Document:

EX-10.11

 Exhibit 10.11 
  

 
 EMPLOYMENT AGREEMENT 

 
 THIS AGREEMENT is made and effective as of the 1st
Day of January, 2012 (the “Effective Date”). 
 BETWEEN: 

Mr. Gordon Ng, having a residence at 326 West 1st Avenue, Vancouver, BC, V5Y 3T7, Canada 

(the “Employee”) 
 AND: 

ZYMEWORKS INC., a corporation registered in the Province of British Columbia and having its principal place of business at 540-1385
West 8th Avenue, Vancouver, BC, V6H 3V9, Canada 
 (the “Company”) 

WHEREAS 
 A. The Company is a protein engineering company
engaged in the business of researching, developing and commercializing proteins for pharmaceutical applications; 
 B. The Employee has experience in
preclinical research & development, and/or related skills and expertise and wishes to contribute such experiences to the development and growth of the Company’s business; and 

C. The Company has agreed to offer employment to the Employee, and the employee has agreed to accept employment with the Company on the terms and conditions
set out in this Agreement and Appendices hereto. 
 NOW THEREFORE THIS AGREEMENT WITNESSES that for and in consideration of the premises and mutual
covenants and agreements hereinafter contained, the parties hereto covenant and agree as follows: 
 ARTICLE 1 – GENERAL 

1.1 Definitions. Unless otherwise defined, all capitalized terms used in this Agreement will have the meanings given below: 

 

	 	(a)	“Business” means the business of researching, developing and commercializing therapeutic proteins, antibodies, and any other research, development and manufacturing work considered, planned or undertaken by
the Company during the Employee’s employment; 

  

			
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	 	(b)	“Confidential Information” means trade secrets and other information, in whatever form or media, in the possession or control of the Company, which is owned by the Company or by one of its clients or suppliers
or a third party with whom the Company has a business relationship (collectively, the “Associates”), and which is not generally known to the public and has been specifically identified as confidential or proprietary by the Company, or its
nature is such that it would generally be considered confidential in the industry in which the Company or its Associates operate, or which the Company is obligated to treat as confidential or proprietary. Confidential Information includes, without
limitation, the following: 

  

	 	(i)	the products and confidential or proprietary facts, data, techniques, materials and other information related to the business of the Company, including all related development or experimental work or research, related
documentation owned or marketed by the Company and related formulas, algorithms, patent applications, concepts, designs, flowcharts, ideas, programming techniques, specifications and software programs (including source code listings), methods,
processes, inventions, sources, drawings, computer models, prototypes and patterns; 

  

	 	(ii)	information regarding the Company’s business operations, methods and practices, including market strategies, product pricing, margins and hourly rates for staff and information regarding the financial, legal and
corporate affairs of the Company; 

  

	 	(iii)	the names of the Company’s Associates and the nature of the Company’s relationships with such Associates; and 

  

	 	(iv)	technical and business information of, or regarding, the Company’s Associates. 

  

	 	(c)	“Developments” means all inventions, ideas, concepts, designs, improvements, discoveries, modifications, computer software, and other results which are conceived of, developed by, written, or reduced to
practice by the Employee, alone or jointly with others (including, where applicable, all modifications, derivatives, progeny, models, specifications, source code, design documents, creations, scripts, artwork, text, graphics, photos and pictures);

  

	 	(d)	“Excluded Developments” means any Development that the Employee establishes: 

  

	 	(i)	was developed prior to the Employee performing such services for the Company and precedes the Employee’s initial engagement with the Company; 

  

			
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	 	(ii)	was developed entirely on the Employee’s own time; 

  

	 	(iii)	was developed without the use of any equipment, supplies, facilities, services or Confidential Information of the Company; 

  

	 	(iv)	does not relate directly to the Business or affairs of the Company during the term of the Employee’s employment with the Company or to the actual or demonstrably anticipated research or development of the Company
during this period; and 

  

	 	(v)	does not result from any work performed by the Employee for the Company. 

 1.2 Sections and
Headings. The division of this Agreement into Articles and Sections and the insertion of headings are for the convenience of reference only and do not affect the construction or interpretation of this Agreement. The terms
“hereof”, “hereunder” and similar expressions refer to this Agreement and not to any particular Article, Section or other portion hereof and include any agreement supplemental hereto. Unless something in the subject matter
or context is inconsistent therewith, references herein to Articles and Sections are to Articles and Sections of this Agreement. 

ARTICLE 2 – EMPLOYMENT 
 2.1 Services. On
the Effective Date, the Employee will commence employment with the Company in the position of Vice President, Preclinical Research & Development in the Research & Development group on the terms and conditions set out in this
Agreement. 
 2.2 Qualifications. 
  

	 	(a)	The Employee acknowledges that the falsification or misrepresentation of qualifications, including but not limited to education, skills, prior experience, depth and/or breadth of knowledge, references or similar
matters, used to secure the position of Vice President, Preclinical Research & Development, represents a breach of this contract. 

  

	 	(b)	The Employee acknowledges that knowingly withholding factors which would reasonably be considered to impair the Employee’s ability to perform the duties required of a Vice President, Preclinical Research &
Development , set out in Appendix “A” to this Agreement, represents a breach of this contract. 

  

			
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	 	(c)	Employment Duties. Subject to the direction and control of the senior management of the Company (“Management”), the Employee will perform the duties set out in Appendix “A” to this Agreement
and any other duties that may be reasonably assigned to him/her by Management from time to time. 

 2.3 Throughout the term of this Agreement,
the Employee will: 
  

	 	(a)	diligently, honestly and faithfully serve the Company and will use all reasonable efforts to promote and advance the interests and goodwill of the Company; 

 

	 	(b)	conduct him/herself at all times in a manner which is not prejudicial to the Company’s interests and in adherence to the Code of Conduct in the Zymeworks Employee Handbook; 

 

	 	(c)	devote him/herself in a full-time capacity to the business and affairs of the Company; 

  

	 	(d)	adhere to all applicable policies of the Company as in effect and as amended from time to time; 

  

	 	(e)	exercise the degree, diligence and skill that a reasonably prudent Vice President, Preclinical Research & Development, would exercise in comparable circumstances; 

 

	 	(f)	refrain from engaging in any activity which will in any manner, directly or indirectly, compete with the trade or business of the Company except in accordance with Sections 2.4 and 2.6 herein and as outlined under
the Conflict of Interest guidelines in the Zymeworks Employee Handbook; and 

  

	 	(g)	not acquire, directly or indirectly, any interest that constitutes 5% or more of the voting rights attached to the outstanding shares of any corporation or 5% or more of the equity or assets in any firm, partnership or
association, the business and operations of which in any manner, directly or indirectly, compete with the trade or business of the Company. 

2.4 The Employee will disclose to Management all potential conflicts of interest and activities which could reasonably be seen to compete, indirectly or
directly, with the trade or business of the Company. Management will determine, in its sole discretion, whether the activity in question constitutes a conflict of interest or competition with the Company. To the extent that Management, acting
reasonably, determines a conflict of interest or competition exists, the Employee will discontinue such activity forthwith or within such longer period as Management agrees. The Employee will immediately certify in writing to the Company that he/she
has discontinued such activity and that he/she has, as required by Management, cancelled any contracts or sold or otherwise disposed of any interest or assets over the 5% 

  

			
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threshold described in Section 2.3(g) herein acquired by the Employee by virtue of engaging in the impugned activity, or where no market exists to enable such sale or disposition, by
transfer of the Employee’s beneficial interest into blind trust or other fiduciary arrangements over which the Employee has no control or direction, or other action that is acceptable to the Board. 

2.5 The Employee will not be employed by another company or provide consulting or other services to other companies or commercial entities while employed by
the Company, without the express written permission of the Company. By seeking and accepting employment with the Company, the Employee recognizes that they are employed by the Company for the expressed benefit of advancing the scientific,
development and business objectives of the Company and that concurrent employment outside the Company detracts from those objectives. 
 2.6 Notwithstanding
Sections 2.3, 2.4 and 6.2, the Employee is not restricted from nor is required to obtain the consent of the Company to make investments in any company which is involved in pharmaceuticals or biotechnology with securities listed for trading on
any Canadian or U.S. stock exchange, quotation system or the over-the-counter market. 
 2.7 For the purposes of Sections 2.3, 2.4 and 2.6 herein,
“Employee” includes any entity or company owned or controlled by the Employee. 
 ARTICLE 3 – COMPENSATION 

3.1 Base Salary. As compensation for all services rendered under this Agreement, the Company will pay to the Employee and the Employee will accept from
the Company a base salary of $170,000 (CAD) per annum. The base salary will be paid semi-monthly, in arrears, in twenty-four (24) equal instalments, less statutory and other authorized deductions. The Salary shall not be reduced, except with
the written consent of the Employee. 
  

	 	(a)	Incentive Compensation. Participation in incentive programs for the Company’s Managers, on the terms and conditions of such incentive programs as at the date hereof or as amended or implemented by the
Company and approved by the Board of Directors. 

 3.2 Stock Options. The Employee shall be granted 39,000 options to acquire shares of
common stock of the Company (the “Shares”), provided the Employee is employed by the Company on the grant date (the “Options”). The Options shall have an exercise price equivalent to the company’s common share price on the
day of granting. The Options will vest and become exercisable in accordance with the terms of the Company Employee Stock Option Agreement, a copy of which is attached hereto as Appendix “C”. 

3.3 Incentive Plans. The Employee shall be entitled to participate in any incentive programs for the Company’s Employees, including, without
limiting the generality of the 

  

			
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foregoing, share option plans, share purchase plans, profit-sharing or bonus plans (collectively, the “Incentive Plans”). Such participation shall be on the terms and conditions of such
Incentive Plans as at the date hereof or as may from time to time be amended or implemented by the Company in its sole discretion. 
 3.4 Performance and
Salary Review. Management will review the Employee’s performance, base salary, and equity participation level under the terms of any Incentive Plans annually beginning in December, 2012. The timing of performance and salary reviews as at
the date hereof or as may from time to time be amended by the Company in its sole discretion. 
 3.5 Expenses. The Company will reimburse the
Employee for all ordinary and necessary expenses incurred by the Employee in the performance of the Employee’s duties under this Agreement. Reimbursement of such expenses will be made in accordance with the Company’s policies. 

 

	 	(a)	Relocation Costs. The Company will reimburse the Employee to a maximum of $40,000 (CAD) for relocation costs, as follows: 

  

	 	(i)	$10,000 (CAD) paid within the first month of employment upon the submission of valid receipts. This relocation allowance includes no conditions of repayment to Zymeworks. 

 

	 	(ii)	$30,000 (CAD) paid upon the submission of valid receipts. This relocation allowance may be repayable to Zymeworks if your employment is terminated within a three-year basis, subject to amortization on a straight-line
basis. 

  

	 	(iii)	Suitable accommodation for your initial month in Vancouver to be secured by Zymeworks. 

 3.6 Professional
Fees. The Company will reimburse the Employee for annual registration and/or licensing fees required to maintain the Employee’s status as a member in good standing with the appropriate professional bodies required to continue effective
employment, and which were held by the Employee as of the effective date. The Company will reimburse reasonable costs incurred by the Employee to complete the minimum annual continuing professional development requirements required to maintain such
status. 
 3.7 Vacation. The Employee will be eligible for twenty (20) days’ paid vacation per calendar year, earned pro rata at a rate of
1.67 days per completed month of service. In accordance with the Company’s human resources policies, new employees are not permitted to take vacation during the initial six-month probationary period, without the express permission of
Management. Vacation time not taken during the year in which it is earned may not be carried forward into the subsequent year without the written pre-approval of Management. Unused vacation time will not be paid out at the end of the fiscal year.
Upon termination, vacation not taken in the calendar year will be paid out according to the Employee’s annual salary rate pro rated to the number of days’ vacation not taken. 

  

			
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 3.8 Benefits. The Employee will be eligible to participate in all benefit plans generally available to
Employees of the Company, subject to meeting applicable eligibility requirements of such plans. 
 3.9 Sick Leave. The Employee will be entitled to
take up to five (5) days paid sick leave per calendar year, earned pro rata at a rate of 0.42 days per completed month of service. Unused sick days will not be paid out or carried forward into the subsequent year. 

ARTICLE 4 – TERM AND TERMINATION 
 4.1
Term. This Agreement will commence on the Effective Date and will terminate on the effective date of termination by either the Employee or the Company in accordance with Section 4.2 of this Agreement. 

4.2 Termination. 
  

	 	(a)	The Company may terminate the employment of the Employee for cause at any time, without notice, damages or compensation of any kind. 

 

	 	(b)	Probation Period. The first three (3) consecutive months of the Employee’s employment under this Agreement are agreed to constitute a period of probation during which the Company shall
have the opportunity to assess the suitability of the Employee’s performance and conduct (the “Probation Period”). At any time during the Probation Period, the Company may terminate the Employee’s employment, on the grounds of
unsuitability, without providing any working notice or payment in lieu thereof. 

  

	 	(c)	The Company may terminate the employment of the Employee without cause at any time by providing written notice or payment in lieu of notice to the Employee as follows: 

 

	 	(i)	one (1) month of notice or the equivalent of one (1) month of base salary as at that date, or any combination thereof, if termination of employment occurs during the first year of employment; and

  

	 	(ii)	an additional one (1) month of notice or the equivalent of one (1) month of base salary as at that date, or any combination thereof, for each additional completed year of service, up to a total maximum of six
(6) months. 

  

			
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	 	(d)	Payment of severance in excess of any minimum required by the Employment Standards Act is conditional upon execution by the Employee of a release of all claims, satisfactory to the Company. 

 

	 	(e)	Payment of severance, in accordance with (c) above, to the Employee by the Company will be full and adequate compensation to the Employee with respect to any claim relating to the Employee’s employment or
termination or manner of termination of the Employee’s employment, and the Employee waives any right that he/she may have to claim further payment, compensation or damages from the Company. 

 

	 	(f)	The Employee may terminate his/her employment with the Company by giving prior written notice to Management of not less than thirty (30) days or such shorter period as the Employee and Management may agree. The
Company may choose to waive all or part of the notice period and pay to the Employee the base salary to be earned during the balance of the notice period. 

4.3 No Mitigation. The Employee shall not be required to mitigate the amount of any payments provided for in this section by seeking other employment
or otherwise, nor shall the amount of any payment provided for in this section be reduced by any compensation earned by the Employee as the result of employment by another employer after the date of termination, or otherwise. 

4.4 Survival. Upon a termination of this Agreement for any reason, the Employee will continue to be bound by the provisions of Article 4,
Article 5, Article 6, Article 7 and Article 8. 
 ARTICLE 5 – CONFIDENTIALITY 

5.1 Confidential Information. 
  

	 	(a)	Ownership of Confidential Information - The Employee acknowledges that the Confidential Information is and will be the sole and exclusive property of the Company. The Employee acknowledges that the Employee has
not, and will not, acquire any right, title or interest in or to any of the Confidential Information. 

  

	 	(b)	 Non Disclosure, Use and Reproduction of Confidential Information - The Employee will keep all the
Confidential Information strictly confidential, and will not, either directly or indirectly, either during or subsequent to employment with the Company, disclose, allow access to, transmit, transfer, use or reproduce any of the Confidential
Information in any manner except as required to perform the duties of the Employee for the Company and in accordance with all procedures established by the Company for the protection

  

			
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of the Confidential Information. Without limiting the foregoing, the Employee: 

  

	 	(i)	will ensure that all the Confidential Information and all copies thereof, are clearly marked, or otherwise identified as confidential to the Company and proprietary to the person or entity that first provided the
Confidential Information, and are stored in a secure place while in the Employee’s possession, custody, charge or control; 

  

	 	(ii)	will not, either directly or indirectly, disclose, allow access to, transmit or transfer any of the Confidential Information to any person other than to an employee, officer, or director of the Company but only upon a
“need to know” basis, without the prior written authorization of Management; and 

  

	 	(iii)	will not, except as required by the Employee’s position, use any of the Confidential Information to create, maintain or market any product or service which is competitive with any product or service produced,
marketed, licensed, sold or otherwise dealt in by the Company, or assist any other person to do so. 

  

	 	(c)	Legally Required Disclosure - Notwithstanding the foregoing, to the extent the Employee is required by law to disclose any Confidential Information, the Employee will be permitted to do so, provided that notice
of this requirement is delivered to the Company in a timely manner, so that the Company may contest such potential disclosure. 

  

	 	(d)	Return of Materials, Equipment and Confidential Information - Upon request by the Company, and in any event when the Employee leaves the employ of the Company, the Employee will immediately return to the Company
all the Confidential Information and all other materials, computer programs, documents, memoranda, notes, papers, reports, lists, manuals, specifications, designs, devices, drawings, notebooks, correspondence, equipment, keys, pass cards, and
property, and all copies thereof, in any medium, in the Employee’s possession, charge, control or custody, which are owned by, or relate in any way to the Business or affairs of the Company. 

 

	 	(e)	Exceptions - The non-disclosure obligations of Employee under this Agreement shall not apply to Confidential Information which the Employee can establish: 

 

	 	(i)	is, or becomes, readily available to the public other than through a breach of this Agreement; 

  

			
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	 	(ii)	is disclosed, lawfully and not in breach of any contractual or other legal obligation, to Employee by a third party; or 

  

	 	(iii)	through written records, was known to Employee, prior to the date of first disclosure of the Confidential Information to Employee by the Company 

5.2 Ownership of Developments 
  

	 	(a)	Acknowledgment of Company Ownership - The Employee acknowledges that the Company will be the exclusive owner of all the Developments made during the term of the Employee’s employment by the Company and to
all intellectual property rights in and to such Developments. The Employee hereby assigns all right, title and interest in and to such Developments and their associated intellectual property rights throughout the world and universe to the Company,
including without limitation, all trade secrets, patent rights, copyrights, mask works, industrial designs and any other intellectual property rights in and to each Development, effective at the time each is created. Further, the Employee
irrevocably waives all moral rights the Employee may have in such Developments. 

  

	 	(b)	Excluded Developments - The Company acknowledges that it will not own any Excluded Developments. 

  

	 	(c)	Disclosure of Developments - To avoid any disputes over the ownership of Developments, the Employee will provide the Company with a general written description of any of the Developments the Employee believes the
Company does not own because they are Excluded Developments. Thereafter, the Employee agrees to make full and prompt disclosure to the Company of all Developments, including, without limitation, Excluded Developments, made during the term of the
Employee’s employment with the Company. The Company will hold any information it receives regarding Excluded Developments in confidence. 

  

	 	(d)	Further Acts - The Employee agrees to cooperate fully with the Company both during and after the Employee’s employment by the Company, with respect to (i) signing further documents and doing such acts
and other things reasonably requested by the Company to confirm the Company’s ownership of the Developments other than Excluded Developments, the transfer of ownership of such Developments to the Company, and the waiver of the Employee’s
moral rights therein, and (ii) obtaining or enforcing patent, copyright, trade secret or other protection for such Developments; provided that the Company pays all the Employee’s expenses in doing so, and reasonable compensation if such
acts are required after the Employee leaves the employment by the Company. 

  

			
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	 	(e)	Employee-owned Inventions - The Employee hereby covenants and agrees with the Company that unless the Company agrees in writing otherwise, the Employee will only use or incorporate any Excluded Development into a
Development, if the Employee (i) owns all proprietary interest in such Excluded Development and (ii) grants to the Company, at no charge, a non-exclusive, irrevocable, perpetual, worldwide license to use, distribute, transmit, broadcast,
sub-license, produce, reproduce, perform, publish, practice, make, and modify such Development. 

  

	 	(f)	Prior Employer Information - The Employee hereby covenants and agrees with the Company that during the Employee’s employment by the Company, the Employee will not improperly use or disclose any confidential
or proprietary information of any former employer, partner, principal, co-venturer, customer, or independent contractor of the Employee and that the Employee will not bring onto the Company’s premises any unpublished documents or any property
belonging to any such persons or entities unless such persons or entities have given their consent. In addition, the Employee will not violate any non-disclosure or proprietary rights agreement the Employee has signed with any person or entity prior
to the Employee’s execution of this Agreement, or knowingly infringe the intellectual property rights of any third party while employed by the Company. 

  

	 	(g)	Protection of Computer Systems and Software - The Employee agrees to take all necessary precautions to protect the computer systems and software of the Company, including, without limitation, complying with the
obligations set out in the Company’s policies. 

 ARTICLE 6 – RESTRICTIVE COVENANTS 

6.1 Non-solicitation by the Employee. The Employee agrees that at any time, and from time to time, while employed by the Company and for a period of one
(1) year thereafter the Employee will not, without the prior written consent of the Company, either: 
  

	 	(a)	induce or attempt to influence, directly or indirectly, an employee of the Company to leave the employ of the Company; or 

  

	 	(b)	recruit, employ, or carry on Business with, directly or indirectly, an employee of the Company that has left the employ of the Company within the period of one (1) year preceding the time of such action.

 6.2 Non-competition. The Employee agrees that while employed by the Company and for a period of one (1) year thereafter, the
Employee will not, without the prior written consent of the Company, directly or indirectly, anywhere in Canada, the United States or any country within the European Union, provide any professional services to any person or entity

  

			
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that can be reasonably viewed as a competitor to the Business of the Company, while the Employee was employed by the Company, which relate to therapeutic antibody modeling, design, modification
and commercialization for industrial and pharmaceutical applications. 
 6.3 Reasonableness of Non-competition and Non-solicitation Obligations. The
Employee confirms that the obligations in Sections 6.1 and 6.2 are fair and reasonable given that, among other reasons: 
  

	 	(a)	the sustained contact the Employee will have with the clients of the Company will expose the Employee to the Confidential Information regarding the particular requirements of these clients and the Company’s unique
methods of satisfying the needs of these clients, all of which the Employee agrees not to act upon to the detriment of the Company; and/or 

  

	 	(b)	the Employee will be performing important development work on the products or services owned, developed or marketed by the Company; 

and the Employee agrees that the obligations in Sections 6.1 and 6.2, together with the Employee’s other obligations under this Agreement, are
reasonably necessary for the protection of the Company’s proprietary interests and that given the Employee’s general knowledge and experience they would not prevent the Employee from being gainfully employed if the employment relationship
between the Employee and the Company were to end. The Employee further confirms that the geographic scope of the obligation in Section 6.2 is reasonable given the nature of the market for the products and business of the Company. The Employee
also agrees that the obligations in Sections 6.1 and 6.2 are in addition to the confidentiality and non-disclosure obligations provided for in this Agreement and acknowledges that the Company would not have entered into this Agreement but for
the protections provided to the Company by all of the aforementioned obligations. 
 6.4 Conflict of Interest. The Employee recognizes that the
Employee is employed by the Company in a position of responsibility and trust and agrees that during the Employee’s employment with the Company, the Employee will not engage in any activity or otherwise put the Employee in a position which
conflicts with the Company’s interests. Without limiting this general statement, the Employee agrees that during the Employee’s employment with the Company, the Employee will not knowingly lend money to, guarantee the debts or obligations
of or permit the name of the Employee or any part thereof to be used or employed by any corporation or firm which directly or indirectly is engaged in or concerned with or interested in any Business in competition with the Business of the Company
unless the Employee receives prior written authorization from the Company. 

  

			
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 6.5 Acknowledgments. The Employee acknowledges that as of the date of this Agreement: 

 

	 	(a)	a breach of this Agreement would cause the Company irreparable harm and as a result the Employee consents to the issuance of an injunction or other appropriate remedy required to enforce the covenants contained herein;
and 

  

	 	(b)	in the event the Employee breaches any covenant contained herein, the one (1) year periods provided for in Sections 6.1 and 6.2 will be extended for a period of six (6) months from the date any such
breach is cured. In the event it is necessary for the Company to retain legal counsel to enforce any of the terms and conditions of this Agreement, the Employee will pay the Company’s reasonable legal fees, court costs and other related
expenses so long as the Company prevails in substantial and material part. In the event the Company is unsuccessful, the Company will pay the Employee’s reasonable legal fees, court costs and other related expenses. 

ARTICLE 7 – ENFORCEMENT 
 7.1 Application to
the British Columbia Supreme Court or the Federal Court of Canada. In the event of a breach or threatened breach by the Employee of any of the provisions of Article 5 or Article 6, the Company will be entitled to injunctive relief
restraining the Employee from breaching such provisions, as set forth in this Agreement. Nothing in this Agreement precludes the Company from obtaining, protecting or enforcing its intellectual property rights, or enforcing the Employee’s
fiduciary, non-competition, non-solicitation, confidentiality or any other post-employment obligations in a court of competent jurisdiction, or from pursuing any other remedy available to it for such breach or threatened breach, including the
recovery of damages from the Employee. 
 7.2 Severability and Limitation. All agreements and covenants contained herein are severable and, in the
event any of them will be held to be invalid by any competent court, this Agreement will be interpreted as if such invalid agreements or covenants were not contained herein. Should any court or other legally constituted authority determine that for
any such agreement or covenant to be effective that it must be modified to limit its duration or scope, the parties hereto will consider such agreement or covenant to be amended or modified with respect to duration and scope so as to comply with the
orders of any such court or other legally constituted authority or to be enforceable under the laws of the Province of British Columbia, and as to all other portions of such agreement or covenants they will remain in full force and effect as
originally written. 
 ARTICLE 8 – MEDIATION/ARBITRATION 

8.1 Mediation/Arbitration. In the event of a dispute hereunder which does not involve the Company seeking a court injunction or remedy pursuant to
Article 7, such dispute shall be mediated and, if necessary, arbitrated pursuant to the terms of this Article (the “Med/Arb Agreement”). 

  

			
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 8.2 The parties will work in good faith and in confidence to resolve any disputes that arise in connection
with this Agreement. The parties agree to conduct in good faith at least two meetings (the “Meetings”) to seek resolution to a dispute before delivering a notice to mediate. 

8.3 Where a dispute arises out of or in connection with this Agreement that cannot be resolved by the parties through the Meetings, the parties agree to seek
a confidential settlement of such dispute by mediation followed, if necessary, by arbitration. 
 8.4 At any time after a dispute has been raised and no
resolution has been achieved through the Meetings, either party may give written notice to the other party requesting mediation of the dispute (the “Mediation Notice”) by a single mediator. If the parties cannot agree on a mediator within
fourteen (14) days after delivery of the Mediation Notice, then either party may make application to the British Columbia Mediator Roster Society to appoint one. The mediation will be held in Vancouver, British Columbia and the costs of
mediation will be shared equally between the parties. 
 8.5 If the parties are unable to reach a mediated settlement within 120 days after delivery of the
Mediation Notice, either of the parties may submit the dispute to binding arbitration by giving written notice to the other party and the mediator requesting arbitration of the dispute (the “Arbitration Notice”) by a single arbitrator (the
“Arbitrator”). Within fourteen (14) days of the delivery of the Arbitration Notice, the parties will select the Arbitrator. In the event the parties do not agree on an arbitrator, either party may apply to the BC Supreme Court to have
one appointed. With input from the parties, the Arbitrator will determine and notify the parties of the rules of and timetable for arbitration. The Arbitrator will hear the submissions of the parties in accordance with such procedures as he or she
may establish, and shall use reasonable best efforts to render a decision within sixty (60) days after the date of receiving or hearing the parties’ final submissions. The decision of the Arbitrator shall be final and binding on the
parties involved in the dispute and shall not be subject to appeal. The arbitration will be held in Vancouver, British Columbia, and the costs of arbitration will be shared equally between the parties. 

8.6 Nothing in this Med/Arb Agreement precludes the Company from obtaining, protecting or enforcing its intellectual property rights, or enforcing the
Employee’s fiduciary, non-competition, non-solicitation, confidentiality or any other post-employment obligations in a court of competent jurisdiction, or from pursuing any other remedy available to it for such breach or threatened breach,
including the recovery of damages from the Employee. 
 ARTICLE 9 – GENERAL 

9.1 Notices. Any notices to be given hereunder by either party to the other party may be effected in writing, either by personal delivery or by mail if
sent certified, postage prepaid, with return receipt requested. Mailed notices will be addressed to the parties at the address set out on the first page of this Agreement, or as otherwise specified from time to time. Notice will be effective upon
delivery. 

  

			
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 9.2 Independent Legal Advice. The Employee specifically confirms that he/she has been advised to
retain his/her own independent legal advice prior to entering into this Agreement. 
 9.3 Construction. The parties acknowledge that each party and
its respective counsel have had the opportunity to independently review and negotiate the terms and conditions of this Agreement, and that the normal rule of construction to the effect that any ambiguities are to be construed against the drafting
party will not be employed in the interpretation of this Agreement or any exhibits or amendments hereto. 
 9.4 Assignment. The Employee cannot
assign his/her interest in this Agreement. 
 9.5 Benefit of Agreement. This Agreement will ensure to the benefit of and be binding upon the
respective heirs, executors, administrators, successors and permitted assigns of the parties hereto. 
 9.6 Entire Agreement. The Appendices to this
Agreement, together with the terms and conditions contained within this Agreement constitute the entire agreement between the parties hereto with respect to the subject matter hereof and cancels and supersedes any prior employment agreements,
understandings and arrangements between the parties hereto with respect thereto. There are no representations, warranties, terms, conditions, undertakings or collateral agreements, express, implied or statutory, between the parties other than as
expressly set forth in this Agreement. 
 9.7 Amendments and Waivers. No amendment to this Agreement will be valid or binding unless set forth in
writing and duly executed by all of the parties hereto. No waiver of any breach of any provision of this Agreement will be effective or binding unless made in writing and signed by the party purporting to give the same and, unless otherwise provided
in the written waiver, will be limited to the specific breach waived. 
 9.8 Governing Law. This Agreement will be governed by and construed,
enforced and interpreted exclusively in accordance with the laws of the Province of British Columbia and the applicable laws of Canada therein. 

  

			
	Zymeworks - Private & Confidential	  	Page 15 - 19

 

 
  

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

ZYMEWORKS, INC. 
  

			
	By:	 	 /s/ David Tucker

		 	David Tucker, Chief Operating Officer

  

					
	 SIGNED, SEALED AND DELIVERED by EMPLOYEE in the presence of:

 
 /s/ Donna Cole

Signature
  
	  	 )
  

)
  

)
  

)
  

)
  

)
  
	 	 /s/ Gordon Ng

EMPLOYEE

	  	 
	  	 
	 Donna Cole

Print Name
	  	 )
  

)
  
	 
		  	 )
  
	 
	 540-1385. W. 8th Ave, Van, BC

Address
	  	 )
  

)
  
	 	
		  	 )
  
	 	
	 HR Manager

Occupation
	  	 )
  

)
  
	 	

  

			
	Zymeworks - Private & Confidential	  	Page 16 - 19

 

 
  

 APPENDIX A 

JOB DESCRIPTION: Vice President, Preclinical Research & Development 

Summary 
  

	 	•	 	Experimental assay design & execution in collaboration with project scientists and CROs 

  

	 	•	 	Experimental data analysis & presentation 

  

	 	•	 	Management of experimental projects and CROs – prioritizing, budgeting, scheduling, monitoring 

  

	 	•	 	Sourcing, evaluating, and selecting CROs 

  

	 	•	 	Designing, sourcing, evaluating, and selecting Zymeworks’ laboratory facilities & equipment 

  

	 	•	 	Recruitment and management of laboratory personnel 

  

	 	•	 	Attending conferences in the related field 

  

	 	•	 	Participating in activities related to the Scientific Advisory Board 

  

	 	•	 	Working with partners and potential partners to develop partnered research plans and responsibilities 

  

	 	•	 	Providing input on pre-clinical opportunities that align with the strengths of Zymeworks’ protein-engineering capabilities 

  

	 	•	 	Providing input into the evaluation and selection of lead biologics candidates 

  

	 	•	 	Other related duties as required 

 Reporting Responsibilities 

Reports directly to Dr. Ali Tehrani, President & Chief Executive Officer. 

  

			
	Zymeworks - Private & Confidential	  	Page 17 - 19

 

 
  

 APPENDIX B 

EMPLOYEE HANDBOOK 

  

			
	Zymeworks - Private & Confidential	  	Page 18 - 19

 

 
  

 APPENDIX C 

EMPLOYEE STOCK OPTION AGREEMENT 

  

			
	Zymeworks - Private & Confidential	  	Page 19 - 19EX-10.12

 Exhibit 10.12 
  

 
 SEPARATION AGREEMENT AND RELEASE 

THIS AGREEMENT made on the 17th day of November, 2016 

BETWEEN: 
 ZYMEWORKS INC. 

(the “Company”) 

AND: 
 Dr. Gordon Ng

 (“Gordon”) 
 WHEREAS:

  

	A.	The Company employed Gordon pursuant to the terms of a written employment agreement dated January 1, 2012 (the “Employment Agreement”). 

 

	B.	The Company and the Employee have mutually agreed to terminate the employment relationship in accordance with the terms and conditions contained herein. 

 

	C.	The Board of Directors of the Company has considered that it is in the best interests of the Company to enter into this Agreement on the terms and conditions set forth below. 

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the mutual covenants, representations and warranties contained herein, the parties
hereto hereby agree as follows: 
  

	1.	Termination of Employment. The parties acknowledge and agree that effective November 17, 2016 (the “Effective Date”) Gordon’s employment with the Company and the Employment Agreement
are terminated without cause. 

  

	2.	Accrued Vacation and Final Wages. Gordon’s final wages and accrued vacation pay as of the Effective Date will be paid out to Gordon as soon as possible as part of the next payroll following the execution of
this Agreement. 

  

	3.	 Salary and Benefits Continuance. Subject to section 9 of this Agreement, the Company will continue
Gordon’s base salary and regular group benefits (excluding Life, Accidental Death and Dismemberment, Critical Illness and Long Term disability coverage which will terminate on the Effective Date) for a period of 14 months from the Effective
Date until January 17, 2018 (the “Compensation  

  
 Zymeworks
Inc.    540-1385 West 8th Ave, Vancouver, BC, Canada, V6H 3V9    www.zymeworks.com 

Page 1 of 6 

 

 
  

	 	 
Continuance Period”). If Gordon obtains new employment during the Compensation Continuance Period, Gordon will advise the Company immediately as to his start date and whether he will
be receiving replacement group benefits pursuant as part of such new employment. To the extent Gordon has such replacement coverage all group benefits continued pursuant to this section will cease effective the date the replacement coverage
commences. 

  

	4.	Variable Incentive. The Company agrees to pay Gordon the year-end bonus (the “Variable Incentive”) that Gordon would have received for the year ending December 31, 2016. The magnitude and timing of
the Variable Incentive payment will be in the same manner as to all other executive officers at Zymeworks at the discretion of the compensation committee of the Company’s Board of Directors (the “Compensation Committee”).

  

	5.	Stock Options. Amendment to Gordon’s stock option vesting and exercise schedule have been agreed between the parties (and form part of this agreement) and are set out in a separate letter entitled
‘Status of Stock Awards’ dated November 10, 2016. 

  

	6.	No Other Payments; Other Benefits and Perquisites. Gordon acknowledges and agrees that except as provided for this Agreement, the Company has no further obligations to provide any other payments or benefits to
Gordon pursuant to the Employment Agreement or otherwise and all other benefits, perquisites or entitlements to compensation of any kind provided to Gordon during his employment shall terminate as of the Effective Date. 

 

	7.	Resignations. Gordon agrees to provide such written resignations as the Company deems necessary to revoke any authority Gordon had during his employment including, as applicable, as an officer of the Company or
any of its affiliates or subsidiaries. 

  

	8.	Return of Company Property. Gordon agrees to return all property owned by the Company including computer equipment, any documents, passwords or records Gordon has in his possession, with the exception of his
MacBook and Nexus phone, or control relating to the Company’s business within 5 business days of execution of this Agreement. 

  

	9.	 Ongoing Obligations and Forfeiture of Payments. Gordon acknowledges and agrees that he continues to owe
duties pursuant to the terms of the Employment Agreement as stated in Article 5 and Article 6 of the Employment Agreement. In the event Gordon may be in breach of any of the provisions of Articles 5 and 6, Gordon agrees that the Employer, subject
only to the Company’s obligations pursuant to the Employment Standards Act (British Columbia) if found to be 

  
 Zymeworks
Inc.    540-1385 West 8th Ave, Vancouver, BC, Canada, V6H 3V9    www.zymeworks.com 

Page 2 of 6 

 

 
  

	 	 
applicable to Gordon, may suspend its obligations to the Employee under section 3 herein and Gordon forfeits his right to receive further amounts under section 3, such amounts to be set off
against the Company’s damages for the Employee’s breach of any of the provisions of Article 5 and Article 6. For the purposes of compliance with Article 5 and Article 6 of the Employment Agreement, the Company acknowledges and agrees that
any employment with Newco will not constitute a violation of the Employment Agreement or trigger the forfeiture provisions of this section 9. 

  

	10.	Dispute Resolution. The parties hereby agree and acknowledge that the dispute resolution protocol stated in Article 8 of the Employment Agreement will apply to any dispute arising from this Agreement.

  

	11.	Release of Claims by Gordon. Gordon, on his own behalf and on behalf of his legal representatives, administrators, executors, heirs, successors and assigns, hereby releases and forever discharges the Company, the
Company’s applicable subsidiaries and affiliated entities and all of their respective officers, directors, shareholders, employees, agents, predecessors, successors, administrators, executors, heirs and assigns (collectively, the
“Releasees”) of and from any and all actions, causes of action, suits, debts, dues, accounts, costs, legal costs, contracts, claims and demands of every nature or kind, statutory or otherwise, including any claims made, pursuant to
the Employment Standards Act (British Columbia) and the Human Rights Code (British Columbia) or any comparable provincial, federal or state laws that may apply to Gordon, which now or at any time hereafter can, shall or may have in any
way arising or resulting from any cause, matter, or anything whatsoever, whether known or unknown, suspected or unsuspected existing as to the present time that Gordon can, shall or may have against the Releasees, including, without restricting the
generality of the foregoing but for greater certainty, any claims that are based on, relate to, or arise in connection with: 

  

	(a)	the employment of Gordon by the Company; 

  

	(b)	the termination of that employment and the Employment Agreement howsoever arising, including without limitation, any rights to compensation arising for notice, severance pay or pay in lieu of notice of termination,
constructive dismissal, wrongful dismissal or vacation pay or other accrued amounts; 

  

	(c)	any entitlement Gordon may have to bonuses, stock options, or other incentive or equity compensation made available to Gordon during his employment; 

 

	(d)	any loss of office; and 

  

	(e)	the termination of any other of Gordon’s allowances, perquisites or benefits including termination of Gordon’s participation the Company’s long term disability or other insurance plans. 

  
 Zymeworks
Inc.    540-1385 West 8th Ave, Vancouver, BC, Canada, V6H 3V9    www.zymeworks.com 

Page 3 of 6 

 

 
  

	12.	Covenant not to Sue; Estoppel. Gordon agrees not to make any claim or demand, or commence, maintain or prosecute any action, cause or proceeding for damages, compensation, loss or any relief against any party
released herein in respect of any cause, matter or thing arising out of, or relating to the matters released herein or against any other person who might claim contribution or indemnity from any of the Releasees. Gordon further acknowledges and
agrees that this Agreement shall operate conclusively as an estoppel in the event of any such claim, action or proceeding and may be pleaded accordingly. 

  

	13.	Confidentiality. The Company and Gordon agree to keep the terms of this Agreement confidential and will not, except as may be required by law, reveal the terms of this Agreement to any third parties except to
their respective legal or financial advisors, or, in the case of the Company, applicable human resources and and financial employees charged with executing the terms of this agreement and, in the case of Gordon, his spouse, provided each of the
Company and Gordon take reasonable steps to prevent such third parties from revealing any information pertaining to the terms of this Agreement. 

  

	14.	Non-Disparagement. The Company and Gordon shall not in any way disparage each other or, in the case of Gordon, any of the Releasees or make or solicit for the media or any others any comments, statements or the
like that may be considered to be harmful or derogatory or detrimental to the good name or business reputation or standing in the business community of, as applicable, the Company, the Releasees or Gordon. 

 

	15.	Tax Indemnity. Gordon acknowledges and agrees that the Company shall withhold and remit statutory deductions on amounts payable to Gordon under this Agreement. Gordon agrees to indemnify and hold harmless the
Company and its directors and officers from any and all liability for tax, penalties, interest or any other amount of any kind whatsoever arising under one or more of the Income Tax Act (Canada), the Employment Insurance Act (Canada),
the Canada Pension Plan Act, the Income Tax Act (BC), or any other similar statute of Canada or a province or territory thereof, that arises out of or with respect to any payments made to Gordon pursuant to this Agreement.

  

	16.	Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the province of British Columbia and the federal laws of Canada applicable therein, which shall be deemed to be the
proper law hereof. 

  

	17.	 Severability. If any provision of this Agreement for any reason is declared invalid, such declaration
shall not affect the validity of any remaining portion of the Agreement, which remaining portion shall remain in full force and effect as if this Agreement had been executed with the invalid portion thereof eliminated and

  
 Zymeworks
Inc.    540-1385 West 8th Ave, Vancouver, BC, Canada, V6H 3V9    www.zymeworks.com 

Page 4 of 6 

 

 
  

	 	 
it is hereby declared the intention of the parties that they would have executed the remaining portions of this Agreement without including therein any such part, parts or portion which may, for
any reason, be hereafter declared invalid. 

  

	18.	Amendments and Waivers. This Agreement may not be amended or waived except in a writing signed by each party. No failure or delay by any party in exercising any right, power or privilege in this Agreement shall
operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise or the exercise of any other right, power or privilege. 

 

	19.	Successors; Binding Agreement. This Agreement shall be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors, assigns, legal representatives, executors,
administrators and heirs. 

  

	20.	No Admission. Nothing in this Agreement is intended to be, or shall be construed as, an admission by the Company or Gordon that it violated any law, interfered with any right, breached any obligation or otherwise
engaged in any improper or illegal conduct. 

  

	21.	Independent Legal Advice. Gordon acknowledges that he has read and understands the terms of this Agreement and that he has received independent legal advice concerning the interpretation and effect of this
Agreement prior to its execution. 

  

	22.	Counterparts. This Agreement may be executed and delivered (including by facsimile or other electronic transmission) in counterparts, each of which shall be deemed an original and both of which together shall
constitute one and the same instrument. 

  

	23.	Entire Agreement. This Agreement constitutes the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes and preempts any and all prior and/or
contemporaneous agreements and understandings, oral or written, between the parties with respect to Gordon’s employment by the Company and the termination of that employment. 

[Execution page follows.] 

  
 Zymeworks
Inc.    540-1385 West 8th Ave, Vancouver, BC, Canada, V6H 3V9    www.zymeworks.com 

Page 5 of 6 

 

 
  

 IN WITNESS WHEREOF, the parties have duly executed and delivered this Agreement and Release as of the
Effective Date. 
  

							
		  		 	ZYMEWORKS INC.
				
		  		 	By:	 	 /s/ Ali Tehrani

		  		 		 	Authorized Signatory
				
	SIGNED, SEALED AND DELIVERED in the presence of:	  	 )

)
 )

)
 )

)
 )
	 		 	
	 /s/ Wajida Leclerc
	  	 		 	
	Witness	  	 	
		  	 	 /s/ Gordon Ng

	 Wajida Leclerc
	  	)	 	Dr. Gordon Ng
	Name	  	)	 		 	
		  	)	 		 	
	 38-19th Avenue East
	  	)	 		 	
	Address	  	)	 		 	

  
 Zymeworks
Inc.    540-1385 West 8th Ave, Vancouver, BC, Canada, V6H 3V9    www.zymeworks.com 

Page 6 of 6

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