Document:

Qualification and Registration Rights Agreement of the Registrant

 Exhibit 4.1 

AMENDED AND RESTATED QUALIFICATION 

AND REGISTRATION RIGHTS AGREEMENT 

This Amended and Restated Qualification and Registration Rights Agreement (the “Agreement”) is made as of March 19, 2013,

 BETWEEN: 
 Aquinox
Pharmaceuticals (USA) Inc., a corporation incorporated 
 under the laws of Delaware (the “Company”) 

- and - 
 Each of the Persons
Listed on Schedule A (the “Investors”) 
 RECITALS: 

WHEREAS, the Company and certain of the Investors are parties to that certain Amended and Restated Qualification and Registration Rights Agreement made
as of March 31, 2010 (the “Prior Agreement”); 
 WHEREAS, in connection with the execution and delivery of that certain
Stock Subscription Agreement dated as of March 19, 2013 by and among the Company, the Canadian Company (as defined below) and certain of the Investors (the “Subscription Agreement”), the Company shall issue and sell shares of
Series C Preferred Stock (as defined below) to certain of the Investors and the Canadian Company shall issue and sell Class C Exchangeable Shares (as defined below) to certain of the Investors; 

WHEREAS, it is a condition precedent to the transactions contemplated by the Subscription Agreement that the Prior Agreement be amended and restated as
provided herein; 
 WHEREAS, Section 12.2(a) of the Prior Agreement provides that any modification or amendment of the Prior Agreement
may be made if the Company agrees to such modification or amendment and the Company obtains the consent in writing of Holders (as defined in the Prior Agreement) holding or having the right to acquire in the aggregate at least 65% of the Registrable
Securities (as defined in the Prior Agreement); 
 WHEREAS, the undersigned Investors hold or have the right to acquire in the aggregate at
least 65% of the Registrable Securities (as defined in the Prior Agreement); 
 THEREFORE, in consideration of the foregoing and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties to this Agreement agree as follow: 

 ARTICLE 1 

DEFINITIONS AND PRINCIPLES OF INTERPRETATION 

1.1 Definitions 
 In this Agreement, the following words
and terms have the meanings set out below: 
 “1933 Act” means the United States Securities Act of
1933, as amended; 
 “1934 Act” means the United States Securities Exchange Act of
1934, as amended; 
 “Affiliate” has the meaning given to it in the 1933 Act; 

“Business Day” means any day except a Saturday or Sunday, on which the Royal Bank of Canada in Vancouver, British
Columbia and the Bank of America in Seattle, Washington are both open for commercial banking business during normal banking hours; 

“Canadian Company” means Aquinox Pharmaceuticals Inc., a corporation incorporated under the laws of the Canada; 

 “Canadian Demand Qualification” means the qualification of Registrable Securities by the Company pursuant to
Section 2.3; 
 “Canadian IPO” means the filing by the Company of a final prospectus, including a non-offering
prospectus, with the securities regulatory authority in any jurisdiction in Canada; 
 “Canadian Piggy-Back
Qualification” means the filing of a prospectus by the Company pursuant to Section 2.1 or the qualification of Registrable Securities by the Company pursuant to Section 2.4; 

“Canadian Securities Laws” means all applicable securities laws, the respective regulations, rules and orders made thereunder,
and all applicable policies and notices issued by the securities regulatory authorities in the Qualifying Jurisdictions; 

“Class A Exchangeable Shares” means the Series A-1 exchangeable preferred shares and the Series A-2 exchangeable
preferred shares in the capital of the Canadian Company;  
 “Class B Exchangeable Shares” means the Series
B-1 exchangeable preferred shares and the Series B-2 exchangeable preferred shares in the capital of the Canadian Company; 

“Class C Exchangeable Shares” means the Series C exchangeable preferred shares in the capital of the Canadian
Company; 
 “Common Exchangeable Shares” means the common exchangeable shares in the capital of the Canadian
Company; 
 “Common Shares” means the shares of common stock in the capital of the Company; 

 “Control Block Holder” means any Holder if the sale of such Holder’s
Registrable Securities would be a control distribution under NI 45-102; 
 “Exchangeable Shares” means the
Class A Exchangeable Shares, the Class B Exchangeable Shares and the Class C Exchangeable Shares;  
 “Form
S-1”, “Form S-3” and “Form S-4” mean such respective forms under the 1933 Act or any successor registration forms to such forms under the 1933 Act subsequently adopted by the SEC; 

“Holder” means any of the Investors, any purchaser or permitted transferee of Preferred Shares and/or of Exchangeable
Shares who agrees to become party to and bound by the provisions of this Agreement by executing the form of counterpart attached hereto as Schedule B or any assignee to whom Registrable Securities (or securities or rights convertible into
Registrable Securities or exchangeable for securities or rights convertible into Registrable Securities) are transferred in accordance with Section 10.1, for so long as they continue to hold Registrable Securities (or securities or rights
convertible into Registrable Securities or exchangeable for securities or rights convertible into Registrable Securities); 

“Holder Approval” means the written approval of the Holders of Registrable Securities holding not less than 60% of the
Registrable Securities (calculated for this purpose as if all securities convertible into or exchangeable for Common Shares, directly or indirectly, are so converted or exchanged); provided, however, if at the time the approval is sought one
shareholder (or a group of non-arm’s length shareholders) holds at least 60% of the Registrable Securities, then the approval must include at least two Holders of Registrable Securities who are arm’s length to each other; 

“Initiating Holders” means: 
  

	 	a)	with respect to the exercise of any U.S. registration right under this Agreement, Holders holding at least 51% of the aggregate of (i) the outstanding Series A Preferred Stock (including Common Shares issued on
conversion of the Series A Preferred Stock); (ii) the outstanding Class A Exchangeable Shares; (iii) the outstanding Series B Preferred Stock (including Common Shares issued on conversion of the Series B Preferred Stock);
(iv) the outstanding Class B Exchangeable Shares; (v) the outstanding Series C Preferred Stock (including Common Shares issued on conversion of the Series C Preferred Stock); and (vi) the outstanding Class C Exchangeable Shares; and

  

	 	b)	with respect to the exercise of any Canadian qualification right under this Agreement, the Control Block Holder(s) requesting qualification; 

“IPO” means a U.S. IPO or a Canadian IPO; 

 “MRRS Receipt” means in relation to any final prospectus, a receipt for
such prospectus issued by the securities regulatory authority or regulator in any province or territory of Canada: 
 (a) that is
deemed to be issued if a receipt is issued for such prospectus by a securities regulatory authority or regulator of another province or territory; or 

(b) which is evidenced by a receipt for such prospectus issued by a securities regulatory authority or regulator of another province or
territory; 
 which evidences or represents, or has the same legal effect as, or is deemed to be, a receipt issued by the securities
regulatory authority or regulator in the province or territory, pursuant to a passport system or mutual reliance review system contemplated by a memorandum of understanding among the governments of various provinces or provinces and territories or a
rule, regulation, instrument or policy statement of, or adopted by, the province or territory; 
 “NI 45-102” means
National Instrument 45-102 – Resale of Securities, of the Canadian Securities Administrators, as adopted in British Columbia; 

“Preferred Shares” means the shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock
(including any Preferred Shares issuable upon the exchange of the Exchangeable Shares); 
 “prospectus”
includes a preliminary prospectus, final prospectus and any amendments thereto, as the context requires; 
 “Qualified
IPO” has the meaning given to it in the Company’s Sixth Amended & Restated Certificate of Incorporation, as amended from time to time; 

“Qualifying Jurisdictions” means British Columbia, Alberta and Ontario; 

“Receipt Date” means the date on which a final receipt (or an MRRS Receipt decision document or an equivalent document)
has been issued or deemed to have been issued in respect of a prospectus in each of the Qualifying Jurisdictions; 

“Recognized Stock Exchange” means The NASDAQ Capital Market, The NASDAQ Global Market, The NASDAQ Global Select Market,
the American Stock Exchange or the New York Stock Exchange, and such other securities exchange as may be approved by the Board of Directors of the Company; 

“register”, “registered”, and “registration” refer to a registration effected by
preparing and filing a registration statement or similar document in compliance with the 1933 Act which is declared effective in accordance with the provisions of the 1933 Act; 

 “Registrable Securities” means: 

 

	 	(i)	any Common Shares issued or issuable upon conversion of the Preferred Shares or as a dividend or other distribution with respect to, in exchange for or in replacement of the Preferred Shares; 

 

	 	(ii)	any Common Shares issued or issuable upon the exchange of Common Exchangeable Shares which were themselves obtained upon conversion of Exchangeable Shares; and 

 

	 	(iii)	any Common Shares issued in connection with a stock dividend, stock split, recapitalization, conversion or other similar distribution with respect to, in exchange for, or in replacement of any of the Common Shares that
are Registrable Securities pursuant to (i) or (ii) above; 

 but excludes: 

 

	 	(A)	any Common Shares sold by a Person in a transaction in which its rights under this Agreement are not assigned; 

  

	 	(B)	other than for purposes of a Canadian Demand Qualification or a Canadian Piggy-Back Qualification, (I) Common Shares registered pursuant to an effective registration statement and disposed of in accordance with the
registration statement covering them or (II) Common Shares that have been publicly sold pursuant to Rule 144 of the 1933 Act; and 

  

	 	(C)	other than for purposes of a U.S. Demand Registration or a U.S. Piggy-Back Registration, Common Shares held by Holders who have the right (subject to any contractual commitments to the contrary) to freely sell such
Common Shares without a prospectus or resort to a prospectus exemption under applicable Canadian Securities Laws and without registration under the 1933 Act; 

“Related Group” means, in relation to a Holder that is not an individual, the Holder’s general or limited partners,
members, retired members, any subsidiaries, Affiliates or successor funds of, or any entity or fund managed by or under common control or management with, the Holder or managed by an Affiliate of the manager of the Holder, any Affiliate of the
general partner or manager of the Holder and, in the case of a trust, any beneficiary of the trust; 
 “SEC” means
the United States Securities and Exchange Commission; 
 “Series A Preferred Stock” means the Series A-1
Preferred Stock and Series A-2 Preferred Stock in the capital of the Company;  
 “Series B Preferred Stock”
means the Series B-1 Preferred Stock and Series B-2 Preferred Stock in the capital of the Company; 

 “Series C Preferred Stock” means the Series C Preferred Stock in the
capital of the Company; 
 “Special Registration Statement” means a registration statement relating to any
employee benefit plan or with respect to any corporate reorganization or other transaction under Rule 145 of the 1933 Act or other transaction registered in Form S-4 (or substantially similar form under the 1933 Act); 

“Underwriter Cutback” means the right of the underwriters to exclude Registrable Securities in an underwritten offering
pursuant to Section 7.4; 
 “U.S. IPO” means the Company’s first public offering of Common Shares
pursuant to a registration statement on Form S-1, or filed with the SEC; 
 “U.S. Long-Form Demand
Registration” means the registration of Registrable Securities by the Company pursuant to Section 3.1; 

“U.S. Piggy-Back Registration” means the registration of Registrable Securities by the Company pursuant to
Section 3.3; and 
 “U.S. Short-Form Demand Registration” means the registration of Registrable
Securities by the Company pursuant to Section 3.2. 
 1.2 Certain Rules of Interpretation 

In this Agreement: 
  

	 	(a)	Consent – Whenever a provision of this Agreement requires an approval or consent and such approval or consent is not delivered within the applicable time limit then, unless otherwise specified, the party
whose consent or approval is required is conclusively deemed to have withheld its approval or consent. 

  

	 	(b)	Governing Law; Venue – This Agreement shall be construed and enforced in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein, provided, however, that to the
extent the application of such laws would be inconsistent with or result in a violation of any applicable provisions of the 1933 Act or the 1934 Act, this Agreement shall be construed and enforced in accordance with such provisions of the 1933 Act
or 1934 Act, as applicable. Any action, suit or proceeding arising out of or relating to this Agreement shall be brought in the Courts of the Province of British Columbia, and each of the parties hereby irrevocably submits to the jurisdiction of
such courts. 

  

	 	(c)	Headings – Headings of Articles and Sections are inserted for convenience of reference only and do not affect the construction or interpretation of this Agreement. 

 

	 	(d)	Including – Where the word “including” or “includes” is used in this Agreement, it means “including (or includes) without limitation”. 

	 	(e)	Number and Gender – Unless the context otherwise requires, words importing the singular include the plural and vice versa and words importing gender include all genders. 

 

	 	(f)	Severability – If, in any jurisdiction, any provision of this Agreement or its application to any party or circumstance is restricted, prohibited or unenforceable, such provision is, as to such jurisdiction,
ineffective only to the extent of such restriction, prohibition or unenforceability without invalidating the remaining provisions of this Agreement and without affecting the validity or enforceability of such provision in any other jurisdiction or
without affecting its application to other parties or circumstances. 

  

	 	(g)	Statutory References – A reference to a statute includes all regulations made pursuant to such statute and, unless otherwise specified, the provisions of any statute or regulation that amends, supplements or
supersedes any such statute or any such regulation. 

  

	 	(h)	Time – Time is of the essence in the performance of the parties’ respective obligations. 

  

	 	(i)	Time Periods – Unless otherwise specified, time periods within or following which any act is to be done are calculated by excluding the day on which the period commences and including the day on which the
period ends and by extending the period to the next Business Day if the last day of the period is not a Business Day. 

  

	 	(j)	No Strict Construction – The language used in this Agreement is the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any party.

 1.3 Entire Agreement 
 This Agreement,
the Subscription Agreement and the documents contemplated in the Subscription Agreement constitute the entire understanding of the parties with respect to the subject matter of this Agreement and thereof and supersede any and all prior
understandings and agreements, whether written or oral, with respect to such subject matter. 
 1.4 Schedules 

Schedules A and B are an integral part of this Agreement. 

ARTICLE 2 
 CANADIAN
QUALIFICATION RIGHTS 
 2.1 Canadian Piggy-Back Qualification upon an IPO 

The Company will not complete an IPO unless the Company obtains a receipt or MRRS Receipt for a final prospectus (which may, at the Company’s option, be
the same prospectus pursuant to which a Qualified IPO is effected in Canada) filed in the Qualifying Jurisdictions that qualifies the 

 
distribution of all of the Registrable Securities issuable upon conversion of the Preferred Shares or exchange of the Common Exchangeable Shares at the time of the IPO. In preparing for and
completing an IPO, the Company will keep each Holder whose Registrable Securities are being qualified reasonably advised of the status of such qualification. 

2.2 Canadian Piggy-Back Qualification Notice 
 If the
Company intends to complete an IPO, the Company will, at least 25 Business Days prior to filing a preliminary prospectus or a registration statement in respect of such IPO, give each Holder written notice of such proposed filing. 

2.3 Canadian Demand Qualification 
 Subject to the limits
set out in Section 3.4 and Article 4, if at any time after 180 days after the closing of an IPO (including a Qualified IPO), the Company receives a written request from a Control Block Holder that such Control Block Holder wishes to require the
Company to file a prospectus in the Qualifying Jurisdictions, then the Company will, within 10 Business Days following receipt of the request, give written notice of the request to all other Control Block Holders. Each Control Block Holder that
wishes to require the Company to file a prospectus in the Qualifying Jurisdictions and to include in any such prospectus all or part of its Registrable Securities must send a written notice to the Company within 15 Business Days after receipt of the
Company’s notice, stating the number and intended manner of disposition of the Registrable Securities to be included in the prospectus. Following this 15 Business Day period, the Company will, subject to the Underwriter Cutback, as soon as
practicable and in any event within 90 days following the end of such 15 Business Day period, prepare and file in the Qualifying Jurisdictions a prospectus in order to qualify the distribution of all of the Registrable Securities of the Control
Block Holders specified in their respective requests and will use its reasonable best efforts to receive a final receipt or an MRRS Receipt or equivalent document in respect of such prospectus. 

2.4 Additional Canadian Piggy-Back Qualification 
 If the
Company proposes to file a preliminary prospectus under any Canadian Securities Laws in connection with the sale of any of its Common Shares or other equity securities (or securities convertible into equity securities) in connection with the public
offering of such securities solely for cash (including the public sale of securities held by shareholders other than the Holders, but not including a sale of securities effected pursuant to a Canadian Demand Qualification), the Company will, at all
such times, promptly give each Control Block Holder written notice of such filing. Upon the written request of any Control Block Holder, given within 20 Business Days after such Control Block Holder’s receipt of such notice, the Company will,
subject to the Underwriter Cutback, use its reasonable best efforts to cause to be included in and sold pursuant to the prospectus all of the Registrable Securities which each such Control Block Holder has requested be included in the filing. 

 ARTICLE 3 

U.S. REGISTRATION RIGHTS 
 3.1 U.S.
Long-Form Demand Registration 
 Subject to the limits set out in Article 4, if, at any time after the earlier of (i) three years after the date of
this Agreement; and the date that is 180 days after the closing of an IPO (including a Qualified IPO), the Company receives a written request from Initiating Holders requesting registration of greater than 20 percent of the Registrable Securities,
which would result in gross proceeds to Holders of at least U.S.$7,500,000, then the Company will, within 15 Business Days following receipt of the request, give written notice of the request to all Holders and will afford each Holder an opportunity
to include in such registration statement all or any part of the Registrable Securities issuable to Holders. Each Holder other than Initiating Holders that wishes to include in any such registration statement all or part of such Registrable
Securities must send a written notice to the Company within 15 Business Days after receipt of the Company’s notice, stating the number and intended manner of disposition of the Registrable Securities to be included in the registration
statement. Following this 15 Business Day period, the Company will, subject to the provisions of Article 4 and the Underwriter Cutback, use its reasonable best efforts to effect such a registration as soon as practicable and, in any event, file
within 90 days of the end of such 15 Business Day period a registration statement under the 1933 Act covering all the Registrable Securities that the Initiating Holders and the other Holders, if any, specified in their respective requests and to use
its reasonable best efforts to have such registration statement become effective. 
 Subject to the limits set out in Article 4, if, on the 180th day after the closing of the Company’s first IPO, any Holders of Registrable Securities that were issued to such Holders upon conversion or exchange of Exchangeable Shares are unable to resell
such Registrable Securities pursuant to Rule 144 under the 1933 Act due to the failure of such Holders to satisfy the hold period requirements of Rule 144(d) (such Registrable Securities being referred to in this paragraph as the “Ineligible
Securities”, and the Holders of such Ineligible Securities being referred to in this paragraph as the “Ineligible Holders”), then, if, at any time after the date that is 180 days after the closing of the Company’s
first IPO and prior to the date that is 210 days after the closing of the Company’s first IPO, the Company receives a written request from Ineligible Holders holding at least sixty percent (60%) of the aggregate Ineligible Securities
requesting registration of greater than one-third of the aggregate Ineligible Securities, then the Company will, within 15 Business Days following receipt of the request, give written notice of the request to all Holders and will afford each Holder
an opportunity to include in such registration statement all or any part of the Registrable Securities issuable to Holders upon the exchange or conversion of Preferred Shares held by them. Each Holder other than initiating Ineligible Holders that
wishes to include in any such registration statement all or part of such Registrable Securities must send a written notice to the Company within 15 Business Days after receipt of the Company’s notice, stating the number and intended manner of
disposition of the Registrable Securities to be included in the registration statement. Following this 15 Business Day period, the Company will, subject to the provisions of Article 4 and the Underwriter Cutback, use its reasonable best efforts to
effect such a registration as soon as practicable and, in any event, file within 90 days of the end of such 15 Business Day period a registration statement under the 1933 Act covering all the Registrable Securities that the initiating Ineligible
Holders and the other Holders, if any, specified in their respective requests and to use its reasonable best efforts to have such registration statement become effective. If the Company effects a U.S. Long-Form Demand 

 
Registration pursuant to this paragraph and the registration statement does not register any securities other than Ineligible Securities, then such registration shall not count toward the limit
of two U.S. Long-Form Demand Registrations as set forth in Section 4.1(b) of this Agreement. 
 3.2 U.S. Short-Form Demand Registration 

Subject to the limits set out in Article 4, if, at any time after the date that is 180 days after the closing of an IPO (including a Qualified IPO), the
Company receives a written request from one or more Holders who hold, collectively, Preferred Shares and/or Exchangeable Shares which were issued for aggregate subscription proceeds of at least U.S.$500,000 (or who hold Common Shares issued on the
conversion of such Preferred Shares or Common Exchangeable Shares issued on the conversion of such Exchangeable Shares) that the Company file a registration statement on Form S-3 and the Company qualifies for the use of Form S-3 (and any related
qualification or compliance documents or information) covering the registration of all or part of the Registrable Securities held by such Holders, then the Company will, within 15 Business Days following receipt of the request, give written notice
of the request to all Holders (and any related qualification or compliance documents or information) and will afford each Holder an opportunity to include in such registration statement all or any part of the Registrable Securities held by such
Holder. Each Holder other than the Holders who delivered the written request pursuant to this Section 3.2 that wishes to include in any such registration statement all or part of the Registrable Securities held by it must send a written notice
to the Company within 15 Business Days after receipt of the Company’s notice, stating the number and intended manner of disposition of the Registrable Securities to be included in the registration statement. Following this 15 Business Day
period, the Company will, subject to the Underwriter Cutback and the provisions of Article 4, use its reasonable best efforts to effect, as soon as practicable, a registration on, at the Company’s option, the appropriate form (and to keep such
registration effective for 6 months or such earlier time as all such Registrable Securities are sold pursuant to such registration) and such qualification or compliance documents or information as may be so requested and as would permit or
facilitate the sale and distribution of all or such portion of the Registrable Securities as specified by the Holders. 
 3.3 U.S. Piggy-Back
Registration 
 If the Company proposes to register any of its Common Shares or other equity securities (or securities convertible into equity
securities) under the 1933 Act in connection with the public offering of such securities solely for cash (other than a Special Registration Statement or pursuant to a U.S. Long-Form Demand Registration or a U.S. Short-Form Demand Registration), the
Company will, at all such times, promptly give each Holder written notice of such registration. Upon the written request of any Holder, given within 20 Business Days after receipt of such notice by the Holder, the Company will, subject to the
Underwriter Cutback, use its reasonable best efforts to cause a registration statement that covers all of the Registrable Securities that each such Holder has requested to be registered to become effective under the 1933 Act. 

3.4 U.S. Registration on Canadian IPO 
 The Company will
not complete a Canadian IPO unless the Company provides notice to all Holders at least 25 Business Days prior to filing the preliminary prospectus. Each Holder who is a resident of the United States may, within 10 Business Days of receipt of such
notice, send a written notice to 

 
the Company requiring that the Company register all or a part of the Registrable Securities issuable to such Holder upon the exchange or conversion of Preferred Shares held by such Holder.
Following such 10 Business Day period, the Company will use its reasonable best efforts to effect such a registration as soon as practicable, and in any event shall file, prior to or concurrently with the completion of the Canadian IPO, a
registration statement under the 1933 Act covering all of the Registrable Securities that the Holders specified in their respective requests and will use its reasonable best efforts to have such registration statement become effective. 

ARTICLE 4 
 LIMITS ON
QUALIFICATION AND REGISTRATION RIGHTS 
 4.1 Number of Demand Qualifications and Registrations 

During the term of this Agreement, the Company is obligated to effect (as may be determined by the Holders): 

 

	 	(a)	two Canadian Demand Qualifications; and 

  

	 	(b)	two U.S. Long-Form Demand Registrations and six U.S. Short-Form Demand Registrations. 

 4.2 Exceptions to
Qualification and Registration Rights 
 The Company: 
  

	 	(a)	is not required to effect a Canadian Demand Qualification, a U.S. Long-Form Demand Registration or a U.S. Short-Form Demand Registration: 

 

	 	(i)	for a period : 

  

	 	(A)	that is sixty (60) days before the Company’s good faith estimate of the date of filing of, and ending on a date that is one hundred eighty (180) days after the effective date of, a firm commitment
underwritten public offering of Common Shares in which the Holders of Registrable Securities are entitled to include (subject to the Underwriter Cutback) Registrable Securities pursuant to a Canadian Piggy-Back Qualification or a U.S. Piggy-Back
Registration, provided that the Company can rely on this Section 4.2(a)(i)(A) no more than once in any twelve-month period; or 

  

	 	(B)	of up to 90 days if, at the time of the request of such qualification or registration, the Company is engaged in a self-tender or exchange offer, and the filing of a registration statement would cause a violation of the
1934 Act; 

  

	 	(ii)	during the 90-day period following the closing by the Company of a firm commitment underwritten public offering of Common Shares in which the Holders of Registrable Securities were entitled to include (subject to the
Underwriter Cutback) Registrable Securities pursuant to a Canadian Piggy-Back Qualification or a U.S. Piggy-Back Registration; or 

	 	(iii)	in the case of: 

  

	 	(A)	a U.S. Long-Form Demand Registration, if the Registrable Securities that the Initiating Holders wish to have registered may be immediately registered by means of a U.S. Short-Form Demand Registration; or

  

	 	(B)	a U.S. Short-Form Demand Registration, if an appropriate form for a U.S. Short-Form Demand Registration is not available for such offering; 

 

	 	(b)	is not required to effect a U.S. Short-Form Demand Registration if the anticipated aggregate net proceeds of the offering to such Holders are less than U.S.$500,000 (net of discounts and commissions) or if the Company
at the request of Holders has effected a U.S. Short-Form Demand Registration within the previous six months; 

  

	 	(c)	may defer a Canadian Demand Qualification, a U.S. Long-Form Demand Registration or a U.S. Short-Form Demand Registration for a period of not more than 90 days, but only if: 

 

	 	(i)	the Company furnishes to the Holders requesting the qualification or registration a certificate signed by the President and Chief Executive Officer of the Company stating that, in the good faith judgment of the board of
directors of the Company, effecting the qualification or registration would materially impede the ability of the Company to consummate a significant transaction (the 90-day deferral period beginning on the date that such certificate is sent to the
Holders) or render the Company unable to comply with requirements under the 1933 Act or 1934 Act; and 

  

	 	(ii)	the Company has not deferred a filing in reliance on this section during the previous 12-month period; and 

  

	 	(d)	may defer a Canadian Demand Qualification, a U.S. Long-Form Demand Registration or a U.S. Short-Form Demand Registration if the board of directors of the Company determines in good faith that such qualification or
registration would require the disclosure of material information that the Company has a bona fide business purpose for preserving as confidential, until the earlier of: 

 

	 	(i)	10 days following the date upon which such material information is disclosed to the public or ceases to be material; and 

  

	 	(ii)	90 days after the date of the request of the Holders. 

 4.3 Notices of Conversion 

In order to exercise any of its registration or qualification rights relating to Registrable Securities pursuant to this Agreement, each Holder shall,
concurrently with their required notice to the Company, provide notices of conversion or exchange, if applicable, in respect of such Registrable Securities effective at any time prior to or at the time of filing of the final prospectus or
registration statement, as the case may be. 
 ARTICLE 5 

EXPENSES 
 5.1 Expenses 

Subject to Section 5.2 and Section 5.3, to the fullest extent permitted by applicable law, the Company will bear all expenses relating to the
qualification or registration of Registrable Securities pursuant to the terms hereof, including reasonable legal fees and expenses of one counsel to the Holders, and all registration, filing, printing, accounting and translation fees, fees and
disbursements of counsel and independent public accountants for the Company, fees and expenses (including counsel fees) incurred in connection with complying with Canadian Securities Laws, state securities or “blue sky” laws, fees of the
National Association of Securities Dealers, Inc., transfer taxes, fees of transfer agents and registrars, and costs of insurance incurred in connection with all Canadian Demand Qualifications, U.S. Long-Form Demand Registrations, U.S. Short-Form
Demand Registrations, all Canadian Piggy-Back Qualifications, and all U.S. Piggy-Back Registrations. 
 5.2 Expenses upon Withdrawal of Request 

The Company is not required to pay for any expenses pursuant to Section 5.1 of any Canadian Demand Qualification, any U.S. Long-Form Demand Registration
or any U.S. Short-Form Demand Registration if the qualification or registration request is subsequently withdrawn at any time at the request of the Holders of a majority of the Registrable Securities to be qualified or registered (in which case all
participating Holders will bear such expenses), unless: 
  

	 	(a)	in the case of a U.S. Long-Form Demand Registration, the Company has not previously effected a U.S. Long-Form Demand Registration at the request of Holders of Registrable Securities, and the Holders of a majority of the
Registrable Securities to be qualified or registered agree to forfeit their right to one U.S. Long-Form Demand Registration; or 

  

	 	(b)	at the time of any such withdrawal, the Holders have learned of a material adverse change in the condition, business or prospects of the Company (other than a change in market demand for its Common Shares or in the
market price of the Common Shares) from that known to the Holders of a majority of the Registrable Securities to be qualified or registered at the time of their request, that makes the proposed offering unreasonable in the good faith judgment of a
majority of the Holders of the Registrable Securities to be qualified or registered (in which case the withdrawn qualification or registration is deemed not to be a Canadian Demand Registration or a U.S. Long-Form Demand Registration for purposes of
Section 4.1). 

 5.3 Underwriting Discounts and Commissions 

All underwriting discounts and selling commissions relating to Registrable Securities included in any Canadian Demand Qualification, U.S. Long-Form Demand
Registration, U.S. Short-Form Demand Registration, Canadian Piggy-Back Qualification or U.S. Piggy-Back Registration will be borne and paid ratably by the Holders whose Registrable Securities are so included. 

ARTICLE 6 
 LOCK-UP
AGREEMENTS 
 6.1 Lock-Up Agreements 
 If requested
by the Company and the lead underwriter(s) in connection with a Qualified IPO, the Holders will enter into lock-up agreements pursuant to which they will not, for a period of not more than 180 days following the earlier of the effective date of the
registration statement or the Receipt Date for a Qualified IPO, (i) lend; offer; pledge; sell; contract to sell; sell any option or contract to purchase; purchase any option or contract to sell; grant any option, right, or warrant to purchase;
or otherwise transfer or dispose of, directly or indirectly, any shares of Registrable Securities or other equity securities of the Company, except the Registrable Securities, if any, sold pursuant to Section 2.4 or Section 3.3 (whether
such shares or any such securities are then owned by the Holder or are thereafter acquired) or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such
securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Shares or other securities, in cash, or otherwise, without the prior consent of the Company and the underwriter, but only
if the officers, directors and all holders of more than 1% of the Common Shares (calculated for this purpose as if all securities convertible into or exercisable for Common Shares, directly or indirectly, are so converted or exercised) of the
Company enter into lock-up agreements for the same or a longer period and on the same terms. 
 6.2 Permitted Transfers 

Any lock-up agreement entered into pursuant to Section 6.1 will permit the transfer by a Holder of Registrable Securities to a member of such
Holder’s Related Group so long as such transferee also agrees to enter into and be bound by a lock-up agreement pursuant to this Article 6. 
 6.3
Discretionary Waivers 
 Any discretionary waiver by the lead underwriter(s) of any lock-up agreement entered into with any holder of Common Shares will
release each Holder from the provisions of such Holder’s lock-up agreement to the same extent. 
 ARTICLE 7 

UNDERWRITING 
 7.1 Underwriting in
Demand Qualification or Registration 
 If the Initiating Holders intend to distribute the Registrable Securities covered by their request for a Canadian
Demand Qualification, a U.S. Long-Form Demand Registration or a U.S. Short-Form 

 
Demand Registration by means of an underwriting, they will so advise the Company as part of their request for such qualification or registration, and the Company will include such information in
the written notice to be provided to all other Holders. The right of any Holder to include its Registrable Securities in such qualification or registration is conditional upon such Holder’s participation in such underwriting (unless otherwise
mutually agreed upon by the Initiating Holders (or requesting Holders in the case of a U.S. Short-Form Demand Registration)) to the extent provided in this Agreement. All parties proposing to distribute their securities through such underwriting
will (together with the Company as required under this Agreement) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting by the Company and acceptable to the Initiating Holders (or
initial Holders in the case of a U.S. Short-Form Demand Registration). If such underwriter is not reasonably acceptable to the Initiating Holders (or initial Holders in the case of a U.S. Short-Form Demand Registration), such Holders may select an
underwriter or underwriters which is reasonably acceptable to the Company. 
 7.2 Underwriting in Piggy-Back Qualification or Registration 

In connection with any offering pursuant to Section 2.4 or Section 3.3 involving an underwriting of Common Shares being issued by the Company, the
Company will include in such underwriting any Registrable Securities that Holders wish to include, but only if such Holders accept the terms of the underwriting as agreed upon between the Company and the underwriter(s) selected by it. 

7.3 Limitations 
 No Holder is required, in connection
with any underwriting agreement entered into pursuant to Section 7.1 or Section 7.2, to make any representations or warranties or provide indemnification except as they relate to such Holder’s ownership of shares and authority to
enter into the underwriting agreement and to such Holder’s intended method of distribution, or except as may be required by the 1933 Act or the rules promulgated thereunder, or the rules and policies of an Recognized Stock Exchange on which the
Company’s securities may be listed. The liability of any Holder in connection with such underwriting agreement is to be limited to an amount equal to the net proceeds received by such Holder from the offering (after deduction of all
underwriters’ discounts and commissions paid by the Holder in connection with the offering). 
 7.4 Underwriter Cutback 

If the underwriter for the offering in connection with: 
  

	 	(a)	a Canadian Demand Qualification, a U.S. Long-Form Demand Registration or a U.S. Short-Form Demand Registration advises the Initiating Holders (or requesting Holders, in the case of a U.S. Short-Form Demand
Registration), advises (in writing) that it is of the opinion that inclusion of certain Registrable Securities would adversely affect the marketing of Common Shares to be underwritten, then the Initiating Holders (or requesting Holders, in the case
of a U.S. Short-Form Demand Registration) will so advise the Company and all Holders of Registrable Securities that would otherwise be underwritten pursuant to this Agreement, and the Company is required to include in the qualification or
registration only the number of Common Shares that the underwriter believes marketing factors allow; or 

	 	(b)	any offering pursuant to Section 2.4 or Section 3.3, advises (in writing) that it is of the opinion that inclusion of certain Registrable Securities would adversely affect the marketing of Common Shares to be
underwritten, then the Company is required to include in the qualification or registration only the number of Common Shares that the underwriter believes marketing factors allow; 

provided, however, that in each case ((a) and (b)), (i) the number of Registrable Securities included in the offering may not be reduced unless all other
securities (other than securities to be sold by the Company) are first entirely excluded from the offering, and (ii) the number of Registrable Securities included in the offering may not be reduced below 33% of the total number of securities
included in such offering, unless such offering is the IPO, in which case the selling Holders may be excluded further if the underwriters make the determination described above and no other stockholder’s securities are included in such
offering. 
 7.5 Allocation of Cutback 
  

	 	(a)	If the number of Common Shares to be included in a Canadian Demand Qualification, a U.S. Long-Form Demand Registration or a U.S. Short-Form Demand Registration is subject to an Underwriter Cutback pursuant to
Section 7.4(a), the Common Shares that would otherwise be included will be reduced in the following order: 

  

	 	(i)	first, all Common Shares held by shareholders other than the Holders will be excluded from the offering to the extent required; 

  

	 	(ii)	second, if further limitation is required, then the number of Common Shares other than those issued on the conversion of Preferred Shares, or the exchange of Common Exchangeable Shares issued on conversion of
Exchangeable Shares, will be reduced pro rata in accordance with the number of such shares held by each Holder of such shares; and 

  

	 	(iii)	third, if further limitation is required, then the number of Common Shares issued on the conversion of Preferred Shares, or the exchange of Common Exchangeable Shares issued on conversion of Exchangeable Shares, will be
reduced pro rata in accordance with the number of such shares held by each Holder of such shares. 

  

	 	(b)	If the number of Common Shares to be included in a Canadian Piggy-Back Qualification or a U.S. Piggy-Back Registration is subject to an Underwriter Cutback pursuant to Section 7.4(b), the Common Shares that would
otherwise be included will be reduced in the following order: 

  

	 	(i)	first, all Common Shares held by shareholders other than the Company and the Holders will be excluded from the offering to the extent required; 

	 	(ii)	second, if further limitation is required, then the number of Common Shares other than those issued on the conversion of Preferred Shares, or the exchange of Common Exchangeable Shares issued on conversion of
Exchangeable Shares, will be reduced pro rata in accordance with the number of such shares held by each Holder of such shares; and 

  

	 	(iii)	third, if further limitation is required, then, subject to the 33% limitation set forth in Subsection 7.4(b), the number of Common Shares issued on the conversion of Preferred Shares, or the exchange of Common
Exchangeable Shares issued on conversion of Exchangeable Shares, will be reduced pro rata in accordance with the number of such shares held by each Holder of such shares. 

ARTICLE 8 
 OBLIGATIONS
OF THE COMPANY 
 8.1 Effecting a Qualification or Registration 

If the Company is required under this Agreement to use its reasonable best efforts to effect a: 

 

	 	(a)	Canadian Demand Qualification, the Company will, as expeditiously as reasonably possible, prepare and file with the Qualifying Jurisdictions a preliminary prospectus and a final prospectus with respect to such
Registrable Securities and use, subject to the other provisions of this Agreement, its reasonable best efforts to obtain a receipt (or MRRS Receipt or similar document) in respect of the final prospectus and, upon the request of the Holders of a
majority of the Registrable Securities qualified by the final prospectus, keep such final prospectus effective for up to 120 days or until such earlier time at which such Holders have informed the Company in writing that the distribution of their
Common Shares has been completed; 

  

	 	(b)	U.S. Long-Form Demand Registration or a U.S. Short-Form Demand Registration, the Company will, as expeditiously as reasonably possible, prepare and file with the SEC a registration statement with respect to such
Registrable Securities and use, subject to the other provisions of this Agreement, its reasonable best efforts to cause such registration statement to become effective and, upon the request of the Holders of a majority of the Registrable Securities
registered under the registration statement, keep such registration statement effective for up to 120 days or until such earlier time at which such Holders have informed the Company in writing that the distribution of their Common Shares has been
completed (such 120-day or shorter period, the “Effectiveness Period”). 

 8.2 Additional Obligations for Canadian
Qualifications 
 In addition to its obligations under Section 8.1, if the Company is required to effect a Canadian Demand Qualification, the
Company will: 
  

	 	(a)	 use its reasonable best efforts to resolve any regulatory comments and satisfy any regulatory deficiencies in respect of the preliminary prospectus
and, as soon as reasonably practicable after such comments or deficiencies have been resolved or 

	 	
satisfied, prepare and file, and use its reasonable best efforts to obtain a receipt (or MRRS Receipt or similar document) in the Qualifying Jurisdictions for, the final prospectus, and take all
other steps and proceedings necessary in order to qualify the distribution of the Registrable Securities to the public as freely tradable securities in the Qualifying Jurisdictions; 

 

	 	(b)	ensure that the preliminary prospectus and final prospectus contain the disclosure required by, and conform in all material respects to the requirements of, the applicable provisions of Canadian Securities Laws and
furnish to the Holders copies of each of the preliminary prospectus and final prospectus and such other documents as they may reasonably request to facilitate the disposition of Registrable Securities by them; 

 

	 	(c)	prepare and file with the securities regulatory authorities in the Qualifying Jurisdictions any amendments and supplements to the preliminary prospectus and final prospectus that may be necessary to comply with Canadian
Securities Laws with respect to the distribution of all securities qualified by the preliminary prospectus and final prospectus; 

  

	 	(d)	in the case of an underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter of such offering; 

 

	 	(e)	furnish, at the request of any Holder requesting qualification of Registrable Securities pursuant to this Agreement, on the date that such Registrable Securities are delivered to the underwriters for sale in connection
with an offering pursuant to this Agreement, if such securities are being sold through underwriters, or, if such securities are not being sold through underwriters, on the Receipt Date: 

 

	 	(i)	an opinion or opinions, dated such date, of counsel representing the Company for the purposes of such offering, in form and substance as is customarily given by company counsel to the underwriters in an underwritten
public offering, addressed to the underwriters, if any, and to the Holders requesting qualification of Registrable Securities; and 

  

	 	(ii)	a letter dated such date, from the auditors of the Company, in form and substance as is customarily given by auditors to underwriters in an underwritten public offering, addressed to the underwriters, if any, and to the
Holders requesting qualification of Registrable Securities, but only if such Holders have made such representations and furnished such undertakings as such auditors reasonably require providing such letter; 

 

	 	(f)	keep each Holder whose Registrable Securities are being qualified reasonably advised of the status of such qualification; and 

	 	(g)	apply for listing and use its reasonable best efforts to list the Registrable Securities being registered on any national securities exchange on which a class of the Company’s equity securities is listed or, if the
Company does not have a class of equity securities listed on a national securities exchange, apply for qualification and use its reasonable best efforts to qualify the Registrable Securities being registered for inclusion on a Recognized Stock
Exchange. 

 8.3 Additional Obligations for U.S. Registrations 

In addition to its obligations under Section 8.1, if the Company is required under this Agreement to use its reasonable best efforts to effect the
registration of any Registrable Securities, the Company will: 
  

	 	(a)	use its reasonable best efforts to resolve any regulatory comments and satisfy any regulatory deficiencies in respect of the registration statement and the prospectus used in connection with such registration statement
and, as soon as reasonably practicable after such comments or deficiencies have been resolved or satisfied, prepare and file with the SEC such amendments and supplements to the registration statement and the prospectus used in connection with such
registration statement, and use its reasonable best efforts to cause each such amendment and supplement to become effective, as may be necessary to comply with the provisions of the 1933 Act with respect to the disposition of all Common Shares
covered by such registration statement during the Effectiveness Period; 

  

	 	(b)	(i) not take any action that would cause Rule 172 of the 1933 Act (“Rule 172”) to be unavailable, (ii) advise the Holders promptly of any failure by the Company to satisfy the conditions of Rule
172 and (iii) promptly furnish to the Holders such number of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the 1933 Act, and such other documents as they may reasonably request in order to
facilitate the disposition of Registrable Securities owned by them; 

  

	 	(c)	use its reasonable best efforts to register or qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such states and jurisdictions as is reasonably requested by
the Holders except that the Company is not required in connection therewith or as a condition thereto to qualify to do business, subject itself to taxation or file a general consent to service of process in any such state or jurisdiction;

  

	 	(d)	upon any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the lead underwriter(s) of such offering; 

 

	 	(e)	notify each Holder covered by such registration statement, at any time: 

  

	 	(i)	of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to
be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing; or 

	 	(ii)	upon the occurrence or existence of any pending corporate development that, in the reasonable discretion of the Company, makes it appropriate to suspend the availability of the registration statement and the related
prospectus. 

 In either of such cases, the Company will give written notice to the Holders that the availability of the
registration is suspended (which notice need not specify the nature of the event giving rise to such suspension) and the Holders will immediately suspend any further sale of Registrable Securities pursuant to the registration. The Company will use
its reasonable best efforts to amend or supplement as expeditiously as possible such prospectus in order to cause such prospectus not to include any untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in light of the circumstances then existing. Each Holder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in this
Section 8.3(e) (a “Suspension”), such Holder will discontinue its distribution of Registrable Securities until such Holder is advised in writing by the Company that such Suspension is no longer effective. For clarity, the
Company will provide such written notice at such time when the Suspension is no longer effective. Provided that a Suspension is not in effect, any Holder may sell Registrable Securities under such registration statement upon compliance with such
Holders’ obligations under this Section 8.3; 
  

	 	(f)	notify each Holder whose Registrable Securities are covered by such registration statement: 

  

	 	(i)	when the registration statement has become effective; 

  

	 	(ii)	when any post-effective amendment to the registration statement becomes effective; and 

  

	 	(iii)	of any request by the SEC for any amendment or supplement to the registration statement or prospectus or for additional information; 

 

	 	(g)	furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to this Agreement, on the date that such Registrable Securities are delivered to the underwriters for sale in connection
with a registration pursuant to this Agreement, if such securities are being sold through underwriters, or, if such securities are not being sold through underwriters, on the date that the registration statement with respect to such securities
becomes effective: 

  

	 	(i)	an opinion or opinions, dated such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given by company counsel to the underwriters in an
underwritten public offering, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities; and 

	 	(ii)	a letter dated such date, from the auditors of the Company, in form and substance as is customarily given by auditors to underwriters in an underwritten public offering, addressed to the underwriters, if any, and to the
Holders requesting registration of Registrable Securities, provided that such Holders have made such representations and furnished such undertakings as such accountants may reasonably require therefor; 

 

	 	(h)	apply for listing and use its reasonable best efforts to list the Registrable Securities being registered on any national securities exchange on which a class of the Company’s equity securities is listed or, if the
Company does not have a class of equity securities listed on a national securities exchange, apply for qualification and use its reasonable best efforts to qualify the Registrable Securities being registered for inclusion on a Recognized Stock
Exchange; and 

  

	 	(i)	without in any way limiting the types of registrations to which this Agreement applies, if the Company effects a “shelf registration” on Form S-1 or Form S-3 under Rule 415 promulgated under the 1933 Act, take
all necessary action, including the filing of post-effective amendments, to permit the Holders to include their Registrable Securities in such registration in accordance with the terms of this Agreement. 

8.4 Resales Under Rule 144 
 With a view to making
available to the Holders the benefits of Rule 144 promulgated under the 1933 Act (“Rule 144”) and any other rule or regulation of the SEC that may at any time permit a Holder to sell Common Shares of the Company to the public
without registration, and with a view to making it possible for Holders to have the resale of the Registrable Securities registered pursuant to a U.S. Short-Form Registration, the Company will: 

 

	 	(a)	use its reasonable best efforts to make and keep public information available, as those terms are understood and defined in Rule 144, at all times after 90 days following the effective date of the first registration
statement filed by the Company under the 1933 Act for the offering of its Common Shares to the general public; 

  

	 	(b)	as soon as practicable after a U.S. IPO, take such action, including the voluntary registration of its Common Shares under Section 12 of the 1934 Act or compliance with the reporting requirements of the 1934 Act,
as is necessary to enable the Holders to utilize Form S-3 for the sale of their Registrable Securities; 

  

	 	(c)	use its reasonable best efforts, after a U.S. IPO, to file with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act; and 

	 	(d)	furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon written request: 

  

	 	(i)	a written statement by the Company as to its compliance with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act (at any time after it has become subject to such reporting requirements), or as to its
qualification as a registrant whose securities may be resold pursuant to Form S-3 (at any time after it so qualifies); 

  

	 	(ii)	a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company; and 

 

	 	(iii)	such other documents as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such Common Shares without registration or pursuant to such form.

 8.5 Furnish Information 
 The
obligations of the Company to take any action pursuant to this Agreement in respect of the Registrable Securities of any Holder is conditional upon such Holder furnishing to the Company such information regarding itself, the Registrable Securities
and the intended method of disposition of such securities, as is required to effect the registration or qualification of Registrable Securities. 
 8.6
No Obligation to Complete Offering 
 The Company is under no obligation to complete any offering of its securities it proposes to make in connection
with a Canadian Piggy-Back Qualification or a U.S. Piggy-Back Qualification and will incur no liability to any Holder for its failure to do so. 

ARTICLE 9 

INDEMNIFICATION 
 9.1 Indemnification by
Company 
  

	 	(a)	If any Registrable Securities are included in a prospectus or a registration statement under this Agreement, the Company will indemnify and hold harmless each Holder, the officers, directors, partners, limited partners,
members, Affiliates, agents and employees of each Holder, any underwriter (within the meaning of the 1933 Act or the 1934 Act or under Canadian Securities Laws) for such Holder and each person, if any, that controls such Holder or underwriter
(within the meaning of the 1933 Act or the 1934 Act or under Canadian Securities Laws), against any losses (other than loss of profit), claims, damages or liabilities (joint or several) to which they may become subject under the 1933 Act, the 1934
Act, Canadian Securities Laws or any other federal, provincial or state law, insofar as such losses, claims, damages or liabilities (or actions in respect of them) arise out of or are based upon any of the following statements, omissions or
violations (each a “Violation”): 

	 	(i)	any untrue statement or alleged untrue statement of a material fact contained in such prospectus or registration statement (including any preliminary prospectus or final prospectus contained in the registration
statement) or any amendments or supplements to them; 

  

	 	(ii)	the omission or alleged omission to state in the prospectus or registration statement (including any preliminary or final prospectus contained in the registration statement) a material fact required to be stated in it
or necessary to make the statements in it, in light of the circumstances in which they were made, not misleading; or 

  

	 	(iii)	any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any state securities law, any rule or regulation promulgated under the 1933 Act, the 1934 Act or any state securities law or Canadian
Securities Laws in connection with any matter relating to such prospectus or registration statement. 

  

	 	(b)	The Company will reimburse each such Holder, officer, director, partner, limited partner, member, Affiliate, agent, employee, underwriter or controlling person for any legal or other out-of-pocket expenses reasonably
incurred by them in connection with investigating or defending any such loss, claim, damage, liability, or action. 

  

	 	(c)	The Company is not liable under the indemnity contained in this Section 9.1: 

  

	 	(i)	in respect of amounts paid in settlement of any loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent may not be unreasonably withheld, delayed or
conditioned); 

  

	 	(ii)	to the extent that it arises out of or is based upon a Violation that occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such qualification or registration
by or on behalf of such Holder, underwriter or controlling person; or 

  

	 	(iii)	in the case of a sale effected directly by a Holder of Registrable Securities (including a sale of such Registrable Securities through any underwriter retained by such Holder engaging in a distribution solely on behalf
of such Holder), where: 

  

	 	(A)	such untrue statement or alleged untrue statement or omission or alleged omission was contained in a preliminary prospectus and corrected in a final or amended prospectus; and 

 

	 	(B)	in the event the Company has advised such Holder in writing that the Company does not meet the conditions for using Rule 172 and the Company has provided such Holder with a copy of a corrected final or amended
prospectus and such Holder failed to deliver a copy of such final or amended prospectus at or prior to the confirmation of the sale of the Registrable Securities to the person asserting any such loss, claim, damage or liability. 

 9.2 Indemnification by Holder 
  

	 	(a)	Each Holder that includes any Registrable Securities in any prospectus or registration statement will indemnify and hold harmless the Company, each of its directors, each of its officers who have signed the prospectus
or registration statement, each person, if any, who controls the Company within the meaning of the 1933 Act or Canadian Securities Laws, each employee, agent, and any underwriter for the Company, and any other Holder selling securities in such
prospectus or registration statement or any of its directors, officers, partners, limited partners, members, agents or employees or any person who controls such Holder or such other shareholder or such underwriter, against any losses (other than
loss of profits), claims, damages, or liabilities (joint or several) to which the Company or any such director, officer, controlling person, employee, agent, underwriter or controlling person, or other such Holder, shareholder, director, officer or
controlling person may become subject, under the 1933 Act, the 1934 Act, Canadian Securities Laws or other federal, provincial or state law, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are
based upon any Violation, in each case only to the extent that such Violation occurs in reliance upon and in conformity with written information furnished by or on behalf of such Holder expressly for use in connection with such qualification or
registration. 

  

	 	(b)	Each such Holder will reimburse any legal or other expenses reasonably incurred by the Company or any such director, officer, controlling person, agent, underwriter or controlling person, other Holder, officer,
director, partner, limited partner, member, agent, employee, or controlling person in connection with investigating or defending any such loss, claim, damage, liability, or action. 

 

	 	(c)	The liability of any Holder under this indemnity is limited to the amount of net proceeds (after deduction of all underwriters’ discounts and commissions paid by such Holder in connection with the qualification or
registration in question) received by such Holder in the offering giving rise to the Violation, except in the case of fraud or willful misconduct by such Holder. 

  

	 	(d)	A Holder is not liable under the indemnity contained in this Section 9.2: 

  

	 	(i)	in respect of amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder (which consent may not be unreasonably withheld, delayed or
conditioned); 

  

	 	(ii)	in the case of a sale effected directly by the Company of its Common Shares (including a sale of such Common Shares through any underwriter retained by the Company to engage in a distribution solely on behalf of the
Company), where: 

	 	(A)	such untrue statement or alleged untrue statement or omission or alleged omission was contained in a preliminary prospectus and corrected in a final or amended prospectus; and 

 

	 	(B)	the Company failed to deliver a copy of the final or amended prospectus at or prior to the confirmation of the sale of the securities to the person asserting any such loss, claim, damage or liability in any case in
which such delivery is required by the 1933 Act or Canadian Securities Laws. 

  

	 	(e)	The obligations of the Holders under this indemnity are several, not joint or joint and several. 

 9.3
Indemnification Procedure 
  

	 	(a)	Promptly after receipt by an indemnified party under this Article of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect of such action is to
be made against any indemnifying party under this Article, deliver to the indemnifying party a written notice of the commencement of the action, and the indemnifying party may participate in, and, to the extent the indemnifying party so desires,
jointly with any other indemnifying party similarly noticed, assume and control the defense of such action with counsel mutually satisfactory to the parties. 

  

	 	(b)	An indemnified party may retain its own counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be
inappropriate due to actual or potential differing interests, as reasonably determined by either party, between such indemnified party and any other party represented by such counsel in such proceeding. 

 

	 	(c)	The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, will relieve such indemnifying party
of any liability to the indemnified party under this Article to the extent of such prejudice, but the omission to deliver written notice to the indemnifying party does not relieve it of any liability that it may have to any indemnified party
otherwise than under this Article. 

 9.4 Contribution 

If the indemnification provided for in this Article 9 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to
any loss, liability, claim, damage or expense referred to in this Agreement, then the Company and such Holder will contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (after contribution from others) in
such proportion so that such Holder is responsible for the portion represented by the percentage that the public offering price of its Registrable Shares offered by the registration statement bears to the public offering price of all securities
offered by such registration statement, and the Company is 

 
responsible for the remaining portion; provided, however, that, in any such case, (A) no such Holder will be required to contribute any amount in excess of the amount of net
proceeds (after deduction of all underwriters’ discounts and commissions paid by such Holder in connection with the qualification or registration in question) received by such Holder in the offering giving rise to the events described in this
Section 9.4, except in the case of fraud or willful misconduct by such Holder; and (B) no person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) will be entitled to contribution
from any person or entity who was not guilty of such fraudulent misrepresentation. The relative fault of the indemnifying party and of the indemnified party is to be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. 
 9.5 Survival of Indemnities 

The obligations of the Company, the Holders under this Article survive the completion of any offering of Registrable Securities under a prospectus or in a
registration statement whether under this Agreement or otherwise. Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the
underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control. 

ARTICLE 10 
 ASSIGNMENT
OF REGISTRATION RIGHTS 
 10.1 Assignment 
 The
rights of the Holders under this Agreement may be assigned by any Holder: (i) to any member of the Related Group of the Holder; (ii) to any partner (current or former), member or stockholder of such Holder or transferee or an account
managed or advised by the manager or adviser of such Holder or transferee who acquires Preferred Shares from the Holder; (iii) to a trust in respect of which such Holder serves as trustee, provided however that the trust instrument governing
such trust shall provide that such Holder, as trustee, shall retain sole and exclusive control over the voting and disposition of such rights until the termination of this Agreement; or (iv) to any transferee that acquires at least 1,500,000 of
the Preferred Shares owned by a Holder. 
 10.2 Conditions to Transfer from a Holder 

Any transferee to whom rights under this Agreement are transferred from a Holder: 
  

	 	(a)	as a condition to such transfer, will promptly deliver to the Company a written instrument by which such transferee agrees to be bound by the obligations imposed upon Holders under this Agreement to the same extent as
if such transferee were a Holder under this Agreement; and 

  

	 	(b)	is deemed to be a Holder under this Agreement. 

 ARTICLE 11 

MISCELLANEOUS PROVISIONS 
 11.1
Limitations on Subsequent Registration Rights 
 From and after the date of this Agreement, the Company will not, without prior Holder Approval, enter
into any agreement with any holder or prospective holder of any securities of the Company granting to such holder or prospective holder registration rights unless such rights granted to such holders are junior in all respects to the rights granted
to the Holders pursuant to this agreement. 
 11.2 No Prior Registration Rights 

The Company represents and warrants to the Holders that, other than the Prior Agreement, no qualification or registration rights relating to securities of the
Company have been granted by the Company prior to, or are being granted concurrently with, the execution of this Agreement. 
 11.3 Amending or
Supplementing Prospectuses or Registration Statements 
 Whenever a distribution under a prospectus qualifying Registrable Securities pursuant to this
Agreement has not been completed, or a registration statement covering Registrable Securities pursuant to this Agreement is effective, and the Company determines that, based upon advice of counsel, such prospectus or registration statement requires
amendment or supplementing, the Company will notify all Holders of such fact and will promptly cause such prospectus or registration statement to be amended or supplemented, as the case may be, and will notify all Holders when such amendment or
supplement has been filed and, as to any such amendment of a registration statement, declared effective. Holders will not sell any Registrable Securities until such latter notice is provided. If the board of directors of the Company determines in
its reasonable discretion that it would not be in the best interests of the Company to so amend or supplement the prospectus or registration statement at such time, the Company is entitled to delay the filing of such amendment or supplement for a
period not to exceed 60 days. 
 11.4 Termination of Registration Rights 

The qualification and registration obligations of the Company pursuant to this Agreement terminate, with respect to any Holder, on the earlier of: 

 

	 	(a)	the date that is five years following the date of a Qualified IPO; and 

  

	 	(b)	the date upon which all of the Holder’s Registrable Securities may be resold pursuant to Rule 144 under the 1933 Act without regard to the limitations on the amount of securities that may be sold in a given period
under Rule 144(e) (or any successor provision thereto). 

 11.5 Merger, Etc. 

Upon any merger, amalgamation, consolidation, arrangement or other reorganization involving the Company in which Holders receive, in exchange for their
Registrable Securities, securities of any entity that are not freely tradable, the rights of the Holders under this Agreement remain in effect except that such rights relate to the securities received by the Holders upon such exchange. 

 ARTICLE 12 

GENERAL 
 12.1 Notices 

All notices, requests, consents and demands must be in writing and must be personally delivered (effective upon receipt), faxed (effective upon receipt of the
fax in complete, readable form), or sent via a reputable overnight courier service (effective the following Business Day), to the Company at: 

if to the Company or the Canadian Company, at: 

Suite 600 – 555 West 12th Avenue 

V5Z 3X7 Canada 
 Attention:
        David Main 
 Facsimile:         (778) 331-4486 

with a copy sent at the same time and by the same means to each of: 

McCarthy Tétrault LLP 
 777
Dunsmuir Street Suite 1300 
 PO Box 10424 Pacific Centre 

Vancouver BC V7Y 1K2 
 Attention:
        Robin Mahood 
 Facsimile:         (604) 622-5796

 Cooley LLP 
 719 Second
Avenue 
 Suite 900 
 Seattle,
WA 98104 
 Attention:         Gordon Empey 

Facsimile:         (206) 452-8800 

or to the Investors at their respective addresses set out on Schedule A or Schedule B hereto, or, in any case, as notified in writing to the other parties to
this Agreement, 

 with a copy sent at the same time and by the same means to: 

Ropes & Gray LLP 
 1900
University Avenue, 6th Floor 
 East Palo Alto, CA 94303 

Attention: Lowell A. Segal 

Facsimile: 650-566-4244 
 and 

Blake, Cassels & Graydon LLP 

199 Bay Street 
 Suite 4000,
Commerce Court West 
 Toronto ON M5L 1A9 

Attention: Cheryl L. Satin 

Facsimile: 416-863-2653 
 12.2 Amendments,
Waivers and Consents 
 Modifications or amendments to this Agreement may be made, and compliance with any covenant or provision of this Agreement may be
omitted or waived, if the Company agrees to such modification, amendment or waiver and the Company: 
  

	 	(a)	obtains the consent in writing from Holders holding or having the right to acquire in the aggregate at least 60% of the Registrable Securities; and 

 

	 	(b)	in each such case, deliver copies of such consent in writing to any Holders who did not execute the consent, 

but only if no Holder, without its consent, is adversely affected by any such modification, amendment or waiver in any manner in which the other Holders are
not likewise adversely affected. 
 12.3 Binding Effect 

This Agreement enures to the benefit of and is binding upon the heirs, executors, personal representatives, successors (including any successor by reason of
amalgamation of any party) and permitted assigns of the parties to this Agreement. 
 12.4 Assignment by Company 

The Company may not assign its obligations under this Agreement or any interest in this Agreement without obtaining the prior written consent of Holders
holding or having the right to acquire in the aggregate at least 60% of the Registrable Securities. 
 12.5 Execution and Delivery 

This Agreement may be executed by the parties in counterparts and may be executed and delivered by facsimile and all such counterparts and facsimiles shall
together constitute one and the same agreement. 

 12.6 Specific Performance 

The Company recognizes that the rights of the Holders under this Agreement are unique and, accordingly, the Holders will, in addition to such other remedies
available to them at law or in equity, have the right to enforce their rights under this Agreement by actions for injunctive relief and specific performance to the extent permitted by law. This Agreement is not intended to limit or abridge any
rights of the Holders that exist apart from this Agreement. 
 12.7 Independent Legal Advice 

Each of the parties to this Agreement acknowledge and agree that McCarthy Tétrault LLP and Cooley LLP have acted as counsel only to the Companies, and
that McCarthy Tétrault LLPand Cooley LLP are not protecting the rights and interests of any other party to this Agreement. The other parties to this Agreement acknowledge and agree that the Companies, McCarthy Tétrault LLP and Cooley
LLP have given them the opportunity to seek, and have recommended that such parties obtain, independent legal advice with respect to the subject matter of this Agreement and the other transaction documents and, further, each of the other parties
hereby represent and warrant to the Companies, McCarthy Tétrault LLP and Cooley LLP that such party has sought independent legal advice or waives such advice. 

12.8 Effect on Prior Agreement 
 The Prior Agreement is
hereby amended in its entirety and restated herein. The Holders (as defined in the Prior Agreement) that do not execute this Agreement shall nonetheless be a party to and bound by this Agreement by reason of their execution of the Prior Agreement.
All provisions of, rights granted and covenants made in the Prior Agreement are hereby waived, released and superseded in their entirety and shall have no further force or effect. 

IN WITNESS WHEREOF, the parties have duly executed this Agreement. 

[signature pages follow] 

							
	AQUINOX PHARMACEUTICALS (USA) INC.	 	JOHNSON & JOHNSON DEVELOPMENT CORPORATION
				
	Per:	 	 /s/ David Main
	 	Per:	 	 /s/ Asish K. Xavier

		 	(Authorized Signatory)	 		 	Asish K. Xavier, Ph.D.
		 		 	Principal/Executive Director, Venture
		 		 	Investments
	VENTURES WEST 8 LIMITED	 	
	PARTNERSHIP, by its General Partner,	 	B.C. ADVANTAGE FUNDS (VCC) LTD.
	Ventures West 8 Management Ltd.	 	
			
	Per:	 	 /s/ Illegible
	 	
		 	(Authorized Signatory)	 	Per:	 	 /s/ Illegible

		 		 	(Authorized Signatory)
	Per:	 	 /s/ Illegible
	 	
		 	(Authorized Signatory)	 		 	
		
	14159, L.P.	 	BAKER BROTHERS LIFE SCIENCES, L.P.
	By:	 	BAKER BROS. ADVISORS, LLC,	 	By:	 	BAKER BROS. ADVISORS, LLC,
		 	management company and investment adviser	 		 	management company and investment
		 	to 14159, L.P., pursuant to authority granted to	 		 	adviser to Baker Brothers Life Sciences,
		 	it by 14159 Capital, L.P., general partner to	 		 	L.P., pursuant to authority granted to it
		 	14159, L.P., and not as the general partner.	 		 	by Baker Brothers Life Sciences Capital,
		 		 	L.P., general partner to Baker Brothers
	By:	 	 /s/ Scott Lessing
	 		 	Life Sciences, L.P., and not as the
		 	Name: Scott Lessing	 		 	general partner.
		 	Title: President	 		 	
		 		 	By:	 	 /s/ Scott Lessing

		 		 		 	Name: Scott Lessing
		 		 		 	Title: President
		
	BAKER BROS. INVESTMENTS II, L.P.	 	667, L.P.
	By:	 	BAKER BROS. ADVISORS, LLC,	 	By:	 	BAKER BROS. ADVISORS, LLC,
		 	management company and investment	 		 	management company and investment adviser
		 	adviser to BAKER BROS. INVESTMENTS	 	to 667, L.P., pursuant to authority granted to it
		 	II, L.P., pursuant to authority granted to it by	 		 	by Baker Biotech Capital, L.P., general
		 	Baker Bros. Capital, L.P., general partner to	 		 	partner to 667, L.P., and not as the general
		 	Baker Bros. Investments II,, L.P., and not as	 		 	partner.
		 	the general partner.	 		 	
				
		 		 	By:	 	 /s/ Scott Lessing

	By:	 	 /s/ Scott Lessing
	 		 	Name: Scott Lessing
		 	Name: Scott Lessing	 		 	Title: President
		 	Title: President	 		 	

 [Signature Page to Amended and Restated Qualification and Registration Rights Agreement] 

			
	 AUGMENT INVESTMENTS LTD.

		
	 Per:
	 	 /s/ Egor Rulkor

		 	Egor Rulkor
		 	Attorney in Fact by Power of Atttorney
	
	 PFIZER INC.

		
	 Per:
	 	 /s/ Barbara Dalton

		 	(Authorized Signatory)

 [Signature Page to Amended and Restated Qualification and Registration Rights Agreement] 

 SCHEDULE A 

SERIES A INVESTORS 
  

			
	 Series A Investors
	  	 Address

	Johnson & Johnson Development Corporation                    	  	410 George Street, New Brunswick, NJ 08901
	Baker Bros. Investments II, L.P.	  	667 Madison Avenue 17th Floor, New York, NY 10021
	667, L.P.	  	667 Madison Avenue 17th Floor, New York, NY 10021
	14159, L.P.	  	667 Madison Avenue 17th Floor, New York, NY 10021
	Baker Brothers Life Sciences, L.P.	  	667 Madison Avenue 17th Floor, New York, NY 10021
	Ventures West 8 Limited Partnership	  	Suite 2500—1066 West Hastings Street, Vancouver, B.C. V6E 3X1, Fax: 604-687-2145
	B.C. Advantage Funds (VCC) Ltd.	  	Suite 1280, 885 W. Georgia St., Vancouver BC, V6C 3E8, Fax: (604) 688-6166

 SERIES B INVESTORS 
  

			
	 Series B Investors
	  	 Address

	
Johnson & Johnson Development Corporation              
      
	  	410 George Street, New Brunswick, NJ 08901
	 Baker Bros. Investments II, L.P.
	  	667 Madison Avenue 17th Floor, New York, NY 10021
	 667, L.P.
	  	667 Madison Avenue 17th Floor, New York, NY 10021
	 14159, L.P.
	  	667 Madison Avenue 17th Floor, New York, NY 10021
	 Baker Brothers Life Sciences, L.P.
	  	667 Madison Avenue 17th Floor, New York, NY 10021
	 Ventures West 8 Limited Partnership
	  	Suite 2500—1066 West Hastings Street, Vancouver, B.C. V6E 3X1, Fax: 604-687-2145
	 B.C. Advantage Funds (VCC) Ltd.
	  	Suite 1280, 885 W. Georgia St., Vancouver BC, V6C 3E8, Fax: (604) 688-6166
	 Pfizer Inc.
	  	235 East 42nd Street, New York , NY 10017

 SERIES C INVESTORS 

 

			
	 Series C Investors
	  	 Address

	
Augment Investments, Ltd.                   
                                 
	  	15 Dimokritou, PANARETOS ELIANA COMPLEX, office/flat 104, 4041 Potamos Germasogeias, Limassol, Cyprus

  
 - 2 - 

 SCHEDULE B 

to the Aquinox Pharmaceuticals (USA) Inc., 

Amended and Restated Qualification and Registration Rights Agreement 

COUNTERPART SIGNATURE PAGE 
 THE
UNDERSIGNED, —, has purchased [— shares of Series — Preferred Stock of
Aquinox Pharmaceuticals (USA) Inc.,] [— Exchangeable Shares of Aquinox Pharmaceuticals Inc.] , and hereby undertakes and agrees to become a party to and to be bound by the terms
and conditions of the Amended and Restated Qualification and Registration Rights Agreement made between Aquinox Pharmaceuticals (USA) Inc., and certain of its shareholders on or about the —
day of March, 2013, a copy of which agreement the undersigned acknowledges having received. 
 IN WITNESS WHEREOF this
                day of                     ,
                        . 
  

			
	 	 	  

	 	 	Shareholder
	By:	 	  

	Name:	 	
	Title:	 	
	Address:	 	  

		 	  

		 	  

		 	

 
					
	Name and class of shares held:	 	_________________

  
 - 3 -Shareholder Agreement of the Registrant

 Exhibit 4.2 

AMENDED & RESTATED SHAREHOLDERS’ AGREEMENT 

THIS AMENDED & RESTATED SHAREHOLDERS’ AGREEMENT is made as of March 19, 2013 among the U.S. Company, the Canadian Company and the
parties listed in Schedule A hereto. 
 WHEREAS: 
  

	A.	The U.S. Company, the Canadian Company and the shareholders of the U.S. Company and the Canadian Company listed in Schedule A entered into a shareholders’ agreement dated for reference June 8, 2007,
which agreement (the “Original Shareholders’ Agreement”) was amended and restated as of March 31, 2010 and June 14, 2010, and amended as of February 24, 2012, relating to the establishment of certain rights and
obligations in respect of the conduct of the affairs of the U.S. Company and the Canadian Company, the holding and sale of their respective securities, and certain other matters; and 

 

	B.	The parties wish to amend and restate the Original Shareholders’ Agreement to add Augment (as defined below) as a party and as provided herein; 

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the premises, the mutual covenants and agreements set forth in this Agreement and other
good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged by each of the parties), the parties hereby agree as follows: 

ARTICLE 1 — INTERPRETATION 
  

	1.1	Interpretation — In this Agreement, unless otherwise provided: 

  

	(a)	“Acquisition” means any bona fide acquisition of any shares or business assets by either Company, whether by purchase, exchange, amalgamation or otherwise, from an arms-length third party for fair
market value; 

  

	(b)	“Advantage” means B.C. Advantage Funds (VCC) Ltd.; 

  

	(c)	“Affiliate” means, with respect to any entity, any Person directly or indirectly Controlled by, Controlling or under common Control with such entity; 

 

	(d)	“Agreement” means this shareholders’ agreement, together with any amendments to or restatements or replacements of this shareholders’ agreement; 

 

	(e)	“Associate” has the same meaning as has been designated to that term in the Company Act; 

  

	(f)	“Augment” means Augment Investments Ltd.; 

  

	(g)	“BBI” means, collectively, Baker Bros. Investments II, L.P., 667 L.P. (formerly Baker Biotech Fund I, L.P.), 14159, L.P., and Baker Brothers Life Sciences, L.P.; 

 

	(h)	“Board” means the board of directors of the U.S. Company or the Canadian Company, as the case may be, and “Boards” shall mean the boards of directors of both Companies;

	(i)	“Board approval”, “approval of the Board”, “determined by the Board”, “as the Board determines” or any such similar terminology denoting approval of
the Board means approval of the Board of the U.S. Company and Canadian Company, respectively, determined by majority vote of those Directors present at a duly called and convened meeting of such Board at which the matter is considered or by a
written resolution signed by all Directors which may be signed in one or more counterparts which together shall be treated as one and the same document; 

  

	(j)	“Business” means the business carried on at any time or proposed to be carried on in the near term by the Companies including, without limitation, the business of investigating, discovering, developing,
evaluating, or commercializing pharmaceutical compositions that may be useful modifiers of SHIP/SHIP2 enzyme activity, or any other enzyme or technology for which the Companies have, at the date hereof, initiated a plan or program of investigation,
discovery, development, evaluation or commercialization; 

  

	(k)	“Business Day” means any day except a Saturday or Sunday, on which the Royal Bank of Canada in Vancouver, British Columbia and the Bank of America in Seattle, Washington are both open for commercial
banking business during normal banking hours; 

  

	(l)	“Canadian Company” means Aquinox Pharmaceuticals Inc. and includes any successor resulting from any amalgamation, merger, arrangement or other reorganization of or including the Canadian Company or any
continuance under the laws of another jurisdiction; 

  

	(m)	“Canadian Exchangeable Shares” means the Common Exchangeable Shares, the Class A Exchangeable Shares, the Class B Exchangeable Shares and the Class C Exchangeable Shares of the Canadian Company;

  

	(n)	“Canadian Special Voting Shares” means the special voting shares in the capital of the Canadian Company; 

  

	(o)	“Change of Control” means any “Change of Control” pursuant to the terms of the U.S. Certificate; 

  

	(p)	“Class A Exchangeable Shares” means the Class A exchangeable preferred shares in the capital of the Canadian Company; 

 

	(q)	“Class B Exchangeable Shares” means the Class B exchangeable preferred shares in the capital of the Canadian Company; 

 

	(r)	“Class C Exchangeable Shares” means the Class C exchangeable preferred shares in the capital of the Canadian Company; 

 

	(s)	“Common Director” has the meaning set out in Section 3.1(a)(i) of this Agreement; 

  

	(t)	“Common Shares” means the shares of common stock in the capital of the U.S. Company; 

  

	(u)	“Common Special Voting Stock” means the shares of common special voting stock in the capital of the U.S. Company; 

  

	(v)	“Companies” means, collectively, the U.S. Company and the Canadian Company and “Company” shall mean either of them; 

 

	(w)	“Company Act” means the Canada Business Corporations Act, as it may be amended from time to time, or any corporations act under which the Canadian Company may be continued from time to time, and
every statute that may be substituted therefor, and in the case of any such amendment or substitution, any reference in this Agreement to the Company Act shall be read as referring to the amended or substituted provisions therefor;

  
 2 

	(x)	“Constating Documents” means the articles or certificate of incorporation, continuance or amalgamation pursuant to which a corporation was incorporated, continued or amalgamated, as the case may be,
together with any amendments thereto or replacements thereof, and the by-laws (if any) of such corporation; 

  

	(y)	“Control” or “Controls” means, in relation to a corporation or other legal entity: 

  

	 	(i)	the right to cast a majority of the votes which may be cast at a general meeting of holders of equity shares of that corporation or other legal entity, including votes which are exercisable only upon the occurrence of a
contingency where such contingency has occurred and is continuing; or 

  

	 	(ii)	the right to elect or appoint, directly or indirectly, a majority of the directors of that corporation or other legal entity or other persons who have the right to manage or supervise the affairs and business of the
corporation or other legal entity; 

  

	(z)	“Delaware Act” means the Delaware General Corporation Law, as it may be amended from time to time, or any act under which the U.S. Company may be continued from time to time, and every statute that
may be substituted therefor, and in the case of any such amendment or substitution, any reference in this Agreement to the Delaware Act shall be read as referring to the amended or substituted provisions thereof; 

 

	(aa)	“Directors” means the persons who are, from time to time, elected or appointed directors of the Companies and a “Director” means any one of them; 

 

	(bb)	“Environmental Laws” means any applicable federal, provincial, state, municipal and local laws, statutes, ordinances, by-laws, regulations and orders, directives and decisions, approvals of all
governmental authorities or administrative or regulatory agency related to environmental, health, occupational safety and product liability matters, in effect from time to time; 

 

	(cc)	“Equity Securities” means: 

  

	 	(i)	U.S. Shares or any other security of the U.S. Company that carries the residual right to participate in the earnings of the U.S. Company and, on liquidation, dissolution or winding-up, in the assets of the
U.S. Company, whether or not the security carries voting rights; 

  

	 	(ii)	any warrants, options or rights entitling the holders thereof to purchase or acquire any such securities; and 

  

	 	(iii)	any securities issued by the Canadian Company which are convertible or exchangeable, directly or indirectly, into such securities (including securities exchangeable pursuant to the Exchange Rights); 

 

	(dd)	“Exchange Agreement” means the Amended & Restated Exchange Agreement, dated as of March 19, 2013, by and among the U.S. Company, the Canadian Company and all shareholders of each
of the Companies; 

  

	(ee)	“Exchange Rights” means the rights of a holder of Canadian Exchangeable Shares to receive, in exchange for such Canadian Exchangeable Shares. consideration consisting, in whole or in part, of shares in
the capital stock of the U.S. Company pursuant to the Constating Documents of the Companies or the Exchange Agreement and the corresponding right of the Canadian Company to acquire such shares in exchange for such consideration; 

  
 3 

	(ff)	“Exchangeable Preferred Shares” means, collectively, the Class A Exchangeable Shares, the Class B Exchangeable Shares and the Class C Exchangeable Shares of the Canadian Company;

  

	(gg)	“FCPA” has the meaning set out in Section 3.16 of this Agreement; 

  

	(hh)	“Founders” means Raymond J. Andersen, Gerald Krystal, Gerald Krystal and Jacqueline Lea Krystal as trustees of the Krystal Family Trust, David Main, David J. Main and Karen M. Main as trustees of the
Main Family Trust, Alice Low Fung Mui, Christopher John Ong and Christopher John Ong as trustee of the CJ Ong Family Trust; 

  

	(ii)	“Fully Converted Basis” at any time means that all Shares then outstanding which are convertible or exchangeable (directly or indirectly) (including pursuant to the Exchange Rights) into Common Shares
at that time shall be deemed to have been fully converted and exchanged into Common Shares, in accordance with the rights, privileges, restrictions and conditions attached thereto, and Common Shares issuable as a result thereof shall be deeme d to
have been issued and to form part of the holdings of the Person(s) entitled to receive such Common Shares and assuming the redemption of all Special Voting Stock in accordance with the rights, privileges, restrictions and conditions attached
thereto. For clarity, such basis does not include options or warrants that are exercisable or exchangeable (directly or indirectly) (including pursuant to the Exchange Rights) into Common Shares; 

 

	(jj)	“Fully Diluted Basis” at any time means that all options, warrants or other rights of any kind to acquire Common Shares and all securities convertible or exchangeable (directly or indirectly) (including
pursuant to the Exchange Rights) into Common Shares outstanding at that time shall be deemed to have been fully exercised, converted or exchanged, as the case may be, and the Common Shares issuable as a result thereof shall be deemed to have been
fully issued and to form part of the holdings of the Person(s) entitled to receive such Common Shares and assuming the redemption of all Special Voting Stock in accordance with the rights, privileges, restrictions and conditions attached thereto;

  

	(kk)	“Incentive Compensation Plans/ESOPs” means the Incentive Compensation Plans/ESOPs described in, and established or modified in accordance with, Section 3.14 of this Agreement; 

 

	(ll)	“Independent Director” has the meaning set out in Section 3.1(a)(v) of this Agreement; 

  

	(mm)	“Investor Approval” means the written approval of the Investors holding not less than 60% of the votes attaching to the Series Preferred Stock and Series Special Voting Stock; 

 

	(nn)	“Investor Nominee Directors” has the meaning given to such term in Section 3.1(a) of this Agreement; 

  

	(oo)	“Investors” means the Series A Investors, Series B Investors and Series C Investors who become Shareholders (and/or their respective Affiliates, Associates, successors and permitted assigns) and
“Investor” means any one of them, provided that if any of the above-mentioned parties ceases to be a party to this Agreement without such successor or permitted assignee, then “Investors” means the remaining parties
or party alone and “Investor” means any one of them; 

  

	(pp)	“JJDC” means Johnson & Johnson Development Corporation; 

  

	(qq)	“JJDC Director” has the meaning set out in Section 3.1(a)(iii) of this Agreement; 

  
 4 

	(rr)	“Material Adverse Effect” means, with reference to a Company, when taken as a whole, a material adverse effect on the condition (financial or otherwise), operations, business, assets, property or
prospects of the Company, or on its ability to consummate the transactions contemplated by the Series C Subscription Agreement; provided, however, that Material Adverse Effect shall not be deemed to include the impact of (i) any change in
generally accepted accounting principles applicable to a Company or (ii) any change in general economic, regulatory or political conditions, the capital markets or the industry in which the Companies are engaged in business, but only to the
extent that such changes referenced in clauses (i) and (ii) do not have a disproportionate effect on such Company as compared to other industry participants; 

 

	(ss)	“Person” means any individual, partnership, joint venture, syndicate, sole proprietorship, company or corporation with or without share capital, trust, trustee, executor, administrator, or other legal
personal representatives, regulatory body or agency, government or governmental agency, authority or entity howsoever designated or constituted; 

  

	(tt)	“Purchase” includes any purchase, acquisition or other arrangement by which a Person obtains beneficial ownership of a security from another Person, whether or not voluntarily and whether or not for
value, and any agreement to effect any of the foregoing; and the words “purchased”, “purchasing” and similar words have corresponding meanings; 

 

	(uu)	“PVI” means Pfizer Inc.; 

  

	(vv)	“PVI Director” has the meaning given to such term in Section 3.1(a)(iv) of this Agreement; 

  

	(ww)	“Qualified IPO” has the meaning given to such term in the U.S. Certificate; 

  

	(xx)	“Registration Rights Agreement” has the meaning given to such term in Section 8.1 of this Agreement; 

  

	(yy)	“SBVCA” means the Small Business Venture Capital Act (British Columbia) and the regulations thereto as amended from time to time, and every statute that may be substituted therefor, and in the
case of any such amendment or substitution, any reference in this Agreement to the SBVCA shall be read as referring to the amended or substituted provisions therefor; 

 

	(zz)	“Series A Investors” means the parties listed in Schedule A hereto who hold Class A Exchangeable Shares of the Canadian Company or Series A Preferred Stock of the U.S. Company (and/or their
respective Affiliates, Associates, successors and permitted assigns) and “Series A Investor” means any one of them, provided that if any of the above-mentioned parties ceases to be a
party to this Agreement without such successor or permitted assignee, then “Series A Investors” means the remaining parties or party alone and “Series A Investor” means any one of them; 

 

	(aaa)	“Series A Preferred Stock” means the shares of Series A-1 preferred stock and Series A-2 preferred stock in the capital of the U.S. Company; 

 

	(bbb)	“Series A Special Voting Stock” means the shares of Series A-1 special voting stock and the Series A-2 special voting stock in the capital of the U.S. Company; 

 

	(ccc)	“Series A Subscription Agreement” means that certain stock subscription agreement dated June 8, 2007 between the Canadian Company, the U.S. Company and certain purchasers of shares of Series A
Preferred Stock of the U.S. Company and certain purchasers of Class A Exchangeable Shares in the capital of the Canadian Company; 

  
 5 

	(ddd)	“Series B Investors” means the parties listed in Schedule A hereto who hold Class B Exchangeable Shares of the Canadian Company or Series B Preferred Stock of the U.S. Company (and/or their
respective Affiliates, Associates, successors and permitted assigns) and “Series B Investor” means any one of them, provided that if any of the above-mentioned parties ceases to be a party to this Agreement without such successor or
permitted assignee, then “Series B Investors” means the remaining parties or party alone and “Series B Investor” means any one of them; 

 

	(eee)	“Series B Preferred Stock” means the shares of Series B-1 preferred stock and Series B-2 preferred stock in the capital of the U.S. Company; 

 

	(fff)	“Series B Special Voting Stock” means the shares of Series B-1 special voting stock and the Series B-2 special voting stock in the capital of the U.S. Company; 

 

	(ggg)	“Series B Subscription Agreement” means that certain stock subscription agreement dated as of March 31, 2010 between the Canadian Company, the U.S. Company and certain purchasers of shares of
Series B Preferred Stock of the U.S. Company and certain purchasers of Class B Exchangeable Shares of the Canadian Company (as supplemented by that certain subscription agreement supplement dated June 14, 2010); 

 

	(hhh)	“Series C Investors” means the parties listed in Schedule A hereto who hold Class C Exchangeable Shares of the Canadian Company or Series C Preferred Stock of the U.S. Company (and/or their
respective Affiliates, Associates, successors and permitted assigns) and “Series C Investor” means any one of them, provided that if any of the above-mentioned parties ceases to be a
party to this Agreement without such successor or permitted assignee, then “Series C Investors” means the remaining parties or party alone and “Series C Investor” means any one of them; 

 

	(iii)	“Series C Preferred Stock” means the shares of Series C preferred stock in the capital of the U.S. Company; 

  

	(jjj)	“Series C Special Voting Stock” means the shares of Series C special voting stock in the capital of the U.S. Company; 

 

	(kkk)	“Series C Subscription Agreement” means that certain stock subscription agreement dated as of March 19, 2013 between the Canadian Company, the U.S. Company and certain purchasers of shares of
Series C Preferred Stock of the U.S. Company and certain purchasers of Class C Exchangeable Shares of the Canadian Company, as may be amended from time to time in accordance with its terms; 

 

	(lll)	“Series Preferred Stock” means the Series A Preferred Stock, the Series B Preferred Stock and the Series C Preferred Stock; 

 

	(mmm)	“Series Special Voting Stock” means the Series A Special Voting Stock, the Series B Special Voting Stock and the Series C Special Voting Stock; 

 

	(nnn)	“Shareholders” means the Persons who hold securities of the Companies who have executed this Agreement or who from time to time hold securities of the Companies and have agreed to become bound by this
Agreement (or their respective successors or permitted assigns), but shall not include the U.S. Company, which may from time to time hold securities of the Canadian Company, and a “Shareholder” means any one of them;

  

	(ooo)	“Shares” means shares of any class or series in the share capital of the Companies from time to time; 

  
 6 

	(ppp)	“Special Voting Stock” means the Series Special Voting Stock and Common Special Voting Stock of the U.S. Company and the Canadian Special Voting Shares of the Canadian Company; 

 

	(qqq)	“Subscription Agreements” means, collectively, the Series A Subscription Agreement, the Series B Subscription Agreement and the Series C Subscription Agreement; 

 

	(rrr)	“Subsidiary” means a subsidiary of either of the Companies within the meaning of the Company Act and “Subsidiaries” means more than one subsidiary; 

 

	(sss)	“Support Agreement” means the Amended & Restated Support Agreement, dated as of March 19, 2013, by and between the U.S. Company and the Canadian Company; 

 

	(ttt)	“Transfer” includes any sale, exchange, assignment, gift, bequest, disposition, mortgage, charge, pledge, encumbrance, grant of a security interest or other arrangement by which possession, legal title
or beneficial ownership passes from one Person to another, or to the same Person in a different capacity, whether or not voluntarily and whether or not for value, and any agreement to effect any of the foregoing; and the words
“Transferred”, “Transferring” and similar words have corresponding meanings; provided however, that “Transfer”, “Transferring” and similar words shall not include the exchange or
redemption of any Canadian Exchangeable Shares or Special Voting Stock under the terms of the Exchange Agreement, the Constating Documents of the Canadian Company or the U.S. Certificate; 

 

	(uuu)	“U.S. Company” means Aquinox Pharmaceuticals (USA) Inc. and includes any successor resulting from any amalgamation, merger, arrangement or other reorganization of or including the U.S. Company or any
continuance under the laws of another jurisdiction; 

  

	(vvv)	“U.S. Certificate” means the Sixth Amended and Restated Certificate of Incorporation of the U.S. Company, as amended and/or amended and restated, from time to time; 

 

	(www)	“U.S. Shares” means shares of any class in the share capital of the U.S. Company from time to time; 

  

	(xxx)	“VW” means Ventures West 8 Limited Partnership; 

  

	(yyy)	“VW Director” has the meaning set out in Section 3.1(a)(ii) of this Agreement; 

  

	(zzz)	“VW Group” means VW and any limited partners of VW, Ventures West Capital Ltd. and any Subsidiary of Ventures West Capital Ltd. and any corporation whose senior officers are common with the officers of
any of Ventures West Capital Ltd. or any fund or investor in any fund managed by Ventures West Capital Ltd. or by any Subsidiary of Ventures West Capital Ltd; 

  

	(aaaa)	“VW Shareholders” means any member of the VW Group who holds Shares; 

  

	(bbbb)	Any words or phrases defined elsewhere in this Agreement shall have the particular meaning assigned thereto; 

  

	(cccc)	Words (including defined terms) using or importing the singular number include the plural and vice versa and words importing one gender only shall include all genders and words importing persons in this Agreement shall
include individuals, partnerships, corporations and any other entities, legal or otherwise; 

  

	(dddd)	The headings used in this Agreement are for ease of reference only and shall not affect the meaning or the interpretation of this Agreement; 

  
 7 

	(eeee)	All references to Article, section and subsection numbers refer, unless expressly stated otherwise, to the Articles, sections and subsections in this Agreement having those numbers; 

 

	(ffff)	All accounting terms not defined in this Agreement shall have the meanings then generally ascribed to them under the Canadian generally accepted accounting principles set forth in the Handbook published by the Canadian
Institute of Chartered Accountants (as revised from time to time); and 

  

	(gggg)	All references to the symbol $ means U.S. dollars. 

  

	1.2	Schedules — The schedules attached to this Agreement shall form part of this Agreement. 

ARTICLE 2 — SCOPE, EFFECT AND PARTIES 
  

	2.1	Shareholders to Act in Support of Terms — The Shareholders shall at all times promptly: 

  

	(a)	vote their respective Shares (or execute written shareholder consent resolutions); and 

  

	(b)	take all such steps as may be reasonably within their powers; 

 so as to cause the Companies to act in the
manner contemplated by this Agreement and so as to fully implement the terms of this Agreement, the Exchange Agreement and the Support Agreement. 
 2.2
Ceasing to be a Party — Except as otherwise specifically provided herein, if a Person (other than either of the Companies) who was a Shareholder shall cease to hold any Equity Securities, then from that point forward that Person
shall be deemed to no longer be a party to this Agreement; provided, however, that where such Person disposed of his Equity Securities in compliance with the provisions of this Agreement, he shall be entitled to the benefit of and be bound by the
rights and obligations set forth in this Agreement in respect of matters occurring prior to such disposition. 
 2.3 Shareholder
Representations & Warranties — Each Shareholder hereby represents and warrants to each other Shareholder and each Company that the Shareholder: 
  

	(a)	other than as otherwise noted in Schedule A, is the registered and beneficial owner of the Shares shown beside the Shareholder’s name in Schedule A (or on the instrument under which the Shareholder became
party to this Agreement) free and clear of any mortgage, lien or encumbrance or security interest, and the Shareholder is not subject to any agreement under which any mortgage, encumbrance, lien or security interest may be created upon any of the
Shareholder’s Shares; 

  

	(b)	is not in a relationship in respect of which a triggering event under Section 56 of the Family Relations Act (British Columbia) (or any applicable similar legislation in any other jurisdictions) has
occurred; 

  

	(c)	is not in any way subject or party to any unsatisfied judgments, consent decrees, injunctions, litigation, proceedings, actions or claims (and to the best of the knowledge of the Shareholder no such matters are pending
or threatened against the Shareholder) which could result in a judgment against the Shareholder leading to the impairment or loss of the Shareholder’s title to such Shareholder’s Shares; 

 

	(d)	is not violating, contravening, breaching, or creating a default under any law, statute, regulation, order, judgment, or decree applicable to the Shareholder by becoming party to this Agreement or performing the
provisions hereof; and 

  
 8 

	(e)	if the Shareholder is not an individual, is duly created and is validly existing under the laws of its jurisdiction of creation and has the legal power and capacity to own its assets and enter into and perform its
obligations pursuant to this Agreement. 

 ARTICLE 3 — CONDUCT OF THE AFFAIRS OF THE COMPANY 

 

	3.1	Composition of the Board of Directors 

  

	(a)	Each Shareholder agrees to vote, or cause to be voted, all Shares owned by such Shareholder, or over which such Shareholder has voting control, from time to time and at all times, in whatever manner as shall be
necessary to ensure that the size of the Board of the U.S. Company shall be set and remain at five Directors. Each Shareholder agrees to vote, or cause to be voted, all Shares owned by such Shareholder, or over which such Shareholder has voting
control, from time to time and at all times, in whatever manner as shall be necessary to ensure that the following persons shall be elected to the Board of the U.S. Company: 

 

	 	(i)	the then current Chief Executive Officer of the Companies (the “Common Director”); 

  

	 	(ii)	at any time during which VW Shareholders collectively own 10% or more of the outstanding Common Shares on a Fully Diluted Basis, one individual designated by the VW Shareholders (the “VW
Director”); 

  

	 	(iii)	at any time during which JJDC or its Affiliates collectively own 10% or more of the outstanding Common Shares on a Fully Diluted Basis, one individual designated by JJDC (the “JJDC Director”);

  

	 	(iv)	at any time during which PVI or its Affiliates collectively own 10% or more of the outstanding Common Shares on a Fully Diluted Basis, one individual designated by PVI (the “PVI Director”); and

  

	 	(v)	one individual who is not an employee of either of the Companies and has been approved and designated by Investor Approval (the “Independent Director”), 

and each Director designated as a Director pursuant to clauses (ii) to (iv) above shall, for purposes of this Agreement, be referred
to as an “Investor Nominee Director”. If a person or group exercising the right to designate a Director pursuant to clauses (ii) to (iv) above ceases to hold 10% or more of the outstanding Common Shares on a Fully Diluted
Basis, any Director appointed by such person or group pursuant to this Section 3.1(a) shall immediately resign as Director and, if such Director does not immediately resign as Director, the Shareholders shall forthwith take all actions required
to be taken to remove such Director from the Board and appoint an additional Independent Director. 
  

	(b)	(i)       Upon execution of this Agreement, the Board of the U.S. Company will be constituted as follows: 

 

			
	 Name of Director:
	  	 
	 David Main
	  	Common Director
	 Kenneth Galbraith
	  	VW Director
	 Asish Xavier
	  	JJDC Director
	 Elaine V. Jones, Ph.D.
	  	PVI Director
	 Daniel Levitt
	  	Independent Director

  
 9 

	 	(ii)	If a Director ceases to be a Director for any reason, each Shareholder agrees to vote, or cause to be voted, all Shares owned by such Shareholder, or over which such Shareholder has voting control, from time to time and
at all times, in whatever manner as shall be necessary to ensure that the Board composition set out above in Section 3.1(a) is maintained. 

  

	(c)	No party hereto shall vote to remove any Director of the Board of the U.S. Company designated in accordance with Section 3.1(a) unless the persons or groups so designating such Director as specified above so vote
or recommend, and, if such persons or groups so vote, then the non-designating party or parties shall likewise so vote. 

  

	(d)	The parties to this Agreement shall take all actions to ensure that the Directors of the U.S. Company are elected and serve as the only Directors of the Canadian Company and are removed in accordance with
Section 3.1(c). The Board of the Canadian Company shall at all times consist of the same number of Directors as and shall be identical to the Board of the U.S. Company. 

3.2 Observers — Any Investor that has purchased Series Preferred Stock or Exchangeable Preferred Shares pursuant to one or more of the
Subscription Agreements with an aggregate purchase price equal to or greater than $4,000,000, shall have the right to appoint one person to act as an observer (the “Observer”); provided, however, that any Investor who has appointed
a Director pursuant to Section 3.1 shall not have the additional right to appoint an Observer pursuant to this Section 3.2. Each Observer will have the right to receive notice of all meetings of the Boards (and meetings of the boards of
either of the Company’s Subsidiaries) and the right to speak thereat and will receive all information and material presented to the Boards as would a Director, but will not have a vote, all provided that the Observer must sign the form of
non-disclosure agreement attached as Schedule B hereto. For the avoidance of doubt, each Investor who appoints an Observer pursuant to this Section 3.2 shall be solely responsible for the expenses of the Observer, including without limitation
any expenses incurred in connection with attending or participating at any meeting of the Boards. 
 3.3 Additional Information — Subject
to the Company Act and the Delaware Act, as applicable, each Director of each Company shall have the right to request such additional information concerning the affairs of the respective Company and its Subsidiaries as the Director reasonably
considers necessary in order to understand and assess the affairs of such Company and its Subsidiaries, and such Company shall in response to each such request provide or cause to be provided to the Director or Observer as promptly as possible the
additional information reasonably requested. 
 3.4 Meetings of the Board of Directors — The Board of each of the Companies shall meet at
least four times per year (until such time as the Board determines to alter this schedule) at such place as the Directors may determine from time to time. Unless otherwise waived in writing by all of the Directors, the respective Company shall give
at least three Business Days advance written notice to Directors of all meetings together with an agenda of items to be discussed together with a brief description of each item. Such Company shall provide each Director with copies of the minutes of
each meeting within 30 days of each such meeting. 
 3.5 Quorum for Board Meetings — A quorum for the transaction of business at any
meeting of the Board of a Company shall be a majority of Directors, including each of the VW Director, the JJDC Director and the PVI Director. If a quorum is not present at the commencement of a Board meeting, then the Directors present may not

  
 10 

 
transact any business and such Directors shall be deemed to have adjourned such meeting to the same time and place on the same day the following week. At such reconvened meeting, a quorum for the
transaction of business shall be a majority of Directors, one of whom shall be either the VW Director, the JJDC Director or the PVI Director. 
 3.6
Audit Committee —The Board of each of the Companies shall have an audit committee composed of at least three members, all of whom shall be non-management Directors and at least one of whom shall be an Investor Nominee Director
designated in accordance with Section 3.1. Subject to the foregoing, the members of each audit committee shall be selected by a simple majority vote of the Board of the respective Company. 

3.7 Compensation Committee—The Board of each of the Companies shall have a compensation committee composed of at least three members, a
majority of which shall be non-management Directors and at least one of whom shall be an Investor Nominee Director designated in accordance with Section 3.1. Subject to the foregoing, the members of each compensation committee shall be selected
by a simple majority vote of the Board of the respective Company. 
 3.8 Specific Matters Requiring Board Approval – Each of the
Companies shall only undertake or proceed with any of the following matters with the prior approval of the Board of the respective Company: 
  

	(a)	approve any adoption or amendment of any plan under which employees of a Company are entitled to purchase or receive shares in the capital of such Company; 

 

	(b)	loan any money to, provide a guarantee of, assume liability for the debts or obligations of any other Person other than a Subsidiary in excess of $50,000, or grant any security interest over the assets of a Company;

  

	(c)	enter into or amend any employment or consulting agreements with senior management of a Company; 

  

	(d)	amend any devotion of time, non-competition, non-disclosure agreements, proprietary rights agreements, employment agreements, profit sharing agreements, or agreements relating to intellectual property with key employees
between a Company and any of its Directors, employees, key employees or consultants, other than any amendments that are not prejudicial to such Company; 

  

	(e)	enter into any joint venture or partnership with any corporation, partnership, joint venture, firm or Person; or 

  

	(f)	any of the following matters, provided that such approval of the Board of the U.S. Company with respect to such matters shall include the affirmative vote of both the JJDC Director and the PVI Director: (i) incur
any material indebtedness or other material liability on behalf of the U.S. Company; (ii) enter into any material contract to which the U.S. Company is a party or otherwise bound; (iii) retain or terminate the services of any employee,
independent contractor or other service provider of the U.S. Company; (iv) adopt or terminate any Benefit Plan (as defined in the Series C Subscription Agreement) for the U.S. Company; or (v) initiate any legal action or proceeding on
behalf of the U.S. Company; provided, however, that this Section 3.8(f) shall not be deemed to apply to a Change of Control, a public offering of securities of the U.S. Company or any action taken pursuant to, or amendment of, this Agreement
(other than this Section 3.8(f)), the Subscription Agreements, the Exchange Agreement, the Support Agreement, the Registration Rights Agreement or the U.S. Company’s Constating Documents. 

Each Company shall ensure that any of its Subsidiaries only undertake or proceed with the kind of transactions referred to above in this Section 3.8 (as
adjusted to relate to similar actions of such Subsidiary) with the prior approval of the Board of the respective Company. 

  
 11 

	3.9	Specific Major Matters also Requiring Investor Approval 

  

	(a)	So long as at least 25% of the Series Preferred Stock and Series Special Voting Stock issued under the Subscription Agreements (or Series Preferred Stock issued pursuant to the exchange of Exchangeable Preferred Shares
issued pursuant to the Subscription Agreements) remains outstanding, the Companies shall only undertake or proceed with any of the matters described in subsections (a) through (e) of Section 3.8 or any of the following matters with
prior Investor Approval: 

  

	 	(i)	redeem, purchase or otherwise acquire for value (or pay into or set aside for a sinking fund for such purpose) any securities of a Company (other than securities of the Canadian Company held or purchased by the U.S.
Company) unless required under the special rights and restrictions attached to such securities, the Exchange Agreement or the Support Agreement or pursuant the terms of the Incentive Compensation Plans/ESOPs and related agreements thereto;

  

	 	(ii)	take any action that results in the payment or declaration of any dividend on any securities of a Company (other than securities of the Canadian Company held by the U.S. Company) or in the distribution of any cash
(other than in the normal course of business), securities or assets of the Company unless required under the special rights and restrictions attached to such securities, the Exchange Agreement or the Support Agreement; 

 

	 	(iii)	authorize or issue, or obligate itself to issue, any equity security (including any security convertible into or exercisable for any equity security) senior to or on parity with the Series Preferred Stock of the U.S.
Company or the Exchangeable Preferred Shares of the Canadian Company except for any issuance pursuant to the Exchange Agreement, the Support Agreement or the Series C Subscription Agreement and except for any issuance by the Canadian Company to the
U.S. Company; 

  

	 	(iv)	effect a public offering of securities of a Company; 

  

	 	(v)	amend, alter or repeal any of the provisions of a Company’s Constating Documents; 

  

	 	(vi)	take any action which effects a liquidation, dissolution or winding up of a Company or any Subsidiary; 

  

	 	(vii)	make any loans or monetary advances to employees of a Company or of any Subsidiary (or any relative of such persons), except as unanimously approved by the Board of such Company; 

 

	 	(viii)	incur or guarantee any indebtedness, or permit any Subsidiary to incur or guarantee any such indebtedness, except as unanimously approved by the Board of such Company; 

 

	 	(ix)	create any mortgage, pledge, or other security interest in all or substantially all of the property of a Company, or any of its Subsidiaries, except as unanimously approved by the Board of such Company;

  

	 	(x)	own, or permit any Subsidiary to own, any stock or other securities of any other corporation, partnership or entity (other than stock or other securities of the Canadian Company held by the U.S. Company), unless such
entity is wholly-owned by such Company and such ownership is unanimously approved by the Board of such Company; 

  

	 	(xi)	increase or decrease the number of directors of a Company except in accordance with this Agreement; 

  
 12 

	 	(xii)	effect a Change of Control (as defined in the U.S. Certificate) or enter into any agreement relating to the same unless such Change of Control is in accordance with Section 3.6 of the Exchange Agreement or has been
approved by the holders of at least two-thirds (2/3) of then outstanding shares of Common Stock of the U.S. Company on a Fully Converted Basis (voting together as a single class); 

 

	 	(xiii)	make a material change in the nature of the Business; or 

  

	 	(xiv)	increase, or authorize the increase of, the number of securities of a Company available under the Incentive Compensation Plans/ESOPs except in accordance with this Agreement, provided, however, that prior Investor
Approval shall not be necessary with respect to any such increase if (A) the number of Shares available under the Incentive Compensation Plans/ESOPs after such increase is not greater than 15% of all Shares on a Fully Converted Basis and
(B) such increase is unanimously approved by the Board of such Company. 

  

	(b)	The Canadian Company shall not issue any of its New Common Shares or Non-Voting Preferred Shares to any Person other than the U.S. Company, and the U.S. Company shall not Transfer any New Common Shares or Non-Voting
Preferred Shares of the Canadian Company to any Person other than the Canadian Company without prior Investor Approval. 

  

	3.10	Reciprocal Amendments—The Shareholders agree not to vote in favour of: 

  

	(a)	any amendment, alteration or repeal of any of the provisions of the U.S. Certificate or by-laws of the U.S. Company that requires the approval of the holders of Series A Preferred Stock and Series A Special Voting Stock
pursuant to Section C 6(b) of Article FOURTH of the U.S. Certificate unless a corresponding amendment, alteration or repeal is concurrently approved by holders of Series B Preferred Stock and Series B Special Voting Stock and holders of Series C
Preferred Stock and Series C Special Voting Stock pursuant to Section C 6(c) and Section C 6(d) of Article FOURTH of the U.S. Certificate; 

  

	(b)	any amendment, alteration or repeal of any of the provisions of the U.S. Certificate or by-laws of the U.S. Company that requires the approval of the holders of Series B Preferred Stock and Series B Special Voting Stock
pursuant to Section C 6(c) of Article FOURTH of the U.S. Certificate unless a corresponding amendment, alteration or repeal is concurrently approved by holders of Series A Preferred Stock and Series A Special Voting Stock and holders of Series C
Preferred Stock and Series C Special Voting Stock pursuant to Section C 6(b) and Section C 6(d) of Article FOURTH of the U.S. Certificate; or 

  

	(c)	any amendment, alteration or repeal of any of the provisions of the U.S. Certificate or by-laws of the U.S. Company that requires the approval of the holders of Series C Preferred Stock and Series C Special Voting Stock
pursuant to Section C 6(d) of Article FOURTH of the U.S. Certificate unless a corresponding amendment, alteration or repeal is concurrently approved by holders of Series A Preferred Stock and Series A Special Voting Stock and holders of Series B
Preferred Stock and Series B Special Voting Stock pursuant to Section C 6(b) and Section C 6(c) of Article FOURTH of the U.S. Certificate 

and, in each such case, the change(s) to the provisions with respect to the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock
shall be made with the same effective time and date; provided, however, that the requirements of this paragraph shall be deemed satisfied and/or waived if an instrument to such effect has been duly executed by the holders of a majority of the Series
A Preferred Stock and Series A Special Voting Stock, the holders of a majority of the Series B Preferred Stock and Series B Special Voting Stock and the holders of a majority of the Series C Preferred Stock and Series C Special Voting Stock. 

  
 13 

 3.11 Preserving Proprietary Rights/Confidentiality — Each Company covenants and agrees that it
will cause: 
  

	(a)	Proprietary Rights — all of its employees and the employees of its Subsidiaries and all consultants engaged by such Company or its Subsidiaries to assign to such Company and waive all rights to any and all
patents, trademarks, copyrights, inventions and other intellectual property arising out of the work of such employees or consultants or arising out of the use of funds, materials or facilities of such Company or its Subsidiaries; and

  

	(b)	Confidentiality — all of its employees and the employees of its Subsidiaries and all consultants engaged by such Company or its Subsidiaries having confidential knowledge of the intellectual property of such
Company or its Subsidiaries to sign appropriate confidentiality agreements with such Company; 

 in substantially the form currently used by
such Company. 
 3.12 Indemnity for Directors and Others 

Subject to the limitations set forth in the Company Act, the Delaware Act or otherwise at law, and in addition to any existing provisions which may be
contained in each Company’s Constating Documents, each Company shall to the fullest extent possible indemnify each Director or officer of such Company, and any Observer, a former Director or officer of such Company, former Observer or any
Person who acts or has acted at such Company’s request as a director or officer of a body corporate of which such Company is or was a shareholder, and his heirs and other personal representatives, against all costs, charges and expenses,
including any amount paid to settle an action or satisfy a judgment, actually and reasonably incurred by him, including an amount paid to settle an action or satisfy a judgment in a civil, criminal or administrative action or proceeding to which he
was made a party by reason of being or having been a Director, Observer or officer of such Company or such body corporate and any costs related thereto, including legal costs and disbursements of legal counsel, if: 

 

	(a)	he has acted honestly and in good faith with a view to the best interests of such Company or such body corporate; and 

  

	(b)	in the case of any criminal or administrative action or proceeding, he had reasonable grounds for believing that his conduct was lawful. 

Nothing in this Section shall limit the right of any person entitled to claim any indemnity apart from the provisions of this Section. If under applicable
law, any payment by such Company under such indemnity requires the approval of any court, then such Company at its own expense shall promptly take all necessary proceedings to obtain such approval. Each person indemnified hereunder shall be a third
party beneficiary of the provisions of this Section 3.12 and entitled to enforce such provisions as if they were a party to this Agreement. Each Company will enter into an Indemnity Agreement in the form attached hereto as Schedule C with each
Director, officer or other Person indemnified hereunder who is not a party to this Agreement. 
 3.13 Reimbursement of Expenses — All
Directors shall be entitled to reimbursement of reasonable costs of attendance of meetings of the Directors. 
 3.14 Incentive Compensation
Plans/ESOPs — The maximum number of Common Shares directly or indirectly issuable to employees, directors, officers and consultants of the Companies under the Incentive Compensation Plans/ESOPs dated or amended and restated on
June 8, 2007, as amended on March 31, 2010 and as further amended on the date hereof, will be increased to 12,809,037 Common Shares upon the closing of the transactions contemplated by the Series C Subscription Agreement. 

  
 14 

 3.15 Acknowledgment of Shareholders — Each Company and each Shareholder acknowledges and
agrees that (i) any Investor may presently have, or may engage in the future, in internal development programs, or may receive information from third parties that relates to, and may develop and commercialize products independently or in
cooperation with such third parties, that are similar to or that are directly or indirectly competitive with, the Company’s development programs, products or services; and (ii) any employee of an Investor serving on the Boards is serving
in such capacity at the request, and for the benefit, of the Companies. Accordingly, an Investor’s designation of any Director under Section 3.1, the service of such Director on the Boards, or the exercise by such Investor of any rights
under this Agreement or any other agreement related to the transactions contemplated by this Agreement (the “Transaction Agreements”) shall not in any way preclude or restrict such Investor from conducting any development program,
commercializing any product or service or otherwise engaging in any enterprise, whether or not such development program, product, service or enterprise competes with those of the Companies. Nothing herein or in any other Transaction Agreement shall
be construed to impose on any Investor or any Director designated by an Investor under Section 3.1 any restriction, duty or obligation other than as expressly set forth herein or therein or as required by applicable laws. 

3.16 FCPA Compliance — Each Company represents that it shall not, and shall not permit any of its Subsidiaries or Affiliates or any of its
or their respective directors, officers, managers, employees, independent contractors, representatives or agents to, promise, authorize or make any payment to, or otherwise contribute any item of value to, directly or indirectly, any non-U.S.
government official, in each case, in violation of the U.S. Foreign Corrupt Practices Act (“FCPA”) or any other applicable anti-bribery or anti-corruption law. Each Company further represents that it shall, and shall cause each of
its Subsidiaries and Affiliates to, cease all of its or their respective activities, as well as remediate any actions taken by such Company, its Subsidiaries or Affiliates or any of its or their respective directors, officers, managers, employees,
independent contractors, representatives or agents, in violation of the FCPA or any other applicable anti-bribery or anti-corruption law. Each Company further represents that it shall, and shall cause each of its Subsidiaries and Affiliates to,
maintain systems of internal controls (including, but not limited to, accounting systems, purchasing systems and billing systems) to ensure compliance with the FCPA or any other applicable anti-bribery or anti-corruption law. 

ARTICLE 4 — INFORMATION 

4.1 Reporting Requirements — Each Company shall distribute to each Investor who, together with its Affiliates, Associates, successors and
permitted assigns, holds at least 2,000,000 Common Shares, shares of Series Preferred Stock or Canadian Exchangeable Shares (as adjusted for any stock splits, stock dividends, combinations or other similar recapitalizations affecting such shares)
the following information and reports concurrently with the distribution of such information and reports to the Board of each Company: 
  

	(a)	Periodic Financial Statements — within 45 days of the end of each calendar quarter, comprehensive quarterly financial statements prepared by such Company (including actual and projected cash flows for the
most recent quarter and a rolling cash flow forecast for the current fiscal year) with management’s analysis of the results and comments on variances from budget and certified by the respective Company’s chief financial and accounting
officer in his capacity as an officer of the Company and not in his personal capacity as having been prepared in accordance with generally accepted accounting principles consistently applied (subject to year-end audit adjustments);

  

	(b)	Annual Budget — within 30 days after the beginning of each fiscal year, an annual operating and capital budget for such Company which has been approved by its Board; 

 

	(c)	Annual Audited Statements —within 120 days of the end of each fiscal year of the Company, annual audited consolidated financial statements for such Company (including its balance sheet and its statements of
earnings, retained earnings and changes in financial position); 

  
 15 

	(d)	Statutory Compliance Certificate — within 21 days of each fiscal quarter end, a certificate signed by the president of the Canadian Company stating that: 

 

	 	(i)	the Canadian Company has paid all taxes, premiums, contributions and payments required to be deducted at source, paid and/or remitted under the Income Tax Act (Canada), Excise Tax Act (Canada), Canada
Pension Plan, Employment Insurance Act (Canada), Income Tax Act (British Columbia), Workers Compensation Act (British Columbia), Social Services Tax Act (British Columbia) or applicable regulations thereto have been
deducted, paid and remitted (as the case may be) to the proper authority; and 

  

	 	(ii)	each of the Canadian Company and Subsidiaries is in compliance with all applicable Environmental Laws; 

  

	(e)	Litigation — promptly after a Company becomes aware of same, a summary of any material litigation (pending, threatened or otherwise) or other proceedings by or against such Company or any of its Subsidiaries
before any court, tribunal or administrative agency; 

  

	(f)	Material Adverse Effect — within five days after a Company becomes aware of the same, notice of any default, breach, acceleration, modification, cancellation of any agreement, arrangement or other
transaction or matter that may result in a Material Adverse Effect to such Company or its Subsidiaries; and 

  

	(g)	Merger etc. —promptly after such Company becomes aware of the same, notice of the intention or proposal to effect a change of control, sale of substantial assets, reorganization, amalgamation, consolidation,
merger or an agreement to amalgamate, consolidate or merge a Company or its Subsidiaries with any Person. 

 The financial reports to be
provided above shall conform to generally accepted accounting principles and include such Company’s Subsidiaries. 
 4.2 Right to Visit
Premises — Each Company shall permit representatives of each Investor to from time to time, upon reasonable notice and at any reasonable time, visit the business premises of such Company and to observe the operations of such Company.
Such Company shall ensure that its Subsidiaries give representatives of the Investors similar access rights. 
 4.3 Investors May Refer to Investment
in Publicity Materials 
  

	(a)	Each Investor shall have the right to refer to its investment in the Companies in its reports, publications and promotional materials with the written approval of such Company (not to be unreasonably withheld). If any
such disclosure or publication contains a material misrepresentation regarding the Companies or the Investor’s investment in the Companies, the Investor shall, upon notification thereof by the Companies, revise the disclosure to remove such
material misrepresentation. 

  

	(b)	Each Company and each Investor covenants not to disclose the name of an Investor in any of its reports, publications, promotional materials, news releases or other disclosure documents or other communications to third
parties or the public without first obtaining such identified Investor’s written approval (not to be unreasonably withheld), except if such Company or identifying Investor is advised by counsel that such disclosure is legally required to be
made and provided that it gives ten days prior written notice to such Investors who are being identified. 

  

	(c)	Notwithstanding Section 4.3(a) and (b), Advantage shall be entitled to refer to its investment in the Companies and to the other Investors in its routine filings pursuant to the SBVCA. 

  
 16 

	4.4	Inspection Rights — Each Company shall permit each holder of Series Preferred Stock of the U.S. Company and each holder of Exchangeable Preferred Shares of the Canadian Company, at such holder’s
expense, to visit and inspect such Company’s properties, examine such Company’s books of account and records and discuss such Company’s affairs, finances and accounts with its officers, during normal business hours of such Company as
may be reasonably requested by such holder, provided, however, that such Company shall not be obligated pursuant to this Section 4.4 to provide access to any information that it reasonably and in good faith considers to be a trade secret or
confidential information (unless covered by an enforceable confidentiality agreement, in a form acceptable to such Company) or the disclosure of which would adversely affect the attorney-client privilege between such Company and its counsel.

  

	4.5	Confidential Information 

  

	(a)	In this Section 4.5, “Confidential Information” will mean confidential or proprietary information of either of the Companies, including information in respect of the Business, work, inventions, patents,
designs, methods, improvements, trade secrets, know-how, and information in respect of any other confidential or proprietary matters, but excluding information which: 

 

	 	(i)	was in or comes into the public domain other than as a result of a breach of this Agreement; 

  

	 	(ii)	is disclosed with the prior written permission of the applicable Company; 

  

	 	(iii)	was in the possession of the applicable Shareholder prior to its receipt thereof from the applicable Company; or 

  

	 	(iv)	is required to be disclosed pursuant to applicable laws or policies or regulations of any government or regulatory authority. 

  

	(b)	Each Shareholder acknowledges that it may come into possession of Confidential Information as a result of various disclosures or information provided by other Shareholders or by the Company pursuant to this Agreement,
including through attendance at a Shareholders’ meeting, through the exercise of board observer rights, through a visit to premises of the Companies or through various notices or offers pursuant to Articles 6 and 7 hereof. 

 

	(c)	Each Shareholder agrees that all such Confidential Information will, for all purposes, be maintained by the Shareholder as strictly confidential and the Shareholder will not reveal, or induce others to reveal, any of
the Confidential Information to any Person (except, if the Shareholder is a corporation, partnership or other business entity, those of the Shareholder’s employees, directors, officers, managers, advisors, counsel, consultants, agents,
partners, shareholders or investors with a definable need to know and who are subject to a duty of confidentiality). 

  

	(d)	Nothing herein shall restrict a Shareholder from disclosing Confidential Information that it is required or requested to disclose by law or by any governmental or regulatory authority having jurisdiction over such
Shareholder, provided that, prior to disclosing any Confidential Information pursuant to this paragraph, the Shareholder delivers notice of such requirement or request to the Companies so that the Companies have the opportunity to contest the
potential disclosure. 

 This Section 4.5 will survive the termination of this Agreement. 

  
 17 

 ARTICLE 5 — INSURANCE POLICIES 

5.1 Directors’ and Officers’ Liability Insurance — Each Company will use reasonable commercial efforts to obtain and maintain
directors’ and officers’ liability insurance for its Directors and senior officers with coverage of at least $5,000,000, or such greater amount as determined by the Board of each of the Companies. 

5.2 Product Liability Insurance — Each Company shall, to the extent available at rates considered reasonable by the applicable Board, use
reasonable commercial efforts to obtain and maintain suitable products liability insurance for its products and those of its Subsidiaries. 
 5.3
Other Insurance — Each Company will use reasonable commercial efforts to obtain and maintain, and shall use reasonable commercial efforts to ensure that its Subsidiaries obtain and maintain, fire and casualty insurance policies with
sufficient coverage to allow replacement of any of their respective insurable properties that might be damaged or destroyed and insurance policies for comprehensive general liability insurance (including bodily injury, death and property damage) for
amounts which meet commercially reasonable standards as determined by the Board of each of the Companies. 
 5.4 Limitation on Encumbrances —
Neither Company shall grant a security interest in, borrow on the security of, hypothecate, assign or dispose of any of the insurance policies referred to in this Article or any part thereof except to the extent that such policies are charged or
encumbered from time to time by security instruments granted by such Company in good faith to its lenders for genuine corporate borrowing purposes approved by the applicable Board. 

ARTICLE 6 — ISSUE OF ADDITIONAL EQUITY SECURITIES 

6.1 Treasury Share Offerings — Except as otherwise provided under Section 6.4, each offering by either Company of additional Equity
Securities shall be made in accordance with this Article 6. 
 6.2 Pro-Rata Preemptive Right — Subject to Section 6.3, each
time a Company proposes to allot, issue, sell or resell any Equity Securities, together with any corresponding Special Voting Stock (if applicable), such Company (the “Issuing Company”) shall first offer (the “Treasury
Offer”) the Equity Securities and corresponding Special Voting Stock (if applicable) to the Investors (collectively the “Treasury Offerees” and individually a “Treasury Offeree”) on the following basis:

  

	(a)	Pro Rata Portions — The number of Equity Securities a particular Treasury Offeree shall be offered and may purchase shall be determined by the following formula: 

 

									
	Number of Equity Securities which the Treasury Offeree shall be offered and may purchase	  	=	  	 Number of Common Shares held by the

Treasury Offeree on a Fully Converted Basis

immediately prior to the Treasury Offer
	  	x	  	Total Number of
Equity Securities
being offered;
	  	  	 Number of Common Shares held by all

Treasury Offerees on a Fully Converted Basis

immediately prior to the Treasury Offer
	  	  

  

	(b)	Special Voting Stock — A Company shall not offer additional Equity Securities unless the offer is jointly made by both Companies and includes an offer from the other Company for the corresponding Special
Voting Stock. If applicable, each Treasury Offeree shall be required to purchase the corresponding number of shares of Special Voting Stock associated with any Equity Securities which it purchases pursuant hereto; 

  
 18 

	(c)	Notice of Offer — Each Treasury Offer shall be made by written notice to the Treasury Offerees specifying: 

  

	 	(i)	the total number and class of Equity Securities and corresponding Special Voting Stock (if applicable) offered; 

  

	 	(ii)	the Treasury Offeree’s pro rata portion thereof as determined by the formula in (a) above; 

  

	 	(iii)	the price at which the Equity Securities and corresponding Special Voting Stock (if applicable) are being offered; 

  

	 	(iv)	any other terms and conditions applicable to the offer not set out in this Section 6.2; and 

  

	 	(v)	that Treasury Offerees shall have 21 days (the “Initial Acceptance Period”) following receipt of the notice to accept the Treasury Offer (provided that if such written notice is mailed by first class
mail to the address for the Treasury Offeree shown on the Companies’ registers of stockholders, that Treasury Offeree will be deemed to have received the notice 3 days thereafter); 

 

	(d)	Acceptance — Acceptance of a Treasury Offer shall be made by notice in writing to the Issuing Company within the Initial Acceptance Period specifying the number of Equity Securities and corresponding Special
Voting Stock (if applicable) up to the pro rata number determined above the Treasury Offeree wishes to purchase. The Treasury Offeree may also specify in such notice an additional number of the Equity Securities and, if applicable, corresponding
Special Voting Stock (“Specified Additional Amounts”) offered for sale that the Treasury Offeree is prepared to purchase if any of the other Treasury Offerees fails to fully accept their offered portion of the Treasury Offer. If a
Treasury Offeree does not accept the Treasury Offer before expiration of the Initial Acceptance Period, then such Treasury Offeree shall be deemed to have refused the Treasury Offer. Additionally, if all Treasury Offerees notify the Issuing Company
in writing that they accept or decline the Treasury Offer before the end of the Initial Acceptance Period, then the Initial Acceptance Period shall be deemed to have ended on the date the last such notice is received by the Issuing Company;

  

	(e)	Remaining Equity Securities — In the event that some Treasury Offerees do not fully accept their offered portion of the Equity Securities and corresponding Special Voting Stock (if applicable) within the
Initial Acceptance Period, the unaccepted remaining portion of the Equity Securities and, if applicable, corresponding Special Voting Stock (the “Remaining Amount”) shall be divided, within 7 days of the end of the Initial
Acceptance Period, among such of the Treasury Offerees as have in their notice of acceptance of the Treasury Offer indicated a preparedness to purchase Specified Additional Amounts (collectively the “Second Round Offerees” and
individually a “Second Round Offeree”) as follows: 

  

	 	(i)	in such manner as may be agreed among the Second Round Offerees; and 

  

	 	(ii)	failing such agreement, the Remaining Amount shall be divided pro rata among the Second Round Offerees in accordance with their respective holdings of Common Shares on a Fully Converted Basis in successive rounds if
necessary to fully divide such Remaining Amount, provided that no Second Round Offeree shall be required to accept more than his Specified Additional Amount; 

  
 19 

	(f)	Sale to Third Party — The Issuing Company shall be entitled to allot, issue or sell the balance of any of the offered Equity Securities and corresponding Special Voting Stock (if applicable) which are not
purchased by the Treasury Offerees upon completion of the above process to any Person(s), other than a Treasury Offeree who did not accept the Treasury Offer, provided that such allotment, issuance or sale: 

 

	 	(i)	shall not be effected at a price which is less than the price or on terms and conditions which are more favourable (from the purchaser’s perspective) than those set forth in the written notice to the Treasury
Offerees concerning the Treasury Offer; and 

  

	 	(ii)	shall be effected within a 45 day period following the expiration of the Initial Acceptance Period, after which period has expired, the Issuing Company shall comply with this Article 6 before offering Equity Securities
and corresponding Special Voting Stock (if applicable) to any Person. 

 6.3 Permitted Non-Pro rata Offerings — Subject to
Sections 3.8 and 3.9 and the rights, privileges and restrictions attaching to any Shares, the Issuing Company may directly allot, issue or sell Equity Securities and corresponding Special Voting Stock (if applicable) without complying with
Section 6.2 in the following circumstances: 
  

	(a)	ESOP — options are granted pursuant to the Incentive Compensation Plans/ESOPs or the Shares are being issued pursuant to the exercise of options granted under the Incentive Compensation Plans/ESOPs or to
Directors and officers of the Issuing Company; 

  

	(b)	Qualified IPO – the Shares are being issued pursuant to a Qualified IPO; 

  

	(c)	Subdivision etc. — the Shares are being issued pursuant to a duly approved subdivision, amalgamation or reorganization or a dividend payable in Shares; 

 

	(d)	Conversion etc. — the Shares are being issued in accordance with the special rights and restrictions attached to Shares; 

 

	(e)	Exchange etc. — the Shares are being issued pursuant to exchange or other rights under the Exchange Agreement or Support Agreement; 

 

	(f)	Existing Options etc. — the Shares are being issued pursuant to the options, warrants or other rights disclosed in the Disclosure Schedule to the Series C Subscription Agreement; 

 

	(g)	Acquisitions — the Shares are allotted or issued pursuant to an Acquisition which is not part of a financing transaction and is approved by the Board of the applicable Company and the Investors by way of
Investor Approval; 

  

	(h)	Strategic Alliances — the Equity Securities are allotted or issued pursuant to options, warrants or other rights issued to an entity whose principal business is in the pharmaceutical or biotechnology
industries and is approved by the Investors by way of Investor Approval as a corporate partner or strategic industry alliance of a Company, which allotment and issuance are not part of a financing transaction; 

 

	(i)	Existing Obligations under Material Contracts — the Shares are being issued pursuant to the License Agreement dated June 6, 2006 between the Canadian Company and the University of British Columbia, as
amended from time to time; 

  

	(j)	Intercompany Issues — the New Common Shares or Non-Voting Preferred Shares of the Canadian Company are being issued to the U.S. Company; 

  
 20 

	(j)	Lending Arrangements — the Equity Securities are allotted or issued pursuant to options, warrants or other rights issued to a bank or other entity whose principal business is lending money or an equipment
lender, in connection with a loan to a Company and is approved by the Board of the applicable Company and the Investors by way of Investor Approval; and 

  

	(k)	Subscription Agreements— the Shares are allotted and issued in accordance with the Subscription Agreements. 

6.4 Waiver of Rights — Notwithstanding any other provision of this Article 6, any Investor may waive his rights with respect to any
particular offer or right given under, or any provision contained in, Article 6 by notice in writing to the Issuing Company. Additionally, in the event that Investors holding not less than 60% of the Common Shares held by all Investors (on a
Fully Converted Basis) elect to waive their rights with respect to any particular offer or right given under, or any provision contained in, Article 6 by notice in writing to the Issuing Company, then such waiver shall be binding upon all of
the parties to this Agreement.  
 6.5 Right to Corresponding Shares – If an Investor has a right to acquire Shares of one of the
Companies pursuant to this Article 6, such Investor may elect, by so stating in its acceptance notice, to instead acquire, on substantially the same terms, Shares of the other Company that are the economic equivalent of the first-mentioned Shares.

 ARTICLE 7 — SHARE TRANSFERS 

7.1 Transfers Restricted — Except as permitted by the terms of this Agreement, a Shareholder shall not, directly or indirectly, Transfer
any Equity Securities or, if applicable, corresponding Special Voting Stock (including but not restricted to any disposition by agreement, option, right or privilege capable of becoming an agreement or option). 

7.2 Permitted Transfers — Subject to compliance with the Exchange Agreement, Sections 7.1 and 7.3 do not apply to the following Transfers
of Equity Securities and corresponding Special Voting Stock (if applicable): 
  

	(a)	Sale to a Controlled Company — A Shareholder who is a natural person and is not in breach of its obligations under this Agreement may from time to time Transfer all or any part of his Equity Securities and
corresponding Special Voting Stock (if applicable) to a corporation which is under the Control of the Shareholder and, if applicable, members of the Shareholder’s immediate family own 100% of the shares (a “Wholly Owned
Company”), provided that each such transferee enters into an agreement under which the transferee becomes party to and bound by this Agreement and such corporation agrees as a condition of the Transfer to Transfer back such Equity
Securities and corresponding Special Voting Stock (if applicable) to such Shareholder in the event that such corporation ceases to be under the Control of such Shareholder. Notwithstanding Section 2.2, any such Transfer shall not release the
transferor from his obligations hereunder. 

  

	(b)	Family, RSP Sales —A Shareholder who is not in breach of its obligations under this Agreement may from time to time Transfer all or any part of his Equity Securities and corresponding Special Voting Stock
to: 

  

	 	(i)	a spouse or child (who has attained the age of majority) of the Shareholder; 

  

	 	(ii)	a trust for the benefit of the Shareholder and/or his or her immediate family; or 

  

	 	(iii)	a registered retirement savings plan of the Shareholder or his or her spouse; 

  
 21 

 provided that: 
  

	 	(iv)	each such transferee (both legal and beneficial transferees in the case of trust) enters into an agreement under which the transferee becomes a party to this Agreement; 

 

	 	(v)	all costs and expenses associated with such Transfer will be paid by the transferor Shareholder; and 

  

	 	(vii)	notwithstanding Section 2.2, any such Transfer shall not release the transferor from his obligations hereunder, and when such transferee becomes a party to this Agreement, such transferees (if more than one) shall
designate the Shareholder to represent all of the transferees and such representative will remain a party to and bound by this Agreement for and on behalf of such transferees and the Shareholder; 

 

	(c)	Death — Upon the death of a Shareholder, that Shareholder’s Equity Securities and corresponding Special Voting Stock (if applicable) may be Transferred in accordance with a probated will of the deceased
or by operation of laws for the administration of estates upon intestacy, provided that (i) each such transferee enters into an agreement under which the transferee becomes party to and bound by this Agreement and (ii) all costs and
expenses associated with such Transfer will be paid by the estate of the Shareholder; 

  

	(d)	Investor Exemptions — Any Investor (together, the “Transferring Investors”) may Transfer the whole or any part of its Equity Securities and corresponding Special Voting Stock (if
applicable): 

  

	 	(i)	if it is required by law to do so; 

  

	 	(ii)	if it resolves to Transfer all or substantially all of its assets or if the Transfer is part of a portfolio sale of its assets; 

  

	 	(iii)	if the Transfer is to any Affiliate or Associate of the Transferring Investor; 

  

	 	(iv)	in the case of VW, to any member of the VW Group; 

  

	 	(v)	to any corporation or other form of entity whose senior officers are, or which is managed by a corporate manager whose senior officers are, common officers of the Transferring Investor as at the date of the Transfer;

  

	 	(vi)	to any Persons who are bona fide investors (including limited partners, the general partner or fund manager, as the case may be) in the Transferring Investor who are entitled to participate in a distribution of the
assets of the Transferring Investor upon winding-up, liquidation or dissolution where the Equity Securities and corresponding Special Voting Stock are distributed to them on such occurrence; provided that if such investors are required to become
parties to this Agreement, such investors (if more than one) shall designate one person to represent all such investors and such representative will become party to and bound by this Agreement for and on behalf of such investors and shall be deemed
to be the legal and beneficial owner of such transferred Equity Securities for the purposes of this Agreement; or 

  

	 	(vii)	 to any limited partnership the general partner of which is controlled, directly or indirectly, by the Transferring Investor as at the date of the
Transfer; 

  
 22 

 (each a “Transferee Investor”); provided that (i) each Transferee Investor
will assume responsibility for any ongoing obligations, if any, of the Transferring Investors and (ii) all costs and expenses associated with such Transfer will be paid by the Transferring Investor. 

 

	(e)	Piggyback Sales — A Transfer of Equity Securities and corresponding Special Voting Stock (if applicable) pursuant to the rights provided to the Investors in Section 7.4. 

 

	(f)	Drag-Along Sales — Any Transfer of Equity Securities made in accordance with Section 3.6 of the Exchange Agreement. 

 

	(g)	Redemptions, Retractions etc. — Any Transfer of Shares made in a accordance with the special rights and restrictions attached to Shares or a Transfer of Equity Securities and corresponding Special Voting
Stock (if applicable) under a repurchase of Equity Securities and corresponding Special Voting Stock (if applicable) by a Company itself. 

7.3 Right of First Offer — Except for Transfers permitted pursuant to Section 7.2, and subject to compliance with the Exchange
Agreement, no Shareholder (other than an Investor as to its Series Preferred Stock, shares or stock exchangeable into such stock and any corresponding Special Voting Stock) shall Transfer any of his Equity Securities and corresponding Special Voting
Stock (if applicable) unless that Shareholder (the “Offeror”) first offers (the “Offer”) the Companies and the Investors (the latter being the “Other Offerees” and any one of them an “Other
Offeree”) the prior right to purchase, receive or acquire such securities (the “Offered Securities”) on the following basis: 
  

	(a)	Notice of Offer — Each Offer shall be made by written notice (the “Sale Notice”) to the Companies and the Other Offerees specifying: 

 

	 	(i)	the total number and class of the Offered Securities; 

  

	 	(ii)	the price at which the Shareholder is prepared to sell the Offered Securities; 

  

	 	(iii)	any other terms and conditions applicable to the offer not set out in this Section 7.3; and 

  

	 	(iv)	whether or not the Offeror has received a third party offer to purchase any of the Offered Securities (in which case the third party offer shall be attached to the notice); 

 

	(b)	Companies’ First Right - The Companies shall have the first right to accept the Offer and purchase all or a portion of the Offered Securities from the Offeror. The Companies shall have 14 days (the
“Companies Acceptance Period”) after receipt of the Sale Notice within which to give to the Offeror written notice (the “Companies Notice”) that they accept the Offer and agree to purchase all or a portion of the
Offered Securities (in a proportion agreed to by the Companies) and deliver a copy of the Companies Notice to each of the Other Offerees; 

  

	(c)	Shareholders’ Second Right — If upon the expiry of the Companies Acceptance Period the Companies have not delivered a Companies Notice or have delivered a Companies Notice which provides for the
purchase of only a portion of the Offered Securities, then the Offeror shall immediately notify (the “Second Right Notice”) each of the Other Offerees in writing and the Other Offerees shall have the right to purchase the remaining
Offered Securities on the following basis: 

  

	 	(i)	Pro Rata Portions — the Second Right Notice shall specify the number of Offered Securities remaining and state that each of the Other Offerees is entitled to purchase up to that number of the remaining
Offered Securities determined by the following formula as to Equity Securities that are included as Offered Securities: 

  
 23 

									
	Number of such remaining Equity Securities which a particular Other Offeree may purchase	  	=	  	 Number of Common Shares held by the
Other Offeree on a Fully Converted Basis immediately prior to the Second Offer
	  	x	  	Number of such remaining Equity Securities
	  	  	Number of Common Shares held by all Other Offerees on a Fully Converted Basis immediately prior to the Second Offer	  	  

  

	 	(ii)	Special Voting Stock — If applicable, each Other Offeree shall be required to purchase the corresponding number of shares of Special Voting Stock associated with any Equity Securities which it purchases
pursuant hereto; 

  

	 	(iii)	Acceptance — each of the Other Offerees shall have 14 days after receipt of the Second Right Notice (the “Second Acceptance Period”) within which to give to the Offeror written notice that
it accepts the Offer and specifying the number of Offered Securities up to the pro rata number determined above it wishes to purchase. The Other Offeree may also specify in such notice an additional number of the remaining Offered Securities
(“Specified Additional Securities”) the Other Offeree is prepared to purchase if any of the Other Offerees fails to fully accept their offered portion of the Offered Securities. If all the Other Offerees notify the Offeror in
writing that they accept or decline the Offer before the end of the Second Acceptance Period, then the Second Acceptance Period shall be deemed to have ended on the date the last such notice is received by the Offeror; 

 

	 	(iv)	Remaining Securities — in the event that some Other Offerees do not fully accept their offered portion of the Offered Securities within the Second Acceptance Period, the unaccepted remaining portion of the
Offered Securities (the “Remaining Securities”) shall be divided, within three days of the end of the Second Acceptance Period, among such of the Other Offerees as have in their notice of acceptance of the Offer indicated a
preparedness to purchase Specified Additional Securities (collectively the “Second Tier Offerees” and individually a “Second Tier Offeree”) as follows: 

 

	 	(A)	in such manner as may be agreed among the Second Tier Offerees; 

  

	 	(B)	failing such agreement, the Remaining Securities shall be divided pro rata among the Second Tier Offerees in accordance with their respective holdings of Common Shares on a Fully Converted Basis in successive rounds if
necessary to fully divide such Remaining Securities, provided that no Second Tier Offeree shall be required to accept more than his Specified Additional Securities; 

(the process provided for in this clause (iv) is referred to as the “Last Step”); 

 

	(d)	Closing — The closing of the purchase of the Offered Securities by the Companies and the Other Offerees hereunder shall take place at the principal office of the Canadian Company on the later of the closing
date specified in the Offer and ten days after expiry of either the Companies Acceptance Period or the Second Acceptance Period, as applicable; 

  

	(e)	Sale to Third Party — If any of the Offered Securities remain unaccepted after completion of the Last Step, then the Offeror shall have the option to reject all acceptances given by the Companies and the
Other Offerees hereunder and (subject to Section 7.4) Transfer all, but not less than all, of the Offered Securities to a third party provided that: 

  
 24 

	 	(i)	such Transfer is effected at a price which is not less than the price and on terms and conditions no more favourable (from a purchaser’s perspective) than those set forth in the Sale Notice hereunder;

  

	 	(ii)	the Offeror shall not Transfer any of the Offered Securities to a third party who is a competitor of the Companies unless the Sale Notice originally delivered by the Offeror attached a detailed written offer from the
competitor for the Offered Securities; and 

  

	 	(iii)	such Transfer is completed within a 90 day period following the Last Step (after which period has expired the Offeror must again comply with this Article 7 before Transferring any of his Equity Securities and
corresponding Special Voting Stock to any Person). 

  

	(f)	Company Assistance — Each Company shall use reasonable commercial efforts to assist with the efficient operation and administration of the process provided for under this Section 7.3. 

 

	(g)	Mailed Notices — If a written notice is mailed by first class mail to the address for an Other Offeree shown on the applicable Company’s register of stockholders such notice will be deemed to have been
received by the Other Offeree 3 days thereafter. 

 7.4 Piggyback Rights —If a Shareholder (other than an Investor as to
its Series Preferred Stock, shares or stock exchangeable into such stock and any corresponding Special Voting Stock) or a trust, partnership or corporation Controlled by any such persons from time to time (any of whom is a “Key Person
Seller”) becomes entitled and intends to Transfer Offered Securities to a third party pursuant to Section 7.3(e) (the “Piggy Back Sale”), then each Investor that did not exercise its rights under Section 7.3(c)
(the “Other Holder(s)”) shall have the right (the “Piggyback Right”) to participate in any such Transfers on the following terms and conditions: 

 

	(a)	Intended Sale Notice — If the Key Person Seller intends to proceed with a Piggy Back Sale, the Key Person Seller shall immediately notify (the “Piggyback Sale Notice”) each Other Holder in
writing specifying: 

  

	 	(i)	the name, address and telephone number of the third party (the “Third Party”) intended to purchase the Offered Securities; 

 

	 	(ii)	the purchase price the Third Party is to pay the Key Person Seller for each class of Equity Securities and any corresponding Special Voting Stock to be purchased (the “Specified Prices”) and the other
terms and conditions of the intended sale; 

  

	 	(iii)	the number and class of Equity Securities and corresponding Special Voting Stock (if applicable) held by the Third Party and its Associates and Affiliates; and 

 

	 	(iv)	that each Other Holder has the Piggyback Right provided under this Section 7.4 in respect of the Piggyback Sale. 

  

	(b)	Securities which can be Piggybacked — Subject to the provisions of Section 7.7, each Other Holder shall be entitled to sell to the Third Party, in conjunction (if applicable) with the closing of the
Third Party’s purchase of Equity Securities and (if applicable) corresponding Special Voting Stock from the Key Person Seller, a pro rata portion of its Equity Securities and any related Special Voting Stock (or such lesser number of Equity
Securities and corresponding Special Voting Stock (if applicable) as each Other Holder may determine) determined by the following formula: 

  
 25 

									
	 Number of such
 Equity
Securities
 an Other Holder
 may sell
	  	 = 
  
	  	 Number of Common Shares on a Fully Converted Basis to be sold to the Third Party by the Key
Person Seller
	  	 x 
  
	  	 Common Shares held
 by the Other
Holder
 on a Fully Converted
 Basis

	  	  	Total number of Common Shares on a Fully Converted Basis held by the Key Person Seller and all Other Holders exercising their Piggyback Rights pursuant to this Section 7.4	  	  

  

	(c)	Special Voting Stock — If applicable, each Third Party shall be required to purchase the corresponding number of shares of Special Voting Stock associated with any Equity Securities which it purchases
pursuant hereto; 

  

	(d)	Exercise Notice — Each Other Holder shall have 14 days after the receipt of the Piggyback Notice, to exercise its Piggyback Right by written notice to the Key Person Seller specifying the number and class of
Equity Securities and corresponding Special Voting Stock (if applicable) which each Other Holder elects to sell to the Third Party hereunder. 

  

	(e)	Piggyback Sale to Third Party — If an Other Holder exercises the Piggyback Right, the Key Person Seller may not complete the Transfer of the Offered Securities to the Third Party unless the Third Party also
purchases from the Other Holder all of the Equity Securities and, if applicable, corresponding Special Voting Stock (the “Piggyback Securities”) in respect of which the Piggyback Right was exercised at the same time and on the same
terms and conditions (subject however to the pricing adjustments and rules set forth in (f) below). 

  

	(f)	Pricing of Securities — The price that the Third Party must pay to an Other Holder for its Piggyback Securities shall be further adjusted or derived in accordance with the following rules: 

 

	 	(i)	if the Specified Prices are for Common Shares only, the price per share for any preferred shares of the applicable Company in respect of which the Piggyback Right was exercised shall be computed as if such shares were
fully converted into Common Shares in accordance with their terms and pursuant to the Exchange Rights; 

  

	 	(ii)	if the Specified Prices are for preferred shares of the applicable Company only, the price per share for any Common Shares in respect of which the Piggyback Right was exercised shall be computed on the basis of a
reverse conversion of the Common Shares into preferred shares (if there is more than one conversion rate applicable to different series of preferred shares outstanding, the reverse conversion shall be computed on a pro rata basis based upon the
ratio of the total number of Common Shares which the holders of each series of preferred shares may acquire to the total number of Common Shares which holders of all series of preferred shares may acquire); and 

 

	 	(iii)	if the Specified Prices do not include a price for a class of Equity Securities and corresponding Special Voting Stock (if applicable) which entitle the holder thereof to acquire another class of Equity Securities and
corresponding Special Voting Stock (if applicable), such class of Equity Securities and corresponding Special Voting Stock (if applicable) shall be priced as if such securities were fully exercised, converted or exchanged (as the case may) into the
other class of Equity Securities and corresponding Special Voting Stock (if applicable) (net of any amounts payable by the holder on such exercise, conversion or exchange). 

  
 26 

 If the Third Party will not purchase the Piggyback Securities from the Other Holders on the terms and conditions
provided for herein, then the proposed Transfer of Offered Securities from the Key Person Seller to the Third Party shall not be made. 
 7.5
Recognition of Transfers — Except as otherwise required by law, neither Company shall recognize any Transfers of Shares made in violation of this Agreement. 

7.6 Endorsement on Share Certificates — Any and all certificates representing Equity Securities and corresponding Special Voting Stock now
or hereafter owned by Shareholders during the term of this Agreement (whether such Equity Securities are issued initially or following a Transfer or otherwise) shall have endorsed thereon in bold type the following legend: 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE PROVISIONS OF A SHAREHOLDERS’ AGREEMENT DATED FOR REFERENCE
THE 8th DAY OF JUNE, 2007, AS AMENDED AND/OR RESTATED FROM TIME TO TIME, AND SUCH SECURITIES ARE NOT TRANSFERABLE ON THE BOOKS OF THE COMPANY EXCEPT IN ACCORDANCE AND COMPLIANCE WITH THE TERMS AND
CONDITIONS OF SUCH AGREEMENT. BY ACCEPTING ANY INTEREST IN SUCH SHARES THE PERSON ACCEPTING SUCH INTEREST SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF THAT SHAREHOLDERS’ AGREEMENT, INCLUDING CERTAIN RESTRICTIONS
ON TRANSFER AND OWNERSHIP SET FORTH THEREIN” 
 7.7 Waiver of Rights — Notwithstanding any other provision of this Article
7, any Investor may waive its rights with respect to any particular offer or right given under, or provision contained in, Article 7 by notice in writing to the relevant parties. 

7.8 Shareholder Transfer of Agreement Rights —The Transfer of Equity Securities and corresponding Special Voting Stock (if applicable) by a
Shareholder pursuant to the provisions of Article 7 may include the transfer of such Shareholders’ rights under this Agreement provided that the assignee first agrees in writing to be bound by this Agreement. 

7.9 Investors’ Assignment of Rights — Subject to compliance with the Exchange Agreement, each Investor shall be entitled to assign its
right to be offered and take up Equity Securities and corresponding Special Voting Stock (if applicable) under Sections 6.2 and 7.3 and/or its rights to Transfer Equity Securities under Section 7.4, in whole or in part, to any Person described
in Section 7.2(d). 
 7.10 Repayment of Indebtedness — Any Shareholder proposing to Transfer Equity Securities and corresponding
Special Voting Stock (if applicable) pursuant to the terms of this Agreement who at the time of the Transfer is indebted to the applicable Company in an amount recorded in the books of account of the applicable Company and verified by the auditors
of the applicable Company, shall repay such amount to the applicable Company immediately prior to the completion of the Transfer and, if such Shareholder fails to repay such amount, the Person acquiring the Equity Securities and corresponding
Special Voting Stock (if applicable) shall be entitled to repay all or any portion of the indebtedness and the purchase price of the Equity Securities and corresponding Special Voting Stock (if applicable) shall be reduced accordingly. 

7.11 Recognition of Transfers — A purported Transfer in violation of this Agreement will not be valid and no related voting rights may be
exercised and no purported exercise of any voting rights will be valid and no dividend or distribution will be paid or made. 

  
 27 

 ARTICLE 8 — PUBLIC OFFERING PROVISIONS 

8.1 Prior Rights Terminated — The Shareholders agree and acknowledge that they are not entitled to any registration rights (or other
similar rights) pursuant to the terms of this Agreement (or any predecessor agreement hereto) and that all registration rights granted to the individual Shareholders by the Companies, if any, shall be granted pursuant to that Amended and Restated
Qualification and Registration Rights Agreement made as of March 19, 2013 by and among certain parties to this Agreement (the “Registration Rights Agreement”). 

ARTICLE 9 — AMENDMENT AND TERMINATION 

9.1 Amendments — This Agreement may only be amended by an instrument in writing duly executed by each of the Companies and Shareholders
holding not less than 60% of the Common Shares that are subject to this Agreement on a Fully Converted Basis and any amendment so made shall be binding upon all of the parties to this Agreement; and provided that any amendment that uniquely and
adversely affects the rights, restrictions and obligations of holders of a series or class of Shares (the “Affected Class”) or any individual or group of Shareholders shall require the approval of the holders of a majority of the
Shares held by the holders included in the Affected Class or the approval of such individual or group of Shareholders, respectively. Notwithstanding the foregoing, an amendment which adversely affects rights, restrictions and obligations of any one
particular Shareholder and not all Shareholders generally, will not be binding on the said Shareholder without such Shareholder’s agreement to the amendment. For greater certainty, (a) Section 3.1(a)(ii) and this clause (a) of
this Section 9.1 cannot be amended without VW’s consent, (b) Section 3.1(a)(iii) and this clause (b) of this Section 9.1 cannot be amended without JJDC’s consent, (c) Section 3.1(a)(iv) and this clause
(c) of this Section 9.1 cannot be amended without PVI’s consent and (d) Section 3.1(a)(v) and this clause (d) of this Section 9.1 cannot be amended without prior Investor Approval. 

 

	9.2	Termination Events — Except as provided in Section 9.3, this Agreement shall terminate: 

  

	(a)	if the Shareholders holding not less than 60% of the Common Shares that are subject to this Agreement on a Fully Converted Basis agree in writing to terminate this Agreement; 

 

	(b)	if each of the Companies is dissolved, liquidated or formally wound-up; or 

  

	(c)	upon a Qualified IPO. 

 9.3 Surviving Obligations — The termination of this Agreement shall
not affect the right of any party to whom money is owed hereunder at the time of termination to receive that money according to the provisions hereof or affect any other rights or obligations which arose hereunder in respect of matters occurring
prior to or concurrent with such termination. 
 ARTICLE 10 — GENERAL PROVISIONS 

10.1 No Partnership — Nothing in this Agreement or in the relationship of the parties hereto shall be construed as in any sense creating a
partnership among or between the parties or as giving to any party any of the rights or subjecting any party to any of the creditors of the other party. 
  

	10.2	Time of the Essence — Time shall be of the essence of this Agreement. 

 10.3 Further
Acts — Each of the parties to this Agreement shall at the request of any other party, and at the expense of the Companies, execute and deliver any further documents and do all acts and things as that party may reasonably require in
order to carry out the true intent and meaning of this Agreement. 

  
 28 

 10.4 Parties of Interest — This Agreement and the rights of each party hereunder shall enure
to the benefit of and be binding upon the parties hereto, their permitted assigns and their personal representatives, administrators, heirs and successors. 

10.5 Resignations — If a Shareholder ceases to be a Shareholder, and is not owed any money by the Companies, it shall cause its nominees to
resign from the Board of the Companies (except if the nominee also represents a continuing Shareholder). 
 10.6 Share Reorganizations —
The provisions of this Agreement relating to Equity Securities shall also apply, with the necessary changes, to the following: 
  

	(a)	any shares or securities into which such Equity Securities may be converted, changed, reclassified, redivided, redesignated, redeemed, subdivided or consolidated; 

 

	(b)	any shares or securities that are received by the stockholders of the Companies as a stock dividend or distribution payable in Shares or securities of each of the Companies; and 

 

	(c)	any shares or securities of a Company or of any successor or continuing corporation to such Company that may be received by the stockholders of the Companies on a reorganization, amalgamation, consolidation or merger or
otherwise. 

 10.7 Governing Law — This Agreement is a contract made under and shall be governed by and construed in
accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein. Any action, suit or proceeding arising out of or relating to this Agreement shall be brought in the courts of the Province of British Columbia,
and each of the Parties hereby irrevocably submits to the jurisdiction of such courts. 
 10.8 Entire Agreement — This Agreement as
amended and restated as of March 19, 2013 constitutes the entire agreement between the parties to this Agreement with respect to the subject matter hereof and supersedes all prior negotiations, proposals and agreements, whether oral or written,
with respect to the subject matter of this Agreement. The parties hereto hereby terminate all other shareholders’ agreements between or among or between any of them which govern the voting, holding or sale of securities or the management of the
affairs of the Companies including, without limitation, the Original Shareholders’ Agreement. The parties represent that they are not aware of any outstanding breaches of such other agreements now being terminated.  

10.9 Notices — All notices, demands and payments under this Agreement must be in writing and may be delivered personally or by facsimile
transmission to the party for whom it is intended, addressed as follows: 
  

	(a)	to the Companies, at Suite 430, 5600 Parkwood Way, Richmond, BC V6V 2M2; 

  

	(b)	VW, Advantage, BBI, JJDC, PVI and Augment at the addresses set forth in Schedule A as applicable; 

  

	(c)	to any of the Founders, care of the Companies at the address given above; and 

  

	(d)	for any other Person who becomes a party hereto who is not currently an Investor, at the address listed on any document pursuant to which such Person becomes party hereto; 

or such other addresses as may from time to time be notified in writing by the parties. All notices shall be deemed to have been given and received on the
next Business Day following the date of transmission or delivery, as the case may be. 

  
 29 

 10.10 Waiver — Failure by any party hereto to insist in any one or more instances upon the
strict performance of any one of the covenants contained herein shall not be construed as a waiver or relinquishment of such covenant. No waiver by any party hereto of any such covenant shall be deemed to have been made unless expressed in writing
and signed by the waiving party. 
 10.11 Severability — The unlawfulness or invalidity or unenforceability of any provision in this
Agreement or of any covenant herein contained on the part of any party shall not affect the validity or enforceability of any other provision or covenant hereof or herein contained and the parties hereby undertake to renegotiate in good faith, with
a view to concluding arrangements as nearly as possible the same as those herein contained. 
 10.12 Assignment — Except as provided in
Sections 7.8 and 7.9, no party shall be entitled to assign his rights under this Agreement to any Person without the prior written consent of the other parties; provided that such consent shall not be unreasonably withheld or delayed. 

10.13 Independent Legal Advice — Each of the parties to this Agreement acknowledge and agree that McCarthy Tétrault LLP and Cooley
LLP have acted as counsel only to the Companies, and that McCarthy Tétrault LLP and Cooley LLP are not protecting the rights and interests of any other party to this Agreement. The other parties to this Agreement acknowledge and agree that
the Companies, McCarthy Tétrault LLP and Cooley LLP have given them the opportunity to seek, and have recommended that such parties obtain, independent legal advice with respect to the subject matter of this Agreement and the other
transaction documents and, further, each of the other parties hereby represent and warrant to the Companies, McCarthy Tétrault LLP and Cooley LLP that such party has sought independent legal advice or waives such advice. 

 

	10.14 	Counterparts 

  

	(a)	This Agreement may be executed in several counterparts (including by fax), each of which when so executed shall be deemed to be an original and shall have the same force and effect as an original but such counterparts
together shall constitute but one and the same instrument. 

  

	(b)	The rights and obligations of the parties hereto are several, not joint and several. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 30 

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

 

							
	AQUINOX PHARMACEUTICALS INC.	  	AQUINOX PHARMACEUTICALS (USA) INC.
				
	Per:	  	 /s/ David Main
	  	Per:	  	 /s/ David Main

		  	(Authorized Signatory)	  		  	(Authorized Signatory)
		
	VENTURES WEST 8 LIMITED	  	B.C. ADVANTAGE FUNDS (VCC) LTD.
	PARTNERSHIP, by its General Partner,	  		  	
	Ventures West 8 Management Ltd.	  		  	
				
	Per:	  	 /s/ Illegible
	  	Per:	  	 /s/ Illegible

		  	(Authorized Signatory)	  		  	(Authorized Signatory)
				
	Per:	  	 /s/ Illegible
	  		  	
		  	(Authorized Signatory)	  		  	
		
	14159, L.P.	  	667, L.P.
	By:	  	Baker Bros. Advisors, LLC, management	  	By:	  	Baker Bros. Advisors, LLC, management
		  	company and investment adviser to 14159,	  		  	company and investment adviser to 667, L.P.,
		  	L.P., pursuant to authority granted to it by	  		  	pursuant to authority granted to it by Baker
		  	14159 Capital, L.P., general partner to 14159,	  		  	Biotech Capital, L.P., general partner to 667,
		  	L.P., and not as the general partner	  		  	L.P., and not as the general partner
				
	By:	  	 /s/ Scott Lessing
	  	By:	  	 /s/ Scott Lessing

		  	Scott Lessing	  		  	Scott Lessing
		  	President	  		  	President
		
	BAKER BROS. INVESTMENTS II, L.P.	  	BAKER BROTHERS LIFE SCIENCES, L.P.
	By:	  	Baker Bros. Advisors, LLC, management	  	By:	  	Baker Bros. Advisors, LLC, management
		  	company and investment adviser to Baker	  		  	company and investment adviser to Baker
		  	Bros. Investments II, L.P., pursuant to	  		  	Brothers Life Sciences, L.P., pursuant to
		  	authority granted to it by Baker Bros. Capital,	  		  	authority granted to it by Baker Brothers Life
		  	L.P., general partner to Baker Bros.	  		  	Sciences Capital L.P., general partner to
		  	Investments II, L.P., and not as the general	  		  	Baker Brothers Life Sciences, L.P., and not
		  	partner	  		  	as the general partner
				
	By:	  	 /s/ Scott Lessing
	  	By:	  	 /s/ Scott Lessing

		  	Scott Lessing	  		  	Scott Lessing
		  	President	  		  	President

  
 31 

							
	JOHNSON & JOHNSON	  	PFIZER INC.
	DEVELOPMENT CORPORATION	  		  	
				
	Per:	  	 /s/ Asish K. Xavier
	  	Per:	  	 /s/ Barbara Dalton

		  	Asish K. Xavier	  		  	(Authorized Signatory)
		  	Vice President, Venture Investments	  		  	

  

			
	AUGMENT INVESTMENTS LTD.
		
	Per:	 	 /s/ Egor Rulkov

		 	Egor Rulkov
		 	Attorney in fact by Power of Attorney

  

					
	 SIGNED AND DELIVERED by Raymond J. Andersen in the presence of:

 
 Signature

 
  

Print Name
  

 
 Address

 
  

Occupation
	  	)
)
)
)
)
)
)
)
)
)
)
)
)	  	  
 RAYMOND J.
ANDERSEN

  

					
	 SIGNED AND DELIVERED by Gerald Krystal in the presence of:

 
 Signature

 
  

Print Name
  

 
 Address

 
  

Occupation
	  	)
)
)
)
)
)
)
)
)
)
)
)
)	  	  
 GERALD
KRYSTAL

  
 32 

					
	 SIGNED AND DELIVERED by Gerald Krystal and Jacqueline Lea Krystal as trustees of The Krystal Family Trust in the presence of:

 
 Signature

 
  

Print Name
  

 
 Address

 
  

Occupation
	  	)
)
)
)
)
)
)
)
)
)
)
)
)	  	  
 GERALD KRYSTAL AND JACQUELINE
LEA KRYSTAL AS TRUSTEES OF THE KRYSTAL FAMILY TRUST

  

					
	 SIGNED AND DELIVERED by Alice Low Fung Mui in the presence of:

 
 Signature

 
  

Print Name
  

 
 Address

 
  

Occupation
	  	)
)
)
)
)
)
)
)
)
)
)
)
)	  	  
 ALICE LOW FUNG
MUI

  

					
	 SIGNED AND DELIVERED by Christopher John Ong in the presence of:
  

 
 Signature

 
  

Print Name
  

 
 Address

 
  

Occupation
	  	)
)
)
)
)
)
)
)
)
)
)
)
)	  	  
 CHRISTOPHER JOHN
ONG

  
 33 

					
	 SIGNED AND DELIVERED by David Main in the presence of:

 
 Signature

 
  

Print Name
  

 
 Address

 
  

Occupation
	  	)
)
)
)
)
)
)
)
)
)
)
)
)	  	  
 DAVID MAIN

  

					
	 SIGNED AND DELIVERED by Christopher John Ong as trustee of the CJ Ong Family Trust in the presence of:

 
 Signature

 
  

Print Name
  

 
 Address

 
  

Occupation
	  	)
)
)
)
)
)
)
)
)
)
)
)
)	  	  
 CHRISTOPHER JOHN ONG AS
TRUSTEE OF THE CJ ONG FAMILY TRUST

  
 34 

 SCHEDULE A 

LIST OF SHAREHOLDERS PARTY TO THIS AGREEMENT 
  

			
	 Shareholder Name
	  	 Number & Class of Shares Held

	Raymond J. Andersen	  	 755,750 Common Exchangeable Shares
 755,750
Canadian Special Voting Shares
 755,750 shares of Common Special Voting Stock

		
	Gerald Krystal	  	 194,750 Common Exchangeable Shares
 194,750
Canadian Special Voting Shares
 194,750 shares of Common Special Voting Stock

		
	Gerald Krystal and Jacqueline Lea Krystal as trustees of the Krystal Family Trust	  	 562,500 Common Exchangeable Shares
 562,500
Canadian Special Voting Shares
 562,500 shares of Common Special Voting Stock

		
	Alice Low Fung Mui	  	 813,750 Common Exchangeable Shares
 813,750
Canadian Special Voting Shares
 813,750 shares of Common Special Voting Stock

		
	Christopher John Ong	  	 506,338 Common Exchangeable Shares
 506,338
Canadian Special Voting Shares
 506,338 shares of Common Special Voting Stock

		
	Christopher John Ong as trustee of the CJ Ong Family Trust	  	 300,688 Common Exchangeable Shares
 300,688
Canadian Special Voting Shares
 300,688 shares of Common Special Voting Stock

		
	David Main	  	 1,555,000 Common Exchangeable Shares
 1,555,000
Canadian Special Voting Shares
 1,555,000 shares of Common Special Voting Stock

		
	Johnson & Johnson Development Corporation	  	 4,909,090 shares of Series A-1 Preferred Stock

3,272,727 shares of Series A-2 Preferred Stock
 5,642,590 shares
of Series B-1 Preferred Stock
 5,616,622 shares of Series B-2 Preferred Stock

7,287,227 shares of Series C Preferred Stock
 26,728,256 Canadian
Special Voting Shares

  
 A-1 

			
	 Shareholder Name
	  	 Number & Class of Shares Held

	Baker Bros. Investments II, L.P.	  	 5,454 shares of Series A-1 Preferred Stock

3,636 shares of Series A-2 Preferred Stock
 6,269 shares of Series
B-1 Preferred Stock
 6,239 shares of Series B-2 Preferred Stock

7,273 shares of Series C Preferred Stock
 28,871 Canadian Special
Voting Shares

		
	667, L.P.	  	 730,909 shares of Series A-1 Preferred Stock

487,272 shares of Series A-2 Preferred Stock
 840,119 shares of
Series B-1 Preferred Stock
 836,251 shares of Series B-2 Preferred Stock

974,544 shares of Series C Preferred Stock
 3,869,095 Canadian
Special Voting Shares

		
	14159, L.P.	  	 62,727 shares of Series A-1 Preferred Stock

41,818 shares of Series A-2 Preferred Stock
 72,099 shares of
Series B-1 Preferred Stock
 71,767 shares of Series B-2 Preferred Stock

83,636 shares of Series C Preferred Stock
 332,047 Canadian
Special Voting Shares

		
	Baker Brothers Life Sciences, L.P.	  	 1,928,181 shares of Series A-1 Preferred Stock

1,285,454 shares of Series A-2 Preferred Stock
 2,216,284 shares
of Series B-1 Preferred Stock
 2,206,086 shares of Series B-2 Preferred Stock

2,570,904 shares of Series C Preferred Stock
 10,206,909 Canadian
Special Voting Shares

		
	Ventures West 8 Limited Partnership	  	 70,000 Common Exchangeable Shares
 5,454,545
Series A-1 Exchangeable Shares
 3,636,363 Series A-2 Exchangeable Shares

6,269,545 Series B-1 Exchangeable Shares
 6,240,691 Series B-2
Exchangeable Shares
 7,272,701 Class C Exchangeable Shares

28,943,845 Canadian Special Voting Shares
 5,454,545 shares of
Series A-1 Special Voting Stock
 3,636,363 shares of Series A-2 Special Voting Stock

6,269,545 shares of Series B-1 Special Voting Stock
 6,240,691
shares of Series B-2 Special Voting Stock
 7,272,701 shares of Series C Special Voting Stock

70,000 shares of Common Special Voting Stock

  
 A-2 

			
	 Shareholder Name
	  	 Number & Class of Shares Held

	B.C. Advantage Funds (VCC) Ltd.	  	 3,667,777 Series A-1 Exchangeable Shares

1,818,181 Series A-2 Exchangeable Shares
 1,880,863 Series B-1
Exchangeable Shares
 846,409 Series B-2 Exchangeable Shares

8,213,230 Canadian Special Voting Shares
 3,667,777 shares of
Series A-1 Special Voting Stock
 1,818,181 shares of Series A-2 Special Voting Stock

1,880,863 shares of Series B-1 Special Voting Stock
 846,409
shares of Series B-2 Special Voting Stock

		
	Pfizer Inc.	  	 6,420,879 shares of Series B-1 Preferred Stock

6,281,822 shares of Series B-2 Preferred Stock
 5,440,023 shares
of Series C Preferred Stock
 18,142,724 Canadian Special Voting Shares

		
	Augment Investments Ltd.	  	 9,090,893 shares of Series C Preferred Stock

9,090,893 Canadian Special Voting Shares

 Total Shares held by the Shareholders (as of the date hereof) 

 

					
	 Total Common Exchangeable Shares
	  	 	4,758,776	  
	 Total Series A-1 Exchangeable Shares
	  	 	9,122,322	  
	 Total Series A-2 Exchangeable Shares
	  	 	5,454,544	  
	 Total Series B-1 Exchangeable Shares
	  	 	8,150,408	  
	 Total Series B-2 Exchangeable Shares
	  	 	7,087,100	  
	 Total Class C Exchangeable Shares
	  	 	7,272,701	  
	 Total Canadian Special Voting Shares
	  	 	110,244,646	  
	 Total Series A-1 Preferred Stock
	  	 	7,636,361	  
	 Total Series A-2 Preferred Stock
	  	 	5,090,917	  
	 Total Series B-1 Preferred Stock
	  	 	15,198,240	  
	 Total Series B-2 Preferred Stock
	  	 	15,018,787	  
	 Total Series C Preferred Stock
	  	 	25,454,500	  
	 Total Series A-1 Special Voting Stock
	  	 	9,122,322	  
	 Total Series A-2 Special Voting Stock
	  	 	5,454,544	  
	 Total Series B-1 Special Voting Stock
	  	 	8,150,408	  
	 Total Series B-2 Special Voting Stock
	  	 	7,087,100	  
	 Total Series C Special Voting Stock
	  	 	7,272,701	  
	 Total Common Special Voting Stock
	  	 	4,758,776	  

  
 A-3 

 Shareholder Addresses 

The addresses of those Shareholders not otherwise specified in the Agreement are set out in the table below: 

 

			
	 Shareholder Name
	  	 Address

	Johnson & Johnson Development Corporation	  	410 George Street, New Brunswick, NJ 08901
		
	Baker Bros. Investments II, L.P.	  	667 Madison Avenue 17th Floor, New York, NY 10021
		
	667, L.P.	  	667 Madison Avenue 17th Floor, New York, NY 10021
		
	14159, L.P.	  	667 Madison Avenue 17th Floor, New York, NY 10021
		
	Baker Brothers Life Sciences, L.P.	  	667 Madison Avenue 17th Floor, New York, NY 10021
		
	Ventures West 8 Limited Partnership	  	Suite 2500, 1066 West Hastings Street, Vancouver BC V6E 3X1, Fax: 604-687-2145
		
	B.C. Advantage Funds (VCC) Ltd.	  	Suite 1280, 885 W. Georgia St., Vancouver BC, V6C 3E8, Fax: (604) 688-6166
		
	Pfizer Inc.	  	253 East 42nd Street, New York, NY 10017, Attn: Elaine V. Jones
		
	Augment Investments Ltd.	  	15 Dimokritou, PANARETOS ELIANA COMPLEX, office/flat 104, 4041 Potamos Germasogeias, Limassol, Cyprus

  
 A-4 

 SCHEDULE B 

NON-DISCLOSURE AGREEMENT 
 THIS
AGREEMENT is made on                                 , 20¿ 
 BETWEEN: 
  

					
		 	 •, of
                                    

 
 (the “Corporation”)
	 	
			
	 AND:
  
	 	  
  
  

(the “Signor”)
	 	

 WHEREAS: 
  

	A.	The Signor may come into possession of certain confidential information of the Corporation which is not otherwise known or available to the public; and 

 

	B.	The Corporation has requested the Signor to provide the Corporation with the confidentiality and non-disclosure covenants set forth in this Agreement; 

NOW THEREFORE this Agreement witnesses that in consideration of the Company disclosing Confidential Information (as defined below) to the Signor and of the
premises, covenants and agreements contained in this Agreement, the parties agree as follows: 
  

	1.	The Signor agrees that all knowledge and information not already in the public domain or known to the Signor independently of the Corporation which the Signor may acquire from the Corporation or through attendance at a
Corporation Board or Shareholders’ meeting or through a visit to the Corporation’s premises respecting the business, work, inventions, designs, methods, improvements, trade secrets, know-how and all other confidential or proprietary
matters of the Corporation (hereinafter referred to as the “Confidential Information”) shall for all purposes be regarded by the Signor as strictly confidential. 

 

	2.	The Signor agrees to use its best efforts to keep all Confidential Information in strict confidence and not to reveal, or induce or permit others to reveal, any of the Confidential Information to any person, firm,
corporation, partnership, entity or other party, for any use whatsoever (except if the Signor is a representative of an investor in the Corporation (an “Investor”), those of the Signor’s or the Investor’s employees,
directors, officers, advisors, counsel or agents with a definable need to know in connection with the Signor’s observer rights and who are subject to confidentiality obligations in respect of such Confidential Information that are at least as
restrictive as the terms hereof). The Signor further agrees that it shall only use the Confidential Information for the purposes for which it was disclosed to the Signor. 

 

	3.	The Corporation may exclude the Signor from access to any Confidential Information or meeting or portion thereof if the Corporation believes upon advice of counsel to the Corporation that such exclusion is reasonably
necessary to preserve attorney-client privilege. 

  
 B-1 

	4.	Nothing contained in this Agreement shall prevent the Signor from using or disclosing any portion of the Confidential Information which: 

 

	 	(a)	was in-the possession of the Signor prior to its receipt thereof from the Corporation; 

  

	 	(b)	was or does come into the public domain other than as a result of a breach of this Agreement; 

  

	 	(c)	is required to be disclosed by law or by any governmental or regulatory authority having jurisdiction provided that prior to disclosing any Confidential Information pursuant to this paragraph (c) the Signor
delivers notice of such requirement to the Corporation at the address set out above in a timely manner, so that the Corporation has the opportunity to contest the potential disclosure; or 

 

	 	(d)	is disclosed with the prior written permission of the Corporation. 

  

	5.	Upon the Signor ceasing to have a relationship with the Corporation then the Signor shall, at the request of the Corporation, return or destroy all copies of Confidential Information in the possession of the Signor.

  

	6.	This Agreement shall be governed and construed in accordance with the laws in force in the Province of British Columbia. The courts of British Columbia shall have non-exclusive jurisdiction to hear any matters arising
in connection with this Agreement. 

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

 

					
	  
 (Signature of Corporation
Representative)
 Print Name:
	 		  	  
 (Signature of Signor or
Representative)
 Print Name:

  
 B-2 

 SCHEDULE C 

INDEMNITY AGREEMENTS 

  
 C-1

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