Document:

EX-10.22

 Exhibit 10.22 

CONFIDENTIAL 
 CONFIDENTIAL
TREATMENT REQUESTED UNDER RULE 406 UNDER THE SECURITIES ACT OF 1933, 
 AS AMENDED. [...***...] INDICATES OMITTED MATERIAL THAT IS THE
SUBJECT OF A 
 CONFIDENTIAL TREATMENT REQUEST FILED SEPARATELY WITH THE COMMISSION. THE 

OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION. 

COLLABORATION AGREEMENT 

Between 
 ZYMEWORKS INC.

 and 
 CELGENE
CORPORATION & CELGENE ALPINE INVESTMENT CO. LLC 
 December 23, 2014 

Confidential 

 CONFIDENTIAL 
  

 TABLE OF CONTENTS 

 

									
	 	 	 Section
	  	 Page
	 
			
	 1.
	 	DEFINITIONS AND INTERPRETATIONS	  	 	5	 
			
	 2.
	 	GRANT OF LICENSES	  	 	14	 
				
		 	 2.1
	  	Licenses and Rights to Celgene	  	 	14	 
		 	 2.2
	  	License to Zymeworks	  	 	15	 
		 	 2.3
	  	No Implied Licenses	  	 	15	 
			
	 3.
	 	RESEARCH PROGRAM AND DEVELOPMENT AND COMMERCIALIZATION OF PRODUCTS	  	 	16	 
				
		 	 3.1
	  	Research Program	  	 	16	 
		 	 3.2
	  	Records and Reports	  	 	17	 
		 	 3.3
	  	Development and Commercialization by Celgene	  	 	18	 
		 	 3.4
	  	Collaboration Sequence Pairs; Definitions	  	 	19	 
		 	 3.5
	  	Target and Sequence Selection Limitations	  	 	19	 
			
	 4.
	 	GOVERNANCE	  	 	20	 
				
		 	 4.1
	  	Research Program Leader	  	 	20	 
		 	 4.2
	  	Joint Research Committee	  	 	21	 
		 	 4.3
	  	JRC Meetings	  	 	21	 
		 	 4.4
	  	JRC Functions	  	 	21	 
			
	 5.
	 	FINANCIAL PROVISIONS	  	 	22	 
				
		 	 5.1
	  	Upfront Payment	  	 	22	 
		 	 5.2
	  	Investment	  	 	22	 
		 	 5.3
	  	Upfront License Fee	  	 	23	 
		 	 5.4
	  	Development and Regulatory Milestones	  	 	23	 
		 	 5.5
	  	Commercialization Milestones	  	 	24	 
		 	 5.6
	  	Royalties	  	 	24	 
			
	 6.
	 	REPORTS AND PAYMENT TERMS	  	 	25	 
				
		 	 6.1
	  	Payment Terms	  	 	25	 
		 	 6.2
	  	Payment Currency / Exchange Rate	  	 	26	 
		 	 6.3
	  	Taxes	  	 	26	 
		 	 6.4
	  	Records and Audit Rights	  	 	26	 
			
	 7.
	 	INTELLECTUAL PROPERTY RIGHTS	  	 	27	 
				
		 	 7.1
	  	Ownership of Inventions	  	 	27	 
		 	 7.2
	  	Patent Prosecution and Maintenance	  	 	28	 
		 	 7.3
	  	Enforcement and Defense	  	 	29	 
			
	 8.
	 	CONFIDENTIALITY	  	 	31	 
				
		 	 8.1
	  	Duty of Confidence	  	 	31	 
		 	 8.2
	  	Exceptions	  	 	32	 

  
 Confidential 

 CONFIDENTIAL 

TABLE OF CONTENTS 

(Continued) 
  

									
	 	 	 	  	 	  	Page	 
				
		 	 8.3
	  	 Authorized Disclosures
	  	 	32	 
			
	 9.
	 	 PUBLICATIONS AND PUBLICITY
	  	 	33	 
				
		 	 9.1
	  	 Publications
	  	 	33	 
		 	 9.2
	  	 Publicity
	  	 	33	 
			
	 10.
	 	 TERM AND TERMINATION
	  	 	34	 
				
		 	 10.1
	  	 Term
	  	 	34	 
		 	 10.2
	  	 Termination by Celgene
	  	 	34	 
		 	 10.3
	  	 Termination for Cause
	  	 	35	 
			
	 11.
	 	 EFFECTS OF TERMINATION
	  	 	36	 
				
		 	 11.1
	  	 Termination of Agreement
	  	 	36	 
		 	 11.2
	  	 Survival
	  	 	36	 
		 	 11.3
	  	 Damages; Relief
	  	 	36	 
		 	 11.4
	  	 Bankruptcy Code
	  	 	36	 
			
	 12.
	 	 REPRESENTATIONS AND WARRANTIES
	  	 	37	 
				
		 	 12.1
	  	 Representations and Warranties by Each Party
	  	 	37	 
		 	 12.2
	  	 Representations, Warranties and Covenants by Zymeworks
	  	 	37	 
		 	 12.3
	  	 Limitation
	  	 	38	 
		 	 12.4
	  	 No Other Warranties
	  	 	38	 
			
	 13.
	 	 INDEMNIFICATION AND LIABILITY
	  	 	38	 
				
		 	 13.1
	  	 Indemnification by Zymeworks
	  	 	38	 
		 	 13.2
	  	 Indemnification by Celgene
	  	 	39	 
		 	 13.3
	  	 Indemnification Procedure
	  	 	39	 
		 	 13.4
	  	 Special, Indirect and Other Losses
	  	 	40	 
		 	 13.5
	  	 Insurance
	  	 	40	 
			
	 14.
	 	 GENERAL PROVISIONS
	  	 	40	 
				
		 	 14.1
	  	 Assignment
	  	 	40	 
		 	 14.2
	  	 Extension to Affiliates
	  	 	41	 
		 	 14.3
	  	 Severability
	  	 	41	 
		 	 14.4
	  	 Governing Law; English Language
	  	 	41	 
		 	 14.5
	  	 Dispute Resolution
	  	 	41	 
		 	 14.6
	  	 Force Majeure
	  	 	42	 
		 	 14.7
	  	 Waivers and Amendments
	  	 	43	 
		 	 14.8
	  	 Relationship of the Parties
	  	 	43	 
		 	 14.9
	  	 Notices
	  	 	43	 
		 	 14.10
	  	 Further Assurances
	  	 	44	 
		 	 14.11
	  	 Compliance with Law
	  	 	44	 
		 	 14.12
	  	 No Third Party Beneficiary Rights
	  	 	44	 
		 	 14.13
	  	 Entire Agreement
	  	 	45	 
		 	 14.14
	  	 Counterparts
	  	 	45	 
		 	 14.15
	  	 Expenses
	  	 	45	 

  
 Confidential 

 CONFIDENTIAL 

TABLE OF CONTENTS 

(Continued) 
  

									
	 	 	 	  	 	  	Page	 
				
		 	 14.16
	  	Binding Effect	  	 	45	 
		 	 14.17
	  	Construction	  	 	45	 
		 	 14.18
	  	Cumulative Remedies	  	 	45	 
		 	 14.19
	  	Export	  	 	45	 
		 	 14.20
	  	Notification and Approval	  	 	46	 

  
 Confidential 

 CONFIDENTIAL 
  

 COLLABORATION AGREEMENT 

THIS COLLABORATION AGREEMENT (the “Agreement”), effective as of December 23, 2014 (the “Effective
Date”), by and between CELGENE CORPORATION, a corporation organized and existing under the laws of Delaware, with its principal business office located at 86 Morris Avenue, Summit, NJ 07901, USA (“Celgene
Corp.”), CELGENE ALPINE INVESTMENT CO. LLC (“Celgene Alpine” and, together with Celgene Corp., “Celgene”) and ZYMEWORKS INC., a corporation organized and existing under the laws of Canada, and
extra provincially in British Columbia, having an address at 540-1385 West 8th Avenue, Vancouver, BC, Canada V6H 3V9 (“Zymeworks”). Zymeworks and Celgene are each referred to individually as a
“Party” and together as the “Parties”. 
 BACKGROUND 

A. Zymeworks controls a proprietary Fc/Fab heterodimerization platform that was developed using Zymeworks’ proprietary molecular
simulation software, known as ZymeCADTM. 
 B. Celgene and Zymeworks desire to enter into this agreement under which Zymeworks will
utilize such platform to generate and develop certain bi-specific Antibodies (as defined below) based on binding sequences nominated by the Parties. 

C. Celgene desires to obtain certain licenses and options under certain intellectual property controlled by Zymeworks to use Zymeworks’
platform to help develop and commercialize certain products incorporating such Antibodies, and Zymeworks is willing to grant such rights, all on the terms and conditions as set forth below. 

NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein below, the sufficiency of which is acknowledged
by both Parties, the Parties agree as follows: 
 1. DEFINITIONS AND INTERPRETATIONS 

Whenever used in this Agreement with an initial capital letter, the terms defined in this Article 1 and elsewhere in this Agreement, whether
used in the singular or plural, shall have the meanings specified. 
 1.1 “Accounting Standards” means (a) GAAP
(United States Generally Accepted Accounting Principles); or (b) to the extent that a Person adopts International Financial Reporting Standards (IFRS), then “Accounting Standards” means International Financial Reporting Standards
(IFRS) with respect to that Person, in either case consistently applied. 

  
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 CONFIDENTIAL 
  

 1.2 “Acquiring Entity” means a Third Party that merges or
consolidates with or acquires a Party, or to which a Party transfers all or substantially all of its assets to which this Agreement pertains. 

1.3 “Act” means, as applicable, the United States Federal Food, Drug and Cosmetic Act, 21 U.S.C. §§ 301
et seq., or the Public Health Service Act, 42 U.S.C. §§ 262 et seq., as such may be amended from time to time. 
 1.4
“Affiliate” means with respect to either Party, any Person controlling, controlled by or under common control with such Party, for so long as such control exists. For purposes of this Section 1.4 only, “control” means
(i) direct or indirect ownership of fifty percent (50%) or more of the stock or shares having the right to vote for the election of directors of such corporate entity or (ii) the possession, directly or indirectly, of the power to direct,
or cause the direction of, the management or policies of such entity, whether through the ownership of voting securities, by contract or otherwise. 

1.5 “Annual Net Sales” means, with respect to a particular Product and Calendar Year, all Net Sales of such Product
throughout the Territory during such Calendar Year. 
 1.6 “Antibody” means any and all antibodies or
antibody analogues, including Fc or Fab components thereof, derived and generated from the Collaboration Sequence Pairs through the application of the Zymeworks Platform pursuant to the Research Program. 

1.7 “Applicable Laws” means all federal, state, local, national and supra-national laws, statutes, rules and
regulations, including any rules, regulations, 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 applicable to a
particular activity hereunder. 
 1.8 “Business Day” means any day other than a Saturday, Sunday or any other day on
which commercial banks in New York, New York, USA are authorized or required by Applicable Law to remain closed. 
 1.9
“CAD” means Canadian dollars. 
 1.10 “Calendar Quarter” means any respective period of three
(3) consecutive calendar months ending on March 31, June 30, September 30 and December 31 of any Calendar Year. 

1.11 “Calendar Year” means each successive period of twelve (12) months commencing on January 1 and
ending on December 31. 
 1.12 “[...***...]” means [...***...]. 

1.13 “Celgene Intellectual Property” means the Celgene Patent Rights and the Celgene
Know-How. 

  
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 1.14 “Celgene Know-How” means
all Know-How, which: (a) is Controlled by Celgene as of the Effective Date and during the Term of the Agreement, (b) is not generally known, and (c) is reasonably necessary or useful to Celgene
in: (i) carrying out the activities assigned to it under the Research Program (ii) researching, developing, manufacturing or commercializing Collaboration Sequence Pairs or (iii) researching, developing, manufacturing or
commercializing Products (including researching, developing and manufacturing of any Antibody for inclusion in such Products). 

1.15 “Celgene Patent Rights” means, Subject to Section 7.1, any and all Patent Rights that are Controlled by
Celgene or its Affiliates (including Patent Rights Controlled by Celgene claiming Inventions made by Celgene (alone or with its Affiliate or a Third Party)) as of the Effective Date and during the Term of the Agreement, including any such Patent
Rights claiming Collaboration Sequence Pairs, Inventions related solely to the Collaboration Sequence Pairs or Antibod(ies) generated from and incorporating such Collaboration Sequence Pairs. For clarity, Celgene Patent Rights shall not include
Joint Patent Rights. 
 1.16 “Clinical Trial” means a Phase I Clinical Trial, Phase II Clinical Trial or Phase III
Clinical Trial, or any post-approval human clinical trial, as applicable. 
 1.17 “Collaborator” means a Third Party
with whom Celgene has a written agreement pursuant to which Celgene works with such Third Party on collaborative scientific activities related to any antibody or antibody analogue. 

1.18 “Combination Product” means any Product that comprises an Antibody sold in conjunction with another active
pharmaceutical ingredient (whether packaged together or in the same therapeutic formulation or otherwise). 
 1.19
“Confidential Information” means all Know-How, which is generated by or on behalf of a Party under this Agreement or which one Party or any of its Affiliates or contractors has provided or
otherwise made available to the other Party whether made available orally, in writing, or in electronic form, including such Know-How comprising or relating to concepts, discoveries, Inventions, data, designs
or formulae arising from this Agreement. This Agreement and its Exhibits and amendments constitute Confidential Information of both of the Parties. 

1.20 “Control” or “Controlled” means, with respect to any material,
Know-How, or intellectual property right (including Patent Rights), that a Party (a) owns or (b) has a license to such material, Know-How, or intellectual
property right and, in each case, has the power to grant to the other Party access, a license, or a sublicense (as applicable) to the same on the terms and conditions set forth in this Agreement without violating any obligations of the granting
Party to a Third Party or subjecting the granting Party to any additional fee or charge. Notwithstanding anything to the contrary in this Agreement, the following shall not be deemed to be Controlled by Zymeworks: (i) any materials, Know-How or intellectual property right owned or licensed by any Acquiring Entity immediately prior to the effective date of the merger, consolidation or transfer making such Third Party an Acquiring Entity, and
(ii) any materials, Know-How or intellectual property right that any Acquiring Entity subsequently develops without accessing or practicing the Zymeworks Platform or any Zymeworks Intellectual Property.

  
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 CONFIDENTIAL 
  

 1.21 “Cover” or “Covered” means, with respect to a
Product in a particular country, that the manufacture, use, sale or importation of such Product in such country would, but for the licenses granted herein, infringe a Valid Claim. 

1.22 “Directed To” means, with regard to an antibody or product, that such antibody or product (a) binds directly
to a Target, and (b) exerts its primary diagnostic, prophylactic or therapeutic activity as a result of such binding or modifies the profile (e.g., pharmacokinetics, tissue penetration and distribution) of the antibody as a result of
such binding, as determined based on reasonable experimental data or generally accepted scientific literature, in either case available at the time of completion of preclinical development of such antibody or product. When required
grammatically, the defined term “Directed To” may be separated and shall have the same meaning set forth above; e.g., when discussing Targets To which an antibody is Directed. 

1.23 “FDA” means the United States Food and Drug Administration and any successor thereto. 

1.24 “Field” means any and all uses, including diagnostic, prophylactic, and therapeutic uses, in humans. 

1.25 “First Commercial Sale” means, with respect to a Product in any country in the Territory, the first sale,
transfer or disposition for value or for end use or consumption of such Product in such country after Marketing Authorization has been received in such country. 

1.26 “[...***...]” means Celgene’s [...***...] with respect to the Zymeworks Platform for all Sequence Pairs
that are [...***...] to any given Collaboration Sequence Pair, as further described in Section 3.4. For clarity, [...***...] will be examined only with respect to the [...***...] of the [...***...], and only those
[...***...] that are [...***...] to both [...***...] examined individually shall be [...***...] to Celgene. 

1.27 “Invention” means any Know-How, composition of matter, article of
manufacture or other subject matter, whether patentable or not, that is conceived or reduced to practice under and as a result of any work performed under the Agreement, including any work performed pursuant to the Research Program. 

1.28 “Joint Invention” means any Invention conceived or reduced to practice jointly by one or more employees of
Celgene or its Affiliate or a Third Party acting under authority of Celgene or its Affiliate, on the one hand, and one or more employees of Zymeworks or its Affiliate or a Third Party acting under authority of Zymeworks or its Affiliate, on the
other hand. 
 1.29 “Joint Know-How” means all Know-How comprising a Joint Invention. 
 1.30 “Joint Patent Rights” means all
Patent Rights claiming a Joint Invention. 
 1.31 “Know-How” means all
technical information, know-how, data, inventions, discoveries, trade secrets, specifications, instructions, processes, formulae, methods, protocols, expertise and other technology applicable to formulations,
compositions or products or to their 

  
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manufacture, development, registration, use or marketing or to methods of assaying or testing them, and all biological, chemical, pharmacological, biochemical, toxicological, pharmaceutical,
physical and analytical, safety, quality control, manufacturing, preclinical and clinical data relevant to any of the foregoing. For clarity, Know-How excludes Patent Rights and materials. 

1.32 “Major Market” means the [...***...], in which Marketing Authorization for the applicable Product is
obtained) and [...***...]. 
 1.33 “Marketing Authorization” means all approvals from the relevant Regulatory
Authority necessary to initiate marketing and selling a product (including a Product) in any country. For clarity, Marketing Authorization shall include pricing or reimbursement approval in countries outside of the United States where Celgene Corp.
or Celgene Alpine determines in its sole discretion that such pricing or reimbursement approval is desirable prior to initiating and selling a product (including a Product) in such countries. 

1.34 “Multi-Specific Antibody” means an antibody or an antibody analogue, generated through the application of the
Zymeworks Platform, that contains independent binding sites Directed to [...***...]. 
 1.35 “Net Sales” means
the sum of, without any duplication: the gross amounts invoiced for the Products sold by Celgene, its Affiliates or its licensees to Third Parties (other than Celgene, its Affiliates or its licensees), including wholesale distributors, less
deductions from such amounts calculated in accordance with Accounting Standards so as to arrive at “net sales” under Accounting Standards as reported by Celgene, its Affiliate or its licensee, as applicable, in such Person’s financial
statements, and further reduced by [...***...]. Any and all set-offs against gross invoice prices and write-offs shall be calculated in accordance with Accounting Standards. Sales or other commercial
dispositions of a Product between Celgene and its Affiliates and its licensees shall be excluded from the computation of Net Sales; Product provided to Third Parties [...***...], in connectifon with [...***...] shall be excluded from the
computation of Net Sales; and no payments will be payable on such sales or such other commercial dispositions, except where such an Affiliate or licensee is an end user of the Product. 

Notwithstanding the foregoing, if a Product is sold or otherwise commercially disposed of for consideration other than cash or in a
transaction that is not at arm’s length between the buyer and the seller, then the gross amount to be included in the calculation of Net Sales shall be the amount that would have been invoiced had the transaction been conducted at arm’s
length and for cash. Such amount that would have been invoiced shall be determined, wherever possible, by reference to the average selling price of such Product in arm’s length transactions in the relevant country. 

Notwithstanding the foregoing, in the event a Product is sold as a Combination Product in a particular country, Net Sales shall be calculated
by multiplying the Net Sales of the Combination Product by the fraction A/(A+B), where A is the gross invoice price of the Antibody(ies) if sold as a stand-alone Product in a country and B is the gross invoice price of the other active
pharmaceutical ingredient(s) included in the Combination Product if sold as a stand-alone product in such country. If no such separate sales are made by Celgene, its Affiliates or licensees in a country, Net Sales of the Combination Product shall be
calculated in a manner 

  
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determined by Celgene in good faith based upon the relative value of the active pharmaceutical ingredients of such Combination Product. 

1.36 “New Indication” means a new application for a label expansion indicating the applicable drug for a new initial,
expanded or additional patient populations, or newly indicating the drug for use in combination with another treatment or drug, in each case that requires a Pivotal Clinical Trial for Marketing Authorization for such new label or label expansion.
Different lines of treatment of an indication will not be considered a separate New Indication; the treatment and prevention of separate varieties of an indication or precursor condition will not be a separate New Indication; and the treatment or
prevention of an indication in a different population will not be a separate New Indication (e.g., adult and pediatric). 
 1.37
“Option Term” means, with respect to each Collaboration Sequence Pair, the period commencing on the initiation of the Research Program and expiring on the earlier of: (a) the date that is [...***...] after the expiration
of the Research Program Term, or (b) the date that is [...***...]. 
 1.38 “Patent Rights” means the
rights and interests in and to issued patents and pending patent applications (which, for purposes of this Agreement, include certificates of invention, applications for certificates of invention and priority rights) in any country or region,
including all provisional applications, substitutions, continuations, continuations-in-part, continued prosecution applications including requests for continued
examination, divisional applications and renewals, and all letters patent or certificates of invention granted thereon, and all reissues, reexaminations, extensions (including pediatric exclusivity patent extensions), term restorations, renewals,
substitutions, confirmations, registrations, revalidations, revisions and additions of or to any of the foregoing, in each case, in any country. 

1.39 “Person” means any individual, corporation, partnership, association, joint-stock company, trust, unincorporated
organization or government or political subdivision thereof. 
 1.40 “Phase I Clinical Trial” means a human clinical
trial of a product, the principal purpose of which is to generate information on product safety, tolerability, pharmacological activity or pharmacokinetics, or that is otherwise consistent with the requirements of U.S. 21 C.F.R. §312.21(a) or
its foreign equivalents. 
 1.41 “Phase II Clinical Trial” means a human clinical trial of a product, the principal
purpose of which is to explore a variety of doses, dose response, and duration of effect, and to generate evidence of clinical safety and effectiveness for a particular indication or indications in a target patient population, or that is otherwise
consistent with the requirements of U.S. 21 C.F.R. §312.21(b) or its foreign equivalents. 
 1.42 “Phase III Clinical
Trial” means a human clinical trial of a product, the principal purpose of which is intended to (a) establish that the product is safe and efficacious for its intended use, (b) define contraindications, warnings, precautions and
adverse reactions that are associated with the product in the dosage range to be prescribed, and (c) support Marketing Authorization for such product, or that is otherwise consistent with the requirements of U.S. 21 C.F.R. §312.21(c) or
its foreign equivalents. 

  
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 1.43 “Pivotal Clinical Trial” means a human clinical trial of a
product on a sufficient number of subjects that, prior to commencement of the trial, satisfies both of the following ((a) and (b)): (a) such trial is designed to establish that such product has an acceptable safety and efficacy profile for its
intended use, and to determine warnings, precautions, and adverse reactions that are associated with such product in the dosage range to be prescribed, which trial is intended to support Marketing Authorization of such product, or a similar clinical
study prescribed by a Regulatory Authority; and (b) such trial is a registration trial sufficient for filing an application for a Marketing Authorization for such product in the U.S. or another country or some or all of an extra-national
territory, as evidenced by (i) an agreement with or statement from the FDA on a Special Protocol Assessment, or (ii) other guidance or minutes issued by a Regulatory Authority, for such registration trial. 

1.44 “Product” means a pharmaceutical preparation containing one or more Antibody(ies). For clarity, a Product
includes any formulation, delivery device, dispensing device or packaging required for effective use of the Product. 
 1.45
“Regulatory Authority” means the FDA or any counterpart of the FDA outside the United States, or other national, supra-national, regional, state or local regulatory agency, department, bureau, commission, council or other
governmental entity with authority over the distribution, importation, exportation, manufacture, production, use, storage, transport, clinical testing or sale of a pharmaceutical product (including a Product), which may include the authority to
grant the required reimbursement and pricing approvals for such sale. 
 1.46 “Related Party” means each Party, its
Affiliates, and their respective licensees or sublicensees hereunder (which term excludes any Third Parties to the extent functioning as distributors), as applicable. In no event shall Zymeworks be a Related Party with respect to Celgene or Celgene
be a Related Party with respect to Zymeworks. 
 1.47 “Research Program Patent Rights” means any and all Patent
Rights claiming an Invention that are Controlled by either Party or their respective Affiliates. 
 1.48 “Secondary
Market” means [...***...]. 
 1.49 “Sequence” means an antibody nucleic acid or amino acid sequence
corresponding only to the [...***...]that is Directed To [...***...]. 
 1.50 “Sequence Pair” means a
pair of Sequences, each of which is Directed To a [...***...]. 
 1.51 “Target” means any clinically relevant
[...***...] (or portion thereof). 
 1.52 “Target Pair” means any two Targets in combination. 

1.53 “Territory” means the world. 

1.54 “Third Party” means any Person other than Celgene or Zymeworks or an Affiliate of Celgene or Zymeworks. 

  
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 1.55 “United States” or “US” means the United States
of America and its territories and possessions. 
 1.56 “USD” and “$” mean United States dollars.

 1.57 “Valid Patent Claim” means any claim of (a) an issued and unexpired patent or (b) a pending patent
application, in each case included within the Zymeworks Patent Rights or the Research Program Patent Rights, which (i) has not been abandoned, revoked, lapsed or held unenforceable, invalid or unpatentable by a court or other government body of
competent jurisdiction with no further possibility of appeal, (ii) has not been pending for [...***...] (or [...***...] with respect to patent applications filed in [...***...], [...***...] and [...***...]) from
the date of filing of the earliest priority patent application to which such pending patent application is entitled to claim benefit, or (iii) has not been disclaimed, denied or admitted to be invalid or unenforceable through reissue, re-examination or disclaimer or otherwise. 
 1.58 “Zymeworks Intellectual
Property” means the Zymeworks Patent Rights and the Zymeworks Know-How. 
 1.59
“Zymeworks Know-How” means all Know-How, which: (a) is Controlled by Zymeworks as of the Effective Date and during the Term of the Agreement,
(b) is not generally known, and (c) is reasonably necessary or useful to Celgene in: (i) carrying out the activities assigned to it under the Research Program or (ii) developing, manufacturing or commercializing Products
(including developing and manufacturing of any Antibody for inclusion in such Products). 
 1.60 “Zymeworks Patent
Rights” means, subject to Section 7.1, any and all Patent Rights that are Controlled by Zymeworks or its Affiliates (including Patent Rights Controlled by Zymeworks claiming Zymeworks Inventions) as of the Effective Date and during the
Term of the Agreement, which are (a) necessary or reasonably useful for the use or exploitation of the Zymeworks Platform for carrying out the Research Program or (b) claim the manufacture, use, sale or importation of any Antibody. 

1.61 “Zymeworks Platform” means Zymeworks’ proprietary [...***...] mutations which enable the efficient
formation of [...***...]. This platform was developed using the Company’s proprietary molecular simulation software suite, known as ZymeCADTM. 

1.62 Additional Definitions. In addition, each of the following definitions shall have the respective meanings set forth
in the section of this Agreement indicated below. 
  

			
	 Definition
	  	Section/Exhibit
	 Accounting Firm
	  	6.4.3(a)
	 Agreement
	  	Preamble
	 Agreement Payments
	  	6.3
	 Celgene
	  	Preamble
	 Celgene Indemnified Party
	  	13.1
	 Claims
	  	13.1
	 Code
	  	11.4

  
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	 Definition
	  	Section/Exhibit
	 Collaboration Sequence Pair
	  	3.4
	 Commercialization Milestone Event
	  	5.5
	 Commercialization Milestone Payment
	  	5.5
	 Confidentiality Agreement
	  	14.13
	 Controlling Party
	  	7.3.5
	 Designation Notice
	  	3.4
	 Development Candidate
	  	3.3
	 Development Milestone Event
	  	5.4
	 Development Milestone Payment
	  	5.4
	 Development Period
	  	3.3.1
	 Dispute
	  	14.5.1
	 Effective Date
	  	Preamble
	 Excluded Claim
	  	14.5.5
	 Indemnified Party
	  	13.3.1
	 Indemnifying Party
	  	13.3.1
	 Competing Infringement
	  	7.3.1
	 Losses
	  	13.1
	 Notice of Dispute
	  	14.5.1
	 Parties
	  	Preamble
	 Party
	  	Preamble
	 prosecution
	  	7.2.1
	 Research Program
	  	3.1.1
	 Research Program Leader
	  	4.1
	 Research Program Term
	  	3.1.2
	 Royalty
	  	5.6.1
	 Royalty Term
	  	5.6.2
	 Subscription Agreement
	  	5.2
	 Taxes
	  	6.3
	 Term
	  	10.1.1
	 Upfront License Fee
	  	5.3
	 Workplan
	  	3.1.3
	 Zymeworks
	  	Preamble
	 Zymeworks Indemnified Party
	  	13.2

 1.63 Interpretation. The captions and headings to this Agreement are for convenience
only, and are to be of no force or effect in construing or interpreting any of the provisions of this Agreement. Unless specified to the contrary, references to Articles, Sections or Exhibits mean the particular Articles, Sections or Exhibits
to this Agreement and references to this Agreement include all Exhibits hereto. In the event of any conflict between the main body of this Agreement and any Exhibit hereto, the main body of this Agreement shall prevail. Unless context otherwise
clearly requires, whenever used in this Agreement: (a) the words “include” or “including” shall be construed as incorporating, also, “but not limited to” or “without limitation;” (b) the word
“day” or “year” means a calendar day or year unless otherwise specified; (c) the 

  
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word “notice” shall mean notice in writing (whether or not specifically stated) and shall include notices, consents, approvals and other written communications contemplated under this
Agreement; (d) the words “hereof,” “herein,” “hereby” and derivative or similar words refer to this Agreement as a whole and not merely to the particular provision in which such words appear; (e) the words
“shall” and “will” have interchangeable meanings for purposes of this Agreement; (f) the word “or” shall have the inclusive meaning commonly associated with “and/or”; (g) provisions that require that a
Party, the Parties or a committee hereunder “agree,” “consent” or “approve” or the like shall require that such agreement, consent or approval be specific and in writing, whether by written agreement, letter, approved
minutes or otherwise; (h) words of any gender include the other gender; (i) words using the singular or plural number also include the plural or singular number, respectively; (j) references to any specific law, rule or regulation, or
article, section or other division thereof, shall be deemed to include the then-current amendments thereto or any replacement law, rule or regulation thereof; (k) neither Party or its Affiliates shall be deemed to be acting “under
authority of” the other Party. 
 2. GRANT OF LICENSES 

2.1 Licenses and Rights to Celgene. Subject to the terms and conditions of this Agreement, 

2.1.1 Conduct of the Research Program. During the Research Program Term until the expiration of the Option Term with respect to
each Collaboration Sequence Pair, Zymeworks hereby grants to Celgene an exclusive, even as to Zymeworks, research and development license, including the right to authorize its Affiliates and its Collaborators, to use the Zymeworks Intellectual
Property with respect to Collaboration Sequence Pairs, solely (a) for Celgene, its Affiliates and Collaborators to perform those activities assigned to Celgene under the Research Program and (b) to otherwise research and develop the
Antibodies generated from and incorporating such Collaboration Sequence Pair; provided that Celgene shall (i) notify Zymeworks prior to any Affiliate or Collaborator first being so authorized, which notice shall identify the particular
Affiliate or Collaborator and include a brief description of the general activities to be performed thereby and (ii) be and remain responsible to Zymeworks for the compliance of each such Affiliate and Collaborator with the applicable terms and
conditions hereunder. For clarity, the foregoing license does not include the right to sell or otherwise commercialize Antibodies or Products. 

2.1.2 Option. Zymeworks hereby grants to Celgene an option (the “Option”), on a Collaboration Sequence Pair-by-Collaboration Sequence Pair basis for up to eight (8) Collaboration Sequence Pairs, to obtain an exclusive, even as to Zymeworks, license under the Zymeworks
Intellectual Property (including Zymeworks’ interest in Joint Inventions) to (a) make, have made, use, export and import, and have exported and imported Antibodies generated from and incorporating such Collaboration Sequence Pair for
incorporation into Products, (b) make, have made, use, sell, offer for sale, export and import, and have exported and imported such Products, and (c) research and develop and manufacture such Antibodies generated from and incorporating
such Collaboration Sequence Pair, in each case, (a), (b), and (c), in the Field in the Territory (the “Commercial License”). Celgene may exercise the Option on a Collaboration Sequence Pair by Collaboration Sequence Pair basis at
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respect to such Collaboration Sequence Pair by providing Zymeworks with written notice of such exercise and paying Zymeworks the Upfront License Fee in accordance with Section 5.3. If the
Research Program Term is extended pursuant to Section 3.1.2, Zymeworks will expand the Option by an additional [...***...], for an aggregate total of up to [...***...]. 

For clarity, prior to the exercise of the Option and payment of the Upfront License Fee with respect to a Collaboration Sequence Pair, Celgene shall not sell
or otherwise commercialize Products incorporating the Antibody generated from and incorporating such Collaboration Sequence Pair or conduct any development of such Products beyond [...***...]. Upon Celgene’s exercise of the Option and
payment to Zymeworks of the Upfront License Fee with respect to a given Collaboration Sequence Pair, Zymeworks shall grant, and hereby grants (effective upon such exercise and payment), to Celgene the Commercial License, solely with respect to such
Collaboration Sequence Pair. Upon each exercise of an Option, all rights under the resulting Commercial License for the United States shall be granted to Celgene Corp., and all rights under the resulting Commercial License outside of the United
States shall be granted to Celgene Alpine. 
 2.1.3 Sublicenses. The Commercial License shall include the right to grant
sublicenses (including to Affiliates and Third Parties) through multiple tiers; provided that each sublicense granted by Celgene shall be consistent with the terms and conditions of this Agreement. Celgene shall (a) provide Zymeworks
with prompt notice of any such sublicenses that it grants and identifying the sublicensee and the scope of such sublicensee’s rights/responsibilities and (b) shall be and remain responsible to Zymeworks for the compliance of each
sublicensee with the applicable terms and conditions hereunder. 
 2.1.4 Active Development. Notwithstanding anything herein
to the contrary, Celgene’s exclusivity (including any [...***...]), rights and licenses will expire with respect to a Collaboration Sequence Pair if Celgene ceases active research and development of the Antibody generated from and
incorporating such Collaboration Sequence Pair or Product(s) incorporating such Antibody. 
 2.2 License to
Zymeworks. Subject to the terms and conditions of this Agreement, Celgene hereby grants Zymeworks a license to make, use and otherwise exploit subject matter within the Know-How and Patents
Controlled by Celgene or its Affiliates solely for Zymeworks to perform those activities assigned to it under the Research Program or otherwise cooperate with Celgene hereunder. The license granted under this Section 2.2 shall include the right
to sublicense to the subcontractors described on Exhibit 2.2, to the extent reasonably necessary to conduct the Research Program. Any other sublicenses by Zymeworks to other subcontractors shall require Celgene’s prior written consent. 

2.3 No Implied Licenses. Except as expressly set forth in this Agreement, neither Party, by virtue of this Agreement, shall
acquire any license or other interest, by implication or otherwise, in any materials, Know-How, Patent Rights or other intellectual property rights Controlled by the other 

  
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Party or its Affiliates. Subject to the licenses and rights explicitly granted to Celgene hereunder and the other terms and conditions of this Agreement, Zymeworks will retain all rights under
the Zymeworks Intellectual Property. Subject to the licenses and rights explicitly granted to Zymeworks hereunder and the other terms and conditions of this Agreement, Celgene will retain all of its rights under the Celgene Intellectual Property.

 3. RESEARCH PROGRAM AND DEVELOPMENT AND 

COMMERCIALIZATION OF PRODUCTS 

3.1 Research Program.

3.1.1 General. Celgene and Zymeworks may collaborate to conduct a program to generate and develop Multi-Specific Antibodies
generated from and incorporating the Collaboration Sequence Pairs in accordance with the Workplan (the “Research Program”). The Research Program shall be subject to the oversight of the JRC. 

3.1.2 Research Program Term. The Research Program shall commence on the Effective Date and shall conclude forty (40) months
thereafter (such period, as it may be extended, the “Research Program Term”). The Research Program Term may be extended one time by an additional twenty-four (24) months, for an aggregate total of sixty-four (64) months,
at Celgene’s sole discretion, by providing Zymeworks with written notice of such extension not less than [...***...] prior to the expiration of the then-current Research Program Term and paying Zymeworks an additional, non-refundable fee of [...***...] dollars ($[...***...] USD), paid 50% by Celgene Corp. and 50% by Celgene Alpine, within [...***...] of providing such written notice. 

3.1.3 Workplan. The Research Program may cover the following activities, as set forth in further detail in a written workplan
for each Collaboration Sequence Pair established by the JRC in its sole discretion subsequent to the execution of this Agreement pursuant to Section 4.4 (collectively, the “Workplan”) (the Workplan shall be attached hereto from
time-to-time as Exhibit 3.1.3, as it may be amended by the JRC): 

(a) The Parties may nominate Sequence Pairs Directed To Target Pairs, each of which will be subject to gatekeeping in accordance with
Section 3.4 below; 
 (b) The Parties may apply the Zymeworks Platform to the Collaboration Sequence Pairs in the design,
engineering, and characterization of the Antibodies; and 
 (c) Zymeworks, its Affiliates, or contract research organizations of
Zymeworks’ choice may perform its responsibilities under the Workplan including [...***...] of Antibodies. Celgene, its Affiliates, Collaborators or contract research organizations of Celgene’s choice may perform its responsibilities
under the Workplan towards the nomination of Development Candidates, including [...***...] of Antibodies. 

  
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 3.1.4 Conduct of Research Program. Each Party agrees: 

(a) To use its own efforts, in its sole discretion, to conduct its responsibilities under the Research Program, as assigned to it
under the Workplan and to achieve the objectives and timelines within the Workplan; 
 (b) To act in good faith toward each other;

 (c) To conduct the Research Program in compliance with all Applicable Laws; and 

(d) That the other Party may utilize the services of its Affiliates and Third Parties to perform those activities assigned to it under
the Research Program; provided that such Party shall remain responsible for the performance of such Affiliates and Third Parties hereunder. 

3.1.5 Exchange of Know-How and materials. 

(a) Without limiting Section 3.2, promptly after the Effective Date, and on an ongoing basis during the conduct of the Research
Program, (i) Zymeworks shall disclose to Celgene in writing and/or in an electronic format Zymeworks Know-How and (ii) Celgene shall disclose to Zymeworks in writing and/or in electronic format Know-How Controlled by Celgene and reasonably necessary for Zymeworks’ performance of its obligations pursuant to the Workplan, in each case (i) and (ii) as specified in the Workplan, as established by the
JRC in its sole discretion. 
 (b) To the extent any physical materials need to be delivered to a Party as may be determined by the
JRC under this Agreement to enable that Party to perform its obligations under the Research Program the delivering Party shall arrange for prompt delivery of such physical materials in the manner determined by the JRC, and the Parties shall execute
a material transfer agreement, on terms consistent with this agreement and in a form mutually agreed upon by the Parties. The Party receiving such physical materials shall use the same for the sole purpose of conducting activities under the Research
Program or otherwise exercising its rights and fulfilling its obligations hereunder and treat all such physical materials as Confidential Information of the delivering Party. Unless expressly agreed otherwise, physical materials so supplied by a
Party to another Party pursuant to this Agreement shall be “AS IS” without warranty of any kind and shall not be used in any human application. 

3.2 Records and Reports.

3.2.1 Records. Each Party shall maintain records, for so long as necessary to comply with Applicable Laws or reasonably
necessary to support the prosecution, maintenance and enforcement of intellectual property rights (including Patent Rights) in accordance with Article 7 below, regarding its conduct of the Research Program after the applicable activity, in
sufficient detail and in good scientific manner appropriate for patent and regulatory purposes, which shall fully and properly reflect the work done and results achieved by such Party in the performance of the Research Program. 

  
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 3.2.2 Copies and Inspection of Records. During the period that such records are
required to be maintained pursuant to Section 3.2.1, each Party shall have the right, during normal business hours and upon reasonable notice, to inspect and copy all such records referred to in Section 3.2.1, solely for purposes of
exercising its rights or fulfilling its obligations under this Agreement. At the other Party’s reasonable request, each Party shall provide to the other Party: (a) copies of the records described in Section 3.2.1, at the other
Party’s expense and (b) reports of the activities conducted by or under authority of such Party in the conduct of the Workplan, including the results thereof. Celgene shall have the right to arrange with Zymeworks for its employee(s)
involved in the activities contemplated hereunder to visit the offices and laboratories of Zymeworks during normal business hours and upon reasonable notice, and to discuss the Research Program work and its results in detail with the technical
personnel; provided that any such visit shall occur no more frequently than once per Calendar Quarter andeach Party shall bear its own expenses related to such visits. 

3.3 Development and Commercialization by Celgene. Celgene (itself or through its Affiliates or Third Parties) shall have
the sole responsibility and exclusive right to further develop, manufacture and commercialize any Products upon the conclusion of the Research Program (including, subject to Section 2.1.2, the right to develop and manufacture Antibodies for
incorporation into Products). Celgene shall provide Zymeworks with written reports summarizing the then current development status of each Product as set forth in this Section 3.3 below. Without limiting Section 3.3.1, Celgene shall notify
Zymeworks within [...***...] of each Antibody for which it (itself or its Affiliate or Collaborator) has successfully completed [...***...] as described in the Workplan or made the decision to [...***...] with respect to such
Antibody, whichever is earlier. Upon Zymeworks’ receipt of such notice, the Antibody generated from and incorporating the Collaboration Sequence Pairs shall be deemed a “Development Candidate”. 

3.3.1 Development. With respect to each Product hereunder, for so long as Celgene is conducting development activities with
respect to such Product (with respect to such Product, the “Development Period”), Celgene shall keep Zymeworks reasonably informed as to such activities for such Product by providing to Zymeworks on an annual basis a written report
describing in reasonable detail such activities conducted during the previous annual period and the activities planned to be conducted during the upcoming annual period. In addition, during the Development Period for a particular Product, Zymeworks
shall have the right once during each Calendar Year to request, upon [...***...] prior notice to Celgene referencing this Section 3.3.1, a meeting at Celgene’s facilities (or such other location as Celgene may reasonably designate)
between Zymeworks personnel and Celgene’s Research Program Leader or such other person(s) at Celgene responsible for overseeing the implementation of the development activities with respect to such Product and the Zymeworks relationship to
discuss such development activities and provide Zymeworks a forum to provide feedback with respect thereto. Each Party shall bear its own expenses related to such meetings. 

3.3.2 Commercialization. Without limiting Section 6.1.2, Celgene shall keep Zymeworks reasonably informed as to its
commercialization activities for such Product (including pre-launch and launch activities) by providing to Zymeworks on an annual basis a written report describing in reasonable detail such activities
conducted during the previous annual period and the activities planned to be conducted during the upcoming annual period. 

  
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 3.4 Collaboration Sequence Pairs; Definitions. Subject to gatekeeping
pursuant to Section 3.5, the Parties (through the JRC) may select, in accordance with this Article 3 and during the Research Program Term, up to eight (8) Collaboration Sequence Pairs for incorporation into Antibodies pursuant to the
Workplan. If the Research Program Term is extended pursuant to Section 3.1.2, Zymeworks will expand the Option by an additional [...***...], for an aggregate total of up to [...***...], each of which will be subject to gatekeeping
pursuant to Section 3.5. To designate a Sequence Pair as a Collaboration Sequence Pair, Celgene shall provide Zymeworks with written notice of such Sequence Pair, setting forth the Sequences included in such Sequence Pair and the Target(s) To
which they are Directed, and requesting that such Sequence Pair be submitted to gatekeeping (each, a “Designation Notice”). Each designated Sequence Pair shall then be subject to gatekeeping pursuant to Section 3.5 below, and
if a designated Sequence Pair is available in accordance with such gatekeeping, and is further approved by the JRC, it then becomes a “Collaboration Sequence Pair,” and Celgene shall have [...***...] with respect to such
Collaboration Sequence Pair, meaning that Zymeworks will not (alone or in collaboration with a Third Party) apply the Zymeworks Platform to such Collaboration Sequence Pair or Sequence Pairs that are [...***...]to both [...***...], other
than pursuant to the Research Program. For clarity, the Parties (through the JRC) may submit more than eight (8) (or more than [...***...] if the Research Program Term is extended pursuant to Section 3.1.2) Sequence Pairs for
consideration as potential Collaboration Sequence Pairs during the Research Program Term, but Homology Exclusivity shall not arise until any given Sequence Pair is actually designated as a Collaboration Sequence Pair pursuant to this
Section 3.4 and Section 3.5. Accordingly, Zymeworks acknowledges that Celgene may be investigating Sequence Pairs as potential Collaboration Sequence Pairs, which investigation may include use of the Zymeworks Platform. Subject to
gatekeeping pursuant to Section 3.5, the Parties (through the JRC) may freely change Collaboration Sequence Pairs during the Research Program Term (e.g. by proposing another Sequence Pair in a new Designation Notice and if such Sequence Pair
passes gatekeeping, by then removing a previously-designated Collaboration Sequence Pair); provided that such changes shall not occur so frequently as to be unduly burdensome to Zymeworks and that in no event shall Celgene have more than
eight (8) (or more than [...***...] if the Research Program Term is extended pursuant to Section 3.1.2) Collaboration Sequence Pairs at any given time. 

3.5 Target and Sequence Selection Limitations.

3.5.1 The Parties (through the JRC) may select any Sequence Pair as a Collaboration Sequence Pair provided that, at the time of
the selection of such Sequence Pair, Zymeworks is not, as of the date Zymeworks receives such Written Notice from Celgene: 
 (a)
contractually obligated to grant, or has not granted, to a Third Party rights with respect to products incorporating such Sequence Pair, or exclusive rights with respect to products Directed To the Target or Target Pair To which such Sequence Pair
is Directed as described in Section 3.5.3; 

  
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 (b) actively and in good faith engaged in negotiations with a Third Party regarding
the development or commercialization of products incorporating such Sequence Pair ([...***...]); or 
 (c) actively performing
or has performed [...***...] studies or [...***...] studies on its own behalf regarding the development or commercialization of products incorporating such Sequence Pair prior to the date of Celgene’s Designation Notice concerning
such Sequence Pair. 
 3.5.2 After receipt of a Designation Notice, Zymeworks shall provide Celgene with prompt written notice as to
whether such Sequence Pair is available as a Collaboration Sequence Pair, and if such Sequence Pair is unavailable as a Collaboration Sequence Pair for any of the reasons set forth in Section 3.5.1, the basis for the unavailability, with
Zymeworks to provide additional evidence and support for such unavailability to a mutually approved Third Party who would then confirm unavailability, at Celgene’s expense, if reasonably requested by Celgene. Such additional evidence and
support may include items such as written records, lab notes, invoices, any of which may be redacted as necessary to comply with confidentiality obligations. 

3.5.3 During the Research Program Term, Zymeworks agrees that it will not grant to any Third Party [...***...] with respect to
the application of the Zymeworks Platform to antibodies [...***...]. Notwithstanding the foregoing, [...***...], then Zymeworks shall provide Celgene with written notice [...***...] by providing Zymeworks with written notice of
such [...***...]within [...***...] of its receipt of such notice from Zymeworks. 
 3.5.4 For clarity, nothing in this
Agreement, including Section 3.5.3 above and any [...***...], shall prevent any activities conducted by an Acquiring Entity or its Affiliates with respect to antibodies generated without use of the Zymeworks Platform or Zymeworks
Intellectual Property (whether before or after the applicable transaction), including the granting of any [...***...] with respect to such antibodies without use of the Zymeworks Platform or Zymeworks Intellectual Property (an
“Acquiring Entity Grant”). For further clarity, any such Acquiring Entity Grant would not block or rescind: (a) any Collaboration Sequence Pair already designated; (b) any Commercial License already entered into at the
time of the Acquiring Entity Grant; (c) any Commercial License entered into at a future date for a Collaboration Sequence Pair already designated; or (d) any designation at a future date of a Collaboration Sequence Pair, provided that it
has already passed through gatekeeping (as expanded by any Acquiring Entity Grant, if applicable) and the JRC. 
 4. GOVERNANCE 

4.1 Research Program Leader. Within [...***...] of the Effective Date, Celgene and Zymeworks will each assign one
(1) employee to serve as primary point of contact between the Parties with respect to the Research Program (each, a “Research Program Leader”). The Research Program Leaders shall regularly communicate with each other to address
Research Program-related issues, needs and updates. Either Party, upon prior notice to the other Party, may change its Research Program 

  
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Leader. Except for those Disputes that are subject to the purview of the JRC, prior to submitting any Dispute to the dispute resolution mechanism set forth in Section 14.5, the Research
Program Leaders shall attempt, for a period of [...***...], to resolve such Dispute. 
 4.2 Joint Research
Committee. The Parties will establish, as soon as practicable after the Effective Date, a Joint Research Committee (the “JRC”) to oversee and coordinate the activities of the Parties under the Research Program. The JRC
shall be comprised of two (2) employees from Celgene and two (2) employees from Zymeworks, or such other equal number as the Parties may agree. Subject to the foregoing, each Party shall appoint its respective representatives to the JRC
from time to time, and may change its representatives, in its sole discretion, effective upon notice to the other Party designating such change. Representatives from each Party shall have appropriate technical credentials, experience and knowledge
pertaining to and ongoing familiarity with the Research Program. One (1) of the members of the JRC appointed by Zymeworks shall be designated the JRC chairperson (the “JRC Chair”). The JRC Chair will be responsible for calling
meetings of the JRC, circulating agenda and performing administrative tasks required to assure efficient operation of the JRC. The JRC shall be promptly disbanded upon completion of the Research Program. 

4.3 JRC Meetings. The JRC shall meet in accordance with a schedule established by mutual written agreement of the Parties
no less frequently than once every [...***...] until expiration of the Research Program Term. The location for meetings shall alternate between Zymeworks and Celgene facilities (or such other location as is determined by the JRC).
Alternatively, the JRC may meet by means of teleconference, videoconference or other similar means. As appropriate, additional employees or consultants may from time to time attend the JRC meetings as nonvoting observers; provided that any
such consultant shall agree in writing to comply with the confidentiality obligations under this Agreement; and provided further that no Third Party personnel may attend unless otherwise agreed by both Parties. Each Party shall bear
its own expenses related to the attendance of the JRC meetings by its representatives. Each Party may also call for special meetings to resolve particular matters requested by such Party. The JRC Chair or his/her designee shall keep minutes of each
JRC meeting that records in writing all decisions made, action items assigned or completed and other appropriate matters. The JRC Chair shall send meeting minutes to all members of the JRC promptly after a meeting for review. Each member shall have
[...***...] from receipt in which to comment on and to approve/provide comments to the minutes (such approval not to be unreasonably withheld, conditioned or delayed). If a member, within such time period, does not notify the JRC Chair that
s/he does not approve of the minutes, the minutes shall be deemed to have been approved by such member. 
 4.4 JRC
Functions. The JRC’s responsibilities with respect to the Research Program are as follows: 
 (a) Overseeing and
coordinating the activities of each Party (including those of its Affiliates and Third Parties acting under its authority) under the Research Program; 

  
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 (b) Periodically reviewing the progress of the Research Program; 

(c) In its sole discretion, choosing whether and how to establish the initial Workplan within [...***...] of the Effective Date
and thereafter reviewing and updating the same; and 
 (d) Fulfilling such other responsibilities as may be allocated to the JRC by
mutual written agreement of the Parties. 
 Although the JRC has sole discretion in choosing whether and how to establish the initial
Workplan, in doing so, the JRC may not require either Party to expend any resources of any kind under any proposed workplan without the consent of such Party. From and after the disbanding of the JRC, the roles of the JRC will be performed by the
Research Program Leaders or their designees. Once a Collaboration Sequence Pair is nominated by Celgene as a Development Candidate, such Collaboration Sequence Pair will no longer fall under the jurisdiction of the JRC. 

(e) JRC Disputes. The JRC will endeavor to make decisions by consensus, with each of Celgene and Zymeworks having
one vote. If consensus is not reached by the Parties’ representatives pursuant to such vote, then the matter may be escalated by either Party to designated officers of both Celgene and Zymeworks with appropriate decision making authority for
resolution in accordance with Section 14.5. In the event the designated officers are unable to resolve the issue within [...***...], the JRC Chair has and shall have the right to make the final decision with respect to such dispute. The
JRC Chair may not exercise such final decision right to require any Party to expend any resources of any kind unless such Party expressly agrees. For clarity and notwithstanding the creation of the JRC, each Party shall retain the rights, powers and
discretion granted to it hereunder, and the JRC shall not be delegated or vested with such rights, powers or discretion unless such delegation or vesting is expressly provided herein, or the Parties expressly so agree in writing. The JRC shall not
have the power to amend, waive or modify any term of this Agreement or declare any milestone achieved, and no decision of the JRC shall be in contravention of any terms and conditions of this Agreement. It is understood and agreed that issues to be
formally decided by the JRC are limited to those specific issues that are expressly provided in this Agreement to be decided by the JRC. 

5. FINANCIAL PROVISIONS 

5.1 Upfront Payment. In consideration of this Agreement, Celgene shall pay to Zymeworks a one-time, non-refundable upfront payment of Eight Million US Dollars (USD $8,000,000), paid 50% by Celgene Corp. and 50% by Celgene Alpine, within[...***...] following
the Effective Date. 
 5.2 Investment. On the Effective Date, Zymeworks will, pursuant
to a subscription agreement to be executed by the Parties in substantially the form attached hereto as Exhibit 5.2 (the “Subscription Agreement”), issue to Celgene Alpine 1,652,893 Common Shares of 

  
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Zymeworks, at a per share price of CAD$6.05, for an aggregate purchase price from Celgene Alpine of CAD $10,000,002.65. 

5.3 Upfront License Fee. Prior to the expiration of the Option Term, in order to exercise each Option, Celgene will pay to
Zymeworks an upfront license fee of Seven and One-Half Million U.S. Dollars (USD $7,500,000), paid 50% by Celgene Corp. and 50% by Celgene Alpine, for each Collaboration Sequence Pair for which it exercises
the Option (the “Upfront License Fee”). For clarity, if Celgene exercises the Option with respect to all eight (8) Collaboration Sequence Pairs for which it has the right to exercise the Option, Celgene shall pay to Zymeworks a
total of Sixty Million U.S. Dollars (USD $60,000,000), paid 50% by Celgene Corp. and 50% by Celgene Alpine, in Upfront License Fees (or [...***...] U.S. Dollars (USD $[...***...]), paid 50% by Celgene Corp. and 50% by Celgene Alpine, if
the Research Program Term is extended pursuant to Section 3.1.2 and the Option with respect to all [...***...] are exercised). For clarity, Celgene may exercise the Option on a Collaboration Sequence Pair-by-Collaboration Sequence Pair basis and shall not be obligated to exercise the Option for all Collaboration Sequence Pairs at one time. 

5.4 Development and Regulatory Milestones. Within [...***...] after the achievement of each milestone event set forth
in the table below for each Product (each, a “Development Milestone Event”), Celgene shall make the corresponding milestone payment to Zymeworks (each, a “Development Milestone Payment”). Each Development Milestone
Payment shall be payable [...***...] for the [...***...] to achieve the corresponding Development Milestone Event. All Development Milestone Payments will be paid 50% by Celgene Corp. and 50% by Celgene Alpine. Development Milestone
Payments 3-5 below shall also be payable once per Product for the [...***...] to achieve such Development Milestone Event after the initial Marketing Authorization(s); provided that such
Development Milestone Payments 3-5 will be reduced by [...***...] ([...***...]%) when paid for the [...***...]. 
  

							
	 	 	 Development Milestone Events
	  	Milestone Payments	 
			
	 1.
	 	 [...***...]
	  	USD$	[...***...]	 
			
	 2.
	 	 [...***...]
	  	USD$	[...***...]	 
			
	 3.
	 	 [...***...]
	  	USD$	[...***...]	 
			
	 4.
	 	 [...***...]
	  	USD$	[...***...]	 
			
	 5.
	 	 [...***...]
	  	USD$	[...***...]	 
		 		  	  
	  
	 
			
		 	 Total Possible Development Milestone Payments per Product [...***...]
	  	USD$	[...***...]	 

  
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 5.5 Commercialization Milestones. Within [...***...] after the first
achievement of each milestone event set forth in the table below for each Product (each, a “Commercialization Milestone Event”), Celgene shall make the corresponding milestone payment to Zymeworks (each, a “Commercialization
Milestone Payment”): 
  

							
	 	 	 Commercialization Milestone Events
	  	Milestone Payments	 
			
	 1.
	 	 [...***...]
	  	USD$	[...***...]	 
			
	 2.
	 	 [...***...]
	  	USD$	[...***...]	 

 All Commercialization Milestone Payments will be paid 50% by Celgene Corp. and 50% by Celgene Alpine. For
clarity, each of the foregoing Commercialization Milestone Payments [...***...]. 
 5.6 Royalties.

5.6.1 Patent Royalty Payments. Celgene shall pay Zymeworks a royalty (each such royalty payment, a “Royalty”)
on Net Sales of each Product (with Royalties generated by the US paid by Celgene Corp. and Royalties generated outside of the US paid by Celgene Alpine) at the rates set forth below: 

 

							
	 Royalty
Tier
	  	 Annual Net Sales on a Product-by-Product basis
	  	Royalty
Rate	 
			
	 A
	  	 USD $[...***...] to USD $[...***...] of Net Sales of the particular Product
	  	 	[...***...]	% 
			
	 B
	  	 Above USD $[...***...] to USD $[...***...] of Net Sales of the particular
Product
	  	 	[...***...]	% 
			
	 C
	  	 Above USD $[...***...] of Net Sales of the particular Product
	  	 	[...***...]	% 

 5.6.2 Royalty Term. The Royalty will be payable on a Product-by-Product and country-by-country basis from First Commercial Sale in such country until (i) such Product is no
longer Covered by a Valid Patent Claim in such country or (ii) ten (10) years after the First Commercial Sale of such Product in such country, whichever is later (the “Royalty Term”). 

5.6.3 Royalty Buy-Down. At any time prior to the first dosing of a patient in a
Phase III Clinical Trial for a Product, Celgene will have the right to buy down the Royalty for such Product to a minimum of [...***...] ([...***...]%) at all sales levels, by providing Zymeworks with written notice specifying the
Product for which it desires to buy down such Royalty together with a payment of Ten Million US Dollars (USD $10,000,000) per percentage point buy down. Accordingly, a single payment of Ten Million US Dollars (USD $10,000,000) pursuant to this
Section 5.6.3 would reduce the Royalty rates applicable to such Product down to [...***...]% (Tier A), [...***...]% (Tier B), and [...***...]% (Tier C). An aggregate payment of Twenty

  
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Million US Dollars (USD $20,000,000) would reduce the Royalty rates applicable to such Product down to [...***...]% (Tier A), [...***...]% (Tier B), and [...***...]% (Tier C).
An aggregate payment of Thirty Million US Dollars (USD $30,000,000) would reduce the Royalty rates applicable to such Product down to [...***...]% (Tier A), [...***...]% (Tier B), and [...***...]% (Tier C). For clarity, the Royalty
buy-down shall apply on a Product-by-Product basis. 

5.6.4 Royalty Reduction for Third Party Payments. Royalties shall be reduced, subject in all cases to the royalty floor set
forth in Section 5.6.5, on a Product-by- Product and Calendar Quarter-by-Calendar
Quarter basis, by an amount [...***...] payments made to a Third Party in a Calendar Quarter on sales of such Licensed Product in such Calendar Quarter with respect to license rights to, or judgments paid to Third Parties regarding, Third
Party Patent Rights that Celgene reasonably determines would Cover, or otherwise be infringed by, the Zymeworks Intellectual Property in such country. Celgene may carry over and apply any payments made to a Third Party as described in this
Section 5.6.4, which are incurred or accrued in a Calendar Quarter and are not deducted in such Calendar Quarter, to any subsequent Calendar Quarter(s). 

5.6.5 Royalty Floor. During the Royalty Term, subject to the Royalty Buy-Down described
in Section 5.6.3, the operation of Section 5.6.4 shall not reduce the Royalty rates set forth in the table in Section 5.6.1 by more than [...***...] percent. For clarity, if no Royalty
buy-down payment is made pursuant to Section 5.6.3, the Royalty shall not be reduced pursuant to Section 5.6.4 to less than [...***...] percent ([...***...]%), [...***...] percent
([...***...]%) and [...***...] percent ([...***...]%), respectively, for the Royalties set out in such table. If a single Royalty buy-down payment of Ten Million US Dollars (USD $10,000,000)
is made pursuant to Section 5.6.3 the Royalty shall not be reduced pursuant to Section 5.6.4 to less than [...***...]% (Tier A), [...***...]% (Tier B), and [...***...]% (Tier C). If an aggregate Royalty buy-down payment of Twenty Million US Dollars (USD $20,000,000) is made pursuant to Section 5.6.3 the Royalty shall not be reduced pursuant to Section 5.6.4 to less than [...***...]% (Tier A),
[...***...]% (Tier B), and [...***...]% (Tier C). If an aggregate Royalty buy-down payment of Thirty Million US Dollars (USD $30,000,000) is made pursuant to Section 5.6.3 the Royalty shall
not be reduced pursuant to Section 5.6.4 to less than [...***...]% (Tier A), [...***...]% (Tier B), and [...***...]% (Tier C). 

6. REPORTS AND PAYMENT TERMS 

6.1 Payment Terms.

6.1.1 Milestone Payments. Celgene shall provide Zymeworks with notice of the achievement of each Development Milestone Event and
Commercialization Milestone Event within [...***...] thereafter and make the corresponding Milestone Payment within [...***...] after such achievement. 

6.1.2 Royalties. During the Term, following the First Commercial Sale of a Product, Celgene shall furnish to Zymeworks a written
report for each Calendar Quarter showing the Net Sales by Product sold by Celgene and its Related Parties during the reporting Calendar 

  
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Quarter and the Royalties payable under this Agreement in sufficient detail to allow Zymeworks to verify the amount of Royalties paid by Celgene with respect to such Calendar Quarter, including,
on a country-by-country and Product-by-Product basis, the total gross amount invoiced for
Product sold, the Net Sales of each Product, and the Royalties (in US dollars) payable and in total for all Products and the manner and basis for any currency conversion in accordance with Section 6.2. Reports shall be due no later than
[...***...] following the end of each Calendar Quarter. Royalties shown to have accrued by each report provided under this Section 6.1.2 shall be due and payable on the date such report is due. 

6.1.3 Invoices. Where applicable, and except as otherwise provided herein, amounts shall be due and payable within
[...***...] of receipt of invoice therefor. 
 6.2 Payment Currency / Exchange Rate. All payments to be made
by Celgene to Zymeworks under this Agreement shall be made in USD; provided that the payments made pursuant to the Subscription Agreement shall be made in CAD. Payments to Zymeworks shall be made by electronic wire transfer of immediately
available funds to the account of Zymeworks, as designated in writing to Celgene. If any currency conversion is required in connection with the calculation of amounts payable hereunder, such conversion shall be made in a manner consistent with
Celgene’s normal practices used to prepare its audited financial statements for external reporting purposes; provided that such practices use a widely accepted source of published exchange rates. 

6.3 Taxes. Each Party shall be responsible for its own tax liabilities arising under this Agreement. Subject to this
Section 6.3, Zymeworks shall be liable for all income and other taxes (including interest) (“Taxes”) imposed upon any payments made by Celgene to Zymeworks under this Agreement (“Agreement Payments”). If
Applicable Laws require the withholding of Taxes, Celgene shall make such withholding payments in a timely manner and shall subtract the amount thereof from the Agreement Payments. Celgene shall promptly (as available) submit to Zymeworks
appropriate proof of payment of the withheld Taxes as well as the official receipts within a reasonable period of time. Celgene shall provide Zymeworks reasonable assistance in order to allow Zymeworks to obtain the benefit of any present or future
treaty against double taxation or refund or reduction in Taxes which may apply to the Agreement Payments. Notwithstanding the foregoing, if as a result of a Party assigning this Agreement or changing its domicile additional Taxes become due that
would not have otherwise been due hereunder with respect to Agreement Payments, such Party shall be responsible for all such additional Taxes. 

6.4 Records and Audit Rights.

6.4.1 Generally. The primary intent of this Section 6.4 is to allow Zymeworks to verify payments in the event Celgene
exercises one or more Options and accordingly enters into a Commercial License with respect to one or more Collaboration Sequence Pairs. 

  
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 6.4.2 Records. Celgene will keep (and will cause its Related Parties to keep)
complete, true and accurate books and records in sufficient detail for Zymeworks to determine payments due to Zymeworks under this Agreement, including Royalties. Celgene will keep such books and records for at least [...***...] following the
end of the Calendar Year to which they pertain. 
 6.4.3 Audit Rights. 

(a) Zymeworks shall have the right during the [...***...] period described in Section 6.4.1 to appoint at its expense an
independent certified public accountant of nationally recognized standing (the “Accounting Firm”) reasonably acceptable to Celgene to inspect or audit the relevant records of Celgene and its Related Parties to verify that the amount
of such payments were correctly determined. Celgene and its Related Parties shall each make its records available for inspection or audit by the Accounting Firm during regular business hours at such place or places where such records are customarily
kept, upon reasonable notice from Zymeworks, solely to verify the payments hereunder were correctly determined. Such inspection or audit right shall not be exercised by Zymeworks more than once in any Calendar Year and may cover a period ending not
more than [...***...] prior to the date of such request. All records made available for inspection or audit pursuant to this Section 6.4.2 shall be deemed to be Confidential Information of Celgene. The results of each inspection or audit,
if any, shall be binding on both Parties unless a Party instead chooses to escalate the results to the dispute resolution process described in Section 14.5. If the amount of any payment hereunder was underreported, Celgene shall promptly (but
in any event no later than [...***...] after Celgene’s receipt of the Accounting Firm’s report so concluding) make payment to Zymeworks of the underreported amount. Zymeworks shall bear the full cost of an audit that it conducts
pursuant to this Section 6.4.2 unless such audit discloses an under reporting by Celgene of more than [...***...] percent ([...***...]%) of the aggregate amount of the payments hereunder reportable in any Calendar Year, in which
case Celgene shall reimburse Zymeworks for all costs incurred in connection with such inspection or audit. 
 (b) The Accounting
Firm will disclose to Zymeworks only whether the Agreement Payments are correct or incorrect and the specific details concerning any discrepancies. No other information will be provided to Zymeworks without the prior consent of Celgene unless
disclosure is required by Applicable Laws or judicial order. Celgene is entitled to require the Accounting Firm to execute a reasonable confidentiality agreement prior to commencing any such audit. The Accounting Firm shall provide a copy of its
report and findings to Celgene. 
 7. INTELLECTUAL PROPERTY RIGHTS 

7.1 Ownership of Inventions. Ownership of all Inventions, including Patent Rights and other intellectual property rights
with respect to such Inventions, shall be as set forth in this Article 7. Determination of inventorship of Inventions shall be made in accordance with US patent laws. Each Party will continue to own any Patent Rights and Know-How that it owned prior to the Effective Date or creates or obtains outside the scope of this Agreement, or which it licenses to the other Party 

  
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under this Agreement. As between the Parties and notwithstanding anything herein to the contrary, Celgene shall have and retain ownership of the Collaboration Sequence Pairs, Antibodies generated
from and incorporating Collaboration Sequence Pairs, Products incorporating such Antibodies and any mutations or modifications to the Collaboration Sequence Pairs, including [...***...], provided that Zymeworks shall retain all rights in the
Zymeworks Platform and any Inventions comprising improvements thereto. For clarity, all antibody modification or mutations (other than modifications or mutations to the [...***...]) created using the Zymeworks Platform will comprise
improvements thereto and will be owned by Zymeworks, subject to the licenses and the Option set forth in Section 2.1. Except as otherwise provided in the foregoing sentence, Inventions that are made solely by Zymeworks (and all intellectual
property rights therein, including the Patent Rights claiming them) shall be owned solely by Zymeworks; Inventions that are made solely by Celgene (and all intellectual property rights therein, including the Patent Rights claiming them) shall be
owned solely by Celgene; and Joint Inventions (and the Joint Patent Rights) shall be owned jointly by the Parties. Subject to Article 2, each Party has the right to grant licenses under such Joint Inventions (and the Joint Patent Rights) to any
Third Party without the consent of, or accounting to, the other Party. 
 7.2 Patent Prosecution and
Maintenance.
 7.2.1 Definitions. As used in this Section 7.2, “prosecution” includes
(a) all communication and other interaction with any patent office or patent authority having jurisdiction over a patent application in connection with pre-grant proceedings and (b) interferences,
reexaminations, reissues, oppositions, and the like. 
 7.2.2 Zymeworks Patent Rights. Zymeworks, at Zymeworks’ expense,
shall have the sole right to control the preparation, filing, prosecution and maintenance of Zymeworks Patent Rights using patent counsel of Zymeworks’ choice. Zymeworks shall keep Celgene reasonably informed with respect to the status of the
filing, prosecution and maintenance of the Zymeworks Patent Rights and, upon Celgene’s request, shall provide copies of material submissions to any patent office related to the filing, prosecution and maintenance of the Zymeworks Patent Rights.
Zymeworks shall promptly give notice to Celgene of the grant, lapse, revocation, surrender, invalidation or abandonment of any Zymeworks Patent Rights licensed to Celgene under this Agreement. 

7.2.3 Celgene Patent Rights. Celgene, at Celgene’s expense, shall have the sole right to control the preparation, filing,
prosecution and maintenance of Celgene Patent Rights using patent counsel of Celgene’s choice. Celgene shall keep Zymeworks reasonably advised with respect to the status of the filing, prosecution and maintenance of the Celgene Patent Rights
and shall provide copies of material submissions to any patent office related to the filing, prosecution and maintenance of the Celgene Patent Rights to Zymeworks for review and comment at least [...***...] prior to the submission thereof.
Celgene shall take into consideration any comments from Zymeworks. Celgene shall promptly give notice to Zymeworks of the grant, lapse, revocation, surrender, invalidation or abandonment of any Joint Patent Rights. 

  
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 7.2.4 Joint Patent Rights. 

(a) Celgene, at Celgene’s expense, shall have the first right to control the preparation, filing, prosecution and maintenance of
Joint Patent Rights using patent counsel reasonably acceptable to Zymeworks. Celgene shall keep Zymeworks reasonably advised with respect to the status of the filing, prosecution and maintenance of the Joint Patent Rights and shall provide copies of
material submissions to any patent office related to the filing, prosecution and maintenance of the Joint Patent Rights to Zymeworks for review and comment at least [...***...] prior to the submission thereof. Celgene shall take into
consideration any comments from Zymeworks. Celgene shall promptly give notice to Zymeworks of the grant, lapse, revocation, surrender, invalidation or abandonment of any Joint Patent Rights. 

(b) Celgene may elect not to file or to cease prosecution or maintenance of Joint Patent Rights on a country-by-country basis, and if it does so, Celgene shall give timely notice to Zymeworks. Zymeworks may by notice to Celgene assume prosecution or maintenance of such Joint Patent Rights at Zymeworks’
expense, in which case Celgene shall promptly assign to Zymeworks all of its rights, title and interest in and to such Joint Patents. 

7.2.5 Cooperation in Prosecution. Each Party shall provide the other Party all reasonable assistance and cooperation in the
patent prosecution efforts provided above in Section 7.2, including providing any necessary powers of attorney and assignments of employees of the Parties and their Affiliates and sublicensees and Third Party contractors and executing any other
required documents or instruments for such prosecution. All communications between the Parties relating to the preparation, filing, prosecution or maintenance of the Zymeworks Patent Rights, Celgene Patent Rights and Joint Patent Rights, 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 Patent Rights, shall be considered Confidential Information, subject to Article 8. For clarity, all
such communications regarding the Zymeworks Patent Rights shall be the Confidential Information of Zymeworks, all such communications regarding the Celgene Patent Rights shall be the Confidential Information of Celgene and all such communications
regarding Joint Patent Rights shall be the Confidential Information of both Parties. 
 7.3 Enforcement and
Defense.
 7.3.1 Notice. Each Party shall provide prompt notice to the other Party of any infringement of a Zymeworks
Patent Right, Celgene Patent Right or Joint Patent Right by a product incorporating an antibody or antibody analogue that incorporates the Collaboration Sequence Pairs of a Product then under development or being commercialized hereunder of which
such Party becomes aware (a “Competing Infringement”). Celgene and Zymeworks shall thereafter consult and cooperate fully to determine a course of action, including the commencement of legal action by either or both Celgene
and Zymeworks, to terminate any such Competing Infringement. 
 7.3.2 Zymeworks Patent Rights. Zymeworks shall have the first
right to enforce the Zymeworks Patent Rights with respect to any Competing Infringement, and to defend any declaratory judgment action with respect thereto, at its own expense and by counsel of its own choice and in the name of Zymeworks and shall
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actions. If Zymeworks fails to bring or defend any such action against a Competing Infringement within (a) [...***...] following the notice of alleged Competing Infringement provided
pursuant to Section 7.3.2 or (b) [...***...] before the time limit, if any, set forth in Applicable Laws for the filing of such actions, whichever comes first, Celgene shall have the right to bring and control any such action at its own
expense and by counsel of its own choice, and Zymeworks shall have the right, at its own expense, to be represented in any such action by counsel of its own choice. In no event shall Celgene admit the invalidity of, or after exercising its right to
bring and control an action under this Section 7.3.2, fail to defend the validity of, any Zymeworks Patent Rights without Zymeworks’ prior written consent, which shall not be unreasonably withheld, conditioned or delayed. 

7.3.3 Celgene Patent Rights. Celgene shall have the sole right, but not an obligation, to enforce the Celgene Patent Rights with
respect to any Competing Infringement, and to defend any declaratory judgment action with respect thereto, at its own expense and by counsel of its own choice and in the name of Celgene and shall notify Zymeworks of such enforcement actions. 

7.3.4 Joint Patent Rights. Celgene shall have the first right to enforce Joint Patent Rights and to control the defense of any
declaratory judgment action relating thereto, with respect to such Competing Infringement at its own expense and by counsel of its own choice reasonably acceptable to Zymeworks (such acceptance which shall not be unreasonably withheld, conditioned
or delayed), and Zymeworks shall have the right, at its own expense, to be represented in any such action by counsel of its own choice. If Celgene fails to bring or defend such action within (a) [...***...] following the notice of alleged
Competing Infringement or (b) [...***...] before the time limit, if any, set forth in the Applicable Laws for the filing of such actions, whichever comes first, Zymeworks shall have the right to bring and control any such action at its own
expense and by counsel of its own choice, and Celgene shall have the right, at its own expense, to be represented in any such action by counsel of its own choice. In no event shall either Party admit the invalidity of, or after exercising its right
to bring and control an action under this Section 7.3.3, fail to defend the validity of any Joint Patent Rights without the other Party’s prior written consent. 

7.3.5 Competing Infringement Action. In the event a Party brings an Competing Infringement action in accordance with this
Section 7.3 (the “Controlling Party”), such Controlling Party shall keep the other Party reasonably informed of the progress of any such action, and the other Party shall cooperate fully with the Controlling Party, at
the Controlling Party’s request and expense, including by providing information and materials and, if required to bring such action, the furnishing of a power of attorney or being named as a party. Neither Party shall have the right to settle
any Competing Infringement action under this Section 7.3 relating to Joint Patent Rights without the prior written consent of the other Party, which shall not be unreasonably withheld, conditioned or delayed. 

7.3.6 Recovery. Except as otherwise agreed by the Parties as part of a cost-sharing arrangement, any recovery obtained by either
or both Celgene and Zymeworks in connection with or as a result of any action contemplated by this Section 7.3, whether by settlement or otherwise, shall be shared in order as follows: 

  
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 (a) the Party which initiated and prosecuted the action shall recoup all of its costs
and expenses incurred in connection with the action; 
 (b) the other Party shall then, to the extent possible, recover its costs
and expenses incurred in connection with the action; and 
 (c) the portion of any recovery remaining related to the Products
hereunder shall be shared by the Parties [...***...] in favor of the Controlling Party, otherwise, the remainder shall be retained by or paid to Zymeworks if arising from the Zymeworks Patent Rights or shared equally if arising from the Joint
Patent Rights. 
 7.3.7 Certification. Each Party shall inform the other Party of any certification regarding any Zymeworks
Patent Rights, Celgene Patent Right or Joint Patent Rights it received with respect to a Product pursuant to either 21 U.S.C. §§355(b)(2)(A)(iv) or (j)(2)(A)(vii)(IV) or its successor provisions, or any similar provisions in a country in
the Territory other than the United States, and shall provide the other Party with a copy of such certification within [...***...] days of receipt. Zymeworks’ and Celgene’s rights with respect to the initiation and prosecution of any
legal action as a result of such certification or any recovery obtained as a result of such legal action shall be as defined in Section 7.3.2 through Section 7.3.6 hereof. Regardless of which Party has the right to initiate and prosecute
such action, both Parties shall, as soon as practicable after receiving notice of such certification, convene and consult with each other regarding the appropriate course of conduct for such action. The
non-initiating Party shall have the right to be kept reasonably informed and participate in decisions regarding the appropriate course of conduct for such action. 

7.3.8 Defense of Infringement Claims. In the event that a claim is brought against either Party alleging the infringement,
violation or misappropriation of any Third Party intellectual property right based on the manufacture, use, sale or importation of the Antibodies or the Products, the Parties shall promptly meet to discuss the defense of such claim, and the Parties
shall enter into a joint defense agreement with respect to the common interest privilege protecting communications regarding such claim in a form reasonably acceptable to the Parties. 

8. CONFIDENTIALITY 

8.1 Duty of Confidence. During the Term and for [...***...] thereafter, all Confidential Information disclosed by one
Party to the other Party hereunder shall be maintained in confidence by the receiving Party and shall not be disclosed to any Third Party or used for any purpose, except as set forth herein, without the prior written consent of the disclosing Party.
The recipient Party may only use Confidential Information of the other Party for purposes of exercising its rights and fulfilling its obligations under this Agreement and may disclose Confidential Information of the other Party and its Affiliates to
employees, agents, contractors, consultants and advisers of the recipient Party and its Affiliates, Collaborators, licensees and sublicensees to the extent reasonably necessary for such purposes; provided that such persons and entities are
bound by confidentiality and non-use of the Confidential Information consistent with the confidentiality provisions of this Agreement as they apply to the recipient Party. 

  
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 8.2 Exceptions. The obligations under this Article 8 shall not apply to
any information to the extent the recipient Party can demonstrate by competent evidence that such information: 
 8.2.1 is (at the
time of disclosure) or becomes (after the time of disclosure) known to the public or part of the public domain through no breach of this Agreement by the recipient Party or its Affiliates; 

8.2.2 was known to, or was otherwise in the possession of, the recipient Party or its Affiliates prior to the time of disclosure by the
disclosing Party; 
 8.2.3 is disclosed to the recipient Party or an Affiliate on a
non-confidential basis by a Third Party that is entitled to disclose it without breaching any confidentiality obligation to the disclosing Party or any of its Affiliates; or 

8.2.4 is independently developed by or on behalf of the recipient Party or its Affiliates, as evidenced by its written records, without
use of or reference to the Confidential Information disclosed by the disclosing Party or its Affiliates under this Agreement. 
 8.3
Authorized Disclosures. Subject to this Section 8.3, the recipient Party may disclose Confidential Information belonging to the other Party to the extent permitted as follows: 

8.3.1 such disclosure is deemed necessary by counsel to the recipient Party to be disclosed to such Party’s attorneys, independent
accountants or financial advisors for the sole purpose of enabling such attorneys, independent accountants or financial advisors to provide advice to the receiving Party, on the condition that such attorneys, independent accountants and financial
advisors are bound by confidentiality and non-use obligations consistent with the confidentiality provisions of this Agreement as they apply to the recipient Party; 

8.3.2 disclosure by either Party or its Affiliates to governmental or other regulatory agencies in order to obtain and maintain patents
consistent with Article 7 or disclosure by Celgene or a Celgene Affiliate or sublicensee to gain or maintain approval to conduct Clinical Trials for a Product, to obtain and maintain Marketing Authorization or to otherwise develop, manufacture and
market Products, but such disclosure may be only to the extent reasonably necessary to obtain and maintain patents or authorizations; 

8.3.3 disclosure required in connection with any judicial or administrative process relating to or arising from this Agreement
(including any enforcement hereof) or to comply with applicable court orders or governmental regulations or Applicable Laws (e.g. securities regulations or filings, particularly those relating to public companies); or 

8.3.4 disclosure to potential or actual investors or potential or actual acquirers in connection with due diligence or similar
investigations by such Third Parties; provided, in each case, that any such potential or actual investor or acquirer agrees to be bound by confidentiality and non-use obligations consistent with those
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recipient Party. Notwithstanding the preceding, Zymeworks may not so disclose to investors or prospective acquirers the Collaboration Sequence Pairs or other data generated by Celgene with
respect to any Collaboration Sequence Pair, Antibody or Product and disclosed to Zymeworks hereunder without Celgene’s prior written permission, except Zymeworks may disclose the Targets that Collaboration Sequence Pairs are Directed to (but
not the Collaboration Sequence Pairs themselves) to a potential or actual acquirer only: (a) if the potential or actual acquirer agrees to be bound by confidentiality and non-use obligations consistent
with those contained in this Agreement as they apply to Zymeworks and (b) as part of a late-stage diligence process in connection with the negotiation of a definitive agreement for the acquisition by the acquirer of Zymeworks, after a term
sheet has been agreed to and the Board of Directors of Zymeworks has approved such terms for the acquisition by the potential acquirer of Zymeworks. 

If the recipient Party is required by judicial or administrative process to disclose Confidential Information that is subject to the non-disclosure provisions of this Article 8, such Party shall promptly inform the other Party of the disclosure that is being sought in order to provide the other Party an opportunity to challenge or limit the
disclosure obligations. Confidential Information that is disclosed as permitted by this Section 8.3 shall remain otherwise subject to the confidentiality and non-use provisions of this Article 8, and the
Party disclosing Confidential Information as permitted by this Section 8.3 shall take all steps reasonably necessary, including obtaining an order of confidentiality and otherwise cooperating with the other Party, to ensure the continued
confidential treatment of such Confidential Information. 
 9. PUBLICATIONS AND PUBLICITY 

9.1 Publications.

9.1.1 Neither Party shall have the right to publish the results of the Research Program with respect to the Products or Antibodies
without the prior written consent of the other Party. A Party, its employees or consultants wishing to make a publication of the results of its activities under the Agreement that contains the other Party’s Confidential Information shall
deliver to such Party a copy of the proposed written publication or an outline of an oral disclosure at least [...***...] prior to the proposed submission for publication or presentation. 

9.1.2 Additionally, the reviewing Party shall have the right (a) to request the removal of its Confidential Information from any
such publication or presentation by the other Party, or (b) to request a reasonable delay in publication or presentation in order to protect patentable information. 

9.2 Publicity. The Parties will issue a mutually approved a press release with respect to this Agreement, to be released at
a mutually agreeable time, and either Party may then make subsequent public disclosure of the contents of such press release. Subject to the foregoing, each Party agrees not to issue any press release or other public statement, whether oral or
written, disclosing the terms hereof or any the activities under the Research Program conducted hereunder without the prior written consent of the other Party (such consent not to be 

  
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unreasonably withheld, conditioned or delayed), provided however, that neither Party will be prevented from complying with any duty of disclosure it may have pursuant to Applicable
Laws or pursuant to the rules of any recognized stock exchange or quotation system, subject to that Party notifying the other Party of such duty and limiting such disclosure as reasonably requested by the other Party (and giving the other Party
sufficient time to review and comment on any proposed disclosure). In the event that Zymeworks desires to make a public announcement regarding any payment under Section 5.4 or 5.5 (or the occurrence of the activity related thereto), or under
Section 5.3 if and only if an Antibody relating to the exercise of the Option to a Collaboration Sequence Pair has commenced at least [...***...] prior to such announcement, Zymeworks will provide Celgene with no less than
[...***...] in which to review and approve such announcement, such approval not to be unreasonably withheld, conditioned or delayed. 

10. TERM AND TERMINATION 

10.1 Term.

10.1.1 The term of this Agreement (the “Term”) will commence on the Effective Date and (subject to earlier termination
in accordance with Section 10.2 or Section 10.3) will expire, on a Collaboration Sequence Pair-by-Collaboration Sequence Pair basis, upon the expiration of the
Option Term for such Collaboration Sequence Pair, unless, during the Option Term, Celgene exercises its Option with respect to such Collaboration Sequence Pair. For clarity, if this Agreement expires with respect to all Collaboration Sequence Pairs
in accordance with this Section 10.1.1, then this Agreement shall expire in its entirety. 
 10.1.2 Notwithstanding
Section 10.1.1, in the event that Celgene exercises its Option with respect to one or more Collaboration Sequence Pairs in accordance with Section 2.1.2 (for purposes of this Section 10.1.2, each such Collaboration Sequence Pair, a
“Commercial Sequence Pair”), then subject to earlier termination in accordance with Section 10.2 or Section 10.3, the Term shall expire, on a Commercial Sequence Pair-by-Commercial Sequence Pair, on the expiration of the Royalty Term for Products incorporating Antibodies generated from and incorporating such Collaboration Sequence Pair. 

Upon expiration of this Agreement under Section 10.1.2 (but not under Section 10.1.1) with respect to a Commercial Sequence Pair,
the licenses granted under Article 2 shall become non-exclusive, fully paid-up, perpetual licenses, solely with respect to such Commercial Sequence Pair. For clarity,
upon expiration of the last-to-expire Royalty Term, this Agreement shall expire in its entirety. 

10.2 Termination by Celgene.

10.2.1 Celgene shall have the right to terminate this Agreement at any time in its sole discretion upon [...***...] advance
notice to Zymeworks with respect to: 
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 (b) any Collaboration Sequence Pair and the associated Antibody(ies) and Product(s)
(such Antibody(ies) and Product(s), the “Terminated Antibodies and Products”). 
 10.2.2 Termination for Patent
Challenge. Notwithstanding anything herein to the contrary, in the event that a Party or its Affiliates file or initiate an action challenging (directly or indirectly (e.g., through a Third Party)) in a court or by administrative
proceeding seeking the invalidity or unenforceability or seeking to limit the scope of any Zymeworks Patent Rights (if by Celgene) or any Celgene Patent Rights licensed to Zymeworks hereunder (if by Zymeworks), then such Party, at its discretion,
may give notice to the challenging Party that the licenses and the Options, in each case if applicable, granted to the challenging Party will terminate unless such challenge is withdrawn, abandoned, or terminated (as appropriate) within
[...***...]. In the event that the challenging Party or its Affiliates (as the case may be) does not withdraw, abandon or terminate (as appropriate) such challenge within such [...***...] period, the
non-challenging Party may terminate the licenses and the Options granted to the other Party hereunder, if applicable. Notwithstanding the research license granted to Zymeworks under Section 2.2, Celgene
has not, as of the Effective Date, granted any licenses to Zymeworks under the Celgene Patent Rights hereunder that could result in Celgene’s ability to terminate in accordance with this Section 10.2.2, and this Section 10.2.2 will
not be applicable with respect to a patent challenge by Zymeworks unless and until Celgene grants a commercial license to Zymeworks under the Celgene Patent Rights hereunder. 

10.3 Termination for Cause. If either Celgene or Zymeworks is in material breach of any obligation hereunder, the non-breaching Party may give notice to the breaching Party specifying the claimed particulars of such breach, and in such event, if the breach is not cured within [...***...] after receipt of such notice, the non-breaching Party shall have the rights thereafter to terminate this Agreement immediately by giving notice to the breaching Party to such effect. In the event that one Party claims that the other Party (the
“Breaching Party”) has materially breached its obligations hereunder, and the Breaching Party (by written notice to the other Party) disputes in good faith such material breach or its failure to cure such breach within the applicable cure
period, then such dispute may be submitted to dispute resolution in accordance with Section 14.5, and the arbitrator shall have the right to award attorney fees to the prevailing Party. In such event, the Party alleging such breach does not
have the right to terminate this Agreement pursuant to this Section 10.3, until it has been determined, pursuant to such dispute resolution procedure, that the Breaching Party is in material breach of this Agreement, and such Breaching Party
further fails to cure such breach within [...***...] after the conclusion of any such procedure; provided that in the event that Celgene is the Breaching Party and such dispute is with respect to a payment obligation hereunder, Celgene shall
be obligated to pay [...***...] percent ([...***...]%) of the amount owed to cure such breach. In the event that Celgene fails to pay such amount (plus any attorney fees awarded to Zymeworks by the arbitrator), Zymeworks shall have the
right to terminate this Agreement with respect to the Product(s) and Collaboration Sequence Pair(s) with respect to which such amount was owed. 

  
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 11. EFFECTS OF TERMINATION 

11.1 Termination of Agreement. If this Agreement terminates in its entirety for any reason, then no later than
[...***...] days after the effective date of such termination, Celgene shall pay all amounts then due and owing as of the termination date and each Party shall return or cause to be returned to the other Party, or destroy, all Confidential
Information received from the other Party and all copies thereof; provided, however, that each Party may keep one (1) copy of Confidential Information received from the other Party in its confidential files for record purposes. In
the event of termination of this Agreement, except as expressly set forth otherwise in this Agreement (including under the surviving provisions set forth in Section 11.2), the rights and obligations of the Parties hereunder shall terminate as
of the date of such termination, and Celgene shall cease all development and commercialization of the Antibodies and Products (or in the case of a termination pursuant to Section 10.2.1(b), the Terminated Antibodies and Products). In no event shall
Zymeworks be obligated to repurchase any Common Shares or other equity interest purchased by Celgene pursuant to the Subscription Agreement or otherwise, in connection with the expiration or termination of this Agreement. 

11.2 Survival. Termination of this Agreement shall not relieve the Parties of any obligation accruing prior to such
termination, nor affect in any way the survival of any other right, duty or obligation of the Parties which is expressly stated elsewhere in this Agreement to survive such termination. Without limiting the foregoing and except as expressly set forth
otherwise in this Agreement, Article 1, 8, 9, 11, 13, and 14 and Section 6.4, 7.1, 12.3, and 12.4 shall survive. Except as otherwise expressly provided herein, all other rights and obligations of the Parties under this Agreement shall terminate
upon termination of this Agreement. For clarity, in the event of a termination pursuant to Section 10.2.1(b) and subject to this Section 11.2, the rights and obligations of the Parties shall terminate solely with respect to the Terminated
Antibodies and Products. 
 11.3 Damages; Relief. Termination of this Agreement shall not preclude either Party from
claiming any other damages, compensation or relief that it may be entitled to upon such termination. 
 11.4 Bankruptcy
Code. If this Agreement is rejected by a Party as a debtor under Section 365 of the United States Bankruptcy Code or similar provision in the bankruptcy laws of another jurisdiction (a “Code”), then,
notwithstanding anything else in this Agreement to the contrary, all licenses and rights to licenses granted under or pursuant to this Agreement by the Party in bankruptcy to the other Party are, and shall otherwise be deemed to be, for purposes of
Section 365(n) of the United States Bankruptcy Code (or similar provision in the bankruptcy laws of the jurisdiction), licenses of rights to “intellectual property” as defined under Section 101(35A) of the United States Bankruptcy
Code (or similar provision in the bankruptcy laws of the jurisdiction). The Parties agree that a Party that is a licensee of rights under this Agreement shall retain and may 

  
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fully exercise all of its rights and elections under the Code. The foregoing provisions of this Section 11.4 are without prejudice to any rights a Party may have arising under the Code. The
Parties further agree that, if a Party elects to retain its rights as a licensee under any Code, such Party shall be entitled to complete access to any technology licensed to it hereunder and all embodiments of such technology. Such embodiments of
the technology shall be delivered to the licensee Party not later than: (a) the commencement of bankruptcy proceedings against the licensor, upon written request, unless the licensor elects to perform its obligations under the Agreement, or
(b) if not delivered under this Section 11.4, upon the rejection of this Agreement by or on behalf of the licensor, upon written request. Any agreements supplemental hereto will be deemed to be “agreements supplementary to” this
Agreement for purposes of Section 365(n) of the Bankruptcy Code. 
 12. REPRESENTATIONS AND WARRANTIES 

12.1 Representations and Warranties by Each Party. Each Party represents and warrants to the other as of the Effective Date
that: 
 12.1.1 it is a corporation duly organized, validly existing, and in good standing under the laws of its jurisdiction of
formation; 
 12.1.2 it has full corporate power and authority to execute, deliver, and perform this Agreement, and has taken all
corporate action required by Applicable Laws and its organizational documents to authorize the execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement; 

12.1.3 this Agreement constitutes a valid and binding agreement enforceable against it in accordance with its terms (except as the
enforceability thereof may be limited by bankruptcy, bank moratorium or similar laws affecting creditors’ rights generally and laws restricting the availability of equitable remedies and may be subject to general principles of equity whether or
not such enforceability is considered in a proceeding at law or in equity); and 
 12.1.4 the execution and delivery of this
Agreement and all other instruments and documents required to be executed pursuant to this Agreement, and the consummation of the transactions contemplated hereby do not and shall not (a) conflict with or result in a breach of any provision of
its organizational documents, (b) result in a breach of any agreement to which it is a party; or (c) violate any Applicable Laws. 

12.2 Representations, Warranties and Covenants by Zymeworks. Zymeworks represents, warrants as of the Effective Date and
covenants to Celgene as follows: 
 12.2.1 Zymeworks has the right to grant to Celgene the licenses and rights under Section 2.1
that it purports to grant hereunder; 

  
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 12.2.2 Zymeworks has not granted, and will not grant during the Term, rights to any
Third Party under the Zymeworks Intellectual Property that conflict with the rights granted to Celgene hereunder; 
 12.2.3 As of the
Effective Date, Zymeworks has not received any written notice of any threatened claims or litigation seeking to invalidate or otherwise challenge the Zymeworks Patent Rights or Zymeworks’ rights therein; 

12.2.4 To its knowledge as of the Effective Date, the Zymeworks Patent Rights are not subject to any pending re-examination, opposition, interference or litigation proceedings; 
 12.2.5 To its knowledge as
of the Effective Date, the Zymeworks Intellectual Property is not being infringed or misappropriated by any Third Party; 
 12.2.6 To
its knowledge as of the Effective Date, the use of the Zymeworks Intellectual Property (itself and without regard to any specific Target or Sequence) in accordance with this Agreement will not infringe any valid, issued Third Party patents or
misappropriate any Third Party know-how at the time Marketing Authorization is likely to be received for the first Product pursuant to this Agreement; and 

12.2.7 As of the Effective Date, [...***...]. 

12.3 Limitation. NEITHER PARTY MAKES ANY REPRESENTATION OR WARRANTY, EITHER EXPRESS OR IMPLIED, THAT ANY OF THE RESEARCH,
DEVELOPMENT AND/OR COMMERCIALIZATION EFFORTS WITH REGARD TO ANY ANTIBODY OR PRODUCT WILL BE SUCCESSFUL. 
 12.4 No Other
Warranties. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL REPRESENTATIONS OR WARRANTIES OF ANY KIND WITH RESPECT TO THE SUBJECT MATTER OF THIS AGREEMENT, EITHER EXPRESS OR IMPLIED,
INCLUDING ANY WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 

13. INDEMNIFICATION AND LIABILITY 

13.1 Indemnification by Zymeworks. Zymeworks shall indemnify, defend and hold Celgene and its Affiliates, and their
respective officers, directors, employees, contractors, agents and assigns (each, a “Celgene Indemnified Party”), harmless from and against losses, damages and liability, including reasonable legal expense and attorneys’ fees
(collectively, “Losses”) incurred by any Celgene Indemnified Party as a result of any Third Party demands, claims or actions (“Claims”) against any Celgene Indemnified Party arising or resulting from: (a) the
research or development of 

  
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Antibodies by Zymeworks or its Affiliates or Third Parties acting under their authority under this Agreement, except for such activities undertaken at the specific written request of Celgene or
pursuant to the Workplan; provided that Zymeworks’ indemnification obligations under this clause (a) shall not include product liability claims; (b) the negligence or willful misconduct of Zymeworks or its Affiliates or Third Parties
(including licensees, other than Celgene, and contractors) acting under their authority pursuant to this Agreement; or (c) the material breach of any term in or the covenants, warranties, representations made by Zymeworks to Celgene under this
Agreement. Zymeworks is only obliged to so indemnify and hold the Celgene Indemnified Parties harmless to the extent that such Claims do not arise from the material breach of this Agreement by or the negligence or willful misconduct of Celgene or
its Related Parties. 
 13.2 Indemnification by Celgene. Celgene shall indemnify, defend and hold Zymeworks and its
Affiliates, and their respective officers, directors, employees, contractors, agents and assigns (each, a “Zymeworks Indemnified Party”), harmless from and against Losses incurred by any Zymeworks Indemnified Party as a result of
any Third Party Claims against any Zymeworks Indemnified Party (including product liability claims) arising or resulting from: (a) the research, development or commercialization of Antibodies or Products by Celgene or its Affiliates or Third
Parties acting under their authority under this Agreement, except for such activities undertaken at the specific written request of Zymeworks; (b) the negligence or willful misconduct of Celgene or its Affiliates or Third Parties (including
Collaborators and other sublicensees and contractors) acting under their authority pursuant to this Agreement; or (c) the material breach of any term in or the covenants, warranties, representations made by Celgene to Zymeworks under this
Agreement. Celgene is only obliged to so indemnify and hold the Zymeworks Indemnified Parties harmless to the extent that such Claims do not arise from the material breach of this Agreement or the negligence or willful misconduct of Zymeworks or its
Related Parties. 
 13.3 Indemnification Procedure.

13.3.1 Any Celgene Indemnified Party or Zymeworks Indemnified Party seeking indemnification hereunder (“Indemnified
Party”) shall notify the Party against whom indemnification is sought (“Indemnifying Party”) in writing reasonably promptly after the assertion against the Indemnified Party of any Claim in respect of which the Indemnified
Party intends to base a claim for indemnification hereunder, but the failure or delay so to notify the Indemnifying Party shall not relieve the Indemnifying Party of any obligation or liability that it may have to the Indemnified Party except to the
extent that the Indemnifying Party demonstrates that its ability to defend or resolve such Claim is adversely affected thereby. 

13.3.2 Subject to the provisions of Section 13.3.3 below, the Indemnifying Party shall have the right, upon providing notice to
the Indemnified Party of its intent to do so within [...***...] after receipt of the notice from the Indemnified Party of any Claim, to assume the defense and handling of such Claim, at the Indemnifying Party’s sole expense. 

  
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 13.3.3 The Indemnifying Party shall select counsel reasonably acceptable to the
Indemnified Party in connection with conducting the defense and handling of such Claim, and the Indemnifying Party shall defend or handle the same in consultation with the Indemnified Party, and shall keep the Indemnified Party timely apprised of
the status of such Claim. The Indemnifying Party shall not, without the prior written consent of the Indemnified Party, agree to a settlement of any Claim which could lead to liability or create any financial or other obligation on the part of the
Indemnified Party for which the Indemnified Party is not entitled to indemnification hereunder, or would involve any admission of wrongdoing on the part of the Indemnified Party. The Indemnified Party shall cooperate with the Indemnifying Party, at
the request and expense of the Indemnifying Party, and shall be entitled to participate in the defense and handling of such Claim with its own counsel and at its own expense. 

13.4 Special, Indirect and Other Losses. NEITHER PARTY NOR ANY OF ITS AFFILIATES SHALL BE LIABLE UNDER THIS AGREEMENT FOR
SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF PROFITS SUFFERED BY THE OTHER PARTY, EXCEPT FOR LIABILITY FOR BREACH OF ARTICLE 8 OR ARTICLE 9. NOTHING IN THIS SECTION 13.4 SHALL BE CONSTRUED TO LIMIT EITHER
PARTY’S INDEMNIFICATION OBLIGATIONS UNDER THIS ARTICLE 13. 
 13.5 Insurance. Each Party, at its own expense, shall
maintain liability insurance (or self-insure) in an amount consistent with industry standards during the Term. Each Party shall provide a certificate of insurance (or evidence of self-insurance) evidencing such coverage to the other Party upon
request. 
 14. GENERAL PROVISIONS 

14.1 Assignment. Except as provided in this Section 14.1, this Agreement may not be assigned or otherwise transferred,
nor may any right or obligation hereunder be assigned or transferred, by either Party without the consent of the other Party; provided, however, that (and notwithstanding anything elsewhere in this Agreement to the contrary) either
Party may, without such consent, assign this Agreement and its rights and obligations hereunder in whole or in part to an Affiliate of such Party; provided further that, either Party, without the written consent of the other Party, may
assign this Agreement and its rights and obligations hereunder (or under a transaction under which this Agreement is assumed) in connection with the transfer or sale of all or substantially all of its assets or business related to the subject matter
of this Agreement, or in the event of its merger or consolidation or similar transaction. Any attempted assignment not in accordance with this Section 14.1 shall be void. Any permitted assignee shall assume all assigned obligations of its
assignor under this Agreement. 

  
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 14.2 Extension to Affiliates. Except as expressly set forth otherwise in this
Agreement, each Party shall have the right to extend the rights and obligations granted in this Agreement to one or more of its Affiliates. All applicable terms and provisions of this Agreement, except this right to extend, shall apply to any such
Affiliate to which this Agreement has been extended to the same extent as such terms and provisions apply to the Party extending such rights and obligations. The Party extending the rights and obligations granted hereunder shall remain primarily
liable for any acts or omissions of its Affiliates. 
 14.3 Severability. Should one or more of the provisions of this
Agreement become void or unenforceable as a matter of Applicable Laws, then this Agreement shall be construed as if such provision were not contained herein and the remainder of this Agreement shall be in full force and effect, and the Parties will
use their best efforts to substitute for the invalid or unenforceable provision a valid and enforceable provision which conforms as nearly as possible with the original intent of the Parties. 

14.4 Governing Law; English Language. This Agreement shall be governed by and construed in accordance with the laws of the
State of New York and the patent laws of the United States without reference to any rules of conflict of laws. This Agreement was prepared in the English language, which language shall govern the interpretation of, and any dispute regarding, the
terms of this Agreement. 
 14.5 Dispute Resolution.

14.5.1 If any dispute, claim or controversy of any nature arising out of or relating to this Agreement, including any action or claim
based on tort, contract or statute, or concerning the interpretation, effect, termination, validity, performance or breach of this Agreement (each, a “Dispute”), arises between the Parties and the Parties cannot resolve such Dispute
through their respective Research Program Leaders or the JRC, if and as applicable, within [...***...] of a written request by either Party to the other Party (“Notice of Dispute”), and such Dispute is not one for which the
JRC Chair has final decision-making as expressly set forth in this Agreement, either Party may refer the Dispute to senior representatives of each Party for resolution. Each Party, within [...***...] after a Party has received such written
request from the other Party to so refer such Dispute, shall notify the other Party in writing of the senior representative to whom such dispute is referred. If, after an additional [...***...] after the Notice of Dispute, such representatives
have not succeeded in negotiating a resolution of the Dispute, and a Party wishes to pursue the matter, each such Dispute, controversy or claim that is not an “Excluded Claim” (defined below) shall be finally resolved by binding
arbitration administered by JAMS pursuant to JAMS’ Streamlined Arbitration Rules and Procedures (the “Rules”). Judgment on the Award may be entered in any court having jurisdiction. This clause shall not preclude Parties from
seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction. 
 14.5.2 The arbitration shall be
conducted by a single arbitrator experienced in the business of pharmaceuticals (including biologicals). If the issues in dispute involve scientific, 

  
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technical or commercial matters, the arbitrator chosen hereunder shall engage experts having educational training or industry experience sufficient to demonstrate a reasonable level of relevant
scientific, medical and industry knowledge, as necessary to resolve the dispute. Within [...***...] after initiation of arbitration, the Parties shall select the arbitrator. If the Parties are unable or fail to agree upon the arbitrator within
such [...***...] period, the arbitrator shall be appointed in accordance with the Rules. The place of arbitration shall be New York, New York, and all proceedings and communications shall be in English. 

14.5.3 Prior to the arbitrator being selected, either Party, without waiving any remedy under this Agreement, may seek from any court
having jurisdiction any temporary injunctive or provisional relief necessary to protect the rights or property of that Party until final resolution of the issue by the arbitrator or other resolution of the controversy between the Parties. Once the
arbitrator has been selected, either Party may apply to the arbitrator for interim injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved, and either Party may apply to a court of competent jurisdiction to
enforce interim injunctive relief granted by the arbitrator. Any final award by the arbitrator may be entered by either Party in any court having appropriate jurisdiction for a judicial recognition of the decision and applicable orders of
enforcement. The arbitrator shall have no authority to award punitive or any other type of damages not measured by a Party’s compensatory damages. Each Party shall bear its own costs and expenses and attorneys’ fees and an equal share of
the arbitrator’s fees and any administrative fees of arbitration, unless the arbitrator agrees otherwise. 
 14.5.4 Except to
the extent necessary to confirm an award or as may be required by law, neither a Party nor the arbitrator may disclose the existence, content, or results of an arbitration without the prior written consent of both Parties. 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 New York statute of limitations. 

14.5.5 As used in this Section 14.5, the term “Excluded Claim” means any dispute, controversy or claim that
concerns (a) the validity, enforceability or infringement of any patent, trademark or copyright, (b) any antitrust, anti-monopoly or competition law or regulation, whether or not statutory, (c) injunctive relief, (d) tax matters,
or (e) international law. Any Excluded Claim may be submitted by either Party to any court of competent jurisdiction over such Excluded Claim. 

14.6 Force Majeure. Neither Party shall be responsible to the other for any failure or delay in performing any of its
obligations under this Agreement or for other nonperformance hereunder (excluding, in each case, the obligation to make payments when due) if such delay or nonperformance is caused by strike, fire, flood, earthquake, accident, war, act of terrorism,
act of God or of the government of any country or of any local government, or by any other cause unavoidable or beyond the control of any Party hereto. In such event, the Party affected will use reasonable efforts to resume performance of its
obligations and will keep the other Party informed of actions related thereto. If any such failure of delay in a Party’s performance hereunder continues for more than one hundred eighty (180) days, the other Party may terminate this
Agreement upon written notice to the delayed Party. 

  
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 14.7 Waivers and Amendments. The failure of any Party to assert a right
hereunder or to insist upon compliance with any term or condition of this Agreement shall not constitute a waiver of that right or excuse a similar subsequent failure to perform any such term or condition by the other Party. No waiver shall be
effective unless it has been given in writing and signed by the Party giving such waiver. No provision of this Agreement may be amended or modified other than by a written document signed by authorized representatives of each Party. 

14.8 Relationship of the Parties. Nothing contained in this Agreement shall be deemed to constitute a partnership, joint
venture, or legal entity of any type between Zymeworks and Celgene, or to constitute one as the agent of the other. Each Party shall act solely as an independent contractor, and nothing in this Agreement shall be construed to give any Party the
power or authority to act for, bind, or commit the other. 
 14.9 Notices. All notices, consents or waivers under this
Agreement shall be in writing and will be deemed to have been duly given when (a) scanned and converted into a portable document format file (i.e., pdf file), and sent as an attachment to an e-mail
message, where, when such message is received, a read receipt e-mail is received by the sender (and such read receipt e-mail is preserved by the Party sending the
notice); provided that a copy is promptly sent by an internationally recognized overnight delivery service (receipt requested), although the sending of the e-mail message shall be when the notice is
deemed to have been given, or (b) the earlier of when received by the addressee or five (5) days after it was sent, if sent by registered letter or overnight courier by an internationally recognized overnight delivery service (receipt
requested), in each case to the appropriate addresses and e-mail addresses set forth below (or to such other addresses and e-mail addresses as a Party may designate by
notice): 

  
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	If to Zymeworks:	 	 Zymeworks, Inc.

540-1385 West 8th Avenue

Vancouver, BC

		 	 Canada
 V6H 3V9

E-mail address: [...***...]

		
	and	 	
		
		 	Wilson Sonsini Goodrich & Rosati
		 	 650 Page Mill Road
 Palo Alto, CA 95070

Attention: [...***...]

		 	E-mail address: [...***...]
		
	If to Celgene:	 	Celgene Corporation
		 	86 Morris Avenue
		 	 Summit, NJ 07901
 United States of America

ATTN: [...***...]

		
	and	 	
		
		 	Celgene Alpine Investment Co. LLC
		 	 1 Route de Perreux
 2017 Boudry

Switzerland

		 	ATTN: [...***...]

 14.10 Further Assurances. Celgene and Zymeworks hereby covenant and agree without the
necessity of any further consideration, to execute, acknowledge and deliver any and all documents and take any action as may be reasonably necessary to carry out the intent and purposes of this Agreement. 

14.11 Compliance with Law. Each Party shall perform its obligations under this Agreement in accordance with all Applicable
Laws. No Party shall, or shall be required to, undertake any activity under or in connection with this Agreement which violates, or which it believes, in good faith, may violate, any Applicable Laws. 

14.12 No Third Party Beneficiary Rights. This Agreement is not intended to and shall not be construed to give any Third
Party any interest or rights (including any Third Party beneficiary rights) with respect to or in connection with any agreement or provision contained herein or contemplated hereby, except as otherwise expressly provided for in this Agreement. 

  
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 14.13 Entire Agreement. This Agreement sets forth the entire agreement and
understanding of the Parties as to the subject matter hereof and supersedes all proposals, oral or written, and all other communications between the Parties with respect to such subject matter. The Parties acknowledge and agree that, as of the
Effective Date, all Confidential Information disclosed pursuant to the Confidentiality Agreement by a Party or its Affiliates shall be included in the Confidential Information subject to this Agreement and the Confidentiality Agreement is hereby
superseded in its entirety; provided, that the foregoing shall not relieve any Person of any right or obligation accruing under the Confidentiality Agreement prior to the Effective Date. “Confidentiality Agreement” means the
Mutual Non-Disclosure Agreement between Zymeworks and Celgene dated [...***...]. 
 14.14
Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

14.15 Expenses. Each Party shall pay its own costs, charges and expenses incurred in connection with the negotiation,
preparation and completion of this Agreement. 
 14.16 Binding Effect. This Agreement shall be binding upon and inure to
the benefit of the Parties and their respective legal representatives, successors and permitted assigns. 
 14.17
Construction. The Parties hereto acknowledge and agree that: (a) each Party and its counsel reviewed and negotiated the terms and provisions of this Agreement and have contributed to its revision; (b) the rule of
construction to the effect that any ambiguities are resolved against the drafting Party shall not be employed in the interpretation of this Agreement; and (c) the terms and provisions of this Agreement shall be construed fairly as to all
Parties hereto and not in favor of or against any Party, regardless of which Party was generally responsible for the preparation of this Agreement. 

14.18 Cumulative Remedies. No remedy referred to in this Agreement is intended to be exclusive unless explicitly stated to
be so, but each shall be cumulative and in addition to any other remedy referred to in this Agreement or otherwise available under law. 

14.19 Export. Each Party acknowledges that the laws and regulations of the United States restrict the export and re-export of commodities and technical data of United States origin. Each Party 

  
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agrees that it will not export or re-export restricted commodities or the technical data of the other Party in any form without appropriate United States
and foreign government licenses. 
 14.20 Notification and Approval. In the event that this Agreement or the
transaction(s) set forth herein are subject to notification or regulatory approval in one or more countries, then development and commercialization in such country(ies) will be subject to such notification or regulatory approval. The Parties will
reasonably cooperate with each other with respect to such notification and the process required thereunder, including in the preparation of any filing. Celgene will be responsible for any and all costs, expenses, and filing fees associated with any
such filing. 

  
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 IN WITNESS WHEREOF, the Parties intending to be bound have caused this Agreement to be
executed by their duly authorized representatives. 
  

			
	ZYMEWORKS INC.
		
	By:	 	 /s/ Ali Tehrani

	Name:	 	Ali Tehrani, Ph.D.
	Title:	 	President & Chief Executive Officer
	
	CELGENE CORPORATION
		
	By:	 	 /s/ Robert Hugin

	Name:	 	 Robert Hugin

	Title:	 	 Chief Executive Officer

	
	CELGENE ALPINE INVESTMENT CO. LLC
		
	By:	 	 /s/ Robert Hugin

	Name:	 	 Robert Hugin

	Title:	 	 Chief Executive Officer

  
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 EXHIBIT 2.2 

APPROVED ZYMEWORKS CONTRACTORS 
  

					
	 Entity
	 	 Location
	 	 Type of Services

			
	[...***...]	 		 	

  
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 EXHIBIT 3.1.3 

THE INITIAL WORKPLAN 

(as of March 27, 2015) 
 Celgene
Responsibilities: 
  

	 	•	 	[...***...] 

 Zymeworks Responsibilities: 

 

	 	•	 	[...***...] 

  
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 EXHIBIT 5.2 

SUBSCRIPTION AGREEMENT 

SUBSCRIPTION AGREEMENT 

FOR COMMON SHARES 
 THIS
AGREEMENT made the 24th day of December, 2014 
 Celgene Alpine Investment Co. LLC
(hereinafter referred to as the “Subscriber”) hereby agrees to purchase, and Zymeworks Inc. (the “Corporation”) hereby agrees to issue and sell to the Subscriber, 1,652,893 Common Shares (as defined
below) of the Corporation (the “Shares”) for the aggregate subscription price of $10,000,002.65 (the “Subscription Price”), representing a subscription price of $6.05 per Share, upon and subject to the
terms and conditions set forth herein (the “Agreement”). This Agreement is entered into in connection with that certain License and Collaboration Agreement, by and between the Subscriber and the Corporation, dated as of the
date hereof (the “License and Collaboration Agreement”) and that certain Investor Rights Agreement, by and between the Subscriber and the Corporation, dated as of the date hereof (the “Rights
Agreement”, and together with the License and Collaboration Agreement, the “Related Agreements”). 

  
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 Representations, Warranties and Covenants by Subscriber 

1. By executing this Agreement, the Subscriber represents, warrants and covenants to the Corporation (and acknowledges that the Corporation and its counsel
are relying thereon) as follows: 
 (a) Resale Limitations. The Subscriber has been independently advised as to and is aware of the
applicable restrictions on the resale of the Shares imposed by the Securities Act (British Columbia), the regulations and rules made thereunder and all administrative policy statements, blanket orders, notices, directions and rulings issued
by the British Columbia Securities Commission, all as amended (the “B.C. Securities Laws”) and is aware of the risks in purchasing and other characteristics of such securities and of the fact that the Subscriber may not be
able to resell such securities except in accordance with applicable securities legislation and regulatory policies. The Subscriber has been advised to consult its own legal advisers with respect to applicable restrictions on the resale of the Shares
and it is solely responsible (and the Corporation is not in any way responsible) for compliance with applicable resale restrictions, and it will comply with such resale restrictions and agrees that all certificates representing the Shares may bear
certain legends to that effect. 
 (b) Accredited Investor. The Subscriber is agreeing to purchase the Shares pursuant to the
accredited investor prospectus exemption (the “Accredited Investor Exemption”) under section 2.3 of National Instrument 45-106 Prospectus and Registration Exemptions
(“NI 45-106”) and is an “accredited investor” as that term is defined in NI 45-106 and has completed and signed the certificate
attached as Schedule A hereto. The Subscriber is also an “accredited investor” as defined in Rule 501(a) of Regulation D promulgated under the United States Securities Act of 1933, as amended (the
“Act”) and has completed and signed the certificate attached as Schedule B hereto. 
 (c) Purchase for Own
Account. The Subscriber is purchasing the Shares for its own account and not for the account or benefit of any other person, and is doing so for investment purposes only, and not with a view to resell or otherwise distribute any of the Shares in
violation of NI 45-106, the Act or any state or provincial securities laws. 
 (d) Investor
Sophistication. The Subscriber (i) has knowledge and experience in business and financial matters, prior investment experience, including investment in securities that are non-listed, unregistered
and/or not traded on a national securities exchange nor on any automated quotation system; (ii) recognizes the highly speculative nature of this investment; and (iii) is able to bear the economic risk that the Subscriber hereby assumes.
The Subscriber, if an entity, was not formed for the purpose of purchasing the Shares. 
 (e) Disclosure of Information. The
Subscriber, in making the decision to invest in the Shares, has relied solely upon the information provided in this Agreement and Subscriber’s own investigation of the Corporation, including review of any documents, records and books of the
Corporation that Subscriber has requested from the Corporation, which investigation has provided the Subscriber with all the information the Subscriber has deemed necessary for purposes of its investment decision. The Subscriber has had a reasonable
opportunity to ask questions of, and receive answers from, a person or persons acting on behalf of the Corporation concerning the offering of the Shares and the business, financial conditions and result of operations of the Corporation, and all such
questions have been answered by a representative of the Corporation to the full satisfaction of the Subscriber. This Section 1(e) does not limit or modify, however, the representations and warranties of the Corporation in
Section 2 of this Agreement or the right of the Subscriber to rely thereon. 
 (f) Reliance on Advisers. To
the extent necessary, the Subscriber has retained, at its own expense, and relied upon appropriate professional advice regarding the investment, tax and legal merits and consequences of the purchase of the Shares contemplated hereunder and in
particular, the Subscriber has been independently advised as to and is aware of the applicable restrictions on the resale of the Shares imposed by securities legislation in the jurisdiction in which it resides and is aware of the risks and other
characteristics of such Shares and of the fact that the Subscriber may not be able to sell such Shares except in accordance with applicable securities legislation and 

  
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regulatory policies and the Subscriber is solely responsible (and the Corporation is not in any way responsible) for compliance with applicable resale restrictions. 

(g) No General Solicitation. The Subscriber was contacted regarding the sale of the Shares by the Corporation (or its respective
authorized agents or representatives) with whom the Subscriber had a pre-existing relationship and no Shares were offered or sold to the Subscriber by means of any form of general solicitation or general
advertising, and in connection therewith, the Subscriber did not: (i) receive or review any advertisement, article, notice or other communication published in a newspaper or magazine or similar media or broadcast over television or radio,
whether closed circuit, or generally available, or the internet (including without limitation, internet blogs, bulletin boards, discussion groups or social networking sites); or (ii) attend any seminar, meeting or industry investor conference
whose attendees were invited by any general solicitation or general advertising. 
 (h) Residence. The Subscriber is organized in the
State of Delaware. 
 (i) Restricted Securities. The Subscriber understands and acknowledges that the Shares have not been and will
not be registered under the Act or any state securities laws, and that the Corporation has no obligation or present intention of filing a registration statement under the Act in respect of the Shares, and the Shares are intended to be exempt from
registration under the Act pursuant to the provisions of Rule 506 of Regulation D thereunder, which is in part dependent upon the truth, completeness and accuracy of the representations made by the Subscriber herein. 

(j) No Guarantee of Return. The Subscriber acknowledges and understands that no person has made any written or oral representation:
(i) that any person will resell or repurchase any or all of the Shares; (ii) that any person will refund the purchase price of the Shares; or (iii) as to future price or value of the Shares. 

(k) Further Cooperation. If required by applicable securities legislation, policy or order or by any securities commission, stock
exchange or other regulatory authority, the Subscriber will, with respect to this Agreement, execute, deliver and file or assist the Corporation in obtaining and filing such reports, undertakings and other documents relating to the purchase of the
Shares by the Subscriber as may be required. 
 (l) Resale Requirements. The Subscriber, if it decides to offer, sell or otherwise
transfer, pledge or hypothecate all or any part of the Shares, will not offer, sell or otherwise transfer, pledge or hypothecate any of such securities (other than pursuant to an effective registration statement under the Act), directly or
indirectly unless: 
  

	 	(i)	the sale is to the Corporation; or 

  

	 	(ii)	the sale is made outside the United States in accordance with the requirements of Rule 904 of Regulation S under the Act; or 

  

	 	(iii)	the sale is made pursuant to the exemption from registration under the Act provided by Rule 144 thereunder, if available, and in compliance with any applicable state securities laws; or 

 

	 	(iv)	with the prior written consent of the Corporation, the sale is made pursuant to another exemption from registration under the Act and any applicable state securities laws, 

provided that in the case of subparagraphs (iii) and (iv), a written opinion of legal counsel reasonably satisfactory to the Corporation
is addressed and provided to the Corporation to the effect that the proposed transfer may be effected without registration under the Act or any applicable state securities laws. 

(m) No Public Market. The Subscriber acknowledges that there is currently no active trading market for the Shares, an active trading
market for the Shares may never develop, and therefore, the Subscriber may be required to hold the Shares indefinitely. 

  
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 (n) Legends. The Subscriber consents to the placement of a legend on any certificate
or other document evidencing the Shares to the effect that such securities have not been registered under the Act or any state securities or “blue sky” laws and setting forth or referring to the restrictions on transferability and sale
thereof contained in this Agreement and the articles of the Corporation (as amended to date, the “Articles”). The Subscriber acknowledges and consents to the placement of any required legend under applicable Canadian
securities laws on any certificate evidencing the Shares issued to the Subscriber. The Subscriber is aware that the Corporation and its transfer agent will make notations in their appropriate records with respect to the restrictions on the
transferability of such securities. Stop transfer instructions will be placed with the transfer agent of the Shares, if any, or with the Corporation. 
  

	 	(i)	The legends to be placed on each certificate will be in form substantially similar to the following: 

  

	 	(1)	THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF
THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE ACT, (C) PURSUANT TO THE EXEMPTION
FROM REGISTRATION UNDER THE ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR (D) WITH THE PRIOR WRITTEN CONSENT OF THE CORPORATION, PURSUANT TO ANOTHER EXEMPTION FROM
REGISTRATION UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS; PROVIDED THAT IN THE CASE OF SUBPARAGRAPHS (C) AND (D), THE CORPORATION HAS RECEIVED A WRITTEN OPINION OF LEGAL COUNSEL REASONABLY SATISFACTORY TO IT TO THE EFFECT THAT THE
PROPOSED TRANSFER MAY BE EFFECTED WITHOUT REGISTRATION UNDER THE ACT OR ANY APPLICABLE STATE SECURITIES LAWS. 

  

	 	(2)	THE SECURITIES REPRESENTED BY THIS INSTRUMENT ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE, AS SET FORTH IN THE ARTICLES OF THE CORPORATION, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE
CORPORATION. 

  

	 	(3)	UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER OF (I) DECEMBER 24, 2014, AND (II) THE
DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY. 

  

	 	(ii)	The Subscriber acknowledges that if the Subscriber resells any of the Shares outside the United States pursuant to Rule 904 of Regulation S under the Act and in compliance with local laws and regulations, including
holding period restrictions applicable to the Subscriber, at a time when the Corporation is a “foreign issuer” as defined in Regulation S under the Act, the legend set forth in subparagraph (1) above may be removed in connection with
such resale by providing to the Corporation and its transfer agent the certificate for the Shares together with a declaration to the effect that the Shares have been resold pursuant to Rule 904 of Regulation S under the Act, in such form as the
Corporation may prescribe from time to time. 

  
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 (o) Authority. The Subscriber has full power and authority (corporate, statutory and
otherwise) to execute and deliver this Agreement and the Related Agreements. This Agreement and the Related Agreements have been duly and validly executed and delivered by the Subscriber and each constitutes the legal, valid and binding obligation
of the Subscriber, enforceable against the Subscriber in accordance with its terms. 
 (p) Brokers or Finders. The Subscriber has not
engaged, consented to or authorized any broker, finder or intermediary to act on its behalf, directly or indirectly, as a broker, finder or intermediary in connection with the transactions contemplated by the Agreement and the Subscriber hereby
agrees to indemnify and hold harmless the Corporation from and against all fees, commissions or other payments owing to any such person or firm acting on behalf of the Subscriber hereunder. 

(q) Indemnification for Breach of Representations or Warranties. The Subscriber hereby agrees to hold the Corporation and its
directors, officers, employees, affiliates, controlling persons and agents and their respective officers, directors, employees, counsel, controlling persons and agents, and their respective heirs, representatives, successors and assigns harmless and
to indemnify them against all liabilities, costs and expenses incurred by them as a result of any false representation or warranty or any breach or failure by the Subscriber to comply with any covenant made by the Subscriber in this Agreement
(including any Schedules attached hereto). 
 (r) Compliance with Other Instruments. The entering into of this Agreement and the
Related Agreements, and the transactions contemplated hereby and thereby, will not result in the violation of or be in conflict with any of the terms and provisions of any law applicable to, or the constating documents of, the Subscriber or of any
agreement, written or oral, to which the Subscriber may be a party or by which it is or may be bound. 
 (s) Tax Advisers. The
Subscriber acknowledges that purchasing, holding, exercising and disposing of the Shares may have tax consequences under the laws of both Canada and the United States, that prospective purchasers are solely responsible for determining the tax
consequences applicable to their particular circumstances and that the undersigned has been advised by the Corporation to consult its tax advisers concerning investment in the Shares. 

(t) Bad Actors. Neither the Subscriber nor any of its directors, executive officers, other officers that may serve as a director or
officer of any company in which it invests, general partners or managing members, is subject to any “bad actor” disqualifications described in Rule 506(d)(i) through (viii) under the Act (“Disqualification
Events”), except for Disqualification Events covered by Rule 506(d)(2) under the Act and disclosed reasonably in advance of the Closing (as hereinafter defined) in writing in reasonable detail to the Corporation. 

Representations, Warranties and Covenants of the Corporation 

2. The Corporation hereby represents, warrants and covenants to the Subscriber (and acknowledges that the Subscriber is relying thereon) that, except as set
forth on the Schedule of Exceptions furnished to the Subscriber (the “Schedule of Exceptions”) specifically identifying the relevant Section hereof: 

(a) Corporate Authority. The Corporation has the full corporate right, power and authority to carry on its business as now conducted
and as proposed to be conducted, and to execute and deliver this Agreement, and the Related Agreements and to take all actions contemplated hereby and thereby, including to issue the Shares to the Subscriber. 

(b) Organization, Good Standing and Qualification. Corporation is duly incorporated, validly existing and in good standing under the
laws of Canada and is qualified to carry on business in the Province of British Columbia and in each other jurisdiction, if any, in which the failure to so qualify would have a material adverse effect on its business or properties. 

(c) Capitalization and Voting Rights. Except as set forth on the Schedule of Exceptions, immediately prior to Closing, the authorized
capital stock of the Corporation consists, or will consist of: 

  
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	 	(i)	An unlimited number of Common Shares of the Corporation (“Common Shares”) of which 24,865,282 Common Shares are issued and outstanding. 

 

	 	(ii)	The outstanding Common Shares are owned by the shareholders and in the numbers specified in Exhibit C-1 attached hereto. A pro forma capitalization table, assuming the
issuance of the Shares, is attached hereto as Exhibit C-2. 

  

	 	(iii)	The Corporation has not made any representations, agreements or commitments regarding equity incentives to any officer, employee, director or consultant that are inconsistent with the share amounts set forth on
Exhibits C-1 and C-2. 

  

	 	(iv)	The outstanding Common Shares are all duly and validly authorized and issued, fully paid and nonassessable, and were issued in accordance with the registration or qualification provisions of the Act, NI 45-106, B.C. Securities Laws and any relevant state or provincial securities laws, or pursuant to valid exemptions therefrom. 

  

	 	(v)	Except for (A) outstanding options as of the Closing to purchase 1,833,373 Common Shares granted to directors, officers, employees, consultants and other service providers (the “Options”)
pursuant to the Corporation’s Employee Stock Option Plan (the “Option Plan”) and a warrant to purchase 280,000 Common Shares, (B) the investor rights agreement between Eli Lilly and Company and the Corporation dated
October 22, 2014 (the “Lilly Rights Agreement”), (C) the investor rights agreement between Fonds de solidarité des travailleurs du Québec (F.T.Q.) and the Corporation dated December 18, 2014, (the
“FTQ Rights Agreement”) there are no outstanding options, warrants, rights (including conversion or preemptive rights) or agreements for the purchase or acquisition from the Corporation of any shares of its capital stock. No
adjustment to the exercise price or number of shares issuable upon exercise of any of the Options will occur as a result of or in connection with the issuance of the Shares. In addition, the Corporation has reserved 3,139,683 Common Shares for
purchase upon exercise of options to be granted in the future under the Option Plan. Except with respect to the Lilly Rights Agreement and the FTQ Rights Agreement, the voting agreement between the Corporation and certain other shareholders of the
Corporation, and the Articles, the Corporation is not a party or subject to any agreement or understanding and, to the Corporation’s knowledge (which, for purposes of this Section 2 means actual knowledge of the Chief
Executive Officer and Chief Financial Officer of the Corporation after reasonable investigation), there is no agreement or understanding between any persons and/or entities that affects or relates to the voting or giving of written consents with
respect to any security or by a director of the Corporation. 

  

	 	(vi)	No stock plan, stock purchase, stock option or other agreement or understanding between the Corporation and any holder of any securities or rights exercisable or convertible for securities provides for acceleration or
other changes in the vesting provisions or other terms of such agreement or understanding as a result of the occurrence of any event. The Corporation has never adjusted or amended the exercise price of any stock options previously awarded, whether
through amendment, cancellation, replacement grant, repricing or any other means. Except as set forth in the Articles, the Corporation has no obligation (contingent or otherwise) to purchase, redeem or otherwise acquire any shares of its capital
stock or to pay any dividend or make any other distribution in respect thereof. 

  

	 	(vii)	The Corporation has obtained valid waivers of any rights by other parties to purchase any of the Shares covered by this Agreement. 

(d) Subsidiaries. Except as set forth on the Schedule of Exceptions, the Corporation does not presently own or control, directly or
indirectly, any interest in any other corporation, association or business entity. The Corporation is not a participant in any joint venture, partnership, or similar arrangement. 

  
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 (e) Authorization. All corporate action on the part of the Corporation, the officers,
directors and shareholders necessary for the authorization, execution and delivery of this Agreement and the Related Agreements, the performance of all obligations of the Corporation hereunder and thereunder, the authorization, issuance (or
reservation for issuance), sale and delivery of the Shares being sold hereunder has been taken or will be taken prior to the Closing, and this Agreement and the Related Agreements constitute valid and legally binding obligations of the Corporation,
enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally, or
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies. 
 (f)
Valid Issuance of the Shares. The Shares, when issued, sold and delivered in accordance with the terms of this Agreement for the consideration expressed herein, will be duly and validly issued, fully paid and
non-assessable, and will be free and clear of all liens, charges, claims, encumbrances and restrictions on transfer other than restrictions on transfer under this Agreement, the Articles, and under any
applicable U.S., Canadian, state or provincial securities laws. 
 (g) Governmental Consents. No consent, approval, order or
authorization of, or registration, qualification, designation, declaration or filing with, any U.S., Canadian, state, provincial or local governmental authority on the part of the Corporation is required in connection with the consummation of the
transactions contemplated by this Agreement and the Related Agreements, except (i) the filings pursuant to Regulation D, promulgated by the U.S. Securities and Exchange Commission (the “SEC”) under the Act, and the
British Columbia Securities Commission, if needed (which filings will be made within the time period required by Regulation D and NI 45-106, respectively), and (ii) the filings required by applicable
state “blue sky” securities laws and provincial laws, rules and regulations (which filings will be made within the time period required by such laws, rules and regulations). 

(h) Offering. Assuming the accuracy of the representations of the Subscriber in Section 1 of this Agreement,
and subject to the filings described in Section 2(g) above, the offer, sale and issuance of the Shares as contemplated by this Agreement are exempt from the prospectus and registration requirements of applicable U.S., Canadian, state,
provincial and local securities laws, and neither the Corporation nor any authorized agent acting on its behalf will take any action hereafter that would cause the loss of such exemption. 

(i) Litigation. Except as set forth on the Schedule of Exceptions, there is no action, suit, proceeding or investigation pending or, to
the Corporation’s knowledge, currently threatened involving the Corporation or, to the Corporation’s knowledge, any officer, director or key employee of the Corporation with respect to the Corporation, nor is the Corporation aware of any
basis for the foregoing, where such action, suit, proceeding or investigation is reasonably likely to have a material adverse effect on the Corporation. Neither the Corporation nor, to the Corporation’s knowledge, any of its officers, directors
or key employees with respect to the Corporation, is a party to or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality (in the case of officers, directors or key
employees, such as would affect the Corporation in any material respect). There is no material action, suit, proceeding or investigation by the Corporation currently pending or that the Corporation intends to initiate. The foregoing includes,
without limitation, material actions, suits, proceedings or investigations pending or currently threatened involving the prior employment of any of the Corporation’s employees, their use in connection with the Corporation’s business of any
information or techniques allegedly proprietary to any of their former employers, or their obligations under any agreements with prior employers. More specifically, there is no judgment pending or that has been issued against the Corporation and no
order or decision issued against the Corporation in accordance with any statute set out at schedule 1of the Act Respecting Contracting by Public Bodies. 

(j) Proprietary Information Agreements. Except as set forth on the Schedule of Exceptions, each present and former employee and officer
of the Corporation has executed an intellectual property and moral rights waiver pursuant to an employment agreement, in substantially the form provided to counsel for the Subscriber, and each present and former consultant to the Corporation has
executed a consulting agreement in substantially the forms provided to counsel for the Subscriber. Except as set forth on the Schedule of Exceptions, the Corporation is not aware that any of its present or former employees, officers or consultants
is in violation thereof, and the Corporation will use its commercially reasonable efforts to prevent any such violation. No present or former key 

  
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employee has excluded works or inventions from his or her assignment of inventions pursuant to such key employee’s proprietary information and inventions assignment agreement. Each present
and former key employee has executed a non-competition and non-solicitation agreement in substantially the form or forms provided to counsel for the Subscriber. 

(k) Intellectual Property. 
  

	 	(i)	Schedule 2(k) of the Schedule of Exceptions contains a complete and accurate list of all patents, trademarks, domain names and registered copyrights owned or used by the Corporation, and any pending applications for any
of the foregoing intellectual property rights filed by or on behalf of the Corporation. 

  

	 	(ii)	It has sufficient title and ownership of or licenses to all patents, trademarks, service marks, trade names, domain names, copyrights, trade secrets, information, proprietary rights, processes and other intellectual
property rights (collectively, the “Intellectual Property”) that are, to the Corporation’s knowledge, necessary for its business as now conducted and as proposed to be conducted. 

 

	 	(iii)	Except as set forth on Schedule 2(k) of the Schedule of Exceptions, there are no outstanding options, licenses, agreements, claims, encumbrances or shared ownership of interests of any kind (other than customary non-disclosure agreements with third parties, nondisclosure, assignment of inventions, and non-competition agreements with the Corporation’s employees and consultants)
relating to anything referred to above in this Section 2(k) that are to any extent owned by, or exclusively licensed to, the Corporation. 

  

	 	(iv)	The Corporation is not bound by or a party to any options, licenses or agreements of any kind with respect to the Intellectual Property of any other person or entity (except as listed on Schedule 2(k) and except
for nonexclusive rights granted solely for conduct of contract manufacturing and research services, standard end-user, object code, internal-use software license
support/maintenance agreements, customary non-disclosure agreements with third parties, nondisclosure, assignment of inventions, and noncompetition agreements with the Corporation’s employees and
consultants). 

  

	 	(v)	Except as set forth in Schedule 2(k) of the Schedule of Exceptions, the Corporation has not received any written communications alleging that the Corporation has violated, infringed, diluted or misappropriated
or, by conducting its business as proposed, would violate, infringe, dilute or misappropriate any of the Intellectual Property of any other person or entity, and to the knowledge of the Corporation, there is no basis for such an allegation.

  

	 	(vi)	To the Corporation’s knowledge, the Intellectual Property owned by or licensed to the Corporation have not been violated, infringed, diluted or misappropriated by any other person or entity. 

 

	 	(vii)	The Corporation is not aware that any of its employees is obligated under any contract (including licenses, covenants or commitments of any nature) or other agreement, or subject to any judgment, decree or order of any
court or administrative agency, that would interfere with the use of his or her best efforts to promote the interests of the Corporation or that would conflict with the Corporation’s business as presently conducted or as proposed to be
conducted. 

  

	 	(viii)	 Neither the execution nor delivery of this Agreement or the Related Agreements, nor the carrying on of the
business of the Corporation by its employees, nor the conduct of the Corporation’s business as proposed, will, to the Corporation’s knowledge, conflict with or result in a material breach of the terms, conditions or provisions of, or
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material default under, any contract, covenant or instrument under which any of such employees is now obligated. 

 

	 	(ix)	To the knowledge of the Corporation, it is not and will not be necessary to utilize any Intellectual Property of any of its employees developed, invented or made prior to their employment by the Corporation except any
such Intellectual Property that have previously been assigned or licensed to the Corporation, which Intellectual Property is set forth on Schedule 2(k) of the Schedule of Exceptions. 

 

	 	(x)	Except as set forth on Schedule 2(k) of the Schedule of Exceptions, the abandonment, loss or expiration of any Intellectual Property owned or used by the Corporation has not had and would not reasonably be expected to
have a material adverse effect on the Corporation, and to the Corporation’s knowledge no abandonment, loss or expiration of any Intellectual Property that would be expected to have a material adverse effect is pending. 

 

	 	(xi)	The Corporation has taken commercially reasonable steps to maintain and protect the Intellectual Property which it owns and uses, including by disclosing trade secrets and confidential information only on a need to know
basis to those of its employees and consultants, strategic and collaborative partners, and lenders, in each case, who have executed valid and enforceable non-disclosure agreements. 

 

	 	(xii)	The transactions contemplated by this Agreement and the Related Agreements will not have a material adverse effect on the Corporation’s right, title or interest in and to the Intellectual Property owned or
purported to be owned by it or licensed to it, and all of such material Intellectual Property will be owned or available for use by the Corporation and on identical terms and conditions immediately after the Closing. 

 

	 	(xiii)	Except as set forth on Schedule 2(k) of the Schedule of Exceptions, the Corporation is not subject to any “open source” or “copyleft” obligations or otherwise required to make any public disclosure
or general availability of source code either used or developed by the Corporation. 

 (l) Compliance with Other
Instruments. The Corporation is not in violation or default of any provision of its Articles or bylaws of the Corporation, (as amended to date, the “Bylaws”), or in any material respect of any instrument, judgment, order,
writ, decree or contract to which it is a party or by which it is bound, or, to the Corporation’s knowledge, of any provision of any U.S., Canadian, state, provincial or local statute, rule or regulation applicable to the Corporation. The
execution, delivery and performance of this Agreement and the Related Agreements, and the consummation of the transactions contemplated hereby and thereby, will not result in any such violation or default or be in conflict with or constitute, with
or without the passage of time and giving of notice, either a default under any such provision, instrument, judgment, order, writ, decree or contract or an event that results in the creation of any lien, charge or encumbrance upon any assets of the
Corporation, or the suspension, revocation, impairment, forfeiture, or nonrenewal of any material permit, license, authorization or approval applicable to the Corporation, its business or operations or any of its assets or properties, unless such
violation, default or conflict would not have a material adverse effect on the Corporation. 
 (m) Agreements; Action. 

 

	 	(i)	Except for agreements explicitly contemplated hereby, by the Related Agreements and agreements entered into the ordinary course of business, there are no agreements, understandings or proposed transactions between the
Corporation and any of its officers, directors, consultants, key employees or affiliates or any affiliate thereof. 

  

	 	(ii)	 Except this Agreement and the Related Agreements and as set out on the Schedule of Exceptions, there are no
agreements, understandings, instruments, contracts, proposed 

  
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transactions, judgments, orders, writs or decrees to which the Corporation is a party or by which it is bound that may involve (A) obligations (contingent or otherwise) of, or payments to
the Corporation in excess of, $1,000,000, (B) any license of any patent, copyright, trademark, trade secret or other proprietary right to or from the Corporation (other than (1) the license of the Corporation’s software and products
in object code form in the ordinary course of business pursuant to standard end-user agreements, the form of which has been provided to special counsel for the Subscriber or (2) the license to the
Corporation of standard, generally commercially available, “off-the-shelf” third-party products that are not and will
not to any extent be part of, or influence development of, or require payment with respect to, any product, service or intellectual property offering of the Corporation), (C) provisions materially restricting or affecting the development,
manufacture or distribution of the Corporation’s products or services, or (D) indemnification by the Corporation with respect to infringements of proprietary rights. 

 

	 	(iii)	Except as set out on the Schedule of Exceptions, the Corporation has not (A) declared or paid any dividends or authorized or made any distribution upon or with respect to any class or series of its capital stock,
(B) incurred any indebtedness for money borrowed in excess of $1,000,000, (C) made any loans or advances to any person, other than ordinary advances for travel or other business expenses, or (D) sold, exchanged or otherwise disposed of any
of its assets or rights, other than in the ordinary course of business. 

  

	 	(iv)	For the purposes of subsections (ii) and (iii) above, all indebtedness, liabilities, agreements, understandings, instruments, contracts and proposed transactions involving the same person or entity
(including persons or entities the Corporation has reason to believe are affiliated therewith) will be aggregated for the purpose of meeting the individual minimum dollar amounts of such subsections. 

 

	 	(v)	Except as disclosed in the Schedule of Exceptions, the Corporation has not engaged in the past three (3) months in any discussion (A) with any representative of any corporation or corporations regarding the
consolidation, merger or other business combination transaction of the Corporation with or into any such corporation or corporations, (B) with any corporation, partnership, association or other business entity or any individual regarding the
sale, conveyance or disposition of all or substantially all of the assets of the Corporation or a transaction or series of related transactions in which more than fifty percent (50%) of the voting power of the Corporation is disposed of, or
(C) regarding any other form of acquisition, liquidation, dissolution or winding up of the Corporation. 

 (n)
Related-Party Transactions. Except as set forth on the Schedule of Exceptions, no employee, officer or director of the Corporation (a “Related Party”) or member of such Related Party’s immediate family, or any
corporation, partnership or other entity in which such Related Party is an officer, director or partner, or in which such Related Party has significant ownership interests or otherwise controls (collectively, the “Additional Related
Parties”), is indebted to the Corporation, nor is the Corporation indebted (or committed to make loans or extend or guarantee credit) to any of them, other than (i) for payment of salary for services rendered,
(ii) reimbursement for reasonable expenses incurred on behalf of the Corporation, and (iii) for other standard employee benefits made generally available to all employees (including stock option agreements outstanding under any stock
option plan approved by the Board of Directors of the Corporation (the “Board of Directors”), including the Option Plan). To the Corporation’s knowledge, no Related Party or Additional Related Party has any direct or
indirect ownership interest in any firm or corporation with which the Corporation is affiliated or with which the Corporation has a business relationship, or any firm or corporation that competes with the Corporation, except that employees, officers
or directors of the Corporation and members of such Related Party’s immediate family may own stock in publicly traded companies that may compete with the Corporation. To the Corporation’s knowledge, no Related Party or Additional Related
Party is directly or indirectly interested in any material contract with the Corporation (other than such contracts as relate to any such person’s ownership of capital stock or other securities of the Corporation or employment by the
Corporation). 

  
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 (o) Permits. The Corporation has all franchises, permits, licenses, and any similar
authority necessary for the conduct of its business as now being conducted by it, the lack of which could materially and adversely affect the business, properties, or financial condition of the Corporation, as the case may be, and the Corporation
believes it can obtain, without undue burden or expense, any similar authority for the conduct of its business as planned to be conducted. The Corporation is not in default in any material respect under any of such franchises, permits, licenses, or
other similar authority. 
 (p) Corporate Documents. Except for amendments necessary to satisfy the representations, warranties or
conditions contained in this Agreement or the Related Agreements (the form of which amendments has been approved by the Subscriber), the Articles and Bylaws of the Corporation are in the form previously provided to the Subscriber. 

(q) Title to Property and Assets. Except (i) for liens for current taxes not yet delinquent, (ii) for liens imposed by law
and incurred in the ordinary course of business for obligations not past due to carriers, warehousemen, laborers, materialmen and the like, (iii) for liens in respect of pledges or deposits under workers’ compensation laws or similar
legislation or (iv) for minor defects in title, none of which, individually or in the aggregate, materially interferes with the use of such property, the Corporation has good and marketable title to its property and assets free and clear of all
mortgages, liens, claims, and encumbrances. With respect to the property and assets it leases, the Corporation is in material compliance with such leases and, to the best of its knowledge, holds a valid leasehold interest free of any liens, claims,
or encumbrances, subject to clauses (i)-(ii) above. 
 (r) Financial Information. The Corporation has delivered to the Subscriber its
audited consolidated financial statements (balance sheet, income statement and cash flow statement, including notes thereto) as of December 31, 2012 and for the fiscal year then ended, its audited consolidated financial statements (balance
sheet, income statement and cash flow statement, including notes thereto) as of December 31, 2013 and for the fiscal year then ended, and its unaudited consolidated financial statements (balance sheet, income statement and cash flow statement)
as of September 30, 2014 and for the 9 - month period then ended (collectively, the “Financial Statements”). The Financial Statements have been prepared in accordance with International Financial Reporting Standards on a
going concern basis, comprised of the standards and interpretations so described and pronounced by the International Accounting Standards Board as amended from time to time, as adopted by the Canadian Institute of Chartered Accountants
(“IFRS”) applied on a consistent basis throughout the periods indicated, except that the unaudited financial statements do not contain all footnotes required by IFRS. The Financial Statements fairly present the financial
condition and operating results of the Corporation on a consolidated basis as of the dates and for the periods indicated therein, subject, in the case of the unaudited financial statements, to normal year-end
audit adjustments. Except as set forth in the Financial Statements, the Corporation has no material liabilities or obligations, contingent or otherwise, other than (i) liabilities incurred in the ordinary course of business subsequent to
September 30, 2014 (the “Financial Statement Date”), (ii) obligations under contracts and commitments incurred in the ordinary course of business, and (iii) liabilities and obligations of a type or nature not
required under IFRS to be reflected in the Financial Statements, which, in all such cases, individually or in the aggregate, are not material to the financial condition or operating results of the Corporation. Except as disclosed in the Financial
Statements, the Corporation is not a guarantor or indemnitor of any indebtedness of any other person or entity. The Corporation maintains and will continue to maintain a standard system of accounting established and administered in accordance with
IFRS. 
 (s) Changes. Since the Financial Statement Date, except as set forth on the Schedule of Exceptions, there has not been: 

 

	 	(i)	any material change in the assets, liabilities, financial condition or operating results of the Corporation from that reflected in the Financial Statements, except changes in the ordinary course of business that have
not been, in the aggregate, materially adverse; 

  

	 	(ii)	any damage, destruction or loss, whether or not covered by insurance, materially and adversely affecting the assets, properties, financial condition, operating results, or business of the Corporation (as such business
is presently conducted and as it is proposed to be conducted); 

  
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	 	(iii)	any waiver by the Corporation of a valuable right or of a material debt owed to it; 

  

	 	(iv)	any satisfaction or discharge of any lien, claim or encumbrance or payment of any obligation by the Corporation, except in the ordinary course of business and that is not material to the assets, properties, financial
condition, operating results or business of the Corporation (as such business is presently conducted and as it is proposed to be conducted); 

  

	 	(v)	any material change or amendment to a material contract or arrangement by which the Corporation or any of its assets or properties is bound or subject; 

 

	 	(vi)	any material change in any compensation arrangement or agreement with any employee, officer, director or shareholder; 

  

	 	(vii)	any sale, assignment or transfer of any patents, trademarks, copyrights, trade secrets or other intangible assets; 

  

	 	(viii)	any resignation or termination of employment of any officer or key employee of the Corporation; and the Corporation is not aware of the impending resignation or termination of employment of any such officer or key
employee; 

  

	 	(ix)	a loss of, or material order cancellation by, any major customer or collaborator of the Corporation nor any notice thereof; 

  

	 	(x)	any mortgage, pledge, transfer of a security interest in, or lien created by the Corporation, with respect to any of its material properties or assets, except liens for taxes not yet due or payable and liens that arise
in the ordinary course of business and do not materially impair the Corporation’s ownership or use of such property or assets; 

  

	 	(xi)	any loans or guarantees made by the Corporation to or for the benefit of its employees, officers or directors, or any members of their immediate families, other than travel advances and other advances made in the
ordinary course of business; 

  

	 	(xii)	any declaration, set aside, payment or other distribution in respect of any of the Corporation’s capital stock, or any direct or indirect redemption, purchase or other acquisition of any of such stock by the
Corporation; 

  

	 	(xiii)	to the Corporation’s knowledge, any other event or condition of any character, other than events affecting the economy or the Corporation’s industry generally, that might materially and adversely affect the
assets, properties, financial condition, operating results, or business of the Corporation (as such business is presently conducted and as it is proposed to be conducted); or 

 

	 	(xiv)	any agreement or commitment by the Corporation to do any of the things described in this Section 2(s). 

(t) Employee Benefit Plan. The Corporation is not a member of any employer, management, industry or other trade, labour
relations or business association under which the Corporation is obligated to contribute to any employee or contractor employee benefit or industry enhancement fund, including any pension plan, health benefit plan or other similar employee
entitlement plan, and Corporation does not have any outstanding liability under any Benefit Plan (as defined below) except as disclosed on the Schedule of Exceptions, nor has the Corporation made or authorized any payment to or for the benefit of
any officer or employee on account of salary, pay, fringe benefits, commissions or other compensation, pension, bonus, share of profits or any Benefit Plan, except in the ordinary course of business and at rates consistent with previous years.
Except as disclosed on the Schedule of Exceptions: 

  
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	 	(i)	all Benefit Plans of the Corporation are funded in accordance with applicable laws and no past service funding liability exists thereunder; 

 

	 	(ii)	no assets (including any surplus) of the Corporation have ever been paid out of a Benefit Plan except to a participant (or beneficiary of the participant) in such Benefit Plan in accordance with its terms and applicable
laws; 

  

	 	(iii)	all reports, returns and similar documents (including applications for registration and approval of contributions) with respect to any Benefit Plan required to be filed with any governmental agency or distributed to any
Benefit Plan participant have been duly filed on a timely basis or distributed; 

  

	 	(iv)	to the knowledge of the Corporation, there are no pending investigations by any governmental or regulatory agency or authority involving or relating to any Benefit Plan, no pending or threatened claims (except for
claims for benefits payable in the normal operation of the Benefit Plans), suits or proceedings relating to any Benefit Plan or asserting any rights or claims to benefits under any Benefit Plan which could give rise to a liability nor are there any
facts that could give rise to any liability in the event of any such investigation, claim, suit or proceeding; 

  

	 	(v)	no notice in writing has been received by the Corporation of any complaints or other proceedings of any kind involving the Corporation or, to the knowledge of the Corporation, any of the employees of the Corporation
before any pension board or committee relating to any Benefit Plan or to the Corporation; and 

  

	 	(vi)	the consummation of the transactions contemplated by this Agreement will not constitute an event under any Benefit Plan or individual agreement with a present or former employee of the Corporation that will or may
result in any severance or other payment or in the acceleration, vesting or increase in benefits with respect to any present or former employee of the Corporation; 

“Benefit Plan” means any pension, retirement, deferred compensation, profit-sharing,
tax-deferred savings plans (including registered retirement savings plans, registered educational savings plans, and tax free saving account plans), savings, disability, medical, dental, health, life, death
benefit, stock option, stock purchase, bonus, incentive, vacation entitlement and pay, termination and severance pay or other employee benefit plan, trust, arrangement, contract, agreement, policy or commitment, whether or not any of the foregoing
is funded or insured, and whether written or oral, formal or informal, which is intended to provide or does in fact provide benefits to any or all employees or former employees of the Corporation, and to which the Corporation is a party or by which
the Corporation is bound or with respect to which the Corporation has any liability or potential liability, and for greater certainty includes plans or programs in which the Corporation is obligated to participate by statute. 

(u) Tax Returns, Payments and Elections. 

(i) To the knowledge of the Corporation, with the exception of disclosures on Schedule 2(u) of the Schedule of Exceptions, the Corporation has
prepared and filed all Tax Returns required to be filed by it with the appropriate Governmental Authority, within the prescribed period, in accordance with the Income Tax Act (Canada) and all other applicable laws (“Applicable Tax
Laws”). Each such Tax Return is true, correct and complete in all material respects and such Tax Returns disclose all information required to be disclosed in accordance with Applicable Tax Laws. Corporation is not, and has never been, a
member of a group of corporations with which it has filed, or been required to file, consolidated, combined, unitary or similar Tax Returns; 

  
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 (ii) The Corporation has paid all Taxes and instalments of Taxes required to be paid to any
Governmental Authority before the Closing Date, within the prescribed period, pursuant to Applicable Tax Laws. No material deficiency with respect to the payment of any Taxes or instalments of Taxes has been asserted against Corporation by any
Governmental Authority. Adequate provision has been made, or will be made prior to Closing, in the financial statements of the Corporation, for all Taxes payable by it for all taxable periods ending, or deemed to end, on or immediately prior to the
Closing Date, and, where no taxable period ends or is deemed to end on or immediately prior to the Closing Date, for all Taxes in respect of any time prior to the Closing Date; 

(iii) Except as set forth on Schedule 2(u) of the Schedule of Exceptions, the Corporation has duly withheld and collected all Taxes required by
Applicable Tax Laws to be withheld or collected by it and has duly remitted to the appropriate Governmental Authority all such Taxes, as and when required by Applicable Tax Laws. The amount of any Taxes withheld or collected but not remitted by the
Corporation has been retained in its accounts and will be remitted by it to the appropriate Governmental Authority when due; 
 (iv) Except
as set forth on Schedule 2(u) of the Schedule of Exceptions, there are no material Tax-related enforcement actions, suits, proceedings, investigations or claims now, or to the knowledge of the Corporation,
threatened, pending against the Corporation which, if proven, could result in a material liability to the Corporation regarding the payment of Taxes nor are any such aforementioned matters under discussion with any Governmental Authority relating to
assessments or reassessments asserted by any such Governmental Authority, and all Tax Returns of the Corporation for the taxation periods ending on or before December 31, 2013 have been assessed by the relevant Governmental Authority; 

(v) The Corporation has not requested, entered into or executed any agreement or other arrangements, or any waiver, providing for any extension
of time within which: 
 (A) to file any Tax Return, or any election, designations or similar filing relating to Taxes; 

(B) it is required to pay or remit any Taxes or amounts on account of Taxes; or 

(C) any Governmental Authority may assess or collect Taxes; 

(vi) The Corporation has not entered into any agreement with, or provided any undertaking to, any person pursuant to which it has assumed
liability for the payment of Taxes owing by such person. 
 “Tax” or “Taxes” means, collectively: 

(a) any taxes, tariffs, duties, fees, premiums, assessments, imposts, levies and other charges of any kind whatsoever imposed by any
Governmental Authority, including all interest, penalties, fines, additions to tax or other additional amounts imposed by any Governmental Authority in respect thereof, and including those levied on, measured by, or referred to as, income, gross
receipts, profits, capital, transfer, land transfer, sales, goods and services, harmonized sales, use, value-added, excise, stamp, withholding, business, franchising, property, development, occupancy, employer health, payroll, employment, health,
social services, education and social security taxes, all surtaxes, all customs duties and import and export taxes, all licence and registration fees and all employment insurance, health insurance and other government pension plan premiums or
contributions; and 
 (b) any liability for the payment of any amounts of the type described in (a) as a result of any express or
implied obligation to indemnify any other Person or as a result of any obligations under 

  
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any agreement or arrangements with any other Person with respect to such amounts, including any liability for Taxes of a predecessor entity. 

“Tax Return” means any return, report, election, notice, designation, declaration, information return, or other document filed
with or submitted to, or required to be filed with or submitted to, any Governmental Authority in connection with any Tax, including any schedules or amendments thereto. 

“Governmental Authority” means the Government of Canada or the Government of British Columbia or any other provincial, local
or other political subdivision thereof, or any foreign or other jurisdiction in which the Corporation conducts all or any part of its business, or which asserts jurisdiction over any properties of the Corporation, or any entity exercising executive,
legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government. 
 (v) Insurance. The
Corporation has in full force and effect fire and casualty insurance policies, with extended coverage, sufficient in amount (subject to reasonable deductibles) to allow it to replace any of its material properties that might be damaged or destroyed.
The Corporation has in full force and effect products liability, errors and omissions, general commercial liability, and directors’ and officers’ liability insurance in amounts customary for companies similarly situated. 

(w) Brokers or Finders. The Corporation has not engaged, consented to or authorized any broker, finder or intermediary to act on its
behalf, directly or indirectly, as a broker, finder or intermediary in connection with the transactions contemplated by the Agreement and the Corporation hereby agrees to indemnify and hold harmless the Subscriber from and against all fees,
commissions or other payments owing to any such person or firm acting on behalf of the Corporation hereunder. 
 (x) Minute Books.
The minute books of the Corporation provided to the Subscriber contain complete minutes of all meetings of directors and shareholders and all actions by written consent without a meeting by the directors and shareholders since January 1, 2012,
and reflect all transactions referred to in such minutes accurately in all material respects. 
 (y) Labor Agreements and Actions;
Employee Compensation. The Corporation is not bound by or subject to (and none of its assets or properties is bound by or subject to) any written or oral, express or implied, contract, commitment or arrangement with any labor union, and no labor
union has requested or, to the Corporation’s knowledge, has sought to represent any of the employees, representatives or agents of the Corporation. There is no strike or other labor dispute involving the Corporation pending, or to the
Corporation’s knowledge, threatened, that could have a material adverse effect on the assets, properties, financial condition, operating results, or business of the Corporation (as such business is presently conducted and as it is proposed to
be conducted), nor is the Corporation aware of any labor organization activity involving its employees. The Corporation is not aware that any officers or key employees, or that any group of key employees, intend to terminate their employment with
the Corporation, nor does the Corporation have a present intention to terminate the employment of any of the foregoing. The employment of each officer and employee of the Corporation is terminable at the will of the Corporation. The Corporation has
complied in all material respects with all applicable Canadian, provincial, state or local equal employment opportunity laws and other laws related to employment. Except as set forth on the Schedule of Exceptions, the Corporation is not a party to
or bound by any currently effective employment contract, deferred compensation agreement, bonus plan, incentive plan, profit sharing plan, retirement agreement or other employee compensation agreement. 

(z) Environmental and Safety Laws. Except as could not reasonably be expected to have a material adverse effect, to the knowledge of
the Corporation (i) the Corporation is and has been in compliance with all Environmental Laws (as defined below), (ii) there has been no release or threatened release of any pollutant, contaminant or toxic or hazardous material, substance
or waste or petroleum or any fraction thereof (each a “Hazardous Substance”), on, upon, into or from any site currently or heretofore owned, leased or otherwise used by the Corporation, and (iii) there are no underground
storage tanks located on, no polychlorinated biphenyls (“PCBs”) or PCB-containing equipment used or stored on, and no Hazardous Substance, stored on, any site owned or operated

  
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by the Corporation, except for the storage of hazardous waste in compliance with Environmental Laws. The Corporation has made available to the Subscriber true and complete copies of all material
environmental records, reports, notifications, certificates of need, permits, pending permit applications, correspondence, engineering studies and environmental studies or assessments. For purposes of this Section 2(z),
“Environmental Laws” means any law, regulation, or other applicable requirement relating to (iv) releases or threatened releases of Hazardous Substance, (v) pollution or protection of employee health or safety,
public health or the environment, or (vi) the manufacture, handling, transport, use, treatment, storage, or disposal of Hazardous Substances. 

(aa) Bad Actor Provisions. Neither the Corporation or any of its predecessors, nor, to the Corporation’s knowledge, any affiliated
issuer, any director, executive officer, other officer of the Corporation, any beneficial owner of 20% or more of the Corporation’s outstanding voting equity securities, calculated on the basis of voting power or any promoter (as that term is
defined in Rule 405 under the Act) connected with the Corporation in any capacity at the time of sale (each, an “Issuer Covered Person” and, together, “Issuer Covered Persons”) is subject to a
Disqualification Event. The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event. 

(bb) Indemnification for Breach of Representations and Warranties. The Corporation hereby agrees to hold the Subscriber and its
directors, officers, employees, affiliates, controlling persons and agents and their respective officers, directors, employees, counsel, controlling persons and agents, and their respective heirs, representatives, successors and assigns harmless and
to indemnify them against all liabilities, costs and expenses incurred by them as a result of any false representation or warranty or any breach or failure by the Corporation to comply with any covenant made by the Corporation in this Agreement
(including the Schedule of Exceptions attached hereto). 
 (cc) Full Disclosure. The Corporation has fully provided the Subscriber
with all the information reasonably available to it that the Subscriber has requested for deciding whether to purchase the Shares. To the knowledge of the Corporation, no representation or warranty made by the Corporation in this Agreement, the
exhibits and schedules hereto or any financial statement or certificate prepared and furnished or to be prepared and furnished by the Corporation or its representatives pursuant hereto contains any untrue statement of a material fact or omits to
state a material fact necessary in order to make the statements contained herein or therein not misleading in light of the circumstances under which they were furnished. To the knowledge of the Corporation, there is no event, fact or condition
specifically relating to the Corporation or the business in which it is engaged that has had, or that reasonably could be expected to have, a material adverse effect on the Corporation that has not been set forth in this Agreement or on the Schedule
of Exceptions. 
 Closing 
 3. The purchase and sale of
the Shares (the “Closing”) will take place remotely via the exchange of documents, signatures and consideration on the date hereof, or such other date as is otherwise agreed to by the Corporation and the Subscriber (the
“Closing Date”). 
 (a) Subject to Section 4 hereof, at the Closing, the Subscriber will
deliver to the Corporation: (i) a duly completed and originally executed copy of this Agreement, including all applicable Schedules attached hereto; (ii) a duly completed and originally executed copy of the Related Agreements; and
(iii) a wire transfer in accordance with the Corporation’s instructions, in an amount equal to the Subscription Price. 
 (b)
Subject to Section 5 hereof, at the Closing, the Corporation will deliver to the Subscriber: (i) a duly completed and originally executed copy of this Agreement, including the Schedule of Exceptions; (ii) a duly
completed and originally executed copy of the Related Agreements; (iii) the certificates and opinion set forth in Sections 4 below; and (iv) in accordance with the Subscriber’s delivery instructions, a definitive certificate
registered in the name of the Subscriber (or in the other name or names as requested by the Subscriber), representing the Shares. 
 4. Conditions to the
Subscriber’s Obligations to Close. The Subscriber’s obligation to purchase the Shares at the Closing is subject to the fulfillment on or before the Closing of each of the following conditions, unless waived by the
Subscriber: 

  
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 (a) Representations and Warranties. Except as set forth or modified by the Schedule of
Exceptions, the representations and warranties made by the Corporation in Section 2 will be true and correct in all material respects as of the Closing. 

(b) Covenants. The Corporation will have performed or complied in all material respects with all covenants, agreements and conditions
contained in this Agreement to be performed or complied with by the Corporation on or prior to the Closing. 
 (c) Blue Sky/B.C.
Securities Laws. The Corporation will have obtained all necessary U.S. state securities and “blue sky” law and B.C. Securities Laws permits and qualifications, or have the availability of exemptions therefrom, required by any state or
province for the offer and sale of the Shares. 
 (d) License and Collaboration Agreement. The Corporation will have executed and
delivered to the Subscriber the License and Collaboration Agreement, dated as of the date hereof. 
 (e) Rights Agreement. The
Corporation will have executed and delivered to the Subscriber the Rights Agreement, dated as of the date hereof. 
 (f) Compliance
Certificate. The Corporation will have delivered a certificate duly executed by the Chief Executive Officer of the Corporation stating that the conditions in Sections 3(a) and 3(b) have been satisfied. 

(g) Secretary’s Certificate. The Subscriber will have received from the Corporation’s Secretary a certificate having attached
thereto (i) the Corporation’s Articles, as in effect at the time of the Closing; (ii) the Corporation’s Bylaws as in effect at the time of the Closing; and (iii) resolutions approved by the Board of Directors authorizing the
transactions contemplated by this Agreement and the Related Agreements. 
 (h) Good Standing. The Corporation will have delivered to
the Subscriber a certificate status of the Corporation issued by Corporations Canada, dated as of a recent date, with respect to the status and good standing of the Corporation. 

(i) Board Approval. The Corporation will have received all requisite approvals from its directors. 

(j) Legal Opinion. The Subscriber will have received from legal counsel for the Corporation, an opinion, dated as of the Closing Date,
in substantially the form of Exhibit B attached to this Agreement. 
 (k) Completion of Due Diligence. The Subscriber will
have completed, to the Subscriber’s satisfaction, a due diligence investigation of the Corporation, including with respect to the business, legal matters and intellectual property of the Corporation. 

5. Conditions to the Corporation’s Obligations to Close. The Corporation’s obligation to sell and issue the Shares at the Closing is subject
to the fulfillment on or before the Closing of the following conditions, unless waived by the Corporation: 
 (a) Representations and
Warranties. The representations and warranties made by the Subscriber in Section 1 will be true and correct in all material respects as of the Closing. 

(b) Covenants. The Subscriber will have performed or complied in all material respects with all covenants, agreements and conditions
contained in this Agreement to be performed or complied with by the Subscriber on or prior to the Closing Date. 
 (c) Compliance with
Securities Laws. The Corporation will be satisfied that the offer and sale of the Shares will be qualified or exempt from registration or qualification under all applicable Canadian and U.S. federal, state and provincial securities laws. 

  
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 6. Further Assurances. Each party hereto will, promptly upon request by the other party, provide such
other party with any additional information and execute and deliver to such other party additional undertakings, questionnaires and other documents as such other party may reasonably request in connection with the issue and sale of the Shares. Each
party acknowledges and agrees that such undertakings, questionnaires and other documents, when duly executed and delivered, will form part of and will be incorporated into this Agreement with the same effect as if each constituted a representation
and warranty or covenant of the delivering party hereunder in favor of the requesting party. Each party consents to the filing of such undertakings, questionnaires and other documents as may be required to be filed with any stock exchange or
securities regulatory authority in connection with the transactions contemplated under this Agreement. 
 7. Disclosure of Personal Information. The
Subscriber acknowledges that this Agreement requires the Subscriber to provide certain personal information about the Subscriber to the Corporation. Such information is being collected by the Corporation for the purposes of completing the offering
of the Shares, which includes, without limitation, determining the eligibility of the Subscriber to purchase the Shares under applicable securities legislation, preparing and registering certificates representing the Shares to be issued to the
Subscriber and completing filings required by applicable securities regulatory authorities. Personal information regarding the Subscriber may be disclosed by the Corporation to: (a) stock exchanges or securities regulatory authorities
(including the British Columbia Securities Commission (the “BCSC”) and, if applicable, the Ontario Securities Commission (the “OSC”), as discussed below); (b) any government agency, board or other
entity; and (c) any of the other parties involved in the offering of the Shares, including the Corporation and its legal counsel, and may be included in record books in connection with the offering of the Shares. By executing this Agreement,
the Subscriber is deemed to be consenting to the foregoing collection, use and disclosure of such personal information. 
 8. Canadian Securities
Matters. The Subscriber acknowledges that it has been notified by the Corporation: (a) of the requirement to deliver to BCSC and, if applicable, to the OSC, the full name, residential address and telephone number of the purchaser of the
securities, the number and type of securities purchased, the total purchase price, the exemption relied upon and the date of distribution; (b) that this information is being collected indirectly by the BCSC and, if applicable, the OSC, under
the authority granted to it under applicable securities legislation; (c) that this information is being collected for the purposes of the administration and enforcement of the securities legislation of British Columbia and, if applicable,
Ontario; (d) that the BCSC can be contacted at British Columbia Securities Commission, P.O. Box 10142, Pacific Centre, 701 West Georgia Street, Vancouver, British Columbia, V7Y 1L2, Telephone: (604)
899-6500, Toll free across Canada: 1-800-373-6393, Facsimile: (604) 899-658, and can answer any questions about the BCSC’s indirect collection of this information; and (e) that, if applicable, the OSC can be contacted through the Administrative Assistant to the Director of
Corporate Finance at Ontario Securities Commission, Suite 1903, Box 55, 20 Queen Street West, Toronto, Ontario, M5H 3S8, or at (416) 593¬3684, and can answer any questions about the OSC’s indirect collection of this information. 

9. Anti-Money Laundering Provisions. The Subscriber represents and warrants, to the knowledge of the Subscriber, that the Subscription Price, which
will be paid by the Subscriber to the Corporation hereunder (a) will not represent proceeds of crime for the purposes of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the “PCMLA”),
(b) was not and is not, directly or indirectly, derived from activities that may contravene federal or state regulations, including those administered by the U.S. Treasury Department’s Office of Foreign Asset Control
(“OFAC”), or (c) will not represent proceeds of crime under any other applicable similar legislation and acknowledges that the Corporation may in the future be required by law to disclose its name and other information
relating to this Agreement and the transaction contemplated hereby, on a confidential basis, pursuant to the PCMLA or other applicable legislation. To the knowledge of the Subscriber, none of the Subscription Price to be provided by the Subscriber
(i) has been or will be derived from or related to any activity that is deemed criminal under the law of Canada or the United States of America, or (ii) are being tendered on behalf of a person or entity who has not been identified to the
Subscriber. The Subscriber will promptly notify the Corporation if it discovers that any of such representations ceases to be true and provide the Corporation with appropriate information in connection therewith. The lists of OFAC prohibited
countries, territories, persons and entities can be found on the OFAC website at http://www.treas.gov/ofac. 
 10. Counterparts; Electronic
Delivery. This Agreement may be executed in any number of counterparts, each of which will be enforceable against the parties actually executing such counterparts, and all of which together will constitute one instrument. Counterparts may be
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electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.rightsignature.com) or other transmission method and any counterpart so delivered will be deemed to have
been duly and validly delivered and be valid and effective for all purposes. 
 General 

11. Defined Terms. Terms which are used in this Agreement and not otherwise defined and which are defined in B.C. Securities Laws or the Act will have
the meanings defined in the B.C. Securities Laws or the Act unless the context otherwise requires. 
 12. Gender; Number. This Agreement is to be
read with all changes in gender or number required by the context. 
 13. Headings. The headings in this Agreement are for convenience of reference
only and do not affect the interpretation of this Agreement. 
 14. References. A reference to an Article or a Section is to an Article or a Section
of this Agreement unless otherwise specified. In this Agreement, unless something in the subject matter or context is inconsistent therewith or unless otherwise herein provided, a reference to any statute is to that statute as now enacted or as the
same may from time to time be amended, re-enacted or replaced and includes any regulation made thereunder. 
 15.
Expenses. Each party acknowledges and agrees that all costs incurred by such party (including any fees and disbursements of any special counsel retained by such party) relating to the sale of the Shares to the Subscriber will be borne by such
party. 
 16. Governing Law; Venue. This Agreement shall be exclusively construed and governed by the laws in force in British Columbia and the laws
of Canada applicable thereto and the courts of British Columbia (and the Supreme Court of Canada, if necessary) shall have exclusive jurisdiction to hear and determine all disputes arising hereunder. Each of the parties hereto irrevocably attorns to
the jurisdiction of said courts and consents to the commencement of proceedings in such courts. 
 17. Time of the Essence. Time is of the essence of
this Agreement. 
 18. Successors and Assigns. No party may assign any of its rights or benefits under this Agreement, or delegate any of its duties
or obligations, except with the prior written consent of the other parties, which consent shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, the Subscriber may, at any time, assign this Agreement and its interests herein,
in whole, to any affiliate of the Subscriber. The Subscriber acknowledges that any such transfer is subject to the transferees agreeing to become subject to the terms and conditions of this Agreement and the Subscriber shall designate a single
representative to represent the transferees for the purposes of this Agreement. Such representative shall become a party to this Agreement and shall be entitled to the rights and privileges and subject to the obligations of the transferees pursuant
to this Agreement and shall exercise any rights and privileges and perform any obligations of the transferees for and on behalf of the transferees. The Corporation shall be entitled to rely on the representative on behalf of the transferees. 

19. Entire Agreement. This Agreement (including the Schedules, Exhibits and the Schedule of Exceptions attached hereto) and the Related Agreements
represent the entire agreement of the parties hereto relating to the subject matter hereof and there are no representations, covenants or other agreements relating to the subject matter hereof except as stated or referred to herein. 

20. Amendment. No amendment to this Agreement will be valid or binding unless set forth in writing and duly executed by the parties hereto. No waiver
of any breach of any provision of this Agreement will be effective or binding unless made in writing and signed by the party purporting to give the same and, unless otherwise provided, will be limited to the specific breach waived. 

  
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 21. Survival. The covenants, representations and warranties contained herein will survive the
execution and delivery of this Agreement and the Closing for [...***...] except (i) with respect to tax matters where the representations and warranties will continue to have full force and effect until the expiry of a period of
[...***...] after the date at which the statute of limitations expires for action by the applicable tax authorities, (ii) in case of fraud, in which case no time limit shall be applicable. 

22. Currency. All references to currency herein, other than in Schedule B, are to lawful money of Canada. 

23. Organizational Documents. The Subscriber acknowledges and agrees that the Shares are subject to the rights, privileges, restrictions, and
conditions outlined in the constating documents of the Corporation, including but not limited to, the requirement that shareholders of the Corporation under certain terms and conditions must sell all of the shares held by such shareholders under a
third party offer. 
 24. Severability. If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal,
unenforceable or void, portions of such provision, or such provision in its entirety, to the extent necessary, will be severed from this Agreement, and such court will replace such illegal, void or unenforceable provision of this Agreement with a
valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision. The balance of this Agreement will be enforceable in accordance with its
terms. 
 25. Delays or Omissions. Except as expressly provided herein, no delay or omission to exercise any right, power or remedy accruing to a
party to this Agreement upon any breach or default of the other party under this Agreement will impair any such right, power or remedy of such non-defaulting party, nor will it be construed to be a waiver of
any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring, nor will any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter
occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in
writing and will be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party to this Agreement, will be cumulative and not alternative. 

26. Notices. All notices and other communications given or made pursuant to this Agreement will be in writing and will be deemed effectively given:
(a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day, (c) five
(5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one business (1) day after deposit with a nationally recognized overnight courier, specifying next business day delivery,
with written verification of receipt. All communications will be sent to the respective parties at their address, or to such e-mail address, facsimile number or address as subsequently modified by written
notice given in accordance with this Section 26. If notice is given to the Corporation, a copy (which will not constitute notice) will also be sent to Blake, Cassels & Graydon LLP, 595 Burrard St., Suite 2600, Vancouver, BC, V7X 1L3,
Attn: [...***...]. If notice is given to the Subscriber, a copy (which will not constitute notice) will also be sent to Celgene Corporation as 86 Morris Avenue, Summit, New Jersey 07901, Attn: [...***...]. The Subscriber hereby confirms
the Shares will be registered in the name of Celgene Alpine Investment Co. LLC and for the purposes of post-closing filings with applicable securities commissions in Canada the Subscriber discloses the address of the Subscriber as 1 Route de
Perreux, 2017 Boudry, Switzerland, Attn: [...***...]. 
 [Signature Page Follows] 

  
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 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above. 
  

			
	CORPORATION:
	
	ZYMEWORKS INC.
		
	By:	 	  

	Name:	 	Ali Tehrani
	Title:	 	President and CEO
	
	SUBSCRIBER:
	
	CELGENE ALPINE INVESTMENT CO. LLC
		
	By:	 	  

	Name:	 	
	Title:	 	

  
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 SCHEDULE A 

ACCREDITED INVESTOR EXEMPTION CERTIFICATE 

To be completed and signed by all Subscribers relying on the 

Accredited Investor Exemption under NI 45–106 

The Subscriber represents and warrants to the Corporation that the Subscriber is an “accredited investor” as that term is defined in NI 45-106 by virtue of the fact that the Subscriber satisfies one or more of the categories indicated below. 
 PLEASE PLACE
AN “X” AGAINST THE APPROPRIATE CATEGORY OR CATEGORIES BELOW: 

  
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	(a)	 	a Canadian financial institution, or a Schedule III bank;
		
	(b)	 	the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada);
		
	(c)	 	a subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by
directors of that subsidiary;
		
	(d)	 	a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer, other than a person registered solely as a limited market dealer under one or both of the Securities
Act (Ontario) or the Securities Act (Newfoundland and Labrador);
		
	(e)	 	an individual registered or formerly registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d);
		
	(f)	 	the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly-owned entity of the Government of Canada or a jurisdiction of Canada;
		
	(g)	 	a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l’île de Montréal or an intermunicipal management
board in Québec;
		
	(h)	 	any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government;
		
	(i)	 	a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada), a pension commission or similar regulatory authority of a jurisdiction of Canada;
		
	(j)	 	an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds
$1,000,000;

  
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	(k)	 	an individual whose net income before taxes exceeded $200,000 in each of the 2 most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the 2 most recent
calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year;
		
	(l)	 	an individual who, either alone or with a spouse, has net assets of at least $5,000,000;
		
	(m)	 	a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements;
		
	(n)	 	an investment fund that distributes or has distributed its securities only to
			
		 	(i)	 	a person that is or was an accredited investor at the time of the distribution;
			
		 	(ii)	 	a person that acquires or acquired securities in the circumstances referred to in sections 2.10 [Minimum amount investment], or 2.19 [Additional investment in investment funds] of NI
45-106; or
			
		 	(iii)	 	a person described in paragraph (i) or (ii) that acquires or acquired securities under section 2.18 [Investment fund reinvestment] of NI 45-106;
		
	(o)	 	an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a
receipt;
		
	(p)	 	a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a
foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be;
		
	(q)	 	a person acting on behalf of a fully managed account managed by that person, if that person

  
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		 	(i)	 	is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction; and
			
		 	(ii)	 	in Ontario, is purchasing a security that is not a security of an investment fund;
		
	(r)	 	a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of
the jurisdiction of the registered charity to give advice on the securities being traded;
		
	(s)	 	an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function;
		
	(t)	 	a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited
investors;
		
	(u)	 	an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser; or
		
	(v)	 	a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the regulator as an accredited investor.

  
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 CONFIDENTIAL 
  

			
	Date:	 	  

	
	CELGENE ALPINE INVESTMENT CO. LLC
		
	By:	 	  

	Name:	 	
	Title:	 	

  
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 75 

 CONFIDENTIAL 
  

 For the purposes of this Schedule A, the following definitions are included for convenience: 

“bank” means a bank named in Schedule I or II of the Bank Act (Canada); 

“Canadian financial institution” means 
  

	 	(a)	an association governed by the Cooperative Credit Associations Act (Canada) or a central cooperative credit society for which an order has been made under section 473(1) of that Act; or 

 

	 	(b)	a bank, loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union, caisse populaire, financial services cooperative, or league that, in each case, is authorized by an enactment
of Canada or a jurisdiction of Canada to carry on business in Canada or a jurisdiction of Canada; 

“director” means (a) a member of the board of directors of a company or an individual who performs similar functions for
a company, and (b) with respect to a person that is not a company, an individual who performs functions similar to those of a director of a company; 

“eligibility adviser” means 
  

	 	(a)	a person that is registered as an investment dealer and authorized to give advice with respect to the type of security being distributed; 

 

	 	(b)	in Saskatchewan or Manitoba, also means a lawyer who is a practicing member in good standing with a law society of a jurisdiction of Canada or a public accountant who is a member in good standing of an institute or
association of chartered accountants, certified general accountants or certified management accountants in a jurisdiction of Canada provided that the lawyer or public accountant must not; 

 

	 	(c)	have a professional, business or personal relationship with the issuer, or any of its directors, executive officers, founders, or control persons; and 

 

	 	(d)	have acted for or been retained personally or otherwise as an employee, executive officer, director, associate or partner of a person that has acted for or been retained by the issuer or any of its directors, executive
officers, founders or control persons within the previous 12 months; 

 “financial assets” means 

 

	 	(a)	cash; 

  

	 	(b)	securities; or 

  

	 	(c)	a contract of insurance, a deposit or an evidence of a deposit that is not a security for the purposes of securities legislation; 

“foreign jurisdiction” means a country other than Canada or a political subdivision of a country other than Canada; 

“fully managed account” means an account of a client for which a person makes the investment decisions if that person has full
discretion to trade in securities for the account without requiring the client’s express consent to a transaction; 

  
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 CONFIDENTIAL 
  

 “investment fund” has the same meanings as in National Instrument 81-106 – Investment Fund Continuous Disclosure; 
 “jurisdiction” means a province or
territory of Canada except when used in the term “foreign jurisdiction”; 
 “person” includes (a) an
individual, (b) a corporation, (c) a partnership, trust, fund and an association, syndicate, organization or other organized group of persons, whether incorporated or not, and (d) an individual or other person in that person’s
capacity as a trustee, executor, administrator or personal or other legal representative; 
 “regulator” means 

 

	 	(a)	the Executive Director, as defined under section 1 of the Securities Act (British Columbia); and 

  

	 	(b)	such other person as is referred to in Appendix D of National Instrument 14-101 – Definitions; 

“related liabilities” means 
  

	 	(a)	liabilities incurred or assumed for the purpose of financing the acquisition or ownership of financial assets; or 

  

	 	(b)	liabilities that are secured by financial assets; 

 “Schedule III bank” means
an authorized foreign bank named in Schedule III of the Bank Act (Canada); 
 “securities legislation” means

  

	 	(a)	for British Columbia, the Securities Act (British Columbia) and the regulations, rules and forms under such Act and the blanket rulings and orders issued by the British Columbia Securities Commission; and

  

	 	(b)	for other Canadian jurisdictions, such other statutes and instruments as are listed in Appendix B of National Instrument 14-101 – Definitions; 

“securities regulatory authority” means 
  

	 	(a)	the British Columbia Securities Commission; and 

  

	 	(b)	in respect of any local jurisdiction other than British Columbia, means the securities commission or similar regulatory authority listed in Appendix C of National Instrument
14-101 – Definitions; 

 “spouse” means, an individual who, 

 

	 	(a)	is married to another individual and is not living separate and apart within the meaning of the Divorce Act (Canada), from the other individual; or 

 

	 	(b)	is living with another individual in a marriage-like relationship, including a marriage-like relationship between individuals of the same gender; or 

 

	 	(c)	in Alberta, is an individual referred to in paragraph (a) or (b), or is an adult interdependent partner within the meaning of the Adult Interdependent Relationships Act (Alberta); 

“subsidiary” means an issuer that is controlled directly or indirectly by another issuer and includes a subsidiary of that
subsidiary; 

  
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 CONFIDENTIAL 
  

 “voting security” means a security of an issuer that: 

 

	 	(a)	is not a debt security; and 

  

	 	(b)	carries a voting right either under all circumstances or under some circumstances that have occurred and are continuing; 

An issuer is considered to be affiliated with another issuer if: 
  

	 	(a)	one of them is the subsidiary of the other; or 

  

	 	(b)	each of them is controlled by the same person; 

 A person is considered to beneficially own
securities that are beneficially owned by: 
  

	 	(a)	an issuer controlled by that person; or 

  

	 	(b)	an affiliate of that person or an affiliate of an issuer controlled by that person; 

 A person
(first person) is considered to control another person (second person) if: 
  

	 	(a)	the first person, directly or indirectly, beneficially owns or exercises control or direction over securities of the second person carrying votes which, if exercised, would entitle the first person to elect a majority
of the directors of the second person, unless that first person holds the voting securities only to secure an obligation; 

  

	 	(b)	the second person is a partnership, other than a limited partnership, and the first person holds more than 50% of the interests of the partnership; or 

 

	 	(c)	the second person is a limited partnership and the general partner of the limited partnership is the first person. 

All terms used in this Schedule A which are not otherwise defined in this Schedule A have the meanings defined in the Subscription Agreement to which this
Schedule A is attached. All other terms which are used in this Schedule A and not otherwise defined and which are defined in the Securities Act (British Columbia), the regulations, rules and policy statements made thereunder, as amended, have the
meanings defined in such legislation, regulations, rules and policy statements. 

  
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 78 

 CONFIDENTIAL 
  

 SCHEDULE B 

To be completed and signed by all Subscribers 

CERTIFICATE 
  

	TO:	Zymeworks Inc. 

 The Subscriber represents and warrants to the Corporation that he, she or it comes
within the category or categories marked below, and that for any category marked, he, she or it has truthfully set forth, where applicable, the factual basis or reason the Subscriber comes within that category. The Subscriber agrees to furnish any
additional information which the Corporation deems necessary in order to verify the answers set forth below. All references to $ in this confidential investor questionnaire are to United States dollars. 

  
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 79 

 CONFIDENTIAL 
  

			
	Category A	 	 The Subscriber is an individual (not a partnership, corporation, etc.) whose individual net worth, or joint net
worth together with his or her spouse, presently exceeds USD $1,000,000.

		
		 	 Explanation. In calculating net worth you may include equity in personal property and real estate, excluding your
principal residence, but including cash, short-term investments, stock and securities, provided that you deduct any debts you owe. Equity in personal property and real estate should be based on the fair market value of such property less debt
secured by such property.

		
	Category B	 	 The Subscriber is an individual (not a partnership, corporation, etc.) who had an income in excess of USD $200,000
in each of the two most recent years, or joint income with his or her spouse in excess of USD $300,000 in each of those years (in each case including foreign income, tax exempt income and full amount of capital gains and losses but excluding any
income of other family members and any unrealized capital appreciation) and has a reasonable expectation of reaching the same income level in the current year.

		
	Category C	 	 The Subscriber is a director or executive officer of the Corporation.

		
	Category D	 	 The Subscriber is a bank, as defined in Section 3(a)(2) of the Act; a savings and loan association or other
institution as defined in Section 3(a)(5)(A) of the Act, whether acting in its individual or fiduciary capacity; any insurance company as defined in Section 2(a)(13) of the Act; any investment company registered under the
Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act; any Small Business Investment Company (“SBIC”) licensed by the U.S. Small
Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of
a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of USD $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of
1974 if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment advisor, or if the
employee benefit plan has total assets in excess of USD $5,000,000 or, if a self-directed plan, with investment 

  
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		 	decisions made solely by persons that are Accredited Investors (describe entity below).

			
		
		 	  

			
		 	  

		 	  

		
	Category E	 	 The Subscriber is a private business development company as defined in Section 202(a)(22) of the
Investment Advisors Act of 1940.

		
	Category F	 	 The Subscriber is either a corporation, partnership, Massachusetts or similar business trust, or non-profit organization within the meaning of Section 501(c)(3) of the Internal Revenue Code, in each case not formed for the specific purpose of acquiring the Shares and with total assets in
excess of USD $5,000,000. (describe entity below)

			
		
		 	  

			
		 	  

		 	  

		
	Category G	 	 The Subscriber is a trust with total assets in excess of USD $5,000,000, not formed for the specific purpose of
acquiring the Shares, where the purchase is directed by a “sophisticated person” as described in Rule 506(b)(2)(ii) under the Act.

		
	Category H	 	 The Subscriber is an entity in which all of the equity owners are “accredited
investors” within one or more of the above categories. If relying upon this Category alone, each equity owner must complete a separate copy of this Schedule B. (describe entity
below)

			
		
		 	  

			
		 	  

		 	  

		
		 	 The Subscriber agrees that the Subscriber will notify the Corporation at any time on or prior to the Closing Date in
the event that the representations and warranties in this Agreement will cease to be true, accurate and complete. The above representations and warranties of the Subscriber will be true and correct both as of the execution of this certificate and as
of the closing time of the purchase and sale of the Shares and will survive the completion of the issue of the Shares.

  
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 CONFIDENTIAL 
  

 IN WITNESS WHEREOF, the Subscriber has executed this confidential investor questionnaire as of the
     day of December, 2014. 
  

					
	If a Corporation, Partnership or Other Entity:	 		 	If an Individual:
			
	CELGENE ALPINE INVESTMENT CO. LLC	 		 	  

		 		 	Signature
			
	  
	 		 	  

	Type of Entity	 		 	Printed or Typed Name
			
	  
	 		 	  

	Signature of Person Signing	 		 	Social Security or Taxpayer I.D. Number
			
	  
	 		 	
	Printed or Typed Name and Title of Person Signing	 		 	

  
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 Exhibit C-1 

 

									
	 Shareholder
	  	Common
Shares	 	  	Stock
Options	 
	 Board Members
	  				  			
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
			
	 Board Observers
	  				  			
	[...***...]	  	 	[...***...]	 	  	 	[...***...]	 
	[...***...]	  	 	[...***...]	 	  	 	[...***...]	 
			
	 Other Investors
	  				  			
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 

  
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 83 

 CONFIDENTIAL 
  

									
	 Shareholder
	  	Common
Shares	 	  	Stock
Options	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 

  
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 CONFIDENTIAL 
  

									
	 Shareholder
	  	Common
Shares	 	  	Stock
Options	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
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 CONFIDENTIAL 
  

									
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Options	 
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	 Employees
	  				  			
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 CONFIDENTIAL 
  

									
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Shares	 	  	Stock
Options	 
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 CONFIDENTIAL 
  

									
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Shares	 	  	Stock
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 Exhibit C-2 

 

									
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Shares	 	  	Stock
Options	 
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	 Other Investors
	  				  			

  
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 CONFIDENTIAL 
  

									
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Options	 
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 CONFIDENTIAL 
  

									
	 Shareholder
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Shares	 	  	Stock
Options	 
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Shares	 	  	Stock
Options	 
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 Confidential 

 
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 CONFIDENTIAL 
  

									
	 Shareholder
	  	Common
Shares	 	  	Stock
Options	 
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 Confidential 

 
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	 Shareholder
	  	Common
Shares	 	  	Stock
Options	 
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	 Employees
	  				  			
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 Confidential 

 
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 CONFIDENTIAL 
  

									
	 Shareholder
	  	Common
Shares	 	  	Stock
Options	 
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	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
			
	 SAB Members
	  				  			
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 

  
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 97 

 CONFIDENTIAL 
  

									
	 Shareholder
	  	Common
Shares	 	  	Stock
Options	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
			
	 Consultants (Former SAB)
	  				  			
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
	 [...***...]
	  	 	[...***...]	 	  	 	[...***...]	 
		  	  
	  
	 	  	  
	  
	 
			
	 Total
	  	 	[...***...]	 	  	 	[...***...]	 
		  	  
	  
	 	  	  
	  
	 

  
 Confidential 

 
 98 

 CONFIDENTIAL 
  

 SCHEDULE OF EXCEPTIONS 

ZYMEWORKS INC. 
 SUBSCRIPTION
AGREEMENT FOR COMMON SHARES 
 DATED December 24, 2014 

  
 Confidential 

 
 99 

 CONFIDENTIAL 
  

 These Schedules form an integral part of the Subscription Agreement (the “Agreement”)
entered into between Zymeworks Inc. (the “Corporation”) and Celgene Alpine Investment Co. LLC (the “Subscriber”) dated as of the date hereof. The inclusion of any item in a Schedule is intended to qualify the
covenants, representations and warranties of the Corporation contained in the Agreement. If a document or matter is listed in one particular section of a Schedule and it is appropriate and reasonably apparent that the disclosure with respect
to such document or matter is responsive to the disclosure required in any other Schedule, such listing shall suffice, without specific repetition and with or without cross reference, as a response disclosing the existence of such document or matter
to any other Schedule. 
 Disclosure of any item in a Schedule: (i) shall not imply the existence of any representation, warranty, undertaking or other
obligation of the Corporation not expressly set out in the Agreement and shall not extend the scope of the representations, warranties, undertaking or other obligations set forth in the Agreement; and (ii) unless otherwise indicated in such
Schedule, shall not be construed to mean that such information is material or outside of the ordinary course (regardless of whether required by the accompanying representation in the Agreement) and such information shall not be used as a basis for
interpreting the terms “material,” “materially,” “materiality,” “Material Adverse Effect”, “material adverse change” or any similar qualification in the Agreement. The Corporation may elect to
include in any Schedule information that is not material and, for greater certainty, any such inclusion shall not be deemed to be an acknowledgement or representation that such information is material. 

  
 Confidential 

 
 100 

 CONFIDENTIAL 
  

 Schedule 2(c) 

Capital Structure 
 Nil.

  
 Confidential 

 
 101 

 CONFIDENTIAL 
  

 Schedule 2(d) 

Subsidiaries 
 Zymeworks
Biopharmaceuticals Inc. 

  
 Confidential 

 
 102 

 CONFIDENTIAL 
  

 Schedule 2(i) 

Litigation 
 Nil. 

  
 Confidential 

 
 103 

 CONFIDENTIAL 
  

 Schedule 2(j) 

Proprietary Information Agreements 

Nil. 

  
 Confidential 

 
 104 

 CONFIDENTIAL 
  

 Schedule 2(k) 

Intellectual Property 

[...***...] 

  
 Confidential 

 
 105 

 CONFIDENTIAL 
  

 Schedule 2(m) 

Agreements 
 Merck Agreement - pending
achievement of certain scientific, clinical or regulatory milestones. 
  

	•	 	Under Section 2(m)(ii)(A) obligations (contingent or otherwise) of, or payments to the Corporation in excess of, $1,000,000. In 2011 Zymeworks entered into a Licensing and Collaboration agreement with Merck, Sharpe and
Dhome (DBA Merck). Under the agreement, Zymeworks may receive certain payments totalling up to US$187M upon the achievement of certain scientific, clinical, regulatory or commercial milestones, as well as royalties on sales. In December 2014
Zymeworks and Merck amended the agreement, impacting certain rights and decreasing the total milestone payments under the agreement by $[...***...]. These payments may include balances in excess of $1,000,000. 

 

	•	 	Under Section 2(m)(ii)(A) obligations (contingent or otherwise) of, or payments to the Corporation in excess of, $1,000,000. In 2013 and 2014 Zymeworks entered into collaboration and licensing agreements with Eli
Lilly & Co., Inc. Under each agreement, Zymeworks may receive payments in excess of $1,000,000 upon the achievement of certain scientific, regulatory, clinical and commercial milestones, as well as royalties on sales. These payments may
include balances in excess of US $1,000,000. 

  
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 106 

 CONFIDENTIAL 
  

 Schedule 2(n) 

Related Party Transactions 

Nil. 

  
 Confidential 

 
 107 

 CONFIDENTIAL 
  

 Schedule 2(s) 

Changes Since Financial Statement Date 

[...***...] 

  
 Confidential 

 
 108 

 CONFIDENTIAL 
  

 Schedule 2(t) 

Employee Benefit Plans 

Pursuant to the Corporation’s group Retirement Savings Plan and Non-Registered Savings Plan
(administered by [...***...]) (the “Plan”), the Corporation matches employees’ Plan contributions up to [...***...]% of their gross salary, on a matching basis. Contributions beyond [...***...]% of an
employee’s salary are not matched by the Corporation. The Corporation has placed certain restrictions on the withdrawal of Plan contributions by employees. The Corporation has no ongoing funding liabilities beyond matching the employee
contributions. 
 The Corporation provides all employees with an extended medical benefits program which provides various benefits coverage,
including; [...***...], and other related items. Employees are provided extended medical benefits, provided by [...***...], upon hire. Spousal and family benefits may be provided, if employees elect and cover [...***...]% of the
applicable plan costs. 
 The Corporation provides employees additional medical benefits through paying for [...***...]% of
the[...***...]. [...***...]are paid to the [...***...] directly through payroll deductions and direct remittance. 

  
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 109 

 CONFIDENTIAL 
  

 Schedule 2(u) 

Tax 
 2(u)(i) - Tax Returns 

The Corporation may have been required to file Federal and State tax returns in the United States in connection with research and collaboration agreements
entered into with United States domiciled partners. The Company has not quantified any potential tax and/or related liabilities that may be applicable, but is of the view that such amounts, if any, are immaterial. 

2(u)(iii) - Withholding Tax 
 The Corporation has
identified potential withholding tax liabilities relating to periodic visits of US based scientific advisory members who may have performed services in Canada in conjunction with visits to the Corporation. The Corporation has not quantified the
balance but believes the liabilities to be immaterial. 
 2(u)(iv) - Tax-Related Enforcement Actions 

Tax filings made in the province of Québec for the year ended December 31, 2013, to the knowledge of the Corporation, are currently being reviewed
or assessed by Revenue Québec. 

  
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 110 

 CONFIDENTIAL 
  

 Schedule 2(y) 

Labor Agreements and Employee Compensation 

Nil. 

  
 Confidential 

 
 111EX-10.23

 Exhibit 10.23 

CONFIDENTIAL 
 CONFIDENTIAL
TREATMENT REQUESTED UNDER RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED. [...***...] INDICATES OMITTED MATERIAL THAT IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST FILED SEPARATELY WITH THE COMMISSION. THE OMITTED MATERIAL HAS BEEN
FILED SEPARATELY WITH THE COMMISSION. 
 COLLABORATION AND LICENSE AGREEMENT 

Between 
 Zymeworks Inc.

 and 

GlaxoSmithKline Intellectual Property Development Limited 

1 December 2015 

Confidential 

 CONFIDENTIAL 
  

 TABLE OF CONTENTS 

 

									
	 	 	 Section
	  	 Page
	 
			
	 1.
	 	 DEFINITIONS AND INTERPRETATIONS
	  	 	5	 
			
	 2.
	 	 GRANT OF LICENSES
	  	 	15	 
				
		 	 2.1
	  	 Licenses to GSK
	  	 	15	 
		 	 2.2
	  	 License to Zymeworks
	  	 	16	 
		 	 2.3
	  	 No Implied Licenses
	  	 	16	 
			
	 3.
	 	RESEARCH COLLABORATION, TARGET SELECTION AND DEVELOPMENT AND COMMERCIALIZATION OF PRODUCTS	  	 	17	 
				
		 	 3.1
	  	 Research Collaboration
	  	 	17	 
		 	 3.2
	  	 Affiliates, Sublicensees and Contractors
	  	 	19	 
		 	 3.3
	  	 Records and Reports
	  	 	19	 
		 	 3.4
	  	 Target Selection
	  	 	20	 
		 	 3.5
	  	 Development and Commercialization of GSK Products
	  	 	26	 
		 	 3.6
	  	 Development and Commercialization of Zymeworks Products
	  	 	26	 
		 	 3.7
	  	 Exclusivity
	  	 	27	 
			
	 4.
	 	 GOVERNANCE
	  	 	28	 
				
		 	 4.1
	  	 Joint Project Team
	  	 	28	 
		 	 4.2
	  	 JPT Meetings
	  	 	28	 
		 	 4.3
	  	 JPT Functions
	  	 	28	 
		 	 4.4
	  	 JPT Disputes
	  	 	29	 
		 	 4.5
	  	 Failure to Achieve a Gate
	  	 	29	 
			
	 5.
	 	 FINANCIAL PROVISIONS
	  	 	30	 
				
		 	 5.1
	  	 Expenses
	  	 	30	 
		 	 5.2
	  	 Development Milestones
	  	 	30	 
		 	 5.3
	  	 Commercialization Milestones
	  	 	31	 
		 	 5.4
	  	 Royalties
	  	 	31	 
			
	 6.
	 	 REPORTS AND PAYMENT TERMS
	  	 	32	 
				
		 	 6.1
	  	 Payment Terms
	  	 	32	 
		 	 6.2
	  	 Payment Currency / Exchange Rate
	  	 	32	 
		 	 6.3
	  	 Taxes
	  	 	32	 
		 	 6.4
	  	 Records and Audit Rights
	  	 	33	 
			
	 7.
	 	 INTELLECTUAL PROPERTY RIGHTS
	  	 	33	 
				
		 	 7.1
	  	 Ownership of Inventions
	  	 	33	 
		 	 7.2
	  	 Patent Prosecution and Maintenance
	  	 	34	 
		 	 7.3
	  	 Enforcement and Defense
	  	 	36	 
			
	 8.
	 	 CONFIDENTIALITY
	  	 	39	 
				
		 	 8.1
	  	 Duty of Confidence
	  	 	39	 

  
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 CONFIDENTIAL 
  

									
	 	 	 	  	 Page
	 
				
		 	 8.2
	  	 Exceptions
	  	 	39	 
		 	 8.3
	  	 Authorized Disclosures
	  	 	39	 
			
	 9.
	 	 PUBLICATIONS AND PUBLICITY
	  	 	40	 
				
		 	 9.1
	  	 Publications
	  	 	40	 
		 	 9.2
	  	 Publicity
	  	 	41	 
			
	 10.
	 	 TERM AND TERMINATION
	  	 	41	 
				
		 	 10.1
	  	 Term
	  	 	41	 
		 	 10.2
	  	 Termination
	  	 	42	 
		 	 10.3
	  	 Termination for Cause
	  	 	42	 
		 	 10.4
	  	 Termination for Insolvency
	  	 	42	 
			
	 11.
	 	 EFFECTS OF TERMINATION
	  	 	43	 
				
		 	 11.1
	  	 Termination of Agreement
	  	 	43	 
		 	 11.2
	  	 Survival
	  	 	44	 
		 	 11.3
	  	 Damages; Relief
	  	 	45	 
		 	 11.4
	  	 Bankruptcy Code
	  	 	45	 
			
	 12.
	 	 REPRESENTATIONS AND WARRANTIES AND COVENANTS
	  	 	45	 
				
		 	 12.1
	  	 Representations and Warranties by Each Party
	  	 	45	 
		 	 12.2
	  	 Representations, Warranties and Covenants by Zymeworks
	  	 	46	 
		 	 12.3
	  	 Representations, Warranties and Covenants by GSK
	  	 	47	 
		 	 12.4
	  	 Covenants. Each Party hereby covenants to the other Party that:
	  	 	47	 
		 	 12.5
	  	 Limitation
	  	 	47	 
		 	 12.6
	  	 No Other Warranties
	  	 	48	 
			
	 13.
	 	 INDEMNIFICATION AND LIABILITY
	  	 	48	 
				
		 	 13.1
	  	 Indemnification by Zymeworks
	  	 	48	 
		 	 13.2
	  	 Indemnification by GSK
	  	 	48	 
		 	 13.3
	  	 Indemnification Procedure
	  	 	49	 
		 	 13.4
	  	 Special, Indirect and Other Losses
	  	 	49	 
		 	 13.5
	  	 Insurance
	  	 	49	 
			
	 14.
	 	 GENERAL PROVISIONS
	  	 	50	 
				
		 	 14.1
	  	 Assignment
	  	 	50	 
		 	 14.2
	  	 Extension to Affiliates
	  	 	50	 
		 	 14.3
	  	 Severability
	  	 	50	 
		 	 14.4
	  	 Governing Law; English Language
	  	 	50	 
		 	 14.5
	  	 Dispute Resolution
	  	 	51	 
		 	 14.6
	  	 Force Majeure
	  	 	52	 
		 	 14.7
	  	 Waivers and Amendments
	  	 	52	 
		 	 14.8
	  	 Relationship of the Parties
	  	 	53	 
		 	 14.9
	  	 Notices
	  	 	53	 
		 	 14.10
	  	 Further Assurances
	  	 	54	 

  
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 CONFIDENTIAL 
  

									
	 	 	 	  	 Page
	 
				
		 	 14.11
	  	 Compliance with Law
	  	 	54	 
		 	 14.12
	  	 No Third Party Beneficiary Rights
	  	 	54	 
		 	 14.13
	  	 Entire Agreement
	  	 	55	 
		 	 14.14
	  	 Counterparts
	  	 	55	 
		 	 14.15
	  	 Expenses
	  	 	55	 
		 	 14.16
	  	 Binding Effect
	  	 	55	 
		 	 14.17
	  	 Construction
	  	 	55	 
		 	 14.18
	  	 Cumulative Remedies
	  	 	55	 
		 	 14.19
	  	 Export
	  	 	55	 
		 	 14.20
	  	 Good Data Management Practices
	  	 	55	 
		 	 14.21
	  	 Ethical Standards
	  	 	56	 
		 	 14.22
	  	 Anti-Corruption
	  	 	57	 
		 	 14.23
	  	 Human Biological Samples
	  	 	57	 

 COLLABORATION AND LICENSE AGREEMENT 

THIS COLLABORATION AND LICENSE AGREEMENT (the “Agreement”), effective as of 1 December, 2015 (the
“Effective Date”), by and between GLAXOSMITHKLINE INTELLECTUAL PROPERTY DEVELOPMENT LIMITED, a corporation organized and existing under the laws of England and Wales, with its registered office located at 980 Great West Road,
Brentford, Middlesex, TW8 9GS, United Kingdom (“GSK”) and ZYMEWORKS INC., a corporation organized and existing under the laws of Canada, and extraprovincially in British Columbia, having an address at 540-1385 West 8th Avenue, Vancouver, BC, Canada V6H 3V9 (“Zymeworks”). Zymeworks and GSK are each referred to individually as a “Party” and together as the
“Parties”. 
 BACKGROUND 

A. GSK and Zymeworks desire to enter into this Agreement under which Zymeworks shall generate and develop certain Zymeworks Modifications and
Zymeworks Modified Scaffolds (each, as defined below) in collaboration with GSK. 
 B. GSK desires to obtain certain licenses under
Zymeworks’ interest in the Intellectual Property (as defined below) created pursuant to such collaborative activities to develop and commercialize certain products incorporating such Zymeworks Modified Scaffolds that are directed to certain
biological targets selected by GSK, and Zymeworks is willing to grant such rights, all on the terms and conditions as set forth below. 
 C.
Zymeworks desires to obtain certain licenses under GSK’s interest in the Intellectual Property created pursuant to such collaborative activities to develop and commercialize certain products incorporating such Zymeworks Modified Scaffolds that
are 

  
 Confidential 

 CONFIDENTIAL 
  

 
directed to biological targets selected by Zymeworks, and GSK is willing to grant such rights, all on the terms and conditions as set forth below. 

NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein below, the sufficiency which is acknowledged by
both Parties, the Parties agree as follows: 
 1. DEFINITIONS AND INTERPRETATIONS 

Whenever used in this Agreement with an initial capital letter, the terms defined in this Article 1 and elsewhere in this Agreement, whether
used in the singular or plural, shall have the meanings specified. 
 1.1 “Acquiring Entity” means a Third Party
that merges or consolidates with or acquires Zymeworks, or to which Zymeworks transfers all or substantially all of its assets to which this Agreement pertains. 

1.2 “Additional Selection Period” means the period commencing upon the end of the Zymeworks Initial Selection Period
and expiring at the end of the [...***...] period immediately following the expiration of the Research Collaboration Period. 

1.3 “Affiliate” means with respect to either Party, any Person controlling, controlled by or under common control with
such Party, for so long as such control exists. For purposes of this Section 1.3 only, “control” means (i) direct or indirect ownership of fifty percent (50%) or more of the stock or shares having the right to vote for the
election of directors of such corporate entity or (ii) the possession, directly or indirectly, of the power to direct, or cause the direction of, the management or policies of such entity, whether through the ownership of voting securities, by
contract or otherwise. 
 1.4 “Annual Net Sales” means, with respect to a particular GSK Product and Calendar Year,
all Net Sales of such GSK Product throughout the Territory during such Calendar Year. 
 1.5 “Antibody”
means any and all full-length antibodies, fragments thereof, and chemically modified versions thereof (including pegylated versions and regardless of whether containing amino acid substitutions), all of the foregoing whether naturally occurring,
artificially produced, raised in an artificial system, or created through modification of an antibody produced in any of the foregoing ways or otherwise, in each case that incorporate a Zymeworks Modified Scaffold. 

1.6 “Applicable Laws” means all federal, state, local, national and supra-national laws, statutes, rules and
regulations, including any rules, regulations, 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 applicable to a
particular activity hereunder. 
 1.7 “[...***...]” means any Antibody that contains independent binding sites
Directed To [...***...]. 

  
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 5 

 CONFIDENTIAL 
  

 1.8 “Business Day” means any day other than a Saturday, Sunday or any
other day on which commercial banks in New York, New York, U.S.A are authorized or required by Applicable Law to remain closed. 

1.9 “Calendar Quarter” means any respective period of three (3) consecutive calendar months ending on
March 31, June 30, September 30 and December 31 of any Calendar Year. 
 1.10 “Calendar Year”
means each successive period of twelve (12) months commencing on January 1 and ending on December 31. 
 1.11
“[...***...]” means [...***...]. 
 1.12 “Clinical Trial” means a Phase I
Clinical Trial, Phase II Clinical Trial or Phase III Clinical Trial, or any post-approval human clinical trial, as applicable. 

1.13 “Commercially Reasonable Efforts” means, with respect to particular obligations under this Agreement, those
efforts and resources (including expenditures) required to carry out such particular obligation consistent with the usual practices followed by such Party in the exercise of its reasonable business discretion relating to other similarly situated
pharmaceutical products at a similar stage of research, development or commercialization which are of similar market potential at a similar stage in their development or product life, taking into account issues of patent coverage, regulatory
exclusivity, regulatory structure involved including anticipated or approved labeling and anticipated or approved post-approval requirements, safety and efficacy, product profile, the competitiveness of products in development and in the
marketplace, supply chain management considerations, the proprietary position of the compound or product, the regulatory structure involved, present and future market and commercial potential including competitive market conditions and probability
of the profitability of the applicable products (including pricing and reimbursement status achieved), and other relevant factors, including technical, legal, scientific and/or medical factors. 

1.14 “Confidential Information” means all confidential and proprietary, nonpublic information, including Know-How, which is generated by or on behalf of a Party under this Agreement or which one Party or any of its Affiliates or contractors has provided or otherwise made available to the other Party, whether made
available orally, in writing, or in electronic form, including such Know-How comprising or relating to concepts, discoveries, Inventions, data, designs or formulae arising from this Agreement. This Agreement
and its Exhibits and amendments constitute Confidential Information of both of the Parties. 
 1.15 “Control” or
“Controlled” means, with respect to any material, Know-How, or other Intellectual Property right (including Patent Rights), that a Party (a) owns or (b) has a license to such
material, Know-How, or Intellectual Property right and, in each case, has the legal right to grant to the other Party access, a license, or a sublicense (as applicable) to the same on the terms and conditions
set forth in this Agreement without violating any obligations of the granting Party to a Third Party or subjecting the granting Party to any additional fee or charge. Notwithstanding anything to the contrary in this Agreement, the following shall
not be deemed to be Controlled by Zymeworks: (i) any materials, Know-How or Intellectual Property right 

  
 Confidential 

 
 6 

 CONFIDENTIAL 
  

 
owned or licensed by any Acquiring Entity immediately prior to the effective date of the merger, consolidation or transfer making such Third Party an Acquiring Entity, and (ii) any
materials, Know-How or Intellectual Property right that any Acquiring Entity subsequently develops without accessing or practicing any Zymeworks Background Technology or Project Arising IP. 

1.16 “Covered” means, with respect to a GSK Product in a particular country, that the manufacture, use, sale or
importation of such GSK Product in such country would, but for the licenses granted herein, infringe a Valid Claim. 
 1.17
“Directed To” means, with regard to an Antibody, antibody, Product or product, that such respective Antibody, antibody, Product or product (a) binds directly to an identifiable Target, and (b) exerts its primary
diagnostic, prophylactic or therapeutic activity as a result of such direct binding to an identifiable Target or modifies the profile (e.g., PK, tissue penetration and distribution) of the antibody as a result of such direct binding, in each
of (a) and (b) above as determined based on reasonable experimental data or generally accepted scientific literature, in either case available at the time of completion of preclinical development of such Antibody, antibody, Product or
product. 
 1.18 “FDA” means the United States Food and Drug Administration and any successor thereto. 

1.19 “Field” means diagnosis, prevention, palliation and treatment of human or animal disease and disorders. 

1.20 “First Commercial Sale” means, the first sale of a Product in a given country or other regulatory jurisdiction in
the Territory by or on behalf of GSK, its Affiliates or sublicensees to a Third Party, after receipt of Marketing Authorization (including Pricing Approval, to the extent required for sale of Products in a given country or regulatory jurisdiction,
and the completion of any necessary labeling negotiations with Regulatory Authorities that may be required after Regulatory Approval and such Pricing Approval) for Products in such country or regulatory jurisdiction. First Commercial Sale shall
specifically exclude sales or transfers for clinical study purposes or compassionate use, named-patient, indigent patient or similar uses, if such uses do not result in monetary compensation to GSK above the cost of goods. 

1.21 “GMP” means Good Manufacturing Practice which relates to practices required in order to conform to the guidelines
recommended by regulatory agencies that control authorization and licensing for manufacture and sale of food, drug products, and active pharmaceutical products. 

1.22 “GMP Cell Line Development” means, with respect to a Product, the stable transfection by a Party (itself
or through an Affiliate or Third Party) of a cell line for the purposes of producing GMP standard Product for preclinical and/or clinical studies. 

1.23 “Governmental Authority” means any multinational, federal, state, local, municipal or other governmental
authority of any nature (including any governmental division, prefecture, subdivision, department, agency, bureau, branch, office, commission, council, court or other tribunal), in each case, having jurisdiction over the applicable subject matter.

  
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 7 

 CONFIDENTIAL 
  

 1.24 “GSK Background IP” means any and all Patent Rights, Know-How and other Intellectual Property rights, which (a) are Controlled by GSK or its Affiliates as of the Effective Date or (b) are generated outside of this Agreement and Controlled by GSK or its
Affiliates. 
 1.25 “GSK Initial Selection Period” means the period commencing on the expiration of the Research
Collaboration Term and ending upon the earlier of (a) the date that is [...***...] thereafter and (b) the date on which [...***...]. 

1.26 “GSK Mono-Specific Product” means a Product, incorporating a Mono-Specific Antibody Directed To a GSK Target.

 1.27 “GSK Multi-Specific Antibody” means any Multi-Specific Antibody that contains independent binding sites
Directed To [...***...], which Multi-Specific Antibody includes a Zymeworks Modified Scaffold and in which (i) the full-length monoclonal antibody contains [...***...], and (ii) any binding to [...***...] to the same
monoclonal antibody described in clause (i) above that are Directed To [...***...]. 
 1.28 “GSK Multi-Specific
Product” means a Product incorporating a GSK Multi-Specific Antibody derived and generated from a GSK Sequence Pair. 
 1.29
“GSK Product” means (a) a GSK Mono-Specific Product or (b) a GSK Multi-Specific Product. The Antibodies described in (a) and (b) above may be referred to in this Agreement as “GSK Antibodies.”
For clarity, (x) GSK Product shall not include Products containing Mono-Valent Antibodies or Multi-Specific Antibodies that are not GSK Multi-Specific Antibodies; and (y) GSK Products Directed To a particular Target(s) may be limited to
GSK Mono-Specific Products or GSK Multi-Specific Products, but not both, as determined pursuant the Target selection and gatekeeping mechanisms set forth in Article 3. 

1.30 “GSK Project Arising IP” means the GSK Inventions arising from the Research Collaboration and all Intellectual
Property rights therein, including the GSK Project Patent Rights. 
 1.31 “GSK Sequence Pair” means a Sequence Pair that is
available to GSK pursuant to Section 3.4.4. 
 1.32 “[...***...]” means the [...***...] more specifically
referred to [...***...] as [...***...]. 
 1.33 “IND” means an investigational new drug
application filed with the FDA with respect to a GSK Product, or an equivalent application filed with a Regulatory Authority in a country other than the United States to commence a Clinical Trial of a pharmaceutical product. 

1.34 “Invention” means any inventions, discoveries or other intellectual property (including all Patent Rights,
Know-How and other intellectual property rights therein) made by or under authority of the Parties, whether alone or jointly with the other Party, during the Term. 

  
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 8 

 CONFIDENTIAL 
  

 1.35 “Intellectual Property” means Patent Rights, Know-How, utility models, and other like forms of protection, copyrights, database rights, rights in databases, trade names, trade or service marks (whether registered or unregistered), domain names, design rights
(whether registered or unregistered), including all applications for registration for the foregoing and all other similar proprietary rights as may exist anywhere in the world. 

1.36 “Invoice” means any invoice submitted to GSK by Zymeworks under this Agreement, produced in accordance with
GSK’s processing requirements, as set forth in Exhibit 1.36. 
 1.37 “Joint Invention” means any Invention
conceived or reduced to practice in the course of the Research Collaboration jointly by one or more employees or personnel of GSK or any Affiliate or a Third Party acting on behalf of GSK or its Affiliate, on the one hand, and one or more employees
or personnel of Zymeworks or its Affiliate or a Third Party acting on behalf of Zymeworks or its Affiliate, on the other hand. 

1.38 “Joint Patent Rights” means all Patent Rights claiming a Joint Invention. 

1.39 “Know-How” means any and all technical information, know-how, data, inventions, discoveries, trade secrets, specifications, instructions, processes, formulae, methods, protocols, expertise and other technology applicable to formulations, compositions or products or
to their manufacture, development, registration, use or marketing or to methods of assaying or testing them, and all biological, chemical, pharmacological, biochemical, toxicological, pharmaceutical, physical and analytical, safety, quality control,
manufacturing, preclinical and clinical data relevant to any of the foregoing. For clarity, Know-How excludes Patent Rights and materials. 

1.40 “Marketing Authorization” means all approvals from the relevant Regulatory Authority necessary to initiate
marketing and selling a pharmaceutical or biopharmaceutical product (including a Product) in any country. For clarity, unless [...***...] in a particular country, Marketing Authorization shall not [...***...]. 

1.41 “Mono-Specific Antibody” means any full-length monoclonal antibody that contains [...***...] that are
Directed To [...***...]. 
 1.42 “Mono-Valent Antibody” means any Antibody that comprises [...***...].

 1.43 “Multi-Specific Antibody” means any Antibody that contains independent binding sites Directed To
[...***...]. 
 1.44 “Net Sales” means gross invoiced sales of the GSK Products to Third Parties by GSK, its
Affiliates, or their respective licensees or sublicensees (each, a “Selling Party”), in a particular period, less the following deductions which are actually incurred, allowed, paid, accrued or specifically allocated with respect to
such GSK Products, to the extent that such amounts are deducted from gross invoiced sales amounts in calculating net sales as reported by Selling Party in its financial statements in accordance with the International Financial Reporting Standards
(“IFRS”), applied on a consistent basis: 

  
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 1.44.1 [...***...]; 

1.44.2 [...***...]; 

1.44.3 [...***...]; 

1.44.4 [...***...]; 

1.44.5 [...***...]; 

1.44.6 [...***...]; and 

1.44.7 any other items actually deducted from gross invoiced sales amounts as reported by GSK in its financial statements in accordance
with the IFRS, applied on a consistent basis. 
 For purposes of this definition, each GSK Product would be considered “sold” and
“deductions” allowed by a Selling Party when recorded as invoiced in such Selling Party’s financial statements prepared in accordance with IFRS. 

1.45 “Patent Rights” means the rights and interests in and to issued patents and pending patent applications (which,
for purposes of this Agreement, include certificates of invention, applications for certificates of invention and priority rights) in any country or region, including all provisional applications, substitutions, continuations, continuations-in-part, continued prosecution applications including requests for continued examination, divisional applications and renewals, and all letters patent or
certificates of invention granted thereon, and all reissues, reexaminations, extensions (including pediatric exclusivity patent extensions), term restorations, patent term extensions, supplementary protection certificates, renewals, substitutions,
confirmations, registrations, revalidations, revisions and additions of or to any of the foregoing, in each case, in any country. 

1.46 “Person” means any individual, corporation, partnership, association, joint-stock company, trust, unincorporated
organization or government or political subdivision thereof. 
 1.47 “Phase I Clinical Trial” means a study in
humans which provides for the first introduction into humans of a product, conducted in healthy volunteers or patients to generate information on product safety, tolerability, pharmacological activity or pharmacokinetics, or otherwise consistent
with the requirements of U.S. 21 C.F.R. §312.21(a) or its foreign equivalents. 
 1.48 “Phase II Clinical
Trial” means a study in humans of the safety, dose ranging and efficacy of a product, which is prospectively designed to generate sufficient data (if successful) to commence a Phase III Clinical Trial or to file for accelerated approval, or
otherwise consistent with the requirements of U.S. 21 C.F.R. §312.21(b) or its foreign equivalents. 
 1.49 “Phase III
Clinical Trial” means a controlled study in humans of the efficacy and safety of a product, which is prospectively designed to demonstrate statistically whether such 

  
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product is effective and safe for use in a particular indication in a manner sufficient to file for Marketing Authorization, or otherwise consistent with the requirements of U.S. 21 C.F.R.
§312.21(c) or its foreign equivalents. 
 1.50 “Product” means any pharmaceutical or biopharmaceutical product
incorporating an Antibody. 
 1.51 “Pricing Approval” means any governmental approval, agreement, determination or
decision establishing prices for a Product that can be charged and/or reimbursed in regulatory jurisdictions where the applicable Governmental Authorities approve or determine the price and/or reimbursement of pharmaceutical products and where such
approval, agreement, determination or decision establishes prices for a Product. For clarity, GSK shall have no obligation to [...***...] if it does not [...***...] that [...***...] to GSK in its sole discretion. 

1.52 “Project Arising IP” means any Inventions arising from the Research Collaboration, together with all Intellectual
Property rights therein. For clarity, the Project Arising IP shall include the Joint Inventions, Joint Patents, Zymeworks Project Patent Rights and GSK Project Patent Rights. 

1.53 “Regulatory Authority” means the FDA or any counterpart of the FDA outside the United States, or other national,
supra-national, regional, state or local regulatory agency, department, bureau, commission, council or other governmental entity with authority over the distribution, importation, exportation, manufacture, production, use, storage, transport,
clinical testing or sale of a pharmaceutical product (including a Product), which may include the authority to grant the required reimbursement and Pricing Approvals for such sale. 

1.54 “Sequence” means an Antibody nucleic acid or amino acid sequence corresponding [...***...]
that is Directed To [...***...]. 
 1.55 “Sequence Pair” means two (2) Sequences, each of which is
Directed To [...***...]. 
 1.56 “Target” means any [...***...]. 

1.57 “Territory” means all of the countries and territories in the world. 

1.58 “Third Party” means any Person other than GSK or Zymeworks or an Affiliate of GSK or Zymeworks. 

1.59 “Type of Antibody” means, as applicable, any [...***...], GSK Multi-Specific Antibody(ies),
GSK Mono-Specific Antibody(ies), GSK Multi-Specific Antibody(ies), Mono-Specific Antibody(ies), or Multi-Specific Antibody(ies). Similarly, “Type of Product” means Products incorporating only one (1) Type of Antibody and no
other Type of Antibody. 
 1.60 “United States” or “US” means the United States of America and its
territories and possessions. 
 1.61 “USD” and “$” mean United States dollars. 

  
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 1.62 “Valid Claim” means any claim of an issued, in force and
unexpired patent, or pending patent application within the Zymeworks Patent Rights or the Project Arising IP (excluding GSK Project Patent Rights and GSK Project Arising IP) that: 

1.62.1 has not been finally cancelled, withdrawn, abandoned or rejected by any administrative agency or other body of competent
jurisdiction and is not subject to further appeal, 
 1.62.2 has not been revoked, held invalid, or declared unpatentable or
unenforceable in a decision of a court or other body of competent jurisdiction that is unappealable or unappealed within the time allowed for appeal, and 

1.62.3 has not been rendered unenforceable through disclaimer, abandonment, withdrawal, dedication to the public, allowing to lapse
through non-payment of renewal fees or otherwise. 
 A claim within a pending patent application that has been
pending issuance for more than [...***...] from the date of filing of the earliest priority patent application to which such pending patent application is entitled shall not be a Valid Claim, unless and until it issues. 

1.63 “Zymeworks Initial Selection Period” means the period commencing on the expiration of [...***...] and
ending upon the earlier of (a) the date that is [...***...] thereafter and (b) the date on which [...***...]. 

1.64 “Zymeworks Background Technology” means the Zymeworks Patent Rights and the Zymeworks Know-How (other than any Project Arising IP), which (a) are Controlled by Zymeworks or its Affiliates as of the Effective Date or (b) are generated outside of this Agreement and Controlled by Zymeworks or
its Affiliates. 
 1.65 “Zymeworks Know-How” means all Know-How, which: (a) is Controlled by Zymeworks as of the Effective Date and during the Term of the Agreement, and (b) is necessary or useful to GSK in (i) carrying out the activities assigned to it
under the Research Collaboration or (ii) developing, manufacturing or commercializing the Zymeworks Modified Scaffolds for inclusion in GSK Products. 

1.66 “Zymeworks Modified Scaffold IP” means any and all Zymeworks Inventions comprising the Zymeworks Modified
Scaffolds, and all Intellectual Property rights therein. 
 1.67 “Zymeworks Patent Rights” any and all Patent Rights
that are Controlled by Zymeworks or its Affiliates (including Patent Rights Controlled by Zymeworks claiming Zymeworks Inventions) as of the Effective Date and during the Term of the Agreement, which (a) are necessary or useful for carrying out
the Research Collaboration or (b) claim the manufacture or use of the Zymeworks Modifications or the Zymeworks Modified Scaffolds. 

1.68 “Zymeworks Product” means any Product Directed To a Zymeworks Target. For clarity, Zymeworks Products may
(a) include Products containing Mono-Valent Antibodies and Multi-Specific Antibodies and (b) with respect to a particular Zymeworks Target(s), be 

  
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limited to a particular Type of Product, as determined pursuant to the Target selection and gatekeeping mechanisms set forth in Article 3. 

1.69 “Zymeworks Project Arising IP” means the Zymeworks Inventions and all Intellectual Property rights therein,
including the Zymeworks Project Patent Rights. 
 1.70 “Zymeworks Technology” means Zymeworks’ proprietary
antibody engineering tools and capabilities. 
 1.71 Additional Definitions. In addition, each of the following
definitions shall have the respective meanings set forth in the section of this Agreement indicated below. 
  

			
	 Definition
	  	 Section/Exhibit

	 120 Day Period
	  	10.1.1
	 Accounting Firm
	  	6.4.2
	 Agreement
	  	Preamble
	 Agreement Payments
	  	6.3
	 CDA
	  	8.1
	 Claims
	  	13.1
	 Code
	  	11.4
	 Commercialization Milestone Event
	  	5.3
	 Commercialization Milestone Payment
	  	5.3
	 Controlling Party
	  	7.3.5
	 Development Milestone Event
	  	5.2
	 Development Milestone Payment
	  	5.2
	 Dispute
	  	14.5.1
	 Effective Date
	  	Preamble
	 Excluded Claim
	  	14.5.7
	 Excluded Claim
	  	14.5.7
	 Exclusivity Payment
	  	3.7.2
	 Exclusivity Period
	  	3.7.2
	 Gate
	  	3.1.3(b)
	 [...***...]
	  	3.4.1
	 GSK
	  	Preamble
	 GSK Antibodies
	  	1.28
	 GSK Indemnified Party
	  	13.1
	 GSK Inventions
	  	7.1
	 GSK Mono-Specific Product
	  	1.28
	 GSK Multi-Specific Product
	  	1.28
	 GSK Project Patent Rights
	  	7.1
	 GSK Target
	  	3.4.3(a)
	 IFRS
	  	1.44
	 Improvements
	  	7.1
	 Indemnified Party
	  	13.3.1
	 Indemnifying Party
	  	13.3.1
	 Infringement
	  	7.3.1

  
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	 Definition
	  	 Section/Exhibit

	Initial GSK Targets	  	3.4.2(a)
	JPT	  	4.1
	Losses	  	13.1
	Parties	  	Preamble
	Party	  	Preamble
	prosecution	  	7.2.1
	Research Collaboration	  	3.1.1
	Research Collaboration Plan	  	3.1.3
	Research Collaboration Term	  	3.1.2
	Royalty	  	5.4.1
	Royalty Term	  	5.4.2
	Rules	  	14.5.3
	Selling Party	  	1.44
	Taxes	  	6.3
	Term	  	10.1.1
	Unavailable Target	  	3.4.3(a)
	Year	  	3.7.2
	Year 1	  	3.7.2
	Year 2	  	3.7.2
	Year 3	  	3.7.2
	Year 4	  	3.7.2
	Year 5	  	3.7.2
	Zymeworks	  	Preamble
	Zymeworks Indemnified Party	  	13.2
	Zymeworks Inventions	  	7.1
	Zymeworks Modifications	  	3.1.3(a)
	Zymeworks Modified Scaffold	  	3.1.3(a)
	Zymeworks Project Patent Rights	  	7.1
	Zymeworks Target	  	3.4.3(b)

 1.72 Interpretation. The captions and headings to this Agreement are for convenience
only, and are to be of no force or effect in construing or interpreting any of the provisions of this Agreement. Unless specified to the contrary, references to Articles, Sections or Exhibits mean the particular Articles, Sections or Exhibits
to this Agreement and references to this Agreement include all Exhibits hereto. In the event of any conflict between the main body of this Agreement and any Exhibit hereto, the main body of this Agreement shall prevail. Unless context otherwise
clearly requires, whenever used in this Agreement: (a) the words “include” or “including” shall be construed as incorporating, also, “but not limited to” or “without limitation;” (b) the word
“day” or “year” means a calendar day or year unless otherwise specified; (c) the word “notice” shall mean notice in writing (whether or not specifically stated) and shall include notices, consents, approvals and
other written communications contemplated under this Agreement; (d) the words “hereof,” “herein,” “hereby” and derivative or similar words refer to this Agreement as a whole and not merely to the particular
provision in which such words appear; (e) the words “shall” and “will” have interchangeable meanings for purposes of this 

  
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Agreement; (f) the word “or” shall have the inclusive meaning commonly associated with “and/or”; (g) provisions that require that a Party, the Parties or a committee
hereunder “agree,” “consent” or “approve” or the like shall require that such agreement, consent or approval be specific and in writing, whether by written agreement, letter, approved minutes or otherwise;
(h) words of any gender include the other gender; (i) words using the singular or plural number also include the plural or singular number, respectively; (j) references to any specific law, rule or regulation, or article, section or
other division thereof, shall be deemed to include the then-current amendments thereto or any replacement law, rule or regulation thereof; and (k) neither Party shall be deemed to be acting on behalf of the other Party. 

2. GRANT OF LICENSES 

2.1 Licenses to GSK. Subject to the terms and conditions of this Agreement, 

2.1.1 Conduct of the Research Collaboration. Zymeworks hereby grants to GSK a
non-exclusive research license, including the right to sublicense to Affiliates of GSK and Third Parties undertaking Research Collaboration activities with GSK or on GSK’s behalf, under the Zymeworks
Background Technology and the Zymeworks Project Arising IP solely for GSK to perform those activities assigned to GSK in the Research Collaboration Plan. 

2.1.2 For Antibodies and GSK Products. Subject to the terms and conditions of this Agreement, Zymeworks shall
grant, and hereby grants, to GSK a worldwide, sublicensable (in accordance with Section 2.1.3) and transferable (solely in connection with a permitted assignment of this Agreement in accordance with Section 14.1) license under the
Zymeworks Project Arising IP to (a) research, develop, make, use, and import GSK Antibodies intended for incorporation into GSK Products, (b) research, develop, make, use, sell, offer to sell and import any GSK Product in the Field in the
Territory. The licenses set forth in this Section 2.1.2 shall be exclusive with respect to Zymeworks’ rights in all Project Arising IP other than the Zymeworks Modified Scaffold IP, with respect to which it shall be non-exclusive. For clarity, GSK would have the right to use the Zymeworks Modification and Zymeworks Modified Scaffolds solely for purposes of performing the Research Collaboration; researching and developing GSK
Antibodies to be incorporated in any GSK Product; and researching, developing and commercializing such GSK Products, in each case in accordance with this Agreement. In addition, Zymeworks shall grant, and hereby grants, to GSK a non-exclusive license under the Zymeworks Background Technology to research, develop, make, use, sell and import the Zymeworks Modifications and Zymeworks Modified Scaffolds for inclusion in the GSK Products in the
Field in the Territory. 
 2.1.3 Sublicenses. The licenses granted to GSK in Section 2.1.2 include the right to grant
sublicenses through multiple tiers, provided that each sublicense granted by GSK shall be consistent with the terms and conditions of this Agreement. GSK shall provide Zymeworks with prompt notice of any such sublicenses that it grants and shall be
and remain responsible to Zymeworks for the performance of each sublicensee under such sublicense. 

  
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 2.2 License to Zymeworks. 

2.2.1 Conduct of the Research Collaboration. GSK hereby grants to Zymeworks a
non-exclusive license, including the right to sublicense to Affiliates of Zymeworks and Third Parties undertaking Research Collaboration activities with Zymeworks or on Zymeworks’ behalf, under the GSK
Background IP and the GSK Project Arising IP solely for Zymeworks to perform those activities assigned to Zymeworks in the Research Collaboration Plan. 

2.2.2 For Zymeworks Products and Third Party Products. Subject to the terms and conditions of this Agreement, GSK hereby grants
to Zymeworks an exclusive, sublicensable (in accordance with Section 2.2.3) license under the GSK Project Arising IP related to the Zymeworks Modifications or Zymeworks Modified Scaffolds to (a) research, develop, make, use, and import
Antibodies for incorporation into Zymeworks Products, and (b) research, develop, make, use, sell, and import Zymeworks Products in the Field in the Territory. In addition, and subject to Section 3.7, GSK hereby grants to Zymeworks an
exclusive license under the GSK Project Arising IP related to the Zymeworks Modifications or Zymeworks Modified Scaffolds to make, use, sell, and import Products other than the Zymeworks Products and the GSK Products in the Field in the Territory;
provided that such license shall be solely for purposes of developing Products for, and granting sublicenses to, Third Parties, so that such Third Parties may further develop and commercialize such Products in the Field in the Territory (each, a
“Third Party Product”). 
 2.2.3 Sublicenses. The licenses granted to Zymeworks in Section 2.2.2 include
the right to grant sublicenses through multiple tiers, provided that each sublicense granted by Zymeworks shall be consistent with the terms and conditions of this Agreement. Zymeworks shall provide GSK with prompt notice of any such sublicenses
that it grants and shall be and remain responsible to GSK for the performance of each sublicensee under such sublicense. 
 2.3 No
Implied Licenses. Except as expressly set forth in this Agreement, neither Party, by virtue of this Agreement, shall acquire any license or other interest, by implication or otherwise, in any materials,
Know-How, Patent Rights or other Intellectual Property rights Controlled by the other Party or its Affiliates. Subject to the licenses expressly granted to GSK hereunder and the other terms and
conditions of this Agreement, Zymeworks shall retain all rights under the Zymeworks Background Technology. Subject to the licenses expressly granted to Zymeworks hereunder and the other terms and conditions of this Agreement, GSK shall retain all
rights under the GSK Background IP. The licenses granted to GSK in Section 2.1, with respect to the Zymeworks Patent Rights, shall apply solely to the extent that the right to practice such Patent Rights is necessary or useful to manufacture,
use and import the Zymeworks Modifications and Zymeworks Modified Scaffolds developed pursuant to the Research Collaboration for inclusion in any GSK Antibody to be incorporated into a GSK Product to be researched, developed and commercialized by or
on behalf of GSK in accordance with this Agreement. 

  
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 3. RESEARCH COLLABORATION, TARGET SELECTION AND 

DEVELOPMENT AND 

COMMERCIALIZATION OF PRODUCTS 

3.1 Research Collaboration. 

3.1.1 General. GSK and Zymeworks shall conduct a program to generate and optimize Zymeworks Modified Scaffolds on a
collaborative basis and in accordance with the Research Collaboration Plan (the “Research Collaboration”). The Research Collaboration shall be coordinated by the Parties through the JPT. 

3.1.2 Research Term. The Research Collaboration shall commence on the Effective Date and shall conclude on the earlier of
(a) the date that is three (3) years thereafter or (b) the date on which the JPT determines that the Research Collaboration Plan has been completed, unless earlier terminated in accordance with Section 10.2, 10.3 or 10.4 (such
period, the “Research Collaboration Term”). The Research Collaboration Term may be extended upon mutual written agreement of the Parties. 

3.1.3 Research Collaboration Plan. The Research Collaboration shall cover the following activities, as set forth in further
detail in a written plan agreed to by the Parties in writing (the “Research Collaboration Plan”), which plan may be amended from time to time upon the mutual written consent of the Parties, such consent not to be unreasonably
withheld, conditioned or delayed. The initial plan with respect to the Research Program is attached hereto as Exhibit 3.1.3). 

(a) Zymeworks shall engineer the Fc region of any number of Antibody(ies) using the Zymeworks Technology to generate [...***...]
mutually agreed by the Parties in the Research Collaboration Plan, meeting mutually established criteria set forth in the Research Collaboration Plan (the “Zymeworks Modifications”). Each resulting Antibody scaffold incorporating
any Zymeworks Modification that result directly from the Research Collaboration may be referred to herein as a “Zymeworks Modified Scaffold” and may include a [...***...]. For clarity, Zymeworks Modified Scaffolds do not
include any scaffold that comprises solely the Zymeworks Background Technology (and does not incorporate any Project Arising IP). 

(b) GSK shall research, develop, manufacture, test, analyze and/or validate Antibodies incorporating such Zymeworks Modified
Scaffolds. 
 The Research Collaboration Plan shall also include certain ‘gates’ that mark decision-making points regarding
whether to proceed with the Research Collaboration based on whether the Parties successfully achieve the task required to pass through such ‘gate’ (each, a “Gate”). Sections 4.5 shall apply in the event that the Parties
fail to achieve any Gate. 
 3.1.4 Conduct of Research Collaboration. Each Party: 

  
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 (a) shall conduct its responsibilities under the Research Collaboration, as assigned
to it under the Research Collaboration Plan and shall use Commercially Reasonable Efforts to achieve the objectives and timelines within the Research Collaboration Plan; 

(b) shall conduct the Research Collaboration in compliance with all Applicable Laws; and 

(c) may utilize the services of its Affiliates and Third Parties to perform those activities assigned to it under the Research
Collaboration, subject to Section 3.2 below. 
 3.1.5 Exchange of Know-How and
Materials. 
 (a) Without limiting Section 3.3, promptly after the Effective Date, and on an ongoing basis during the
conduct of the Research Collaboration, (i) Zymeworks shall disclose to GSK in writing and/or in an electronic format the Zymeworks Know-How reasonably necessary for GSK’s performance of its
obligations pursuant to the Research Collaboration Plan and (ii) GSK shall disclose to Zymeworks in writing and/or in electronic format Know-How Controlled by GSK and reasonably necessary for
Zymeworks’ performance of its obligations pursuant to the Research Collaboration Plan, in each case (i) and (ii) as specified in the Research Collaboration Plan and such disclosure shall be the Confidential Information of the disclosing
Party. 
 (b) Transfers of Materials. In the event that the Parties mutually agree, pursuant to the Research Collaboration
Plan, that a transfer of any biopharmaceutical, biological, chemical or other material (“Material(s)”) from GSK or Zymeworks (the “Transferor”) to Zymeworks or GSK (as the case may be) (the
“Transferee”) is necessary or desirable to facilitate the Parties’ collaborative activities pursuant to this Agreement, the Parties shall document such transfer using the material transfer record form set out in Exhibit 3.1.5
(the “Material Transfer Record Form”) and the Transferor shall effect such transfer in accordance with the following provisions: 

(i) the Transferor shall complete and submit to the Transferee for counter-signature (and the Transferee shall counter-sign), the Material
Transfer Record Form prior to the transfer of the Material. 
 (ii) the Transferor warrants that it has the full right and authority to
transfer the Materials to the Transferee for use within the contemplated research as set forth in the Research Collaboration Plan. 
 (iii)
The Material and related information provided by Transferor shall remain the property of Transferor or remain under the control of Transferor and shall be kept securely by Transferee and shall not be provided by Transferee, without the prior written
consent of Transferor, to any Third Party, other than Third Parties engaged by the Transferee for purposes of the Research Collaboration in accordance with Section 3.1.4(c) above and subject to Section 3.2 below. 

  
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 (iv) The Transferee shall only use the Material for the purpose of the performing the
applicable work as laid out under the Research Collaboration Plan and shall only use the Material in accordance with all Applicable Laws. 

(v) The Transferee shall not, save as necessary for the conduct of work as laid out under the Research Collaboration Plan, use the Material
in any human subjects. 
 (vi) The Transferee acknowledges that the Material is experimental in nature and provided “as is” and
that the Transferor makes no representation or extends no warranty of any kind with respect to the Material and hereby disclaims all warranties, either express or implied, including, but not limited to, any warranty of merchantability, fitness for a
particular purpose or that their use does not or shall not infringe any patent rights of Third Parties. 
 (vii) The Transferee shall use
the Material at its own risk and in accordance with Applicable Laws and any safety instructions provided by the Transferor. 
 (viii) The
Transferee shall, at the election and direction of the Transferor following completion of the purpose for which the Material was transferred, destroy or return the Material. 

(ix) Ownership of all Materials transferred in accordance with this Section 3.1.5(b) shall be retained by the Transferor and licensed to the
Transferee solely to the extent provided in ARTICLE 7. 
 3.2 Affiliates, Sublicensees and Contractors. Each Party, in
utilizing the services of its Affiliates, sublicensees, Third Party collaborators and/or contractors under this Agreement, may sublicense its rights under this Agreement in accordance with Section 2.1.3 and 2.2.3, respectively, and share
Confidential Information with such Affiliates, sublicensees, Third Party collaborators and/or contractors in furtherance of the Research Collaboration and in undertaking research, development and commercialization activities under this
Agreement, in each case in accordance with Article 8; provided, however, that such Party shall remain responsible for such performance of its Affiliates, sublicensees, Third Party collaborators and/or contractors and shall cause such
Affiliates, sublicensees and contractors to comply with the provisions of this Agreement in connection with such performance, including the provisions regarding confidentiality and non-use. 

3.3 Records and Reports. 

3.3.1 Records. Each Party shall maintain records, for so long as necessary to comply with Applicable Laws or reasonably
necessary to support the prosecution, maintenance and enforcement of Intellectual Property rights (including Patent Rights) in accordance with Article 7 below, regarding its conduct of the Research Collaboration, in sufficient detail and in good
scientific manner appropriate for patent and regulatory purposes, which records shall completely and accurately reflect the work done and results achieved by such Party in the performance of the Research Collaboration. 

  
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 3.3.2 Copies and Inspection of Records. During the period that such records are
required to be maintained pursuant to Section 3.3.1, each Party shall have the right to request copies of such records referred to in Section 3.3.1, which request shall be fulfilled by such Party receiving such request, where reasonably
necessary for such requesting Party to exercise its rights or fulfil its obligations under this Agreement. 
 3.4 Target
Selection. Subject to this Section 3.4, GSK and Zymeworks shall each have the right to designate Targets as GSK Targets or Zymeworks Targets, respectively, with respect to which it would have the rights set forth in this Agreement,
including pursuant to Sections 2.1 or 2.2, as applicable, to research, develop, manufacture and commercialize designated Types of Antibodies and Types of Products in the Field in the Territory. 

3.4.1 [...***...]. Prior to the expiration of the Research Collaboration Term and in any event no later than [...***...]
prior to the JPT’s estimated date of expiry of the Research Collaboration Term, Zymeworks shall select [...***...], and Zymeworks and GSK shall enter into a written agreement, [...***...] setting forth, among other things, the
[...***...] with respect to the Parties’ selection of Targets and Types of Products. [...***...] as further described in Section 3.4.3 below. [...***...], shall also have the right to audit GSK, on an annual basis, to
ensure that GSK is not developing, manufacturing or commercializing Products outside of the scope of the licenses granted to it in Section 2.1, including Products Directed To Targets that are not GSK Targets or derived from Sequence Pairs that
are not GSK Sequence Pairs. GSK shall promptly comply with each such audit requests by providing any information or documentation in its possession which GSK is legally able to disclose as requested [...***...] with respect to the Products
that it is developing, manufacturing or commercializing that is reasonably necessary to understanding the Targets to which such Products are Directed To or the Sequence Pairs from which they are derived. Such information and documentation, disclosed
by GSK in accordance with this Section 3.4.1 shall be maintained as the Confidential Information of GSK [...***...], other than to the extent necessary to convey [...***...]. For clarity, [...***...], and GSK shall not be
required to [...***...]. 
 3.4.2 Target Selection Timeline. 

(a) GSK Initial Selection. During the GSK Initial Selection Period, GSK may designate up to [...***...] initial
Targets as potential GSK Targets for [...***...] by submitting written notice of each such designated Target [...***...] for gatekeeping in accordance with Section 3.4.3 below. The first [...***...] such Targets to become GSK
Targets may be referred to herein as the “Initial GSK Targets”. Notwithstanding anything herein to the contrary, each Initial GSK Target shall be a GSK Target solely for purposes of developing and commercializing [...***...],
unless and until one or more Sequence Pairs Directed to such GSK Target(s) are designated by GSK and determined to be available pursuant to Section 3.4.4 for purposes of developing and commercializing [...***...]. For clarity, any rights
granted to GSK under this Agreement with respect to [...***...] shall be granted on a GSK Sequence Pair-by-GSK Sequence Pair basis and are subject to Sequence
Pair-level gatekeeping by Zymeworks in accordance with Section 3.4.4 below. 

  
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 (b) Zymeworks Initial Selection. 

(i) During the Zymeworks Initial Selection Period, Zymeworks may designate up to [...***...] initial Targets as potential Zymeworks
Targets for up to four (4) distinct Zymeworks Products by submitting written notice of each such designated Target and the Type of Product to be Directed To such Zymeworks Target or pair of Zymeworks Targets [...***...] for gatekeeping in
accordance with Section 3.4.3 below and subject to Section 3.4.2(e). 
 (ii) After the GSK Initial Selection Period and subject to
Section 3.7, Zymeworks may also grant rights to Third Parties to develop and commercialize Products Directed To Targets (including Targets other than the Zymeworks Targets) that have not been previously selected as GSK Targets provided further
that such Targets shall be [...***...] in accordance with Section 3.4.3 below. Such Products are Third Party Products. 

(c) Additional Selection Period. During the Additional Selection Period, GSK may designate up to [...***...]
additional Targets as potential GSK Targets for up to [...***...] additional distinct GSK Products and Zymeworks may designate up to [...***...] additional Targets as potential Zymeworks Targets for up to [...***...] additional
distinct Zymeworks Products, in each case by submitting written notice of each such designated Target and, subject to the following two (2) sentences, Type of Product to be Directed To such Target or pair of Targets [...***...] for
gatekeeping in accordance with Section 3.4.3 and, if applicable, Section 3.4.4. For the avoidance of doubt, Zymeworks shall retain its right to designate [...***...] additional Targets during the Additional Selection Period, even if
it has already designated four (4) Types of Products associated with other Zymeworks Targets pursuant to Section 3.4.2(b) above; provided that Zymeworks shall be limited to designating a total of four (4) Zymeworks Products, and until
Zymeworks designates a Type of Product with respect to a particular Zymeworks Target, such Zymeworks Target shall not be deemed to be an Unavailable Target for GSK with respect to any Type of Product pursuant to Section 3.4.3(a)(1), but shall be
available for Product swapping by Zymeworks pursuant to Section 3.4.2(d)(iii). Accordingly, Zymeworks may not [...***...] a Type of Product associated with the additional Targets that it designates pursuant to this Section 3.4.2(c), if it has
already designated four (4) Types of Products associated with other Zymeworks Targets. For each GSK Target selected after the Initial GSK Targets have been selected, GSK shall pay to Zymeworks [...***...] ($[...***...]). Such
payment applies on a Target-by-Target basis. Accordingly, if GSK selects two (2) Targets toward which it would develop [...***...], and GSK had not previously
paid Zymeworks such [...***...] ($[...***...]) payment for either of such Targets, GSK shall pay to Zymeworks [...***...] ($[...***...]) for such Target pair. Payment for each such designated Target shall be made by GSK
within [...***...] following the expiry of [...***...] from the date of receipt of a corresponding Invoice from Zymeworks. Such GSK Targets shall be considered selected upon [...***...] that the Target is available with respect to
the designated Type of Product, Zymeworks’ receipt of the corresponding payment from GSK, and, if applicable, [...***...] that a particular Sequence Pair Directed To such Target(s) is available pursuant to Section 3.4.4. For clarity,
the foregoing payment shall not apply with respect to Targets that are substituted for an Initial GSK Target in accordance with Section 3.4.2(d) below. 

  
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 (d) Substitute Targets and Products. 

(i) At any time prior to the expiration of the Additional Selection Period, either Party may substitute any number of new Targets for one or
more of its GSK Targets (with respect to GSK) or Zymeworks Targets (with respect to Zymeworks) for any reason, provided the total number of GSK Targets does not exceed [...***...] and the total number of Zymeworks Targets does not exceed
[...***...]. Any such substituted Target shall be subject to the gatekeeping process described in Section 3.4.3 and Section 3.4.4, as applicable, and upon [...***...] that such substitute Target is available with
respect to the designated Type of Product (and, if applicable, [...***...] that the Sequence Pair from which [...***...] Directed To such Target(s) are to be derived is available), the Target for which such new Target is a substitute
shall cease to be a GSK Target or Zymeworks Target, as applicable. For clarity, each Target in a pair of Targets selected by a Party for purposes of developing [...***...] shall count as one Target toward the maximum number of Targets set
forth for such Party above. 
 (ii) At any time there is a GSK Target, a Zymeworks Target or a Third Party Target that subsequently ceases
to be, respectively, a GSK Target, a Zymeworks Target or a Third Party Target for any reason or with respect to any Type of Product, if such former GSK Target, Zymeworks Target or Third Party Target was a Target which was previously an Unavailable
Target for GSK or Zymeworks with respect to such Type of Product, the Parties shall [...***...] notify such event promptly to GSK (in respect of a former Zymeworks Target or Third Party Target) or Zymeworks (in respect of a former GSK Target
or Third Party Target) and such former Zymeworks Target, GSK Target or Third Party Target shall be released from the Reserved Targets List, in its entirety or with respect to such Type of Product, as applicable. 

(iii) Upon expiration of the Additional Selection Period, the GSK Targets and Zymeworks Targets shall remain fixed for the remainder of the
Term, and the Parties shall no longer have the right to substitute Targets. However, the Parties shall retain the right, on a Target-by-Target basis during the Term, to
change the Type of Products to be Directed To their respective Targets until initiation of [...***...]. By way of example only and without limiting the foregoing, after the Additional Selection Period, GSK could cease all development and
commercialization activities with respect to [...***...] and, subject to all applicable gatekeeping under Sections 3.4.3 and 3.4.4, substitute for such activities the development and commercialization of [...***...]. In such case,
[...***...]. In no event, however, shall (a) GSK develop or commercialize more than ten (10) GSK Products, which, for clarity, may include [...***...] derived from GSK Sequence Pairs if GSK selects GSK Sequence Pairs in
accordance with Section 3.4.4 but otherwise shall be limited to [...***...], or (b) Zymeworks develop or commercialize more than four (4) Zymeworks Products, in each case at any given time. Each Party shall promptly
[...***...] of any changes to the Type of Antibody or Type of Product that it is developing with respect to a particular Target or Targets. 

(e) Target Hierarchy and [...***...]. At any time when the Parties may continue to select Targets or Types of
Products hereunder, as applicable, and subject to all applicable gatekeeping under Section 3.4: 

  
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 (i) if GSK first selects, in sequence, a GSK Target for purposes of developing
[...***...] (including all Initial GSK Targets) or [...***...], then Zymeworks shall not then be permitted to reserve such Target as a Zymeworks Target, or a Third Party Product on behalf of a Third Party, in respect of Products
incorporating [...***...] or [...***...] unless and until such Target is released by GSK with respect to [...***...] and [...***...] pursuant to Section 3.4.2(d) (however, for clarity, Zymeworks shall have the right to
reserve such Target as a Zymeworks Target in respect of a Zymeworks Product, which is a [...***...] but not a [...***...]); 

(ii) if Zymeworks first selects, in sequence, whether for itself or on behalf of a Third Party, a Zymeworks Target for purposes of developing
Products incorporating [...***...] or a [...***...], then GSK shall not then be permitted to reserve such Target as a GSK Target in respect of [...***...] unless and until such Target is released by Zymeworks with respect to
Products incorporating [...***...] and [...***...] pursuant to Section 3.4.2(d) (however, for clarity, GSK shall have the right to reserve such Target as a GSK Target in respect of a [...***...]); 

(iii) if GSK first selects, in sequence, a GSK Target for purposes of developing a [...***...] Directed To [...***...], then
Zymeworks shall not then be permitted to reserve [...***...] as Zymeworks Targets in respect of Products incorporating [...***...] Directed To such [...***...], unless and until such [...***...] is released by GSK with
respect to such [...***...] pursuant to Section 3.4.2(d) (however, for clarity, Zymeworks shall have the right to reserve [...***...] as a Zymeworks Target in respect of Products incorporating [...***...] or Products incorporating
[...***...] Directed to a [...***...]); and 
 (iv) if Zymeworks first selects, in sequence, a Zymeworks Target for purposes of
developing a Product incorporating [...***...] Directed To [...***...], then GSK shall not then be permitted to reserve such Target as a GSK Target in respect of [...***...] Directed To such [...***...], unless and until such
[...***...] is released by Zymeworks with respect to Products incorporating such [...***...] pursuant to Section 3.4.2(d) (however, for clarity, GSK shall have the right to reserve such Target as a GSK Target in respect of
[...***...] or [...***...] Directed to a different [...***...]). 
 3.4.3 Target [...***...]. 

(a) GSK Targets. Each Target or [...***...] (with respect to Targets designated for the development of
[...***...]) designated by GSK and [...***...] in accordance with Section 3.4.2(a), (c) or (d) above shall be [...***...] as set forth below in this Section 3.4.3, and if such designated Target or [...***...] is/are
not an Unavailable Target with respect to the Type of Product designated by GSK for such Target(s) in accordance with such gatekeeping such Target(s) shall become a “GSK Target” with respect to such Type of Product; provided that a
Target or [...***...] designated by GSK for the development of [...***...] shall not become GSK Target(s) for such purposes unless and until such GSK Target(s) are determined to be available with respect to the Sequence Pair designated
by GSK pursuant to Section 3.4.4, and then such Target(s) shall be a GSK Target(s) solely with respect to [...***...] and [...***...] derived from such GSK Sequence Pair. For clarity, this Section 3.4.3(a) shall apply with respect
to changes in the Type of Antibody or Type of Product that GSK intends to develop made pursuant to Section 

  
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3.4.2(b)(iii) in addition to new Target designations. A Target or [...***...] designated by GSK in accordance with Section 3.4.2 above shall only be an “Unavailable
Target” if such Target is (or such [...***...]includes) [...***...]or, at the time GSK [...***...], (1) such Target(s) is/are already included on the Reserved Target List as a Zymeworks Target or a Third Party Target with
respect to the Type of Product that GSK designated in such submission; or (2) Zymeworks is: 
 (i) demonstrably contractually
obligated to grant pursuant to clearly identifiable and certain rights granted to a Third Party prior to the Effective Date, or has actually granted prior to the Effective Date, to a Third Party rights with respect to products Directed To such
Target; or 
 (ii) actively and in good faith engaged in bona fide negotiations with a Third Party regarding the development or
commercialization of Products Directed To such Target (as may be evidenced, among other things by [...***...]); provided that Zymeworks may designate, [...***...], for reservation on the Reserved Target List, on a Target-by-Target basis, no more than [...***...] Targets at any given time pursuant to this clause (ii) for up to [...***...] per Target and following such
[...***...] period, if such Target has not been confirmed for continuing reservation by Zymeworks on the Reserved Target List with [...***...], such Target shall be automatically deemed excluded from the Reserved Target List for a
minimum of [...***...]; and provided further, for clarity, that Zymeworks had [...***...] inclusion on the Reserved Target List. For clarity and without limiting clause (i) above, Targets that are subject to this clause
(ii) and subsequently become the subject of an executed agreement pursuant to which Zymeworks grants such Third Party rights with respect to the development or commercialization of Products Directed To such Targets shall remain on the Reserved
Target List pursuant to clause (1) above. 
 (b) Zymeworks Targets. Each Target or pair of Targets designated by
Zymeworks and [...***...] pursuant to Section 3.4.2(b)(i), (c) or (d) above shall be a “Zymeworks Target” with respect to the Type of Product designated by Zymeworks for such Target(s), unless, at the time Zymeworks
[...***...] such Target or pair of Targets is already included on the Reserved Target List as a GSK Target for such Type of Product. For clarity, this Section 3.4.3(b) shall apply with respect to changes in the Type of Antibody or Type of
Product that Zymeworks intends to develop made pursuant to Section 3.4.2(b)(iii) in addition to new Target designations. 
 (c)
Third Party Targets. Each Target designated by Zymeworks and [...***...] pursuant to Section 3.4.2(b)(ii) above for use with a Third Party shall be available, unless, at the time Zymeworks [...***...] such Target is already
included on the Reserved Target List as a GSK Target or a Zymeworks Target (each such available Target, a “Third Party Target”). 

(d) Notice of Availability. Within [...***...] of [...***...] of a Party’s written notice with respect
to each Target or pair of Targets that such Party proposes to select under Section 3.4.2, [...***...] with written notice if such proposed Target or pair of Targets is available or is unavailable for the designated Type of Product for any
of the reasons set forth in Section 3.4.3(a) or (b) above, as applicable, and the basis for any such unavailability. If any such Target or pair of Targets is determined to be unavailable in accordance with this Section 3.4.3,

  
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the Party that had proposed such Target may propose another Target(s) in place of such unavailable Target(s) (or, as applicable, another Type of Product for the same Target), subject to this
Section 3.4.3 and the process set forth herein. For clarity, [...***...] shall not disclose the identity of a Target or pair of Targets designated by one Party to the other Party when providing notice pursuant to this Section 3.4.3(d) and
shall, subject to Section 3.4.2(d)(ii), be required to maintain the confidentiality at all times of any such Target(s) proposed by a Party pursuant to this Section 3.4.3. Notwithstanding the foregoing, GSK shall disclose to Zymeworks in writing
the identity of each GSK Target or pair of GSK Targets prior to [...***...] a GSK Product Directed to such GSK Target or pair of GSK Targets. In the event that GSK does not disclose a GSK Target or [...***...] in accordance with the
foregoing sentence, Zymeworks shall have the right to [...***...] the identity of such GSK Target or [...***...]. 
 3.4.4
GSK Multi-Specific Sequence Pair [...***...]. 
 (a) GSK Multi-Specific Sequence Pair Designation. After the
Zymeworks Initial Selection Period, GSK may designate Sequence Pairs Directed To any previously selected GSK Target or [...***...]previously selected GSK Targets for the development of [...***...] by [...***...] in writing. In
addition, solely during the Additional Selection Period, GSK may designate Sequence Pairs Directed To [...***...] that include one GSK Target and one Zymeworks Target by [...***...] in writing. In each case, such [...***...] must
be determined to be available [...***...] pursuant to Section 3.4.3 with respect to GSK Multi-Specific Products prior to being submitted for Sequence Pair level gatekeeping [...***...] pursuant to this Section 3.4.4. Each
Sequence Pair so designated by GSK shall be subject to [...***...] as set forth below in this Section 3.4.4, and if such designated Sequence Pair is not an Unavailable Sequence Pair in accordance with such gatekeeping it shall become a
“GSK Sequence Pair.” A Sequence Pair that is designated by GSK in accordance with this Section 3.4.4 shall only be an “Unavailable Sequence Pair” if, at the time GSK [...***...], Zymeworks: 

(i) is contractually obligated to grant pursuant to clearly identifiable and certain rights granted to a Third Party, or has actually
granted, to a Third Party rights with respect to products incorporating such Sequence Pair, or exclusive rights with respect to products Directed To the [...***...] To which such Sequence Pair is Directed; 

(ii) is actively and in good faith engaged in bona fide negotiations with a Third Party regarding the development or commercialization of
products incorporating such Sequence Pair (as may be evidenced, among other things, [...***...]); 
 (iii) is actively performing
activities on its own behalf regarding the development or commercialization of products incorporating such Sequence Pair, which activities include, or have included, [...***...], and [...***...] that it has conducted such activities with
respect to products incorporating such Sequence Pair; 
 (iv) has [...***...] that the Zymeworks Targets comprising the
[...***...] that such Sequence Pair is Directed To is a [...***...] with respect to which Zymeworks intends to develop [...***...]. 

  
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 (b) Notice of Availability. Within [...***...] Business Days of
[...***...] written notice with respect to each Sequence Pair that GSK proposes to select under this Section 3.4.4, [...***...] with written notice if such proposed Sequence Pair is available or is unavailable for any of the reasons
set forth in Section 3.4.4(a) above, and the basis for any such unavailability. For clarity, [...***...] shall not disclose the identity of a Sequence Pair designated by GSK when providing notice pursuant to this Section 3.4.4(b) and shall be
required to maintain the confidentiality of any such Sequence Pairs proposed by GSK as Confidential Information of GSK pursuant to this Section 3.4.4(b). Notwithstanding the foregoing, GSK shall disclose to Zymeworks in writing the identity of each
GSK Sequence Pair upon the [...***...] of a GSK Product, the active ingredient of which is a [...***...] derived and generated from such GSK Sequence Pair. In the event that GSK does not disclose a GSK Sequence Pair in accordance with
the foregoing sentence, Zymeworks shall have the right to [...***...], to Zymeworks the identity of such GSK Sequence Pair. 

3.4.5 Scope of GSK Targets and Zymeworks Targets. Notwithstanding anything herein to the contrary, in the event that, in accordance
with this Section 3.4, a single Target becomes a GSK Target with respect to certain Types of Products and a Zymeworks Target with respect to other Types of Products, the term GSK Target as used throughout this Agreement (including, without
limitation, for purposes of the licenses granted pursuant to Article 2 and the exclusivities set forth in Section 3.7) shall be limited to such Target with respect to the Types of Products to which GSK is granted rights hereunder, and the
Zymeworks Targets as used throughout this Agreement shall be limited to such Target with respect to the Types of Products to which Zymeworks is granted rights hereunder. Accordingly, in such circumstances, GSK Products or Zymeworks Products, as
applicable, shall be limited to the Type of Product to which such Party has rights with respect to such Target. 
 3.5 Development and
Commercialization of GSK Products. GSK (itself or through its Affiliates or Third Parties) shall have the exclusive right (even as to Zymeworks and its Affiliates) to further research, develop, manufacture and commercialize GSK
Products upon the conclusion of the Research Collaboration subject to Article 10. GSK shall use Commercially Reasonable Efforts to research and develop [...***...] GSK Antibody Directed To the GSK Targets and to commercialize
[...***...]. GSK shall provide Zymeworks with written reports summarizing the then-current development and commercialization status of each Product in such detail as is reasonably necessary for Zymeworks to estimate timing for the payments
owed pursuant to Article 5, [...***...]. 
 3.6 Development and Commercialization of Zymeworks Products. Zymeworks
(itself or through its Affiliates or Third Parties) shall have the exclusive right (even as to GSK and its Affiliates) to further research, develop, manufacture and commercialize any Zymeworks Products or, subject to any exclusivity granted to GSK
in accordance with Section 3.7, other Products that are not GSK Products upon the conclusion of the Research Collaboration. 

  
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 3.7 Exclusivity. 

3.7.1 Zymeworks Modification Exclusivities. Subject to Section 3.7.3, (a) Zymeworks shall not, and shall not grant rights
to any Person to, at any time during the Term for a GSK Product (i) develop or commercialize any antibody or product incorporating a Zymeworks Modification that is [...***...], or (ii) grant to any Third Party any rights or license
under the Zymeworks Project Arising IP to, develop or commercialize any antibody or product incorporating a [...***...]; and (b) GSK shall not, and shall not grant rights to any Person to, at any time during the Term (i) develop or
commercialize any antibody or product incorporating a Zymeworks Modification [...***...] or (ii) grant to any Third Party any rights or license under the GSK Project Arising IP to develop or commercialize any antibody or product
incorporating a [...***...]. For clarity, in the event that [...***...], nothing in this Section 3.7.1 shall prevent either Party from developing and commercializing, itself or with or through any Affiliate or Third Party,
Antibodies and Products Directed To such Target within the scope of its rights hereunder. 
 3.7.2 [...***...]. In addition,
Zymeworks shall not grant any Third Party any rights or licenses under the [...***...]; provided that the foregoing exclusivity shall be subject to [...***...]. For purposes of the foregoing, the “Exclusivity Period”
means each of up to [...***...] periods beginning on the [...***...] (“Year 1”) and each anniversary [...***...] (each of “Year 2”, “Year 3”, “Year 4”, and
“Year 5” below) for which GSK has paid the following amounts per year (each, an “Exclusivity Payment”): 

Year 1 : $[...***...] 

Year 2 : $[...***...] 

Year 3 : $[...***...] 

Year 4 : $[...***...] 

Year 5 : $[...***...] 

GSK shall notify Zymeworks of its decision whether or not to exercise its exclusivity option prior to [...***...] (with respect to Year
1) in accordance with this Agreement (including Section 3.1.2), which expiration shall be confirmed by the Joint Project Team upon GSK’s request, and not less than [...***...] prior to the expiration of the prior Year (with respect
to each subsequent Year). [...***...]. For clarity, [...***...]; provided, for clarity, [...***...]. If GSK has paid the Exclusivity Payment for each of Years 1-5 and requests an extension of
the Exclusivity Period beyond the five (5) years set forth above, the Parties shall discuss, in good faith, the terms on which Zymeworks would, in its sole discretion, make such an extension available to GSK, at that time. For purposes of the
foregoing each of Year 1, Year 2, Year 3, Year 4 and Year 5 may be referred to as a “Year”. Payment for each Year of exclusivity shall be made by GSK within the [...***...] from the date of receipt of a corresponding
Invoice from Zymeworks. 
 3.7.3 Limitations. For clarity, nothing in this Agreement, including this Section 3.7, shall
prevent Zymeworks or GSK from developing or commercializing, or granting rights with respect to the development or commercialization of, any antibody, antibody-like molecule or product incorporating the same, in each case which do not include any
Zymeworks Modifications. Any such rights shall not be deemed to be inconsistent with the licenses granted under Arising Project IP or the exclusivities as set out herein. Further, the exclusivities set forth in this Section 3.7 shall not apply
with respect to any antibodies or products being developed or 

  
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commercialized by an Acquiring Entity at the time such acquisition closes or thereafter without accessing or practicing the Project Arising IP. 

4. GOVERNANCE 
 4.1
Joint Project Team. The Parties shall establish, as soon as practicable after the Effective Date, a Joint Project Team (the “JPT”) to oversee and coordinate the activities of the Parties under the Research Collaboration.
The JPT shall be comprised of two (2) employees from GSK and two (2) employees from Zymeworks. Subject to the foregoing, each Party may appoint its respective representatives to the JPT, and may change its representatives, in its sole
discretion, in each case effective upon notice to the other Party. Representatives from each Party shall have appropriate technical credentials, experience and knowledge pertaining to and ongoing familiarity with the Research Collaboration. One
(1) of the members of the JPT appointed by GSK shall be designated the JPT Chair. The JPT Chair shall be responsible for calling meetings of the JPT, circulating agenda and performing administrative tasks required to assure efficient operation
of the JPT. The JPT shall be promptly disbanded upon completion of the Research Collaboration. 
 4.2 JPT Meetings. The JPT
shall meet in accordance with a schedule established by mutual written agreement of the Parties no less frequently than once every [...***...] until expiration of the Research Collaboration Term. The location for meetings shall alternate
between Zymeworks and GSK facilities (or such other location as is determined by the JPT). Alternatively, the JPT may meet by means of teleconference, videoconference or other similar means. As appropriate, additional employees or consultants of
each Party may from time to time attend the JPT meetings as nonvoting observers, provided that any such consultant shall agree in writing to comply with the confidentiality obligations under this Agreement; and provided further that no
Third Party personnel (other than consultants of each Party) may attend unless otherwise agreed by both Parties. Each Party shall bear its own expenses related to the attendance of the JPT meetings by its representatives and nonvoting observers.
Each Party may also call for special meetings to resolve particular matters requested by such Party upon not less than [...***...] prior written notice to the other Party’s JPT representatives. The JPT Chair or his/her designee shall keep
minutes of each JPT meeting that records in writing all decisions made, action items assigned or completed and other appropriate matters. The JPT Chair shall send meeting minutes to all members of the JPT promptly after a meeting for review. Each
member shall have [...***...] from receipt in which to comment on and to approve/provide comments to the minutes (such approval not to be unreasonably withheld, conditioned or delayed). If a member, within such time period, does not notify GSK
that s/he does not approve of the minutes, the minutes shall be deemed to have been approved by such member. The JPT shall disband upon expiration of the Research Collaboration Term. 

4.3 JPT Functions. The JPT’s responsibilities with respect to the Research Collaboration are as follows: 

  
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 (a) Overseeing and coordinating the activities of the Parties under the Research
Collaboration; 
 (b) Facilitating the exchange of Know-How and materials as required
hereunder; 
 (c) Periodically reviewing the progress and results and data of the Research Collaboration; 

(d) Updating or modifying the Research Collaboration Plan for approval by the Parties; 

(e) Determining whether to update the Research Collaboration Plan or terminate this Agreement in the event of failure to achieve a
Gate; 
 (f) Completing such other responsibilities as are assigned to the JPT upon mutual written agreement of the Parties; and

 (g) Discussing Joint Inventions and Joint Patents in consultation with qualified patent attorneys representing each Party,
including without limitation, responsibility for drafting, filing, prosecution and enforcement. 
 4.4 JPT Disputes. The JPT
shall make decisions by consensus, with each of GSK and Zymeworks having one vote. If consensus is not reached by the Parties’ representatives pursuant to such vote, then the matter may be escalated by either Party to designated officers of
both GSK and Zymeworks with appropriate decision-making authority for resolution in accordance with Section 14.5. In the event the designated officers are unable to resolve the issue within [...***...], GSK shall have the right to make
the final decision with respect to such dispute, provided that GSK shall not have the right to unilaterally revise the Research Collaboration Plan or to obligate Zymeworks to perform any task or expend any resources outside of or beyond its express
obligations in the Research Collaboration Plan or under this Agreement. For clarity and notwithstanding the creation of the JPT, each Party shall retain the rights, powers and discretion granted to it hereunder, and the JPT shall not be delegated or
vested with such rights, powers or discretion unless such delegation or vesting is expressly provided herein, or the Parties expressly so agree in writing. The JPT shall not have the power to amend, waive or modify any term of this Agreement, and no
decision of the JPT shall be in contravention of any terms and conditions of this Agreement. It is understood and agreed that issues to be formally decided by the JPT are limited to those specific issues that are expressly provided in this Agreement
to be decided by the JPT. 
 4.5 Failure to Achieve a Gate. In the event that the Parties fail to achieve a Gate, the JPT
shall promptly meet to make a determination as to whether to (i) revise the Research Collaboration Plan to allow the Parties to proceed with the Research Collaboration and present such plan to the Parties for approval or (ii) recommend
that the Parties terminate the Agreement. If, in such case, the Parties fail to agree 

  
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with respect to an appropriate revision to the Research Collaboration Plan within [...***...] of the JPT meeting to make the determination described in the foregoing sentence, or the
Parties otherwise agree in writing that this Agreement shall be terminated, this Agreement shall terminate. For clarity, decisions regarding whether to proceed in the event of a failure to achieve a Gate shall require mutual agreement by the Parties
and shall not be subject to GSK’s final decision-making authority. 
 4.6 Alliance Managers. Promptly after the Effective
Date, each Party shall appoint an individual to act as alliance manager during the Term for such Party (each, an “Alliance Manager”). The Alliance Managers shall be the primary point of contact for all business development and/or
contract related communications between the Parties for all matters in connection with this Agreement and in particular matters related to clauses 3.4 and 3.7, outside the purview of the technical matters for which the Joint Project Team is
responsible. The Alliance Managers shall be responsible for facilitating communications between the Parties regarding any finance, legal and business issues that may arise during the Term of the Agreement. 

5. FINANCIAL PROVISIONS 

5.1 Expenses. Zymeworks and GSK shall each bear all expenses it incurs in performance under this Agreement, except as expressly
set forth in this Agreement. 
 5.2 Development Milestones. Within [...***...] of receipt of an Invoice following after
the [...***...]of each milestone event set forth in the table below for each applicable GSK Product (each, a “Development Milestone Event”), GSK shall make the corresponding milestone payment to Zymeworks (each, a
“Development Milestone Payment”). For clarity, each Development Milestone Payment shall be payable [...***...] GSK Products to achieve such Development Milestone Event, regardless of how many times such Development
Milestone Event occurs for such GSK Product. 
  

					
	 Development Milestone Event
	  	Development
Milestone Payment
GSK Products 
[...***...]	 
	 [...***...]
	  	$	[...***...]	 
	 [...***...]
	  	$	[...***...]	 
	 [...***...]
	  	$	[...***...]	 
	 [...***...]
	  	$	[...***...]	 

  
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 5.3 Commercialization Milestones. Within [...***...] of receipt of an Invoice
following the [...***...] of each milestone event set forth in the table below for each GSK Product (each, a “Commercialization Milestone Event”), GSK shall make the corresponding milestone payment to Zymeworks (each, a
“Commercialization Milestone Payment”): 
  

					
	 First time Annual Net Sales of such GSK Product achieve the following
thresholds
	  	Commercialization
Milestone Payment	 
	 $[...***...]
	  	$	[...***...]	 
	 $[...***...]
	  	$	[...***...]	 
	 $[...***...]
	  	$	[...***...]	 
	 $[...***...]
	  	$	[...***...]	 

 For clarity, each of the foregoing Commercialization Milestone Payments shall [...***...]. 

5.4 Royalties. 

5.4.1 Patent Royalty Payments. On a [...***...], GSK shall pay Zymeworks a royalty (the “Royalty”) on Net
Sales of each GSK Product at the rates set forth below: 
  

					
	 Annual Net Sales on a GSK Product-by-GSK Product basis
	  	Royalty Rate
(as a percentage
of Net Sales)	 
	 $[...***...] to $[...***...]
	  	 	[...***...]	% 
	 Above $[...***...] to $[...***...]
	  	 	[...***...]	% 
	 Above $[...***...]
	  	 	[...***...]	% 

 5.4.2 Royalty Term. The Royalty shall be payable on a GSK Product-by-GSK Product and country-by-country basis from First Commercial Sale in such country until (i) such GSK Product
is no longer Covered by a Valid Claim in such country or (ii) ten (10) years after the First Commercial Sale of such GSK Product in such country, whichever is later (the “Royalty Term”). Upon the expiration of the last Valid
Claim that Covers a GSK Product in a country, the Royalties set forth above with respect to such GSK Product in such country shall continue as a royalty paid in consideration for the value of the rights and licenses granted hereunder to GSK with
respect to the Know-How within the Zymeworks Project Arising IP, but 

  
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shall be reduced by [...***...]percent ([...***...]%) for the remainder of the Royalty Term. Notwithstanding anything herein to the contrary, in no event shall the Royalties owed
during the Royalty Term be reduced by more than [...***...]([...***...]%) from the percentages set forth above (i.e., to [...***...]%, [...***...]%, and [...***...]%, respectively), regardless of whether multiple
reductions set forth in this Agreement apply. 
 6. REPORTS AND PAYMENT TERMS 

6.1 Payment Terms. 

6.1.1 Milestone Payments. GSK shall notify Zymeworks in writing of the achievement of a Development Milestone Event or
Commercialization Milestone Event within [...***...] of its achievement, and Zymeworks shall issue an Invoice to GSK for the corresponding Development Milestone Payment or Commercial Milestone Payment. Each Milestone Payment shall be made by
GSK within [...***...]. 
 6.1.2 Royalties. During the Term, following the First Commercial Sale of a GSK Product, GSK
shall furnish to Zymeworks a written report for each Calendar Quarter showing the Net Sales by GSK Product sold during such Calendar Quarter and the Royalties payable under this Agreement on a Product-by-Product basis, and the Royalties (in US dollars) payable in total for all GSK Products in accordance with Section 6.2, in each case in reasonable detail to allow Zymeworks to verify that the
amount of Royalties paid by GSK with respect to such Calendar Quarter is correct. Reports shall be due no later than [...***...]. Royalties shown to have accrued by each report provided under this Section 6.1.2 shall be due and payable on
the date such report is due. 
 6.2 Payment Currency / Exchange Rate / Interest. All payments to be made by GSK
to Zymeworks under this Agreement shall be made in USD. Payments to Zymeworks shall be made by electronic wire transfer of immediately available funds to the account of Zymeworks, as designated in writing to GSK. If any currency conversion is
required in connection with the calculation of amounts payable hereunder, such conversion shall be made in a manner consistent with GSK’s normal practices used to prepare its audited financial statements for external reporting purposes;
provided that such practices use a widely accepted source of published exchange rates. If GSK shall fail to make a timely payment pursuant to this Agreement, any such payment shall bear interest at the average
one-month London Inter-Bank Offering Rate (LIBOR) as reported on the day such payment was due in The Wall Street Journal (U.S. Internet version at www.wsj.com under the “Market Data”
tab), plus three percent (3%) annually. 
 6.3 Taxes. Each Party shall be responsible for its own tax liabilities arising
under this Agreement. Subject to this Section 6.3, Zymeworks shall be liable for all income and other taxes (including interest) (“Taxes”) imposed upon Zymeworks with respect to any payments made by GSK to Zymeworks under this
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withholding of Taxes, GSK shall make such withholding payments in a timely manner and shall subtract the amount thereof from the Agreement Payments. GSK shall promptly (as available) submit to
Zymeworks appropriate proof of payment of the withheld Taxes as well as the official receipts within a reasonable period of time. GSK shall provide Zymeworks reasonable assistance in order to allow Zymeworks to obtain the benefit of any
present or future treaty against double taxation or refund or reduction in Taxes which may apply to the Agreement Payments. Notwithstanding the foregoing, if as a result of a Party assigning this Agreement or changing its domicile additional Taxes
become due that would not have otherwise been due hereunder with respect to Agreement Payments, such Party shall be responsible for all such additional Taxes. 

6.4 Records and Audit Rights. 

6.4.1 Records. GSK shall keep (and shall cause each Selling Party to keep) complete, true and accurate books and records in
sufficient detail for Zymeworks to determine payments due to Zymeworks under this Agreement, including Royalties. GSK shall keep (and shall cause each Selling Party to keep) such books and records for at least [...***...] following the end of
the Calendar Year to which they pertain. 
 6.4.2 Audit Rights. Zymeworks shall have the right during the
[...***...]period described in Section 6.4.1 to appoint at its expense an independent certified public accountant of nationally recognized standing (the “Accounting Firm”) to inspect or audit the relevant records of GSK and each
Selling Party to verify that the amount of such payments were correctly determined. GSK shall make, and shall cause each Selling Party to make, their respective records available for inspection or audit by the Accounting Firm during regular business
hours at such place or places where such records are customarily kept, upon at least [...***...] notice from Zymeworks, solely to verify the payments hereunder were correctly determined. Such inspection or audit right shall not be exercised by
Zymeworks more than once in any Calendar Year. All records made available for inspection or audit shall be deemed to be Confidential Information of GSK. The results of each inspection or audit, if any, shall be binding on both Parties. Zymeworks
shall bare full cost of any audit conducted unless the audit reveals an error of greater than [...***...]per cent ([...***...]%), in which case GSK will pay. If the Accounting Firm determines through such audit or inspection additional
royalties are payable then such amounts (together with interest as required in Section 6.2) shall be paid by GSK within [...***...]; and if the Accounting Firm determines through such audit or inspection excess royalties are refundable
then such amount will be deducted from future royalty payments; however if future royalty payments are unlikely to be sufficient, then Zymeworks shall pay such amounts within [...***...] of the Parties agreeing to the amount. 

7. INTELLECTUAL PROPERTY RIGHTS 

7.1 Ownership of Inventions. Ownership of all Project Arising IP shall be as set forth in this Article 7. Determination of
inventorship of Project Arising IP shall be made in accordance with US laws. Each Party 

  
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shall continue to own any Patent Rights and Know-How that it owned prior to the Effective Date or created or obtained outside the scope of this Agreement,
or which it licenses to the other Party under this Agreement. Notwithstanding anything in this Section 7.1 to the contrary, Zymeworks shall retain all rights in the Zymeworks Technology, the Zymeworks Background Technology and any Project
Arising IP comprising improvements thereto (“Improvements”). For clarity, all antibody mutations created in the conduct of the Research Collaboration, including the Zymeworks Modifications and the Zymeworks Modified Scaffolds, shall
comprise Improvements and shall be owned by Zymeworks. Except as otherwise provided in the foregoing sentence, Inventions within the Project Arising IP that are made solely by Zymeworks or its Affiliates or subcontractors (such Project Arising IP
and any and all Improvements, the “Zymeworks Inventions”), and all Intellectual Property rights in and to the Zymeworks Inventions, including the Patent Rights claiming them (such Patent Rights, including Patent Rights claiming
Improvements, the “Zymeworks Project Patent Rights”)) shall be owned solely by Zymeworks. Other than any such Inventions comprising Improvements, Inventions within the Project Arising IP that are made solely by GSK or its Affiliates
or subcontractors (“GSK Inventions”) and all Intellectual Property rights therein, including the Patent Rights claiming them (the “GSK Project Patent Rights”) shall be owned solely by GSK. Other than any such
Inventions comprising Improvements, Joint Inventions (and the Joint Patent Rights) shall be owned jointly by the Parties. Subject to Article 2 and Article 11, each Party has the right to grant licenses under and otherwise exploit its interest in
such Joint Inventions (and the Joint Patent Rights) to any Third Party without the consent of, or accounting to, the other Party. 

7.2 Patent Prosecution and Maintenance. 

7.2.1 Definitions. As used in this Section 7.2, “prosecution” includes (a) all communication and
other interaction with any patent office or patent authority having jurisdiction over a patent application in connection with pre-grant proceedings and (b) interferences, reexaminations, reissues,
oppositions, and the like. 
 7.2.2 Zymeworks Project Patent Rights. Zymeworks, at Zymeworks’ expense, shall have the
sole right to control the preparation, filing, prosecution and maintenance of Zymeworks Project Patent Rights using patent counsel of Zymeworks’ choice. Zymeworks shall keep GSK reasonably advised with respect to the status of the filing,
prosecution and maintenance of the Zymeworks Project Patent Rights and, upon GSK’s request, shall provide copies of material submissions to any patent office related to the filing, prosecution and maintenance of the Zymeworks Project Patent
Rights. Zymeworks shall promptly give notice to GSK of the grant, lapse, revocation, surrender, invalidation or abandonment of any Zymeworks Project Patent Rights licensed to GSK under this Agreement. 

7.2.3 GSK Project Patent Rights. GSK, at GSK’s expense, shall have the sole right to control the preparation, filing,
prosecution and maintenance of GSK Project Patent Rights, including, for clarity, all decisions relating to Patent listing and Patent term extensions (including supplementary protection certificates) using patent counsel of GSK’s choice. GSK
shall keep Zymeworks reasonably advised with respect to the status of the filing, prosecution and maintenance of the GSK Project Patent Rights and, upon Zymeworks’ request, shall provide 

  
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copies of material submissions to any patent office related to the filing, prosecution and maintenance of the GSK Project Patent Rights. GSK shall promptly give notice to Zymeworks of the grant,
lapse, revocation, surrender, invalidation or abandonment of any GSK Project Patent Rights licensed to Zymeworks under this Agreement. 

7.2.4 Joint Patent Rights. 

(a) GSK, at GSK’s expense, shall have the first right to control the preparation, filing, prosecution and maintenance of Joint
Patent Rights (including, for clarity, all decisions relating to Patent listing and Patent term extensions (including supplementary protection certificates) using patent counsel reasonably acceptable to Zymeworks. GSK shall keep Zymeworks reasonably
advised with respect to the status of the filing, prosecution and maintenance of the Joint Patent Rights (including, for clarity, all decisions relating to Patent listing and Patent term extensions (including supplementary protection certificates))
and shall provide advance copies of material submissions to any patent office related to the filing, prosecution and maintenance of the Joint Patent Rights to Zymeworks for review and comment. GSK shall take into consideration any comments from
Zymeworks. GSK shall promptly give notice to Zymeworks of the grant, lapse, revocation, surrender, invalidation or abandonment of any Joint Patent Rights. 

(b) GSK may elect not to file or to cease prosecution or maintenance of Joint Patent Rights on a country-by-country basis, and if it does so, GSK shall give timely notice to Zymeworks. Upon receipt of such notice from GSK, Zymeworks may elect to assume prosecution or maintenance of such Joint Patent
Rights at Zymeworks’ expense, in which case GSK shall promptly assign to Zymeworks all of its rights, title and interest in and to such Joint Patents. For clarity, upon such assignment by GSK of its interest in such Joint Patent Rights, such
assigned Patent Rights shall immediately become Zymeworks Patent Rights for all purposes under this Agreement. 
 7.2.5 Cooperation in
Prosecution. Each Party shall provide the other Party all reasonable assistance and cooperation in the patent prosecution efforts provided above in Section 7.2, including providing any necessary powers of attorney and assignments of
employees of the Parties and their Affiliates and sublicensees and Third Party contractors and executing any other required documents or instruments for such prosecution. All communications between the Parties relating to the preparation, filing,
prosecution or maintenance of the Zymeworks Project Patent Rights, GSK Project Patent Rights and Joint Patent Rights, 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 Patent Rights, shall be considered Confidential Information, subject to Article 8. For clarity, all such communications regarding the Zymeworks Project Patent Rights shall be the Confidential Information of
Zymeworks; all such communications regarding the GSK Project Patent Rights shall be the Confidential Information of GSK; and all such communications regarding Joint Patent Rights shall be the Confidential Information of both Parties. 

  
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 7.3 Enforcement and Defense. 

7.3.1 Notice. Each Party shall provide prompt notice to the other Party of any infringement of Zymeworks Project Patent Rights,
the GSK Project Patent Rights or Joint Patent Rights which cover a Product then under development or being commercialized of which such Party becomes aware (an “Infringement”). GSK and Zymeworks shall thereafter consult and
cooperate fully to determine a course of action, including but not limited to the commencement of legal action by either or both GSK and Zymeworks, to terminate any such Infringement of a Zymeworks Project Patent Right, GSK Project Patent Rights or
Joint Patent Right. In the event that either Party becomes aware of any Patent Rights of any Third Party which it believes Covers the Zymeworks Modifications or Zymeworks Modified Scaffolds as used in the activities of the Parties under this
Agreement, GSK and Zymeworks shall thereafter consult and cooperate to determine a course of action to obtain freedom to operate under such Third Party Patent Rights with respect to the Parties’ use of Zymeworks Modifications or Zymeworks
Modified Scaffolds hereunder, which may include, but not be limited to, the commencement of legal action by either or both GSK and Zymeworks, to challenge the validity of any such Patent Rights of any Third Party. 

7.3.2 Zymeworks Project Patent Rights. Zymeworks shall have the first right to enforce the Zymeworks Project Patent Rights with
respect to any Infringement, and to defend any declaratory judgment action with respect thereto, at its own expense and by counsel of its own choice and in the name of Zymeworks and shall notify GSK of such enforcement actions. If Zymeworks fails to
bring or defend any such action against an Infringement by a Product Directed To a GSK Target within (a) [...***...] following the notice of alleged Infringement or (b) [...***...] before the time limit, if any, set forth in Applicable
Laws for the filing of such actions, whichever comes first, GSK shall have the right to bring and control any such action at its own expense and by counsel of its own choice, and Zymeworks shall have the right, at its own expense, to be represented
in any such action by counsel of its own choice. In no event shall GSK admit the invalidity of, in exercising its rights under this Section 7.3.2, any Zymeworks Project Patent Rights without Zymeworks’ prior written consent, which shall
not be unreasonably withheld, conditioned or delayed. 
 7.3.3 GSK Project Patent Rights. GSK shall have the first right to
enforce the GSK Project Patent Rights with respect to any Infringement, and to defend any declaratory judgment action with respect thereto, at its own expense and by counsel of its own choice and in the name of GSK and shall notify Zymeworks of such
enforcement actions. If GSK fails to bring or defend any such action against an Infringement by a product Directed To any Target other than a GSK Target within (a) [...***...] following the notice of alleged Infringement or (b)
[...***...] before the time limit, if any, set forth in Applicable Laws for the filing of such actions, whichever comes first, Zymeworks shall have the right to bring and control any such action at its own expense and by counsel of its own
choice, and GSK shall have the right, at its own expense, to be represented in any such action by counsel of its own choice. In no event shall Zymeworks admit the invalidity of, in exercising its rights under this Section 7.3.2, any GSK Project
Patent Rights without GSK’s prior written consent, which shall not be unreasonably withheld, conditioned or delayed. 
 7.3.4
Joint Patent Rights. GSK shall have the first right to enforce Joint Patent Rights and to control the defense of any declaratory judgment action relating thereto, with respect to such Infringement at its own expense and by counsel of its
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acceptable to Zymeworks (such acceptance which shall not be unreasonably withheld, conditioned or delayed), and Zymeworks shall have the right, at its own expense, to be represented in any such
action by counsel of its own choice. If GSK fails to bring or defend such action within (a) [...***...] following the notice of alleged Infringement or (b) [...***...] before the time limit, if any, set forth in the Applicable Laws for
the filing of such actions, whichever comes first, Zymeworks shall have the right to bring and control any such action at its own expense and by counsel of its own choice, and GSK shall have the right, at its own expense, to be represented in any
such action by counsel of its own choice. In no event shall either Party admit the invalidity of, or after exercising its right to bring and control an action under this Section 7.3.4, fail to defend the validity of any Joint Patent Rights
without the other Party’s prior written consent. 
 7.3.5 Infringement Action. In the event a Party brings an
Infringement action in accordance with this Section 7.3 (the “Controlling Party”), such Controlling Party shall keep the other Party reasonably informed of the progress of any such action, and the other Party shall cooperate
fully with the Controlling Party, including by providing information and materials, at the Controlling Party’s request and expense and if required to bring such action, the furnishing of a power of attorney or being named as a party. The other
Party shall cooperate fully, including, if required to bring such action, the furnishing of a power of attorney or being named as a party. Neither Party shall have the right to settle any Infringement action under this Section 7.3 relating to
Joint Patent Rights without the prior written consent of the other Party, which shall not be unreasonably withheld, conditioned or delayed. 

7.3.6 Recovery. Except as otherwise agreed by the Parties as part of a cost-sharing arrangement, any recovery obtained by either
or both GSK and Zymeworks in connection with or as a result of any action contemplated by this Section 7.3, whether by settlement or otherwise, shall be shared in order as follows: 

(a) the Party which initiated and prosecuted the action shall recoup all of its costs and expenses incurred in connection with the
action; 
 (b) the other Party shall then, to the extent possible, recover its costs and expenses incurred in connection with the
action; and 
 (c) the portion of any recovery remaining related to the Products hereunder shall be shared by the Parties
[...***...] in favor of the Controlling Party. 
 7.3.7 Certification. Each Party shall inform the other Party of any
certification regarding any Zymeworks Project Patent Rights, GSK Project Patent Rights or Joint Patent Rights it has received pursuant to either 21 U.S.C. §§355(b)(2)(A)(iv) or (j)(2)(A)(vii)(IV) or its successor provisions, or any similar
provisions in a country in the Territory other than the United States, and shall provide the other Party with a copy of such certification within [...***...] of receipt. Zymeworks’ and GSK’s rights with respect to the initiation and
prosecution of any legal action as a result of such certification or any recovery obtained as a result of such legal action shall be as defined in Section 7.3.2 through Section 7.3.6 hereof. Regardless of which Party has the right to
initiate and prosecute such action, both Parties shall, as soon as practicable after receiving notice of such certification, convene and consult with each other regarding the 

  
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appropriate course of conduct for such action. The non-initiating Party shall have the right to be kept reasonably informed and participate in decisions
regarding the appropriate course of conduct for such action. 
 7.3.8 Enforcement of Zymeworks Patent Rights. Notwithstanding
anything in this Section 7.3 to the contrary, Zymeworks shall have the sole right to enforce the Zymeworks Patents Rights other than the Zymeworks Project Patent Rights and shall retain all recoveries resulting from such enforcement. 

7.3.9 Defense of Infringement Claims. In the event that a claim is brought against either Party alleging the infringement,
violation or misappropriation of any Third Party Intellectual Property right based on the manufacture, use, sale or importation of the Products based on the inclusion of a Zymeworks Modification or Zymeworks Modified Scaffold, the Parties shall
promptly meet to discuss the defense of such claim, and the Parties shall enter into a joint defense agreement with respect to the common interest privilege protecting communications regarding such claim in a form reasonably acceptable to the
Parties. 
 7.3.10 Trademarks. GSK shall be responsible for the selection of all trademarks which it employs in connection
with any GSK Product; and Zymeworks shall be responsible for the selection of all trademarks it employs in connection with any Zymeworks Product in the Territory and each respective Party shall own and control such respective trademarks. GSK shall
be responsible for registration and maintenance of all trademarks it owns in respect of any GSK Product and Zymeworks shall be responsible for registration and maintenance of all trademarks it owns in respect of any Zymeworks Product. Nothing in
this Agreement shall be construed as a grant of rights, by licence or otherwise, by one Party to the other Party to use such trademarks or any other trademarks owned by GSK (in the case of any GSK Product) or Zymeworks (in the case of any Zymeworks
Product) for any purpose. Each Party shall own such trademarks and shall retain such ownership upon termination or expiration of this Agreement. For clarity, trademark selection, registration and maintenance pursuant to this Section 7.3.10 may
be done in the responsible party’s sole discretion, and this Section 7.3.10 does not create any obligation of one Party to the other with respect thereto. 

7.3.11 Pharmacovigilance. GSK shall be responsible for the timely reporting of product quality complaints, adverse events and
product safety data related to any GSK Product to the appropriate Regulatory Authority or other applicable health authorities. Zymeworks shall be responsible for the timely reporting of product quality complaints, adverse events and product safety
data related to any Zymeworks Product to the appropriate Regulatory Authority or other applicable health authorities. For clarity, reporting pursuant to this Section 7.3.10 may be done in the responsible party’s sole discretion, and this
Section 7.3.11 does not create any obligation of one Party to the other with respect thereto. 
 7.3.12 Ownership of Regulatory
Filings. GSK shall own and maintain all regulatory filings related to all GSK Products filed pursuant to this Agreement, including all INDs. As between the Parties, Zymeworks shall own and maintain all regulatory filings related to all
Zymeworks Products pursuant to this Agreement, including all INDs. 

  
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 8. CONFIDENTIALITY 

8.1 Duty of Confidence. During the Term and for [...***...] thereafter, all Confidential Information disclosed by one
Party to the other Party hereunder shall be maintained in confidence by the receiving Party and shall not be disclosed to any Third Party or used for any purpose, except as set forth herein, without the prior written consent of the disclosing Party.
The recipient Party may only use Confidential Information of the other Party for purposes of exercising its rights and fulfilling its obligations under this Agreement and may disclose Confidential Information of the other Party and its Affiliates to
employees, agents, contractors, consultants and advisers of the recipient Party and its Affiliates, licensees and sublicensees to the extent reasonably necessary for such purposes; provided that such persons and entities are bound by confidentiality
and non-use of the Confidential Information consistent with the confidentiality provisions of this Agreement as they apply to the recipient Party. All Confidential Information disclosed by the Parties pursuant
to that certain Confidential Disclosure Agreement, dated [...***...] and subsequently amended on [...***...] (the “CDA”) shall be deemed to have been disclosed pursuant to this Agreement and shall be subject to the
protections of this Article 8. The CDA shall remain in force with respect to ongoing business negotiations between the Parties in accordance with its terms. 

8.2 Exceptions. The obligations under this Article 8 shall not apply to any information to the extent the recipient Party can
demonstrate by competent evidence that such information: 
 8.2.1 is (at the time of disclosure) or becomes (after the time of
disclosure) known to the public or part of the public domain through no breach of this Agreement by the recipient Party or its Affiliates; 

8.2.2 was known to, or was otherwise in the possession of, the recipient Party or its Affiliates prior to the time of disclosure by the
disclosing Party; 
 8.2.3 is disclosed to the recipient Party or an Affiliate on a
non-confidential basis by a Third Party that is entitled to disclose it without breaching any confidentiality obligation to the disclosing Party or any of its Affiliates; or 

8.2.4 is independently developed by or on behalf of the recipient Party or its Affiliates, as evidenced by its written records, without
use of or reference to the Confidential Information disclosed by the disclosing Party or its Affiliates under this Agreement. 
 8.3
Authorized Disclosures. Subject to this Section 8.3, the recipient Party may disclose Confidential Information belonging to the other Party to the extent permitted as follows: 

8.3.1 to such Party’s attorneys, independent accountants or financial advisors for the sole purpose of enabling such attorneys,
independent accountants or financial advisors to provide advice to the receiving Party, on the condition that such attorneys, independent 

  
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accountants and financial advisors are bound by confidentiality and non-use obligations consistent with the confidentiality provisions of this Agreement as
they apply to the recipient Party; 
 8.3.2 disclosure by either Party or its Affiliates to governmental or other regulatory agencies
in order to obtain and maintain patents consistent with Article 7 or disclosure to gain or maintain approval to conduct Clinical Trials for a Product, to obtain and maintain Marketing Authorization or to otherwise develop, manufacture and market
Products in accordance with this Agreement, but such disclosure may be only to the extent reasonably necessary to obtain and maintain patents or authorizations; 

8.3.3 disclosure required in connection with any judicial or administrative process relating to or arising from this Agreement
(including any enforcement hereof) or to comply with applicable court orders or governmental regulations; or 
 8.3.4 disclosure to
potential or actual investors, potential or actual acquirers and actual or potential licensees or sublicensees of the Project Arising IP in connection with due diligence or similar investigations by such Third Parties; provided, in each case, that
any such potential or actual investor or acquirer agrees to be bound by confidentiality and non-use obligations consistent with those contained in this Agreement as they apply to the recipient Party. 

If the recipient Party is required by judicial or administrative process to disclose Confidential Information that is subject to the non-disclosure provisions of this Article 8, such Party shall promptly inform the other Party of the disclosure that is being sought in order to provide the other Party an opportunity to challenge or limit the
disclosure obligations. Confidential Information that is disclosed as permitted by this Section 8.3 shall remain otherwise subject to the confidentiality and non-use provisions of this Article 8, and
the Party disclosing Confidential Information as permitted by this Section 8.3 shall take all steps reasonably necessary, including obtaining an order of confidentiality and otherwise cooperating with the other Party, to ensure the continued
confidential treatment of such Confidential Information. 
 9. PUBLICATIONS AND PUBLICITY 

9.1 Publications. 

9.1.1 Each Party shall have the right to publish the results of the Research Collaboration with respect to its respective Products in
accordance with this Section 9.1. Except for disclosures permitted pursuant to this Article 9, a Party, its employees or consultants wishing to make a publication of the results of its activities under the Agreement that contains the other
Party’s Confidential Information, shall deliver to such Party a copy of the proposed written publication or an outline of an oral disclosure at least [...***...] prior to submission for publication or presentation. 

9.1.2 Notwithstanding Section 9.1.1, the reviewing Party shall have the right (a) to request the removal of its Confidential
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by the other Party, or (b) to request a reasonable delay in publication or presentation in order to protect patentable information. If a reviewing Party requests the removal of its
Confidential Information from any such publication or presentation, the publishing Party shall remove such Confidential Information prior to submission or presentation of such publication. If a reviewing Party requests such a delay, the other Party
shall delay submission or presentation for a period of [...***...] from delivery of the proposed publication pursuant to Section 9.1.1 to enable patent applications protecting the reviewing Party’s rights in such information to be
filed in accordance with Article 7. 
 9.2 Publicity. The Parties have mutually approved a press release attached hereto as
Exhibit 9.2 with respect to this Agreement and either Party may make subsequent public disclosure of the contents of such press release. Subject to the foregoing, each Party agrees not to issue any press release or other public
statement, whether oral or written, disclosing the terms hereof or any the activities under the Research Collaboration conducted hereunder without the prior written consent of the other Party (such consent not to be unreasonably withheld,
conditioned or delayed), provided however, that neither Party shall be prevented from complying with any duty of disclosure it may have pursuant to Applicable Laws or pursuant to the rules of any recognized stock exchange or quotation system,
subject to that Party notifying the other Party of such duty and limiting such disclosure as reasonably requested by the other Party (and giving the other Party sufficient time to review and comment on any proposed disclosure). In the event that
Zymeworks desires to make a public announcement regarding the achievement of any milestone event under Section 5.2 or 5.3, Zymeworks shall provide GSK with no less than [...***...] in which to review and approve such announcement, such
approval not to be unreasonably withheld, conditioned or delayed. 
 10. TERM AND TERMINATION 

10.1 Term. 

10.1.1 The term of this Agreement shall commence on the Effective Date and (subject to earlier termination in accordance with
Section 10.2, Section 10.3 or Section 10.4) shall expire unless otherwise mutually agreed: (i) one hundred and twenty (120) days after termination of the Research Collaboration Term (such period constituting the “120
Day Period”), unless, during the Research Collaboration Term or within the 120 Day Period, GSK provides written notice to Zymeworks of its intention to advance into research and development any one or more Antibody(ies) for inclusion in one
or more corresponding GSK Product(s) in accordance with this Agreement; or (ii) (where GSK has provided written notice to Zymeworks of its intention to advance into research and development any one or more Antibody(ies) for inclusion in one or more
corresponding GSK Product(s) in accordance with this Agreement) until expiration, on a GSK Product-by-GSK Product and country-by-country basis, of the Royalty Term under Section 5.4.2 with respect to such GSK Product in such country. The period from the Effective Date until the date of expiration of the entire
Agreement, or termination of this Agreement in its entirety pursuant to Sections 10.1, 10.2, 10.3 or 10.4, shall be the “Term”. 

  
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 10.1.2 Upon expiration of this Agreement under Section 10.1.1(ii) (but not Section
10.1.1(i)), on a country-by-country and GSK Product-by-GSK Product basis, all licenses
granted to GSK under Article 2 shall become non-exclusive, fully paid-up, perpetual licenses. 

10.2 Termination. 

10.2.1 GSK Right of Termination. GSK may terminate this Agreement, in its entirety or on a GSK Product-by-GSK Product basis or country by country basis, in its sole discretion upon [...***...] prior written notice at any time and for any reason or for no reason at all, without incurring any
penalty or liability, at any time after completion of Gate 1 of the Research Collaboration Plan. 
 10.2.2 During the Research
Collaboration Term. During the Research Collaboration Term, this Agreement shall terminate in the event of failure to achieve a Gate and the Parties fail to agree with respect to an appropriate revision to the Research Collaboration
Agreement or as mutually agreed by the Parties, in each case in accordance with Section 4.5. In the event of a termination pursuant to this Section 10.2.2, GSK shall cease to make use of any and all Zymeworks Project Arising IP, the
Zymeworks Modifications and the Zymeworks Modified Scaffolds; and Zymeworks shall cease to make use of any and all GSK Project Arising IP. 

10.2.3 Termination for Patent Challenge. Notwithstanding anything herein to the contrary, in the event that GSK or its
Affiliates file or initiate an action challenging in court or by administrative proceeding seeking the invalidity or unenforceability of any Zymeworks Patent Rights or Zymeworks Project Patent Rights which Covers a GSK Product, then Zymeworks, in
its discretion, may give written notice to GSK that Zymeworks shall terminate this Agreement, in its entirety, or on a GSK Product-by-GSK Product basis, unless such
challenge is withdrawn, abandoned, or terminated (as appropriate) within [...***...]. In the event that GSK or its Affiliate (as the case may be) does not withdraw, abandon or terminate (as appropriate) such challenge within such
[...***...] period, Zymeworks may terminate this Agreement. 
 10.3 Termination for Cause. If either GSK or Zymeworks is
in material breach of any obligation hereunder, the non-breaching Party may give written notice to the breaching Party specifying the claimed particulars of such breach, and in such event, if the breach is not
cured within [...***...] after receipt of such written notice, the non-breaching Party shall have the rights thereafter to terminate this Agreement, in its entirety or with respect to the Target(s) or
Product(s) that are the subject of such breach, immediately by giving written notice to the breaching Party to such effect. 
 10.4
Termination for Insolvency. To the extent permitted under Applicable Laws, either Party may terminate this Agreement, (a) if, at any time, the other Party files in any court or agency pursuant to any statute or regulation of any
state or country, a petition in bankruptcy or insolvency or for reorganization 

  
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or for an arrangement or for the appointment of a receiver or trustee of the Party or of substantially all of its assets, or (b) if the other Party is served with an involuntary petition
against it, filed in any insolvency proceeding, and such petition shall not be dismissed within [...***...] after the filing thereof, or (c) if the other Party shall propose or be a party to any dissolution or liquidation, or (d) if
the other Party shall make an assignment of substantially all of its assets for the benefit of creditors. Each Party agrees to give the other Party prompt written notice of the foregoing events giving rise to termination under this
Section 10.4. 
 11. EFFECTS OF TERMINATION 

11.1 Termination of Agreement. 

(a) General. Any termination or expiration of this Agreement shall: (i) be without prejudice to any other damage or legal
redress that a Party may be entitled to, and (ii) shall not release a Party from any indebtedness, liability or other obligation, in each case incurred under this Agreement by such Party prior to the date of termination or expiration of this
Agreement. On or after the effective date of such termination, Zymeworks shall send GSK an Invoice for any payments that are due and for which it has not previously issued an Invoice to GSK; and GSK shall pay all such amounts within
[...***...] from the date of receipt of the corresponding Invoice from Zymeworks. GSK shall pay any previously Invoiced amounts in accordance with this Agreement. 

(b) Expiration of Financial Obligations. On the expiration of all royalty obligations with respect to a GSK Product that is
being commercialized by GSK in a particular country, if any, subject to the terms and conditions of this Agreement, the licenses granted to GSK in Section 2.1.2 shall become perpetual, non-exclusive,
fully-paid and royalty-free right with respect to such GSK Product in such country, as set forth in Section 10.1.2. The licenses granted to Zymeworks in Section 2.2.2 (including the right to grant sublicenses in accordance with
Section 2.2.3) shall survive the expiration of this Agreement. 
 (c) Zymeworks Continuing Rights. 

(i) Upon the termination of this Agreement by GSK after the Research Collaboration Term in accordance with Section 10.2.1, (1) Zymeworks
shall continue to have all rights and licenses granted to it under Section 2.2.2, which shall continue in full force and effect, (2) the rights and licenses granted to GSK under Section 2.1 shall terminate, and GSK shall cease all use
of the Zymeworks Project Arising IP, the Zymeworks Modifications and the Zymeworks Modified Scaffolds. 
 (ii) Upon the termination of this
Agreement by Zymeworks pursuant to Section 10.2.3, Section 10.3 or Section 10.4, the rights and licenses granted to GSK under Section 2.1 shall terminate and GSK shall cease all use of the Zymeworks Project Arising IP, the
Zymeworks Modifications and the Zymeworks Modified Scaffolds; Zymeworks shall continue to have the exclusive right to research, develop and commercialize any Zymeworks Product Directed To a Zymeworks Target selected prior to the effective date of
such termination; 

  
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and the licenses and rights granted to Zymeworks in Section 2.2.2 shall continue in full force and effect. 

(d) GSK Continuing Rights. 

(i) Upon the termination of this Agreement by GSK pursuant to Section 10.3 or Section 10.4, GSK shall continue to have the
exclusive right to research, develop and commercialize GSK Products Directed To GSK Targets selected prior to the effective date of such termination and the obligation of the Parties in Section 3.7, pursuant to the licenses and rights granted
to GSK in Section 2.1.2, which shall continue in full force and effect solely with respect to GSK Products Directed To GSK Targets selected prior to the effective date of such termination subject to the payment by GSK of the applicable amounts
set out in Sections 5.2 to 5.4 (and associated reporting obligations) and Section 3.7. Subject to the last sentence of Section 5.4.2, if GSK terminates this Agreement in its entirety pursuant to Section 10.3, GSK shall then
decrease any milestone and royalty payment payable to Zymeworks in respect of the GSK Products by [...***...] percent ([...***...]%), for so long as GSK has the right to commercialize such Product on the terms set out under this
Agreement. 
 (e) Return of Information. Upon the expiration or termination of this Agreement, each Party shall return or
cause to be returned to the other Party, or destroy, all Confidential Information received from the other Party and all copies thereof; provided, however, that each Party may keep the Confidential Information received from the other
Party to the extent reasonably necessary to exercise any surviving rights and such other Party may keep one (1) copy of Confidential Information received from the other Party in its confidential files for record purposes. 

11.2 Survival. Expiration or termination of this Agreement shall not relieve the Parties of any obligation accruing prior to
such termination, nor affect in any way the survival of any other right, duty or obligation of the Parties which is expressly stated elsewhere in this Agreement to survive such termination. Without limiting the foregoing and except as expressly set
forth otherwise in this Agreement, Article 1; Section 3.3, all then-existing payment obligations owed by GSK to Zymeworks pursuant to Sections 5.2, 5.3, 5.4; Sections 6.1, 6.2, 6.3, and 6.4 (in each case, solely to the extent of any then
outstanding payment obligations); the Parties’ rights with respect to ownership of Intellectual Property as set forth in Section 7.1; Article 8; Article 9; Section 12.5; Section 12.6; Article 13; and Article 14 shall survive any
expiration or termination of this Agreement. Sublicenses granted by Zymeworks under the GSK Project Arising IP shall survive any expiration or termination of this Agreement provided that under no circumstance shall Zymeworks accept a sublicence to
such GSK Project Arising IP from any of its sublicensees in the event that Zymeworks’ rights to such GSK Project Arising IP is terminated). In the event of termination by GSK pursuant to Section 10.2.1, or by Zymeworks pursuant to
Section 10.2.3, 10.3, and 10.4, (a) the licenses granted to Zymeworks in Section 2.2.2 and Zymeworks’ rights with respect to the GSK Project Patent Rights set forth in Sections 7.2.3,
7.3.3-7.3.6 shall survive, in each case with solely respect to Project Arising IP created prior to the date of such termination and (b) GSK shall cease to make use of any and all Project Arising IP
licensed by Zymeworks to GSK, the Zymeworks Modifications and the Zymeworks Modified 

  
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Scaffolds, and shall cease all development and commercialization of the GSK Product(s) that are the subject of the termination. In the event of termination by GSK pursuant to Section 10.4,
the licenses granted to GSK in Section 2.1.2 and GSK’s rights with respect to the Zymeworks Project Patent Rights set forth in Sections 7.2.2, 7.3.2, and 7.3.4-7.3.6 shall survive, in each case with
solely respect to Project Arising IP created prior to the date of such termination and subject to the payment and reporting obligations under Article 5. In the event of the expiration or termination of this Agreement, except as expressly set
forth otherwise in this Agreement (including under the surviving provisions set forth in Section 11.1(b), (c) and (d) and this Section 11.2), the rights and obligations of the Parties hereunder shall terminate as of the date of such
expiration or termination. 
 11.3 Damages; Relief. Termination of this Agreement shall not preclude either Party from
claiming any other damages, compensation or relief that it may be entitled to upon such termination. 
 11.4 Bankruptcy Code.
If this Agreement is rejected by a Party as a debtor under Section 365 of the United States Bankruptcy Code or similar provision in the bankruptcy laws of another jurisdiction (the “Code”), then, notwithstanding anything else
in this Agreement to the contrary, all licenses and rights to licenses granted under or pursuant to this Agreement by the Party in bankruptcy to the other Party are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the
United States Bankruptcy Code (or similar provision in the bankruptcy laws of the jurisdiction), licenses of rights to “intellectual property” as defined under Section 101(35A) of the United States Bankruptcy Code (or similar provision in
the bankruptcy laws of the jurisdiction). The Parties agree that a Party that is a licensee of rights under this Agreement shall retain and may fully exercise all of its rights and elections under the Code, and that upon commencement of a bankruptcy
proceeding by or against a Party under the Code, the other Party shall be entitled to, to the extent required under the Code, a complete duplicate of, or complete access to (as such other Party deems appropriate), any such intellectual property and
all embodiments of such intellectual property, if not already in such other Party’s possession, shall be promptly delivered to such other Party (a) upon any such commencement of a bankruptcy proceeding upon written request therefor by such
other Party, unless the bankrupt Party elects to continue to perform all of its obligations under this Agreement or (b) if not delivered under (a) above, upon the rejection of this Agreement by or on behalf of the bankrupt Party upon
written request therefor by the other Party. The foregoing provisions of this Section 11.4 are without prejudice to any rights a Party may have arising under the Code. 

12. REPRESENTATIONS AND WARRANTIES AND COVENANTS 

12.1 Representations and Warranties by Each Party. Each Party represents and warrants to the other as of the Effective Date
that: 
 12.1.1 it is a corporation duly organized, validly existing, and in good standing under the laws of its jurisdiction of
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 12.1.2 it has full corporate power and authority to execute, deliver, and perform this
Agreement, and has taken all corporate action required by Applicable Laws and its organizational documents to authorize the execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement; 

12.1.3 this Agreement constitutes a valid and binding agreement enforceable against it in accordance with its terms (except as the
enforceability thereof may be limited by bankruptcy, bank moratorium or similar laws affecting creditors’ rights generally and laws restricting the availability of equitable remedies and may be subject to general principles of equity whether or
not such enforceability is considered in a proceeding at law or in equity); and 
 12.1.4 the execution and delivery of this
Agreement and all other instruments and documents required to be executed pursuant to this Agreement, and the consummation of the transactions contemplated hereby do not and shall not (a) conflict with or result in a breach of any provision of
its organizational documents, (b) result in a breach of any agreement to which it is a party; or (c) violate any Applicable Laws. 

12.2 Representations, Warranties and Covenants by Zymeworks. Zymeworks represents, warrants as of the Effective Date and (solely
to the extent specified below) covenants to GSK as follows: 
 12.2.1 Zymeworks has the right to grant the rights and licenses that
it purports to grant to GSK under this Agreement, free and clear of all liens or encumbrances; and 
 12.2.2 Zymeworks has not
granted and covenants not to grant during the Term rights to any Third Party under the Project Arising IP that conflicts with the rights granted to GSK hereunder. 

12.2.3 Zymeworks represents and warrants that it has not granted as of the Effective Date, and covenants that it shall not during the
Term grant, to any Third Party (i) any right or licence or (ii) any lien, mortgage or security interest or any other similar interest in Zymeworks Background Technology or the Project Arising IP that would conflict with, restrict or
otherwise limit the scope of any of the rights granted to GSK hereunder pertaining to the Research Collaboration or any GSK Product. 

12.2.4 to Zymeworks’ knowledge, having conducted certain searches and made certain enquiries, the use of Zymeworks Background
Technology pursuant to the Research Collaboration, does not infringe the valid and enforceable Intellectual Property rights or any other rights of any Third Party; 

12.2.5 Zymeworks has not received any written notification from a Third Party alleging that any of the Zymeworks Background Technology
infringes any Intellectual Property rights of a Third Party; 
 12.2.6 there are no pending, and no threatened, adverse actions,
suits or proceedings against Zymeworks involving Zymeworks Background Technology; 

  
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 12.2.7 to Zymeworks’ knowledge, having conducted certain searches and made
certain enquiries, Zymeworks does not require any additional licenses or any other Intellectual Property rights to conduct the Research Collaboration; 

12.2.8 Zymeworks does not require any consent or waiver under any contractual arrangement with a Third Party to which Zymeworks is a
party to conduct the activities to be conducted by Zymeworks under the Research Collaboration hereunder or to grant the rights and licenses that it purports to grant under this Agreement; 

12.2.9 Zymeworks covenants that all employees, consultants and agents of Zymeworks or its Affiliates working in or otherwise involved
in the Research Collaboration, shall be under the obligation to assign to Zymeworks all right, title and interest in and to their inventions conceived and discoveries made within the scope of their employment, whether or not patentable, if any,
which constitutes the GSK Inventions and the GSK Project Patent Rights as the sole owner thereof; 
 12.3 Representations, Warranties
and Covenants by GSK. GSK represents, warrants as of the Effective Date and covenants to Zymeworks as follows: 
 12.3.1 GSK
has the right to grant to Zymeworks the licenses under Section 2.2; and 
 12.3.2 GSK has not granted, and shall not grant
during the Term, rights to any Third Party under the Project Arising IP that conflict with the rights granted to Zymeworks hereunder. 

12.4 Covenants. Each Party hereby covenants to the other Party that: 

12.4.1 all employees, consultants and agents of such Party or its Affiliates working in or otherwise involved in the Research
Collaboration shall be under the obligation to assign all right, title and interest in and to, or (with respect to consultants) grant sufficient licenses under, their inventions conceived and discoveries made within the scope of their employment,
whether or not patentable, if any, to such Party to allow such Party to grant the rights and licenses granted to the other Party hereunder; and 

12.4.2 it shall at all times perform its activities pursuant to this Agreement in compliance in all material respects with good
laboratory practices, in each case to the extent customary for any particular activity and as applicable under the laws and regulations of the country and the state and local government wherein such activities are conducted. 

12.5 Limitation. NEITHER PARTY MAKES ANY REPRESENTATION OR WARRANTY, EITHER EXPRESS OR IMPLIED, THAT ANY OF THE RESEARCH,
DEVELOPMENT AND/OR COMMERCIALIZATION EFFORTS HEREUNDER WITH REGARD TO ANY ANTIBODY OR PRODUCT SHALL BE SUCCESSFUL. 

  
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 12.6 No Other Warranties. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS
AGREEMENT, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL REPRESENTATIONS OR WARRANTIES OF ANY KIND WITH RESPECT TO THE SUBJECT MATTER OF THIS AGREEMENT, EITHER EXPRESS OR IMPLIED, INCLUDING ANY WARRANTIES OF
NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 
 13. INDEMNIFICATION AND
LIABILITY 
 13.1 Indemnification by Zymeworks. Zymeworks shall indemnify, defend and hold GSK and its Affiliates, and
their respective officers, directors, employees, contractors, agents and assigns (each, a “GSK Indemnified Party”), harmless from and against losses, damages and liability, including reasonable legal expense and attorneys’
fees, (collectively, “Losses”) to which any GSK Indemnified Party may become subject as a result of any Third Party demands, claims or actions (“Claims”) against any GSK Indemnified Party (including product
liability claims) arising or resulting from: (a) the research, development or commercialization of Zymeworks Products by Zymeworks or its Affiliates, licensees or sublicensees (excluding GSK and its Affiliates) under this Agreement;
(b) the negligence or willful misconduct of Zymeworks or its Affiliates pursuant to this Agreement; or (c) the material breach of any term in or the covenants, warranties, representations made by Zymeworks to GSK under this Agreement.
Zymeworks is only obliged to so indemnify and hold the GSK Indemnified Parties harmless to the extent that such Claims do not arise from the material breach of this Agreement by or the negligence or willful misconduct of GSK. 

13.2 Indemnification by GSK. GSK shall indemnify, defend and hold Zymeworks and its Affiliates, and their respective officers,
directors, employees, contractors, agents and assigns (each, a “Zymeworks Indemnified Party”), harmless from and against Losses incurred by any Zymeworks Indemnified Party as a result of any Third Party Claims against any Zymeworks
Indemnified Party (including product liability claims) arising or resulting from: (a) the research, development or commercialization of GSK Products by GSK or its Affiliates, licensees or sublicensees (excluding Zymeworks and its Affiliates)
under this Agreement; (b) the negligence or willful misconduct of GSK or its Affiliates pursuant to this Agreement; or (c) the material breach of any term in or the covenants, warranties, representations made by GSK to Zymeworks under this
Agreement. GSK is only obliged to so indemnify and hold the Zymeworks Indemnified Parties harmless to the extent that such Claims do not arise from the material breach of this Agreement or the negligence or willful misconduct of Zymeworks. 

  
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 13.3 Indemnification Procedure. 

13.3.1 Any GSK Indemnified Party or Zymeworks Indemnified Party seeking indemnification hereunder (“Indemnified
Party”) shall notify the Party against whom indemnification is sought (“Indemnifying Party”) in writing reasonably promptly after the assertion against the Indemnified Party of any Claim in respect of which the Indemnified
Party intends to base a claim for indemnification hereunder, but the failure or delay so to notify the Indemnifying Party shall not relieve the Indemnifying Party of any obligation or liability that it may have to the Indemnified Party except to the
extent that the Indemnifying Party demonstrates that its ability to defend or resolve such Claim is adversely affected thereby. 

13.3.2 Subject to the provisions of Section 13.3.3 below, the Indemnifying Party shall have the right, upon providing written
notice to the Indemnified Party of its intent to do so within [...***...] after receipt of the notice from the Indemnified Party of any Claim, to assume the defense and handling of such Claim, at the Indemnifying Party’s sole expense.

 13.3.3 The Indemnifying Party shall select counsel reasonably acceptable to the Indemnified Party in connection with conducting
the defense and handling of such Claim, and the Indemnifying Party shall defend or handle the same in consultation with the Indemnified Party, and shall keep the Indemnified Party timely apprised of the status of such Claim. The Indemnifying Party
shall not, without the prior written consent of the Indemnified Party, agree to a settlement of any Claim which could lead to liability or create any financial or other obligation on the part of the Indemnified Party for which the Indemnified Party
is not entitled to indemnification hereunder, or would involve any admission of wrongdoing on the part of the Indemnified Party. The Indemnified Party shall cooperate with the Indemnifying Party, at the request and expense of the Indemnifying Party,
and shall be entitled to participate in the defense and handling of such Claim with its own counsel and at its own expense. 
 13.4
Special, Indirect and Other Losses. NEITHER PARTY NOR ANY OF ITS AFFILIATES SHALL BE LIABLE UNDER THIS AGREEMENT FOR SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING ANY SUCH LOSS OF PROFITS SUFFERED BY THE
OTHER PARTY, EXCEPT FOR LIABILITY FOR BREACH OF ARTICLE 9. NOTHING IN THIS SECTION 13.4 SHALL BE CONSTRUED TO LIMIT EITHER PARTY’S INDEMNIFICATION OBLIGATIONS UNDER THIS ARTICLE 13. 

13.5 Insurance. Zymeworks, at its own expense, shall maintain liability insurance (or self-insure) in an amount consistent with
industry standards during the Term. Zymeworks shall provide a certificate of insurance (or evidence of self-insurance) evidencing such coverage to GSK upon request. GSK hereby represents and warrants to Zymeworks that it is self-insured against
liability and other risks associated with its activities and obligations under this Agreement in such amounts and on such terms as are customary for prudent practices for global pharmaceutical companies and agrees that it shall remain so insured
throughout the Term. GSK shall furnish to Zymeworks evidence of such self-insurance, upon request. 

  
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 14. GENERAL PROVISIONS 

14.1 Assignment. Except as provided in this Section 14.1, this Agreement may not be assigned or otherwise transferred, nor
may any right or obligation hereunder be assigned or transferred, by either Party without the consent of the other Party; provided, however, that (and notwithstanding anything elsewhere in this Agreement to the contrary) either Party
may, without such consent, assign this Agreement and its rights and obligations hereunder in whole or in part to an Affiliate of such Party, provided further that, either Party, without the written consent of the other Party, may
assign this Agreement and its rights and obligations hereunder (or under a transaction under which this Agreement is assumed) in connection with the transfer or sale of all or substantially all of its assets or business related to the subject matter
of this Agreement, or in the event of its merger or consolidation or similar transaction. Any attempted assignment not in accordance with this Section 14.1 shall be void. Any permitted assignee shall assume all assigned obligations of its
assignor under this Agreement. For clarity, the foregoing is not intended to limit a Party’s right to grant sublicenses in accordance with Article 2 above. 

14.2 Extension to Affiliates. Except as expressly set forth otherwise in this Agreement, each Party shall have the right to
extend the rights and immunities granted in this Agreement to one or more of its Affiliates. All applicable terms and provisions of this Agreement, except this right to extend, shall apply to any such Affiliate to which this Agreement has been
extended to the same extent as such terms and provisions apply to the Party extending such rights and immunities. The Party extending the rights and immunities granted hereunder shall remain primarily liable for any acts or omissions of its
Affiliates. 
 14.3 Severability. Should one or more of the provisions of this Agreement become void or unenforceable as a
matter of Applicable Laws, then this Agreement shall be construed as if such provision were not contained herein and the remainder of this Agreement shall be in full force and effect, and the Parties shall use their best efforts to substitute for
the invalid or unenforceable provision a valid and enforceable provision which conforms as nearly as possible with the original intent of the Parties 

14.4 Governing Law; English Language. This Agreement shall be governed by and construed in accordance with the laws of the State
of Delaware and the patent laws of the United States without reference to any rules of conflict of laws. This Agreement was prepared in the English language, which language shall govern the interpretation of, and any dispute regarding, the terms of
this Agreement. 

  
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 14.5 Dispute Resolution. 

14.5.1 If any dispute, claim or controversy of any nature arising out of or relating to this Agreement, including any action or claim
based on tort, contract or statute, or concerning the interpretation, effect, termination, validity, performance or breach of this Agreement (each, a “Dispute”), arises between the Parties, either Party shall first attempt in good
faith to resolve such Dispute by negotiation and consultation between themselves. In the event that such Dispute is not resolved on an informal basis within [...***...], either Party shall, by written notice to the other Party, refer such
Dispute to senior representatives of each Party for attempted resolution. Each Party, within [...***...] after a Party has received such written request from the other Party to so refer such Dispute, shall notify the other Party in writing of
the senior representative to whom such dispute is referred. Such representatives shall attempt in good faith to promptly resolve such Dispute within [...***...] thereafter. In the event that any matter is not resolved under the foregoing
provisions, each Party shall seek resolution of such matter in accordance with Section 14.5.2. 
 14.5.2 If a Dispute is not
resolved through negotiation by the Parties and their senior representatives under Section 14.5.1, the Parties agree that they shall try in good faith to resolve the Dispute by referring it for confidential mediation under the CPR Mediation
Procedure in effect at the start of mediation. Unless otherwise agreed, the Parties shall select a mediator from the CPR Panels of Distinguished Neutrals. If the Parties cannot agree, they shall defer to the CPR to select a mediator. The cost of the
mediator shall be borne equally by the Parties. The place of mediation shall be Wilmington, Delaware. Any Dispute not resolved within [...***...] (or within such other time period as may be agreed to by the Parties in writing) after
appointment of the mediator shall be finally resolved by arbitration pursuant to the remainder of this Section 14.5. 
 14.5.3
If, after mediation pursuant to Section 14.5.2, the Parties have not succeeded in negotiating a resolution of the Dispute, and a Party wishes to pursue the matter, each such Dispute, controversy or claim that is not an “Excluded
Claim” (defined below) shall be finally resolved by binding arbitration in accordance with the American Arbitration Association (“Rules”). Judgment on the Award may be entered in any court having jurisdiction. This clause shall
not preclude Parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction. 
 14.5.4 The
arbitration shall be conducted by a single arbitrator experienced in the business of pharmaceuticals (including biologicals). If the issues in dispute involve scientific, technical or commercial matters, the arbitrator chosen hereunder shall engage
experts having educational training or industry experience sufficient to demonstrate a reasonable level of relevant scientific, medical and industry knowledge, as necessary to resolve the dispute. Within [...***...] after initiation of
arbitration, the Parties shall select the arbitrator. If the Parties are unable or fail to agree upon the arbitrator within such [...***...] period, the arbitrator shall be appointed in accordance with the Rules. The place of arbitration shall
be Wilmington, Delaware, and all proceedings and communications shall be in English. 
 14.5.5 Prior to the arbitrator being
selected, either Party, without waiving any remedy under this Agreement, may seek from any court having jurisdiction any temporary injunctive or provisional relief necessary to protect the rights or property of that Party until final resolution of
the issue by the arbitrator or other resolution of the controversy between the Parties. 

  
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Once the arbitrator has been selected, either Party may apply to the arbitrator for interim injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved, and
either Party may apply to a court of competent jurisdiction to enforce interim injunctive relief granted by the arbitrator. Any final award by the arbitrator may be entered by either Party in any court having appropriate jurisdiction for a judicial
recognition of the decision and applicable orders of enforcement. The arbitrator shall have no authority to award punitive or any other type of damages not measured by a Party’s compensatory damages. Each Party shall bear its own costs and
expenses and attorneys’ fees and an equal share of the arbitrator’s fees and any administrative fees of arbitration, unless the arbitrator agrees otherwise. 

14.5.6 Except to the extent necessary to confirm an award or as may be required by law, neither a Party nor the arbitrator may disclose
the existence, content, or results of an arbitration without the prior written consent of both Parties. 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 Delaware statute of limitations. The content and resolution of any arbitration conducted pursuant to this Section 14 shall be the Confidential Information of both Parties, and Parties shall
instruct the arbitrator to maintain the same as confidential. 
 14.5.7 As used in this Section 14.5, the term “Excluded
Claim” means any dispute, controversy or claim that concerns (a) the validity, enforceability or infringement of any patent, trademark or copyright, (b) any antitrust, anti-monopoly or competition law or regulation, whether or not
statutory, (c) tax matters, or (d) international law. Any Excluded Claim may be submitted by either Party to the State and Federal Courts located in Delaware or, if such courts are found not to have jurisdiction, any court of competent
jurisdiction over such Excluded Claim. 
 14.6 Force Majeure. Neither Party shall be responsible to the other for any failure
or delay in performing any of its obligations under this Agreement or for other nonperformance hereunder (excluding, in each case, the obligation to make payments when due) if such delay or nonperformance is caused by strike, fire, flood,
earthquake, accident, war, act of terrorism, act of God or of the government of any country or of any local government, or by any other cause unavoidable or beyond the control of any Party hereto. In such event, the Party affected shall use
Commercially Reasonable Efforts to resume performance of its obligations and shall keep the other Party informed of actions related thereto. 

14.7 Waivers and Amendments. The failure of any Party to assert a right hereunder or to insist upon compliance with any term or
condition of this Agreement shall not constitute a waiver of that right or excuse a similar subsequent failure to perform any such term or condition by the other Party. No waiver shall be effective unless it has been given in writing and signed by
the Party giving such waiver. No provision of this Agreement may be amended or modified other than by a written document signed by authorized representatives of each Party. 

  
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 14.8 Relationship of the Parties. Nothing contained in this Agreement shall be
deemed to constitute a partnership, joint venture, or legal entity of any type between Zymeworks and GSK, or to constitute one as the agent of the other. Each Party shall act solely as an independent contractor, and nothing in this Agreement shall
be construed to give any Party the power or authority to act for, bind, or commit the other. 
 14.9 Notices. All notices,
consents or waivers under this Agreement shall be in writing and shall be deemed to have been duly given when (a) scanned and converted into a portable document format file (i.e., pdf file), and sent as an attachment to an e-mail message, where, when such message is received, a read receipt e-mail is received by the sender (and such read receipt e-mail is
preserved by the Party sending the notice), provided further that a copy is promptly sent by an internationally recognized overnight delivery service (receipt requested)(although the sending of the
e-mail message shall be when the notice is deemed to have been given), or (b) the earlier of when received by the addressee or five (5) days after it was sent, if sent by registered letter or
overnight courier by an internationally recognized overnight delivery service (receipt requested), in each case to the appropriate addresses and e-mail addresses set forth below (or to such other addresses and
e-mail addresses as a Party may designate by notice): 
  

			
	If to Zymeworks:	  	Zymeworks Inc.
		  	540-1385 West 8th Avenue
		  	Vancouver, BC
		  	Canada
		  	V6H 3V9
		  	Attention: [...***...]
		  	E-mail address: [...***...]
		
	and	  	
		
		  	Wilson Sonsini Goodrich & Rosati
		  	650 Page Mill Road
		  	Palo Alto, CA 95070
		  	Attention: [...***...]
		  	E-mail address: [...***...]

  
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	If to GSK:	  	[...***...]
		  	GSK
		  	Medicines Research Centre
		  	Gunnels Wood Road
		  	Stevenage
		  	Hertfordshire
		  	SG1 2NY
		  	UK
		
		  	Attention: [...***...]
		  	E-mail address: [...***...]
		
	and	  	
		
		  	GSK
		  	709 Swedeland Road
		  	PO Box 1539
		  	King of Prussia, PA
		
		  	Attention: [...***...]
		  	E-mail address: [...***...]

 Zymeworks shall also provide a copy of any notice (via e-mail if
available) to GSK’s Project Leader. 
 14.10 Further Assurances. GSK and Zymeworks hereby covenant and agree without the
necessity of any further consideration, to execute, acknowledge and deliver any and all documents and take any action as may be reasonably necessary to carry out the intent and purposes of this Agreement. 

14.11 Compliance with Law. Each Party shall perform its obligations under this Agreement in accordance with all Applicable Laws.
No Party shall, or shall be required to, undertake any activity under or in connection with this Agreement which violates, or which it believes, in good faith, may violate, any Applicable Laws. 

14.12 No Third Party Beneficiary Rights. This Agreement is not intended to and shall not be construed to give any Third Party
any interest or rights (including any Third Party beneficiary rights) with respect to or in connection with any agreement or provision contained herein or contemplated hereby, except as otherwise expressly provided for in this Agreement. 

  
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 14.13 Entire Agreement. This Agreement sets forth the entire agreement and
understanding of the Parties as to the subject matter hereof and supersedes all proposals, oral or written, and all other communications between the Parties with respect to such subject matter, other than the CDA. 

14.14 Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 
 14.15 Expenses. Each Party shall pay its
own costs, charges and expenses incurred in connection with the negotiation, preparation and completion of this Agreement. 
 14.16
Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective legal representatives, successors and permitted assigns. 

14.17 Construction. The Parties hereto acknowledge and agree that: (a) each Party and its counsel reviewed and negotiated
the terms and provisions of this Agreement and have contributed to its revision; (b) the rule of construction to the effect that any ambiguities are resolved against the drafting Party shall not be employed in the interpretation of this
Agreement; and (c) the terms and provisions of this Agreement shall be construed fairly as to all Parties hereto and not in a favor of or against any Party, regardless of which Party was generally responsible for the preparation of this
Agreement. 
 14.18 Cumulative Remedies. No remedy referred to in this Agreement is intended to be exclusive unless explicitly
stated to be so, but each shall be cumulative and in addition to any other remedy referred to in this Agreement or otherwise available under law. 

14.19 Export. Each Party acknowledges that the laws and regulations of the United States restrict the export and re-export of commodities and technical data of United States origin. Each Party agrees that it shall not export or re-export restricted commodities or the technical data of
the other Party in any form without appropriate United States and foreign government licenses. 
 14.20 Good Data Management
Practices 
 14.20.1 Each of the Parties acknowledges the importance of ensuring that the Research Collaboration is
undertaken in accordance with the following good data management practices (“Good Data Management Practices”): 

  
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 (a) Results are generated using sound scientific techniques and processes; 

(b) Results are accurately recorded in accordance with good scientific practices by persons conducting research hereunder; 

(c) Results are analysed appropriately without bias in accordance with good scientific practices; 

(d) Results are stored securely and can be easily retrieved, 

(e) Data trails exist to easily demonstrate and/or reconstruct key decisions made during the conduct of the research, presentations
made about the research and conclusions reached with respect to the research; and 
 (f) Results relating to each project are
documented in separate dedicated laboratory notebooks relating solely and specifically to each project. 
 14.20.2 If a Party
discovers that the other Party is in material breach of Section 14.20.1, such Party may provide a notice of termination to the breaching Party in accordance with Section 10.3. 

14.21 Ethical Standards 

14.21.1 Human Rights 

(a) Unless otherwise required or prohibited by Applicable Laws, the Parties warrant, to the best of their knowledge, that in relation
to the performance of this Agreement: 
 (i) they do not employ engage or otherwise use any child labour in circumstances such that the
tasks performed by any such child labour could reasonably be foreseen to cause either physical or emotional impairment to the development of such child; 

(ii) they do not use forced labour in any form (prison, indentured, bonded or otherwise) and its employees are not required to lodge papers
or deposits on starting work; 
 (iii) they provide a safe and healthy workplace, presenting no immediate hazards to its employees. Any
housing provided by the Parties to their employees is safe for habitation. The Parties provides access to clean water, food, and emergency healthcare to their employees in the event of accidents or incidents in the workplace; 

(iv) they do not discriminate against any employees on any ground (including race, religion, disability or gender); 

  
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 (v) they do not engage in or support the use of corporal punishment, mental, physical,
sexual or verbal abuse and does not use cruel or abusive disciplinary practices in the workplace; 
 (vi) they pay each employee at least
the minimum wage, or a fair representation of the prevailing industry wage, (whichever is the higher) and provides each employee with all legally mandated benefits; 

(vii) they comply with the laws on working hours and employment rights in the countries in which they operate; 

(viii) they are respectful of their employees’ right to join and form independent trade unions and freedom of association. 

(b) The Parties agree that they are responsible for controlling their own supply chain and that they shall encourage compliance with
ethical standards and human rights by any subsequent supply of goods and services that are used by the Parties when performing their obligations under this Agreement. 

(c) The Parties shall ensure that they have ethical and human rights policies and an appropriate complaints procedure to deal with any
breaches of such policies. 
 14.22 Anti-Corruption  

14.22.1 Zymeworks acknowledges receipt of the ‘Prevention of Corruption – Third Party Guidelines’ (attached at
Exhibit 14.22) and agrees to perform its obligations under the Agreement in accordance with the principles set out therein. 

14.22.2 The Parties shall comply fully at all time with all Applicable Laws in their performance under this Agreement, including but
not limited to applicable anti-corruption laws, of the territory in which the Parties conduct business with each other. 
 14.22.3
The Parties shall be entitled to terminate this Agreement immediately on written notice to the other, if the other Party fails to perform its obligations in accordance with this Section 14.22. The defaulting Party shall have no claim against
the non-defaulting Party for compensation for any loss of whatever nature by virtue of the termination of this Agreement in accordance with this Section 14.22.3. To the extent (and only to the extent)
that the laws of the territory provide for any such compensation to be paid to the non-defaulting upon the termination of this Agreement, the Parties hereby expressly agree to waive (to the extent possible
under the laws of the territory) or to repay any such compensation or indemnity. 
 14.23 Human Biological Samples 

14.23.1 Each of the Parties represents, warrants and undertakes to other that any human biological samples used in the Research
Collaboration have been and shall be obtained, and shall be stored and used, in accordance with all relevant laws including, but not limited to, the Human Tissue Act 2004 and any generally accepted ethical guidelines in

  
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particular the MRC Guidelines entitled “Human Tissue and Biological Samples for use in Research” regarding the collection, use and transport of human tissue. 

14.23.2 Each of the Parties represents, warrants and undertakes to the other that all the relevant ethics committee approvals have been
and shall be obtained to enable the use of any human biological samples obtained from patients or human subject volunteers or other donors in the Research Collaboration under this Agreement. 

14.23.3 Each of the Parties represents, warrants and undertakes to the other that all uses of any human biological samples in the
Research Collaboration fall and shall fall within the terms of the informed consent given by the donors of the samples including without limitation transfer to, and use by, a commercial organisation of the human biological samples and associated
personal information in anonymised or coded form. 
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 IN WITNESS WHEREOF, the Parties intending to be bound have caused this Agreement to be
executed by their duly authorized representatives. 
  

			
	Zymeworks Inc.
		
	By:	 	 /s/ Ali Tehrani

	Name:	 	Ali Tehrani, Ph.D.
	Title:	 	President & Chief Executive Officer
	
	GlaxoSmithKline Intellectual Property Development Limited
		
	By:	 	 /s/ Paul Williamson

	Name:	 	Paul Williamson
	Title:	 	 Authorised Signatory for and on behalf of Edinburgh Pharmaceutical Industries Limited

Corporate Director

  
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 EXHIBIT 1.36 

Invoice Details 
 Each invoice must include
the following details: 
 a. Zymeworks letterhead. 
 b. Bank
details - Bank details must be provided at least five (5) days prior to payment due date, so GSK treasury can be notified in advance that a payment may be required. 

c. Contact name and contact number. 
 d. Invoice date and
invoice number. 
 e. Reference stating the contractual clause invoice relates to. 

f. Payment terms and currency, with reference to the relevant clause. e.g. 60 days after receipt of invoice. 

g. Invoice must be addressed to GSK Alliance Management at the following address: 

GlaxoSmithKline Intellectual Property Development Limited 
 980
Great West Road, 
 Brentford, 
 Middlesex, 

TW8 9GS 
 United Kingdom 

All non-royalty payments made by GSK should be ‘payable’ AFTER receipt of an original invoice from
Zymeworks. 

  
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 EXHIBIT 3.1.3 

INITIAL RESEARCH COLLABORATION PLAN 

[...***...] 

  
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 EXHIBIT 3.1.5 

MATERIAL TRANSFER RECORD FORM 

GSK and Zymeworks 
 Capitalized terms used herein
that are not defined herein shall have the meanings set forth in the Collaboration and License Agreement dated [●] made between GSK and Zymeworks. 

In connection with the performance of the Agreement and pursuant to the terms of the Agreement: 

(i) GSK will transfer to Zymeworks the Materials set forth below; 

and/or 
 (ii) Zymeworks will transfer to GSK the Materials set
forth below. 
 This Material Transfer Record Form shall be used as the record of all such Material transfers, whether from GSK to Zymeworks or from
Zymeworks to GSK. 
 Transfer Date: 
 Description of Materials

 Description of Research for which the Material(s) will be Used 

Signature – GSK Representative                 
                          

Date 

Signature – Zymeworks Representative                
                           

Date 
 Note: This MTR is to be completed and signed by the
Zymeworks and the GSK Representative for each transfer. A copy of each completed MTR is to be timely provided to Alliance Manager (for GSK) and to the Alliance Manager (for Zymeworks). This MTR should not be used to transfer any materials in which
the Transferor believes that third parties have rights, or which the Transferor believes infringe or violate any intellectual property rights held by any Third Party. If there are any questions about the appropriateness of a transfer, please contact
the Named representatives identified herein before making the transfer. 

  
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 EXHIBIT 9.2 

PRESS RELEASE 
 Zymeworks Announces
Antibody Fc Engineering Collaboration and License Agreement with GSK 
 Vancouver, Canada (November XX, 2015) – Zymeworks Inc. today announced that it
has entered into a collaboration and license agreement with GSK for the research, development, and commercialization of novel Fc-engineered monoclonal and bi-specific
antibody therapeutics which have been optimized for specific therapeutic effects. 
 Under the terms of the agreement, Zymeworks and GSK will collaborate to
further develop Zymeworks’ Effector Function Enhancement and Control Technology (EFECTTM) platform through the design, engineering, and testing of novel engineered Fc domains tailored to induce specific antibody-mediated immune responses.
At the conclusion of the research collaboration, both GSK and Zymeworks will have the right to develop and commercialize monoclonal and bi-specific antibody candidates that incorporate Zymeworks’
optimized immune-modulating Fc domains. Under the terms of the agreement, GSK will have the right to develop a minimum of 4 products across multiple disease areas, and Zymeworks will be eligible to receive
pre-clinical, clinical, and commercial milestones of up to USD$110 million for each product, as well as tiered sales royalties. Further financial details are not disclosed. 

“We are thrilled to collaborate with GSK on the development of next-generation antibody therapeutics that incorporate the EFECTTM platform to help
fight life-threatening diseases,” said Ali Tehrani, Ph.D., President & CEO of Zymeworks. “This is a unique opportunity for Zymeworks to apply our antibody engineering expertise in collaboration with GSK’s drug discovery
capabilities to develop and commercialize novel antibody therapeutics. The collaboration will also allow Zymeworks to combine the novel immune-modulating Fc domains with our AzymetricTM platform to generate
bi-specific antibodies with customized immune modulatory functions.” 
 About the EFECTTM Platform 

The EFECTTM platform is a library of antibody Fc modifications engineered to modulate the activity of the antibody-mediated immune response, which includes
both the up and down-regulation of effector functions. This platform is compatible with traditional monoclonal as well as AzymetricTM bi-specific antibodies to further enable the customization of
therapeutic responses for different diseases. 
 About Zymeworks Inc. 

Zymeworks is a privately held biotherapeutics company that is developing
best-in-class AzymetricTM bi-specific antibodies and antibody drug conjugates for the treatment of cancer, autoimmune and
inflammatory diseases. The company’s novel AzymetricTM, AlbuCORETM, and EFECTTM platforms, and its proprietary ZymeCADTM structure-guided protein engineering 

  
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technology, enable the development of highly potent bi-specific antibodies and multivalent protein therapeutics across a range of indications. Zymeworks is
focused on accelerating its preclinical biotherapeutics pipeline through in-house research and development programs and strategic collaborations. More information on Zymeworks can be found at
www.zymeworks.com. 
 Contact: 
 Zymeworks Inc. 

David Poon, Ph.D. 
 Senior Director, External R&D and
Alliances 
 info@zymeworks.com 
 Source: Zymeworks Inc. 

  
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 EXHIBIT 14.22 

Prevention of Corruption – Third Party Guidelines 

[...***...] 

  
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