal, or material change in such insurance or self-insurance which materially adversely affects the rights of the other Party hereunder. 

ARTICLE XIV 
 TERM AND
TERMINATION 
 14.1 Term. This Agreement shall become effective on the Effective Date and, unless earlier terminated pursuant to
this Article XIV, shall remain in effect until the expiration of all Royalty Terms in all countries in the Territory (the “Term”). Following the expiration of each Royalty Term with respect to a Product in country, Astellas shall
have a fully paid non-exclusive license under the Aquinox Know-How to make, use, sell and import such Product in such country. 

14.2 Early Termination. 

14.2.1 Termination for Convenience. 

14.2.1.1 Astellas shall have the right to terminate this Agreement in its entirety for any or no reason upon six (6) months’ written
notice to Aquinox prior to First Commercial Sale, and upon twelve (12) months’ written notice to Aquinox if after First Commercial Sale. 

  
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14.2.1.2 Astellas shall have the right to terminate this Agreement upon ninety (90) days written notice to Aquinox, on a country-by-country basis, if Astellas determines that it is not commercially feasible to develop or commercialize Rosiptor or Products containing Rosiptor in such country.

 14.2.2 Effect of Unilateral Termination. If Astellas terminates this Agreement pursuant to Section 14.2.1 

14.2.2.1 Astellas shall not, during the notice period for such termination, take any action that could reasonably be expected to have a
material adverse impact on the further Development and Commercialization of the Product; provided, however, that Astellas shall have the right to take any actions it deems reasonably necessary or appropriate to avoid any human health or safety
problems; 
 14.2.2.2 Astellas shall be required to perform any outstanding obligations of Astellas that existed or accrued prior to the
effective date of termination; and 
 14.2.2.3 the JSC shall coordinate the wind-down of Astellas’ efforts under this Agreement and
the provisions of Section 14.4 shall apply. 
 14.3 Termination for Breach. Aquinox shall have the right to terminate this
Agreement upon written notice to Astellas if Astellas, after receiving written notice from Aquinox identifying such material breach, by Astellas, fails to cure such breach within [***] days from the date of such notice (or within [***] days’
notice in the event such breach is solely based upon Astellas’ failure to pay any amounts due Aquinox hereunder). Astellas shall have the right to terminate this Agreement upon written notice to Aquinox if Aquinox, after receiving written
notice identifying a material breach by Aquinox of its obligations under this Agreement, fails to cure such breach within [***] days from the date of such notice. 

14.4 Aquinox Rights upon Termination of the Agreement. Upon the early termination of this Agreement by Astellas under
Section 14.2.1, or by Aquinox under Section 14.3 due to Astellas’ material uncured breach, the following shall apply (in addition to any other rights and obligations under Section 14.2 or Section 14.3 or otherwise under this
Agreement with respect to such termination); provided that in the event of a termination under Section 14.2.1.2, the following shall apply only with respect to the country(ies) to which such termination applies: 

14.4.1 Regulatory Materials. To the extent permitted by Applicable Laws, Astellas shall transfer and assign to Aquinox all Regulatory
Filings and Regulatory Approvals for the Products in the Licensed Territory, free and clear of any liens or encumbrances. 
 14.4.2
Astellas License. Astellas hereby grants to Aquinox, effective only in event of such termination, an exclusive, perpetual, irrevocable, fully paid-up license, with the right to grant multiple tiers of
sublicenses, under the Necessary Astellas Technology and Astellas Collaboration Technology, to research, Develop, Manufacture, have Manufactured, use, Commercialize, import, export and otherwise exploit any Products in the Territory, which license
shall be effective as of the date of such termination. 

  
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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

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14.4.3 Transition Assistance. Astellas shall provide such assistance, at Aquinox’s cost, as may be reasonably necessary to transfer
or transition over a reasonable period of time to Aquinox all Astellas Know-How and Astellas Collaboration Inventions, or then-existing commercial contractual arrangements (if permitted by the terms of such
contracts), that is, or are, necessary or useful for Aquinox to commence or continue Developing, conducting Manufacturing of, or Commercializing Products worldwide, to the extent Astellas is then performing or having performed such activities,
including without limitation transferring, upon request of Aquinox, any agreements or arrangements with Third Party suppliers or vendors to supply or sell Products in the Licensed Territory. To the extent that any contract between Astellas and a
Third Party for the supply of a Product for the Licensed Territory is not assignable to Aquinox, then Astellas shall reasonably cooperate with Aquinox, at Aquinox’s cost, to arrange to continue to obtain such supply from such entity. 

14.4.4 Remaining Inventories. Aquinox shall have the right to purchase from Astellas all of the inventory of Products held by Astellas
as of the effective date of termination or expiration of this Agreement at a price equal to Astellas’ Manufacturing Cost (applied mutatis mutandis) for such Product (which, for Product purchased by Astellas from Aquinox shall be the same as
Aquinox’s Manufacturing Cost therefor). Aquinox shall notify Astellas whether Aquinox elects to exercise such right within [***] days after receiving notice from Astellas reporting such inventory as of the date of termination or expiration of
the Agreement. If Aquinox does not exercise such right, Astellas shall have the right to sell in the Territory any such remaining inventory in accordance with Applicable Laws over a period of no greater than [***] months after the effective date of
termination of this Agreement. 
 14.5 Survival. The following provisions shall survive any expiration or termination of this
Agreement: Sections 2.2.1(b), 2.2.2(b), 2.12, 9.2, 9.5 and 9.6 (solely with respect to Product sales occurring prior to or following such expiration or termination), 9.7, 9.8, 9.9, 10.1, 10.3, 10.4.7, 14.4 and 14.5, and Articles XI, XIII, XV and
XVI. Termination or expiration of this Agreement for any reason shall be without prejudice to any rights that shall have accrued to the benefit of any Party prior to such termination, relinquishment or expiration, and any and all damages or remedies
arising from any breach hereunder. 
 ARTICLE XV 

DISPUTE RESOLUTION 
 15.1
Disputes. The Parties recognize that disputes as to certain matters may from time to time arise during the Term which relate to either Party’s rights and/or obligations hereunder. It is the Parties’ objective to establish
procedures to facilitate the resolution of disputes arising under this Agreement in an expedient manner by mutual cooperation and without resort to litigation. To accomplish this objective, the Parties agree to follow the procedures set forth in
this ARTICLE XV to resolve any controversy or claim arising out of, relating to, or in connection with any provision of this Agreement if and when a dispute arises under this Agreement. 

15.2 Negotiation by Executive Officers. With respect to all disputes arising between the Parties, including, without limitation,
any alleged failure to perform, or breach, of this Agreement, or any issue relating to the interpretation or application of this Agreement, or any question regarding its existence, validity or termination, if the Parties are unable to resolve such

  
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IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

dispute within [***] days after such dispute is first identified by either Party in writing to the other Party, the Parties shall refer such dispute to the
Executive Officers for attempted resolution by good faith negotiations. The Parties shall start negotiation by the Executive Officers within [***] Business Days after the receipt of such identification in writing, and attempt to resolve such dispute
within [***] days after the start of such negotiation. 
 15.3 Binding Arbitration. If the Executive Officers are not able to
resolve such dispute referred to them under Section 15.2 within such [***] day period, and subject to Section 15.4, such dispute shall be resolved through binding arbitration, which arbitration may be initiated by either Party at any time
after the conclusion of such period, on the following basis: 
 15.3.1 The seat, or legal place, of arbitration shall be New York City, New
York, USA. The language of the arbitration shall be English. 
 15.3.2 The arbitration shall be made in accordance with the current Rules of
Arbitration of International Chamber of Commerce (ICC). The arbitration shall be conducted by a single arbitrator selected jointly by the Parties, provided that if the Parties cannot agree on a single arbitrator within [***] days of initiating
arbitration proceedings under this Section 15.3 (or such longer period as the Parties may agree), then the arbitration shall be conducted by three (3) arbitrators, with one (1) arbitrator selected by each Party and the arbitrators so
selected selecting the third arbitrator. Unless otherwise agreed by the Parties, each arbitrator shall have at least fifteen (15) years of experience in the subject matter of such arbitration. 

15.3.3 Judgment upon the award rendered by such arbitrator(s) shall be binding on the Parties and may be entered by any court or forum having
jurisdiction. 
 15.3.4 Either Party may apply to the arbitrator(s) for interim injunctive relief until the arbitration award is rendered or
the controversy is otherwise resolved. Further, either Party also may, without waiving any remedy under this Agreement, seek from any court having jurisdiction any injunctive or provisional relief necessary to protect the rights or property of such
Party pending the arbitration award. 
 15.3.5 The arbitrator(s) shall have no authority to award punitive or any other type of damages not
measured by a Party’s compensatory damages. 
 15.3.6 Each Party shall bear its own costs and expenses and attorneys’ fees and an
equal share of the arbitrator(s)’ and any administrative fees of arbitration. 
 15.3.7 The existence and content of the arbitral
proceedings and any rulings or award shall be kept confidential except (a) to the extent that disclosure may be required of a Party to fulfill a legal duty, protect or pursue a legal right, or enforce an award in bona fide legal proceedings
before a state court or other judicial authority, or (b) with the written consent of the Parties. Notwithstanding anything to the contrary, either Party may disclose matters relating to the arbitration or the arbitral proceedings where
necessary for the preparation or presentation of a claim or defense in such arbitration. 

  
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 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

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15.3.8 In no event shall an arbitration be initiated after the date when commencement of a legal or equitable proceeding based on the dispute,
controversy, or claim would be barred by the applicable statute of limitations. 
 15.4 Expedited Arbitration. Any
dispute under Section 3.3.2.1 or 3.3.2.2 as to whether a Party’s decision would have a “material adverse effect” as described in such Section shall be subject to the expedited arbitration procedures set forth in Exhibit 7. 

15.5 Patent and Trademark Dispute Resolution. Any dispute, controversy, or claim relating to the scope, validity,
enforceability, or infringement of any patent rights covering the manufacture, use, or sale of any Product or of any trademark rights relating to any Product shall be submitted to a court of competent jurisdiction in the country or jurisdiction in
which such patent or trademark rights were granted or arose. 
 ARTICLE XVI 

OTHER PROVISIONS 
 16.1
Governing Law. This Agreement and all disputes arising out of or related to this Agreement or any breach hereof shall be governed by, and construed and enforced in accordance with, the laws of the State of New York, United States,
without reference to its conflicts of law principles. The Parties hereby agree to exclude the application of the United Nations Convention on Contracts for the International Sale of Goods. 

16.2 Performance Through Affiliates. Each Party may discharge any obligation and exercise any right hereunder through any of its
Affiliates (without an assignment of this Agreement). Each Party shall remain directly liable to the other Party with respect to the performance of any of its Affiliates. 

16.3 Force Majeure. Both Parties will be excused from the performance of their obligations under this Agreement, other than the
obligation to make monetary payments, and neither Party will be held liable or responsible to the other Party nor be deemed to have defaulted under or breached this Agreement for failure or delay in fulfilling or performing any term of this
Agreement, to the extent that such performance is prevented by force majeure and the nonperforming Party promptly provides notice thereof to the other Party. Such excuse will be continued so long as the condition constituting a force majeure event
continues and the nonperforming Party uses reasonable efforts to remove the condition; provided that if such force majeure event continues for more than [***] days, then either Party may terminate this Agreement upon [***] days prior written notice
to the other Party. For purposes of this Agreement, a force majeure event will include conditions beyond the reasonable control and without the fault of a Party, such as an act of God, voluntary or involuntary compliance with any regulation, law, or
order of any government, war, an act of terrorism, civil commotion, labor strike or lock-out, epidemic, failure or default of public utilities or common carriers, destruction of production facilities or
materials by fire, earthquake, storm, or like catastrophe, inability to procure necessary raw materials in a commercially reasonable manner or default of suppliers or sub-contractors; provided, however, the
payment of invoices due and owing hereunder may not be delayed by the payor because of a force majeure affecting the payor. 

  
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 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

16.4 Assignment. 
 16.4.1
Neither this Agreement nor any obligation of a Party hereunder may be assigned by either Party without the prior written consent of the other Party; provided, however, that either Party may assign this Agreement in its entirety without such consent
to (i) any of its Affiliates, or (ii) any purchaser of all, or substantially all, of its assets to which this Agreement relates, or (iii) any successor corporation resulting from any merger, consolidation, share exchange, or other
similar transaction, provided that any such successor corporation shall assume all obligations of its assignor under this Agreement and provided further that either Party may assign or sell its rights to receive any amounts due hereunder. This
Agreement will inure to the benefit of Astellas and Aquinox and their respective successors and permitted assigns. Any assignment of this Agreement that is not made in accordance with this Section 16.4 shall be null and void and of no legal
force or effect. 
 16.4.2 Notwithstanding anything herein to the contrary, in the event of (a) a transaction by a Party described in
Section 16.4.1(ii) or (iii), or (b) the acquisition by a Party or any of its Affiliates of all or substantially all of the business of a Third Party (such Third Party, an “Acquiree”), whether by merger, consolidation,
divestiture, restructure, sale of stock, sale of assets or otherwise, the intellectual property of the acquiring entity or the Acquiree, as applicable, and their respective Affiliates, as such intellectual property exists immediately prior to the
consummation of such transaction or is developed or acquired thereafter without use of the other Party’s Confidential Information, Know-How or Patents, shall not be included in the intellectual property
licensed hereunder or otherwise subject to this Agreement. 
 16.5 Severability. In the event any one or more of the
provisions contained in this Agreement should be held invalid, illegal, or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions contained herein will not in any way be affected or impaired thereby. The
Parties will in such an instance use their best efforts to replace the invalid, illegal or unenforceable provision(s) with valid, legal, and enforceable provision(s) that implement the purposes of this Agreement. 

16.6 Notices. Any notice to be given under this Agreement must be in writing and delivered either in person, or by (i) air
mail (postage prepaid) requiring return receipt, (ii) overnight courier, or (iii) facsimile confirmed thereafter by any of the foregoing, to the Party to be notified at its address(es) given below, or at any address such Party may
designate by prior written notice to the other Party in accordance with this Section 16.6. Notice shall be deemed sufficiently given for all purposes upon the earliest of: (a) the date of actual receipt; (b) if air mailed, [***] days
after the date of postmark; (c) if delivered by overnight courier, the next day the overnight courier regularly makes deliveries or (d) if sent by facsimile, the date of confirmation of receipt if during the recipient’s normal
business hours, otherwise the next business day. 
 If to Aquinox, notices must be addressed to: 

Aquinox Pharmaceuticals (Canada), Inc. 

450-887 Great Northern Way 

Vancouver, B.C. 
 Canada V5T 4T5

  
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 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

Attention: President & CEO 

With a copy to (which shall not constitute notice): 

Cooley LLP 
 3175 Hanover Street

 Palo Alto, CA 94304-1130 

Attention: Michael E. Tenta 
 Tel:
650-843-5000 
 Fax: 650-849-7400 
 If to Astellas, notices must be addressed to: 

ASTELLAS US LLC 
 1 Astellas Way

 Northbrook, IL 60062 

Attention: Vice President and Legal Head 

Business Development & Alliance Management 

Tel: [***] 
 Fax: [***] 

With a copy to (which shall not constitute notice): 

Astellas Pharma Inc. 
 5-1, Nihonbashi-Honcho 2-Chome 

Chuo-ku, Tokyo 103-8411, Japan 

Attention: Corporate Vice President, Business Development 

Facsimile: [***] 
 16.7 Time
of the Essence. Each Party depends upon the other Party’s timely performance of its obligations hereunder and, therefore, time is of the essence with regard to the other Party’s performance hereunder. 

16.8 Entire Agreement; Amendments. This Agreement, including the schedules, contains the entire understanding of the Parties
with respect to the subject matter herein. This Agreement supersedes all prior and contemporaneous agreements and communications, whether oral, written, or otherwise, concerning any and all matters contained herein. Except as expressly set forth
herein, this Agreement may be amended or modified only by a written instrument duly executed by both Parties. 
 16.9 Relationship of the
Parties. It is expressly agreed that Aquinox and Astellas are independent contractors and that the relationship between the two Parties will not constitute a partnership, joint venture, or agency. Neither Aquinox nor Astellas will have
the authority to make any statements, representations, or commitments of any kind, or to take any action, which will be binding on the other Party, without the prior written consent of the other Party. Nothing contained in this Agreement shall be
deemed to make any member of the JSC or any subcommittee (or any other committees or working groups) a partner, agent, or legal representative of the other Party, or 

  
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 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

to create any fiduciary relationship for any purpose whatsoever. Except as may be explicitly provided this Agreement, no member of the JSC, any subcommittee
(or any other committee or working group) will have any authority to act for, or to assume any obligation or responsibility on behalf of, any other member of (or any other committee or working group) of the other Party. No Party shall report the
relationship between the Parties arising under this Agreement as a partnership for United States tax purposes without the prior written consent of the other Party unless required by a final “determination” as defined in Section 1313
of the United States Internal Revenue Code of 1986, as amended. 
 16.10 Waiver. The waiver by either Party of any right
hereunder or of the failure to perform or of a breach by the other Party shall not be deemed a waiver of any other right hereunder or of any other breach or failure by such other Party whether of a similar nature or otherwise. Any waiver by a Party
of a particular term or condition will be effective only if set forth in a written instrument duly executed by or on behalf of the Party waiving such term or condition. 

16.11 Third Party Beneficiaries. Except as otherwise expressly provided in this Agreement, nothing herein expressed or implied
is intended or will be construed to confer upon or to give to any Third Party any rights or remedies by reason of this Agreement. Except as otherwise expressly provided in this Agreement, there are no intended Third Party beneficiaries under or by
reason of this Agreement. 
 16.12 Further Assurances. Upon the other Party’s request, each Party agrees to
execute, acknowledge, and deliver such further instruments, and to do all such other acts, as may be reasonably agreed by the Parties as necessary or appropriate to carry out the purposes and intent of this Agreement. 

16.13 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument. This Agreement may be executed and delivered electronically or by facsimile and upon such delivery such electronic or facsimile signature will be deemed to have the same effect as
if the original signature had been delivered to the other Party. 
 16.14 Interpretation. The headings of clauses contained in
this Agreement preceding the text of the sections, subsections and paragraphs hereof are inserted solely for convenience and ease of reference only and shall not constitute any part of this Agreement, or have any effect on its interpretation or
construction. All references in this Agreement to the singular shall include the plural where applicable. Unless otherwise specified, references in this Agreement to any Article shall include all Sections, subsections, and paragraphs in such
Article, references to any Section shall include all subsections and paragraphs in such Section, and references in this Agreement to any subsection shall include all paragraphs in such subsection. The word “including” and similar words
means including without limitation. The word “or” means “and/or” unless the context dictates otherwise because the subjects of the conjunction are mutually exclusive. The words “herein,” “hereof,” and
“hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Section or other subdivision. All references to days in this Agreement mean calendar days, unless otherwise specified. Ambiguities
and uncertainties in this Agreement, if any, shall not be interpreted against either Party, irrespective of which Party may be deemed to have caused the ambiguity or uncertainty to exist. This Agreement has been prepared 

  
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 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

in the English language and the English language shall control its interpretation. In addition, all notices required or permitted to be given hereunder, and
all written, electronic, oral, or other communications between the Parties regarding this Agreement shall be in the English language. 

{Signature Page Follows} 

  
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 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

IN WITNESS WHEREOF, the Parties have executed this Exclusive License and Collaboration Agreement to be effective as of the Effective
Date. 
  

									
	AQUINOX PHARMACEUTICALS
(CANADA), INC.	 		 	ASTELLAS US LLC

									
					
	By:	 	 /s/ David Main
	 		 	By:	 	 /s/ Percival Barretto-Ko

			
	Name: David Main	 		 	Name: Percival Barretto-Ko
			
	Title: President & CEO	 		 	Title: President

  

SIGNATURE PAGE TO EXCLUSIVE LICENSE AND
COLLABORATION AGREEMENT 

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

Exhibit 1: 
 [***]

  

 [***] = ONE PAGE OF CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

Exhibit 2: 
 [***]

  

 [***] = ONE PAGE OF CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

Exhibit 3: 
 Chemical
Structure of Rosiptor 
 [***] 

  

 [***] = ONE PAGE OF CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

Exhibit 4: 
 [***]

  

 [***] = ONE PAGE OF CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

Exhibit 5: 
 [***]

  

 [***] = ONE PAGE OF CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

Exhibit 6: 
 List of
Aquinox Patents 
 [***] 

  

 [***] = TWO PAGES OF CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

Exhibit 7: 
 Expedited
Arbitration Procedures (Per Section 15.4) 
  

	1.	 If (i) [***] (an “Aquinox Material Adverse Effect”), or (b) Astellas believes that [***]
(an “Astellas Material Adverse Effect”) (each of (a) and (b), a “Challenge”), then the Party believing that there would be such a material adverse effect (the “Challenging Party”) shall have
the right, but not the obligation, to notify the other Party (the “Challenged Party”) in writing of such belief (a “Challenge Notice”). Such Challenge Notice shall set forth in reasonable detail the Challenging
Party’s basis for such belief, including any supporting materials. 

  

	2.	 If a Challenge Notice is provided as set forth above, such dispute shall be finally settled by an impartial and
independent Third Party expert (the “Expert”). The Expert shall be an expert in the field of pharmaceutical product Development and Commercialization as mutually agreed upon by the Parties in good faith. Before accepting the
appointment, the Expert shall disclose to the Parties in writing any circumstances that might give rise to a reasonable basis for questioning the Expert’s impartiality or independence, or confirm in writing that no such circumstances exist. If
the Parties are unable to agree on an Expert within [***] Business Days of the Challenged Party’s receipt of the Challenge Notice, the dispute shall be finally resolved by a panel of three (3) Experts, with each Party selecting one Expert
and the two Experts selecting the third Expert, with such panel to be appointed within the following [***] Business Days and in accordance with the preceding sentence. 

 

	3.	 Within [***] Business Days following the selection of the Expert(s), each Party shall prepare and submit to
each of the Expert(s) and the other Party a written report setting forth its position with respect to the resolution of the Challenge, together with all material information supporting its position. Each Party shall have [***] Business Days from
receipt of the other Party’s submission to submit a written response thereto, which shall include any scientific and technical information in support thereof. The Expert(s) shall have the right to meet with the Parties, either alone or
together. 

  

	4.	 No later than [***] Business Days after the designation of the Expert(s), or such longer period (not to exceed
[***] Business Days after the designation of the Expert(s)) as the Expert(s) may require, taking into consideration the Parties’ need for expeditious resolution, the Expert(s) shall make a determination as to whether the Challenged Party’s
exercise of its right of final decision under Section 3.3.2 would reasonably be expected to 

  

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED. 

 EXECUTION VERSION 

CONFIDENTIAL 
  

	 	result in an Aquinox Material Adverse Effect or Astellas Material Adverse Effect, as applicable. The Expert(s) shall provide the Parties with a written statement setting forth the basis of the determination in
connection therewith. The Parties agree that such Expert’s(s’) determination shall be final and determinative. Each Party shall bear its own costs with respect to any proceeding under this Exhibit, provided that the Party against whom the
Expert(s) rules shall bear all costs of the Expert(s). 

  

 [***] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED
IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED.

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