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Exhibit 10.21
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED.

AMENDMENT NO. 1
TO EXCLUSIVE START-UP LICENSE AGREEMENT
This Amendment No. 1 to the Exclusive Start-Up License Agreement (this “Amendment No. 1”) effective as of July 24, 2020 (the “Amendment No. 1 Effective Date”), is entered into between the University of Washington (“University”), and Neoleukin Corporation, formerly known as Neoleukin Therapeutics, Inc. (“Company”).
WHEREAS, the Parties previously entered into that certain Exclusive Start-Up License Agreement dated as of July 8, 2019 (the “Agreement”);
WHEREAS, the Parties wish to amend the Agreement in certain respects on the terms and conditions set forth herein.
NOW THEREFORE, capitalized terms not defined in this Amendment No. 1 shall have the meaning ascribed in the Agreement, and the Parties hereby agree as follows:
1.Background.  [***].  The Parties desire to add the Jointly Owned Licensed Patents (as defined herein below) within the scope of the licenses granted to Company under the Agreement.
2.Amendment. 
a.Section 1 of the Agreement is hereby amended to add the following new definitions:
“Jointly Owned Application” has the meaning set forth in Amendment No. 1 to this Agreement.
“Jointly Owned Licensed Patents” means (a) the Jointly Owned Application, (b) all patent cooperation treaty (PCT) applications, non-provisional applications, divisions, continuations, and claims in continuationsinpart that are entitled to claim priority to, or that share a common priority claim with, and are directed to subject matter specifically described in the Jointly Owned Application; (c) any patents that issue from patent applications in clauses (a) and (b), (d) extensions, renewals, substitutes, re-examinations and re-issues of any of the items in (a) or (b) or (c); and (e)foreign counterparts of any of the items in (a), (b), (c) or (d) 

wherever and whenever filed.  For the avoidance of doubt, Jointly Owned Licensed Patents is/are a Licensed Patents for all purposes in the Agreement, except where Jointly Owned Licensed Patents are specifically called out in the Agreement.

“Jointly Owned Licensed Product” means any method, process, composition, product, service, or component part thereof that (a) would, but for the granting of the rights set forth in this Agreement, infringe a Valid Claim contained in the Jointly Owned Licensed Patents. For the avoidance of doubt, Jointly Owned Licensed Product is a Licensed Product for all purposes in the Agreement, except where Jointly Owned Licensed Product is specifically called out in the Agreement.
b.Section 2.3 of the Agreement is hereby amended by adding the following new sentences to the end of Section 2.3.  “Notwithstanding the foregoing, if a Sublicense is only for the Jointly Owned Licensed Patents (and not any other Licensed Patents), then the foregoing requirement to include obligations, terms and conditions in favor of HHMI shall not apply. During the term of this Agreement and for so long as Company has an exclusive license to University’s rights in the Jointly Owned Licensed Patents pursuant to this Agreement, Company shall not license its own rights in Jointly Owned Licensed Patents separate from University’s rights in Jointly Owned Licensed Patents.”
c.Section 2.5 of the Agreement is hereby amended by adding the following new sentence to the end of Section 2.5:  “The foregoing rights of the federal government of the United States of America do not apply to the Jointly Owned Licensed Patents as no federal funding was used in the generation of the inventions claimed in the Jointly Owned Application.”
d.Section 2.6 of the Agreement is hereby amended and restated in its entirety as follows:  
2.6        Rights to Subsidiaries of Company. Company may extend rights granted to Company under this Agreement to any entities that control Company (which, as of the Amendment No. 1 Effective date includes Neoleukin Therapeutics, Inc.) or are under common control with Company including wholly owned subsidiaries (collectively “Subsidiaries”) of Company, provided that (a) Company is responsible for all acts of such Subsidiaries as if they were acts of Company, (b) such Subsidiary is bound to perform all obligations to University and HHMI of this Agreement, other than making payments pursuant to Article 6 “Payments, Reimbursements, Reports, and Records”, as if such Subsidiary were Company, and (c) Company reports to University pursuant to Section 13.10 “Notices” that such Subsidiary will be exercising rights under this Agreement prior to such Subsidiary exercising any such rights under this Agreement, provided that no notice is necessary if the Subsidiary is Neoleukin Therapeutics, Inc. For avoidance of doubt, Company may perform any obligation of Subsidiary on Subsidiary’s behalf. For 

purposes of this Section 2.6 only, “control” of another person, organization or entity shall mean the ability, directly or indirectly, to direct the activities of the relevant entity, and shall include, without limitation (i) ownership or direct control of fifty percent (50%) or more of the outstanding voting stock or other ownership interest of the other organization or entity, or (ii) possession of, or the power to elect or appoint fifty percent (50%) or more of the members of the governing body of the organization or other entity.
e.Section 2.7 of the Agreement is hereby amended by adding the following new sentence to the end of Section 2.7:  “The Parties acknowledge that the Jointly Owned Licensed Patents were not developed (in whole or in part) by employees of HHMI and therefore the license granted to Company to the Jointly Owned Licensed Patents, by inclusion under section 2.1 of this Agreement, is not subject to the HHMI License.”
f.Section 4.1 of the Agreement is hereby amended and restated in its entirety as follows:
4.1    Pre-Agreement Patent Filings.  With respect to the Licensed Patents, other than the Jointly Owned Application, Company has reviewed such Licensed Patents and as of the Effective Date is not aware of any basis to challenge or dispute the inventorship, validity, or enforceability of any of the claims made in such Licensed Patents.  With respect to the Jointly Owned Application, each Party has reviewed the Jointly Owned Application and as of the Amendment No. 1 Effective Date is not aware of any basis to challenge or dispute the inventorship, validity, or enforceability of any of the claims made in the Jointly Owned Application.
g.Section 4 of the Agreement is hereby amended by adding the following new Section 4.4 immediately following the end of Section 4.3:
4.4    Patent Prosecution for Jointly Owned Application.  The rights and obligations set forth in Sections 4.2 and 4.3 above shall apply to Licensed Patents other than the Jointly Owned Licensed Patents.  University and Company will consult on the preparation, filing and prosecution of the Jointly Owned Licensed Patents, provided that Company will have the first right to file, prosecute, and maintain, as applicable, at Company’s sole expense, the Jointly Owned Licensed Patents.  Company may thereafter abandon or allow to lapse any or all patents or patent applications resulting from the Jointly Owned Licensed Patents, provided that Company will notify University of any abandoned or lapsed patents at least [***] days prior to such abandonment or lapse and University will have the right, at University’s sole expense, to control the prosecution and maintenance of such patents. 
h.Section 5.2 of the Agreement is hereby amended by adding the following new sentence to the end of Section 5.2.  “The Parties acknowledge that the performance category for the Jointly Owned Licensed Products that were added as Section A2.4 

pursuant to Amendment No. 1 to this Agreement shall be treated as a separate performance category for the above referenced renegotiation and termination procedures; provided that the payment for the Performance Milestone Extension with respect to such performance category shall be [***].” 
i.Section 9.6 of the Agreement is hereby amended by adding the following new sentence to the end of Section 9.6.  “Notwithstanding the foregoing, but Subject to Section 9.8, upon termination of this Agreement, any Sublicense to the extent granting rights to the Jointly Owned Licensed Patents will not automatically terminate in total, as rights granted by Company to Company’s rights in the Jointly Owned Licensed Patents would remain, but rights granted by Company to University’s rights in the Jointly Owned License Patents would automatically terminate unless converted into a direct license with University pursuant to Section 9.8.”
j.Section 9.8 of the Agreement is hereby amended by adding the following new sentence to the end of Section 9.8.  “With respect to the Jointly Owned Licensed Patents, the procedures and obligations set forth in this Section 9.8 shall only apply to the University’s ownership interest in the Jointly Owned Licensed Patents.”
k.Section 13.2 of the Agreement is hereby amended and restated in its entirety as follows:
13.2    Assignment. The rights and licenses granted by University in this Agreement are personal to Company and Company will not assign its interest or delegate its duties under this Agreement without the written consent of University, which consent will not to be unreasonably withheld or delayed; any such assignment or delegation made without written consent of University will not release Company from its obligations under this Agreement. Notwithstanding the foregoing, Company, without the prior approval of University, may assign all, but no less than all, of its rights and delegate all, but no less than all, of its duties under this Agreement to a Third Party provided that: (a) the assignment is made to such Third Party as a part of and in connection with an Acquisition, (b) Company obtains from such Third Party written agreement to honor all obligations under this Agreement accrued by Company before Acquisition and all obligations under this Agreement to accrue by such Third Party assignee after Acquisition, and (c) Company provides written notice to University of the Acquisition, together with a substitution of parties document or copy of the assignment confirming compliance with (b) above, no later than [***] days after the close of the Acquisition. Additionally, notwithstanding the foregoing, Company may assign all of its interest and delegate its duties under this Agreement, as amended by Amendment No. 1, to Neoleukin Therapeutics, Inc. (“Parent Co.”), whether by written agreement or by operation of law, in connection with a merger of Company with and into Parent Co. (the “Merger”). For the avoidance of doubt, following the consummation of the Merger, Parent Co. 

will enjoy the same rights and will remain subject to the same obligations that Company enjoyed and was subject to pursuant to the Agreement, as amended by Amendment No. 1. Any assignment made in violation of this Section 13.2 “Assignment” is void and will constitute an act of breach that requires remedy under Section 9.2 “Termination by University”. This Agreement will inure to the benefit of Company and University and their respective permitted assignees and trustees.
l.Exhibit A1.1 is hereby amended to add the following patent application to the end of the list of Licensed Patents:
															
	UW Ref No.	Patent No.	Filing Date	Type	Status
	[***]	[***]	[***]	[***]	[***]

m.Exhibit A2 is hereby amended to add the following performance milestones for the Jointly Owned Licensed Products:
						
	A2.4	Performance Milestones for Jointly Owned Licensed Products
	A2.4.1 
Performance Milestone 1
	[***]
	A2.4.2
Performance Milestone 2
	[***]
	A2.4.3
Performance Milestone 3
	[***]
	A2.4.4
Performance Milestone 4
	[***]
	A2.4.5
Performance Milestone 5
	[***]
	A2.4.6
Performance Milestone 6
	[***]
	A2.4.7
Performance Milestone 7
	[***]

n.Exhibit A3.2 of the Agreement is hereby amended and restated in its entirety as follows:
A3.2    Running Royalty Payments.  Company will pay to University within [***] days after the last day of each calendar quarter during the term of this Agreement an amount equal to (a) with respect to Licensed Products other than the Jointly Owned Licensed Product [***] of Net Sales of such Licensed Products during such quarter as a running royalty payment, and (b) with respect to the Jointly Owned Licensed Product [***] of Net Sales of the Jointly Owned Licensed Products during such quarter as a running royalty payment.  On a country-by-

country basis, and a Licensed Product-by-Licensed Product basis, if in a country there is no Valid Claim that covers the Licensed Product, then the foregoing royalty rate shall be reduced by [***] with respect to Net Sales of such Licensed Product in such country.
o.Exhibit A3.2 of the Agreement is hereby amended and restated in its entirety as follows:
A3.2.1    Third Party Royalties.  If Company or its Sublicensees are required to pay royalties to a Third Party based on Company’s or such Sublicensee’s manufacture, use, offer for sale, sale or import of Licensed Product subject to one or more patents of such Third Party that create a total royalty burden for the Licensed Product of greater than (a) with respect to Licensed Products other than the Jointly Owned Licensed Product [***] (such figure including the above running royalty to University) or (b) with respect to the Jointly Owned Licensed Products [***] (such figure including the above running royalty to University), then in each case the royalty Company pays to University may be reduced by the lesser of (i) [***] of the royalty otherwise due to the University absent of a Third Party royalty reduction, (ii) [***] of the royalty actually paid to the Third Party, or (iii) the percent Company may reduce such Third Party royalty by based on a royalty stacking provision for the same product. To qualify for this reduction the Third Party patent must be required for the manufacture, use, offer for sale, sale or import of the Licensed Product.
p.Exhibit A3.4 of the Agreement is hereby amended by adding the following at the end of Exhibit A3.4:
The foregoing milestones shall not apply to the Jointly Owned Licensed Product, and Company will pay to University the following non-cumulative, non-creditable, and non-refundable milestone achievement payments within [***] days of achieving the corresponding milestone, whether achieved by Company or a Sublicensee, for the first Jointly Owned Licensed Product:

						
		Milestone
	$[***]
	Performance Milestone 4 in A.2.4.4
	$[***]
	Performance Milestone 5 in A.2.4.5
	$[***]
	Performance Milestone 6 in in A.2.4.6
	$[***]
	Cumulative Net Sales of $[***]

	$[***]
	Cumulative Net Sales of $[***]

q.Exhibit A3.5 of the Agreement is hereby amended by striking the last sentence of Section A3.5.1 and adding the following at the end of Exhibit A3.5:

A3.5.2  The Parties agree, that as of the Amendment No. 1 Effective Date, Company has met all of its obligations with respect to Section A3.5.1 and all obligations of Company and rights of University and/or its Assignee as set forth in Section A3.5.1 are hereby terminated and shall have no further force or effect.
r.Exhibit A3.6 of the Agreement is hereby amended by adding the following at the end of Exhibit A3.6:
The foregoing sublicense consideration percentages shall not apply to a Sublicense solely for the Jointly Owned Licensed Patents (i.e., does not include rights granted to any other Licensed Patents), and the following sublicense consideration percentages will apply to a Sublicense solely for the Jointly Owned Licensed Patents (i.e., does not include rights granted to any other Licensed Patents):

									
		Milestone Has Been Achieved at the Date of Execution of the Sublicense	Sublicense Consideration Percentage

									
	A3.6.8	No Milestone achieved	[***]%

	A3.6.9	Performance Milestone 1 in A2.4.1	[***]% 

	A3.6.10	Production Methods of GLP material established for Jointly Owned Licensed Product	[***]%

	A 3.6.11	Performance Milestone 2 in A2.4.2	[***]%

	A 3.6.12	Performance Milestone 3 in A2.4.3	[***]%

	A3.6.13	Performance Milestone 4 in A2.4.4	[***]%

	A3.6.14	Performance Milestone 5 in A2.4.5	[***]% 

	A3.6.15	Performance Milestone 6 in A2.4.6 or initiation of a registrational Phase 2 study	[***]%

	A3.6.16	Performance Milestone 7 in A2.4.7	[***]%

3.Miscellaneous.  This Amendment No. 1 shall be effective for all purposes as of the Amendment No. 1 Effective Date.  Except as expressly modified herein, the Agreement shall continue to remain in full force and effect in accordance with its terms.  This Amendment No. 1 may be executed in counterparts, each of which shall be deemed to be an original and together shall be deemed to be one and the same document.

IN WITNESS WHEREOF, the Parties have caused this Amendment No. 1 to be executed by their respective duly authorized representatives effective as of the Amendment No. 1 Effective Date.

University of Washington                

By:  /s/ Dennis Hanson             

Name:  Dennis Hanson        

Title:  Associate Director, Innovation Development    

Neoleukin Corporation                

By:  /s/ Jonathan Drachman             

Name:  Jonathan Drachman        

Title:  Chief Executive OfficerDocument

  Exhibit 10.22

EXECUTIVE EMPLOYMENT AGREEMENT

This Executive Employment Agreement (the “Agreement”), made between Neoleukin Therapeutics, Inc., a Delaware corporation (the “Company”), and Holly Vance (the “Executive” and, collectively with the Company, the “Parties”), is entered into as of September 29, 2020, to be effective as of the Effective Date (as defined below).

Whereas, the Company desires for Executive to provide services to the Company and wishes to provide Executive with certain compensation and benefits in return for such employment services; and

Whereas, Executive wishes to be employed by the Company and to provide personal services to the Company in return for certain compensation and benefits.

Now, Therefore, in consideration of the mutual promises and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:

1.    Employment by the Company.

1.1    Employment. This Agreement shall govern the terms of Executive’s employment with the Company, effective as of the commencement of Executive’s employment with the Company, which shall occur on October 19, 2020 (the “Effective Date”).

1.2    Position. Executive shall serve as the Company’s General Counsel. During the term of Executive’s employment with the Company, Executive will devote Executive’s best efforts and substantially all of Executive’s business time and attention to the business of the Company.

1.3    Duties and Location. Executive shall perform such duties as are typically performed by a General Counsel. Executive will report to the Company’s Chief Executive Officer. Executive’s primary office location shall be the Company’s office located in Seattle, Washington.

1.4    Policies and Procedures. The employment relationship between the Parties shall be governed by the general employment policies and practices of the Company, except that when the terms of this Agreement differ from or are in conflict with the Company’s general employment policies or practices, this Agreement shall control.

2.    Compensation.

2.1    Salary. For services to be rendered hereunder, Executive shall receive a base salary at the rate of Three Hundred and Fifty Thousand U.S. Dollars ($350,000) per year (such base salary, as may be increased (but not decreased) from time to time, the “Base Salary”), subject to standard payroll deductions and withholdings and payable in accordance with the Company’s regular payroll schedule.

2.2    Bonus. Executive will be eligible for an annual discretionary bonus of up to 40% of Executive’s Base Salary (the “Annual Bonus”). Whether Executive receives an Annual Bonus for 

any given year, and the amount of any such Annual Bonus, will be determined by the Company’s Board of Directors (the “Board”) or the compensation committee thereof in its sole discretion based upon the Company’s and Executive’s achievement of objectives and milestones to be determined on an annual basis by the Board or the compensation committee thereof. Annual Bonuses are typically paid no later

FW/11604751.4
than March 15th of the year following the applicable bonus year. Executive will not be eligible for, and will not earn, any Annual Bonus (including a prorated bonus) if Executive’s employment terminates for any reason before any Annual Bonus is paid, except as otherwise expressly provided in Section 6.3 below.

3.    Standard Company Benefits. Executive shall be entitled to participate in all employee benefit programs for which Executive is eligible under the terms and conditions of the benefit plans that may be in effect from time to time and provided by the Company to its employees.

4.    Expenses. The Company will reimburse Executive for reasonable travel, entertainment or other expenses incurred by Executive in furtherance or in connection with the performance of Executive’s duties hereunder, in accordance with the Company’s expense reimbursement policy as in effect from time to time.

5.    Equity. On the Effective Date, as an inducement to enter into this Agreement, the Company will grant Executive an option (the “Stock Option”) to purchase Two Hundred Twenty Thousand (220,000) shares of the Company’s common stock with a per-share exercise price equal to the fair market value of a share of the Company’s common stock on the date of grant, as determined by the Board or the compensation committee thereof. 1/4th of the shares underlying the Stock Option will vest and become exercisable on the one-year anniversary of the grant date, and 1/48th of the shares underlying the Stock Option will vest and become exercisable on a monthly basis thereafter, such that 100% of the shares underlying the Stock Option shall be vested and exercisable as of the four-year anniversary of the grant date, in each case so long as Executive remains employed by the Company through each applicable vesting date. The Stock Option will be subject to terms and conditions consistent with those provided in the Company’s 2014 Equity Incentive Plan, and will be governed in all respects by the terms of the stock option agreement to be entered into between Executive and the Company, except as specifically provided herein. Further details regarding the Stock Option will be provided to Executive upon approval of such grant by the Board.

6.    Termination of Employment; Severance.

6.1    At-Will Employment. Executive’s employment relationship is at-will. Either Executive or the Company may terminate the employment relationship at any time, with or without Cause or advance notice. In the event Executive’s employment relationship is terminated for any reason, Executive shall be entitled to receive Executive’s earned but unpaid Base Salary, unreimbursed business expenses properly incurred by Executive pursuant to Section 4 and any other compensation or benefit earned by or owed to (but not yet paid to) Executive through and including the date of termination, payable in a lump sum on the next regularly scheduled payroll date following the date on which Executive’s employment terminated, or at such other date as shall be specified under the terms of the employee benefit plan pursuant to which such compensation or benefit is payable.

6.2    Severance Benefits for Termination Without Cause or Resignation with Good Reason Unrelated to a Change of Control. In the event Executive’s employment with the Company is terminated by the Company without Cause or Executive resigns for Good Reason prior to a 

Change of Control (as defined below) or more than twelve (12) months following a Change of Control, provided that Executive remains in compliance with the terms of this Agreement and the Confidentiality Agreement (as defined below) and subject to Section 7 below, the Company or its successor, as the case may be, shall provide Executive with the following severance benefits:

(i)    The Company shall pay Executive, as severance, the equivalent of nine (9)
months of Executive’s Base Salary in effect as of the date of Executive’s employment termination. This severance will be paid in the form of salary continuation, payable on the Company’s regular payroll dates, subject to standard payroll deductions and withholdings, starting on the 60th day after Executive’s termination date, with the first payment to include those payments that would have occurred earlier but for the 60-day delay.

(ii)    Provided that Executive is then eligible for and timely elects continued coverage under COBRA, the Company shall pay Executive’s COBRA premiums to continue Executive’s coverage (including coverage for eligible dependents, if applicable) through the period starting on Executive’s termination date and ending on the earliest to occur of: (a) nine (9) months following Executive’s termination date; (b) the date Executive becomes eligible for comparable group health insurance coverage through a new employer; or (c) the date Executive ceases to be eligible for COBRA continuation coverage for any reason, including plan termination. In the event Executive becomes covered under another employer’s comparable group health plan or otherwise ceases to be eligible for COBRA during this time period, Executive must immediately notify the Company of such event. Notwithstanding the foregoing, if the Company determines, in its sole discretion, that it cannot pay the COBRA premiums without a substantial risk of violating applicable law, the Company instead shall pay to Executive, on the first day of each calendar month, a fully taxable cash payment equal to the applicable COBRA premiums for that month, subject to applicable tax withholdings, for the remainder of the COBRA premium period. Executive may, but is not obligated to, use such payments toward the cost of COBRA premiums.

6.3    Severance Benefits for Termination Without Cause or Resignation with Good Reason Related to a Change of Control. In the event Executive’s employment with the Company is terminated by the Company without Cause or Executive resigns for Good Reason during the twelve (12) month period immediately following a Change of Control, and provided that Executive remains in compliance with the terms of this Agreement and the Confidentiality Agreement and subject to Section 7 below, the Company, or its successor, as the case may be, shall provide Executive with the following severance benefits:

(i)    The Company shall pay Executive, as severance, the equivalent of twelve
(12) months of Executive’s base salary in effect as of the date of Executive’s employment termination. This severance will be paid in the form of salary continuation, payable on the Company’s regular payroll dates, subject to standard payroll deductions and withholdings, starting on the 60th day after Executive’s termination date, with the first payment to include those payments that would have occurred earlier but for the 60-day delay.

(ii)    Provided that Executive is then eligible for and timely elects continued coverage under COBRA, the Company shall pay Executive’s COBRA premiums to continue Executive’s coverage (including coverage for eligible dependents, if applicable) through the period starting on Executive’s termination date and ending on the earliest to occur of: (a) twelve (12) months following Executive’s termination date; (b) the date Executive becomes eligible for comparable group health insurance coverage through a new employer; or (c) the date Executive ceases to be eligible for COBRA continuation coverage for any reason, including plan termination. In the event Executive 

becomes covered under another employer’s comparable group health plan or otherwise ceases to be eligible for COBRA during this time period, Executive must immediately notify the Company of such event. Notwithstanding the foregoing, if the Company determines, in its sole discretion, that it cannot pay the COBRA premiums without a substantial risk of violating applicable law, the Company instead shall pay to Executive, on the first day of each calendar month, a fully taxable cash payment equal to the applicable COBRA premiums for that month, subject to applicable tax withholdings, for the remainder
of the COBRA premium period. Executive may, but is not obligated to, use such payments toward the cost of COBRA premiums.

(iii)    The Company shall pay Executive an amount equal to 100% of Executive’s target annual bonus, payable in a lump sum, less deductions and withholdings, at the same time as the first severance payment described in Section 6.3(i) above. For the avoidance of doubt, the amount payable pursuant to this Section 6.3(iii) shall not be subject to proration based on the portion of the year elapsed as of the date of termination.

(iv)    The vesting of all unvested equity-based incentive compensation awards then held by Executive shall be accelerated such that 100% of the shares underlying such awards shall be deemed immediately vested and exercisable; provided that, in the case of any unvested equity-based incentive compensation awards that are subject to performance-based vesting terms as of the date of such termination, the treatment of such performance-based vesting conditions shall be governed by the applicable equity plan and award agreement.

6.4    Termination for Cause; Resignation Without Good Reason; Death or
Disability.

(i)    If Executive resigns without Good Reason or the Company terminates
Executive’s employment for Cause, Executive shall not be entitled to receive any payments or benefits under this Agreement, other than as set forth in Section 6.1. In addition, Executive shall resign from all positions and terminate any relationships as an employee, advisor, officer or director with the Company and any of its affiliates, each effective on the date of termination.

(ii)    Executive’s employment shall terminate automatically upon the death or Total Disability of Executive. “Total Disability” shall mean Executive’s inability, with reasonable accommodation, to perform the duties of her position for a period or periods aggregating ninety (90) calendar days in any period of one hundred eighty days (180) consecutive days as a result of any medically recognized physical or mental illness, loss of legal capacity or any other cause beyond Executive’s control. Executive and the Company hereby acknowledge that Executive’s ability to perform the duties specified in Section 1 is the essence of this Agreement. Termination hereunder shall be deemed to be effective (a) at the end of the calendar month in which Executive’s death occurs or (b) immediately upon a reasonable determination by the Board or the compensation committee thereof of Executive’s Total Disability. In the case of termination of employment under this Section 6.4(ii), Executive shall not be entitled to receive any payments or benefits under this Agreement, other than as set forth in Section 6.1.

7.    Conditions to Receipt of Severance Benefits. The receipt of the severance benefits set forth in Section 6.2 and Section 6.3 above shall be subject to Executive signing and not revoking a separation agreement and release of claims in a form reasonably satisfactory to the Company and Executive (the “Separation Agreement”) no later than 60 days following the date of termination. No severance benefits will be paid or provided unless and until the Separation Agreement becomes effective and non-revocable. Executive shall also resign from all positions and terminate any 

relationships as an employee, advisor, officer or director with the Company and any of its affiliates, each effective on the date of termination.

8.    Section 409A. It is intended that all of the severance benefits and other payments payable under this Agreement satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code” and “Section 409A”)
provided under Treasury Regulations 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9), and this Agreement will be construed to the greatest extent possible as consistent with those provisions, and to the extent not so exempt, this Agreement (and any definitions hereunder) will be construed in a manner that complies with Section 409A. All payments and benefits that are payable upon a termination of employment hereunder shall be paid or provided only upon Executive’s “separation from service” from the Company (within the meaning of Section 409A). For purposes of Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), Executive’s right to receive any installment payments under this Agreement (whether severance payments, reimbursements or otherwise) shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment.
Notwithstanding any provision to the contrary in this Agreement, if Executive is deemed by the Company at the time of Executive’s termination to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i), and if any of the payments upon termination set forth herein and/or under any other agreement with the Company are deemed to be “deferred compensation”, then to the extent delayed commencement of any portion of such payments is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) and the related adverse taxation under Section 409A, such payments shall not be provided to Executive prior to the earliest of (i) the expiration of the six-month period measured from the date of Executive’s termination with the Company, (ii) the date of Executive’s death or (iii) such earlier date as permitted under Section 409A without the imposition of adverse taxation.
Upon the first business day following the expiration of such applicable Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this Paragraph shall be paid in a lump sum to Executive, and any remaining payments due shall be paid as otherwise provided herein or in the applicable agreement. No interest shall be due on any amounts so deferred.

9.    Section 280G. In the event that the severance and other benefits provided for in this Agreement or otherwise payable to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section 9, would be subject to the excise tax imposed by Section 4999 of the Code, then, Executive’s severance and other benefits under this Agreement shall be payable either (i) in full, or (ii) as to such lesser amount which would result in no portion of such severance and other benefits being subject to the excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999 of the Code, results in the receipt by Employee on an after-tax basis of the greatest amount of severance benefits under this Agreement, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code. Any reduction shall be made in the following manner: first a pro rata reduction of (i) cash payments subject to Section 409A as deferred compensation and (ii) cash payments not subject to Section 409A, and second a pro rata cancellation of (i) equity-based compensation subject to Section 409A as deferred compensation and (ii) equity-based compensation not subject to Section 409A. Reduction in either cash payments or equity compensation benefits shall be made prorata between and among benefits which are subject to Section 409A and benefits which are exempt from Section 409A. Unless the Company and Employee otherwise agree in writing, any determination required under this Section 9 shall be made in writing by the
Company’s independent public accountants (the “Accountants”), whose determination shall be conclusive and binding upon Employee and the Company for all purposes. For purposes of making the 

calculations required by this Section 9, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and Employee shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 9. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 9.
10.    Definitions.

10.1    Cause. For purposes of this Agreement, “Cause” for termination will mean: (a) a material breach of any of Executive’s obligations or duties pursuant to this Agreement or the Confidentiality Agreement, which remains uncured seven days after Executive becomes aware of the breach by formal written notification by the Company; (b) gross negligence or willful misconduct in the course of employment; (c) any action or activity that is contrary to applicable insider trading rules or any other applicable securities rules or legislation; or (d) a material act or omission involving substantial dishonesty or fraud that harms or would reasonably be expected to harm the Company.

10.2    Good Reason. For purposes of this Agreement, Executive shall have “Good Reason” for resignation from employment with the Company if any of the following actions are taken by the Company without Executive’s prior written consent: (a) any material and adverse change to Executive’s position, authority, responsibilities, or job location in effect under this Agreement; (b) any material reduction in base salary or bonus opportunity as provided under this Agreement; (c) an assignment to Executive of any duties materially inconsistent with Executive’s status as General Counsel; or (d) any failure to secure the agreement of any successor entity to fully assume the Company’s obligations under this Agreement. In order to resign for Good Reason, Executive must provide written notice to the Board within 60 days after the first occurrence of the event giving rise to Good Reason setting forth the basis for Executive’s resignation, allow the Company at least 30 days from receipt of such written notice to cure such event, and if such event is not reasonably cured within such period, Executive must resign from all positions Executive then holds with the Company not later than 90 days after the expiration of the cure period.

10.3    Change of Control. For purposes of this Agreement, “Change of Control” means the occurrence of one or more of the following: (a) a merger, a consolidation, a reorganization or an arrangement that results in a transfer of more than fifty percent (50%) of the total voting power of the Company’s outstanding securities to a person or a group of persons different from a person or a group of persons holding those securities immediately prior to such transaction (other than the Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company); (b) a direct or indirect sale or other transfer of beneficial ownership of securities of the Company possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities to a person or a group of persons different from a person or a group of persons holding those securities immediately prior to such transaction (other than the Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company); (c) a direct or indirect sale or other transfer of the right to appoint more than fifty percent (50%) of the directors of the Board or otherwise directly or indirectly control the management, affairs and business of the Company to a person or a group of persons different from a person or a group of persons holding this right immediately prior to such transaction (other than the Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company); (d) a direct or indirect sale or other transfer of all or substantially all of the assets of the Company to a person or a group of persons different from a person or a group of persons holding those assets immediately prior to such transaction (other than the Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company); or (e) a complete liquidation, 

dissolution or winding-up of the Company; provided, however, that a Change in Control will not be deemed to have occurred if such Change in Control results solely from the issuance, in connection with a bona fide financing or series of financings by the Company, of voting securities of the Company or any rights to acquire voting securities of the Company which are convertible into voting securities.

11.    Proprietary Information Obligations. As a condition of employment, Executive shall
execute and abide by the Company’s standard form of Employee Invention Assignment, Confidentiality and Non-Competition Agreement (the “Confidentiality Agreement”).

12.    Outside Activities During Employment.

12.1    Non-Company Business. Except with the prior written consent of the Board, Executive will not during the term of Executive’s employment with the Company undertake or engage in any other employment, occupation or business enterprise, other than ones in which Executive is a passive investor. Executive may engage in civic and not-for-profit activities so long as such activities do not materially interfere with the performance of Executive’s duties hereunder.

12.2    No Adverse Interests. Executive agrees not to acquire, assume or participate in, directly or indirectly, any position, investment or interest known to be adverse or antagonistic to the Company, its business or prospects, financial or otherwise.

13.    Dispute Resolution. To ensure the timely and economical resolution of disputes that may arise in connection with Executive’s employment with the Company, Executive and the Company agree that any and all disputes, claims, or causes of action arising from or relating to the enforcement, breach, performance, negotiation, execution, or interpretation of this Agreement, Executive’s employment, or the termination of Executive’s employment, including but not limited to statutory claims, shall be resolved to the fullest extent permitted by law by final, binding and confidential arbitration, by a single arbitrator, in Seattle, Washington conducted by JAMS, Inc. (“JAMS”) under the then applicable JAMS rules or by another arbitration provider if mutually agreed upon by Executive and Board. By agreeing to this arbitration procedure, both Executive and the Company waive the right to resolve any such dispute through a trial by jury or judge or administrative proceeding. The Company acknowledges that Executive will have the right to be represented by legal counsel at any arbitration proceeding. The arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law; and (b) issue a written arbitration decision, to include the arbitrator’s essential findings and conclusions and a statement of the award. The arbitrator shall be authorized to award any or all remedies that Executive or the Company would be entitled to seek in a court of law. The Company shall pay all JAMS’ arbitration fees in excess of the amount of court fees that would be required of Executive if the dispute were decided in a court of law. Nothing in this Agreement is intended to prevent either Executive or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. Any awards or orders in such arbitrations may be entered and enforced as judgments in the federal and state courts of any competent jurisdiction.

14.    General Provisions.

14.1    Notices. Any notices provided must be in writing and will be deemed effective upon the earlier of personal delivery (including personal delivery by email or fax) or the next day after sending by overnight carrier, to the Company at its primary office location and to Executive at the address as listed on the Company payroll.

14.2    Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction to the extent possible in keeping with the intent of the parties.
14.3    Waiver. Any waiver of any breach of any provisions of this Agreement must be in writing to be effective, and it shall not thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement.

14.4    Complete Agreement. This Agreement, together with the Confidentiality Agreement, constitutes the entire agreement between Executive and the Company with regard to this subject matter and is the complete, final, and exclusive embodiment of the Parties’ agreement with regard to this subject matter. This Agreement is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties or representations. It is entered into without reliance on any promise or representation other than those expressly contained herein, and it cannot be modified or amended except in a writing signed by a duly authorized officer of the Company.

14.5    Counterparts. This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one party, but all of which taken together will constitute one and the same Agreement.

14.6    Headings. The headings of the paragraphs hereof are inserted for convenience only and shall not be deemed to constitute a part hereof nor to affect the meaning thereof.

14.7    Successors and Assigns. This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive and the Company, and their respective successors, assigns, heirs, executors and administrators, except that Executive may not assign any of his duties hereunder and he may not assign any of his rights hereunder without the written consent of the Company, which shall not be withheld unreasonably.

14.8    Tax Withholding and Indemnification. All payments and awards contemplated or made pursuant to this Agreement will be subject to withholdings of applicable taxes in compliance with all relevant laws and regulations of all appropriate government authorities. Executive acknowledges and agrees that the Company has neither made any assurances nor any guarantees concerning the tax treatment of any payments or awards contemplated by or made pursuant to this Agreement. Executive has had the opportunity to retain a tax and financial advisor and fully understands the tax and economic consequences of all payments and awards made pursuant to the Agreement.

14.9    Choice of Law. All questions concerning the construction, validity and interpretation of this Agreement will be governed by the laws of the State of Washington.

[Remainder of Page Intentionally Left Blank]

IN WITNESS WHEREOF, the Parties have executed this Agreement on the day and year first written above.

NEOLEUKIN THERAPEUTICS, INC.

By:    /s/ Jonathan G. Drachman, M.D. Name: Jonathan Drachman
 Title: Chief Executive Officer

HOLLY VANCE

/s/ Holly Vance

[Signature Page to H. Vance Employment Agreement]

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