Document:

Prepared by R.R. Donnelley Financial -- EX-10.8

 Exhibit 10.8 
 2014 EQUITY INCENTIVE PLAN 
 XENON PHARMACEUTICALS INC. 

ARTICLE 1 
 PURPOSE 
  

	1.1	The purpose of this Plan is to promote the interests of Xenon Pharmaceuticals Inc. (the “Company”) by: 

 

	 	(a)	furnishing certain directors, officers, employees of the Company and its subsidiaries or other persons as the Board of Directors may approve with greater incentive to
further develop and promote the business and financial success of the Company; 

  

	 	(b)	furthering the identity of interests of persons to whom options or share awards may be granted with those of the shareholders of the Company generally through share
ownership in the Company; and 

  

	 	(c)	assisting the Company in attracting, retaining and motivating its directors, officers and employees. 

The Company believes that these purposes may best be effected by granting Options or Share Awards to acquire Common Shares without par value in the
capital of the Company. 
 ARTICLE 2 
 INTERPRETATION 
  

	2.1	In this Plan, unless there is something in the subject matter or context inconsistent therewith: 

 

	 	(a)	“Affiliate” has the meaning ascribed thereto under the Canada Business Corporations Act as from time to time amended, supplemented or
re-enacted; 

  

	 	(b)	“Award” means, individually or collectively, an award of Options, an award of Share Appreciation Rights, Restricted Share Award, Restricted Share Unit
Award, or any Performance Share Award granted under the Plan; 

  

	 	(c)	“Award Agreement” means the written or electronic agreement setting forth the terms and provisions applicable to each Award granted under the Plan. The
Award Agreement is subject to the terms and conditions of the Plan; 

  

	 	(d)	“Blackout Period” means any period during which a Participant is prevented from trading the Common Shares pursuant to a policy of the Company,
including but not limited to the Company’s insider trading policy, as amended and in force from time to time, any lockup or similar agreement described in the First Registration Statement, and any lockup or similar agreement between the Company
and a third party restricting the trading of Common Shares; 

  

	 	(e)	“Board of Directors” means the board of directors of the Company; 

 

	 	(f)	“Business Day” means a day, other than Saturday, Sunday and any other day which is a statutory holiday in British Columbia Canada or New York U.S.A.;

	 	(g)	“Cause” with respect to any Participant, shall mean (i) a Participant’s willful misconduct, (ii) a willful failure of a Participant to
perform his or her duties, (iii) a Participant’s insubordination, theft, dishonesty, or any other willful conduct that is detrimental to the Company or its subsidiaries, (iv) cause for termination of employment or other service
contract at common law, or (v) such other cause as the Board of Directors in good faith reasonably determines provides cause for the discharge of the Participant or termination of the Participant’s relationship with the Company;

  

	 	(h)	“Change of Control” means: 

  

	 	(i)	the acquisition by any person or persons acting jointly or in concert (as determined by the Securities Act) (“Person”), whether directly or
indirectly, of voting securities of the Company that, together with all other voting securities of the Company held by such Person, constitute in the aggregate more than 50% of all outstanding voting securities of the Company; provided, however,
that for purposes of this subsection, the acquisition of additional securities by any one Person, who is considered to own more than 50% of all outstanding voting securities of the Company will not be considered a Change of Control;

  

	 	(ii)	an amalgamation, arrangement or other form of business combination of the Company with another corporation that results in the holders of voting securities of that
other corporation holding, in the aggregate, more than 50% of all outstanding voting securities of the corporation resulting from the business combination; provided, however, that for purposes of this subsection, the acquisition of additional
securities by any one Person, who is considered to own more than 50% of all outstanding voting securities of the Company will not be considered a Change of Control; 

 

	 	(iii)	a change in the ownership of a substantial portion of the Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve
(12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market
value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection (iii), the following will not constitute a change in the ownership of a substantial portion of
the Company’s assets: (A) a transfer to a Related Entity, or (B) a transfer of assets by the Company to: (1) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the
Company’s stock, (2) an entity of which the Company has Control, (3) a Person, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the Company, or
(4) an entity of which a Person described in this subsection (iii)(B)(3) has Control. For purposes of this subsection (iii), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed
of, determined without regard to any liabilities associated with such assets; or 

  

	 	(iv)	any other transaction that is deemed to be a “Change of Control” for the purposes of this Plan by the Board of Directors, in its sole discretion;

 Notwithstanding the foregoing, a transaction will not be deemed a Change of Control for Awards granted to
Participants who are subject to U.S. taxation unless the transaction qualifies as a Change of Control event within the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury
Regulations and U.S. Internal Revenue Service guidance that has been promulgated or may be promulgated thereunder from time to time. 
 Further and for the avoidance of doubt, a transaction will not constitute a Change of Control if: (x) its sole purpose is to change the state or jurisdiction of the Company’s incorporation, or
(y) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. 

 

	 	(i)	“CEO” means the Chief Executive Officer of the Company; 

  
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	 	(j)	“Code” means the U.S. Internal Revenue Code of 1986, as amended. Reference to a specific section of the Code or regulation thereunder shall include
such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation; 

 

	 	(k)	“Committee” means a committee of directors or of other individuals satisfying applicable laws appointed by the Board of Directors, or a duly authorized
committee of the Board of Directors, in accordance with Article 3 hereof; 

  

	 	(l)	“Common Shares” means the common shares without par value in the capital of the Company; 

 

	 	(m)	“Consultant” means a person other than an employee, officer or director of the Company or of any of its subsidiaries that: 

 

	 	(i)	is engaged to provide services to the Company or any of its subsidiaries; 

  

	 	(ii)	provides the services under a written contract with the Company or of any of its subsidiaries; and 

 

	 	(iii)	spends or will spend a significant amount of time and attention on the affairs and business of the Company or of any of its subsidiaries, 

and includes, for an individual Consultant, a corporation of which such individual is an employee or shareholder; 

 

	 	(n)	“Control” by a person over a second person means the power to direct, directly or indirectly, the management and policies of the second person by
virtue of: 

  

	 	(i)	ownership of or direction over voting securities in the second person; 

  

	 	(ii)	a written agreement or indenture; 

  

	 	(iii)	being or Controlling the general partner of the second person; or 

  

	 	(iv)	being a trustee of the second person; 

  

	 	(o)	“Effective Date” has the meaning under paragraph 11.1 of the Plan. 

 

	 	(p)	“Eligible Persons” means directors, officers, employees or Consultants of the Company or of any of its subsidiaries, and an “Eligible
Person” shall have a corresponding meaning; 

  

	 	(q)	“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended; 

 

	 	(r)	“Exchange Program” means a program under which (i) outstanding Awards are surrendered or cancelled in exchange for awards of the same type (which
may have higher or lower exercise prices and different terms), awards of a different type, and/or cash, (ii) Participants would have the opportunity to transfer any outstanding Awards to a financial institution or other person or entity
selected by the Board of Directors, and/or (iii) the exercise price of an outstanding Award is increased or reduced. The Board of Directors will determine the terms and conditions of any Exchange Program, in its sole discretion;

  

	 	(s)	“Exercise Price” means the price per share at which Common Shares may be subscribed for by a Participant pursuant to a particular Share Option
Agreement, as further described under paragraph 7.1(c) of the Plan; 

  
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	 	(t)	“Fair Market Value Price” means, as of any date, the value of Common Shares determined as follows: 

 

	 	(i)	if the Common Shares are listed on a Stock Exchange, its Fair Market Value Price will be the closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such exchange or system on the day of determination, as reported in such other source as the Board of Directors deems reliable; 

 

	 	(ii)	if the Common Shares are regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value Price of a Common Share will be
the mean between the high bid and low asked prices for the Common Shares on the day of determination (or, if no bids and asks were reported on that date, as applicable, on the last trading date such bids and asks were reported), as reported in such
source as the Board of Directors deems reliable; 

  

	 	(iii)	for purposes of any Awards granted on the Registration Date, the Fair Market Value Price will be the initial price to the public as set forth in the final prospectus
included within the registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission for the initial public offering of the Company’s Common Shares; or 

 

	 	(iv)	in the absence of an established market for the Common Shares, the Fair Market Value Price will be determined in good faith by the Board of Directors.

 Notwithstanding the foregoing, if the determination date for the Fair Market Value Price occurs
on a day other than a Business Day, the Fair Market Value Price will be the price as determined in accordance with subsections (i) through (iv) above (as applicable) on the next Business Day, unless otherwise determined by the Board
of Directors; 
  

	 	(u)	“First Registration Statement” means the first registration statement that is filed by the Company and declared effective pursuant to
Section 12(g) of the Exchange Act, with respect to any class of the Company’s securities; 

  

	 	(v)	“Fiscal Year” means the fiscal year of the Company; 

  

	 	(w)	“Incentive Share Option” means an Option to purchase Common Shares with the intention that it qualify as an “incentive stock option”
within the meaning of Section 422 of the Code and the regulations and guidance promulgated thereunder, such intention being evidenced by the resolutions of the directors at the time of grant; 

 

	 	(x)	“Insider” has the meaning given to that term in the Securities Act and also includes associates and affiliates of the Insider, but does not include
directors or senior officers of a subsidiary or affiliate of the Company unless such director or senior officer: 

  

	 	(i)	in the ordinary course receives or has access to information as material facts or material changes concerning the Company before the material facts or material changes
are generally disclosed; 

  

	 	(ii)	is a director or senior officer of a “major subsidiary” of the Company (where “major subsidiary” has the meaning given to that term in National
Instrument 55-101 – Insider Reporting Exemptions); or 

  

	 	(iii)	is an insider of the Company in a capacity other than as a director or senior officer of the subsidiary or affiliate. 

For the purpose of this definition, the terms “affiliate”, “associate” and “subsidiary” have the meanings
given to them, respectively, in the Securities Act; 
  

	 	(y)	“NI 45-106” means National Instrument 45-106 – Prospectus and
Registration Exemptions; 

  

	 	(z)	“Optioned Shares” means the Common Shares that may be subscribed for by a Participant pursuant to a Share Option Agreement; 

  
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	 	(aa)	“Options” means share options granted hereunder to purchase Common Shares from treasury; 

 

	 	(bb)	“Outside Director” means a director who is not an employee (including officer) of the Company or an Affiliate; 

 

	 	(cc)	“Nonqualified Share Option” means an Option to purchase Common Shares other than an Incentive Share Option; 

 

	 	(dd)	“Participant” means an Eligible Person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Award; 

  

	 	(ee)	“Performance Criteria” means the one or more criteria that the Board of Directors shall select for purposes of establishing the performance goals for a
Performance Period; 

  

	 	(ff)	“Performance Period” means one or more periods of time, which may be of varying and overlapping duration, as the Board of Directors may select, over
which the attainment of one or more performance goals will be measured for the purpose of determining a Participant’s right to, and the payment of, a Performance Share Award. 

 

	 	(gg)	“Performance Share Award” means an award of Common Shares which is granted pursuant to the terms and conditions of Article 9; 

 

	 	(hh)	“Plan” means this 2014 Equity Incentive Plan, as the same may from time to time be supplemented, amended and/or restated and in effect;

  

	 	(ii)	“Registration Date” means the effective date of the First Registration Statement; 

 

	 	(jj)	“Related Entity” means, for a company or corporation, a Person that Controls or is Controlled by the Company or that is Controlled by the same Person
that controls that company or corporation; 

  

	 	(kk)	“Restricted Share Award” means an award of Common Shares which is granted pursuant to the terms and conditions of Article 9; 

 

	 	(ll)	“Restricted Share Unit Award” means a bookkeeping entry representing an amount equal to the Fair Market Value of one Common Share, granted pursuant to
the terms and conditions of Article 9; 

  

	 	(mm)	“Retirement” means retirement as an employee and/or officer of the Company, and if there is any question on whether a cessation of employment is by way
of a retirement or not, the determination by the CEO (or in the CEO’s absence or in the case of a situation involving the cessation of employment of an executive officer of the Company, the Compensation Committee of the Board of Directors or
the independent members of the Board of Directors) shall be conclusive and binding on the Participant; 

  

	 	(nn)	“Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the
Plan. 

  

	 	(oo)	“Section 16(b)” means Section 16(b) of the Exchange Act; 

 

	 	(pp)	“Securities Act” means the Securities Act (British Columbia); 

 

	 	(qq)	“Share Appreciation Right” means a right to receive the appreciation on Common Shares that is granted pursuant to the terms and conditions of Article
9; 

  

	 	(rr)	“Share Award” means any Restricted Share Award, Restricted Share Unit Award, Share Appreciation Right, Performance Share Award, or any Other Share
Award granted under the Plan; 

  

	 	(ss)	“shareholder approval” means the approval as evidenced by a resolution passed by a simple majority of votes cast at a meeting of holders of Common
Shares (unless required by the Stock Exchanges to exclude the votes cast by Insiders in relation to amendments benefiting Insiders); 

  
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	 	(tt)	“Stock Exchanges” means such stock exchanges or other organized market on which the Common Shares are listed or posted for trading, including the
NASDAQ Stock Market LLC; 

  

	 	(uu)	“subsidiary” has the meaning assigned thereto under the Securities Act (British Columbia) as the same may from time to time be amended or
re-enacted; and 

  

	 	(vv)	“Trading Day”, with respect to any Stock Exchange, means a day on which securities may be traded through the facilities of such Stock Exchange.

  

	2.2	Any question arising as to the interpretation of this Plan will be determined by the Board of Directors and, absent manifest error, such determination will be
conclusive and binding on the Company and all Participants. 

  

	2.3	In this Plan, words importing the singular number only include the plural and vice versa, words importing any gender include all genders and words importing
persons include individuals, corporations, limited and unlimited liability companies, general and unlimited partnerships, associations, trusts, incorporated organizations, joint ventures and governmental authorities. 

ARTICLE 3 
 ADMINISTRATION OF PLAN 
  

	3.1	This Plan will be administered by the Board of Directors. The Board of Directors may delegate some or all of the administration of the Plan to a Committee or
Committees. If administration of the Plan is delegated to a Committee, the Committee will have, in connection with the administration of the Plan, the powers theretofore possessed by the Board of Directors that have been delegated to the Committee,
including the power to delegate to a subcommittee of the Committee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board of Directors will thereafter be to the Committee or subcommittee,
as applicable). Any delegation of administrative powers will be reflected in resolutions, not inconsistent with the provisions of the Plan, adopted from time to time by the Board of Directors or the Committee (as applicable). The Board of Directors
may retain the authority to concurrently administer the Plan with the Committee and may, at any time, revest to the Board of Directors some or all of the powers previously delegated. For the purpose of delegation of administration of the Plan, one
or more of the CEO and/or officers of the Company, if designated by the Board of Directors, will be deemed a Committee. 

  

	3.2	To the extent that the Board of Directors determines it to be desirable to qualify Awards granted hereunder as “performance-based compensation” within the
meaning of Section 162(m) of the Code, the Plan will be administered by a Committee of two (2) or more “outside directors” within the meaning of Section 162(m) of the Code. To the extent desirable to qualify
transactions hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder will be structured to satisfy the requirements for exemption under Rule 16b-3. 

 

	3.3	The Board of Directors will take such steps which in its opinion are required to ensure that the Committee to which it has delegated the power to ensure that it has the
necessary authority to fulfill its functions under this Plan. 

  

	3.4	Subject to the provisions of the Plan, the Board of Directors, and in the case of a Committee, subject to the specific duties delegated by the Board of Directors to
such Committee, will have the authority, in its discretion: 

  

	 	(a)	to determine the Fair Market Value; 

  

	 	(b)	to select the Eligible Persons to whom Awards may be granted hereunder; 

  

	 	(c)	to determine the number of Shares to be covered by each Award granted hereunder; 

 

	 	(d)	to approve forms of Award Agreements for use under the Plan; 

  

	 	(e)	to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder. Such terms and conditions include, but are not
limited to, the exercise price, the time or times when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Award or the
Shares relating thereto, based in each case on such factors as the Board of Directors (or Committee appointed by the Board of Directors) will determine; 

  
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	 	(f)	to institute and determine the terms and conditions of an Exchange Program; 

 

	 	(g)	to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan; 

 

	 	(h)	to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of
satisfying applicable foreign laws or for qualifying for favorable tax treatment under applicable foreign laws; 

  

	 	(i)	to modify or amend each Award (subject to Article 11 of the Plan), including but not limited to the discretionary authority to extend the post-termination
exercisability period of Awards and to extend the maximum term of an Option (subject to paragraph 8.1(d) of the Plan regarding Incentive Share Options); 

 

	 	(j)	to allow to satisfy withholding tax obligations in such manner as prescribed in paragraph 10.7 of the Plan; 

 

	 	(k)	to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by the Board of Directors;

  

	 	(l)	to allow a Participant to defer the receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant, as applicable, under an
Award; and 

  

	 	(m)	to make all other determinations deemed necessary or advisable for administering the Plan. 

 

	3.5	The Board of Directors has the authority to determine all questions arising out of the Plan and any Award granted pursuant to the Plan, which interpretations and
determinations will be conclusive and binding on the Company and all other affected persons. 

 ARTICLE 4

 REGULATIONS 
  

	4.1	The Board of Directors may from time to time establish such regulations, make such determinations and interpretations and take such steps in connection with this Plan
which, in its opinion, are necessary or desirable for the administration of this Plan. 

 ARTICLE 5

 COMPLIANCE WITH LAWS 
  

	5.1	The Plan, the grant, exercise, vesting, and/or settlement of Awards under the Plan and the Company’s obligation to issue Common Shares on exercise, vesting, or
settlement of Awards will be subject to all applicable federal, provincial and foreign laws, rules and regulations and the rules of any regulatory authority or Stock Exchange on which the securities of the Company are listed. The Company shall not
be required, or in any way obliged, to grant Awards or issue Common Shares if such grant or issuance would require registration of the Plan or of any Awards or Common Shares under the securities laws of any jurisdiction other than Canada or the
United States. Common Shares issued to a Participant pursuant to the exercise, vesting, or settlement of an Award may be subject to limitations on sale or resale under applicable securities laws. 

 

	5.2	The Board of Directors may from time to time take such steps and require such documentation from Eligible Persons or Participants which in its opinion are necessary or
desirable to ensure compliance with all applicable laws, the bylaws, rules and regulations of any Stock Exchanges. 

  

	5.3	The Board of Directors may also from time to time take such steps which in its opinion are necessary or desirable to restrict the transferability of any Common Shares
acquired on the exercise, vesting, or settlement of any Award in order to ensure such compliance, including, where applicable, the endorsement of a legend on any certificate representing Common Shares acquired on the exercise, vesting, or settlement
of any Award to the effect that such Common Shares may not be offered, sold or delivered except in compliance with the applicable securities laws and regulations of Canada or the United States. 

  
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 ARTICLE 6 
 COMMON SHARES SUBJECT TO PLAN 
  

	6.1	Subject to adjustment provided for herein, and the annual increase provided for below, the initial number of Common Shares that may be issued pursuant to the Plan for
the period from the Effective Date will be 2,000,000 Common Shares (the “Share Reserve”). In addition, the Share Reserve will increase on the first Business Day of each of the Fiscal Years (without the approval of the Company’s
shareholders), commencing on January 1, 2015, by an amount which shall be determined by the Board of Directors on or before the first Business Day of each Fiscal Year, such amount to be equal to the least of (i) 5,000,000 Common
Shares, (ii) 4% of the outstanding Common Shares on the last Business Day of the immediately preceding Fiscal Year, or (iii) such number of Common Shares determined by the Board of Directors. 

 

	6.2	The Board of Directors will reserve for allotment from time to time out of the authorized but unissued Common Shares sufficient Common Shares to provide for issuance of
all Common Shares which are issuable under all outstanding Options or Share Awards. 

  

	6.3	Upon the expiry or termination of an Award which has not been exercised in full, is surrendered pursuant to an Exchange Program, or, with respect to a Restricted Share
Award, Restricted Share Unit Award, or Performance Share Award is forfeited to or repurchased by the Company due to failure to vest, the number of unpurchased Common Shares reserved for issuance under that Award (or for Awards other than Options or
Share Appreciation Rights the forfeited or repurchased Common Shares) shall become available for issue for the purpose of additional Awards which may be granted under this Plan (unless the Plan has terminated). With respect to Share
Appreciation Rights, only Common Shares actually issued (i.e., the net Common Shares issued) pursuant to a Share Appreciation Right will cease to be available under the Plan; all remaining Common Shares under Share Appreciation Rights will
remain available for future grant or sale under the Plan (unless the Plan has terminated). Common Shares that have actually been issued under the Plan under any Award will not be returned to the Plan and will not become available for future
distribution under the Plan; provided, however, that if Shares issued pursuant to Restricted Share Awards, Restricted Share Unit Awards, or Performance Share Awards are repurchased by the Company or are forfeited to the Company, such Common Shares
will become available for future grant under the Plan. Common Shares used to pay the exercise price of an Award or to satisfy the tax withholding obligations related to an Award will become available for future grant or sale under the Plan. To the
extent an Award under the Plan is paid out in cash rather than Common Shares, such cash payment will not result in reducing the number of Common Shares available for issuance under the Plan. Notwithstanding the foregoing and, subject to adjustment
as provided in paragraph 10.3, the maximum number of Common Shares that may be issued upon the exercise of Incentive Share Options will equal the aggregate Common Share number stated in the first sentence of paragraph 6.1, plus, to the extent
allowable under Section 422 of the Code and the Treasury Regulations promulgated thereunder, any Common Shares that become available for issuance under the Plan pursuant to the first sentence of paragraph 6.1 and this paragraph 6.3.

  

	6.4	Participation in this Plan will be entirely voluntary and any decision not to participate will not affect an Eligible Person’s employment or other service
relationship with the Company or any Related Entity. 

  

	6.5	Nothing in this Plan or in any Award Agreement will confer on any Participant any right to remain as an employee, officer, director or Consultant of the Company or any
Related Entity. 

  

	6.6	Nothing herein or otherwise shall be construed so as to confer on any Participant any rights as a shareholder of the Company with respect to any Common Shares reserved
for the purpose of any Award. 

  

	6.7	A Participant will only have rights as a shareholder of the Company with respect to Shares that the Participant acquires through the exercise of an Option in accordance
with its terms. 

  

	6.8	A holder of a Share Award will only have rights as a shareholder of the Company with respect to the Common Shares subject to the Share Award as specified and subject to
restrictions as set out in the relevant agreement evidencing such Share Award. 

  
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 ARTICLE 7 
 GRANT OF OPTIONS 
  

	7.1	Subject to the rules set out below, the Board of Directors may from time to time grant to any Eligible Person one or more Options as the Board of Directors deems
appropriate: 

  

	 	(a)	Date Option Granted. The date on which an Option will be deemed to have been granted under this Plan will be the date on which the Board of Directors authorizes
the grant of such Option or such other date as may be specified by the Board of Directors at the time of such authorization. 

  

	 	(b)	Number of Common Shares. The number of Common Shares that may be purchased under any Option by a Participant will be determined by the Board of Directors
provided that such number may not be greater than the maximum number permitted under the applicable rules and regulations of all regulatory authorities to which the Company is subject, including the Stock Exchanges. A Participant, at the time of
granting an Option, may hold more than one Option. 

  

	 	(c)	Exercise Price. The exercise price (the “Exercise Price”) per Common Share under each Option will be determined by the Board of Directors
by reference to the fair market price(s) of the Common Shares on the primary Stock Exchange for which most trading of the Common Shares occurs, generally by reference to the closing market price of the Common Shares, provided that such price
may not be less than the lowest price permitted under the applicable rules and regulations of all regulatory authorities to which the Company is subject, including those of the Stock Exchanges. Notwithstanding the foregoing, in the case of a
Nonqualified Share Option or Incentive Share Option, the Exercise Price will be no less than one hundred percent (100%) of the Fair Market Value Price per Common Share on the date of grant, subject to the limitations applicable to Incentive
Share Options set forth in paragraph 8.1(b) of the Plan. Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than one hundred percent (100%) of the Fair Market Value Price per Common Share on the
date of grant pursuant to a transaction described in, and in a manner consistent with, Section 424(a) of the Code. 

  

	 	(d)	Award Agreement. Each Option will be evidenced by an Award Agreement, which incorporates such terms and conditions as the Board of Directors, in its discretion,
deems appropriate and consistent with the provisions of this Plan. Each Award Agreement will be executed by the Eligible Person to whom the Option is granted and on behalf of the Company by any member of the Board of Directors, the CEO or the
Corporate Secretary of the Company or such other person as the Board of Directors may designate for such purpose. 

  

	 	(e)	Expiry of Options. Each Option will expire on the earlier of: 

  

	 	(i)	the date determined by the Board of Directors and specified in the Award Agreement pursuant to which such Option is granted, provided that such date may not be later
than the earlier of (A) the date which is the tenth anniversary of the date on which such Option is granted (except (1) in the circumstances where the tenth anniversary falls within, or within five Business Days after, the end of a
Blackout Period, then instead of the tenth anniversary, the relevant date shall be the fifth Business Day after the end of such Blackout Period; provided, however, that the extension in this subsection 7(e)(i)(A)(1) shall be applied to any Option
held by a Participant who is a U.S. taxpayer only to the extent that it would not violate Code Section 409A and (2) in the circumstances described in paragraph 8.1(b) of the Plan) and (B) the latest date permitted under the
applicable rules and regulations of all regulatory authorities to which the Company is subject, including the Stock Exchanges; 

  

	 	(ii)	 in the event the Participant ceases to be an Eligible Person for any reason, other than death of the Participant, such period of time after the date on
which the Participant ceases to be an Eligible Person as may be specified by the Board of Directors, which period may be specified in the specific Award Agreement with respect to such Option (but in no event granted beyond the original expiry date
of the Option as provided for in subparagraph (i) above). In the absence of a specified time in the Award Agreement, the Option will remain exercisable for 90 days following the date the Participant ceases to be an Eligible Person due to
termination without Cause or resignation (or 180 days following the date Participant 

  
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ceases to be an Eligible Person due to such Participant’s Retirement, 365 days following the date Participant ceases to be an Eligible Person due to such Participant’s disability, and
immediately upon Participant ceasing to be an Eligible Person due to the termination of such Participant as an Eligible Person for Cause). Unless otherwise provided by the Board of Directors, if on the date the Participant ceases to be an Eligible
Person, the Participant is not vested as to his or her entire Option, the Common Shares covered by the unvested portion of the Option will revert to the Plan. If after the date the Participant ceases to be an Eligible Person, the Participant does
not exercise his or her Option within the time specified by the Board of Directors, the Option will terminate, and the Common Shares covered by such Option will revert to the Plan; 

 

	 	(iii)	in the case of the death of a Participant prior to: (A) the Participant ceasing to be an Eligible Person; or (B) the date which is the number of days
determined under subparagraph (ii) above, from the date on which the Participant ceased to be an Eligible Person; the date which is the 365th day after the date of death of such Participant or such other date as may be specified by the Board of
Directors and which period will be specified in the Award Agreement with respect to such Option (but in no event beyond the original expiry date of the Option as provided for in subparagraph (i) above). Unless otherwise provided by the Board of
Directors, if at the time of death Participant is not vested as to his or her entire Option, the Common Shares covered by the unvested portion of the Option will immediately revert to the Plan. If the Option is not so exercised within the time
specified herein, the Option will terminate, and the Common Shares covered by such Option will revert to the Plan; 

  

	 	(iv)	notwithstanding the foregoing provisions of subparagraphs (ii) and (iii) of this paragraph 7.1(e), the Board of Directors may, subject to regulatory
approval, at any time prior to expiry of an Option extend the period of time within which an Option held by a deceased Participant may be exercised or within which an Option may be exercised by an Participant who has ceased to be an Eligible Person,
but such an extension shall not be granted beyond the original expiry date of the Option as provided for in subparagraph (i) above; and 

  

	 	(v)	notwithstanding the foregoing provisions, if the expiry of an Option pursuant to subparagraphs (ii) and (iii) of this paragraph 7.1(e) occurs during
the Blackout Period applicable to the Participant or within five Business Days after the last day of a Blackout Period applicable to the Participant, the expiry date for the Option will be the last day of such five Business Day period, except
in the event of expiry of Options following termination of a Participant’s employment or services (for a director) or contract as a Consultant for Cause. 

 

	 	(f)	Exercise of Options. 

  

	 	(i)	The Board of Directors may impose such limitations or conditions on the exercise or vesting of any Option as the Board of Directors, in its discretion, deems
appropriate. Each Award Agreement will provide that the Option granted thereunder may be exercised by notice signed by the Participant and accompanied by full payment for the Common Shares being purchased or by other means, including without
limitation electronic means via on-line arrangements, as the Board of Directors may from time to time approve and allow. 

  

	 	(ii)	 The Board of Directors will determine the acceptable form of consideration for exercising an Option, including the method of payment. In the case of an
Incentive Stock Option, the Board of Directors will determine the acceptable form of consideration at the time of grant. Such consideration may consist entirely of: (A) cash; (B) cheque; (C) other Common Shares, provided that such
Common Shares have a Fair Market Value Price on the date of surrender equal to the aggregate exercise price of the Common Shares as to which such Option will be exercised and provided that accepting such Common Shares will not result in any adverse
accounting consequences to the Company, as the Board of Directors determines in its sole discretion; (D) consideration received by the Company under a broker-assisted (or other) cashless exercise program (whether through a broker or
otherwise) implemented by the Company in connection with the Plan; (E) by net exercise; (F) such other consideration 

  
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and method of payment for the issuance of Common Shares to the extent permitted by the applicable securities laws and all applicable rules and regulations of all regulatory authorities to which
the Company is subject; or (G) any combination of the foregoing methods of payment. 

 ARTICLE 8

 INCENTIVE SHARE OPTION LIMITATIONS 
  

	8.1	To the extent required by Section 422 of the Code, if applicable, Incentive Share Options shall be subject to the following additional terms and conditions and if
there is any conflict between the terms of this Article and other provisions under the Plan, the provisions under this Article shall prevail: 

  

	 	(a)	Dollar Limitation. To the extent the aggregate Fair Market Value (determined as of the grant date) of Common Shares with respect to which Incentive
Share Options are exercisable for the first time during any calendar year (under the Plan and all other Share option plans of the Company) exceeds U.S. $100,000, such portion in excess of U.S. $100,000 shall be treated as a Nonqualified Share
Option. In the event the Participant holds two or more such Options that become exercisable for the first time in the same calendar year, such limitation shall be applied on the basis of the order in which such Options are granted.

  

	 	(b)	10% Shareholders. If a Participant owns 10% or more of the total voting power of all classes of the Company’s shares, then the exercise price per
share of an Incentive Share Option shall not be less than 110% of the fair market value of the Common Shares on the grant date and the Option term shall not exceed five years. The determination of 10% ownership shall be made in accordance with
Section 422 of the Code. 

  

	 	(c)	Eligible Employees. Eligible Persons who are not employees of the Company or one of its parent corporations or subsidiary corporations may not be granted
Incentive Share Options. For purposes of this paragraph (c), “parent corporation” and “subsidiary corporation” shall have the meanings attributed to those terms for purposes of Section 424 of the Code.

  

	 	(d)	Term. The term of an Incentive Share Option shall not exceed 10 years. 

 

	 	(e)	Exercisability. To qualify for Incentive Share Option tax treatment, an Option designated as an Incentive Share Option must be exercised within three
months after termination of employment for reasons other than death, except that, in the case of termination of employment due to total disability, such Option must be exercised within one year after such termination. Employment shall not be deemed
to continue beyond the first 90 days of a leave of absence unless the Participant reemployment rights are guaranteed by statute or contract. For purposes of this paragraph (d), “total disability” shall mean a mental or physical
impairment of the Participant which is expected to result in death or which has lasted or is expected to last for a continuous period of 12 months or more and which causes the Participant to be unable, in the opinion of the Company and two
independent physicians, to perform his or her duties for the Company and to be engaged in any substantial gainful activity. Total disability shall be deemed to have occurred on the first day after the Company and the two independent physicians have
furnished their opinion of total disability to the Board of Directors. 

  

	 	(f)	Assignability. No Incentive Share Option granted under the Plan may be assigned or transferred by the Participant other than by will or by the laws of
descent and distribution, and during the Participant’s lifetime, such Incentive Share Option may be exercised only by the Participant. 

 Grant. No Incentive Share Options may be granted more than ten years after the later of (i) the adoption of the Plan by the Board and (ii) the adoption by the Board of any amendment to the
Plan that constitutes the adoption of a new plan for purposes of Section 422 of the Code. 

  
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 ARTICLE 9 
 PROVISIONS OF SHARE AWARDS OTHER THAN OPTIONS. 
 The Board of Directors may
in its discretion determine to grant other forms of Awards other than Options under this Plan on the terms and conditions set out below and all such other forms of share awards will be subject to the Share Reserve: 

 

	9.1	Restricted Share Awards. 

  

	 	(a)	Each Restricted Share Award will be evidenced by an Award Agreement that shall contain such terms and conditions as the Board of Directors shall deem appropriate. The
terms and conditions of each Award Agreement evidencing a Restricted Share Award may change from time to time, and the terms and conditions of separate Restricted Share Award need not be identical, provided, however, that each Award Agreement
evidencing a Restricted Share Award shall conform to (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 

 

	 	(i)	Consideration. A Restricted Share Award may be awarded in consideration for (A) cash, cheque, bank draft or money order payable to the Company;
(B) past services actually rendered to the Company or an Affiliate; or (C) any other form of legal consideration that may be acceptable to the Board of Directors, in its sole discretion, and permissible under applicable law.

  

	 	(ii)	Vesting; Other Restrictions. Common Shares subject to a Restricted Share Award may be subject to forfeiture to or repurchase by the Company in accordance
with a vesting schedule or other restrictions to be determined by the Board of Directors as specified in the Award Agreement evidencing the Restricted Share Award. Except as otherwise provided in this Plan, Common Shares subject to the Restricted
Share Award will be released from escrow as soon as practicable after such Common Shares vest or the restrictions lapse or at such other time as the Board of Directors may determine. The Board of Directors, in its discretion, may accelerate the time
at which any vesting conditions or other restrictions will lapse or be removed. On the date set forth in the Award Agreement, the Restricted Share Award for which restrictions have not lapsed will revert to the Company and again will become
available for grant under the Plan. 

  

	 	(iii)	Voting Rights; Dividend and Other Distributions. Before the Common Shares subject to a Restricted Share Award vest or are otherwise subject to restrictions,
Participants holding Common Shares subject to the Restricted Share Award granted hereunder (A) may exercise full voting rights with respect to those Common Shares, unless the Board of Directors determines otherwise and (B) will be entitled
to receive all dividends and other distributions paid with respect to such Common Shares, unless the Board of Directors provides otherwise. If any such dividends or distributions are paid in Common Shares, the Common Shares will be subject to the
same restrictions on transferability and forfeitability as the Common Shares subject to the Restricted Share Award with respect to which they were paid. 

  

	9.2	Restricted Share Unit Awards. 

  

	 	(a)	Each Restricted Share Unit Award will be evidenced by an Award Agreement that shall contain such terms and conditions as the Board of Directors shall deem appropriate.
The terms and conditions of each Award Agreement evidencing a Restricted Share Unit Award may change from time to time, and the terms and conditions of separate Restricted Share Unit Award need not be identical, provided, however, that each
Award Agreement evidencing a Restricted Share Unit Award shall conform to (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 

 

	 	(i)	Consideration. At the time of grant of a Restricted Share Unit Award, the Board of Directors will determine the consideration, if any, to be paid by the
Participant upon delivery of each Common Share subject to the Restricted Share Unit Award. The consideration to be paid (if any) by the Participant for each Common Share subject to a Restricted Share Unit Award may be paid in any form of legal
consideration that may be acceptable to the Board of Directors in its sole discretion and permissible under applicable law. 

  
 -12-

	 	(ii)	Vesting. At the time of the grant of a Restricted Share Unit Award, the Board of Directors may impose such restrictions or conditions to the vesting of the
Restricted Share Unit Award as it, in its sole discretion, deems appropriate. The Board of Directors, in its discretion, may accelerate the time at which any vesting conditions or other restrictions will lapse or be removed. On the date set forth in
the Award Agreement, the Restricted Share Unit Award for which restrictions have not lapsed will revert to the Company and again will become available for grant under the Plan. Except as otherwise provided in the applicable Award Agreement, such
portion of the Restricted Share Unit Award that has not vested will be forfeited upon the Participant’s termination of services or employment or engagement with the Company. 

 

	 	(iii)	Payment. Upon meeting the applicable vesting criteria, a Restricted Share Unit Award (or vested portion thereof) may be settled by the delivery of
Common Shares, its cash equivalent, or in any combination thereof, as determined by the Board of Directors and contained in the Award Agreement evidencing the Restricted Share Unit Award. 

 

	 	(iv)	Additional Restrictions. At the time of the grant of a Restricted Share Unit Award, the Board of Directors, as it deems appropriate, may impose such restrictions
or conditions that delay the delivery of the Common Shares (or their cash equivalent) subject to a Restricted Share Unit Award to a time after the vesting of such Restricted Share Unit Award. 

 

	 	(v)	Dividend Equivalents. Dividend equivalents may be credited in respect of Common Shares covered by a Restricted Share Unit Award, as determined by the Board of
Directors and contained in the Award Agreement evidencing Restricted Share Units. At the sole discretion of the Board of Directors, such dividend equivalents may be converted into additional Common Shares covered by the Restricted Share Unit Award
in such manner as determined by the Board of Directors. Any additional Common Shares covered by the Restricted Share Unit Award credited by reason of such dividend equivalents will be subject to all the terms and conditions of the underlying Award
Agreement to which they relate. 

  

	9.3	Share Appreciation Rights. 

  

	 	(a)	Each Share Appreciation Rights Award will be evidenced by an Award Agreement that shall contain such terms and conditions as the Board of Directors shall deem
appropriate. The terms and conditions of each Award Agreement evidencing a Share Appreciation Rights Award may change from time to time, and the terms and conditions of separate Share Appreciation Right Award need not be identical, provided,
however, that each Award Agreement evidencing a Share Appreciation Rights Award shall conform to (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions:

  

	 	(i)	Term. No Share Appreciation Right shall be exercisable after the expiration of ten (10) years from the date of its grant or such shorter period specified in
the Share Appreciation Right Agreement. 

  

	 	(ii)	Exercise Price. The exercise under each Share Appreciation Right will be determined by the Board of Directors by reference to the fair market price(s) of
the Common Shares on the primary Stock Exchange for which most trading of the Common Shares occurs, generally by reference to the closing market price of the Common Shares, provided that such price may not be less than one hundred percent
(100%) of the Fair Market Value Price per Common Share on the date of grant. 

  

	 	(iii)	Calculation of Appreciation. The appreciation distribution payable on the exercise of a Share Appreciation Right will be not greater than an amount equal to the
excess of (A) the aggregate Fair Market Value Price (on the date of the exercise of the Share Appreciation Right) of a number of Common Shares equal to the number of Common Share equivalents in which the Participant is vested under such
Share Appreciation Right, and with respect to which the Participant is exercising the Share Appreciation Right on such date, over (B) the aggregate Exercise Price of such number of Common Share equivalents being exercised.

  
 -13-

	 	(iv)	Vesting. At the time of the grant of a Share Appreciation Right, the Board of Directors may impose such restrictions or conditions to the vesting of such Share
Appreciation Right as it, in its sole discretion, deems appropriate. 

  

	 	(v)	Exercise. To exercise any outstanding Share Appreciation Right, the Participant must provide written notice of exercise to the Company in compliance with the
provisions of the Award Agreement evidencing such Share Appreciation Right. 

  

	 	(vi)	Payment. The appreciation distribution in respect of a Share Appreciation Right may be paid in Common Shares, in cash, in any combination of the two or in
any other form of consideration, as determined by the Board of Directors and set forth in the Award Agreement evidencing such Share Appreciation Right. 

  

	 	(vii)	Expiry of Share Appreciation Rights. Each Share Appreciation Right will expire upon the date determined by the Board of Directors, in its sole discretion, and
set forth in the Award Agreement evidencing Share Appreciation Rights. Notwithstanding the foregoing, the rules of paragraph 7.1(e) also will apply to Share Appreciation Rights. 

 

	9.4	Performance Share Awards. 

  

	 	(a)	Each Performance Share Award will be evidenced by an Award Agreement that shall contain such terms and conditions as the Board of Directors shall deem appropriate. The
terms and conditions of each Award Agreement evidencing a Performance Share Award may change from time to time, and the terms and conditions of separate Performance Share Award need not be identical, provided, however, that each Award
Agreement evidencing a Performance Share Award shall conform to (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 

 

	 	(i)	Performance Objectives and Other Terms. The Board of Directors will set performance objectives or other vesting provisions (including, without limitation,
continued status as an Eligible Person) in its discretion which, depending on the extent to which they are met, will determine the number or value of Common Shares subject to a Performance Share Award that will be paid out to the Participant.
The time period during which the performance objectives or other vesting provisions must be met will be called the “Performance Period.” Each Performance Share Award will be evidenced by an Award Agreement that will specify the Performance
Period, and such other terms and conditions as the Board of Directors, in its sole discretion, will determine. The Board of Directors may set performance objectives based upon the achievement of Company-wide, divisional, business unit or individual
goals (including, but not limited to, continued employment or service), applicable federal, provincial or state securities laws, or any other basis determined by the Board of Directors in its discretion. 

 

	 	(ii)	Vesting. After the applicable Performance Period has ended, the holder of Performance Share Award will be entitled to receive a payout of the number of Common
Shares subject to the Performance Share Award earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance objectives or other vesting provisions have been achieved. After
the grant of a Performance Share Award, the Board of Directors, in its sole discretion, may reduce or waive any performance objectives or other vesting provisions for such Common Shares subject to the Performance Share Award.

  

	 	(iii)	Payment. Upon meeting the applicable vesting criteria, a Performance Share Award (or vested portion thereof) may be settled by the delivery of Common
Shares, its cash equivalent, or in any combination thereof, as determined by the Board of Directors and contained in the Award Agreement evidencing the Performance Share Award. 

 

	 	(iv)	Expiry of Performance Share Award. On the date set forth in the Award Agreement, all unearned or unvested Common Shares subject to a Performance Share
Award will be forfeited to the Company, and again will be available for grant under the Plan. 

  
 -14-

 ARTICLE 10 

PROVISIONS APPLICABLE TO AWARDS 
  

	10.1	Leave of Absence/Transfer Between Locations. Unless the Board of Directors provides otherwise and subject to applicable laws, vesting of Awards granted hereunder
will be suspended during any unpaid leave of absence. A Participant will not cease to be an employee in the case of (a) any leave of absence approved by the Company, (b) transfers between locations of the Company or between the Company,
its parent, or any subsidiary, or (c) any statutory-protected leave. For purposes of Incentive Share Options, no such leave may exceed 3 months, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If
reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, then 6 months following the 1st day of such leave any Incentive Share Option held by the Participant will cease to be treated as an Incentive
Share Option and will be treated for U.S. tax purposes as a Nonqualified Share Option. 

  

	10.2	Restrictions on Transfer. Unless the Board of Directors provides otherwise, an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed
of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Participant, only by the Participant. If the Board of Directors makes an Award transferable, such Award will contain such
additional terms and conditions as the Board of Directors deems appropriate. 

  

	10.3	Adjustments; Dissolution or Liquidation; Merger or Change of Control. 

 

	 	(a)	Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Common Shares, other securities, or other property),
recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Common Shares or other securities of the Company, or other change in the corporate structure of
the Company affecting the Common Shares occurs, the Board of Directors, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan, will adjust the number and class of Common
Shares that may be delivered under the Plan and/or the number, class, and price of Common Shares covered by each outstanding Award, and the Share Reserve. 

  

	 	(b)	Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Board of Directors will notify each Participant as
soon as practicable prior to the effective date of such proposed transaction. To the extent it has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action. 

 

	 	(c)	Change of Control. Subject to the immediately following paragraph, in the event of a merger of the Company with or into another corporation or other
entity or a Change of Control, each outstanding Award will be treated as the Board of Directors determines, including, without limitation, that (i) Awards may be assumed, or substantially equivalent Awards will be substituted, by the acquiring
or succeeding corporation (or an affiliate thereof) with appropriate adjustments as to the number and kind of shares and prices; (ii) upon written notice to a Participant, that the Participant’s Awards will terminate upon or
immediately prior to the consummation of such merger or Change of Control; (iii) outstanding Awards will vest and become exercisable, realizable, or payable, or restrictions applicable to an Award will lapse, in whole or in part prior to or
upon consummation of such merger or Change of Control, and, to the extent the Board of Directors determines, terminate upon or immediately prior to the effectiveness of such merger or Change of Control; (iv) (A) the termination of an Award
in exchange for an amount of cash and/or property, if any, equal to the amount that would have been attained upon the exercise of such Award or realization of the Participant’s rights as of the date of the occurrence of the transaction (and,
for the avoidance of doubt, if as of the date of the occurrence of the transaction the Board of Directors determines in good faith that no amount would have been attained upon the exercise of such Award or realization of the Participant’s
rights, then such Award may be terminated by the Company without payment), or (B) the replacement of such Award with other rights or property selected by the Board of Directors in its sole discretion; or (v) any combination of the
foregoing. In taking any of the actions permitted under this subparagraph (c), the Board of Directors will not be required to treat all Awards similarly in the transaction. 

In the event that the successor corporation does not assume or substitute for the Award consistent with subsection (i) of the
immediately preceding paragraph, the Participant will fully vest in and have the 

  
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right to exercise all of his or her outstanding Options and Share Appreciation Rights, including Common Shares as to which such Awards would not otherwise be vested or exercisable, all
restrictions on Restricted Share Awards and Restricted Share Unit Awards will lapse, and, with respect to Awards with performance-based vesting, all performance goals or other vesting criteria will be deemed achieved at one hundred percent
(100%) of target levels and all other terms and conditions met. In addition, if an Option or Share Appreciation Right is not assumed or substituted in the event of a Change of Control, the Board of Directors will notify the Participant in
writing or electronically that the Option or Share Appreciation Right will be exercisable for a period of time determined by the Board of Directors in its sole discretion, and the Option or Share Appreciation Right will terminate upon the expiration
of such period. 
 For the purposes of this subparagraph (c), an Award will be considered assumed if, following the Change of
Control, the Award confers the right to purchase or receive, for each Common Share subject to the Award immediately prior to the Change of Control, the consideration (whether stock, cash, or other securities or property) received in the Change
of Control by holders of Common Shares for each Common Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding
Common Shares); provided, however, that if such consideration received in the Change of Control is not solely common shares or common stock of the successor corporation or its Parent, the Board of Directors may, with the consent of the successor
corporation, provide for the consideration to be received upon the exercise of an Option or Share Appreciation Rights or upon the payout of a Restricted Share Unit, Performance Share Award, for each Common Share subject to such Award, to be solely
common shares or common stock of the successor corporation or its parent equal in fair market value to the per share consideration received by holders of Common Shares in the Change of Control. 

Notwithstanding anything in this subparagraph (c) to the contrary, an Award that vests, is earned or paid-out upon the satisfaction
of one or more performance goals will not be considered assumed if the Company or its successor modifies any of such performance goals without the Participant’s consent; provided, however, a modification to such performance goals only to
reflect the successor corporation’s post-Change of Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption. 
  

	 	(d)	Outside Director Awards. With respect to Awards granted to an Outside Director that are assumed or substituted for, if on the date of or following such
assumption or substitution the Participant’s status as a director of the Company or a director of the successor corporation, as applicable, is terminated other than upon a voluntary resignation by the Participant (which does not include
resignation at the request of the acquirer), then the Participant will fully vest in and have the right to exercise Options and/or Share Appreciation Rights as to all of the Common Shares underlying such Award, including those Common Shares which
would not otherwise be vested or exercisable, all restrictions on Restricted Share Awards and Restricted Share Unit Awards will lapse, and, with respect to Awards with performance-based vesting, all performance goals or other vesting criteria will
be deemed achieved at one hundred percent (100%) of target levels and all other terms and conditions met. 

  

	10.4	Outside Director Limitations 

  

	 	(a)	Cash-Settled Awards. No Outside Director may be granted, in any fiscal year of the Company, cash-settled Awards with a grant date fair value (determined
in accordance with U.S. generally accepted accounting principles) of more than US$500,000, increased to US$1,000,000 in connection with his or her initial service. 

 

	 	(b)	Share-Settled Awards. No Outside Director may be granted, in any fiscal year of the Company, share-settled Awards with a grant date fair value (determined
in accordance with U.S. generally accepted accounting principles) of more than US$500,000, increased to US$1,000,000 in connection with his or her initial service. 

  
 -16-

	10.5	Representations and Covenants of Award holder. Each Award Agreement will contain representations and covenants of the holder that: 

 

	 	(a)	the holder is a director, officer, employee or Consultant of the Company or of a subsidiary of the Company or a person otherwise approved as an “Eligible
Person” under this Plan by the Board of Directors on the date of grant; 

  

	 	(b)	the holder’s participation in the Plan is voluntary and the holder has not been induced to enter into such Award Agreement by the expectation of employment or
engagement as a Consultant or continued employment or engagement as a Consultant with the Company or any Affiliate; 

  

	 	(c)	the holder is aware that the grant of the Award and the issuance by the Common Shares thereunder are exempt from the obligation under applicable securities laws to file
a prospectus or other registration document (other than a registration statement on Form S-8 with the United States Securities and Exchange Commission) qualifying the distribution of the Awards or the Common Shares to be distributed thereunder
under any applicable securities laws and if such exemption for any reason becomes unavailable, the obligation of the Company to grant any Awards or issue any Common Shares upon the exercise, vesting, or settlement of an Award, as the case may be,
will cease; and 

  

	 	(d)	the holder or the Legal Representative, as the case may be, will prior to and upon any sale or disposition of any Common Shares purchased pursuant to the exercise of
the Share Awards, comply with all applicable securities laws and all applicable rules and regulations of all regulatory authorities to which the Company is subject, including the Stock Exchanges, and will not offer, sell or deliver any of such
Common Shares, directly or indirectly, in the United States or to any citizen or resident of, or any company, partnership or other entity created or organized in or under the laws of, the United States, or any estate or trust the income of which is
subject to United States federal income taxation regardless of its source, except in compliance with the securities laws of the United States. 

  

	10.6	Clawback/Recovery. All Awards granted under the Plan will be subject to recoupment in accordance with any clawback policy that the Company is required to adopt
pursuant to the listing standards of any Stock Exchange on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law. In addition, the Board of
Directors may impose such other clawback, recovery or recoupment provisions in an agreement evidencing the grant of the Awards as the Board of Directors determines necessary or appropriate, including but not limited to a reacquisition right in
respect of previously acquired Common Shares. No recovery of compensation under such a clawback policy will be an event giving rise to a right to resign for “good reason” or “constructive termination” (or similar term) under
any agreement with the Company or any Affiliate. 

  

	10.7	Taxes 

  

	 	(a)	Withholding Requirements. Prior to the delivery of any Common Shares or cash pursuant to an Award (or exercise thereof) or such earlier time as any
tax withholding obligations are due, the Company will have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy U.S. or Canadian federal, provincial, state, local, foreign
or other taxes required to be withheld with respect to such Award (or exercise thereof). 

  

	 	(b)	Withholding Arrangements. The Board of Directors, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit a
Participant to satisfy such tax withholding obligation, in whole or in part by (without limitation) (i) paying cash, (ii) electing to have the Company withhold otherwise deliverable cash or Common Shares having a Fair Market Value
Price equal to the minimum statutory amount required to be withheld, or (c) delivering to the Company already-owned Common Shares having a Fair Market Value Price equal to the minimum statutory amount required to be withheld. The Fair Market
Value Price of the Common Shares to be withheld or delivered will be determined as of the date that the taxes are required to be withheld. 

  

	 	(c)	 Compliance With Code Section 409A. Awards will be designed and operated in such a manner that they are either exempt from the
application of, or comply with, the requirements of Code Section 409A such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Code Section 409A, except as otherwise
determined in the sole 

  
 -17-

	 	
discretion of the Board of Directors. The Plan and each Award Agreement under the Plan is intended to meet the requirements of Code Section 409A and will be construed and interpreted in
accordance with such intent, except as otherwise determined in the sole discretion of the Board of Directors. To the extent that an Award or payment, or the settlement or deferral thereof, is subject to Code Section 409A the Award will be
granted, paid, settled or deferred in a manner that will meet the requirements of Code Section 409A, such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Code
Section 409A. 

 ARTICLE 11 

SUSPENSION, AMENDMENT OR TERMINATION OF PLAN 
  

	11.1	The Plan will become effective upon the later to occur of (i) its adoption by the Board of Directors or (ii) the business day immediately prior to the
Registration Date (the “Effective Date”). It will continue in effect for a term of ten (10) years from the date adopted by the Board of Directors, unless terminated earlier under paragraph 11.2 of the Plan. 

 

	11.2	The Board of Directors will have the right at any time and from time to time to suspend, amend or terminate this Plan in any manner without consent or approval from
Participants or shareholders (provided that no such suspension, amendment or termination may be made that will materially prejudice the rights of any Participant under any Award previously granted to such Participant without consent by such
Participant). 

  

	11.3	The full powers of the Board of Directors as provided for in this Plan will survive the termination of this Plan until all Awards have been exercised or settled in full
or have otherwise expired. 

 ARTICLE 12 

APPLICABLE LAW 
  

	12.1	The laws of the Province of British Columbia shall apply to the Plan and any Award Agreement evidencing the grant of Awards granted hereunder and will be interpreted
and construed in accordance with the laws of the Province of British Columbia. 

  

	12.2	Subject to any written agreement between the parties, the parties will submit all their disputes arising out of or in connection with the Plan to the exclusive
jurisdiction of the courts of the Province of British Columbia. 

 ARTICLE 13 

 

	13.1	The Plan will be subject to shareholder approval within 12 months after the date the Plan is adopted by the Board. Such shareholder approval will be obtained in
the manner and to the degree required under applicable laws. 

  
 -18-

 SHARE OPTION AGREEMENT 

THIS AGREEMENT made on [            ] 

 

			
	AMONG:	 	
		
		 	Xenon Pharmaceuticals Inc., a company incorporated under the laws of Canada
		 	(the “Company”)
		
	AND:	 	
		
		 	«First Name» «Last Name» of «Address», «City», «StateProv» «Country»
«ZipPostal»
		
		 	(the “Optionee”)

 WHEREAS: 
 A.
The Optionee is a director, officer, employee or Consultant of the Company or of a subsidiary of the Company or a person otherwise approved by the Board of Directors as “Eligible Persons”; and 

B. The Company considers that the grant to the Optionee of an option to purchase Common Shares in the capital of the Company will promote the interests
of the Company by furnishing the Optionee with greater incentive to further develop and promote the business and financial success of the Company and by furthering the identity of interest of the Optionee with the shareholders of the Company
generally through share ownership in the Company; 
 NOW THEREFORE THIS AGREEMENT WITNESSES THAT in consideration of the mutual premises and
respective covenants and agreements herein contained, the parties hereto covenant and agree as follows: 
 ARTICLE I

 INTERPRETATION 
  

	1.1	Definitions 

 In this
Agreement unless there is something in the subject matter or context inconsistent therewith, words and terms used herein will have the meanings set forth. To the extent a capitalized term is used herein and not otherwise defined, it shall have the
meaning prescribed under the Plan: 
  

	 	(1)	“Affiliate” has the meaning ascribed thereto under the Canada Business Corporations Act in effect on the date hereof; 

	 	(2)	“Board of Directors” means the board of directors of the Company for the time being; 

 

	 	(3)	“Business Day” means a day other than Saturday, Sunday and any other day which is a legal holiday in British Columbia; 

 

	 	(4)	“Common Shares” means common shares without par value in the capital of the Company; 

 

	 	(5)	“Expiry Date” means the close of business on — or such later date as may be extended pursuant to the terms
of the Plan; 

  

	 	(6)	“Option” means the option to purchase Common Shares granted by this Agreement; 

 

	 	(7)	“Option Exercise Form” has the meaning under Section 2.4 of this Agreement; 

 

	 	(8)	“Plan” means the 2014 Equity Incentive Plan of the Company adopted by the Board of Directors on April      , 2014, as the same may from
time to time be supplemented or amended and in effect; 

  

	 	(9)	“Retirement” means retirement as an employee and/or officer of the Company, and if there is any question on whether a cessation of employment is by way of a
retirement or not, the determination by the Chief Executive Officer (or in his absence or in the case of a situation involving the cessation of employment of an executive officer of the Company, the Compensation Committee of the Board of Directors
or the independent members of the Board of Directors) shall be conclusive and binding on the Optionee; 

  

	 	(10)	“Separate Agreement” has the meaning under Section 2.2 of this Agreement; 

 

	 	(11)	“subsidiary” has the meaning ascribed thereto under the Securities Act (British Columbia) as the same may from time to time be amended or re-enacted. 

  

	1.2	Interpretation 

 For the
purposes of this Agreement, except as otherwise provided: 
  

	 	(1)	“this Agreement” means this Share Option Agreement as it may from time to time be supplemented or amended and in effect, and which is deemed to be an Award
Agreement in accordance with the Plan; 

  

	 	(2)	all references in this Agreement to “Articles”, “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of
this Agreement; 

	 	(3)	the words “herein”, “hereof”, “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular
Article, Section or other subdivision; 

  

	 	(4)	the headings are for convenience only and do not form a part of this Agreement and are not intended to interpret, define or limit the scope, extent or intent of this
Agreement or any provision hereof; 

  

	 	(5)	the singular of any term includes the plural, and vice versa, the use of any term is equally applicable to any gender and, where applicable, a body corporate, the word
“or” is not exclusive and the word “including” is not limiting whether or not non-limiting language (such as “without limitation” or “but not limited to” or words of
similar import) is used with reference thereto; 

  

	 	(6)	where the time for doing an act falls or expires on a day other than a Business Day, the time for doing such act is extended to the next day which is a Business Day;

  

	 	(7)	any reference to a statute is a reference to the applicable statute and to any regulations made pursuant thereto and includes all amendments made thereto and in force
from time to time and any statute or regulation that has the effect of supplementing or superseding such statute or regulation; and 

  

	 	(8)	any other capitalized terms not defined herein but defined in the Plan shall have the meaning as set out in the Plan. 

ARTICLE II 

THE OPTION 
  

	2.1	Grant 

 Subject to the
provisions of this Agreement and all the terms of the Plan, the Company hereby grants to the Optionee an option to purchase «Options» Common Shares at an exercise price of $ —
per share. [NTD: Add the following language if designated as such by the board in its resolutions: This Option is intended to be an Incentive Share Option for U.S. tax purposes.] 

	2.2	Expiry of Option 

Subject to the terms of the Plan (including but not limited to section 7.1(e)(v) of the Plan), the provisions of this Agreement below,
and/or any employment or service agreement, offer letter, change in control severance agreement, or any other agreement that, prior to the date of this Agreement, has been entered into between the Optionee and the Company or any Affiliate (such
agreement, a “Separate Agreement”), the Option will expire upon the earliest to occur of the following: 
  

	 	1.	the Expiry Date; 

  

	 	2.	the date which is 90 days after the Optionee ceases to be an “Eligible Person” due to termination of employment by the Company without Cause or due to
voluntary termination of employment by the Optionee (other than Retirement); 

  

	 	3.	the date which is 180 days from the date Optionee ceases to be an “Eligible Person” due to Retirement; and 

 

	 	4.	the date on which the Optionee ceases to be an “Eligible Person” due to termination of employment by the Company for Cause or material breach of the Eligible
Person’s duty to the Company; 

  

	 	5.	the date which is 365 days from the date Optionee ceases to be an “Eligible Person” due to disability; and 

 

	 	6.	the date which is 365 days from the date Optionee ceases to be an “Eligible Person” due to death; 

however, in the event of the death of the Optionee occurring during the time period specified in subsections 2.2(2) and 2.2(4) above,
subject to earlier expiry on the Expiry Date, the Option will expire on the date which is 365 days after the date the Optionee ceased to be an “Eligible Person”. 
 For greater certainty for the purpose of this Agreement and the Plan, the date on which the employment of an Optionee is terminated without Cause or pursuant to voluntary resignation shall be deemed
to be the last day the Optionee actively works in the Company’s business (or in the case of an alleged constructive dismissal, the date on which the alleged constructive dismissal is alleged to have occurred), and not during or as of the end of
any period following such date during which the Optionee is in receipt of, or entitled to receive, statutory, contractual or common law notice of termination or any compensation in lieu of such notice. 

 

	2.3	Nontransferability of Option 

 The Option is not transferable or assignable and is exercisable only by the Optionee or, in the event of the death of the Optionee or the appointment of a committee or duly appointed attorney of the
Optionee or of the estate of the Optionee on the grounds that the Optionee is incapable, by reason of physical or mental infirmity, of managing his affairs, the Optionee’s legal representative or such committee or attorney, as the case may be
(the “Legal Representative”). 
  

	2.4	Manner of Exercise 

Subject to the terms of the Plan, the Option may be exercised by (i) delivering to the Company, prior to the expiry of the Option,
an option exercise form duly executed by the Optionee or its Legal Representative (the “Option Exercise Form”) substantially in the form of Schedule “A” completed and executed in a manner acceptable to the Company, acting

 
reasonably, or (ii) in a manner and pursuant to such procedures as the Board of Directors may determine, which will state the election to exercise the Option (with appropriate proof of
completion of such exercise procedure) (the “Alternative Exercise Procedure”). The Option Exercise Form or the completion of the Alternative Exercise Procedure (as applicable) must be accompanied by payment in full for the number of Common
Shares in respect of which the Option is being exercised in lawful currency of the United States of America, in cash, bank draft, certified cheque or other form of payment acceptable to the Company, made payable to the Company at its principal place
of business at the time of the exercise of the Option. 
 Payment of the aggregate exercise price will be by any of the
following, or a combination thereof, at the election of the Optionee: (a) cash; (b) cheque; (c) consideration received by the Company under a formal cashless exercise program adopted by the Company in connection with the Plan; or
(d) surrender of other Common Shares which have a Fair Market Value Price on the date of surrender equal to the aggregate exercise price of the exercised Common Shares, provided that accepting such Common Shares, in the sole discretion of the
Board of Directors, will not result in any adverse accounting consequences to the Company. 
 At the time the Optionee exercises the Option,
in whole or in part, and at any time thereafter as requested by the Company, the Optionee hereby authorizes withholding from payroll and any other amounts payable to the Optionee by the Company, and otherwise agree to make adequate provision for any
sums required to satisfy the U.S. and Canadian federal, provincial, state, local and foreign tax withholding obligations of the Company or an Affiliate, if any, which arise in connection with the exercise of the Option. 

The Optionee may not exercise the Option unless the tax withholding obligations of the Company and/or any Affiliate are satisfied. Accordingly, the
Optionee may not be able to exercise the Option when desired even though the Option is vested, and the Company will have no obligation to issue a certificate for such Common Shares, unless such obligations are satisfied. 

 

	2.5	Issuance of Shares 

 The
Company will have no obligation to issue Common Shares upon the exercise of the Option unless the Board of Directors is satisfied that the issuance of such Common Shares to the Optionee will be exempt from all registration or qualification
requirements of applicable securities laws and will be permitted under the applicable rules and regulations of all regulatory authorities to which the Company is subject, including any stock exchange or other organized market on which the Common
Shares may from time to time be listed or posted for trading. In particular, if required by any regulatory authority to which the Company is subject, including any stock exchange or other organized market on which the Common Shares may from time to
time be listed or traded, shareholder approval to the grant of this Option must be obtained prior to the exercise of the Option or to the amendment of this Agreement. 
  

	2.6	Compliance with Laws 

The Board of Directors may from time to time take such steps and require such documentation from the Optionee which in its opinion is
necessary or desirable to ensure 

 
compliance with all applicable laws. The Board of Directors may also from time to time take such steps which in its opinion are necessary or desirable to restrict the transferability of any
Common Shares acquired on the exercise of any Option in order to ensure such compliance, including the endorsement of a legend on any certificate representing Common Shares acquired on the exercise of the Option to the effect that such Common Shares
may not be offered, sold or delivered except in compliance with the applicable securities laws and regulations of Canada or the United States. 
  

	2.7	Delivery of Share Certificates 

 Subject to Sections 2.5 and 2.6, the Company will as soon as practicable after receipt of the Option Exercise Form or the confirmation of the completion of the Alternative Exercise Procedure and the
payment referred to in Section 2.4 issue and deliver a certificate or certificates representing the Common Shares so purchased. 
  

	2.8	Vesting 

 Unless
otherwise specified by the Board in the terms of grant and subject to the terms of the Plan and any Separate Agreement (if applicable), the Common Shares subject to the Options granted under this Agreement will vest and be available to the Optionee
to purchase (prior to expiry of the Options as provided for in Section 2.2 above) as follows: 
 (1)  1/4 (one quarter) on first anniversary of the grant of the Option; and 
 (2) 1/48 (one
forty-eighth) on a monthly basis over the three (3) years following the first anniversary of the grant of the Option, in equal amounts, on the last day of each month; 
 provided that: 
 (3) if the Optionee ceases to be an “Eligible Person” due to
termination of employment by the Company without Cause or alleged constructive dismissal or due to voluntary termination by the Optionee (other than Retirement), all Common Shares subject to Options granted under this Agreement which are not yet
available for purchase as provided for above (the “Unvested Options”) will immediately be cancelled on the effective date of such termination, which shall be deemed to be the last day the Optionee actively works in the Company’s
business (or in the case of an alleged constructive dismissal, the date on which the alleged constructive dismissal is alleged to have occurred), and no statutory, contractual or common law notice entitlement or any entitlement to compensation in
lieu of such notice shall operate to extend the vesting of Options past said deemed termination date; 
 (4) if the Optionee ceases to be an
“Eligible Person” due to voluntary termination of employment by the Optionee (other than Retirement), all Unvested Options will immediately be cancelled on the effective date of such termination; 

 (5) if the Optionee ceases to be an “Eligible Person” due to termination by the Company of the
Optionee’s employment for Cause, all Unvested Options will immediately be cancelled on the date when the Company notifies the Optionee of such termination; 
 (6) if the Optionee ceases to be an “Eligible Person” due to Retirement, all Unvested Options will immediately be cancelled on the date of Retirement unless the Board of Directors has expressly
granted continued vesting after Retirement in accordance with the schedule provided for in Subsections 2.8(1), (2) and (3) or such other schedule at the Board of Directors’ discretion; 

(7) if the Optionee ceases to be an “Eligible Person” due to disability or before the expiry of the period for exercise as provided for in
Subsections 2.2(2) and 2.2(4) above, all Unvested Options will be immediately be cancelled on the date the Optionee ceases to be an Eligible Person; and 
 (8) if the Optionee dies before ceasing to be an “Eligible Person” or before the expiry of the period for exercise as provided for in Subsections 2.2(2) and 2.2(4) above, all Unvested
Options will be immediately cancelled on the date of death. 
 Notwithstanding the above, the vesting of the Common Shares subject to the
Options shall be subject to any vesting acceleration provisions applicable to this Option contained in the Plan and/or any Separate Agreement. 

Further, and notwithstanding the above, the Board of Directors may at its discretion accelerate the period of time in which any Unvested Options may
become exercisable, provided that the Board of Directors determines that such acceleration is appropriate and in the best interest of the Company in the circumstances and it is agreed and acknowledged that there is no obligation on the Board of
Directors to exercise such discretion nor shall the Board of Directors be required to provide reasons for exercise or non-exercise of such discretion. 
 ARTICLE III 
 ADJUSTMENTS 

 

	3.1	Adjustments 

 This
Agreement will be amended by the Company unilaterally (without the need of consent or notice to the Optionee) upon the occurrence of the events referred to in Section 10.3(a) of the Plan so that the rights of the Optionee hereunder, including
the number of Common Shares that may be purchased on the exercise of the Option and the Exercise Price at which such Common Shares may be purchased, will be adjusted in accordance with the provisions set forth in the Plan. Successive adjustments
will be made in the case of the occurrence of more than one such event as provided for therein, but, in the case of each such event, only from and after the occurrence of such event. Until the occurrence of such event, the rights of the Optionee
hereunder, including the number of Common Shares that may be purchased on the exercise of the Option and the Exercise Price at which such Common Shares may be purchased, will remain unamended as set out herein. 

 ARTICLE IV 
 COVENANTS AND REPRESENTATIONS 
  

	4.1	Representations and Covenants of the Company 

  

	 	(1)	The Company hereby covenants that it will reserve or cause to be reserved for allotment sufficient Common Shares for issue to the Optionee of all Common Shares which
are issuable from time to time under the Option. 

  

	 	(2)	The Company represents that the Optionee is a bona fide employee of the Company or of a subsidiary of the Company or an individual employed by a person which is
providing management services to the Company (other than investor relations) or a person who is approved as an “Eligible Person” by the Board of Directors. 

 

	4.2	Representations and Covenants of the Optionee 

 The Optionee hereby represents and covenants that: 
  

	 	(1)	the Optionee is a director, officer, employee or Consultant of the Company or of a subsidiary of the Company or a person who is approved as an “Eligible
Person” by the Board of Directors on the date of grant; 

  

	 	(2)	the Optionee’s participation in the Plan is voluntary and the Optionee has not been induced to enter into this Agreement by the expectation of employment or
continued employment with the Company or any person providing management services to the Company or any Affiliate; 

  

	 	(3)	the Optionee is aware that the grant of the Option and the issuance by the Company of Common Shares thereunder are exempt from the obligation under applicable
securities laws to file a prospectus or other registration document (other than a registration statement on Form S-8 with the United States Securities and Exchange Commission) qualifying the distribution of the Options or the Common Shares to
be distributed thereunder under any applicable securities laws and if such exemption for any reason becomes unavailable, the obligation of the Company to grant any Options or issue any Common Shares upon the exercise of an Option will cease;

  

	 	(4)	 if the Optionee ceases to be an “Eligible Person” due to termination of employment by the Company without cause or alleged constructive
dismissal or due to voluntary termination by the Optionee (other than Retirement), the Optionee will not make any claims for continued vesting of Unvested Options past the effective date of such termination, which shall be deemed to be the last day
the Optionee actively works in the Company’s business (or in the case of an alleged constructive dismissal, the date on which the alleged constructive 

	 	
dismissal is alleged to have occurred), and will not make any claims for compensation in lieu of statutory, contractual or common law notice or damages relating thereto; 

 

	 	(5)	if the Optionee or the Legal Representative of the Optionee exercises the Option, the Optionee or the Legal Representative, as the case may be, will prior to and upon
any sale or disposition of any Common Shares purchased upon the exercise of the Option, comply with all applicable securities laws and all applicable rules and regulations of all regulatory authorities to which the Company is subject, including any
stock exchange or other organized market on which the Common Shares may be listed or posted for trading, and will not offer, sell or deliver any of such Common Shares, directly or indirectly, in the United States or to any citizen or resident of, or
any company, partnership or other entity created or organized in or under the laws of, the United States, or any estate or trust the income of which is subject to United States federal income taxation regardless of its source, except in compliance
with the securities laws of the United States; and 

  

	 	(6)	the Optionee agrees that the Company does not have a duty to design or administer the Plan or its other compensation programs in a manner that minimizes the
Optionee’s tax liabilities and the Optionee will not make any claim against the Company, or any of its officers, directors, employees or Affiliates related to tax liabilities arising from the Options or any of the Optionee’s other
compensation. 

 ARTICLE V 
 MISCELLANEOUS 
  

	5.1	Special Provisions for Incentive Share Options 

  

	 	(1)	For U.S. taxpayers, if the Option is designated in this Agreement as an Incentive Share Option, this Option is intended to qualify as an Incentive Share Option under
Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”). However, if this Option is intended to be an Incentive Share Option, to the extent that it exceeds the $100,000 rule of Code Section 422(d) it will be
treated as a Nonqualified Share Option. Further, if for any reason this Option (or portion thereof) will not qualify as an Incentive Share Option, then, to the extent of such nonqualification, such Option (or portion thereof) shall be regarded as a
Nonqualified Share Option granted under the Plan. In no event will the Board of Directors, the Company or any parent or subsidiary or any of their respective employees or directors have any liability to the Optionee (or any other person) due to the
failure of the Option to qualify for any reason as an Incentive Share Option. 

  

	 	(2)	 Further, if the Option granted to the Optionee herein is an Incentive Share Option, and if the Optionee sells or otherwise disposes of any of the
Common Shares acquired pursuant to the Incentive Share Option on or before the later of (i) the 

	 	
date two (2) years after the grant date, or (ii) the date one (1) year after the date of exercise, the Optionee will immediately notify the Company in writing of such disposition.
The Optionee agrees that the Optionee may be subject to U.S. and Canadian federal, provincial, state, local and foreign income tax withholding by the Company on the compensation income recognized by the Optionee. 

 

	5.2	Section 409A 

 Under
Code Section 409A, an option that vests after December 31, 2004 (or that vested on or prior to such date but which was materially modified after October 3, 2004) that was granted with a per share exercise price that is determined by
the U.S. Internal Revenue Service (the “IRS”) to be less than the fair market value of a share on the date of grant (a “Discount Option”) may be considered “deferred compensation.” A Discount Option may result in
(i) income recognition by the Optionee prior to the exercise of the option, (ii) an additional twenty percent (20%) federal income tax, and (iii) potential penalty and interest charges. The Discount Option may also result in
additional state income, penalty and interest charges to the Optionee. The Optionee acknowledges that the Company cannot and has not guaranteed that the IRS will agree that the Exercise Price of this Option equals or exceeds the Fair Market Value of
a Share on the grant date in a later examination. The Optionee agrees that if the IRS determines that the Option was granted with a per Share Exercise Price that was less than the Fair Market Value of a Share on the grant date, the Optionee will be
solely responsible for the Optionee’s costs related to such a determination. 
  

	5.3	Notices 

 Any notice or
other communication required or permitted to be delivered under this Agreement will be considered delivered only if in writing and when it is actually delivered (which delivery may be by telex, telecopy or other telecommunications device) to the
attention of the party to whom it is intended at the principal business address of the Company, if addressed to the Company, or to the address specified above, if to the Optionee, or to such other address as such party may designate to the other
party by notice in writing delivered in accordance with this Section. 
  

	5.4	Interpretation 

 Any
question arising as to the interpretation of this Agreement will be determined by the Board of Directors and, absent manifest error, such determination will be conclusive and binding on the Company and the Optionee. 

 

	5.5	Further Assurances 

 Each
of the parties hereto will, on demand by the other party hereto, execute and deliver all such further documents and instruments and do all such further acts and things as the party may either before or after the execution and delivery of this
Agreement reasonably request to evidence, carry out and give full effect to the terms, conditions, intent and meaning of this Agreement. 

	5.6	Severability 

 If any
provision of this Agreement is determined to be void, illegal or unenforceable, such provision will be construed to be separate and severable from this Agreement and will not impair the validity, legality or enforceability of any other provision of
this Agreement and the remainder of this Agreement will continue to be binding on the parties hereto as if such provision had been deleted. 
  

	5.7	No Assignment 

 Neither
this Agreement nor the Option may be assigned, transferred or charged in whole or in part by the Optionee, and any purported assignment, transfer or charge shall cause this Agreement and the Option to lapse forthwith and be null and void after that
time. 
  

	5.8	Amendment 

 No amendment
shall be made to this Agreement unless all applicable rules and regulations of all regulatory authorities to which the Company is subject have been complied with. 
  

	5.9	Burden and Benefit 

 This
Agreement will be binding upon and will enure to the benefit of the Company and its successors and assigns and the Optionee and, if applicable, his Legal Representative. 

 

	5.10	Time 

 Time will be of
the essence in this Agreement. 
  

	5.11	Governing Law and Jurisdiction 

 This Agreement and all matters arising hereunder will be governed by and construed in accordance with the laws of the Province of British Columbia. Subject to any written agreement between the parties,
the parties will submit all their disputes arising out of or in connection with this Agreement to the exclusive jurisdiction of the courts of British Columbia. 
  

	5.12	Electronic Delivery and Acceptance 

 The Company may, in its sole discretion, decide to deliver any documents related to Options awarded under the Plan or future options that may be awarded under the Plan by electronic means or request the
Optionee’s consent to participate in the Plan by electronic means, including, without limitation, by posting them on a website maintained by the Company or a third party under contract with the Company or through such methods indicated in this
Agreement. The Optionee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through any on-line or electronic system established and maintained by the Company or a third party designated by the
Company. 

 If the Company posts such documents on a website, it shall notify Participant by e-mail or
such other reasonable manner as then determined by the Company. 
  

	5.13	Incorporation of the terms of the Plan 

 This Agreement shall be deemed to have incorporated all the terms of the Plan and the Options granted hereunder shall be subject to the terms of the Plan. In the event of any conflict between the
provisions of this Agreement and the terms of the Plan, the terms of the Plan shall govern. 
 IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the day and year first above written. 
  

									
	 XENON PHARMACEUTICALS INC.
	  	
					
	By:	  	  
	  		  	C/S	  	
		  	Title: Corporate Secretary	  		  		  	
					
		  	 Signed by «First_Name» «Last_Name»
	  	)	  		  	
		  	in the presence of:	  	)	  		  	
		  		  	)	  		  	
		  	  
	  	)	  		  	
		  	Name	  	)	  		  	
		  		  	)	  	  
	  	
		  	  
	  	)	  	«First_Name» «Last_Name»	  	
		  	 Address
	  	)
	  		  	
		  		  	)	  		  	
		  	  
	  	)	  		  	

 SCHEDULE “A” 

OPTION EXERCISE FORM 
  

			
	TO:	 	Xenon Pharmaceuticals Inc.
		 	200-3650 Gilmore Way
		 	Burnaby, BC, V5G 4W8

 The undersigned hereby irrevocably gives notice, pursuant to the 2013 Equity Incentive Plan (the “Plan”)
of Xenon Pharmaceuticals Inc. (the “Company”) and the share option agreement between the Company and the undersigned made on the              day of
                    , 20            (the “Share Option
Agreement”), of the exercise of the option (the “Option”) granted to the undersigned pursuant to the Plan and the Share Option Agreement and hereby irrevocably agrees to purchase (cross out applicable item):

 all of the common shares; or 
              of the total number of common shares which may be purchased under the Option. 

Calculation of total Exercise Price (as defined in the Plan): 
 number of common shares to be acquired on exercise:              common shares 

times the exercise price per common share: $             

TOTAL EXERCISE PRICE, enclosed herewith:$             

The undersigned tenders to Xenon Pharmaceuticals Inc. herewith an amount equal to the total exercise price for the common shares being purchased, as
calculated above, plus any amounts necessary to satisfy the tax withholding obligations in connection with such purchase. The exercise price may be satisfied pursuant to any of the authorized means set forth under Section 2.4 of the Share
Option Agreement. 
 The undersigned directs the Company to issue the share certificate evidencing the common shares in the name of the
undersigned to be mailed to the undersigned at the following address: 
  

	
	  

	  

	  

	  

 Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company) of the common shares, no right to vote or receive dividends or any other rights as a shareholder will exist with respect to the common shares subject to the Option, notwithstanding the exercise of the
Option. The common shares so acquired will be issued in the name so designated above as soon as practicable after exercise of the Option. No adjustment will be made for a dividend or other right for which the record date is prior to the date of
issuance, except as provided in Section 10.3(a) of the Plan. 
 The undersigned understands that the undersigned may suffer adverse tax
consequences as a result of the purchase or disposition of the common shares. The undersigned represents that the undersigned has consulted with any tax consultants the undersigned deems advisable in connection with the purchase or disposition of
the common shares and that the undersigned is not relying on the Company for any tax advice. 
 This notice and all matters arising hereunder
will be governed by and construed in accordance with the laws of the Province of British Columbia. Subject to any written agreement between the parties, the parties will submit all their disputes arising out of or in connection with this notice to
the exclusive jurisdiction of the courts of British Columbia. 
 DATED the
             day of             ,             

  

							
	  
	  		  	  
	  	
	Signature of Witness	  		  	Signature of Participant	  	
				
	  
	  		  	  
	  	
	Name of Witness (please print)	  		  	Name of Participant (please print)Prepared by R.R. Donnelley Financial -- EX-10.14

 Exhibit 10.14 

 
 

 
 LEASE 
 BUILDING 10 – DISCOVERY PLACE 3650 GILMORE WAY, BURNABY, B.C. 
 BETWEEN 
 DISCOVERY PARKS INCORPORATED 

AND 
 XENON GENETICS INC. 
 FMC 

FRASER MILNER CASGRAIN 
 15th Floor, The Grosvenor Building, 1040 West Georgia Street, Vancouver, B.C., Canada V6E 4H8 Telephone (604) 687-4460 Fax (604) 683-5214 www.fmc-law.com 

Montreal Ottawa Toronto Edmonton Calgary Vancouver 

 TABLE OF CONTENTS 

 

							
	 1.0
	 	 PREMISES
	  	 	1	  
	 2.0
	 	 TERM
	  	 	2	  
	 3.0
	 	 RENT
	  	 	2	  
	 4.0
	 	 USE OF DEMISED PREMISES
	  	 	3	  
	 5.0
	 	 DEFINITIONS
	  	 	3	  
	 6.0
	 	 COVENANTS OF TENANT
	  	 	10	  
	 6.17
	 	 ENVIRONMENTAL CONSIDERATIONS
	  	 	13	  
	 7.0
	 	 COVENANTS OF LANDLORD
	  	 	16	  
	 8.0
	 	 ALTERATIONS AND IMPROVEMENTS
	  	 	18	  
	 9.0
	 	 IMPROVEMENT OF PREMISES
	  	 	19	  
	 10.0
	 	 FIXTURING PERIOD
	  	 	19	  
	 11.0
	 	 SUBORDINATION
	  	 	20	  
	 12.0
	 	 PROPERTY ETC. DAMAGE
	  	 	21	  
	 13.0
	 	 DAMAGE TO OR DESTRUCTION OF PREMISES
	  	 	21	  
	 14.0
	 	 ACCESS TO DEMISED PREMISES
	  	 	22	  
	 15.0
	 	 OPERATING EXPENSES AND TAXES
	  	 	23	  
	 16.0
	 	 ADDITIONAL RENT AND PRO RATA PORTION OF PAYMENTS
	  	 	23	  
	 17.0
	 	 DEFAULT
	  	 	24	  
	 18.0
	 	 DISTRESS
	  	 	25	  
	 19.0
	 	 LANDLORD’S EXPENSES ENFORCING LEASE
	  	 	25	  
	 20.0
	 	 WAIVER
	  	 	25	  
	 21.0
	 	 HOLD OVER
	  	 	26	  
	 22.0
	 	 INABILITY TO PERFORM/FORCE MAJEURE
	  	 	26	  
	 23.0
	 	 RULES AND REGULATIONS
	  	 	26	  
	 24.0
	 	 LANDLORD’S RIGHT TO PERFORM
	  	 	27	  
	 25.0
	 	 REMEDIES CUMULATIVE
	  	 	27	  
	 26.0
	 	 LANDLORD’S LIMIT OF LIABILITY
	  	 	27	  
	 27.0
	 	 LETTER OF CREDIT
	  	 	28	  
	 28.0
	 	 WHOLE OF AGREEMENT
	  	 	28	  
	 29.0
	 	 USE OF COMMON AREAS/PARKING
	  	 	29	  
	 30.0
	 	 OPTIONS TO RENEW
	  	 	29	  
	 31.0
	 	 LEASEHOLD IMPROVEMENT ALLOWANCE
	  	 	30	  
	 32.0
	 	 RIGHT OF FIRST OPPORTUNITY (BUILDING 8)
	  	 	30	  
	 33.0
	 	 NOTICES
	  	 	32	  
	 34.0
	 	 INTERPRETATION
	  	 	32	  

 SCHEDULE “A” — Premises 

 LEASE 
 BUILDING 10 — DISCOVERY PLACE 
 3650 GILMORE WAY, BURNABY, B.C.

 THIS INDENTURE made effective as of the 1st day of
            , 2001. 
 BETWEEN: 

DISCOVERY PARKS INCORPORATED, duly incorporated under the laws of the Province of British Columbia under Incorporation
No. 173252 and having an office at #602 – 1401 West Broadway, in the City of Vancouver, in the Province of British Columbia, V6H 1H6 
 (the “Landlord”) 
 AND: 

XENON GENETICS INC. duly incorporated under the laws of Canada under Incorporation No. A-52356 and having an office at 100
– 2386 East Mall, in the City of Vancouver, in the Province of British Columbia, V6T 1Z3 
 (the “Tenant”)

 WHEREAS: 
  

	A.	The Landlord is the owner of the Land and Building described herein; and 

  

	B.	The Landlord has agreed to lease the Building to the Tenant on the terms herein contained. 

WITNESSES that in consideration of the rents, covenants and agreements hereinafter reserved and contained on the part of the Tenant to be
paid, observed and performed the Landlord hereby demises and leases the Premises to the Tenant as hereinafter described all on the terms, conditions and covenants as hereinafter set forth. 

 

	1.0	PREMISES 

 1.1 The Premises means that
portion of the Land located at 3650 Gilmore Way, Burnaby, British Columbia comprising a Rentable Area of approximately 56,776 square feet being the entire Building situated thereon, as set out in Schedule “A” attached hereto.

	2.0	TERM 

 2.1 To have and to hold the
Premises for and during the term of ten (10) years commencing on the Commencement Date and expiring on the day immediately prior to the tenth anniversary of the Commencement Date. 

 

	3.0	RENT 

 3.1 Yielding and paying therefor
unto the Landlord at its office at #602 – 1401 West Broadway, Vancouver, B.C., V6H 1H8, or at such other place as the Landlord may direct in writing, Basic Rent for Premises in the sum set out hereunder together with applicable goods and
services tax, payable in advance on the first day of each and every month of the Term as follows: 
  

					
	 Period
	  	 approximate

annual Basic Rent
	  	
approximate
monthly Basic Rent

	 Years 1 – 5
	  	$1,021,968 + GST (18.00 per square foot)	  	$85,164 + GST
			
	 Years 6 – 10
	  	$1,107,132 + GST ($19.50 per square foot)	  	$92,261 + GST

 3.2 The Landlord acknowledges receipt from the Tenant of a deposit of $170,685.33, including GST, which shall be paid to
the Landlord on execution of this Lease and applied on account of the payment of Rent, Operating Expenses and Taxes for the first and second months of the Term during which the Tenant commences payment of Rent and after expiry of all rent free
periods set out in this Lease. The deposit is to be placed in an interest bearing trust account with all interest accruing to the Tenant. Following execution of this Lease the deposit shall be held for the benefit of the Landlord, but interest
thereon shall continue to be for the benefit of the Tenant. Interest shall be released to the Tenant on the first day of the second month of the Term in which the Tenant is obligated to pay Rent. 

3.3 Upon determination of the actual Rentable Area by a surveyor appointed by the Landlord, the Rent shall be adjusted accordingly on the basis of the
Rentable Area of the Premises multiplied by $18.00 per square foot per year for each of the first five years of the Term and $19.50 per square foot per year for each of the next five years of the Term. 

3.4 This Lease shall be an absolutely net lease and the Annual Net Rent shall be net to the Landlord and shall be paid without set-off, abatement,
deduction or counterclaim except as may be specifically provided for in this Lease or the Offer to Lease. 

  
 2 

 3.5 Notwithstanding the foregoing, the Tenant shall not be required to pay Basic Rent for the first four
months of the Term but shall be required to pay Additional Rent during the first four months of the Term. 
 3.6 Notwithstanding the foregoing,
the Tenant shall not be required to pay Rent during the Fixturing Period and any period of occupancy permitted under Section 10.3. In the event the Fixturing Period is extended as set out in Section 10.2 hereof, the abatement of Rent will
also be extended during such extension to the Fixturing Period. In the event of force majeure as set out Section 22.1, the abatement of Rent set out herein shall commence upon the expiration of the period of force majeure. 

3.7 The Landlord shall be obligated to pay to the Tenant the Leasehold Improvement Allowance in accordance with Section 31.0. 

 

	4.0	USE OF DEMISED PREMISES 

 4.1 The Tenant
will use the Premises for Research and Development, general business, laboratory uses and for related business activities all in accordance with the zoning bylaws of the City of Burnaby, including without limitation the requirements of Discovery
Place OCP dated February 14, 1996 and for no other purpose and, subject to the provisions of Sections 6.11 and 6.13 of this Lease, will not permit any part of the Premises to be used or occupied by any persons other than the Tenant, its
employees and invitees. 
  

	5.0	DEFINITIONS 

 5.1 In this Lease, unless
otherwise stated, the following terms will have the following meanings: 
  

	 	(a)	“Additional Rent” means the amounts payable by the Tenant to the Landlord as described in Section 16.1 hereof and includes, without limitation, Operating
Expenses and Taxes; 

  

	 	(b)	“Audit” means a review by the Tenant’s Consultant of the Tenant’s practices with respect to Hazardous Substances for the prior year to ensure that
all applicable Tenant Protocols have been followed, and which will itemize any incidents where a Tenant Protocol has not been followed and set out remedial measures to be taken by the Tenant in the upcoming year to avoid further breaches of the
Tenant Protocol; 

  

	 	(c)	“Authority” means any government agency, body, corporation, organization, department or authority responsible for administering or enforcing any Law;

  
 3 

	 	(d)	“Basic Rent” means the rent described in Section 3.1 hereof; 

 

	 	(e)	“BOMA Standard” means the publication entitled ‘Standard Method for Measuring Floor Area in the Office Buildings’ as approved June 7, 1996, by
American National Standards Institute, Inc., as identified by the publication reference ANSI/BOMA Z65.1-1996 and where the context requires, means the terminology and methodology described therein; 

 

	 	(f)	“Building” means the building located at 3650 Gilmore Way, Burnaby, B.C., and in which the Premises are situated; 

 

	 	(g)	“Building Rentable Area” means the total of all Rentable Areas in the Building; 

 

	 	(h)	“Business Days” means the Monday to Saturday inclusive in each week, save and except any such day that be declared, by lawful authority, a holiday;

  

	 	(i)	“Commencement Date” means the day next following the last day of the Fixturing Period. If the Fixturing Period has not commenced by March 1, 2001, the
Commencement Date shall be extended by one day for each day past March 1, 2001, the commencement of Fixturing Period is delayed. 

  

	 	(j)	“Common Areas” means all of those portions of the Land not including the Building, improvements, facilities, amenities, utilities, installations, and
equipment or portions thereof on the Land forming part of or being for the use of the Building; 

  

	 	(k)	“Environment” has the meaning given to it in the Canadian Environment Protection Act (Canada) from time to time; 

 

	 	(l)	“Existing Pollution” means Pollution of the Land or Building which has not been caused by the Tenant; 

 

	 	(m)	“Fixturing Period” means the period described in Section 10.1 hereof; 

 

	 	(n)	“Hazardous Substance” means any hazardous material or matter, whether in liquid, solid, or gas or other form, that is prohibited, regulated, controlled or
licensed by any Laws; 

  
 4 

	 	(o)	“Land” means that certain parcel or tract of land situate in Burnaby and more particularly known as a portion of PID: 019-179-758, Lot 2, District Lot 71,
Group 1, NWD, Plan LMP21978; 

  

	 	(p)	“Landlord’s Architect” means Bunting Coady Architects or such other architect as is designated in writing by the Landlord; 

 

	 	(q)	“Landlord’s Consultant” means any qualified environmental consultant designated in writing by the Landlord; 

 

	 	(r)	“Law” means any Federal, Provincial, Municipal, and other governmental laws and regulations relating to protection of the Environment or its Pollution
including, without limitation, the Canadian Environmental Protection Act (Canada) and the Waste Management Act (British Columbia) and the regulations made under them and includes any amendment, revision, re-enactment or replacement of
any such Law, regulation, or by-law; 

  

	 	(s)	“Leasehold Improvement Allowance” means the amount set forth in Section 31.1 to be paid by the Landlord to the Tenant an account of the Tenant leasehold
improvement expenditure; 

  

	 	(t)	“Medium” means any land, water or air and includes the Land, Building and Premises; 

 

	 	(u)	“Normal Business Hours” means the hours on Business Days from 7:30 a.m. to 6:00 p.m. from Monday to Friday inclusive and 8:00 a.m. until 1:00 p.m. on
Saturday; 

  

	 	(v)	“Offer to Lease” means the offer to lease made by the Tenant on December 11, 2000, and accepted by the Landlord on December 12, 2000;

  

	 	(w)	“Operating Expenses” means, without duplication or profit except any profit in respect of (viii) below, all expenses chargeable against income in
connection with the operation, maintenance and repair of the Building, including all Common Areas and the Land and, without restricting the generality of the foregoing, includes; 

 

	 	(i)	fuel and operating expenses incurred in cleaning, heating, and ventilating the Building and providing water, natural gas, electrical service, telephone service, and
sanitary and storm sewer services; 

  
 5 

	 	(ii)	operating expenses incurred in cleaning and maintaining, including rubbish and snow removal, the sidewalks, roads, street lights, paving, surface parking lots,
underground parking facilities, and landscaping on the Land; 

  

	 	(iii)	water rates, special taxes and licenses (other than the Taxes or Tenant’s Taxes or taxes on capital, income or profits), Building insurance, and utility expenses
for the Common Areas; 

  

	 	(iv)	salaries and wages (including employees’ benefits, worker’s compensation and other items of a similar nature) directly attributable to the Land and the cost
of service contracts incurred in the cleaning, maintenance, repair and operation of the Building and the Land and payments made for security services provided to the Land; 

 

	 	(v)	the cost of building and cleaning supplies used for the Building; 

  

	 	(vi)	the cost of painting interior areas of the Building, not normally rented to tenants and costs of painting and otherwise maintaining the parking areas including both the
underground and surface lots and the outside of the Building; 

  

	 	(vii)	the cost of depreciation of HVAC machinery and equipment leased and the costs thereof being fully amortized over their useful life taking into account any reduction in
their useful life occasioned by increased use of such HVAC machinery and equipment requested by the Tenant under Section 7.4 all as determined by the Landlord acting reasonably on the advice of a qualified consultant acceptable to the Tenant,
acting reasonably, together with interest thereon calculated daily and compounded monthly at 2.0% per annum above the rate declared by HSBC Bank Canada as its “prime rate”; 

 

	 	(viii)	an allowance for management and overhead expenses of the Landlord not exceeding 3.75% of the gross income of the Building; 

 

	 	(ix)	Landlord’s costs of obtaining and maintaining insurance for liability, fire and other casualties in respect of the Building; and 

 

	 	(x)	the costs incurred by the Landlord in making capital improvements to the Building which result in reduction of these Operating Expenses where such reduction during the
remainder of the Term is greater than the current depreciated portion of such costs; and 

  
 6 

 Provided always that Operating Expenses shall not include leasing commissions, corporation
capital tax or other capital taxes, depreciation (except as specifically provided herein), cost of structural repairs to the Building, interest on debt, or capital retirement of debt, the cost of repair or replacement of structural defects in the
original construction of the Building and any other defect in the original construction of the Building where the cost of repair or replacement of such defect is covered by warranty by the contractor or supplier as the case may be or any amounts
directly chargeable by the Landlord to any tenant or tenants as otherwise provided in this Lease; 
  

	 	(x)	“Person” includes a person, firm, corporation, partnership, group of persons, or any combination of them and the personnel or other legal representatives of
such person to whom the context can apply at law; 

  

	 	(y)	“Pollute” is a verb which means to Release into or unto any Medium any Hazardous Substance that: 

 

	 	(i)	alters the physical, biological, or chemical nature of that Medium; 

  

	 	(ii)	alters the capacity of the Medium to support any living thing whether animal or plant life; 

 

	 	(iii)	injures or is capable of injuring the health or safety of a person in or near the Medium; 

 

	 	(iv)	injures or is capable or injuring property or any life form in or near the Medium; 

 

	 	(v)	interferes with or is capable of interfering with visibility or the dispersion of light or any photochemical activity within the Medium; 

 

	 	(vi)	interferes with or is capable of interfering with normal conduct of business in, on near or from the Medium; 

  
 7 

	 	(vii)	causes or is capable of causing physical discomfort to a person in, on or near the Medium; 

 

	 	(viii)	damages or is capable of damaging the Environment; or 

  

	 	(ix)	is Special Waste, 

 and such
Release is prohibited under any Law, or regulated, controlled or licensed under any Law if such Release exceeds the acceptable standard prescribed by such Law and “Polluted” is an adjective and “Pollution” and
“Pollutant” are nouns which have meanings that correspond to the meaning contained in this clause. 
  

	 	(z)	“Premises” means that portion of the Building described in Section 1M and shown outlined on Schedule “A”; 

 

	 	(aa)	“Proportionate Share” means the ratio which the Rentable Area of the Premises bears to the Building Rentable Area of the Building; 

 

	 	(bb)	“Pro Rata Portion” as applied to any amount means the Proportionate Share for the time for which the calculation is made as a fraction of whole of the period
contemplated in the Lease; 

  

	 	(cc)	“Release” includes release, spill, leak, pump, pour, dump, abandon, emit, empty, discharge, spray, inoculate, deposit, seep, throw, place, exhaust, inject,
escape, leach, dispose, infuse or introduce other than in accordance with the applicable Tenant Protocol; 

  

	 	(dd)	“Remedial Action” means any act, measure, work or thing done, taken, carried out, acquired or constructed that is or may be reasonably necessary to
investigate, assess, control, abate, dissipate, render harmless, mitigate or remove Pollution in accordance with the requirements of any Authority having jurisdiction over a Pollutant; 

 

	 	(ee)	“Rent” means the Basic Rent and Additional Rent; 

  

	 	(ff)	“Rentable Area” has the meaning ascribed to it in the BOMA Standard; 

 

	 	(gg)	 “Research and Development” means the carrying on or application of scientific or technological research and development as described in the
zoning by-laws of the City of Burnaby and the zoning requirements of Discovery Place OCP dated February 14, 1996, 

  
 8 

	 	
applicable to the Land in cooperation with governments or business and industry or foundations or technological institutions or universities or other educational institutions in the application
of science and technology for the development of industry in British Columbia and shall, subject to the other terms of this Lease, include the right of the Tenant to develop and construct prototypes of goods or products, for the purpose of further
research, development and testing as part of the carrying on of the Research and Development. In the process of developing the scientific or technological research and development, certain goods and products may be offered for sale;

  

	 	(hh)	“Taxes” mean all taxes, rates and assessments, whether general or special, levied or assessed by the municipal authority for such purposes payable by the
Landlord in respect of the Building and the Land and include any other taxes, rates and assessments payable by the Landlord which are imposed in substitution of the foregoing taxes, rates and assessments as finally determined for each calendar year
as a result of assessment, appeal or judicial review and include any reasonable legal fees or appraiser’s fees incurred by the Landlord in respect of such final determination, but excluding development cost charges or other amounts levied by
the municipalities authorities in relation to the original development of the Land or construction of the Building; 

  

	 	(ii)	“Tenant’s Consultant” means any qualified environmental consultant designated in writing by the Tenant acceptable to the Landlord, acting reasonably;

  

	 	(jj)	“Tenant’s Environmental Management Plan” means a written plan prepared by the Tenant’s Consultant addressing how the Tenant shall manage any
environmental risks including any Hazardous Substances involved in its business in the Premises during the Term; 

  

	 	(kk)	“Tenant’s Protocol” means, with respect to a Hazardous Substance, a written procedure prepared by the Tenant’s Consultant in accordance with the
Tenant’s Environmental Management Plan detailing how the Hazardous Substance will be transported, received, handled, stored, used and disposed of, including procedures to be followed if there is a Release of Hazardous Substance other than in
accordance with the Tenant Protocol; 

  

	 	(ll)	 “Tenant’s Taxes” means all taxes, licenses, rates, duties and assessment imposed or levied by lawful authority covering any period
during the Term and relating to or in respect of the business or profession of the Tenant or relating to or in respect of improvements, fixtures, 

  
 9 

	 	
machinery or chattels or equipment brought onto the Premises by the Tenant or being the property of the Tenant or relating to or in respect of improvements to the Premises built, made or
installed by the Tenant or at the Tenant’s request, or being any special or additional taxes, licenses, rates, duties and assessments which the Tenant or any sub-Tenant or licensee of the Tenant shall elect or cause to have the Premises or any
part thereof assessed or charged with, whether any such taxes, licenses, rates, duties and assessments are payable in law by the Tenant or by the Landlord and whether such taxes, licenses, rates, duties and assessments are included by the taxing
authority in the taxes, licenses, rates, duties and assessments or levied on or with respect to the Building; 

  

	 	(mm)	“Tenant’s Work” mean’s the Tenant’s leasehold improvements as defined under Schedule “B” of the Offer to Lease; and

  

	 	(nn)	“Term” means the term of this Lease described in Section 2.0. 

 

	6.0	COVENANTS OF TENANT 

 The
Tenant covenants with the Landlord: 
 6.1 To pay Rent as and when due; 
 6.2 To pay the cost of electricity, gas and other utilities used within the Premises, such costs to be paid by the Tenant as and when due. 
 6.3 Subject to Section 12.0, to repair the Premises, reasonable wear and tear, structural repairs, and damage by fire, lightning and other casualties against which the Landlord is insured, or for
which the Landlord is required to be insured under this Lease, only excepted. 
 6.4 Subject to Section 7.7, that, upon providing not less
than 48 hours’ written notice specifying a specific time for entry, the Landlord may enter and view the state of repair and that the Tenant will repair according to notice save as aforesaid. 

6.5 That the Tenant will leave the Premises in good repair, save as aforesaid. 
 6.6 If the Tenant fails to repair in accordance with the provisions hereof, the Landlord may on 10 days prior written notice except in the case of an emergency enter the Premises and make the required
repairs and, 

  
 10 

 
for that purpose, the Landlord may bring and leave on the Premises all necessary tools, material and equipment and the Landlord will not be liable to the Tenant for any inconvenience, loss,
injury or damages suffered by the Tenant thereby, unless caused by the negligence or willful misconduct of the Landlord or those for whom the Landlord is responsible at law, and the expense of such repair will be borne by the Tenant which will pay
it to the Landlord forthwith on demand. 
 6.7 To restore forthwith at its expense broken or damaged plate glass on the Premises from time to
time. 
 6.8 Not to do, suffer or permit any act or neglect which may in any manner directly or indirectly cause injury to the Premises or to
the Building of which the Premises form a part or to any fixtures or appurtenances thereof, or which may be or become a nuisance or interference with the comfort of any of the occupants of the Building or which may in the reasonable opinion of the
Landlord render the Building or any part thereof less desirable or injure the reputation thereof as a first-class office building. 
 6.9 Not to
exhibit signs of any nature on exterior walls, doors or windows of the Premises without the prior written approval of the Landlord, such approval not to be unreasonably withheld or delayed. Notwithstanding the foregoing, the Tenant will be allowed:

  

	 	(a)	to display a sign on the standard building directory signage to be provided by the Landlord in a manner to be consistent with a suburban business park;

  

	 	(b)	the option to install prominent signage on the exterior of the Building and pedestal signage adjacent to the entrance to the Building, including the Building name set
out herein, 

 all of which shall subject to the approval of the City of Burnaby or any governing authorities. The Landlord agrees
to name the Building “The Xenon Genetics Building”. The Landlord acknowledges and agrees that neither the Tenant’s signage on the Building, nor the use of the Tenant’s name in the name of the Building shall grant the Landlord any
rights or interest in the Tenant’s name or any derivation thereof nor will the Landlord be permitted to continue to use the Tenant’s name in the name of the Building or otherwise after expiry or sooner termination of this Lease (or such
earlier date as the Tenant so notifies the Landlord in writing). At the expiration or sooner termination of this Lease, the Tenant shall, upon request by the Landlord forthwith, remove any sign installed by the Tenant pursuant to
sub-Section 6.9(b). 
 6.10 Not to do or permit anything to be done whereby any policy of insurance on the said Building or any part
thereof placed by the Landlord or any other Tenant in the Building may become void or voidable or 

  
 11 

 
whereby the premium thereon may be increased, and if the Tenant is in breach hereof and as a result of such breach any premium of any such policy is increased, the Tenant will forthwith pay to
the Landlord the amount of the increase in such premium, provided that nothing herein will limit any other remedy of the Landlord or any other Tenant provided this Section will not apply to the Tenant’s proposed use of the Premises by the
Tenant. 
 6.11 The Tenant shall not assign or sublet the Premises in whole or in part without the prior consent in writing of the Landlord,
such consent not to be unreasonably or arbitrarily withheld or delayed where the Tenant wishes to assign or sublet to a tenant, which covenants to use the Premises for only those uses permitted in Section 4.1, provided that the Tenant, at the
time the Tenant requests the consent of the Landlord, delivers to the Landlord such information in writing (the “Required Information”) as the Landlord may reasonably require respecting the proposed assignee or subtenant, provided always
that no such assignment or subletting, whether consented to by or not by the Landlord, will: 
  

	 	(a)	in any manner release the Tenant from any covenant to be observed or performed by it, and 

 

	 	(b)	be made to any person, firm, partnership or corporation carrying on any business which the Landlord is obliged to restrict by reasons of any other lease or contract in
respect of any occupancy of a portion of the Building. 

 6.12 A change in control of the Tenant shall be deemed to be an
assignment for purposes of Section 6.11. This provision however, shall not apply to any transaction in which the Tenant becomes a public company or any transaction or change in control in the Tenant while the Tenant is a public company.

 6.13 Notwithstanding Section 6.11, the Tenant shall be permitted to sublease a portion of the Premises to Electronic Arts (Canada) Inc.
without consent of, but with notice to, the Landlord provided that Electronic Arts. (Canada) Inc. agree, inter alia, to be bound by the covenants of the Tenant under this Lease except the covenant to pay Rent and Additional Rent. Notwithstanding any
sublease permitted under this Section 6.13 or any requirement in the sublease for Electronic Arts (Canada) Inc. to observe any obligations set out in this Lease, the Tenant shall not be released from any obligation contained in this Lease
including, without limitation, from any covenant to be observed or performed by the Tenant under this Lease. 
 6.14 The Tenant is allowed to
profit on any assignment or subletting permitted by Sections 6.11 or 6.13. 

  
 12 

 6.15 Notwithstanding any assignment or sublease of this Lease of all or a portion of the Premises, whether
consented to or not by the Landlord, the Landlord shall not be obligated to pay any Leasehold Improvement Allowance (defined hereafter) to any assignee or sublessee but shall only be obligated to make any Leasehold Improvement Allowance to the
Tenant as set out in this Lease. 
 6.16 To keep the Premises free of rubbish and debris at all times and to provide proper and sufficient
receptacles for waste. 
 6.17 Environmental Considerations 
 6.17.1 The Tenant must not at any time cause or allow any Hazardous Substance to be generated, created, used, stored, treated, transferred, transported or disposed of on the Land or Building except in
compliance with all Laws and the Tenant’s Environmental Management Plan and shall not use the Premises in any manner which, in whole or in part, would cause the Land to be a contaminated site or similar designation under any Law. 

6.17.2 Prior to the Commencement Date, the Tenant shall prepare and deliver to the Landlord the Tenant’s Environmental Management Plan. 

6.17.3 The Tenant shall provide the Landlord with a copy of any Tenant Protocol required by the Tenant’s Environmental Management Plan. 

6.17.4 If there is a Release of a Hazardous Substance on or about the Premises as a result of an act or omission of the Tenant, the Tenant will follow
the remedial procedures set out in the applicable Tenant Protocol. If the Release has the potential to Pollute the Land or poses a risk to persons in or about the Land, the Tenant will forthwith notify the Landlord of the Release and the remedial
action being taken by the Tenant. 
 6.17.5 Within 60 days of each anniversary of the Commencement Date during the Term and within 60 days of
the expiry of the Term, the Tenant will cause an Audit to be performed and deliver a copy of that Audit to the Landlord. If the Audit includes remedial measures to be followed by the Tenant to ensure future compliance with the Tenant Protocols, the
Tenant will be obliged to enact such remedial measures. 
 6.17.6 The Tenant shall be responsible at its sole expense for remediation of any
Pollution of the Land or Building caused by a Release by the Tenant of a Hazardous Substance. The Tenant will indemnify and save harmless the Landlord from any cost, damage, loss or liability reasonably incurred, or suffered, by the Landlord as a
result or in respect of any Pollution of the Land or Building caused by the Tenant. This indemnity will survive the expiry or earlier termination of this Lease. 

  
 13 

 6.17.7 The Landlord will indemnify and save harmless the Tenant from any cost, damage, loss or liability
reasonably incurred, or suffered, by the Tenant as a result or in respect of any Existing Pollution. This indemnity will survive the expiry or earlier termination of this Lease. 
 6.17.8 If there is an intermingling of Pollution caused by the Tenant and Existing Pollution, the Landlord and the Tenant will share the costs of remediating such intermingled Pollution based on a
reasonable allocation determined in accordance with the allocation principals in the Waste Management Act. 
 6.17.9 If the Landlord is required
by any Authority to determine whether the Land and Building are Polluted or to take Remedial Action regarding Pollution of the Land or Building: 
  

	 	(a)	the Landlord shall notify the Tenant and provide it with a copy of all materials received from the Authority with respect to the Pollution and Remedial Work;

  

	 	(b)	the Landlord and the Tenant, each acting reasonably, shall cooperate with each other to challenge any aspect of the order of the Authority which either party reasonably
believes is incorrect or unjustified and to negotiate with the Authority Remedial Action that is acceptable to the Landlord and the Tenant, each acting reasonably; 

 

	 	(c)	if the Pollution has been caused by the Tenant, the Tenant shall take any Remedial Action which the Authority ultimately requires be taken; and

  

	 	(d)	if the Pollution has not been caused by the Tenant, the Landlord shall take any Remedial Action which the Authority ultimately requires be taken.

 6.17.10 If the Landlord is required by any Authority to take Remedial Action regarding Pollution of the Land or Building not
caused by the Tenant, the Landlord or its respective employees and agents may enter the Premises and may: 
  

	 	(a)	perform any audits, investigations and surveys the Landlord or any Authority considers necessary to determine better the nature and extent of the Pollution and the
necessary Remedial Action, and 

  
 14 

	 	(b)	take any Remedial Action any Authority requires be taken and the Tenant must permit the Landlord, its employees and agents including the Landlord’s Consultant to
have that access to the Premises which is reasonably necessary in the opinion of the Landlord to enable it to comply with the requirements of any Authority and to take Remedial Action, 

provided that the Landlord will take all reasonable steps to minimize the effect of such work on the Tenant and its business. The Landlord shall not
enter the Premises for any such purpose without providing at least 48 hours written notice and specifying a particular time when it proposes to enter the Premises so that the Tenant may arrange any appropriate escort. The provisions of section 7.7
of this Lease shall apply to any entry into the Premises permitted by this section 6.17.10. 
 6.17.11 The Tenant shall cooperate with the
Landlord in the provision of such information at the times and in the form required by the Landlord, acting reasonably, to ensure the, proper monitoring and supervision of the Land and Building with respect to Pollution. 

6.17.12 At the expiry or earlier termination of this Lease the Tenant shall remove at its sole cost and expense any Hazardous Substances which the Tenant
has stored within the Premises. 
 6.18 To abide by and comply with all laws, rules and regulations of every municipal or other authority which
in any manner relate to or affect the business of the Tenant or the use of the Premises by the Tenant. 
 6.19 To pay the Landlord all charges
for maintenance and cleaning of electrical and lighting fixtures and fittings in the Premises and the same is included in “Operating Expenses” herein. The Landlord will have the exclusive right to attend to such maintenance and cleaning
and may adopt a system of periodical renewals on a group basis in accordance with good practice in this respect. 
 6.20 To maintain at the
Tenant’s sole expense but for the common benefit of the Landlord and the Tenant: 
  

	 	(a)	comprehensive general public liability insurance including bodily injury, death and property damage, on an occurrence basis with respect to the use of the Premises and
the Tenant’s use and occupancy thereof in an amount not less than $2,000,000.00; and 

  

	 	(b)	fire and extended coverage insurance on the Tenant’s improvements to the replacement cost thereof, 

  
 15 

 
and such insurance to be in form and with insurers acceptable to the Landlord, acting reasonably, and the Tenant will deliver promptly to the Landlord a certificate confirming that the Tenant has
such insurance if so required by the Landlord. 
 6.21 To immediately advise the Landlord and do all things necessary to remove any dangerous
condition from time to time existing on the Premises and arising as result of the act of or omission of the Tenant, its agents or servants. 

6.22 To indemnify and hold harmless the Landlord from and against all actions, causes of action, suits, claims, demands, damage expense, liens or rights
of lien whatsoever arising out of the occupancy of the Premises hereunder save for negligence or willful misconduct of the Landlord and those for whom the Landlord is at law responsible. 
 6.23 To pay to the Landlord interest at 5% per annum above the rate of interest declared from time to time by the main branch of HSBC Bank Canada as its ‘prime rate’, compounded annually,
on any amount not paid as and when due hereunder until paid. 
 6.24 If the Tenant wishes to register this Lease in the appropriate Land
Title Office, the Tenant may do so at the Tenant’s sole cost. 
  

	7.0	COVENANTS OF LANDLORD 

The Landlord covenants with the Tenant: 
 7.1 For quiet enjoyment. 
 7.2 To complete the Building, including the Landlord’s (Base
Building) Work as set out in the Offer to Lease and Schedule “B” attached thereto, to the extent required to allow the Tenant to occupy the Premises by the commencement of the Fixturing Period for purposes of completing the
Tenant’s Work. 
 7.3 To supply water and other utilities to the Premises for the normal and reasonable requirements of the Tenant and at
the Tenant’s expense without, in any case, being liable for any loss, damage or inconvenience resulting from failure of the supply of utilities to the Building. 
 7.4 To provide, maintain and operate during Normal Business Hours, and outside of Normal Business Hours at the request of the Tenant at the sole additional cost of the Tenant, an efficient heating,
ventilating 

  
 16 

 
and air conditioning system where provided in the Building. The Tenant shall be solely responsible to maintain, operate, repair, and replace any heating, ventilation and air conditioning system
not provided by the Landlord as part of the Landlord’s (Base Building) Work which has been installed or constructed by the Tenant as part of the Tenant’s Work. 
 7.5 The Landlord shall take out or cause to be taken out and keep or cause to be kept in full force and effect: 
  

	 	(a)	“all risk” insurance on the Buildings and improvements in an amount such as would be carried out by a prudent owner, subject to such deductions and exceptions
as the Landlord may determine, acting as a reasonably prudent landlord, against fire and such other hazards covered by policies normally in use from time to time for buildings and improvements of a similar nature similarly situated;

  

	 	(b)	comprehensive public liability insurance in respect of the Building of a kind and in an amount such as would be carried by a prudent owner, subject to such deductions
and exceptions as the Landlord may determine, acting reasonably; 

  

	 	(c)	loss or rental income insurance not exceeding Basic Rent, Additional Rent, Operating Expenses and Taxes for the Building of which the Premises form a part for a period
not exceeding eighteen (18) months; 

 provided that nothing herein shall prevent the Landlord from insuring with broader
coverage, acting as a reasonably prudent landlord. 
 7.6 Each policy of insurance carried by the Landlord hereunder shall contain a waiver of
the insurer’s right of subrogation against the Tenant and each policy of insurance carried by the Tenant pursuant to this Lease shall contain a waiver of the insurer’s right of subrogation against the Landlord. 

7.7 Except in the case of an emergency when no representative of the Tenant is available, in accordance with Section 6.17, or following default by
the Tenant, not to enter the Premises without an escort designated by the Tenant unless the Tenant specifically confirms otherwise or a representative of the Tenant fails to attend with the Landlord at the specific time identified by the Landlord in
any notice required to be provided to the Tenant by the Landlord prior to entry into the Premises as may be set out in this Lease. The Tenant shall not be liable to the Landlord or any other party acting on behalf of the Landlord for any loss,
damage, 

  
 17 

 
cost or injury arising in connection with any unescorted entry by the Landlord or any other party acting on behalf of the Landlord into the Premises and the Landlord hereby releases the Tenant
for any liability arising therefrom. 
 7.8 To operate, manage and maintain the Building as a first class suburban office park building.

 7.9 To repair and maintain, at its sole expense, the structural elements of the Building. 

 

	8.0	ALTERATIONS AND IMPROVEMENTS 

 8.1 Save
for the installation of trade fixtures and furnishings, the Tenant will make no alterations, installations, removals, additions or improvements in or about the Premises without the Landlord’s prior written consent, which consent will not be
unreasonably withheld or delayed, and in the event of such consent, all work is done at the Tenant’s sole expense and at such times and such manner as the Landlord may reasonably approve. 

8.2 The Tenant will not suffer or permit any builders’ liens to be filed against the interest of the Landlord in the Land or the Premises by reason
of work, labour, services or material supplied or claimed to have been supplied to the Tenant or for which the Tenant may be in any way obligated, and if any such builders’ lien will at any time be filed against the Land or the Premises
whatsoever, the Tenant will cause the same to be discharged from title to the Land within 20 days of the date the Tenant has knowledge of such filing. The Landlord may wish to post security under the provisions of the Builders Lien Act or any
legislation replacing such Act. 
 8.3 All articles of personal property and all business and trade fixtures, machinery and equipment, cabinet
work, furniture and movable or immovable partitions owned or installed by the Tenant at the expense of the Tenant in the Premises will remain the property of the Tenant and may be removed by the Tenant at any time during the Term, provided that the
Tenant at its expense will repair any damage to the premises or the Building caused by such removal of the original installation. 
 8.4 The
Landlord may elect to require the Tenant to remove all or any part of the business and trade fixtures, machinery and equipment, cabinet work, furniture and movable and immovable partitions owned or installed by or on behalf of the Tenant after the
commencement of the Term (other than those which constitute ordinary and reasonable commercial fixtures and improvements which would be reasonably useable by other commercial tenants) at the expiration of this Lease in which event such removal is
done at the Tenant’s expense and the Tenant will, at its expense, repair any damage to the Premises or to the Building caused by such removal. 

  
 18 

 8.5 If the Tenant does not remove the property set out in Section 8.4 forthwith after written demand by
the Landlord, such property will, if the Landlord elects, be deemed to become the Landlord’s property and the Landlord may remove the same at the same at the expense of the Tenant and the cost of such removal will be paid by the Tenant
forthwith to the Landlord on written demand and the Landlord will not be responsible for any loss or damage to such property because of such removal. 
  

	9.0	IMPROVEMENT OF PREMISES 

 9.1 The Landlord
shall construct the Building diligently and in a good and workmanlike manner in such a manner that it shall be considered as a first class suburban office building. The Landlord shall complete the Landlord’s (Base Building) Work described as
Landlord’s Work in Schedule “B” the Offer to Lease prior to the commencement of the Fixturing Period. 
 9.2 Any
Tenant’s Work or improvements undertaken by the Tenant shall be completed in accordance with the terms of the Offer to Lease and Schedule “B” thereto. 
 9.3 Without limiting the generality of the foregoing, all Tenant’s Work shall be approved by the Landlord in advance and the Landlord shall act reasonably and without delay in its review of the
Tenant’s working drawings. 
  

	10.0	FIXTURING PERIOD 

 10.1 The Fixturing
Period means the period of ninety (90) days from the date the Landlord’s (Base Building) Work is substantially completed and the Premises are turned over to the Tenant for purposes of the Tenant’s Work. The Landlord shall provide the
Tenant with no later than thirty (30) days notice that the Landlord’s (Base Building) Work will be completed and ready for commencement of the Fixturing Period. The Landlord may provide notice to the Tenant of the commencement of the
Fixturing Period at any time following execution of the Offer to Lease whether or not this Lease has been executed by the parties hereto. If the Fixturing Period has not commenced by March 1, 2001, the Tenant may, at it sole option, terminate
this Lease and the deposit, plus all accrued interest, shall be returned to the Tenant. 
 10.2 The Tenant shall have exclusive possession of
the Premises for at least the last 45 days of the Fixturing Period. In the event the Tenant is unable to obtain exclusive possession for at least the last 45 days 

  
 19 

 
of the Fixturing Period, then the Fixturing Period will be extended to such date in order to allow the Tenant exclusive possession of the Premises for 45 consecutive days. In any event, the
Tenant’s possession of the Premises during the balance of the Fixturing Period may be in common with the Landlord, provided the Landlord shall use all reasonable best efforts to ensure its contractors do not interfere with the construction and
installation of the Tenant’s Work. 
 10.3 Prior to the commencement of the Fixturing Period, but following substantial completion of the
Landlord’s (Base Building) Work, the Landlord shall allow the Tenant to occupy the Premises on the first day following the day on which the Landlord can provide lawful occupancy to the Tenant for the purposes of allowing the Tenant to perform
the Tenant’s Work. Any period which the Tenant is allowed to occupy the Premises under this Section 10.3 shall be Basic Rent and Additional Rent free and shall not reduce the Fixturing Period. 

 

	11.0	SUBORDINATION 

 11.1 This Lease will, at
the request of the Landlord, be made subject and subordinate to all mortgages which now or hereafter during the Term is recorded in the appropriate Land Title Office as a mortgage against the Land and Premises. The Tenant will execute promptly
from time to time any assurance the Landlord may properly require to confirm this subordination with respect to any mortgage now or hereafter recorded provided that the Mortgagee provides to the Tenant a written non-disturbance agreement from any
mortgagee in a form acceptable to the Tenant, acting reasonably. 
 11.2 Whenever required by any Mortgagee or a Trustee on behalf of a
Mortgagee of any mortgage as contemplated in Section 10.1, the Tenant will attorn to and become a Tenant or Licensee of such Mortgagee or Trustee or any purchaser from the Mortgagee or Trustee in the event of an exercise by the Mortgagee or
Trustee of its power of sale in the mortgage set out for the then unexpired residue of the Term upon all of the terms and conditions hereof, provided that such Mortgagee or Trustee has provided a non-disturbance agreement as contemplated in
Section 11.1, subject to the terms of the non-disturbance agreement. 
 11.3 Whenever required by the Landlord, any Mortgagee or a Trustee
on behalf of a Mortgagee, the Tenant shall promptly execute an estoppel certificate confirming this Lease and the significant business terms. 

  
 20 

	12.0	PROPERTY ETC. DAMAGE 

 12.1 The Landlord
will not be liable for any injury or damage to persons or property resulting from fire, explosions, failing plaster, steam gas, electricity, water, rain, snow or leaks from any part of the Building or from pipes, appliances or plumbing works or from
the roof, street or subsurface or from any other place unless caused by the negligence of the Landlord, its servants or agents, or those for whom the Landlord is responsible at law. 
 12.2 The Tenant will reimburse and indemnify and save harmless the Landlord for and from all expense, damages, loss or fines incurred or suffered by the Landlord by reason of any breach, violation or
nonperformance by the Tenant of any covenant or provision of this Lease or by reason of damage which is caused by the Tenant, its servants or agents. 
 12.3 The Tenant will give the Landlord immediate notice in case of fire or accident in the Premises or in the Building of which the Tenant is aware. 

 

	13.0	DAMAGE TO OR DESTRUCTION OF PREMISES 

13.1 If the Premises are damaged by fire or other casualty or if the Building is so damaged thereby restricting the use of the Premises then the Rent will
abate in whole or in part according to the portion of the Premises which is non-usable by the Tenant until such damage is repaired and the Tenant is able to operate its business therefrom. 
 13.2 Except as provided in Section 12.3 if the Premises is damaged by fire or other casualty, the damages to the Premises will be repaired by the Landlord at its expense except that repairs to
alterations or improvements made by the Tenant at its expense will be performed by the Landlord at the expense of the Tenant and the Tenant will at its own expense make all repairs and replacements of property which the Tenant is entitled to remove
pursuant to Section 8.3. All repairs which the Landlord is required to make hereunder will be made with due diligence provided that the Landlord will not be liable to the Tenant for any loss or damage suffered by the Tenant as a result of any
reasonable delay which may arise by reason of adjustment of insurance on the part of the Landlord on account of labour troubles or any other cause beyond the Landlord’s control. 
 13.3 If the Premises are rendered untenantable by fire or other casualty and if the Landlord decides not to restore the same or if the Building is so damaged that the Landlord will decide not to restore
it or it is determined by the Landlord, acting reasonably, that the Building or the Premises cannot be restored within 6 months of such damage, then in any of such events, the Landlord will, within 45 days after such fire or other

  
 21 

 
casualty, give to the Tenant a notice in writing of such decision and within 30 days thereafter either the Landlord or Tenant may elect to terminate this Lease by notice in writing, the Term will
expire forthwith, and the Tenant will vacate the Premises and surrender the same to the Landlord. If the Landlord does not give notice as aforesaid and the Premises or the Building, as the case may be, are not restored within six months from the
time of the fire or other casualty causing the damage (subject to such time period being extended by the length of any reasonable delay which may arise by reason of adjustment of insurance on the part of the Landlord on account of labour troubles or
any other cause beyond the Landlord’s control) the Tenant may at its option, to be exercised within 10 days of the termination of said period of six months (or the termination of such later period as extended hereby) by notice in writing,
terminate this Lease forthwith. Upon the termination of this Lease under the conditions provided in this clause the Tenant’s liability for Rent will cease as of the day following the fire or casualty. 

 

	14.0	ACCESS TO DEMISED PREMISES 

 14.1 The
Tenant will permit the Landlord to erect, build, use and maintain unexposed pipes, ducts and conduits in and through the Premises, Subject to Section 7.7, the Landlord its servants and agents will have the right to enter the Premises at
reasonable times upon 48 hours written notice to examine the same and make such repairs, alterations, improvements or additions as the Landlord may deem necessary or desirable in the Premises or as the Landlord may be required to make by law or in
order to repair and maintain the Building, and the Landlord will be allowed to take all material into the Premises that may be required therefor without the same constituting eviction of the Tenant in whole or in part and the Rent reserved will in
no way abate while said repairs, alterations, improvements, or additions are being made by reason of interruption of the business of the Tenant. The Landlord will exercise reasonable diligence as to minimize the disturbance or interruptions of the
Tenant’s operations. 
 14.2 During the six months prior to the expiration of the Term or any renewal term, the Landlord may exhibit the
Premises during Normal Business Hours to prospective tenants upon reasonable notice to the Tenant and for such purposes the Landlord, subject to Section 7.7 will have the right of entry to the Premises at any reasonable time and the Tenant at
its option may have any servant or agent present at the time of such entry. The Landlord will have the right during the last six months of the Term to place upon the Premises a notice of reasonable dimensions and reasonably placed so as not to
interfere with the business of the Tenant, stating that the Premises are for rent and further provided that the Tenant will not remove such notice or permit the same to be removed. 

  
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	15.0	OPERATING EXPENSES AND TAXES 

 15.1 The
Tenant will promptly pay the Tenant’s Taxes as they become due and shall pay goods and services taxes applicable to Rent and Additional Rent when due. 
 15.2 If the Landlord is required by lawful authority or considers it desirable to pay the Tenant’s Taxes which the Tenant fails or neglects to pay, the Tenant will pay the amount thereof to the
Landlord forthwith after written request thereof. 
 15.3 The Tenant will pay to the Landlord its Proportionate Share of Operating Expenses and
Taxes payable in 12 equal installments with the monthly payments of Rent as and when required hereunder. The Landlord will, within 90 days of its year-end, provide the Tenant with annual statements as to Operating Expenses and Taxes paid by the
Tenant during the year. The Landlord will, at the Tenant’s request by written notice given within 180 days after receipt of such statements, permit the Tenant to review invoices relating to those Operating Expenses contained in the annual
statements at a time or times convenient to the Landlord, acting reasonably. 
 15.4 The Landlord may, at its option from time to time estimate
the amount which may be payable by the Tenant pursuant to Section 14.3 and the Tenant will pay to the Landlord with the monthly payments of Rent as and when required hereunder its Proportionate Share thereof so that the Landlord will have
sufficient funds on hand to pay the Operating Expenses and Taxes as they become due and payable. The Landlord will promptly refund to the Tenant any amount of any overpayment by the Tenant by reason that the estimate aforesaid paid by the Tenant
exceeds the actual amount payable by the Tenant. 
 15.5 The certificate of an independent certified accountant appointed by the Landlord will
in the event of a dispute be conclusive and binding upon the Landlord and the Tenant as to any amount payable from time to time under this Section 14.0 and the reasonable cost of obtaining such certificate is borne equally by the Landlord and
the Tenant. 
 15.6 The Tenant shall pay good and services tax applicable to all Additional Rent payable hereunder. 

 

	16.0	ADDITIONAL RENT AND PRO RATA PORTION OF PAYMENTS 

 16.1 Any money payable by the Tenant to the Landlord hereunder other than the Basic Rent expressed in Section 3.0 and goods and services tax is deemed to be Rent and is paid as Additional Rent and is
collectible as such and in the absence of any other provisions hereunder, is payable with the next ensuing monthly installment of Rent. 

  
 23 

 16.2 If the Term will commence or cease on a day other than the commencement or end of any period
contemplated herein or if any money is payable hereunder for a period less than that contemplated in relation thereto, the Tenant will pay to the Landlord its Pro Rata Portion of the Rent or such payment for the period. 

16.3 Goods and services tax payable hereunder shall not be deemed to be Rent, but the Landlord shall have all remedies for non-payment of goods and
services tax payable as it would for Rent in arrears. 
 16.4 The Tenant acknowledges that the Tenant is required to pay provincial sales tax
under the Social Services Tax Act on the parking stall charges set out in Section 29.1(b) and the Landlord shall have all remedies for non-payment of the sales tax payable as it would for Rent in arrears. 

 

	17.0	DEFAULT 

 17.1 The Tenant covenants with
the Landlord that if the Tenant violates or neglects any covenant, agreement or stipulation herein contained on its part to be kept, performed or observed and any such default on the part of the Tenant continues for 15 days after written notice
thereof to the Tenant by the Landlord (provided that if such default cannot reasonably be remedied within 15 days, then the Tenant shall not be in default if the Tenant commences to remedy the default within such 15-day period and proceeds with all
reasonable diligence), or if any payments of Rent or any part thereof, whether the same are demanded or not, are not paid within five days after written demand by the Landlord, then and in any such case the Landlord in addition to any other remedy
now or hereafter provided by law may at its option cancel and annul this Lease forthwith and re-enter and may remove all persons and property and may use such force and assistance in making such removal as the Landlord may deem advisable to recover
at once full and exclusive possession of the Premises and such re-entry will not operate as a waiver or satisfaction in whole or in part of any right, claim or demand arising out of or connected with any breach or violations by the Tenant of any
covenant or agreement on its part to be performed. 
 17.2 If the Term or any renewal thereof or any of the goods or chattels of the Tenant are
at any time seized or taken in execution or attachment by any creditor of the Tenant or if the Landlord makes any assignment for the benefit of creditors or becomes bankrupt or insolvent or takes the benefit of any bankruptcy or insolvency
legislation, the then current month’s Rent together with the Rent accruing for the next three months will immediately become due and payable, and the Term or any renewal thereof will at the option of the Landlord

  
 24 

 
become forfeit and void, and it is lawful for the Landlord at any time thereafter to re-enter into or upon the Premises or any part thereof in the name of the whole and the same to have again,
repossess and enjoy as of its former estate, notwithstanding anything herein contained to the contrary and neither this Lease nor any interests therein nor any estate hereby created will pass or enure to the benefit of any trustee in bankruptcy or
any receiver or assignee for the benefit of creditors or otherwise by operation of law. 
  

	18.0	DISTRESS 

 18.1 Whensoever the Landlord is
entitled to levy distress against the goods and chattels of the Tenant it may use such force as it may deem necessary for the purpose and for gaining admission to the Premises without being liable for any action in respect thereof or for any loss or
damage occasioned thereby and the Tenant hereby expressly releases the Landlord from all action, proceedings, claims or demand whatsoever for or on account or in respect of any such forcible entry or any loss or damage sustained by the Tenant in
connection therewith. 
  

	19.0	LANDLORD’S EXPENSES ENFORCING LEASE 

19.1 If it is necessary for the Landlord to retain the services of a solicitor or any other proper person for the purpose of assisting the Landlord in
enforcing any of its rights hereunder in the event of default on the part of the Tenant which is substantiated by a court of law, it is entitled to collect from the Tenant the cost of all such services including all necessary court proceedings at
trial or on appeal on a solicitor and own client basis as if the same were Rent reserved and in arrears hereunder. 
  

	20.0	WAIVER 

 20.1 The failure of either party
to insist upon strict performance of any covenant or condition contained in this Lease or to exercise any right or option hereunder will not be construed as a waiver or relinquishment for the future of any such covenant, condition, right or option.

 20.2 The acceptance of any Rent from or the performance of any obligation hereunder by a person other than the Tenant will not be construed
as an admission by the Landlord of any right, title or interest of such person as a sub-Tenant, assignee, transferee or otherwise in the place and stead of the Tenant. 
 20.3 The acceptance by the Landlord of part payment of any sums required to be paid hereunder will not constitute waiver or release of the right of the Landlord to payment in full of such sums.

  
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	21.0	HOLD OVER 

 21.1 If at the expiration of
the Term the Tenant continues occupation with the consent of the Landlord, the tenancy of the Tenant thereafter will, in the absence of written agreement to the contrary, be from month-to-month only at a rental per month equal to one hundred
twenty-five percent of the monthly rental payable for the year immediately proceeding such expiration, payable monthly in advance on the first on the first day of each lease month and will be subject to all other terms and conditions of this Lease.

  

	22.0	INABILITY TO PERFORM/FORCE MAJEURE 

 22.1
The Landlord does not warrant that any service of facility provided by it hereunder will be free from interruptions caused or required by strikes, riots, insurrections, labour controversies, force majeure, act of God or other cause or causes beyond
the Landlord’s reasonable care and control. No such interruptions will be deemed an eviction or disturbance of the Tenant’s enjoyment of the Premises nor render the Landlord liable in damages to the Tenant nor relieve the parties from
their obligations under this Lease provided that both parties will, without delay, take all reasonable steps to remove the cause of such interruption and minimize the delays. 
 22.2 All of the dates and payment obligations will be extended because of Force Majeure for the purposes hereof. Force Majeure means any delays by the Landlord or the Tenant in completing any of the
terms, obligations, or conditions contained in the Offer to Lease, which delay is directly or indirectly caused by labour strikes, power failures, restrictive government laws or regulations not in place at the time of signing the Offer to Lease,
riots, insurrections, sabotage, war, rebellion or acts of God or other causes beyond the Landlord’s or the Tenant’s reasonable control. No such interruption shall render the Landlord or the Tenant liable in damages to the other, nor
relieve either party from its obligations under this Lease, provided that both parties shall, without delay, take all reasonable and practical steps within its power to remove the cause of such interruption and minimize the delays. This clause does
not excuse delays caused by normal weather patterns within the Burnaby area. 
  

	23.0	RULES AND REGULATIONS 

 23.1 The Tenant
and its servants, employees and agents will observe faithfully and comply strictly with such rules and regulations as the Landlord may from time to time adopt, acting reasonably and provided at least 30 days’ prior written notice of any such
rules and regulations shall be given to the Tenant. Nothing in this Lease contained will be construed to impose upon the Landlord any duty or obligation to enforce the rules 

  
 26 

 
and regulations or the terms, covenants or conditions in any other lease against any other tenant of the Building, and the Landlord will not be liable to the Tenant for violation of the same by
any other tenant, its servants, employees, agents, visitors or licensees. 
 23.2 The Landlord confirms that while the Tenant is the sole tenant
of the Building, the Landlord will not adopt any rules and regulations under this Section 23.0, unless any such rules and regulations have been first approved in writing by the Tenant, acting reasonably. 

 

	24.0	LANDLORD’S RIGHT TO PERFORM 

 24.1 If
the Tenant fails to perform any of the covenants or obligations of the Tenant under or in respect of this Lease beyond the applicable cure period provided for in this Lease, the Landlord may, upon giving the notice required hereunder to the Tenant,
perform or cause to be performed any of such covenants or obligations or any part thereof. For such purpose, the Landlord may do such things as may be requisite and may enter upon the Premises to do such things and all expenses incurred and
expenditures made by or on behalf of the Landlord will be paid forthwith by the Tenant to the Landlord. If the Tenant fails to pay the same, the Landlord may add the same to the Rent and recover the same by all remedies available to the Landlord for
the recovery of Rent in arrears provided that if the Landlord commences or completes either the performance or the causing to be performed of any of such covenants or obligations or any part thereof, the Landlord will not be obliged to complete such
performance of causing to be performed or be later obliged to act in like fashion. 
  

	25.0	REMEDIES CUMULATIVE 

 25.1 No remedy
conferred upon or reserved to the Landlord herein by statute or otherwise is considered exclusive of any other remedy but the same is cumulative and is in addition to every other remedy available to the Landlord and all such remedies and powers of
the Landlord may be exercised concurrently and from time to time and often as may be expedient by the Landlord. 
  

	26.0	LANDLORD’S LIMIT OF LIABILITY 

 26.1
The term “Landlord” as used in this Lease so far as covenants or obligations on the part of the Landlord are concerned is limited to mean the Landlord as herein before set out, while it retains its interest in the Land and Premises but
upon a transfer of that interest, the Landlord is automatically relieved after the date of such transfer of all personal liability arising out of the requirement for performance of any obligations on

  
 27 

 
the part of the Landlord herein contained (except to the extent incurred prior to such transfer), provided that this release from liability will become effective only to the extent the transferee
has expressly assumed in writing, subject to the limitations of this Section, all of the terms of this Lease to be performed on the part of the Landlord, it being intended hereby that the obligations contained in this Lease on the part of the
Landlord is binding upon the Landlord, its successors and assigns, only during and in respect of the respective successive periods of their interest in the Land and Premises. 

 

	27.0	LETTER OF CREDIT 

 27.1 The Tenant shall,
on or before the commencement of the Term, deliver to the Landlord an irrevocable unconditional letter of credit issued by a Canadian chartered bank payable to the Landlord in an amount of $1,000,000. The letter of credit shall be renewed by the
Tenant during the first 5 years of the Term of the Lease in order to secure the Landlord against default of any obligations by the Tenant under this Lease. The amount of the letter of credit will decline as follows: Year 1 – 100% of amount
above; Year 2 – 100% of amount above; Year 3 – 75% of amount above; Year 4 – 75% of amount above; and Year 5 – 25% of amount above. If the Tenant is in default of any of its obligations hereunder beyond the applicable cure period
set out in this Lease during the first 5 years of the Term, the Landlord shall be entitled to make partial draws under the letter of credit provided that in the case of an non monetary default the Landlord has first provided the Tenant with 15 days
written notice of its intention to do so and to apply the proceeds thereof to any Rent then due or in respect of any costs, expenses or losses incurred by the Landlord in respect of any default by the Tenant under this Lease. If any partial
draw-down is made during the first 5 years, the Tenant shall, within 15 days thereafter, restore the letter of credit to the full amount required during the year such default was made as set out above, failing which the Landlord may convert the
entire letter of credit to cash to be applied on account of Rent or to the Landlord’s damages arising from the Tenant’s default hereunder. 
  

	28.0	WHOLE OF AGREEMENT 

 28.1 The Tenant
agrees that the Premises are leased by the Tenant without any representations or warranties other than as contained in this Lease and Offer to Lease and that no representative or Agent of the Landlord is or is authorized or permitted to make any
representations with reference hereto or to vary or modify this Lease in any way, except in writing under seal, and that this Lease contains all of the agreements and conditions made between the parties hereto. The Offer to Lease shall survive
execution of this Lease, provided that where this Lease expressly contradicts the Offer to Lease, this Lease shall govern. 

  
 28 

	29.0	USE OF COMMON AREAS/PARKING 

 29.1 With
respect to the Common Areas and parking: 
  

	 	(a)	The Landlord grants to the Tenant for the Term as an appurtenant part of this Lease, for use by the Tenant and its agents, invitees, servants, employees, licensees and
customers, in common with the Landlord and its agents, invitees, servants, employees, and licensees, the non-exclusive right and licence to use the Common Areas for the purposes as provided herein and in accordance with good business practice, upon
and subject to the covenants and conditions hereinafter expressed and in particular, without limiting the generality of the foregoing, such right, servitude, right-of-way and licence of use hereby granted to the Tenant shall include the right to use
the parking areas (including the means of pedestrian and vehicular access and the entrances and exits to and from the Land and Building included therein) for the purposes of pedestrian and vehicular access to and from the Land and Building and the
parking of vehicles in parking spaces provided therein; and 

  

	 	(b)	the Tenant shall rent from the Landlord all the parking underground and all the parking in the surface parking lot immediately adjacent to the Building being a total of
149 legal stalls at the following rates: 

  

	 	(i)	Forty-five ($45.00) Dollars per month per stall for the 27 surface stalls; and 

 

	 	(ii)	Sixty ($60.00) Dollars per month per stall for the 122 underground parking stalls for the Term; 

Parking rates shall be subject to applicable goods and services taxes, provincial sales tax under the Social Services Tax Act and to
annual adjustments during the Term based upon prevailing market rates. The Tenant shall be entitled to park motorcycles and store bicycles in designated areas at no additional charge. 

 

	30.0	OPTIONS TO RENEW 

 30.1 If the Tenant is
not then in material default of its covenants under the Lease, the Landlord shall grant to the Tenant upon eight (8) months’ written notice prior to the expiration of the term or the applicable renewal term, as the case may be, two renewal
leases each for a term of five (5) years upon the same terms and conditions contained herein, save as to Basic Rent, free rent, Landlord’s (Base Building) Work, 

  
 29 

 
Leasehold Improvement Allowance and/or any other inducement granted by the Landlord to the Tenant, plus GST, and as to any option to renew after the second renewal term. Basic Rent for said
renewal term shall be agreed upon between the parties and shall be based on the fair market rental for premises of similar size, quality and location, excluding any improvements paid for by the Tenant over and above the Leasehold Improvement
Allowance, at time of renewal, but shall not be less than the Basic Rent payable during the last year of the term of this Lease. The Landlord and Tenant shall attempt to agree on the fair market rental for the renewal term during the sixty
(60) day period immediately preceding the expiry of the initial term. Failing agreement as to the rental rate, the rate shall be determined by a single arbitrator under the Commercial Arbitration Act of British Columbia. 

 

	31.0	LEASEHOLD IMPROVEMENT ALLOWANCE 

 31.1 For
greater certainty, the Leasehold Improvement Allowance of $1,380,000.00 plus GST shall be paid by the Landlord to the Tenant within 15 days of the following being complete: 

 

	 	(a)	the Lease having been executed by the Tenant and returned to the Landlord; 

 

	 	(b)	the Tenant having submitted to the Landlord bona fide invoices as satisfactory evidence of payment of all of the Tenant’s contractors in full for the Tenant’s
Work by the Tenant including, but not limited to, a statutory declaration that all fees and payments resulting from the modification and fixturing of the Premises have been paid; 

 

	 	(c)	an occupancy permit and proof of substantial completion of the Tenant’s Work as certified by the Tenant’s consultants in writing have been provided by the
Tenant to the Landlord; and 

  

	 	(d)	all holdback periods applicable under the Builders Lien Act have expired and no builders liens have been filed. This condition under Section 31.1(d) shall
apply to ten percent (10%) of the Leasehold Improvement Allowance. 

 31.2 Any unused portion of the Leasehold Improvement
Allowance shall be credited to the Tenant in the form of free rent in addition to other free rent provided herein from the Commencement Date. 
  

	32.0	RIGHT OF FIRST OPPORTUNITY (BUILDING 8) 

32.1 If the Landlord intends to lease space, except on a renewal of an existing lease, within Building 8 (the “Additional Space”), the Landlord
shall deliver written notice (the “Notice”) to the Tenant indicating its 

  
 30 

 
intention to lease the Additional Space. The Tenant shall have 5 business days, following delivery of the Notice, to provide a written proposal (the “Tenant’s Proposal”) in respect
of the Additional Space including rent, term and inducements to the Landlord. Following receipt of the Tenant’s Proposal, the Landlord shall have 5 business days to accept or reject the Tenant’s Proposal at the Landlord’s sole
discretion. If the Landlord accepts the Tenant’s Proposal, a lease for the Additional Space shall be entered into generally in the form of this Lease upon the terms set out in the Tenant’s Proposal. If the Landlord rejects the
Tenant’s Proposal, the Landlord shall not lease the Additional Space upon terms and conditions which are determined by the Landlord, acting reasonably, to be less favourable to the Landlord than those set out in the Tenant’s Proposal
including a consideration of the covenant/financial standing of the proposed tenant. If the Landlord does not so lease the Additional Space within six (6) months of the original Notice, the terms of this provision shall again apply to any
proposed leasing of the Additional Space for a period expiring on the first anniversary of the substantial completion of the Building. If, following delivery of a Notice, the Tenant does not submit a Tenant’s Proposal, the Landlord shall be
free to lease the Additional Space upon such terms and conditions as the Landlord shall determine. The Tenant acknowledges that the intent of this right of first opportunity is to provide an opportunity for the Tenant to obtain additional premises
proximate to the Premises as the Tenant’s business expands and not to create a commercial opportunity for the Tenant in the real estate market. While any lease of the Additional Space will permit the Tenant to sublet the Additional Space with
the prior written consent of the Landlord having been first obtained with such consent not to be unreasonably or arbitrarily withheld or delayed the lease shall contain the following limitations with respect to any sublease of the Additional Space:

  

	 	(a)	the Tenant is not allowed to profit on any subletting and shall be prohibited from subletting any of the Additional Space on financial terms more favorable to the
Tenant than the Tenant’s financial obligations to the Landlord set out in the lease for the Additional Space; 

  

	 	(b)	to the extent there are revenues or other monetary benefits to the Tenant arising out of any sublease of any Additional Space in excess of the monetary obligations of
the Tenant to the Landlord then the benefits whether by way of increased rent or otherwise shall be for the sole account of the Landlord; 

  

	 	(c)	 for the purposes of subsections (a) and (b), any increased rent or other benefits obtained by the Tenant in any sublease of the Additional Space
from any subtenant arising solely from any benefit to the subtenant from any leasehold or other improvements installed or constructed by the Tenant in the sublease premises at the cost and expense of the Tenant over

  
 31 

	 	
and above any leasehold improvement or similar allowance provided to the Tenant by the Landlord in any lease for the Additional Space, shall not be deemed to be profit, revenue or other monetary
benefit to the Tenant for which the Tenant must account to the Landlord; 

  

	 	(d)	the Landlord shall not be obligated to pay any inducement, leasehold improvement allowance or provide any other benefit provided to the Tenant in any lease for the
Additional Space to any subtenant; 

  

	 	(e)	the Tenant, despite any sublease, shall not be released in any manner from any covenant to be observed or performed by the Tenant in any lease for the Additional Space;
and 

  

	 	(f)	in any advertising or other promotion of any sublease premises in the Additional Space the Tenant and any agent or broker on behalf of the Tenant shall not print,
publish, post, display or broadcast including in any electronic format any reference to the lease rate being offered by the Tenant for sublease premises in the Additional Space. 

 

	33.0	NOTICES 

 33.1 Any notice required or
contemplated by any provision of this Lease or which the Landlord or Tenant may desire to give to the other is sufficiently given by personal delivery or by registered letter, postage prepaid and mailed in one of the Canada Post Offices in the City
of Vancouver, British Columbia, and addressed to the party to whom such notice is to be given at the address of such party as given in this Lease or at such other address as either party may notify the other of in writing during the Term, if to the
Tenant, addressed to the Premises and any such notice is effective as of the day of such personal delivery or as of the day four days following the date of such posting as the case may be. 

 

	34.0	INTERPRETATION 

 34.1 This Indenture is
construed in accordance with laws of British Columbia. 
 34.2 Where required the singular number is deemed to include the plural and the neuter
gender the masculine or feminine and the captions herein are for convenience only and will not constitute a part of this Lease. 
 34.3 The
definition of any words used in any Section of this lease will apply to such words when used in any other Section hereof whenever the context is consistent. 

  
 32 

 34.4 In case of more than one Tenant, the said grants, covenants, conditions, provisos, agreements, rights,
powers, privilege and liabilities is construed and held to be several as well as joint. 
 34.5 THIS INDENTURE will enure to the benefit of and
be binding upon the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns. 

IN WITNESS WHEREOF each of the parties hereto has affixed its hand or corporate seal to these presents on the day and year first above
written. 
 THIS LEASE is not valid unless countersigned by the Landlord. 

 

					
	THE COMMON SEAL of DISCOVERY PARKS INCORPORATED was hereunto affixed in the presence of:	 		 	
			
	 /s/ Authorized Signatory
	 		 	C/S
	Authorized Signatory	 		 	
			
	 /s/ Authorized Signatory
	 		 	
	Authorized Signatory	 		 	

  

					
	THE COMMON SEAL of XENON GENETICS INC. was hereunto affixed in the presence of:	 		 	
			
	 /s/ Authorized Signatory
	 		 	
	Authorized Signatory	 		 	C/S
			
	 /s/ Authorized Signatory
	 		 	
	Authorized Signatory	 		 	

  
 33 

 LEASE SURVEYS 
 @ 
 3650 GILMORE WAY, BURNABY 

(ACCORDING TO BOMA STANDARDS) 
  

			
	 MATSON PECK AND TOPLISS

SURVEYORS AND ENGINEERS
 210 - 8171 Cook
Road
 Richmond, B.C.
 V6Y
3T8
 Ph: 270-9331
 Fax:
270-4137
 CAD File : 12999-L. FIN
	 	DATE: JAN. 26, 2001

  
 

 

  
 

 

  
 

 

  
 

 

  
 

 

  
 

 

 3650 GILMORE WAY, BURNABY - BUILDING 10 

 

					
	FLOOR	  	AREA - SQUARE METRES	  	AREA - SQUARE FEET
	 P2
	  	73.9	  	796
	 P1
	  	85.0	  	915
	 GROUND
	  	1677.9	  	18061
	 SECOND
	  	1677.9	  	18061
	 THIRD
	  	1691.2	  	18204
	 ROOF
	  	68.7	  	739
	 TOTAL
	  	5274.6	  	56776

 MATSON PECK AND TOPLISS 
 SURVEYORS AND ENGINEERS 
 210 - 8171 Cook Road 

Richmond, B.C. 
 V6Y 3T8 

Ph: 270-9331 
 Fax: 270-4137 

 LEASE EXTENSION AND MODIFICATION AGREEMENT 

THIS AGREEMENT made effective the 8th day of November, 2010. 
 BETWEEN: 
 CONCERT REAL ESTATE CORPORATION 

(the “Landlord”) 

AND: 
 XENON PHARMACEUTICALS
INC. 
 (the “Tenant”) 
 WHEREAS: 
  

	A.	By a lease made in 2001 (the “Lease”) between Discovery Parks Incorporated (the “Original Landlord”) and Xenon Genetics Inc. (the “Original
Tenant”), the Original Tenant leased certain premises (the “Premises”) on the property known as 3650 Gilmore Way, Burnaby, British Columbia, as more particularly described in the Lease, for a term of ten (10) years
expiring on April 14, 2011; 

  

	B.	The Landlord is the successor in interest to the Original Landlord; 

  

	C.	The Tenant is the successor in interest to the Original Tenant; 

  

	D.	The Landlord and the Tenant acknowledge and agree that the recitals hereto are true and incontrovertible; 

 

	E.	The Landlord and the Tenant have agreed to extend the term of the Lease and to amend the Lease in the manner set out herein. 

THEREFORE in consideration of the premises, the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged by each of the parties hereto, the parties agree as follows: 
  

	1.	For the purposes of this Agreement and unless there is a definition specifically herein contained, any words, terms or phrases that are defined in the Lease shall have
the same meaning herein. 

  

	2.	The Landlord hereby leases the Premises to the Tenant for a further term of Four (4) Months and Sixteen (16) Days (the “Extended Term”)
commencing on April 15, 2011 and terminating on August 31, 2011, on and subject to the terms of the Lease, except as amended herein. 

	3.	For the Extended Term, the Basic Rent will be as follows on the first day of each and every calendar month: 

 

									
	Extended Term	  	 Basic Rent Per

Square Foot

Per Annum
	 	  	 Monthly
 Installments
	 
	 From April 15, 2011 up to and including August 31, 2011
	  	$	19.50	  	  	$	92,261.00	  

 For greater certainty, the Tenant shall also pay all Additional Rent as required, in accordance with the
Lease throughout the Extended Term. 
  

	4.	Save and except for any of the Landlord’s obligations to maintain and repair the Premises, as set out in the Lease, the Tenant acknowledges that the Landlord is
leasing the Premises to the Tenant on an “as is” basis, that the Landlord has no obligation to make or carry out any improvements, alterations or other work to prepare the Premises for occupancy by the Tenant and that the Landlord has no
obligation to provide any tenant improvement allowance, free rent or other inducement to the Tenant or otherwise with respect to the extension of the term of the Lease provided for in this Agreement. 

 

	5.	The Landlord and the Tenant agree that the Fixturing Period clause and the Leasehold Improvement Allowance in Sections 10.0 and 31.0 of the
Lease have been completed and satisfied and shall not apply to the Extended Term. 

  

	6.	The parties confirm and ratify the terms and conditions contained in the Lease as amended by this Agreement. 

 

	7.	This Agreement will, from the date of this Agreement, be read and construed together with the Lease, and this Agreement, as amended hereby, shall continue in full force
and effect for the remainder of the term of the Lease in accordance with the terms thereof and hereof. 

  

	8.	This Agreement will enure to the benefit of and be binding upon the heirs, executors, administrators, successors and permitted assigns of the parties.

  

	9.	This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the
same document. 

  

	10.	This Agreement may be executed by the parties and transmitted by facsimile and if so executed and transmitted, this Agreement shall be for all purposes as effective as
if the parties had delivered an executed original Agreement. 

  

	11.	The Landlord and the Tenant confirm that the Landlord is currently not holding any security deposits for the Premises. 

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

 

			
	CONCERT REAL ESTATE CORPORATION
		
	By:	 	 /s/ Authorized Signatory

		 	Name:
		 	Title:
		
	By:	 	 /s/ Authorized Signatory

		 	Name:
		 	Title:
	
	XENON PHARMACEUTICALS INC.
		
	By:	 	 /s/ Simon Pimstone

		 	Name: Simon Pimstone
		 	Title: President & CEO
		
	By:	 	 /s/ Authorized Signatory

		 	Name:
		 	Title:

 LEASE EXTENSION AND MODIFICATION AGREEMENT 

THIS AGREEMENT made effective the 7th day of February, 2011. 
 BETWEEN: 
 CONCERT REAL ESTATE CORPORATION 

(the “Landlord”) 

AND: 
 XENON PHARMACEUTICALS
INC. 
 (the “Tenant”) 
 WHEREAS: 
  

	A.	By a lease made in 2001 (the “Original Lease”) between Discovery Parks Incorporated (the “Original Landlord”) and Xenon Genetics Inc. (the
“Original Tenant”), the Original Tenant leased certain premises (the “Premises”) on the property known as 3650 Gilmore Way, Burnaby, British Columbia, as more particularly described in the Original Lease, for a term
of ten (10) years expiring on April 14, 2011; 

  

	B.	The Landlord is the successor In interest to the Original Landlord; 

  

	C.	The Tenant is the successor in interest to the Original Tenant; 

  

	D.	By a lease extension and modification agreement made effective November 8, 2010 (the “Modification”) between the Landlord and the Tenant, the Landlord
and the Tenant agreed to extend the term of the Original Lease for an additional four (4) months and sixteen (16) days, for a term expiring on August 31, 2011, as further described in the Modification (the Original Lease as modified
by the Modification is referred to herein as the “Lease”); 

  

	E.	The Landlord and the Tenant acknowledge and agree that the recitals hereto are true and incontrovertible; 

 

	F.	The Landlord and the Tenant have agreed to extend the term of the Lease and to amend the Lease in the manner set out herein. 

THEREFORE in consideration of the premises, the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged by each of the parties hereto, the parties agree as follows: 
  

	1.	For the purposes of this Agreement and unless there is a definition specifically herein contained, any words, terms or phrases that are defined in the Lease shall have
the same meaning herein. 

	2.	The Landlord hereby leases the Premises to the Tenant for a further term of Four (4) Months (the “Second Extended Term”) commencing on
September 1, 2011 and terminating on December 31, 2011, on and subject to the terms of the Lease, except as amended herein. 

  

	3.	For the Second Extended Term, the Basic Rent will be as follows on the first day of each and every calendar month: 

 

									
	Second Extended Term	  	 Basic Rent Per

Square Foot

Per Annum
	 	  	 Monthly
 Installments
	 
	 From September 1, 2011 up to and including December 31, 2011
	  	$	19.50	  	  	$	92,261.00	  

 For greater certainty, the Tenant shall also pay all Additional Rent as required, in accordance with the Lease throughout
the Second Extended Term. 
  

	4.	Save and except for any of the Landlord’s obligations to maintain and repair the Premises, as set out in the Lease, the Tenant acknowledges that the Landlord is
leasing the Premises to the Tenant on an “as is” basis, that the Landlord has no obligation to make or carry out any improvements, alterations or other work to prepare the Premises for occupancy by the Tenant and that the Landlord has no
obligation to provide any tenant improvement allowance, free rent or other inducement to the Tenant or otherwise with respect to the extension of the term of the Lease provided for in this Agreement. 

 

	5.	The parties confirm and ratify the terms and conditions contained in the Lease as amended by this Agreement 

 

	6.	This Agreement will, from the date of this Agreement, be read and construed together with the Lease, and this Agreement, as amended hereby, shall continue in full force
and effect for the remainder of the term of the Lease in accordance with the terms thereof and hereof. 

  

	7.	This Agreement will enure to the benefit of and be binding upon the heirs, executors, administrators, successors and permitted assigns of the parties.

  

	8.	This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the
same document. 

  

	9.	This Agreement may be executed by the parties and transmitted by facsimile and if so executed and transmitted, this Agreement shall be for all purposes as effective as
if the parties had delivered an executed original Agreement. 

  

	10.	The Landlord and the Tenant confirm that the Landlord is currently not holding any security deposits for the Premises. 

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

 

					
	CONCERT REAL ESTATE CORPORATION
		
	By:	 	 /s/ Authorized Signatory

		 	Name:	 	
		 	Title:	 	
		
	By:	 	 /s/ Authorized Signatory

		 	Name:	 	
		 	Title:	 	
	
	XENON PHARMACEUTICALS INC.
		
	By:	 	 /s/ Karen Corraini

		 	Name:	 	Karen Corraini
		 	Title:	 	General Counsel & Corporate Secretary
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

 LEASE EXTENSION AND MODIFICATION AGREEMENT 

THIS AGREEMENT made effective the 1st day of June, 2011. 
 BETWEEN: 
 CONCERT REAL ESTATE CORPORATION 

(the “Landlord”) 

AND: 
 XENON PHARMACEUTICALS
INC. 
 (the “Tenant”) 
 WHEREAS: 
  

	A.	By a lease made in 2001 (the “Original Lease”) between Discovery Parks Incorporated (the “Original Landlord”) and Xenon Genetics Inc. (the
“Original Tenant”), the Original Tenant leased certain premises (the “Premises”) on the property known as 3650 Gilmore Way, Burnaby, British Columbia, as more particularly described in the Original Lease, for a term of ten
(10) years expiring on April 14, 2011; 

  

	B.	The Landlord is the successor in interest to the Original Landlord; 

  

	C.	The Tenant is the successor in interest to the Original Tenant; 

  

	D.	By a lease extension and modification agreement made effective November 8, 2010 (the “First Modification”) between the Landlord and the Tenant, the
Landlord and the Tenant agreed to extend the term of the Original Lease for an additional four (4) months and sixteen (16) days, for a term expiring on August 31, 2011, as further described in the First Modification;

  

	E.	By a lease extension and modification agreement made effective February 7, 2011 (the “Second Modification”) between the Landlord and the Tenant, the
Landlord and the Tenant agreed to extend the term of the Original Lease for an additional four (4) months, for a term expiring on December 31, 2011, as further described in the Second Modification (the Original Lease as modified by the
First Modification and the Second Modification is referred to herein as the “Lease”); 

  

	F.	The Landlord and the Tenant acknowledge and agree that the recitals hereto are true and incontrovertible; 

The Landlord and the Tenant have agreed to extend the term of the Lease and to amend the Lease in the manner set out herein. 

 THEREFORE in consideration of the premises, the mutual covenants and agreements contained herein and other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each of the parties hereto, the parties agree as follows: 
  

	1.	For the purposes of this Agreement and unless there is a definition specifically herein contained, any words, terms or phrases that are defined in the Lease shall have
the same meaning herein. 

  

	2.	The Landlord hereby leases the Premises to the Tenant for a further term of Three (3) Months (the “Third Extended Term”) commencing on
January 1, 2012 and terminating on March 31, 2012, on and subject to the terms of the Lease, except as amended herein. 

  

	3.	For the Third Extended Term, the Basic Rent will be as follows on the first day of each and every calendar month: 

 

									
	Third Extended Term	  	 Basic Rent Per

Square Foot

Per Annum
	 	  	Monthly
Installments	 
			
	 From January 1, 2012 up to and including March 31, 2012
	  	$	19.50	  	  	$	92,261.00	  

 For greater certainty, the Tenant shall also pay all Additional Rent as required, in accordance with the
Lease throughout the Third Extended Term. 
  

	4.	Save and except for any of the Landlord’s obligations to maintain and repair the Premises, as set out in the Lease, the Tenant acknowledges that the Landlord is
leasing the Premises to the Tenant on an “as is” basis, that the Landlord has no obligation to make or carry out any improvements, alterations or other work to prepare the Premises for occupancy by the Tenant and that the Landlord has no
obligation to provide any tenant improvement allowance, free rent or other inducement to the Tenant or otherwise with respect to the extension of the term of the Lease provided for in this Agreement. 

 

	5.	The parties confirm and ratify the terms and conditions contained in the Lease as amended by this Agreement. 

 

	6.	This Agreement will, from the date of this Agreement, be read and construed together with the Lease, and this Agreement, as amended hereby, shall continue in full force
and effect for the remainder of the term of the Lease in accordance with the terms thereof and hereof. 

  

	7.	This Agreement will enure to the benefit of and be binding upon the heirs, executors, administrators, successors and permitted assigns of the parties.

  

	8.	This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the
same document. 

  

	9.	This Agreement may be executed by the parties and transmitted by facsimile and if so executed and transmitted, this Agreement shall be for all purposes as effective as
if parties had delivered an executed original Agreement. 

  

	10.	The Landlord and the Tenant confirm that the Landlord is currently not holding y security deposits for the Premises. 

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

 

			
	CONCERT REAL ESTATE CORPORATION
		
	By:	 	 /s/ Authorized Signatory

		 	Authorized Signatory
		
	By:	 	 /s/ Authorized Signatory

		 	Authorized Signatory
	
	XENON PHARMACEUTICALS INC.
		
	By:	 	 /s/ Tarek S. Mansour

		 	Authorized Signatory
		
	By:	 	 /s/ Authorized Signatory

		 	Authorized Signatory

 END OF DOCUMENT 

 3650 GILMORE WAY 

BURNABY, BC (BUILDING) 
 OFFER TO LEASE 
 BETWEEN 

CONCERT REALTY SERVICES LTD. ON BEHALF OF, 
 CONCERT REAL ESTATE CORPORATION 
 (LANDLORD) 

AND 

XENON PHARMACEUTICALS INC. 
 (TENANT) 
 Colliers Macaulay NicoIls Inc. (Agent) 

Norm Taylor (604) 661-0893 and Ray Ahrens (604) 662-2632 
 Corporate Representation Group 

 OFFER TO LEASE 

3650 GILMORE WAY 
 BURNABY, BC 
 (“BUILDING”) 

 

							
	TO:	  	 CONCERT REALTY SERVICES LTD., ON BEHALF
OF
 CONCERT REAL ESTATE CORPORATION

 
 9th Floor, 1190 Hornby Street
 Vancouver, BC V6Z 2K5
	  		  	 hereinafter called the

(“Landlord”)

				
	WE:	  	 XENON PHARMACEUTICALS INC. 

 
 3650 Gilmore Way
 Burnaby, BC V5G 4W8
	  		  	 hereinafter called the

(“Tenant”)

 The Tenant hereby offers to lease from the Landlord, through Colliers Macaulay NicolIs Inc.,
(“Agent”), in consideration of the rents, covenants and agreements contained in this offer to lease (the “Offer”), the Leased Premises (hereinafter defined) upon the following terms and conditions: 

 

	1.	LEASED PREMISES 

 The premises (the “Leased Premises”) shall be those premises in the Building having a Rentable Area of approximately thirty-four thousand (34,000) square feet, being the entire
ground (1st) and second (2nd) floors, to be adjusted for the area required by the Landlord to create an entrance lobby and upon conversion to a multi-tenant building. 
 The actual Rentable Area of the Leased Premises, including any Additional Area, shall be measured by the Landlord’s professional surveyor in accordance with the Lease and ANSI/BOMA Z65.1-1996
standards within thirty (30) days of the Commencement Date. 
  

	2.	TERM 

 The
term term (the “Term”) of the Lease shall be one hundred twenty (120) months, commencing on the 1st day of September 2011 (the “Commencement Date”) and expiring on the 31st day of August, 2021 (the
“Expiration Date”), subject to the terms of the Lease. 
  

	3.	BASIC RENT 

 The Basic Rent shall be payable by the Tenant to the Landlord in advance on the first day of each month during the Term, based on the Rentable Area of the Leased Premises. The Basic Rent, in dollars per
rentable square foot per annum, shall be: 
  

									
	 Years one (1) through five (5)
	  	 	—  	  	  	$	19.50	  
			
	 Remainder of Term
	  	 	—  	  	  	$	21.00	  

 The Tenant shall have a Free Basic Rent period being September 1, 2011 through to
January 15, 2012. During this period, the Tenant shall pay to the Landlord its Proportionate Share of Operating Costs and Property Taxes and abide by all other terms of the Lease. 

 

	4.	OPERATING COSTS AND PROPERTY TAXES 

In addition to Basic Rent, the Tenant shall be responsible for paying its proportionate share of operating expenses and property taxes, on
a monthly basis, in advance on the first day of each month (the “Operating Costs and Property Taxes” to be defined in the Lease), which shall include all actual and reasonable costs incurred by the Landlord in operating, servicing,
maintaining, insuring, repairing and managing the Leased Premises. The Operating Costs and Property Taxes are estimated at Seven Dollars and Thirty-Five Cents ($7.35) per square foot of Rentable Area for the fiscal year of the Building ending
September 30, 2010. 
 The Landlord shall arrange and be financially responsible for all installation costs for separate
metering of all utilities supplied to the Tenant, pursuant to the Lease. This may be by way of a sub-meter and include third-party monitoring which shall form part of the Tenant’s Operating Costs. 

 

	5.	DEPOSIT 

The Landlord and the Tenant acknowledge and agree that the Landlord is currently not holding any security deposit for the Premises.

 Upon the conditional mutual acceptance of this Offer, the Tenant shall submit a deposit cheque to Colliers International, in
trust, in the amount of $89,964.00, which will be held by the Landlord as security deposit without interest, as further described in the Lease. 
  

	6.	LEASE 

 The
Lease shall be in the form of the existing Lease, allowing for reasonable amendments thereto as requested by the Landlord and Tenant. The final form of Lease, including the terms and conditions of this Offer and all agreed amendments thereto shall
be delivered by the Landlord to the Tenant within ten (10) business days after unconditional acceptance of this Offer. The Lease shall be executed and delivered by the Tenant to the Landlord within five (5) business days of receipt by the
Tenant. 
  

	7.	LANDLORD’S WORK 

The Leased Premises shall be accepted by the Tenant on an “as is” basis with the exception of the
Landlord’s Work outlined on Schedule “B” attached hereto. The Landlord’s work shall be completed by the Landlord as close to the Commencement Date as feasible and to the building standard. The Tenant acknowledges and
agrees that if Landlord’s Work is required, some of this Landlord’s Work may have to be done after the Tenant vacates the third (3rd) floor of the Building. 
 The Tenant acknowledges and agrees that during such time when the Landlord, or its appointed contractors, sub-contractors, or employees is/are conducting the Landlord’s Work in the Building, the
Tenant will be in the Leased Premises in common with the Landlord, its contractors, sub-contractors, or employees. The Landlord will make reasonable efforts to ensure that the operation of the Tenant’s business is not disrupted during the
Landlord’s Work period; however, the Tenant acknowledges and agrees that during the Landlord’s 

 
Work period, there will be disruptions throughout the Tenant’s business hours (or after business hours) and the Tenant shall make its best commercial efforts to co-operate with the Landlord,
its appointed contractors, sub-contractors, or employees during the Landlord’s Work period to ensure that the Landlord’s Work proceeds efficiently. 
  

	8.	LEASEHOLD IMPROVEMENT ALLOWANCE 

The Landlord will pay to the Tenant as a contribution towards the cost of the Tenant’s leasehold improvements (the
“Tenant’s Work”), Twenty-five Dollars ($25.00) per square foot of Rentable Area of the Leased Premises (plus applicable taxes) (the “Allowance”). This Allowance shall be payable upon the completion of the items listed
hereto in Schedule “C”, which shall be incorporated into the Landlord’s standard Tenant Work Agreement forming part of the Lease. Should the Tenant’s Work cost less than the Allowance, the difference will be applied in reduction
of the Basic Rent and Operating Costs and Property Taxes payments due under the Lease to a maximum of up to Ten Dollars ($10.00) per square foot of Rentable Area of the Leased Premises, plus applicable taxes. 

 

	9.	CONDITIONS PRECEDENT - TENANT 

 This Offer and Acceptance is subject to the following Conditions Precedent being waived at the sole discretion of the Tenant: 

 

	 	(a)	The Tenant’s senior managements’ and Board of Directors’ unfettered approval of this Offer to Lease by February 28, 2011 or such other time as may
be subsequently agreed. 

 If the Tenant fails to notify the Landlord in writing that the Conditions Precedent have
been satisfied or waived within the above noted respective timelines, then this Offer shall become null and void and neither party shall have further obligation to the other. This clause is for the sole benefit of the Tenant. 

In consideration of $10.00 non-refundable paid by the Tenant to the Landlord, and other good and valuable consideration (the receipt and
sufficiency of which the Landlord acknowledges), the Landlord agrees not to revoke this Offer while it remains subject to the foregoing Tenant’s Conditions. 
  

	10.	FIRST OPPORTUNITY TO LEASE 

Provided that the Tenant did not exercise the Option to Expand in Clause 11 of this Offer to Lease and has not been
in material breach of the Lease, the Tenant shall have the first opportunity to lease any space becoming available for lease that is not encumbered by another lease on the third (3rd) floor of the Building at any time during the Term of the Tenant’s Lease. The Basic Rent payable on the said
space shall be the current fair market rental as agreed to by the parties, and failing such agreement, as determined by arbitration pursuant to the Commercial Arbitration Act of British Columbia. The Tenant shall have the right to assign this First
Opportunity to Lease pursuant to the permitted assignment of all rights under the Lease. 

	11	OPTION TO EXPAND 

Upon providing written notice to the Landlord no later than February 28, 2011, the Tenant shall have the option
to lease the entire 3rd floor of the building on the same
terms and conditions as the Leased Premises, subject to para 13. 
 The third (3rd) floor of the Building shall be leased to the Tenant on an
“as-is, where-is” basis and the Landlord will not be required to complete the Landlord’s Work attached hereto as Schedule “B”. 
  

	12.	OPTION TO RENEW 

 Provided the Tenant has not been in breach of the Lease, the Tenant shall have the right to extend the Term of the Lease with respect to the Leased Premises and any additional space leased for an
additional two (2) consecutive term(s) of five (5) years on the same terms and conditions as contained in the Lease, save only the Basic Rent, any free rent, landlord’s work, tenant allowances, or other tenant inducements and this
option to renew. To exercise this right, the Tenant shall give written notice to the Landlord no earlier than twelve (12) months and no later than nine (9) months prior to the Expiration Date or the expiry of the immediately preceding
extension period (as the case may be), and if such notice is not given, this option to extend shall be deemed waived and of no further effect and any additional extension periods will also be null and void. The Basic Rent payable during each such
extension period shall be the fair market rent for the Leased Premises, taking into account the inducements being offered in the market and excluding the value of any improvements that have been constructed at the expense of the Tenant. In any
event, the Basic Rent per annum shall not be less than the Basic Rent payable in the last year of the expiring term. In the event that Landlord and Tenant are unable to reach agreement on the Basic Rent, the Basis Rent shall be determined by
arbitration pursuant to the Commercial Arbitration Act of British Columbia. 
  

	13.	RIGHT OF TERMINATION 

Provided that the Tenant has not been in material breach of the Lease, the Tenant shall have the right to surrender
the Lease on or at any time after the forty-eighth
(48th) month of the Term (the “Right to
Terminate”) by providing a minimum of twelve (12) months prior written notice to the Landlord and, upon providing written notice to cancel the Lease, paying a surrender fee calculated as the unamortized portion of the Allowance, the
unamortized portion of real estate commissions paid by the Landlord, and two (2) months gross rent, plus applicable taxes. For the purpose of this calculation, the Allowance and commissions shall be amortized over the Term of the Lease at an
effective interest rate of 7% per annum, compounded semi-annually. 
 Provided that the Tenant has
exercised its option to lease the 3rd floor and that the
Tenant has not been in material breach of the Lease, the Tenant shall have the right to surrender the 3rd floor on or at any time after the thirty-sixth (36th) month of the Term by providing a minimum of twelve (12) months prior written notice to the Landlord and, upon providing written notice to cancel the Lease, paying a surrender fee calculated as
the 3rd floor proportion, based upon rentable area, of the
unamortized portion of the Allowance, the unamortized portion of real estate commissions paid by the Landlord, and two (2) months gross rent, plus applicable taxes. For the purpose of this calculation, the Allowance and commissions shall be
amortized over the Term of the Lease at an effective interest rate of 7% per annum, compounded semi-annually. 

	14.	PARKING 

The Tenant shall be provided surface and underground parking stalls based on its proportionate share and in common with other tenants in
the Building (if any) on a first-come, first-served basis (random stalls), free of any monthly parking charge for the Term of the Lease and any renewals thereof. The Tenant may designate underground parking spaces allocated to it for use as storage
areas or other uses and may fence these off or construct demising walls, subject to the Landlord’s approval and compliance with building codes, and subject to not impeding access to the balance of the parking stalls. The Tenant covenants that
all fencing or demised walls for such storage areas shall be removed at the Tenant’s sole cost and expense prior to Lease expiry and all damages caused by such removal shall be repaired by the Tenant at its sole cost and expense. 

 

	15.	RESTORATION 

 Upon surrender of all or a part of the third (3rd) floor, in the event that the Landlord elects to require the Tenant to demolish improvements to pare 8.4 of the current lease, the Tenant shall not be responsible for any costs associated with
construction of corridors, demising walls and the modifications to the Building’s mechanical and electrical systems (subject to Clause 4 of this Offer) for converting the floor for multi-tenant use in compliance with building codes. The Tenant
shall similarly not be responsible for any costs associated with converting the main floor lobby or other portions of the Building for multi-tenant purposes. 

Upon expiry of the Term of the Lease (as extended by this Offer) of the 1st and 2nd floor Leased Premises, or any permitted renewal/cancellation thereof, the Tenant shall only be responsible for
removing any leasehold improvements or Tenant’s Work to a maximum amount of $800,000.00 plus applicable taxes. 
  

	16.	SIGNAGE 

 The Tenant shall be granted non-exclusive signage on the Building, subject to the terms and conditions in the Lease, all existing exterior signage shall remain in place during the Term of the Lease and
any extension thereto, and signage shall remain exclusive to the Tenant until such time as the Tenant surrenders the
3rd floor. 

 

	17.	USE 

 The
Leased Premises shall be used for the purpose of general business office, the development, research and production of pharmaceuticals, the operation of a vivarium and any other use permitted under the applicable zoning by-laws for the Building.

 The Landlord has made no representation or warranty to the Tenant concerning any aspect of the Building or the Premises and
,the Tenant is solely responsible for satisfying itself concerning the suitability of the Premises for their intended use by the Tenant, the applicable zoning and use restriction by-laws, and availability of permits. 

	18.	SOLE AGREEMENT 

 There are no agreements, covenants, representations, warranties or conditions in any way relating to the subject matter of this agreement expressed or implied, collateral or otherwise, except as expressly
set forth herein. 
  

	19.	TAXES 

Amounts referred to in this Offer that are quoted without the goods and services tax or harmonized sales taxes such shall be subject to
applicable taxes. 
  

	20.	TIME OF THE ESSENCE 

Time is of the essence of this agreement with respect to the covenants contained herein. 

 

	21.	DEFINITIONS 

Words defined in the Lease and used herein shall have the same meaning ascribed to them by the Lease. This Offer, if accepted, shall
constitute a binding agreement between the parties to enter into the Lease and to abide by the terms and conditions contained herein. 
  

	22.	OFFER PROVISIONS 

 All provisions of this Offer shall not survive the completion of this transaction. In the event of any conflict between the terms of this Offer and the terms of the Lease, the terms of the Lease shall
prevail. 
  

	23.	DISCLOSURE 

The Landlord and the Tenant acknowledge and agree that, In accordance with section 5.10 of the real Estate Services Act, and in accordance
with the Code of Ethics of the Canadian Real Estate Association: 
  

	 	(a)	Concert Realty Services Ltd. (“Concert”) has disclosed that it is working solely on behalf of the Landlord. The Landlord declares that it is solely
responsible for any remuneration payable to Concert. 

  

	 	(b)	Colliers Macaulay Nicolls Inc. (the “Agent’) has disclosed that it is representing only the Tenant in the transaction described in this Agreement;

  

	 	(c)	the Agent, In order to accommodate the transaction described in this Agreement, was and is entitled to pass any relevant information they receive from either party or
from any other source to either of the parties as the Agent sees fit, without being in conflict of their duties to either party; and 

  

	 	(d)	the Agent’s commission, calculated as Six Dollars ($6.00) per square foot of rentable area plus applicable taxes, shall be payable by the Landlord as follows:

 Fifty percent (50%) upon fun execution of the Lease; and 

Fifty percent (50%) upon the Lease Commencement Date. 

	24.	ACCEPTANCE 

 This Offer shall be irrevocable and open for acceptance until 4:00 PM on the
25th day of November, 2010, after which time if not
accepted this Offer shall be null and void. This Offer may be accepted by signing and returning one duplicate copy or facsimile of this Offer. 
 DATED this
23rd day of November, 2010. 

 

			
	XENON PHARMACEUTICALS INC.
	
	TENANT
		
	Per:	 	 /s/ Simon Pimstone

		 	(Authorized Signatory)

 The Landlord hereby accepts the above Offer this 9th day of November, 2010. 

 

			
	CONCERT REALTY SERVICES LTD., ON BEHALF OF
	CONCERT REAL ESTATE CORPORATION
	
	LANDLORD
		
	Per:	 	 /s/ Authorized Signatory

		 	(Authorized Signatory)

 Attachments 
  

	1.	Deleted 

  

	2.	Schedule “B”: Landlord’s Work 

  

	3.	Schedule “C”: Allowance 

 SCHEDULE “B” 

LANDLORD’S WORK 

Attached to and forming part of an Offer to Lease by Xenon Pharmaceuticals Inc. to Concert Realty Services Ltd., on behalf of, Concert Real Estate
Corporation. 
 The Landlord will, at its own expense, complete the following work on the Main and Third (3rd) floors of the Building in accordance with Clause 7 of this
Offer to Lease, in respect of the common areas of the building, and, to the extent that they are affected, the Leased Premises: 
  

	(a)	Where required, construct demising walls; 

  

	(b)	Install double full height glass entrance doors plus full height solid core exit doors complete with magnetic card access system tied into the building security system;

  

	(c)	Reconfigure Heating, Ventilation and Air Conditioning (HVAC) ; 

  

	(d)	Reconfigure automatic sprinkler system; 

  

	(e)	Reconfigure elevator and entrance lobbies; 

  

	(f)	Modify the security system to provide the Leased Premises with autonomous security. 

 

	(g)	Replace any cracked, chipped or stained ceiling acoustic tiles or drywall ceilings with new or like new matching acoustic ceiling tiles and finishes (in common area
only); 

  

	(h)	Where required by building code, the Landlord shall be responsible for seismic upgrades to base building T-bar ceiling, lighting systems and base building mechanical
systems. 

 The Tenant acknowledges and agrees that during such time when the Landlord, or its appointed contractors,
sub-contractors, or employees is/are conducting the Landlord’s Work in the Building, the Tenant will be in the Leased Premises or the Additional Area in common with the Landlord, its contractors, sub-contractors, or employees. The Landlord will
make reasonable efforts to ensure that the, operation of the Tenant’s business is not disrupted during the Landlord’s Work period; however, the Tenant acknowledges and agrees that during the Landlord’s Work period, there will be
disruptions throughout the Tenant’s business hours (or after business hours) and the Tenant shall make its best commercial efforts to co-operate with the Landlord, its appointed contractors, sub-contractors, or employees during the
Landlord’s Work period to ensure that the Landlord’s Work proceeds efficiently. 

 SCHEDULE “C” 

ALLOWANCE 
 The Landlord
will pay to the Tenant an Allowance in accordance with Clause 8 of this Offer payable within ten (10) days after the completion of all of the following: 
  

	(a)	execution and delivery of the Lease by the Tenant to the Landlord as well as full compliance by the Tenant with all Tenant obligations of the Lease;

  

	(b)	commencement of the Lease in accordance with the Offer; 

  

	(c)	completion by the Tenant of the Tenant’s Work as stipulated in the Lease; 

 

	(d)	the applicable statutory lien holdback period shall have expired and any liens that may have been filed against the Leased Premises or the property with respect to the
work done by or on behalf of the Tenant with respect to the Leased Premises shall have been discharged from title to the property; and 

  

	(e)	receipt by the Landlord of: 

  

	 	(i)	a copy of the Tenant’s final Inspection Permit for the Premises and a copy of the Tenant’s business license; 

 

	 	(ii)	a statutory declaration by a principal of the Tenant of payment in full of all costs relating to the work done by the Tenant on the Premises; 

 

	 	(iii)	copies of receipted invoices for the Tenant’s Work substantiating the amount that has been expended and paid for by the Tenant; 

 

	 	(iv)	a letter from the Workers’ Compensation Board of B.C. confirming that the Tenant and its general contractor have satisfied all assessment requirements of the Board
to the date which is thirty (30) days following the date of substantial completion of the Tenant’s Work; 

  

	 	(v)	a copy of the certificate of completion signed by the payment certifier in respect of the Tenant’s Work; and 

 

	 	(vi)	Certificate of Substantial Completion from the Tenant’s contractor. 

 END OF DOCUMENT 

 Addendum/Amendment 

This addendum/amendment dated for reference February 7, 2011 shall be attached to and become part of the offer to lease
accepted by the Landlord on November 9, 2010 and accepted by the Tenant on November 23, 2010 (the “Offer”) between Concert Realty Services Ltd., on behalf of Concert Real Estate Corporation (“Landlord”) and Xenon
Pharmaceuticals Inc. (“Tenant”) for the premises described as the first (1st) and second (2nd) floor of 3650 Gilmore Way, Burnaby, British Columbia. 

 
  
 A) The Landlord and the Tenant agree to amend Clause 2 of the Offer as follows: 
  

	“2.	TERM 

 The term (the “Term”) of
the Lease shall be one hundred twenty (120) months, commencing on the 1st day of January, 2012 (the “Commencement Date”) and expiring on the 31st day of December, 2021 (the “Expiration Date”), subject to the
terms of the Lease.” 
 B) The Landlord and the Tenant agree to amend the last paragraph of Clause 3 of the Offer as follows:

 “The Tenant shall have a Free Basic Rent period being January 1, 2012 through to May 15, 2012. During this
period, the Tenant shall pay to the Landlord Its Proportionate Share of Operating Costs and Property Taxes and abide by all other terms of the Lease.” 
 C) The Landlord and the Tenant hereby agree to amend the first paragraph of Clause 7 of the Offer as follows: 
  

	“7.	LANDLORD’S WORK 

 The Leased Premises
shall be accepted by the Tenant on an “as Is” basis with the exception of the Landlord’s Work outlined on Schedule “B” attached hereto. The Landlord’s Work shall be completed by the Landlord at mutually accepted
date(s) and time(s) between the Landlord and the Tenant and to the building standard. The Tenant acknowledges and agrees that If Landlord’s Work Is required, some of this Landlord’s Work may have to be done after the Tenant vacates the
third (3rd) floor of the Building.” 
 D) The Landlord and the Tenant hereby agree to extend the Condition Precedent as
outlined In Clause 9 of the Offer as follows: 
  

	“9.	CONDITIONS PRECEDENT — TENANT 

 This Offer and Acceptance Is subject to the following Conditions Precedent being waived at the sole discretion of the Tenant: 

 

	 	(a)	The Tenant’s senior managements’ and Board of Directors’ unfettered approval of this Offer to Lease by May 31, 2011 or such other time as may
be subsequently agreed. 

 If the Tenant falls to notify the Landlord in writing that the Conditions Precedent have
been satisfied or waived within the above noted respective timelines, then this Offer shall become null and void and neither party shall have further obligation to the other. This clause is for the sole benefit of the Tenant. 

 In consideration of $10.00 non-refundable paid by the Tenant to the Landlord, and other good
and valuable consideration (the receipt and sufficiency of which the Landlord acknowledges), the Landlord agrees not to revoke this Offer while it remains subject to the foregoing Tenant’s Conditions.” 

E) The Landlord and the Tenant hereby agree to extend the Condition Precedent as outlined in Clause 11 of the Offer as follows: 

 

	“11.	OPTION TO EXPAND 

 Upon
providing written notice to the Landlord no later than May 31, 2011, the Tenant shall have the option to lease the entire 3rd floor of the building on the same terms and conditions as the Leased Premises, subject to para 13. 

The third (3rd) floor of the Building shall be leased to the Tenant on an “as-is, where-is” basis and the Landlord will not
be required to complete the Landlord’s Work attached hereto as Schedule “B”.” 
 ALL OTHER TERMS AND CONDITIONS TO REMAIN
IN FULL FORCE AND EFFECT 
 AGREED and ACCEPTED this 14th of February, 2011. 

 

	
	 /s/ Authorized Signatory

	Concert Realty Services Ltd., on behalf of Concert Real Estate Corporation

AGREED and ACCEPTED this      of February, 2011. 
  

	
	 /s/ Karen G. Corraini

	Xenon Pharmaceuticals Inc.

 Addendum/Amendment 

This addendum/amendment dated for reference June 1, 2011 shall be attached to and become part of the offer to lease
accepted by the Landlord on November 9, 2010 and accepted by the Tenant on November 23, 2010 and the addendum/amendment dated for reference February 7, 2011 (together, the “Offer”) between Concert Realty Services Ltd., on
behalf of Concert Real Estate Corporation (“Landlord”) and Xenon Pharmaceuticals Inc. (“Tenant”) for the premises described as the first (1st) and second (2nd) floor of
3650 Gilmore Way, Burnaby, British Columbia. 
  
  

A) The Landlord and the Tenant agree to amend Clause 2 of the Offer as follows: 
 Amended From: 
  

	“2.	TERM 

 The term (the “Term”) of
the Lease shall be one hundred twenty (120) months, commencing on the 1st day of January, 2012 (the “Commencement Date”) and expiring on the 31st day of December, 2021 (the “Expiration Date”), subject to the
terms of the Lease.” 
 Amended To: 
  

	“2.	TERM 

 The term (the “Term”) of
the Lease shall be one hundred twenty (120) months, commencing on the 1st day of April, 2012 (the “Commencement Date”) and expiring on the 31st day of March, 2022 (the “Expiration Date”), subject to the terms
of the Lease.” 
 B) The Landlord and the Tenant agree to amend the last paragraph of Clause 3 of the Offer as follows: 

Amended From: 
 “The Tenant
shall have a Free Basic Rent period being January 1, 2012 through to May 15, 2012. During this period, the Tenant shall pay to the Landlord its Proportionate Share of Operating Costs and Property Taxes and abide by all other
terms of the Lease.” 
 Amended To: 
 “The Tenant shall have a Free Basic Rent period being April 1, 2012 through to August 15, 2012. During this period, the Tenant shall pay to the Landlord its Proportionate
Share of Operating Costs and Property Taxes and abide by all other terms of the Lease.” 
 C) The Landlord and the Tenant hereby
agree to extend the Condition Precedent as outlined in Clause 9 of the Offer as follows: 
  

	“9.	CONDITIONS PRECEDENT — TENANT 

 This Offer and Acceptance is subject to the following Conditions Precedent being waived at the sole discretion of the Tenant: 

 

	 	(a)	The Tenant’s senior managements’ and Board of Directors’ unfettered approval of this Offer to Lease by August 31, 2011 or such other time as
may be subsequently agreed. 

 If the Tenant falls to notify the Landlord In writing that the Conditions Precedent have
been satisfied or waived within the above noted respective timelines, then this Offer shall become null and void and neither party shall have further obligation to the other. This clause is for the sole benefit of the Tenant. 

In consideration of $10.00 non-refundable paid by the Tenant to the Landlord, and other good and valuable consideration (the receipt and
sufficiency of which the Landlord acknowledges), the Landlord agrees not to revoke this Offer while it remains subject to the foregoing Tenant’s Conditions.” 
 D) The Landlord and the Tenant hereby agree to extend the Condition Precedent as outlined in Clause 11 of the Offer as follows: 

 

	“11.	OPTION TO EXPAND 

 Upon
providing written notice to the Landlord no later than August 31, 2011, the Tenant shall have the option to lease the entire 3rd floor of the building on the same terms and conditions as the Leased Premises, subject to pars 13.

 The third (3rd) floor of the Building shall be leased to the Tenant on an “as-is, where-is” basis and the
Landlord will not be required to complete the Landlord’s Work attached hereto as Schedule “B”.” 
 ALL OTHER TERMS AND
CONDITIONS TO REMAIN IN FULL FORCE AND EFFECT. 
 AGREED and ACCEPTED this 3rd day of June, 2011. 

 

	
	 /s/ Authorized Signatory

	Concert Realty Services Ltd., on behalf of Concert Real Estate Corporation

AGREED and ACCEPTED this 28th day of June, 2011. 
  

	
	 /s/ Simon Pimstone

	Xenon Pharmaceuticals Inc.

 ADDENDUM / AMENDMENT #3 
 This Amendment/Addendum #3 dated for reference the 31st day of August, 2011 shall be attached to and become a part of the Offer to Lease accepted by the Landlord on November 9,
2010 and accepted by the Tenant on November 23, 2010, as amended by the Addendum/ Amendments dated for reference February 7, 2011 and June 1, 2011 (together, the “Agreement”) between Concert Real Estate
Corporation (Landlord) and Xenon Pharmaceuticals Inc. (Tenant) 
  

 
 Address: 3650 Gilmore Way,
Burnaby, B.C. 
 The Landlord and Tenant hereby agree for good and valuable consideration, to amend the Agreement as noted below:

  

	A.	Clause 6 of the Agreement shall be amended, as follows: 

 The term “within ten (10) business days after unconditional acceptance of this Offer”, 
 shall be deleted and replaced with the following: 
 “within ten
(10) business days after the date on which the Landlord has received the Surrender Notice from the Tenant (as referenced under Clause 11 of this Agreement)”. 
  

	B.	Clause 8 of the Agreement shall be amended by adding the following new sentence to the end of that Clause: 

“The Landlord and the Tenant further confirm and agree that, at the Tenant’s discretion, the the Landlord will pay the
above-noted Allowance to the Tenant In two (2) separate installments, In such amounts and on such dates as may be requested by the Tenant. For the avoidance of doubt, the Landlord and the Tenant further confirm and agree that any surrender fee
payable under Clause 13 of the Agreement, shall be calculated only on the unamortized portion of the Allowance actually paid to the Tenant by the Landlord, in addition to the unamortized portion of the real estate commissions, and the two (2) months
gross rent, as indicated above.” 
  

	C.	Clause 11 of the Agreement shall be amended, as follows: 

  

	 	“11.	OPTION TO EXPAND 

 Upon providing written notice to the Landlord no later than August 31, 2011, the Tenant shall have the option to lease the entire 3” floor of the building on the same terms and conditions as the
Leased premises, subject to para 13, 
 The third (3rd) floor of the Building shall be leased to the Tenant on an
“as-is, where-is” basis and the Landlord will not be required to complete the landlord’s Work attached hereto as Schedule “B”.” 

 shall be deleted and replaced with the following: 

 

	 	“11.	OPTION TO SURRENDER 

 From
September 1 through to September 30, 2011, the Tenant shall have the right to surrender and terminate that portion of the Leased Premises identified by heavy black marking on Exhibit “A” (the “Expansion
Premises”) attached hereto at no cost or penalty, and the Landlord shall be responsible for all costs associated with multi-tenanting the floor to meet current building code In the event this option Is exercised (subject to the
Landlord’s restoration rights within Section 8.4 of the current lease). The Tenant shall provide written notice to the Landlord, on or prior to September 30, 2011, respecting whether (or not) it intends to exercise its right to
surrender the Expansion Premises (the “Surrender Notice)”. Such Surrender Notice may be delivered personally, by fax, or by courier, to the Landlord at the following address 

Concert Real Estate Corporation 
 9th Floor, 
 1190 Hornby 

Vancouver, BC 

V6Z 2K5 
 Fax
Number: 804-689-9611. 
 In the event that the Tenant does not deliver the Surrender Notice to the Landlord on or before
September 30, 2011 as noted above, the Tenant shall be deemed to have delivered such Surrender Notice to the Landlord on October 1, 2011, and in such deemed Surrender Notice shall be deemed to have surrendered the Expansion Premises.”

  

	D.	Clause 13 of the Agreement shall be amended as follows: 

  

	 	“13.	RIGHT OF TERMINATION 

 The second
line with the Right of Termination Clause which reads: 
 “have the right to surrender the Lease on or at any time after
the forty-eight (48th) month of” 
 Shall be deleted and replaced with the following:: 

“have the right to surrender the Lease on or at any time after the thirty-sixth(36th) month of” 

 

	E.	The Landlord and the Tenant agree to amend Clause 9 of the Agreement, as follows: 

 The Tenant hereby removes its Condition Precedent within Clause 9, namely: 
  

	 	“9.	CONDITIONS PRECEDENT - TENANT 

 “This Offer and Acceptance is subject to the following Conditions Precedent being waived at the sole discretion of the Tenant: 

 

	 	(a)	The Tenant’s senior managements’ and Board of Directors’ unfettered approval of this Offer to Lease by August 31, 2011 or such other time as may be
subsequently agreed. 

 If the Tenant fails to notify the Landlord In writing that the Conditions
Precedent have been satisfied or waived within the above noted respective timelines, then this Offer shall become null and void and neither party shall have further obligation to the other. This clause is for the sole benefit of the Tenant.

 In consideration of $10.00 non-refundable paid by the Tenant to the Landlord, and other good and valuable consideration (the
receipt and sufficiency of which the Landlord acknowledges), the Landlord agrees not to revoke this Offer while it remains subject to the foregoing Tenant’s Conditions.” 
 Save and except as hereby amended, all of the terms and conditions of the Agreement are hereby ratified and confirmed and shall be in full force and effect, and time remains of the essence thereof. The
Agreement, including this Amendment/Addendum #3 shall enure to the benefit of, .and be binding upon the parties hereto and their respective successors and permitted assigns. This Amendment/Addendum #3 may be executed and delivered in counterpart by
facsimile or otherwise and each counterpart shall constitute an original and together shall constitute one and the same agreement. 
 The
parties hereby acknowledge that all conditions precedent have been removed/waived and the Agreement is now a firm and binding contract between the parties. 
  

					
	CONCERT REALTY SERVICES LTD., on behalf of	 		 	
	CONCERT REAL ESTATE CORPORATION	 		 	
	(Landlord)	 		 	
			
	 /s/ Authorized Signatory
	 		 	August 31, 2011
	Authorized Signatory	 		 	
			
	XENON PHARMACEUTICALS INC.	 		 	
	(Tenant)	 		 	
			
	 /s/ Simon Pimstone
	 		 	August 31, 2011
	Authorized Signatory	 		 	

 Exhibit A 

(See attached) 

  
 

 

 ADDENDUM / AMENDMENT #4 
 This Amendment/Addendum #4 dated for reference the 30th day of September, 2011 shall be attached to and become a part of the Offer to Lease accepted by the Landlord on
November 9, 2010 and accepted by the Tenant on November 23, 2010, as amended by the Addendum/ Amendments dated for reference February 7, 2011, June 1, 2011 and August 31, 2011 (together, the
“Agreement”) between Concert Real Estate Corporation (Landlord) and Xenon Pharmaceuticals Inc. (Tenant) 
  

 
 Address: 3650 Gilmore Way,
Burnaby, B.C. 
 The Landlord and Tenant hereby agree for good and valuable consideration, to amend the Agreement as noted below:

 Exhibit “A” to the Agreement shall be deleted and replaced with the Exhibit “A” attached hereto. 

Save and except as hereby amended, all of the terms and conditions of the Agreement are hereby ratified and confirmed and shall be in full force and
effect, and time remains of the essence thereof. The Agreement, including this Addendum/Amendment #4 shall “enure” to the benefit of, and be binding upon the parties hereto and their respective successors and permitted assigns. This
Addendum/Amendment #4 may be executed and delivered in counterpart by facsimile or otherwise and each counterpart shall constitute an original and together shall constitute one and the same agreement. 

The parties hereby acknowledge that all conditions precedent have been removed/waived and the Agreement is now a firm and binding contract between the
parties. 
  

					
	CONCERT REALTY SERVICES LTD., on behalf of	 		 	
	CONCERT REAL ESTATE CORPORATION	 		 	
	(Landlord)	 		 	
			
	 /s/ Authorized Signatory
	 		 	September 30, 2011
	Authorized Signatory	 		 	
			
	XENON PHARMACEUTICALS INC.	 		 	
	(Tenant)	 		 	
			
	 /s/ Simon Pimstone
	 		 	September 30, 2011
	Authorized Signatory	 		 	

 Exhibit A 

(See attached) 

  
 

 

 September 30, 2011 
 Delivered by Fax to 604-689-9611 
 Concert Real Estate Corporation 

9th Floor 
 1190 Hornby 

Vancouver, BC 
 V6Z 2K5 

 

	Re:	Surrender Notice, pursuant to Offer to Lease respecting 3650 Gilmore Way, Burnaby, BC. accepted by Concert Real Estate Corporation (the
“Landlord”) on November 9, 2010 and accepted by Xenon Pharmaceuticals Inc. (the “Tenant”) on November 23, 2010, as amended by the (4) Addendum/Amendments dated for reference February 7,
2011, June 1, 2011, August 31, 2011 and September 30, 2011 (together, the “Agreement”) 

  

 
 Dear Sirs/Madams: 

As set out in Clause 11 of the Agreement (and as specifically referenced under Addendum/Amendment #3 dated August 31, 2011 of same), the Tenant
hereby provides notice to the Landlord that is has surrendered that portion of the Leased Premises identified by heavy marking on Exhibit “A” attached. 
 Kindly acknowledge receipt of this notice, by signing where indicated below, and returning, a copy of this letter by fax to the Tenant (to the attention of the President & CEO with copy to
General Counsel), at 604-484-3450(fax). 
 Sincerely, 
  

					
	XENON PHARMACEUTICALS INC.	 		 	
	(Tenant)	 		 	
			
	 /s/ Simon N. Pimstone
	 		 	September 30, 2011
	Simon N. Pimstone	 		 	
	President & CEO	 		 	

  
  

Receipt of this notice is hereby confirmed and acknowledged by the Landlord 

 

							
	CONCERT REALTY SERVICES LTD., on behalf of	 		 		 	
	CONCERT REAL ESTATE CORPORATION	 		 		 	
	(Landlord)	 		 		 	
				
	 /s/ Allen Glazer, VP Property Management
	 		 	Date:	 	  

	Authorized Signatory	 		 		 	

 Exhibit A 

(See attached) 

  
 

 

 Addendum/Amendment #5 
 This addendum/amendment dated for reference the 19th day of October, 2011 shall be attached to and become part of the offer to lease accepted by the Landlord on November 9, 2010 and accepted
by the Tenant on November 23, 2010, the addendum/amendment dated for reference February 7, 2011, the addendum/amendment dated for reference June 1, 2011, the addendum/amendment #3 dated for reference August 31, 2011, and the
addendum/amendment #4 dated for reference September 30, 2011 (together, the “Offer”) between Concert Realty Services Ltd., on behalf of Concert Real Estate Corporation (“Landlord”) and Xenon Pharmaceuticals Inc.
(“Tenant”). 
  
  

Address: 3650 Gilmore Way, Burnaby, British Columbia 
 The Landlord and the Tenant hereby agree to amend the Lease clause in Clause 6 of the Offer as follows: 
  

	“6.	LEASE 

 The Lease shall be in the form of
the existing Lease, allowing for reasonable amendments thereto as requested by the Landlord and Tenant. The final form of Lease, including the terms and conditions of this Offer and all agreed amendments thereto shall be delivered by the Landlord to
the Tenant on or before October 28, 2011. The Lease shall be executed and delivered by the Tenant to the Landlord within five (5) business days of receipt by the Tenant”. 

ALL OTHER TERMS AND CONDITIONS TO REMAIN IN FULL FORCE AND EFFECT. 
 AGREED and ACCEPTED this 19th day of October, 2011. 
  

	
	 /s/ Authorized Signatory

	Concert Realty Services Ltd., on behalf of Concert Real Estate Corporation

 AGREED and ACCEPTED this 19th day of October, 2011. 

 

	
	 /s/ Karen G. Corraini

	Xenon Pharmaceuticals Inc.
	KAREN G. CORRAINI
	GENERAL COUNSEL & CORPORATE SECRETARY

 Addendum/Amendment #6 
 This addendum/amendment dated for reference the 28th day of October, 2011 shall be attached to and become part of the offer to lease accepted by the Landlord on November 9, 2010 and accepted
by the Tenant on November 23, 2010, the addendum/amendment dated for reference February 7, 2011, the addendum/amendment dated for reference June 1, 2011, the addendum/amendment #3 dated for reference August 31, 2011, the
addendum/amendment #4 dated for reference September 30, 2011, and the addendum/amendment #5 dated for reference October 19, 2011 (together, the “Offer”) between Concert Realty Services Ltd., on behalf of Concert Real Estate
Corporation (“Landlord”) and Xenon Pharmaceuticals Inc. (“Tenant”). 
  

 
 Address: 3650 Gilmore Way,
Burnaby, British Columbia 
 The Landlord and the Tenant hereby agree to amend the Lease clause in Clause 6 of the Offer as follows:

  

	“6.	LEASE 

 The Lease shall be in the form of
the existing Lease, allowing for reasonable amendments thereto as requested by the Landlord and Tenant. The final form of Lease, including the terms and conditions of this Offer and all agreed amendments thereto shall be delivered by the Landlord to
the Tenant on or before November 9, 2011. The Lease shall be executed and delivered by the Tenant to the Landlord within ten (10) business days of receipt by the Tenant.” 

ALL OTHER TERMS AND CONDITIONS TO REMAIN IN FULL FORCE AND EFFECT. 
 AGREED and ACCEPTED this 28th day of October, 2011. 
  

	
	 /s/ Authorized Signatory

	Concert Realty Services Ltd., on behalf of Concert Real Estate Corporation

 AGREED and ACCEPTED this 28th day of October, 2011. 

 

	
	 /s/ Karen G. Corraini

	Xenon Pharmaceuticals Inc.

 Addendum/Amendment #7 
 This addendum/amendment dated for reference the 9th day of November, 2011 shall be attached to and become part of the offer to lease accepted by the Landlord on November 9, 2010 and accepted
by the Tenant on November 23, 2010, the addendum/amendment dated for reference February 7, 2011, the addendum/amendment dated for reference June 1, 2011, the addendum/amendment #3 dated for reference August 31, 2011, the
addendum/amendment #4 dated for reference September 30, 2011, the addendum/amendment #5 dated for reference October 19, 2011, and the addendum/amendment #6 dated for reference October 28, 2011 (together, the “Offer”) between
Concert Realty Services Ltd., on behalf of Concert Real Estate Corporation (“Landlord”) and Xenon Pharmaceuticals Inc. (“Tenant”). 
  

 
 Address: 3650 Gilmore Way,
Burnaby, British Columbia 
 The Landlord and the Tenant hereby agree to amend the Lease clause In Clause 6 of the Offer as follows:

  

	“6.	LEASE 

 The Lease shall be in the form of
the existing Lease, allowing for reasonable amendments thereto as requested by the Landlord and Tenant. The final form of Lease, including the terms and conditions of this Offer and all agreed amendments thereto shall be delivered by the Landlord to
the Tenant on or before November 10, 2011. The Lease shall be executed and delivered by the Tenant to the Landlord within ten (10) business days of receipt by the Tenant.” 

ALL OTHER TERMS AND CONDITIONS TO REMAIN IN FULL FORCE AND EFFECT. 
 AGREED and ACCEPTED this 9th day of November, 2011. 
  

	
	 /s/ Authorized Signatory

	Concert Realty Services Ltd., on behalf of Concert Real Estate Corporation

 AGREED and ACCEPTED this 14th day of November, 2011. 

 

	
	 /s/ Simon Pimstone

	Xenon Pharmaceuticals Inc.

 Addendum/Amendment #8 
 This addendum/amendment dated for reference the 25th day of November, 2011 shall be attached to and become part of the offer to lease accepted by the Landlord on November 9, 2010 and accepted
by the Tenant on November 23, 2010, the addendum/amendment dated for reference February 7, 2011, the addendum/amendment dated for reference June 1, 2011, the addendum/amendment #3 dated for reference August 31, 2011, the
addendum/amendment #4 dated for reference September 30, 2011, the addendum/amendment #5 dated for reference October 19, 2011, the addendum/amendment #6 dated for reference October 28, 2011, the addendum/amendment #7 dated for
reference November 9, 2011 (together, the “Offer”) between Concert Realty Services Ltd., on behalf of Concert Real Estate Corporation (“Landlord”) and Xenon Pharmaceuticals Inc. (“Tenant”). 

 
  
 Address: 3650 Gilmore Way, Burnaby, British Columbia 
 The Landlord and the Tenant hereby
agree to amend the Lease clause In Clause 6 of the Offer as follows: 
  

	“6.	LEASE 

 The Lease shall be in the form of
the existing Lease, allowing for reasonable amendments thereto as requested by the Landlord and Tenant. The Landlord’s proposed final form of Lease, Including the terms and conditions of this Offer and all agreed amendments thereto shall be
delivered by the Landlord to the Tenant on or before 2 p.m (Vancouver time) on November 28, 2011. The Lease shall be mutually agreed by both parties and executed by both parties on or before November 29, 2011 at 5:00 p.m. (Vancouver
Time).” 
 ALL OTHER TERMS AND CONDITIONS TO REMAIN IN FULL FORCE AND EFFECT. 

AGREED and ACCEPTED this 25th day of November, 2011. 

 

	
	 /s/ Authorized Signatory

	Concert Realty Services Ltd., on behalf of Concert Real Estate Corporation

 AGREED and ACCEPTED this 25th day of November, 2011. 

 

	
	 /s/ Karen G. Corraini

	Xenon Pharmaceuticals Inc.

 Addendum/Amendment #9 
 This addendum/amendment dated for reference the 29th day of November, 2011 shall be attached to and become part of the offer to lease accepted by the Landlord on November 9, 2010 and accepted
by the Tenant on November 23, 2010, the addendum/amendment dated for reference February 7, 2011, the addendum/amendment dated for reference June 1, 2011, the addendum/amendment #3 dated for reference August 31, 2011, the
addendum/amendment #4 dated for reference September 30, 2011, the addendum/amendment #5 dated for reference October 19, 2011, the addendum/amendment #6 dated for reference October 28, 2011, the addendum/amendment #7 dated for
reference November 9, 2011, and the addendum/amendment #8 dated for reference November 25, 2011 (together, the “Offer”) between Concert Realty Services Ltd., on behalf of Concert Real Estate Corporation (“Landlord”) and
Xenon Pharmaceuticals Inc. (“Tenant”). 
  
  

Address: 3650 Gilmore Way, Burnaby, British Columbia 
 The Landlord and the Tenant hereby agree to amend the Lease clause In Clause 6 of the Offer as follows: 
  

	“6.	LEASE 

 The Lease shall be in the form of
the existing Lease, allowing for reasonable amendments thereto as requested by the Landlord and Tenant. The Landlord’s proposed final form of Lease, Including the terms and conditions of this Offer and all agreed amendments thereto shall be
delivered by the Landlord to the Tenant on or before 2:00 p.m. (Vancouver Time) on November 28, 2011. The Lease shall be mutually agreed by both parties and executed by both parties on or before December 6, 2011 at 5:00 p.m. (Vancouver
Time).” 
 ALL OTHER TERMS AND CONDITIONS TO REMAIN IN FULL FORCE AND EFFECT. 

AGREED and ACCEPTED this 29th day of November, 2011. 
  

	
	 /s/ Authorized Signatory

	Concert Realty Services Ltd., on behalf of Concert Real Estate Corporation

AGREED and ACCEPTED this 29th day of November, 2011. 
  

	
	 /s/ Karen G. Corraini

	Xenon Pharmaceuticals Inc.
	KAREN G. CORRAINI
	GENERAL COUNSEL & CORPORATE SECRETARY

 LEASE EXTENSION AND MODIFICATION AGREEMENT 

This Agreement made effective the 27th day of October, 2011. 
 BETWEEN: 
 CONCERT REAL ESTATE CORPORATION 

(the “Landlord”) 
 AND: 
 XENON PHARMACEUTICALS INC. 

(the “Tenant”) 

WHEREAS: 
  

	A.	By, a lease made in 2001 (the “Original Lease”) between Discovery Parks Incorporated (the “Original Landlord”) and Xenon Genetics
Inc.,(the “Original Tenant”), the Original Tenant leased certain premises (the “Original Premises”) comprising the whole of the building (the “Building”) located on property known as 3650 Gilmore
Way, Burnaby, British Columbia, as more particularly described in the Original Lease for a term of ten (10) years expiring on April 14, 2011; 

  

	B.	The Landlord is the successor in interest to the Original Landlord; 

  

	C.	The Tenant successor in interest to ti.i0 OriginalTeri 

  

	D.	By a lease extension and modification agreement made effective November 8, 2010 (the “First Modification”) between the Landlord and Tenant, the
Landlord and the Tenant agreed to extend the term of the Original Lease for an additional four (4) months and sixteen (16) days, for a term expiring on August 31, 2011, as further described in the First Modification.

  

	E.	By a lease extension and modification agreement made effective February 7, 2011 (the “Second Modification”) between the Landlord and Tenant, the
Landlord and the Tenant agreed to extend the term of the Original Lease for an additional four (4) months, for a term expiring on December 31, 2011, as further described in the Second Modification. 

 

	F.	By a lease extension and modification agreement made effective June 1, 2011 (the “Third Modification”) between the Landlord and Tenant, the
Landlord and Tenant agreed to extend the term of the Original Lease for an additional three (3) months, for a term expiring on March 31, 2012, as further described in the Third Modication (the Original Lease as modified by the First
Modification, the Second Mddification and the Third Modification is referred to herein as the: “Lease”); 

  

	G.	By an Offer to Lease (the “Original Offer”) accepted by the Landlord on November 9, 2010 and accepted by the Tenant on November 23, 2010, the
Landlord and Tenant agreed that the Tenant would continue to lease a portion (the “Proposed New Premises”, being the whole of the lst and 2nd floors of the Building) of the Original Premises, as more particularly described in the
Offer, for a term of 120 months commencing on September 1, 2011, on the terms and conditions set out in the Origin Offer; 

	H.	By an Addendum/Amendment (the “First Addendum”) dated for reference February 7, 2011, the Original Offer was amended as set out therein;

  

	I.	By an Addendum/Amendment (the “Second Addendum”) dated for reference June 1, 2011, the Original Offer, as amended, was further amended as set out
therein; 

  

	J.	By an Addendum/Amendment (the “Third Addendum”) dated for reference August 31, 2011, the Original Offer, as amended, was farther amended as set
out therein, including adding a right for the Tenant to elect to surrender and terminate its rights under the Original Offer in respect of that portion (the “Surrender Area”) of the Proposed New Premises shown on the plan attached
to the Third Addendum as Exhibit A; 

  

	K.	By an Addendum/Amendment (the “Fourth Addendum”) dated for reference September 30, 2011, the Original Offer, as amended, was further amended by
replacing the plan of the Surrender Area attached to the Third Addendum as Exhibit A with the plan attached as Exhibit A to the fOurth Addendum; 

  

	L	By a letter (the “Surrender Letter”) dated September 30, 2011, the Tenant notified the Landlord that the Tenant was exercising its right to
surrender and terminate its rights under the Original Offer in respect of the Surrender Area; 

  

	M.	The Original Offer, as emended by the First Addendum, Second Addendum, Third Addendum, Fourth AddendUrn and Sufrender Letter, is herein referred to as the
“Offer” and the proposed New Premises, excluding the Surrender Area are referred to as the “Premises”); 

  

	N.	The Landlord and the tenant acknowledge and agree that the recitals hereto are true and incontrovertible; 

 

	O.	The Landlord and the Tenant have agreed to amend the Lease to incorporate the terms of the Offer on the terms set out herein. 

THEREFORE in consideration of the premises, the mutual covenants and agreements contained herein and other good and valuable Consideration, the receipt
and sufficiency of which is hereby acknowledged by each of the parties hereto, the parties agree as follows: 
  

	1.	The Landlord and Tenant hereby agree to extend the term of the Lease for a further term (the “Extension Term”) of ten (10) years commencing on
April 1, 2012 (the “Extension Term Commencement Date”) and terminating on March 31, 2022 on and subject to the terms of the Lease except as amended herein. 

 

	2.	As of the Extension Term Commencement Date, the Lease is amended as follows: 

 

	 	(a)	In section 1.1, the phrase “Rentable Area of approximately 56,776 square feet, being the entire Building situated thereon, as set out in
Schedule “A” attached hereto” is deleted and replaced With “Rentable Area of approximately 34,000 square feet, subject to confirmation pursuant to section 3.3 below, being a portion of the first floor and the entire second
floor of the Building situated thereon, as set out in Schedule “A” attached hereto. The Rentable Area shall further be adjusted to reflect the Tenant’s Proportionate Share of Common Areas as per section 3.3 below.

	 	(b)	In section 2.1: 

  

	 	(i)	the phrase “of ten (10) years” is deleted in its entirety; and 

 

	 	(ii)	the phrase “expiring on the day immediately prior to the tenth anniversary of the Commencement Date” is deleted and replaced with “expiring on
March 31, 2022”; 

  

	(c)	section 3.1 of the Lease is amended as follows: 

  

	 	(i)	The address of the Landlord is deleted and replaced with “9th Floor, 1190 Hornby Street, Vancouver, BC V6Z 2K5”; 

 

	 	(ii)	The following is added at the bottom of the table set out therein: 

  

													
	“Period	  	Per Square Foot	 	  	Approximate
Basic Rent Per
Annum	 	  	Approximate
Basic Rent Per
Month	 
				
	 April 15, 2011 - March 31, 2012
	  	$	19.50	  	  	$	1,107,132.00	  	  	$	92,261.00	  
				
	 April 1, 2012 - March 31, 2017
	  	$	19.50	  	  	$	663,000.00	  	  	$	55,250.00	  
				
	 April 1, 2017 - March 31, 2022
	  	$	21.00	  	  	$	714,000.00	  	  	$	59,500.00	  

 The Tenant shall have a Free Basic Rent Period from April 1, 2012 through to August 15, 2012.
During this period, the Tenant shall pay to the Landlord its Proportionate Share of Operating Expenses and property taxes and abide by all other terms of the Lease.”; 

 

	 	(d)	section 3.2 is deleted and replaced with the following: 

 *The Tenant has paid to the Landlord the sum of Eighty Nine Thousand Nine Hundred and Sixty Four Dollars ($89,964.00) as a deposit. The deposit shall be held by the Landlord, without liability for
interest, as security for any and all present and future debts and liabilities of the Tenant to the Landlord in connection with its obligations (the “Obligations”) arising under this Lease for the term of the Lease. In the event the
Landlord shall from time to time apply any or all of such deposit towards payment of the Obligations, the Tenant shall, from time to time at the request of the Landlord, forthwith pay to the Landlord the sum required to return the deposit to its
original amount. If the Landlord disposes of its interest in this Lease, the Landlord shall credit the deposit to its successor and thereupon shall have no liability to the Tenant to repay the deposit to the Tenant. If the Tenant shall from time to
time fail to perform its Obligations, the Landlord may apply all or part, as the case may be, of the deposit to rectify such failure. Subject to the foregoing, the Landlord shall repay the deposit to the Tenant 30 days after the end of the Term or
sooner termination of the Lease, provided that all Obligations of the Tenant are paid and performed in full, failing which the Landlord may, on notice to the Tenant, elect to retain the deposit and to apply it in reduction of the Obligations and the
Tenant shall remain fully liable to the Landlord for payment and performance of the remaining Obligations.” 

	 	(e)	section 3.3 is amended as follows: 

  

	 	(i)	by adding the following at the beginning: 

 “The Actual Rentable Area of the Premises shall be measured in accordance with the BOMA Standard.”; and 
  

	 	(ii)	by adding the following paragraph after the first paragraph of section 3.3: 

 “The Rent shall be $19.50 per square foot per year from April 1, 2012 to March 31, 2017 (excepting the Free Basic Rent Period from April 1, 2012 to August 15, 2012) and $21.00 per
square foot per annum for the period from April 1, 2017 to March 31, 2022.” 
  

	 	(f)	section 3.4 is amended by deleting the phrase “or the Offer to Lease”; 

 

	 	(g)	section 3.7 is deleted in its entirety and replaced with “Intentionally deleted”; 

 

	 	(h)	section 4.1 is amended by deleting the phrase “and for related business activities all in accordance with the zoning by-laws of the City of Burnaby” and
replacing it with the phrase “, for related business activities and for the operation of a vivarium and any other use permitted under the applicable zoning by-laws for the Building”; 

 

	 	(i)	section 5.1(a) is amended by adding the following at the end: 

 “Additional Rent is estimated at seven dollars and thirty-five cents ($7.35) per square foot of Rentable Area for the fiscal year of the Building ending September 30, 2010.”; 

 

	 	(j)	section 5.1(j) is deleted in its entirety and replaced with “Common Areas” means, without duplication, (1) those areas of the Land not intended by the
Landlord for lease by tenants and (2) those areas of the Building that are Common Areas in accordance with the definition of “Common Areas” set out in the BOMA Standard:”; 

 

	 	(k)	section 5.1(s) is deleted in its entirety and replaced with “Leasehold Improvements” means all fixtures, trade fixtures, improvements, installations,
alterations, and additions from time to time made, erected, or installed by, or on behalf of, the Tenant in the Premises, with the exception of furniture and equipment not of the nature of fixtures”; 

 

	 	(l)	section 5.1(v) is deleted in its entirety and replaced with “intentionally deleted”; 

 

	 	(m)	section 6.9 is amended by adding the following at the end: 

 “Notwithstanding the foregoing, the Tenant shall be granted non-exclusive signage on the Building, subject to the terms and conditions in the Lease, all existing signage shall remain in place during
the Term and any extension thereof.”; 
  

	 	(n)	section 16.4 is deleted in its entirety and replaced with “intentionally deleted”; 

	 	(o)	section 6.15 is deleted in its entirety and replaced with “intentionally deleted”; 

 

	 	(p)	section 6.20(a) is amended by deleting the figure “$2,000,000.00” and replacing it with “$5,000,000.00”; 

 

	 	(q)	Article 27 is deleted in its entirely and replaced with “intentionally deleted”; 

 

	 	(r)	in Section 28.1: 

  

	 	(i)	the phrase “and Offer to Lease” in line 2 is deleted; and 

  

	 	(ii)	the last sentence is deleted in its entirety; 

  

	 	(s)	Section 29.1(b) and Articles 30, 31 and 32 are each deleted in their entirety and replaced with “intentionally deleted”; 

 

	 	(t)	new Articles 33, 34, 35, 36 and 37 are added as follows: 

 “33.0 FIRST OPPORTUNITY TO LEASE 
 33.1 Provided, that the Tenant has not
been in material breach of the Lease, the Tenant shall have the first opportunity, to lease any space becoming available for lease on the third (3rd) floor of the Building at any time during the Term that is not encumbered by another lease. The
Basic Rent payable on the said space shall be the current fair market rental as agreed to by the parties and failing such agreement, as determined by arbitration by a single arbitrator pursuant to the Commercial Arbitration Act of British
Columbia. The cost of the arbitrator will be shared equally between the parties. The Tenant shall have the right to assign this First Opportunity to Lease to a permitted assignee under this Lease concurrently with the assignment by the Tenant to
such assignee of all of the Tenant’s rights under this Lease. 
 34.0 OPTION TO RENEW 

34.1 Provided the Tenant has not been in breach of the Lease, the Tenant shall have the right to extend the Term of the Lease with
respect to the Premises and any additional space leased by the Tenant for an additional two (2) consecutive terms of five (5) years each on the same terms and conditions as contained in the Lease, save only the Basic Rent, any free rent,
landlord’s work, tenant allowances, or other tenant inducements and this option to renew. To exercise this right, the Tenant shall give written notice to the Landlord no earlier than twelve (12) months and no later than nine
(9) months prior to the expiry of the Term or the expiry of the immediately preceding extension period (as the case may be); and if such notice is not given, this option to extend shall be deemed waived and of no further effect and any
additional extension periods will be null and void. The Basic Rent payable during each such extension period shall be the fair market rent for the premises and any additional space leased by the Tenant, taking into account the inducements being
offered in the Market and excluding the value of any improvements that have been constructed or installed at the expense of the Tenant. In any event, the Basic Rent per annum shall not be less than the Basic Rent payable in the last year of the
expiring term. In the event that Landlord and Tenant are unable to reach agreement on the Basic Rent, the 

 
Basic Rent shall be determined by arbitration by a single arbitrator pursuant to the Commercial Arbitration Act of British Columbia. The cost of the arbitrator will be shared equally between the
parties. 
 35.0 RIGHT OF TERMINATION 
 35.1 Provided that the Tenant has not been in material breach of the Lease, the Tenant shall have the right to surrender the Lease on or at any time after March 31, 2015 (the “Right to
Terminate”) by providing a minimum of twelve (12) months prior written notice to the Landlord and, upon providing written notice to cancel the Lease, paying a surrender “fee calculated as the unamortized portion of the
contribution paid by the Landlord to the Tenant in relation to the extension of the Term for the period from April 1, 2012 to March 31, 2022, being Twenty-five Dollars ($25.00) per square foot of Rentable Area of the Premises (the
“Allowance”), the unamortized portion of real estate commissions paid by the landlord, and two (2) months’ Rent; plus applicable taxes. For the purpose of this calculation, the Allowance and commission shall be
amortized over the period from April 1, 2012 to March 31, 2022 at an effective interest rate of 7% per annum, compounded semi-annually. 
 36.0 PARKING 
 36.1 The Tenant shall be provided surface and underground parking
stalls based on its proportionate share and in common with other tenants in the Building (if any) on a first-come, first-served basis (random stalls), free of any monthly parking charge for the balance of the Term from April 1, 2012 and any
renewals thereof. The Tenant may designate underground parking spaces allocated to it for use as storage areas or other uses and may fence these off or construct demising walls, subject to the Landlord’s approval and compliance with building
codes, and subject to not impeding access to the balance of the parking stalls. The Tenant covenants that all fencing or demised walls for such storage areas shall be removed at the Tenant’s sole cost and expense prior to the Lease expiry and
all damages caused by such removal shall be repaired by the Tenant at is sole cost and expense. 
 37.0 RESTORATION 

37 1 The Tenant shall not be responsible for any costs associated with converting the main floor lobby or other portions of the Building
for multi-tenant purposes. Upon expiry of the term; or any permitted renewal/cancellation thereof, the Tenant shall, subject to Section 8.4 only be responsible for removing any Leasehold Improvements or Tenant’s Work located in the Portion
of its Premises within the first (1st) and second (2nd) floor, and to a maximum amount of $800,000 plus applicable taxes.”; and 
  

	 	(u)	Existing Articles 33.0 and 34.0 are renumbered Articles 38.0 and 39.0, respectively. 

 

	 	(v)	Schedule A is deleted and replaced with Schedule “A” attached hereto. 

 

	3.	 For greater clarity, after the First Measurement, Rent will be adjusted, and calculated retroactive to the Extension Term Commencement Date, and after
the Second Measurement, Rent will be adjusted 

	 	
and calculated retroactive, to the date of the Landlord’s commencement of its work on the Surrender Area to create an entrance lobby and an elevator lobby to convert the Building to a
multi-tenant building (the “Building Conversion Work”). The Actual Rentable Area of the. Proposed New Premises shall be measured in accordance with the BOMA Standard within thirty (30) days of the Extension Term Commencement
Date (the “First Measurement”). The Actual Rentable Area of the Premises shall further be measured, in, accordance with the BOMA Standard within thirty (30) days, after completion by the Landlord, of the Building Conversion Work (the
“Second Measurement”). All such BOMA surveys shall be done at the Landlord’s cost. 

  

	(4)	The Premises shall be accepted, by the Tenant on an “as is” basis with the exception of the Landlord’s Work outlined on Schedule “B” attached
hereto. The Landlord’s Work shall be completed by the Landlord at mutually accepted date(s) and time(s) between the Landlord and the Tenant and to the Building standard. Prior to commencing any of the Landlord’s Work, Landlord will provide
the Tenant with plans of its intended improvement work (consisting of applicable electrical, mechanical and architectural drawings, specifications and other appropriate information) for review and approval by the Tenant, acting reasonably. The
Tenant acknowledges and agrees that if Landlord’s Work is required, some of this Landlord’s Work may have to be done after the Tenant vacates the third (3rd) floor of the Building. 

The Tenant acknowledges and agrees that during such time when the Landlord, or its appointed contractors, subcontractors, or employees
is/are conducting the Landlord’s Work in the Building, the Tenant will be in the Premises in common with the Landlord, its contractors, subcontractors, or employees. The Landlord will make reasonable efforts to ensure that the operation of the
Tenant’s business is not disrupted during the Landlord’s work period, however, the Tenant acknowledges and agrees that during the Landlord’s Work period, there will be disruptions throughout the Tenant’s business hours (or after
business hours), and the Tenant shall make its best commercial efforts to cooperate with the Landlord, its appointed contractors, sub-contractors, or employees during the Landlord’s Work period to ensure that the Landlord’s Work proceeds
efficiently. 
 The Landlord shall arrange and be financially responsible for all installation costs for separate metering of all
utilities supplied to the Tenant pursuant to the Lease. This may be by way of a sub-meter and include third-party monitoring which shall form part of the tenant’s Operating Expenses payable under the Lease. 

 

	5.	The Landlord will pay to the Tenant, as a contribution towards the cost of the Tenant’s Leasehold Improvements to that portion of the Premises that comprises the
Rentable Area as of the Extension Term Commencement Date (the “Tenant’s Work”), the Allowance, plus applicable taxes. This Allowance shall be payable upon the completion of the items listed hereto in
Schedule “C”, which shall be incorporated into the Landlord’s standard Tenant Work Agreement attached hereto as Schedule “D”. Should the Tenant’s Work cost less than the Allowance, the difference will be
applied on account of the Basic Rent and Operating Expenses and Property Taxed payments due under the Lease from April 1, 2012 to a maximum. of up to Ten Dollars ($10.00) per square foot of Rentable Area of the Premises, plus applicable taxes.

 The Landlord and the Tenant further confirm and agree that, at the Tenant’s discretion, the Landlord will
pay the above-noted Allowance to the Tenant in two (2) separate installments, in such amounts and on such dates as may be requested by the Tenant. For the avoidance of doubt the Landlord and the Tenant further confirm and agree that any
surrender fee payable under Article 35.0 of the lease, being the Right of Termination, shall be calculated only on the unamortized portion of the Allowance actually paid to the Tenant by the Landlord in addition to the unamortized portion of
the real estate commissions and the two (2) month’ Rent, as stated in Article 35.0 of the Lease. 

	6.	The Landlord acknowledges and agrees that in the event the Landlord elects to require the Tenant to demolish improvements as set out in clause 8.4 of the Lease with
respect to the third floor of the Building (such improvements which, for the avoidance of doubt, include Leasehold Improvements), the Tenant shall not be responsible for any costs associated with converting the third floor of the Building to
multi-tenant use in compliance with building codes, including without limitation those costs associated with construction of corridors, demising walls, and the modifications to the Building’s mechanical and electrical systems.

  

	7.	The parties confirm and ratify the terms and conditions contained in the Lease as amended by this Agreement. 

 

	8.	This Agreement will, from the Effective Date, be read and construed together with the Lease, and the Lease, as amended hereby, shall continue in full force and effect
for the remainder of the term of the Lease in accordance with the terms thereof and hereof. 

  

	9.	This Agreement will enure to the benefit of and be binding upon the heirs, executors, administrators, successors and permitted assigns of the parties.

  

	10.	The Landlord covenants and agrees that it will apply to the City of Burnaby, at its sole expense, for all approvals required in connection with allowing that area
located on the 3rd floor of the Building currently housing the Tenant’s existing server room, as shown on Schedule “E” attached hereto (the “Server Room Area”) to remain as part of the Tenant’s leased
Premises after the Landlord demises the third (3rd) floor of the Building, and that it will use reasonable commercial efforts to obtain such approvals from the City of Burnaby on or before January 31, 2012. Provided that all required
approvals are received from the City of Burnaby by the Extension Term Commencement Date, the Landlord agrees to lease to the Tenant, commencing on the Extension Term Commencement Date, the Server Room Area, on the same terms and conditions as the
Lease, as amended by this Agreement. If the Server Room Area is leased, by the Landlord to the Tenant, the definition of “Proposed New Premises” and “Premises” in this Agreement will be amended to include the Server Room Area,
and the table in section 3.1 of the Lease, as amended, setting out the Basic Rent per annum and per month, will be updated accordingly. The Landlord covenants and agrees that if it leases the Server Room Area to the Tenant, the Tenant will be
entitled to access the Server Room Area at all times. 

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

 

			
	CONCERT REAL ESTATE CORPORATION
		
	By:	 	 /s/ Authorized Signatory

		 	Authorized Signatory
		
	By:	 	 /s/ Authorized Signatory

		 	Authorized Signatory
	
	XENON PHARMACEUTICALS INC.
		
	By:	 	 /s/ Simon Pimstone

		 	Authorized Signatory
		
	By:	 	  

		 	Authorized Signatory

 SCHEDULE A 
 PLAN 
 1st Floor outlined in heavy black - Includes future Common Areas

  
 

 
  

	**	The area hatched in red above indicates the approximate location of the Common Areas.** 

 2nd Floor - Tenant is leasing entire 2nd Floor 

 
 

 

 SCHEDULE B 

LANDLORD’S WORK 
 The
Landlord will, at its own expense, complete the following work on the Main and Third (3rd) floors of the Building in accordance with Section 3 of the Lease Extension and Modification Agreement made as of the 27th day of October, 2011
between the Landlord and the Tenant, in respect of the Common Area of the Building, and, to the extent that they are affected, the Premises: 
  

	(a)	Where required, construct demising walls; 

  

	(b)	Install double full height glass entrance doors plus full height solid core exit doors complete with magnetic card access system tied into the Building security system;

  

	(c)	Reconfigure heating, ventilation and air-conditioning (HVAC); 

  

	(d)	Reconfigure automatic sprinkler system; 

  

	(e)	Reconfigure elevator lobbies and entrance lobbies; 

  

	(f)	Modify the security system to provide the Premises with autonomous security to mutually agreeable standards between the Landlord and the Tenant;

  

	(g)	Replace any cracked, chipped or stained ceiling acoustic tiles or drywall ceilings with new or like new matching acoustic ceiling tiles and finishes (in common area
only); 

  

	(h)	Where required by building code, the Landlord shall be responsible for seismic upgrades to base building T-bar ceiling, lighting systems and base Building mechanical
systems. 

 The Tenant acknowledges and agrees that during such time when the Landlord, or its appointed contractors,
sub-contractors, or employees is/are conducting the Landlord’s Work in the Building, the Tenant will be in the Premises or the Additional Area in common with the Landlord, its contractors, sub-contractors, or employees. The Landlord will make
reasonable efforts to ensure that the operation of the Tenant’s business is not disrupted during the Landlord’s Work period; however, the Tenant acknowledges and agrees that during the Landlord’s Work period, there will be disruptions
throughout the Tenant’s Normal Business Hours (or after Normal Business Hours) and the Tenant shall make its best commercial efforts to co-operate with the Landlord, its appointed contractors, sub-contractors, or employees during the
Landlord’s Work period to ensure that the Landlord’s Work proceeds efficiently. 

 SCHEDULE C 
 TENANT’S WORK 
 The Landlord agrees to pay to the Tenant an Allowance payable within
ten (10) days after the completion of all of the following: 
  

	 	(a)	execution and delivery of the Lease Extension and Modification Agreement made as of the 27th day of October, 2011 between the Landlord and the Tenant (the
“Lease Amending Agreement”) by the Tenant to the Landlord as well as full compliance by the Tenant with all Tenant obligations of the Lease; 

 

	 	(b)	the Extension Term Commencement Date has passed; 

  

	 	(c)	receipt of notice from the Tenant that it has completed the Tenant’s Work contemplated in the Lease Amending Agreement; 

 

	 	(d)	the applicable statutory lien holdback period shall have expired and any liens that may have been filed against the Premises or the property with respect to the work
done by or on behalf of the Tenant with respect to the Premises shall have been discharged from title tithe property; and 

  

	 	(e)	receipt by the Landlord of: 

  

	 	(i)	a copy of the Tenant’s final inspection permit for the Tenant’s Work within the Premises and a copy of the Tenant’s business license, if required;

  

	 	(ii)	an officer’s certificate or a statutory declaration by a principal of the Tenant of payment in full of all costs relating to the Tenant’s Work;

  

	 	(iii)	copies of receipted invoices for the Tenant’s Work substantiating the amount that has been expended and paid Par by the Tenant; 

 

	 	(iv)	a letter from the Workers’ Compensation Board of B.C. (“WorkSafeBC”) confirming that the Tenant and its general contractor have satisfied all assessment
requirements of the WorkSafeBC to the date which is thirty days following the date of substantial completion of the Tenant’s Work; and 

  

	 	(v)	a copy of the certificate of completion signed by the payment certifier in respect of the Tenant’s Work, or if a payment certifier is not available, a certificate
of Substantial Completion from the Tenant’s contractor. 

 SCHEDULE D 
 TENANT WORK AGREEMENT 
 i) Under the Lease made in 2001 ‘between Discovery
Parks Incorporated and Xenon Genetics Inc., as assigned to Concert Real Estate Corporation (the “Landlord”) and Xenon Pharmaceuticals, Inc (the “Tenant”), and as amended, including a Lease Extension and Modification
Agreement made as of the 27th day of October, 2011 between the Landlord and the Tenant (the “Lease Amending Agreement”) (collectively, the “Lease”), the Landlord agreed to pay to the Tenant an allowance (the
“Allowance”) in the amount and on the terms more particularly set out in the Lease; 
 ii) The parties have entered into
this Agreement to supplement their agreement with respect to the Allowance on the terms set out herein. 
 NOW THEREFORE in consideration of the
respective covenants made by the parties in the Lease and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged the parties agree as follows: 

ARTICLE 1 
 APPLICATION ALLOWANCE 
 1.01 The Tenant covenants and agrees with the
Landlord that the Tenant shall utilize the Allowance to complete certain improvements to the Premises (as defined and more particularly set out in the Lease) to prepare them for use and occupation by the Tenant. 

ARTICLE 2 
 REQUIREMENTS FOR TENANT’S WORK 
 2.01 The Tenant shall accept the
Premises in “as is, where is” condition, excepting only the work, if any, specifically set out in the Lease to be completed by the Landlord. It is the Tenant’s responsibility to ensure that the Premises are finished in a good and,
professional manner and with new materials that are of a high quality and conforming to the industry standards of practice and are not in contravention of the codes or regulations of the appropriate municipal authority or any other authority having
jurisdiction. 
 2.02 Prior to commencing any work in the Premises, the Tenant will provide the Landlord with detailed plans of
its intended improvement work (consisting of applicable electrical, mechanical and architectural drawings, specifications and other appropriate information) for review and approval by the Landlord, acting reasonably. The Tenant will be responsible
for all costs incurred by the Landlord in reviewing and approving such plans, including consultant fees. The Tenant may use the Landlord’s consultant with respect to the Tenant’s work. 

2.03 The Tenant, at its expense, will revise its plans to address issues or required changes identified by the Landlord, acting reasonably, and
resubmit the revised plans for final approval of the Landlord, acting reasonably. The Landlord’s approval of the Tenant’s plans denotes acceptance of the information contained in the drawings and specifications provided and approval of the
visual design that the drawings appear to represent. The Landlord’s approval does not mean confirmation of dimensions shown on the drawings nor does it limit the responsibilities of the Tenant to those shown on the drawings and specifications.
The Tenant will be responsible for all work required to prepare the Premises for their intended and permitted use under the Lease and sigh criteria, codes, regulations and laws of governing authorities having jurisdiction, whether or not this is
completely shown on the Tenant’s drawings, notwithstanding the Landlord’s approval. The landlord is not responsible for the function and performance of the Tenant’s design, installation and construction. 

 2.04 It is the Tenants responsibility to obtain all necessary approvals and permits for its work from
the appropriate municipal authority and all other authorities having jurisdiction and the Tenant must submit evidence of these approvals to the Landlord before commencing work. The Tenant is responsible for payment of all fees and charges incurred
in obtaining said approvals and for obtaining, if required by the Municipality, an occupancy permit prior to commencing operations in the Premises. 
 2.05 Before commencing the Tenant’s work, the Tenant is to provide written proof to the Landlord that liability, fire, general worker’s compensation and any other insurance reasonably
required by the Landlord has been effected and is in force to the limits and on the terms which the Landlord may reasonably approve. The Landlord shall be named at an additional insured and loss-payee in the Tenant’s insurance for the
Premises. 
 2.06 The Tenant indemnifies the Landlord from any and all claims arising out of work done by the Tenant or its
contractors and the Tenant will promptly remove any liens filed against title to the Premises or the Land (as defined in the Lease) in connection therewith, failing which the Landlord may do so and the Tenant will pay all the Landlord’s costs,
including legal costs, as incurred by the Landlord. 
 2.07 The Landlord is not responsible or liable for any materials left or
installed in the Premises or for any loss or damage suffered by the Tenant, its contractor or subcontractors. The Tenant is entirely responsible for the security of the Premises and the security of its contractor’s supplies and equipment. No
security for the Premises will be installed unless prior written approval is obtained from the Landlord. 
 2.08 The Tenant
acknowledges, and agrees that: 
 (a) the Landlord is not in any way responsible or liable with regard to any Tenant’s Work
(as defined in the Lease) carried out in the Premises; 
 (b) any damage caused by the Tenant, its contractor or subcontractors
employed on the Tenant’s Work to any work of the structure or the systems employed in the Building or to any property of the Landlord or of other tenants or owners in the Building is to be repaired by the Landlord’s contractor to the
satisfaction of the Landlord and the Landlord may recover the costs incurred from the Tenant; and 
 (c) under no circumstances
shall the Tenant or its contractor at any time be permitted to drill or cut conduit, pipe sleeves, chases, duct equipment, openings in the floor, columns, walls or ceiling of the Building; any work of this type required by the Tenant Shall be
subject to the Landlord’s approval, pot to be, unreasonably withheld or delayed. 
 ARTICLE 3 

WORK DONE BY THE LANDLORD FOR THE TENANT 
 3.01 Any equipment or work (excepting any Landlord’s Work, as defined in the Lease) provided by the Landlord for or at the request of the Tenant, is to be paid for by the Tenant as follows:

 (a) one hundred percent (100%) of the amount payable will be paid at the time the Tenant requests the equipment to be
supplied or the work to be done; and 
 (b) the cost of such equipment or work includes, without limitation, labour, materials,
applicable taxes, all architectural, engineering and contractor’s fees in connection thereof, and all reasonable fees for supervision of such work as the Landlord may charge. 

 ARTICLE 4 

ALLOWANCE 
 4.01
The Landlord agrees to pay to the Tenant the Allowance payable within ten (10) days after the completion of all of the following: 
  

	 	(a)	execution and delivery of the Lease Amending Agreement by the Tenant to the Landlord as well as full compliance by the Tenant with all Tenant obligations of the Lease;

  

	 	(b)	the Extension Term Commencement Date has passed; 

  

	 	(c)	receipt of notice from the Tenant that it has completed the Tenant’s Work contemplated in the Lease Amending Agreement; 

 

	 	(d)	the applicable statutory lien holdback period shall have expired and any liens that may have been filed against the Premises or the property with respect to the work
done by or on behalf, of the Tenant with respect to the Premises shall have been discharged from title to the property; and 

  

	 	(e)	receipt by the Landlord of: 

  

	 	(i)	a copy of the Tenant’s final Inspection Permit for the Tenant’s Work within the Premises and a copy of the Tenant’s business license, if required;

  

	 	(ii)	an officer’s certificate or a statutory declaration by a principal of the Tenant of payment in full of all costs relating to the Tenant’s Work;

  

	 	(iii)	copies of receipted invoices for the Tenant’s Work substantiating the amount that has been expended and paid for by the Tenant; 

 

	 	(iv)	a letter from the Workers’ Compensation Board of B.C. (“WorkSafeBC”) confirming that the Tenant and its general contractor have satisfied all assessment
requirements of the WorkSafeBC to the date which is thirty (30) days following the date of substantial completion of the Tenant’s Work; and 

  

	 	(v)	a copy of the certificate of completion signed by the payment certifier in respect of the Tenant’s Work, or if a payment certifier is not available, certificate of
Substantial Completion from the Tenant’s contractor. 

 ARTICLE 5 

NON-COMPLIANCE 

5.01 If the Tenant does not comply with the provisions of the Lease or any other agreement relative to the construction or occupation of the
Premises, including this Agreement, the Landlord, in addition to and not in lieu of any other rights or remedies, has the right to any and all of the following in its discretion: 

 

	 	(a)	to declare all fees, charges and other sums payable by the Tenant to the Landlord pursuant to this Agreement to be rent and to be collectible as rent under the
provisions of the Lease; or 

  

	 	(b)	to declare and treat the Tenant’s non-compliance as a default or breach of Covenant under the Lease and exercise any right available under the provisions of the
Lease, including the right of termination. 

 5.02 In any event of termination pursuant to the above provisions, the Landlord may further elect
either to retain for its own use and without payment of, all or any of the Tenant’s Work which has been commenced, installed or completed to the date of termination or immediately demolish or remove all or any work and restore the Premises to
the condition it was prior to the commencement of the Tenant’s Work, the cost which is payable by the Tenant. 

ARTICLE 6 
 GENERAL 
 6.01 This Schedule shall survive, and neither shall merge
upon, the execution and delivery of the other such document. The parties acknowledge and agree that the terms of this Agreement are intended to supplement and co-exist with the terms of the Lease, notwithstanding any contrary term of the Lease. 

 IN WITNESS WHEREOF the parties have executed this Agreement as of the date set out above. 

 

	
	The Landlord:
	
	CONCERT REAL ESTATE CORPORATION
	
	Per
	
	 /s/ Authorized Signatory

	(Authorized Signatory)
	
	Per
	
	 /s/ Authorized Signatory

	(Authorized Signatory)
	
	The Tenant:
	
	XENON PHARMACEUTICALS INC.
	
	Per
	
	 /s/ Simon Pimstone

	(Authorized Signatory)
	
	Per
	
	  

	(Authorized Signatory)

 

 

 LEASE MODIFICATION AGREEMENT 
 This Agreement made on the 18th day of July, 2013 and made effective as of the 1st day of April, 2012 (the “Effective Date”). 

BETWEEN: 
 CONCERT REAL
ESTATE CORPORATION 
 (the “Landlord”) 
 AND: 
 XENON PHARMACEUTICALS INC. 

(the “Tenant”) 

WHEREAS: 
  

	A.	By a lease made in 2001 (the “Original Lease”) between Discovery Parks Incorporated (the “Original Landlord”) and Xenon Genetics Inc.
(the “Original Tenant”), the Original Tenant leased certain premises (the “Original Premises”) comprising the whole of the building (the “Building”) located on property known as 3650 Gilmore Way,
Burnaby, British Columbia, as more particularly described in the Original Lease for a term of ten (10) years expiring on April 14, 2011; 

  

	B.	The Landlord is the successor in interest to the Original Landlord; 

  

	C.	The Tenant is the successor in interest to the Original Tenant; 

  

	D.	By a lease extension and modification agreement made effective November 8, 2010 (the “First Modification”) between the Landlord and Tenant, the
Landlord and the Tenant agreed to extend the term of the Original Lease for an additional four (4) months and sixteen (16) days, for a term expiring on August 31, 2011, as further described in the First Modification;

  

	E.	By a lease extension and modification agreement made effective February 7, 2011 (the “Second Modification”) between the Landlord and Tenant, the
Landlord and the Tenant agreed to extend the term of the Original Lease for an additional four (4) months, for a term expiring on December 31, 2011, as further described in the Second Modification; 

 

	F.	By a lease extension and modification agreement made effective June 1, 2011 (the “Third Modification”) between the Landlord and Tenant, the
Landlord and the Tenant agreed to extend the term of the Original Lease for an additional three (3) months, for a term expiring on March 31, 2012, as further described in the Third Modification; 

 

	G.	By an Offer to Lease (the “Original Offer”) accepted by the Landlord on November 9, 2010 and accepted by the Tenant on November 23, 2010, the
Landlord and Tenant agreed that the Tenant would continue to lease a portion (the “Proposed New Premises”, being the whole of the 1st and 2nd floors of the Building) of the Original Premises, as more particularly described in the
Offer, for a term of 120 months commencing on September 1, 2011, on the terms and conditions set out in the Original Offer; 

	H.	By an Addendum/Amendment (the “First Addendum”) dated for reference February 7, 2011, the Original Offer was amended as set out therein;

  

	I.	By an Addendum/Amendment (the “Second Addendum”) dated for reference June 1, 2011, the Original Offer, as amended, was further amended as set out
therein; 

  

	J.	By an Addendum/Amendment (the “Third Addendum”) dated for reference August 31, 2011, the Original Offer, as amended, was further amended as set
out therein, including adding a right for the Tenant to elect to surrender and terminate its rights under the Original Offer in respect of that portion (the “Surrender Area”) of the Proposed New Premises shown on the plan attached
to the Third Addendum as Exhibit A; 

  

	K.	By an Addendum/Amendment (the “Fourth Addendum”) dated for reference September 30, 2011, the Original Offer, as amended, was further amended by
replacing the plan of the Surrender Area attached to the Third Addendum as Exhibit A with the plan attached as Exhibit A to the Fourth Addendum; 

  

	L.	By a letter (the “Surrender Letter”) dated September 30, 2011, the Tenant notified the Landlord that the Tenant was exercising its right to
surrender and terminate its rights under the Original Offer in respect of the Surrender Area; 

  

	M.	The Original Offer, as amended by the First Addendum, Second Addendum, Third Addendum, Fourth Addendum, the Surrender Letter, Addendum #5 dated October 19, 2011,
Addendum #6 dated October 28, 2011, Addendum #7 dated November 9, 2011, Addendum #8 dated November 25, 2011, and Addendum #9 dated November 29, 2011, and the , is herein referred to as the “Offer” and the
Proposed New Premises, excluding the Surrender Area but Including the IT Room (as defined below) are referred to as the “Premises”; 

  

	N.	By a lease extension and modification agreement made as of October 27, 2011 (the “Fourth Modification”) between the Landlord and Tenant, the
Landlord and the Tenant agreed to extend the term of the Original Lease for an additional ten (10) years, for a term expiring on March 31, 2022 on the terms and conditions therein, as further described in the Fourth Modification (the
Original Lease as modified by the First Modification, the Second Modification, the Third Modification and the Fourth Modification is referred to herein as the “Lease”); 

 

	O.	The Landlord and the Tenant acknowledge and agree that the recitals hereto are true and incontrovertible; 

 

	P.	The Landlord and the Tenant have agreed to amend the Lease on the terms set out herein. 

 THEREFORE in consideration of the premises, the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by
each of the parties hereto, the parties agree as follows: 
  

	1.	For the purposes of this Agreement and unless there is a definition specifically herein contained, any words, terms or phrases that are defined in the Lease shall have
the same meaning herein. 

	2.	The Landlord and the Tenant acknowledge and agree that the Landlord has obtained the First Measurement for the Premises. 

 

	3.	The Landlord and the Tenant further acknowledge and agree that the Landlord has obtained the Second Measurement, which illustrates the final Actual Rentable Area of the
Premises. 

  

	4.	Effective on the Effective Date, the Landlord and the Tenant agree that all rental payments in the Lease shall be adjusted in accordance with this Lease Modification
Agreement. 

  

	5.	The Landlord and the Tenant agree to delete Clause 2 (a) of the Fourth Modification and replace it with the following: 

 

	 	“(a)	In section 1.1, the phrase “Rentable Area of approximately 56,776 square feet, being the entire Building situated thereon, as set out in
Schedule “A” attached hereto” is deleted and replaced with “Rentable Area of 30,600 square feet, being a portion of the first floor (Unit 120), the entire second floor (Unit 200) and a portion of the third floor
(“IT Room” and “Unit 200”) of the Building situated thereon, as set out in Schedule “A” and Schedule “E” attached hereto, and includes the Tenant’s Proportionate Share of Common Areas as per
section 3.3 below. For avoidance of doubt, the areas designated as “Vertical Penetrations Areas” in Schedule “A” and Schedule “E” are not included in the “Second Measurement” calculation underlying
the above-noted Rentable Area and the Basic Rent set forth in Section 3.1 below.”; 

  

	6.	The Landlord and the Tenant agree to delete Clause 2 (c) (ii) of the Fourth Modification and replace it with the following: 

 

													
	“Period	  	Per Square Foot	 	  	Approximate
Basic Rent Per
Annum	 	  	Approximate
Basic Rent Per
Month	 
				
	 April 15, 2011 - March 31, 2012
	  	$	19.50	  	  	$	1,107,132.00	  	  	$	92,261.00	  
				
	 April 1, 2012 - March 31, 2017
	  	$	19.50	  	  	$	596,700.00	  	  	$	49,725.00	  
				
	 April 1, 2017 - March 31, 2022
	  	$	19.50	  	  	$	642,600.00	  	  	$	53,550.00	  

 The Tenant shall have a Free Basic Rent Period from April 1, 2012 through to August 15, 2012.
During this period, the Tenant shall pay to the Landlord its Proportionate Share of Operating Expenses and property taxes and abide by all other terms of the Lease.”; 

 

	7.	The Landlord and the Tenant agree to delete Article 36 of the Lease and replace it with the following: 

36.0 PARKING 

36.1 The Tenant shall be provided seventy (70) designed parking stalls free of any monthly parking charge for the balance of
the Term from April 1, 2012 and any renewals thereof as shown on the parking plan below. The Tenant may designate underground parking spaces allocated to it for use as storage areas or other uses and may fence these off or construct
demising walls, subject to the 

 
Landlord’s approval (such approval not to be unreasonably withheld) and compliance with building codes, and subject to not impeding access to the balance of the parking stalls. The Tenant
covenants that all fencing or demised walls for such storage areas shall be removed at the Tenant’s sole cost and expense prior to the Lease expiry and all damages caused by such removal shall be repaired by the Tenant at its sole cost and
expense. 
 Parking Plan 
  

 
  
 

 
  

	8.	The Landlord and the Tenant agree that Schedule “A” of the Lease is deleted and replaced with Schedule “A” attached hereto.

  

	9.	The Landlord and the Tenant hereby confirm that the Landlord’s Work in Schedule “B” of the Fourth Modification has been completed and
satisfied. 

  

	10.	The Landlord and the Tenant hereby confirm that, as of the date of this Agreement, pursuant to the Tenant Work Agreement attached as Schedule “D” of the
Fourth Modification, the Tenant has conducted certain Tenant’s Leasehold Improvements comprising Tenant’s Work under the Lease (“2012/2013 Leasehold Improvements”). For avoidance of doubt, in keeping with the Landlord and
the Tenant’s mutual intention and understanding as set out under the first sentence of paragraph 2 of Section 5 of the Fourth Modification, and notwithstanding anything to the contrary in Section 5 of the Fourth Modification or
otherwise, the Landlord and the Tenant further confirm their agreement as follows: 

  

	 	(a)	with respect to the 2012/2013 Leasehold Improvements, the Tenant has complied with Sections 2.01 to 2.05 (inclusive), and subsection 2.08(c) of the Tenant Work
Agreement; however, the Landlord and the Tenant agree and accept that the following items for the 2012/2013 Leasehold Improvements shall be submitted from the Tenant to the Landlord as a condition of the Allowance being paid:

  

	 	(i)	“As built” drawings saved in PDF and AutoCAD format 2004 and submitted to the Landlord on a CD or via e-mail; 

 

	 	(ii)	Mechanical drawings; 

  

	 	(iii)	All Permits; and 

  

	 	(iv)	All inspection reports; 

  

	 	(b)	at the Tenant’s discretion, as of the date of this Agreement, (subject to the Tenant having complied with the requirements of the Tenant Work Agreement, and
specifically, having provided to the Landlord those items set forth under subsections 4.01 (c), (d), and (e) of such Tenant Work Agreement) the Tenant has the right to request that the Landlord pay to the Tenant (as the first installment
contemplated under the first sentence of paragraph 2 of Section 5 of the Fourth Modification) up to the total of the amount of the Allowance that relates to the 2012/2013 Leasehold Improvements, and in the event the Tenant requests same, such
first installment portion of the Allowance will be paid to the Tenant within ten (10) days of the Tenant’s request for same; 

	 	(c)	should the Tenant desire to delay its request for such first installment payment, until such later time and time that it has conducted additional Tenant’s
Leasehold Improvements comprising Tenant’s Work, the Tenant has the right to do so, and at that time (provided that such additional Tenant’s Leasehold Improvements (as well as the 2012/2013 Leasehold Improvements) are completed and
satisfied in accordance with the terms set out in the Lease including those terms set out in the Tenant Work Agreement), the applicable first installment portion of the Allowance (relating to all such Tenant’s Work conducted and completed as of
that later date), will be paid to the Tenant within ten (10) days of the Tenant’s request for same; 

  

	 	(d)	the Tenant has the right to request that the Landlord pay to the Tenant the second installment payment, at any time over the course of the Extension Term following the
date of the Tenant’s request for its first installment payment, and in the event the Tenant requests such second installment payment, (provided that any Tenant’s Leasehold Improvements that are the subject matter of that second installment
payment are completed and satisfied in accordance with the terms set out in the Lease including those terms set out in the Tenant Work Agreement), such second installment portion of the Allowance will be paid to the Tenant within ten (10) days
of the Tenant’s request for same; and 

  

	 	(e)	in the event that, the total amount of the Tenant’s Work (as repaid by the Landlord to the Tenant under the first installment plus the second installment) is a sum
lower than the total amount of the Allowance, the difference between the Allowance and the amount actually repaid to the Tenant by the Landlord, calculated in accordance with paragraph 1 of Section 5 of the Fourth Modification (the
“Difference”), will be applied on account of the Basic Rent and Operating Expenses and Property Taxes otherwise owed to the Landlord by the Tenant. For the avoidance of doubt, if at the time that the Landlord and Tenant make the
determination that the Difference is payable to the Tenant, the Extension Term has been completed and there is no more Basic Rent, Operating Expenses, or Property Taxes otherwise owed to the Landlord by the Tenant to which the Difference could be
applied, in such event the Landlord will forthwith pay the Difference to the Tenant in cash. 

  

	11.	The parties confirm and ratify the terms and conditions contained in the Lease as amended by this Agreement. 

 

	12.	This Agreement will, from the Effective Date, be read and construed together with the Lease, and the Lease, as amended hereby, shall continue in full force and effect
for the remainder of the term of the Lease in accordance with the terms thereof and hereof. 

  

	13.	This Agreement will enure to the benefit of and be binding upon the heirs, executors, administrators, successors and permitted assigns of the parties.

  

	14.	The Landlord and the Tenant agree to delete Schedule “E” of the Fourth Modification and replace it with the following: 

 SCHEDULE “E” 

SERVER ROOM AREA (LABELED “IT ROOM”) 
  

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

 

			
	CONCERT REAL ESTATE CORPORATION
		
	By:	 	 /s/ Authorized Signatory

		 	Authorized Signatory
		
	By:	 	 /s/ Authorized Signatory

		 	Authorized Signatory
	
	XENON PHARMACEUTICALS INC.
		
	By:	 	 /s/ Simon Pimstone

		 	Authorized Signatory
		
	By:	 	  

		 	Authorized Signatory

 SCHEDULE “A” 

PLAN 
 1st Floor
— Unit 120 
  
 

 
 2nd Floor — Tenant is leading entire 2nd Floor 

 
 

 
 3rd Floor — Unit 200 

 
 

 
 END OF DOCUMENT 

 LEASE MODIFICATION AGREEMENT 

This lease modification agreement (hereinafter referred to as this “Agreement” or the “Sixth
Modification”) is made on the 10th day of July, 2014 and made effective as of the 1st day of July, 2014 (the “Effective Date”). 

BETWEEN: 
 REDSTONE
ENTERPRISES LTD. 
 (the “Landlord”) 
 AND: 
 XENON PHARMACEUTICALS INC. 

(the “Tenant”) 

WHEREAS: 
  

	A.	By a lease made in 2001 (the “Original Lease”) between Discovery Parks Incorporated (the “Original Landlord”) and Xenon Genetics Inc.
(the “Original Tenant”), the Original Tenant leased certain premises (the “Original Premises”) comprising the whole of the building (the “Building”) located on property known as 3650 Gilmore Way,
Burnaby, British Columbia, as more particularly described in the Original Lease for a term of ten (10) years expiring on April 14, 2011; 

  

	B.	Concert Real Estate Corporation (the “Previous Landlord”) was the immediate successor in interest to the Original Landlord; the Landlord is the successor in
interest to the Original Landlord and the Previous Landlord; 

  

	C.	The Tenant is the successor in interest to the Original Tenant; 

  

	D.	By a lease extension and modification agreement made effective November 8, 2010 (the “First Modification”) between the Previous Landlord and
Tenant, the Previous Landlord and the Tenant agreed to extend the term of the Original Lease for an additional four (4) months and sixteen (16) days, for a term expiring on August 31, 2011, as further described in the First
Modification; 

  

	E.	By a lease extension and modification agreement made effective February 7, 2011 (the “Second Modification”) between the Previous Landlord and
Tenant, the Previous Landlord and the Tenant agreed to extend the term of the Original Lease for an additional four (4) months, for a term expiring on December 31, 2011, as further described in the Second Modification;

  

	F.	By a lease extension and modification agreement made effective June 1, 2011 (the “Third Modification”) between the Previous Landlord and Tenant,
the Previous Landlord and the Tenant agreed to extend the term of the Original Lease for an additional three (3) months, for a term expiring on March 31, 2012, as further described in the Third Modification; 

 

	G.	 By an Offer to Lease (the “Original Offer”) accepted by the Previous Landlord on November 9, 2010 and accepted by the Tenant on
November 23, 2010, the Previous Landlord and Tenant agreed that the Tenant would continue to lease a portion (the “Proposed New Premises”, being the whole of the 1st and 2nd floors of the Building) 

  
 Page 1 of 7

	 	
of the Original Premises, as more particularly described in the Offer, for a term of 120 months commencing on September 1, 2011, on the terms and conditions set out in the Original Offer;

  

	H.	By an Addendum/Amendment (the “First Addendum”) dated for reference February 7, 2011, the Original Offer was amended as set out therein;

  

	I.	By an Addendum/Amendment (the “Second Addendum”) dated for reference June 1, 2011, the Original Offer, as amended, was further amended as set out
therein; 

  

	J.	By an Addendum/Amendment (the “Third Addendum”) dated for reference August 31, 2011, the Original Offer, as amended, was further amended as set
out therein, including adding a right for the Tenant to elect to surrender and terminate its rights under the Original Offer in respect of that portion (the “Surrender Area”) of the Proposed New Premises shown on the plan attached
to the Third Addendum as Exhibit A; 

  

	K.	By an Addendum/Amendment (the “Fourth Addendum”) dated for reference September 30, 2011, the Original Offer, as amended, was further amended by
replacing the plan of the Surrender Area attached to the Third Addendum as Exhibit A with the plan attached as Exhibit A to the Fourth Addendum; 

  

	L.	By a letter (the “Surrender Letter”) dated September 30, 2011, the Tenant notified the Previous Landlord that the Tenant was exercising its right
to surrender and terminate its rights under the Original Offer in respect of the Surrender Area; 

  

	M.	The Original Offer, as amended by the First Addendum, Second Addendum, Third Addendum, Fourth Addendum, the Surrender Letter, Addendum #5 dated October 19, 2011,
Addendum #6 dated October 28, 2011, Addendum #7 dated November 9, 2011, Addendum #8 dated November 25, 2011, and Addendum #9 dated November 29, 2011 is herein referred to as the “Offer” and the Proposed New
Premises, excluding the Surrender Area but including the IT Room (as defined below) are referred to as the “Premises”; 

  

	N.	By a ease extension and modification agreement made as of October 27, 2011 (the “Fourth Modification”) as amended by a lease modification
agreement made as of April 1, 2012 (the “Fifth Modification”) each between the Previous Landlord and Tenant, the Previous Landlord and the Tenant agreed to extend the term of the Original Lease for an additional ten
(10) years, for a term expiring on March 31, 2022 on the terms and conditions therein, as further described in the Fourth Modification and Fifth Modification (the Original Lease as modified by the First Modification, the Second
Modification, the Third Modification, the Fourth Modification, and the Fifth Modification is referred to herein as the “Lease”); 

  

	O.	The Landlord is the successor in interest to the Original Landlord and the Previous Landlord; 

 

	P.	The Landlord and the Tenant acknowledge and agree that the recitals hereto are true and incontrovertible; 

 

	Q.	The Landlord and the Tenant have agreed to amend the Lease on the terms set out herein. 

 THEREFORE in consideration of the premises, the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by
each of the parties hereto, the parties agree as follows: 
  

	1.	For the purposes of this Agreement and unless there is a definition specifically herein contained, any words, terms or phrases that are defined in the Lease shall have
the same meaning herein. 

  
 Page 2 of 7

	2.	Effective on the Effective Date, the Landlord and the Tenant agree that the Rentable Area and all payments related thereto in the Lease shall be adjusted in accordance
with this Agreement. 

  

	3.	As of the Effective Date, the Landlord and the Tenant agree to delete Clause 5 of the Fifth Modification and replace it with the following: 

“The Landlord and the Tenant agree to delete Clause 2(a) of the Fourth Modification and replace it with the following: 

(a) In section 1.1, the phrase “Rentable Area of approximately 56,776 square feet, being the entire Building situated thereon,
as set out in Schedule “A” attached hereto” is deleted and replaced with “Rentable Area of approximately 33,600 square feet, subject to confirmation pursuant to section 3.3 below, being a portion of the first floor
(Unit 120), the entire second floor (Unit 200) and a portion of the third floor (“IT Room” and “Unit 200” and the portion of Unit 310 referenced as “Unit 310A”) of the Building situated thereon, each as set out in
Schedule “A” attached hereto, and includes the Tenant’s Proportionate Share of Common Areas as per section 3.3 below. For avoidance of doubt, the areas designated as “Vertical Penetrations Areas” in Schedule “A”
and Schedule “E” are not included in the “Second Measurement” calculation underlying the above-noted Rentable Area and the Basic Rent set forth in Section 3.1 below.”; 

 

	4.	As of the Effective Date, the Landlord and the Tenant agree to delete Clause 6 of the Fifth Modification and replace it with the following: 

 “The Landlord and the Tenant agree to delete Clause 2 (c) (ii) of the Fourth
Modification and replace it with the following: 
 The following is added at the bottom of the table set out therein: 

 

													
	Period	  	Per Square
Foot	 	  	Approximate
Basic Rent Per
Annum	 	  	Approximate
Basic Rent Per
Month	 
				
	 April 15, 2011 – March 31, 2012
	  	$	19.50	  	  	$	1,107,132.00	  	  	$	92,261.00	  
				
	 April 1, 2012 – June 30, 2014
	  	$	19.50	  	  	$	596,700.00	  	  	$	49,725.00	  
				
	 July 1, 2014 – March 31, 2017
	  	$	19.50	  	  	$	655,200.00	  	  	$	54,600.00	  
				
	 April 1, 2017 – March 31, 2022
	  	$	21.00	  	  	$	705,600.00	  	  	$	58,800.00	  

 The Tenant shall have a Free Basic Rent Period from April 1, 2012 through to August 15, 2012.
During this period, the Tenant shall pay to the Landlord its Proportionate Share of Operating Expenses and property taxes and abide by all other terms of the Lease.”; 

  
 Page 3 of 7

	5.	The Landlord and the Tenant agree to delete Clause 2 (c) (i) of the Fourth Modification and replace it with the following: 

“(i). The address of the Landlord is deleted and replaced with “2011 - 7495 132nd Street, Surrey, BC V3W 1J8
(Tel: 604-596-5622, Fax: 604-596-5204)”.” 
  

	6.	The Landlord and the Tenant have together measured and determined the Actual Rentable Area of the Premises as of the Effective Date and as referenced in clause 3 above
, in accordance with the BOMA Standard, and agree that the Actual Rentable Area of the portion of Unit 310 referenced as Unit 310A that the Tenant is occupying as of the Effective Date totals 3,000 square feet. 

In the event that, at the end of the four (4) month period referenced in clause 9 below, the Tenant does not
lease any of the contiguous space therein referenced, and if the aforementioned designated individuals are then unable to agree upon the exact location of the dividing wall that would then need to be erected in order to separate and secure Unit 310A
from the remainder of the 3rd floor space, the Landlord,
at its cost, will then make arrangements for a measurement of the Premises to be conducted in accordance with the BOMA Standard by an independent third party who is qualified to make such BOMA Standard measurements, and such independent third party
will measure and provide advice as to the appropriate location of such dividing wall so as to ensure that Unit 310A comprises 3,000 square feet, and (unless the parties at that time mutually agree otherwise in writing), the determination of such
independent third party shall be deemed to be the final determination respecting the proper placement of the dividing wall that would separate and secure Unit 310A from the other space within Unit 310 that is contiguous to Unit 310A. 

 

	7.	For clarity, the Landlord and the Tenant confirm and agree that, the Allowance referenced in clause 5 of the Fourth Modification is applicable to any Tenant’s
Leasehold Improvements that the Tenant may make to any portion of the Premises that comprises the Rentable Area as of the Effective Date. For avoidance of doubt, the Landlord and the Tenant confirm and agree that no additional Allowance amount shall
be payable by the Landlord as a result of the increase in the Rentable Area (as of July 1, 2014) that is attributable to Unit 310A. 

  

	8.	 The Landlord acknowledges and agrees that, notwithstanding anything to the contrary in the Lease, as of the Effective Date, with respect to the third
(3rd) floor of the Building, Section 8.4 of the
Lease shall be interpreted to apply only to those business and trade fixtures, machinery and equipment, cabinet work, furniture and moveable and immovable partitions owned or installed by the Tenant after the Effective Date.

  

	9.	 The Landlord confirms and agrees that, for the four (4) month period between the Effective Date and November 1, 2014, the Landlord will not
lease to any other party (other than the Tenant), any space within Unit 310 on the third (3rd) floor of the Building that is contiguous to Unit 310A. For the avoidance of doubt, the parties agree that such continguous space is that space within Unit 310 that is to the west of Unit 310A, and
the Boardroom that is on the south-east corner of Unit 310A. The Tenant further confirms and agrees that, on or prior to November 1, 2014, the Tenant will advise the Landlord as to whether it desires to lease any additional space within Unit
310 on the third (3rd) floor of the Building, in
which case, for any such additional space, section 33.1 of the Lease (as set forth in clause 2(t) of the Fourth Amendment) shall apply. 

  
 Page 4 of 7

 For clarity, the term “additional space” as used in this
clause 9 above, means space within Unit 310 other than the space on the third (3rd) floor (namely, the IT Room, Unit 200 and Unit 310A) that is included in the Rentable Area as of the Effective Date. 
  

	10.	The Landlord and the Tenant agree that Schedule “A” of the Lease is deleted and replaced with Schedule “A” attached hereto.

  

	11.	The parties confirm and ratify the terms and conditions contained in the Lease as amended by this Agreement. 

 

	12.	This Agreement will, from the Effective Date, be read and construed together with the Lease, and the Lease, as amended hereby, shall continue in full force and effect
for the remainder of the term of the Lease in accordance with the terms thereof and hereof. 

  

	13.	This Agreement will enure to the benefit of and be binding upon the heirs, executors, administrators, successors and permitted assigns of the parties.

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

 

			
	REDSTONE ENTERPRISES LTD.
		
	By:  	 	

		 	Authorized Signatory
		
	By:	 	

		 	Authorized Signatory
	
	XENON PHARMACEUTICALS INC.
		
	By:	 	

		 	Authorized Signatory

  
 Page 5 of 7

 SCHEDULE “A” 

PLAN 

1st
 Floor – Unit 120 
  
 

 
 2nd Floor – Tenant is leasing entire
2nd Floor 
  

 

  
 Page 6 of 7

 3rd Floor – IT Room, Unit 200, & Unit 310A 
  

 
  

	 	•	 	 The portion of Unit 310 that is outlined in orange above, is Unit 310A. 

END OF DOCUMENT 

  
 Page 7 of 7

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